CFTC Requires Designated Contract Markets to Cease Noncompliant Geographic Restrictions Within 30 Days

The U.S. Commodity Futures Trading Commission issued guidance on fair access requirements for designated contract markets, ordering them to end noncompliant domestic geographic restrictions within 30 days or explain to market regulators why compliance is not possible. The CFTC said designated contract markets must also ensure, within the same 30-day window, that intermediaries connecting to their markets do not impede fair access and adhere to the requirements, with firms again required to justify any failure to comply. The agency said it will weigh possible actions case by case based on individual facts and circumstances. The move matters because it puts exchanges and the brokers that route orders to them on a firm deadline to remove access barriers, with the next signal being which venues disclose compliance gaps or seek exemptions.