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What must my firm consider when doing business with a foreign account or entity?

The following table shows when an individual/entity is required to be registered as an FCM, IB, CPO, or CTA based on the locations of the entity, its customers, and the exchanges on which contracts will be traded. Exemptions may, of course, apply.

Entity Location Customer Location Exchange Location Registration Required
United States United States United States Yes
United States United States Foreign Country Yes
United States Foreign Country United States Yes
United States Foreign Country Foreign Country No
Foreign Country United States United States Yes
Foreign Country United States Foreign Country *
Foreign Country Foreign Country United States No**
Foreign Country Foreign Country Foreign Country No


*The firm must register unless it has received an exemption under CFTC Regulation 30.5 or 30.10. BASIC will tell you if the firm is exempt under one of these rules. 

** For a foreign broker acting as an FCM, registration is not required only if it submits any commodity interest transactions executed on or subject to the rules of a designated contract market for clearing on an omnibus basis through a registered FCM.

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