Boards of Trade Located Outside of the United States and the Requirement To Become a Designated Contract Market or Derivatives Transaction Execution Facility

Résumé

The Commodity Futures Trading Commission (Commission) is publishing this request for comment in advance of a public hearing scheduled for June 27, 2006.\1\ The purpose of the hearing is to solicit the views of the public on how to identify and address certain issues with respect to boards of trade established in foreign countries and located outside the U.S. (foreign board of trade or FBOT). Specifically, the Commission wishes to address the point at which an FBOT that makes its products available for trading in the U.S. by permitting direct access to its electronic trading system from the U.S. (direct access) is no longer "located outside the U.S." for purposes of section 4(a) of the Commodity Exchange Act (Act). If it is determined that the FBOT is not "located outside the U.S.," it becomes subject to section 4(a) and may be required to become a designated contract market (DCM) or derivatives transaction execution facility (DTEF). ---------------------------------------------------------------------------