DCIO publishes an advisory on foreign security futures products

The CFTC’s Division of Clearing and Intermediary Oversight (DCIO) published an Advisory clarifying the extent to which certain sophisticated customers located in the U.S. may transact in foreign security futures products (FSFPs). The Advisory is intended to address questions raised by members of the public following the Securities and Exchange Commission’s publication of an order on June 30, 2009, which exempts certain sophisticated persons from provisions of the Securities Exchange Act of 1934 that prohibit the offer and sale of FSFPs to U.S. persons.

The document concludes that “any U.S. investor seeking to transact in FSFPs (and particularly ECPs that do not qualify as QIBs), and any firm seeking to intermediate such a transaction, should consult an attorney to determine whether such activities would be inconsistent with the federal securities laws.”

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