CFTC Issues Impartial Access Requirements Interpretation

The Commodity Futures Trading Commission issued an interpretation of its Impartial Access Requirements, ruling that designated contract markets must provide competitive, open, fair and impartial access under Regulation 38.151(b). Chairman Michael S. Selig said geographic access restrictions are inconsistent with the Commodity Exchange Act, and DCMs must end domestic geographic restrictions that violate the rules within 30 days or explain to the Division of Market Oversight why compliance is infeasible. Within the same 30-day window, DCMs must also ensure intermediaries accessing their markets are not impeding compliance with the requirements, or submit a similar explanation. The interpretation matters because it bars exchanges from limiting membership or trading privileges based on where firms are located, a practice the agency views as incompatible with uniform national derivatives markets. Market participants should watch how quickly DCMs amend rulebooks and whether the CFTC pursues action against venues or intermediaries that retain restrictive practices.