Members of NSE IFSC can now trade in derivatives for their US clients

Members of NSE International Exchange (NSE IFSC) can now trade in derivatives for their US clients as Commodity Futures Trading Commission (CFTC) has given the bourse part 30 exemptive order. NSE IFSC becomes the first International Exchange in Gift City to be part 30 exempted by CFTC.

CFTC order permits NSE IFSC members to accept US customer funds directly for the purpose of trading in futures and options contracts without the members having to register with the CFTC as a futures commission merchant. 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 programs.

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

NSE IFSC, a wholly owned subsidiary of the National Stock Exchange of India. The trading at NSE IFSC was launched on June 5, 2017 post receiving grant of recognition from SEBI. NSE IFSC has already launched trading in Indian and Global stock derivatives, Index derivatives, currency derivatives, and non-agriculture commodity derivatives. SEBI has also permitted trading in a wide range of products including equity shares of companies incorporated outside of India, depository receipts, debt securities of eligible issuers, interest rate derivatives and all categories of exchange traded products that are available for trading in stock exchanges in FATF/ IOSCO compliant jurisdictions. In addition, SEBI has allowed FPIs to trade in commodity derivatives in GIFT IFSC.