The Commodities Futures Trading Commission has proposed amendments to its rules that would codify the “foreign broker exemption” previously established in a series of releases and interpretations by the CFTC and its staff. The proposed rule amendments would exempt from futures commission merchant (FCM) registration any person whose customers are located outside the U.S., provided that person confines its commodity interest activities to areas outside of the U.S. and has all trades made on a U.S. exchange cleared through a registered FCM.

The comment period for the proposed amendments closes on May 2.