Attached please find the updated Foreign Listed Stock Index Futures and Options Approvals Chart, current as of December 15, 2023. All prior versions are superseded and should be discarded. Please note the following developments since we last distributed the Approvals Chart:
- Eurex Deutschland (Eurex) has certified with the Commodity Futures Trading Commission (CFTC) the following futures contracts on broad-based security indices for trading by persons located within the United States: (i) MSCI World Enhanced Value (USD, Net Total Return (NTR)); (ii) MSCI World Equal Weighted (USD, NTR); (iii) MSCI World Growth Target (USD, NTR); (iv) MSCI World High Dividend Yield (USD, NTR); (v) MSCI World Momentum (USD, NTR); (vi) MSCI World Quality (USD, NTR); (vii) MSCI World Minimum Volatility (USD, NTR) (viii) Daily Futures on Kospi 200 Index; (iv) Daily Futures on Mini Kospi 200; and (v) Bloomberg Euro Liquidity Screened High Yield Bond Index Futures.
- Eurex notified market participants that as of January 19, 2023, STOXX Europe 600 Health Care Futures (FSTH) is deemed a narrow-based security index. Because the STOXX Europe 600 Health Care Index currently fails the primary trading market test set forth in the Securities and Exchange Commission's (SEC) 2009 Order governing execution and clearing of foreign security futures by customers of U.S. broker-dealers/FCMs (the "2009 SEC Order"), futures on the index are ineligible to be executed or cleared by customers of U.S. broker-dealers/FCMs. The CFTC has revoked the prior certification. The Eurex circular is available here.
- After advising market participants that as of May 1, 2023, futures contracts on the SMI Index would transition from eligible to ineligible for accounts held by registered U.S. broker-dealers/FCMs, Eurex subsequently announced that as a result of an extraordinary adjustment to the SMI Index by the SIX Swiss Exchange, which administers the SMI Index, futures on the SMI will once again be eligible for such accounts, effective on June 13, 202 Specifically, as a result of the closing of the merger between Credit Suisse and UBS Group AG, SIX delisted Credit Suisse shares from the SMI Index and admitted Kühne+Nagel International AG shares to the SMI Index. Eurex calculated that as a result of this change, the SMI Index passes the primary trading market test under the 2009 SEC Order. The Eurex circular is available here.
- Eurex notified market participants that as of April 3, 2023, MSCI Poland Index Futures (NTR) is deemed a narrow-based security index, and as such, futures contracts on this index are now available for trading by eligible customers in accordance with the 2009 SEC Order only in accordance with applicable requirements of both the SEC and the CFTC. The previous certification by the CFTC has not yet been revoked. The Eurex circular is available here.
- Euronext notified market participants that as of April 20, 2023, the AEX Index transitioned from being deemed under U.S. law as a broad-based security index to being deemed a narrow-based security index, thereby coming within scope of the 2009 SEC Order. Because the AEX Index currently fails the primary trading market test, futures on the index are ineligible to be executed or cleared by customers of U.S. broker-dealer/FCMs. The CFTC has revoked the prior certification.
- Ice Futures Europe has certified with the CFTC the FTSE 100 Total Return Future contract on a broad-based security index for trading by persons located within the United States.
- Korea Exchange certified with the CFTC the following contracts on a broad-based security index for trading by persons located within the United States: (i) Kospi 200; (ii) Kospi Mini 200; (iii) Kospi 200 Index Futures; and (iv) Mini Kospi 200 Index Futures.
- Singapore Exchange Derivatives Trading Limited (SGX) certified with the CFTC the following futures contracts on broad-based security indices for trading by persons located within the United States: (i) SGX MSCI AC Asia ex Japan Climate Action Index Futures (NTR) (USD); (ii) SGX MSCI Asia Japan Climate Action Index Futures (NTR)(USD); (iii) SGX MSCI World Climate Action Index Futures (NTR)(USD); (iv) SGX MSCI Europe Climate Action Index Futures (NTR)(USD); (v) SGX MSCI USA Climate Action Index Futures (NTR)(USD); and (vi) Nikkei 225 Climate PAB Futures.
- SGX notified market participants that as of July 3, 2023, the SGX Nifty contracts will be executed exclusively on NSE IFSC. Orders in Nifty contracts may still be routed through and subsequently cleared through SGX. Additional details concerning the SGX-NSE arrangement are available here.
- As of June 27, 2023, SGX has withdrawn the CFTC certification for the SGX iEDGE S-REIT LEADERS INDEX futures contract.
- Osaka Exchange, Inc. certified with the CFTC the Nikkei 225 Micro Futures contract for trading by persons located within the United States.
- As a reminder, futures contracts that received CFTC no-action relief prior to the enactment of the Commodity Futures Modernization Act of 2000, are excluded from the definition of a narrow-based security index, provided that they continue to be traded on or are subject to the rules of a foreign board of trade. The complete list of "grandfathered" contracts is available here.
Additional products that are made available for trading by U.S. persons after December 15, 2023 will be addressed in a subsequent version of this Approvals Chart. Please refer to the websites of the CFTC, the SEC and the applicable exchanges for more information in the interim. Users of the Approvals Chart should also consult the monthly reports distributed FIA Tech's FSF Databank service; information concerning the service is available here.
Stephen Morris also contributed to this article.