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The Commodity Futures Trading Commission’s Market Participants Division and Division of Market Oversight today issued an interpretative letter confirming the application of certain cross-border definitions to a proprietary trading firm organized in a foreign jurisdiction.
Specifically, based on the facts presented, the interpretative letter confirms that the proprietary trading firm:
- Is not a “person located in the United States” for purposes of the “foreign futures or foreign options customer” definition in Commission regulation 30.1(c);
- Is not a “participant located in the United States” for purposes of Commission regulation 48.2(c);
- Is a “foreign located person” for purposes of Commission regulation 3.10(c)(1)(ii); and
- Is not a “U.S. person” as defined by Commission regulation 23.23(a) and the Commission’s 2013 Interpretive Guidance and Policy Statement Regarding Compliance With Certain Swap Regulations.
The interpretation was issued in response to a request from the proprietary trading firm.
