London Stock Exchange plc today announces that it has received approval from the US Commodity Futures Trading Commission (CFTC) as a Registered Foreign Board of Trade (FBOT).
The approval allows London Stock Exchange Derivatives Market (LSEDM) to provide US based participants with direct access to its electronic order book in the FTSE 100 UK Index Futures contract, the FTSE UK Large Cap Super Liquid Index Futures contract and the BIST 30 Index Futures contract. This follows previous certification from the CFTC that these products are in conformance with the requirements of section 2(a)(1)(C)(ii) of the Commodity Exchange Act and may therefore be offered or sold to persons in the U.S.1
Registered FBOT status is formal recognition, granted by the CFTC, that London Stock Exchange Derivatives Market is subject to comprehensive supervision and regulation, comparable to the US, by the Financial Conduct Authority in the UK. CFTC: http://www2.londonstockexchangegroup.com/e/6522/ssRoom-PressReleases-index-htm/3ks697/745371618
Nikhil Rathi, CEO of London Stock Exchange plc said:
“This is a very important milestone for London Stock Exchange Derivatives Market, allowing us to significantly increase our appeal and reach in the US. This registration will provide US based clients with more choice, allowing them to access directly a range of derivatives listed on London Stock Exchange Derivatives Market.”
London Stock Exchange Derivatives Market (LSEDM) develops products across emerging and developed markets. It offers Member Firms a range of UK and international equity derivatives products, including IOB Depositary Receipts, Turkish BIST 30 Index products and operates a linked order book for Norwegian derivatives with Oslo Børs. UK derivatives including Futures and Options on FTSE 100, FTSE UK Large Cap Super Liquid, Single Stocks as well as FTSE 100 weekly options are available to trade. Since September 2016, LSEDM Members can also trade CurveGlobal products in both short and long term Interest Rate Derivatives.