CFTC opens door to US for South Korean futures 15 February 2016 Washington DC Reporter: Drew Nicol
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The Commodity Futures Trading Commission (CFTC) has allowed certain Korean Exchange (KRX) members to trade futures directly with in the US market.
South Korean derivative dealers will now be able to deal in products, such as KOSPI 200 futures, with their US counterparts without registering as futures commission merchants (FCM).
KRX said it expects US investors to increase the trading in KRX futures market as South Korean member firms are able to solicit and provide information and infrastructure to US investors.
According to KRX, it will start administrative procedures for qualified member firms soon.
The petition to exempt KRX member firms from FCM registration was first logged in January 2009, and the South Korean Financial Services Commission sent a representation letter on information sharing to the CFTC.
The exchange now plans to seek to allow its index options product become legally accessible to US investors through relief by the Securities and Exchange Commission.
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