The Commodity Futures Trading Commission’s Market Participants Division and Division of Market Oversight issued an interpretative letter on how certain cross-border definitions apply to a proprietary trading firm organized in a foreign jurisdiction. Based on the facts presented, the letter confirms the firm is treated as outside the United States for the specified definitions. The interpretation concludes the firm is not a “person located in the United States” for the “foreign futures or foreign options customer” definition in Commission regulation 30.1(c), is not a “participant located in the United States” for Commission regulation 48.2(c), is a “foreign located person” for 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 letter was issued in response to a request from the proprietary trading firm.
Commodity Futures Trading Commission 2025-05-21
Commodity Futures Trading Commission interprets cross-border definitions to treat a foreign proprietary trading firm as a non-U.S. person
The Commodity Futures Trading Commission's Market Participants Division and Division of Market Oversight issued an interpretative letter clarifying cross-border definitions for a proprietary trading firm organized abroad. The firm is confirmed as outside the U.S. for specific regulatory definitions, including not being a "U.S. person" under Commission regulation 23.23(a) and related guidance. This clarification followed a request from the firm.