Market regulation · 02/04/2007

Exemption From Registration for Certain Foreign Persons

The Commodity Futures Trading Commission ("Commission") is proposing to amend Commission Regulation 3.10 regarding the registration of firms located outside the U.S. that are engaged in commodity interest activities with respect to trading on U.S. designated contract markets ("DCMs") and U.S. derivative transaction execution facilities ("DTEFs").\1\ The amended regulation would codify past actions of the Commission or its staff permitting certain foreign firms that limit their customers to foreign customers to submit U.S. DCM and DTEF business on behalf of those customers for clearing on an omnibus basis through a registered futures commission merchant ("FCM"), without the foreign firm having to register as an FCM pursuant to section 4d of the Commodity Exchange Act ("Act"). ---------------------------------------------------------------------------