CFTC Now Allows Malaysian Futures Brokers to Deal Directly With US Customers
The United States Commodity Futures Trading Commission (US CFTC) has given its approval permitting member brokers of Bursa Malaysia Derivatives Berhad to solicit and accept orders and customer funds directly from US customers without the need to register separately as a futures broker in the US. This approval was issued in relation to Regulation 30.10 of the US Commodity Exchange Act. The approval was premised on the fact that member brokers of Bursa Malaysia Derivatives Berhad are subject to comparable customer protection standards in Malaysia.
Bursa Malaysia Derivatives Berhad Chief Executive Officer, Chong Kim Seng said, “Our brokers now have direct access to US customers to market our derivatives offerings, and it is a new added opportunity for our brokers to capitalise on this opportunity to increase their trading base.
“With the approval from US CFTC, and through the active solicitation of our brokers, we believe that Bursa Malaysia Derivatives’ futures products will gain wider market access and thereby, encourage more cross border trading. It will eventually create more vibrancy in the market and strengthen the profile of our derivatives offerings,” he added.
Member brokers are required to file certain representations with the US National Futures Association to avail themselves of the Regulation 30.10 relief.