The Commodity Futures Trading Commission has requested public comment on a Chicago Mercantile Exchange Inc. (CME) petition for exemptive relief on behalf of the China Foreign Exchange Trade System and National Interbank Funding Center (CFETS). CFETS is an affiliate of the People’s Bank of China and operates an electronic system for trading in the inter-bank foreign exchange market in China. CME and CFETS have entered into an agreement under which CFETS will become a “super-clearing” member of CME authorized to clear foreign currency and interest rate futures transactions on behalf of CFETS members and their customers domiciled in China. As a clearing member of CME, CFETS would meet the definition of a futures commission merchant (FCM) under the Commodity Exchange Act and CFTC interpretative guidance. Under the CME’s petition, CFETS (and its members) would be exempted from FCM registration but would be required to meet certain alternative financial, reporting and record keeping requirements.

http://www.cftc.gov/stellent/groups/public/@lrfederalregister/documents/file/e7-16641a.pdf