The Commodity Futures Trading Commission issued a no-action letter on Friday stating that the Commission will be extending its overseas trading rules deadline, giving overseas traders more time to comply with the CFTC’s rules.
The CFTC and European regulators came to an agreement in February over how both regulators would handle overseas trading rules, where the CFTC agreed to allow US traders to use overseas trading platforms, as long as those platforms were following comparable rules to US platforms.
It was expected that European traders would be prepared for this rule to go into effect by Marc 24th. However, after requests from European trading firms, the CFTC will now be extending the deadline for compliance to May 14th.
On top of extending the deadline to comply with overseas trade rules, the CFTC will also be changing the conditions firms will have to meet in order to be in compliance, which the Commission will be detailing in a statement they will release sometime next week.
The CFTC seems to be backpedaling quite a bit from its previous stance on overseas trade rules. Initially, the Commission was planning to have a rather wide sphere of influence over trades happening between foreign firms and US traders in overseas offices.
However, after seeing significant backlash over this stance, even being sued by US banks and trading organizations for overstepping it’s boundaries, it seems the CFTC is now much more willing to work with overseas regulators.
