NSE IFSC Derivatives Access to US Clients Enabled

Money Control

NSE IFSC gets CFTC exemption for derivatives trade

The CFTC exemption enables NSE IFSC members to trade in derivatives for the US clients, NSE said in a statement.

25 November 2020

NSE IFSC has received exemption from the Commodity Futures Trading Commission (CFTC) that will allow members of the bourse to trade in derivatives for US clients, the exchange said on Wednesday. NSE IFSC, a wholly-owned subsidiary of National Stock Exchange (NSE), becomes the first international exchange in Gift City to get this exemption.

The CFTC exemption enables NSE IFSC members to trade in derivatives for the US clients, NSE said in a statement. "The order issued to NSE IFSC permits its members to accept US customer funds directly for the purpose of trading in futures and options contracts on NSE IFSC without the members having to register with the CFTC as a futures commission merchant," the exchange said.

The US CFTC issued a Part 30 exemption order on Tuesday to NSE IFSC as part of its programme of regulatory deference to foreign regulatory frameworks. Part 30 exemptive programme of CFTC provides US customers with increased access to foreign futures markets.

The relief is based on the finding by the CFTC that the local laws and regulations applicable to NSE IFSC members provide a comparable level of customer protection, including licensing standards, minimum financial requirements and robust compliance programmes. NSE IFSC's parent exchange NSE was granted a similar exemption in 2018.

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