The Commodity Futures Trading Commission’s Division of Market Oversight issued an advisory on when non-U.S. trading venues must register as foreign boards of trade (FBOTs) to provide persons physically located in the United States with direct market access to their platforms. The advisory reaffirms that the FBOT registration framework applies across all asset classes, including traditional derivatives and digital asset markets. The release frames the advisory as a response to increased industry inquiries about when FBOT registration is required and the requirements and procedures for obtaining it. It also addresses recent confusion over whether certain non-U.S. exchanges should register as a designated contract market (DCM) or as an FBOT, following recent enforcement actions based on interpretations described as inconsistent with longstanding CFTC precedent and practice.
Commodity Futures Trading Commission 2025-08-28
Commodity Futures Trading Commission issues advisory reaffirming foreign board of trade registration framework for non-US exchanges offering direct U.S. market access
The Commodity Futures Trading Commission's Division of Market Oversight issued an advisory clarifying when non-U.S. trading venues must register as foreign boards of trade (FBOTs) to offer direct market access to U.S. persons. The advisory applies to all asset classes, including traditional derivatives and digital assets, and addresses industry confusion regarding FBOT versus designated contract market registration, following recent enforcement actions highlighting inconsistencies with previous CFTC interpretations.