The Commodity Futures Trading Commission has issued a new interpretation of its impartial access requirements for designated contract markets. These federally registered exchanges, which handle futures and derivatives trading in the United States, must now eliminate domestic geographic restrictions for traders.
Exchanges have a 30-day window to comply with this mandate. If a platform cannot remove its location-based access barriers within this timeframe, it is required to submit a formal explanation to the CFTC’s Division of Market Oversight detailing why compliance is not feasible.
The directive also extends to intermediaries that connect customers to these markets. DCMs are responsible for ensuring that their brokers and other access points adhere to the same non-discriminatory standards. If intermediaries fail to comply, the exchange must provide a justification to the regulator.
This interpretation clarifies existing rules under 17 CFR 38.151, which mandates transparent and non-discriminatory access criteria. CFTC Chairman Michael S. Selig stated that uniform national operations are essential to fulfill the statutory goals of the Commodity Exchange Act.
