I support the proposed amendments to CFTC rules for foreign boards of trade (FBOTs) that would permit a registered FBOT to provide direct access to its electronic trading and order matching system to a registered introducing broker (IB) located in the United States for submission of customer orders to the FBOT’s trading system for execution.  Based upon more than ten years of Commission experience with the existing rules for FBOTs, the Commission is also proposing certain enhancements and modernization of the existing ruleset.

The existing FBOT rules were promulgated in 2011.  Today’s proposed amendments are emblematic of the Commission’s ongoing consideration of its existing rules and my commitment to ensuring that our rules continue to address the reality of today’s markets and their structure.  The proposed changes may enable new types of market participants to access registered FBOTs, which could help improve liquidity and reduce fragmentation, thereby promoting healthier markets.

I look forward to hearing the public's comments on the proposed amendments to the regulations for FBOTs.  I thank staff in the Division of Market Oversight, Office of the General Counsel, and the Office of the Chief Economist for all of their work on the proposal.