Regulatory News & Links

No-Action Letter and CFTC Part 30.10 Rule Summarized

Summary of Impact of No-Action and Part 30.10 Rule

  Permitted to offer to US customer?
Foreign futures product US FCMs* Foreign FCMs**
Ag Commodities Permitted Not permitted unless Part 30 exemption granted
Metals Permitted Not permitted unless Part 30 exemption granted
Energy Permitted Not permitted unless Part 30 exemption granted
Broad-based indexes Not permitted unless no-action letter Not permitted unless Part 30 exemption granted
Note/Bond Not permitted unless SEC has exempted the country's debt instruments*** SEC exemption AND Part 30 exemption required.
Narrow-based indexes Not permitted under present rules Not permitted under present rules
single stock futures Not permitted under present rules Not permitted under present rules

*the table above describes U.S. regulations. Depending on regulations in the non-U.S. jurisdiction, it may not be feasible for a U.S. FCM to execute orders even if permitted under U.S. law.

**As an alternative to Part 30.10 relief, a foreign broker can register with the U.S. CFTC.

***Countries whose debt instruments have been exempted:
United Kingdom, Canada, Japan, Australia, France, New Zealand, Austria, Denmark, Finland, the Netherlands, Switzerland, Germany, Italy, Ireland, Spain, Mexico, Brazil, Argentina, Venezuela, Belgium, and Sweden.

See a summary of the no-action letter and Part 30.10 rules by the CFTC here

For a list of Asian Exchanges who have applied for Part 30.10 exemption go here

FIA Joins Coalition Urging President-Elect Obama to Continue China Dialogue

The FIA has joined with a coalition of U.S. financial services trade associations in urging President-Elect Barack Obama to continue the framework of regular communication with senior Chinese officials that has been established by the Bush administration. In a letter sent to Obama on Nov. 6, 2008, the coalition asked him to show his support for the continuation of this policy by sending a senior advisor to participate with Treasury Secretary Paulson at the fifth round of the Strategic Economic Dialogue on Dec. 4-5 in Beijing. The letter was sent by the Engage China coalition, which includes in addition to the FIA the American Bankers Association, American Council of Life Insurers, American Insurance Association, Bankers Association for Foreign Trade, Council of Insurance Agents and Brokers, Financial Services Forum, Financial Services Roundtable, Investment Company Institute and Securities Industry and Financial Markets Association.
To view the PDF version of the letter to President-Elect Obama click here

China Liberalizes Rules on Outbound Investment by Qualified Domestic Institutional Investors
On July 5, 2007, a new set of rules came into effect that for the first time allow PRC brokerage houses and fund management companies to use their clients' funds to invest in overseas fixed income, stocks, and financial derivatives such as futures and options. It is estimated that a good number of PRC securities and fund management firms will immediately meet the government-established eligibility requirements, and they will join already qualified PRC banks and insurers in offering these overseas financial investment products.

Alert provided by the law firm of K&L Gates.
To view the complete alert online, go to:

China Hot Topic: CFFEX issues draft rules governing trading and settlement on financial futures market
May 18, 2007
The China Financial Futures Exchange has issued drafts of 10 rules governing membership, trading and clearing/settlement on the exchange. This is an indication that the PRC government is moving closer to the launch of China’s first index-based futures product, CSI 300 stock index futures.

Alert provided by the law firm of Linklaters
To view the complete alert online, go to:

China Hot Topic: CSRC issues new rules on the administration of futures companies and futures exchanges
April 17, 2007
The China Securities Regulatory Commission issued revised rules on April 15 regarding the regulation of the futures market. The rules, which cover brokers as well as exchanges, pave the way for the formal launch of the financial futures market and provide for legal grounds for futures companies to engage in financial futures business. The rules also introduce a new form of organization for futures exchanges being a company limited by shares, in addition to the existing "membership system" under which the registered capital of a futures exchange is divided into equal units which are subscribed to by members of the exchange.

Alert provided by the law firm of Linklaters
To view the complete alert online, go to:

Current Regulatory News

Regulatory Agencies:

Australian Securities & Investments Commission (ASIC)

China Securities Regulatory Commission (CSRC)

Hong Kong
Securities and Futures Commission (SFC)

Forward Markets Commission (FMC)

Securities and Exchange Board of India (SEBI)

Financial Services Agency (FSA)

Ministry of Agriculture, Forestry and Fisheries (MAFF)

Ministry of Economy, Trade and Industry (METI)

Securities Commission (SC)

Monetary Authority of Singapore (MAS)

South Korea
Financial Supervisory Commission (FSC)

Financial Supervisory Commission (FSC)

United Arab Emirates
Dubai Financial Services Authority (DFSA)

Securities and Commodities Authority (SCA)