The move will enable trading members to accept futures and options (F&O) orders from customers located in the US. “The members of BSE will now be permitted to solicit and accept futures and options orders and related funds from customers located in the US for futures and options transactions on BSE without registering as a futures commission merchant,” the exchange said.
BSE Chief Business Officer Sameer Patil said the exchange had applied for this exemptive relief in a representative capacity, on behalf of its members. He further said the relief will benefit the BSE members and provide the US customers increased access to Indian futures and options markets.
The relief is based on the finding by the CFTC that the local laws and regulations in India applicable to members of BSE provide a comparable level of customer protection, including licensing standards, minimum financial requirements, and compliance procedures, the exchange noted.
Finsec Law Advisors acted as the sole counsel for BSE in securing the exemptive relief and represented the exchange before the CFTC.