The Commodity Futures Trading Commission amended a rule (30.10; click here to access) to enumerate specific circumstances under which it might terminate a special exemptive order permitting US persons to access directly foreign brokers subject to comparable regulatory supervision. Principal among the reasons is that a non-US regulator or self-regulatory organization failed to grant non-US persons the same type of access to US markets as Rule 30.10 contemplates granting to US persons accessing non-US markets.
As amended, the CFTC might terminate an exemptive order granted to a foreign regulator or regulatory organization if:
- there was a material change in facts and circumstances undercutting the standards pursuant to which relief was initially granted (e.g., a lack of deference to the CFTC’s oversight of US contract markets in authorizing access by non-US persons);
- the “continued effectiveness” of any exemptive order became contrary to the public interest; or
- there were changes to the arrangements for sharing of information with the CFTC that made the exemptive order nonviable.
In addition to permitting the affected party 30 business days to challenge any proposed revocation of an exemptive order, the CFTC authorized “any other person” to potentially respond to any proposed exemptive order cancellation.