London Stock Exchange Derivatives Market receives Registered FBOT status from CFTC
- Registered FBOT status allows US participants direct access to market
- Approval will significantly increase London Stock Exchange Derivatives Market’s international appeal
London Stock Exchange plc today announces that it has received approval from the US Commodity Futures Trading Commission (CFTC) as a registered Foreign Board of Trade (FBOT). The approval allows London Stock Exchange Derivatives Market (LSEDM) to provide US based participants with direct access to its electronic order book in the FTSE 100 UK Index Futures contract, the FTSE UK Large Cap Super Liquid Index Futures contract and the BIST 30 Index Futures contract. This follows previous certification from the CFTC that these products are in conformance with the requirements of section 2(a)(1)(C)(ii) of the Commodity Exchange Act and may therefore be offered or sold to persons in the U.S.1
Registered FBOT status is formal recognition, granted by the CFTC, that London Stock Exchange Derivatives Market is subject to comprehensive supervision and regulation, comparable to the US, by the Financial Conduct Authority in the UK. CFTC: http://www.cftc.gov/PressRoom/PressReleases/index.htm
Nikhil Rathi, CEO of London Stock Exchange plc said:
“This is a very important milestone for London Stock Exchange Derivatives Market, allowing us to significantly increase our appeal and reach in the US. This registration will provide US based clients with more choice, allowing them to access directly a range of derivatives listed on London Stock Exchange Derivatives Market.”
London Stock Exchange Derivatives Market (LSEDM) develops products across emerging and developed markets. It offers Member Firms a range of UK and international equity derivatives products, including IOB Depositary Receipts, Turkish BIST 30 Index products and operates a linked order book for Norwegian derivatives with Oslo Børs. UK derivatives including Futures and Options on FTSE100, FTSE UK Large Cap Super Liquid, Single Stocks as well as FTSE 100 weekly options are available to trade. Since September 2016, LSEDM Members can also trade CurveGlobal products in both short and long term Interest Rate Derivatives.
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For further information:
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Notes to editors:
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) is an international markets infrastructure business. Its diversified global business focuses on capital formation, intellectual property and risk and balance sheet management. LSEG operates an open access model, offering choice and partnership to customers across all of its businesses. The Group can trace its history back to 1698.
The Group operates a broad range of international equity, ETF, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS (Europe's leading fixed income market); and Turquoise (a pan-European equities MTF). Through its platforms, LSEG offers market participants, including retail investors, institutions and SMEs unrivalled access to Europe’s capital markets. The Group also plays a vital economic and social role, enabling companies to access funds for growth and development.
Through FTSE Russell, the Group is a global leader in financial indexing, benchmarking and analytic services with approximately $10 trillion benchmarked to its indexes. The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, XTF and RNS.
Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of LCH, a multi-asset global CCP operator, LSEG owns CC&G, the Italian clearing house; Monte Titoli, a leading European custody and settlement business; and globeSettle, the Group’s CSD based in Luxembourg.
LSEG is a leading developer and operator of high performance technology solutions, including trading, market surveillance and post trade systems for over 40 organisations and exchanges, including the Group’s own markets. Additional services include network connectivity, hosting and quality assurance testing. MillenniumIT, GATElab and Exactpro are among the Group’s technology companies.
Headquartered in the United Kingdom, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 3,500 people.
Further information on London Stock Exchange Group can be found at www.lseg.com