On 14 May 2024, a statutory instrument (SI) – The Markets in Financial Instruments (Equivalence) (United States of America) (Commodity Futures Trading Commission) Regulations 2024 – was published on legislation.gov.uk.

The SI will revoke an existing equivalence decision, under Article 28(4) of the UK Markets in Financial Instruments Regulation (UK MiFIR), for the USA’s Commodity Futures Trading Commission (CFTC) and re-enact the decision with an updated annex. The annex of the equivalence decision provides a list of the designated contract markets (DCMs) and swap execution facilities (SEFs) in the USA that are authorised by the CFTC and are therefore able to fulfil the Derivatives Trading Obligation for the UK.

An explanatory memorandum, published alongside the SI, explains that since the UK Government made its original EU equivalence decision, several additional DCMs and SEFs established in the USA obtained authorisation from the CFTC to operate as regulated markets or amended their names. The UK Government remains of the view that the CFTC regime is equivalent on an outcomes basis, and is therefore extending the scope of its equivalence decision to all current CFTC-authorised markets. The original decision is therefore being revoked and re-enacted with an updated annex to reflect these changes in order to maintain the original intention of the equivalence decision.

The SI comes into force on 4 June 2024.