ASX wins approval from CFTC for US market access

US market participants will be able to trade directly with ASX without having to trade through an intermediary.

The Australian Securities Exchange (ASX) has won regulatory approval which will provide US customers with direct access to trade on the exchange’s platform.

ASX is now registered with the Commodity Futures Trading Commission (CFTC) as a foreign board of trade (FBOT), meaning US clients can trade directly with ASX without having to go through an intermediary.

FBOTs must be legally organised under domestic regulatory regimes to be granted approval. In ASX’s case, supervision will be carried out by the Australian Securities and Investments Commission, overseeing the exchange’s compliance with requirements including customer protection and market integrity measures.

The CFTC said the decision to grant ASX approval reflects its confidence and trust in the oversight of market participants by relevant home country regulators.

“By their very nature, derivatives instruments trade in global markets,” said CFTC chairman J. Christopher Giancarlo. Cross-border competition, growth, and innovation are stifled if we impose piecemeal or inconsistent regulatory requirements which cause inefficiencies and higher costs.

“To mitigate such an outcome, the CFTC continues to lead by example to adopt regulatory deference and support market-led activity taking place across these markets.”

The regulator first began accepting FBOT applications in 2012 and has so far registered 19 venues from 12 countries, including the Tokyo Commodity Exchange, Montreal Exchange, London Metal Exchange, ICE Futures Europe and the Dubai Mercantile Exchange.