NewsRegulation
CFTC: US exchanges must remove geographic restrictions
The Commodity Futures Trading Commission has given US derivatives exchanges 30 days to remove domestic geographic restrictions that violate its impartial-access rules. This move puts pressure on exchanges to re-examine their access criteria and intermediary arrangements, which could impact Kalshi's nationwide access.
The Commodity Futures Trading Commission's November 5 demand gives US derivatives exchanges 30 days to remove domestic geographic restrictions that violate its impartial-access rules or explain why compliance is not feasible.
The conflict centers on geofencing, which uses a trader's location to determine which markets they can access. The CFTC now says that otherwise eligible US participants generally should not be excluded by geography.
The instruction applies to designated contract markets, or DCMs, and requires them to ensure that intermediaries accessing their markets comply within 30 days, or explain why compliance is not feasible. The CFTC argues that excluding eligible traders can fragment liquidity and weaken price discovery.
Source: cryptoslate.com; official document: cftc.gov
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