The Commodity Futures Trading Commission’s Division of Market Oversight issued a no-action letter stating it will not recommend enforcement action against Korea Exchange for offering or selling KOSPI 200 Futures Contracts and Mini KOSPI 200 Futures Contracts to persons located in the United States while the Commission reviews Korea Exchange’s forthcoming request for certification of the contracts under CFTC Regulation 30.13. The no-action position will be effective on 6 February 2025. The relief follows changes in the KOSPI 200’s index classification and resulting jurisdiction: the index became a narrow-based security index in February 2024, placing related futures under joint CFTC and Securities and Exchange Commission jurisdiction, and is set to become broad-based again on 6 February 2025, which would place the contracts under exclusive CFTC jurisdiction. Similar no-action letters were issued when the KOSPI 200 became broad-based in 2021 and 2022.
Commodity Futures Trading Commission 2025-02-04
Commodity Futures Trading Commission issues no-action relief for Korea Exchange KOSPI 200 futures sales to US persons effective 6 February 2025
The Commodity Futures Trading Commission's Division of Market Oversight issued a no-action letter allowing Korea Exchange to offer KOSPI 200 Futures Contracts to U.S. persons while reviewing a certification request under CFTC Regulation 30.13. This follows changes in the KOSPI 200's classification, which will shift to exclusive CFTC jurisdiction on 6 February 2025. Similar no-action letters were issued in 2021 and 2022 when the index became broad-based.