CFTC Permits Cantor Clearinghouse to Clear Certain Foreign Exchange Options

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On February 11, the Commodity Futures Trading Commission issued an amended order that allows Cantor Clearinghouse, L.P. (Cantor), a registered derivatives clearing organization, to clear: (i) foreign exchange spot index binary flex options contracts (FXSI contracts) that are financially settled based on foreign currency pairs of major money center currencies; and (ii) thereafter, additional binary options contracts that are fully margined, have risk profiles similar to the FXSI contracts, and for which there is an underlying commodity. Cantor is permitted to act as a derivatives clearing organization only for contracts traded on the Cantor Futures Exchange, L.P.

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