Non-U.S. Trading Terminals

The question of whether orders can be entered for Kansas City Board of Trade (KCBT) products to be executed on the electronic trading system from terminals located outside the US depends on the regulators in that country. If the regulators prohibit the entry of orders from screens in their country unless the exchange is recognized/registered in that non-US jurisdiction, then the answer would generally be no. In that case, similar to open outcry trading, the orders would have to be phoned to the US where the order would be entered from a terminal within the US. If the non-US regulator does not restrict such activity, then there should be no problem. Information regarding some specific regulatory authorities is as follows:

USA – Obviously KCBT is approved by the CFTC for the entry of orders into the electronic trading system from within the US.

Manitoba, Canada – The exchange is exempt from registration in Manitoba (as an Extra-Provincial Exchange Regulated by the Commodity Futures Trading Commission). This exemption (Order No. 3137) can be found at: http://www.msc.gov.mb.ca/legal_docs/orders/cfaextraprov.html

Australia – KCBT has not registered with the Australian Securities & Investments Commission (ASIC) as a foreign company in order to obtain a foreign markets license. However, financial service providers (like FCMs) may qualify for relief granted by ASIC under Order IR 04-52. Links to this Order and an accompanying FAQ are shown as follows:

United Kingdom - KCBT has not registered in the UK for ROIE (registered overseas investment exchange) status. Therefore people located in the UK will not be able to enter orders from terminals located there. Telephoning orders to the US where such orders can then be entered into the system from terminals within the US should be permissible. Firms may want to review and seek legal advice in determining whether Article 72 of the Regulated Activities Order provides for an exemption that would allow such firm electronic access to our markets from terminals located in the UK without KCBT being registered as an ROIE. The following is a link to that legislation.

Disclaimer - The Kansas City Board of Trade provides the above for informational purposes only and herein disclaims liability for errors or omissions in the information shown above. The KCBT makes no commitment to update the information contained on the site and disclaims all liability for the use or interpretation by others of information contained above. Decisions based on information contained above are the sole responsibility of the visitor, and in exchange for using the site, the visitor agrees to hold the KCBT, its officers, its members and its affiliates harmless against any claims for damages arising from any decisions that the visitor makes based upon such information. Nothing contained in the above constitutes advice on the part of KCBT.