On 21 May 2025, the United States Commodity Futures Trading Commission (US CFTC), through its Market Participants Division and Division of Market Oversight, issued an interpretative letter clarifying the application of cross-border definitions under existing US CFTC regulations. This regulatory clarification was provided in response to a formal request by a proprietary trading firm organised outside the United States.
The interpretative letter affirms that, based on the specific facts submitted, the foreign proprietary trading firm is not considered a “person located in the United States” under the definition of a “foreign futures or foreign options customer” as per US CFTC regulation 30.1(c). Further, the firm is not classified as a “participant located in the United States” under US CFTC regulation 48.2(c).
US CFTC’s staff determined that the firm qualifies as a “foreign located person” pursuant to US CFTC regulation 3.10(c)(1)(ii), and is not a “U.S. person” under the meaning of Commission regulation 23.23(a) and the US CFTC’s 2013 Interpretive Guidance and Policy Statement Regarding Compliance With Certain Swap Regulations.
This interpretation is meant to provide legal certainty for the proprietary trading firm regarding its cross-border regulatory status under US CFTC oversight with regulatory clarity for international market participants engaging in US-regulated derivatives activities.
(Source: https://www.cftc.gov/PressRoom/PressReleases/9077-25)
