CFTC Staff Issues Interpretation Regarding Certain Cross-Border Definitions

WASHINGTON, D.C. — The Commodity Futures Trading Commission’s Market Participants Division and Division of Market Oversight today issued an interpretative letter confirming the application of certain cross-border definitions to a proprietary trading firm organized in a foreign jurisdiction. 

Specifically, based on the facts presented, the interpretative letter confirms that the proprietary trading firm:

• Is not a “person located in the United States” for purposes of the “foreign futures or foreign options customer” definition in Commission regulation 30.1(c);
• Is not a “participant located in the United States” for purposes of Commission regulation 48.2(c);
• Is a “foreign located person” for purposes of 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 interpretation was issued in response to a request from the proprietary trading firm.