CFTC Grants Substituted Compliance in Six Jurisdictions

The Commodity Futures Trading Commission (CFTC) has approved substituted compliance in six jurisdictions, a form of reciprocity allowing non-U.S. swap dealers or major swap participants (MSPs) to comply with local regulation in instances when they would otherwise fall within the scope of CFTC regulation.
By Jake Safane(2147484770)
The Commodity Futures Trading Commission (CFTC) has approved substituted compliance in six jurisdictions, a form of reciprocity allowing non-U.S. swap dealers or major swap participants (MSPs) to comply with local regulation in instances when they would otherwise fall within the scope of CFTC regulation.

The six jurisdictions are Australia, Canada, the EU, Hong Kong, Japan and Switzerland. “This approach builds on the Commission’s long-standing policy of recognizing comparable regulatory regimes based on international coordination and comity principles with respect to cross-border activities involving futures and options,” the CFTC says.

The CFTC added that it will consider substituted compliance in other jurisdictions as these foreign regions strengthen their regulation.

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