CFTC lets Korean brokers trade with U.S. investors
The Commodity Futures Trading Commission in February agreed to allow Korean brokers to offer derivatives directly to U.S. investors without registering as futures commission merchants. The CFTC ruling, which was issued after more than seven years of discussion, is based on the agency's determination that Korean brokers are subject to comparable supervision in their home country.
The Korean Exchange, which initiated the process by filing a petition on behalf of its member firms, said it will start administrative procedures soon so that KRX members can start offering direct access to products such as the Kospi 200 index futures. The exchange also said it plans to apply to the Securities and Exchange Commission for similar relief for its equity index options market.
