The Commodity Futures Trading Commission has given US designated contract markets 30 days to remove domestic geographic restrictions that violate its impartial-access requirements. Exchanges unable to comply must explain to the Division of Market Oversight why compliance is not feasible. Intermediaries connecting clients to the markets must also follow these rules, with the same option of submitting an explanation. The interpretation builds on the existing rule in 17 CFR § 38.151, clarifying that domestic geographic restrictions can constitute prohibited discrimination. No significant enforcement actions have followed the announcement, as the agency is currently relying on a deadline and requests for explanations rather than penalties.
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