The Commodity Futures Trading Commission (CFTC) announced on Thursday that it has issued a registration order to futures exchange, FEX Global Pty Ltd (FGL), which is licensed by Australia’s Foreign Board of Trade (FBOT).
The company is now allowed to operate markets in energy, commodity and environmental derivative products.
FGL is supervised by the Australian Securities and Investments Commission (ASIC) and is subject to the Reserve Bank of Australia's oversight of financial system stability. The platform first submitted its application for the CFTC’s approval in August 2021.
The order has been granted as the company satisfied CFTC requirements for FBOT registration by demonstrating that it has the attributes of an established and organized exchange. Further, the regulatory oversight of the platform in Australia is comparable to the supervision of the CFTC designated contract markets.
“Under the order, FGL’s members and other U.S. participants may enter orders directly into its trade matching system,” the CFTC explained.
Meanwhile, the FGL is not the only FBOT registered with the American regulator. The CFTC has registered a total of 24 FBOTs that include names like Australian Securities Exchange, Dubai Mercantile Exchange, Eurex, and several other big global names.
A Key US Regulator
The CFTC is one of the top US federal regulators in financial market supervision. It oversees all the activities in the commodities and derivatives market, including the regulated futures trading with Bitcoin and Ethereum.
The agency is vigilant in the market and is actively busting companies for regulatory violations and is keeping an eye on the rampant fraudsters in the markets. Earlier this month, it charged four operators of a massive $44 million cryptocurrency Ponzi-styled scheme, while recently receiving a consent order in an enforcement action against a $7.2 million forex and crypto trading fraud.
