Financial Markets Conduct (US Futures Commission Merchants) Exemption Notice 2021

Summary: The Financial Markets Conduct (US Futures Commission Merchants) Exemption Notice 2021 provides relief to accredited NZX derivatives participants that are domiciled in the US and registered as futures commodity merchants (FCMs) with the Commodity Futures Trading Commission. They are exempted from regulations 238-250 of the Financial Markets Conduct Regulations 2014, which impose requirements on derivatives issuers relating to the holding and application of investor money and property. This is a renewal of an existing exemption with one additional condition relating to the non-solicitation of new investors.  This is because the exemption is being extended on a temporary basis while discussions continue as to the future of the dairy derivatives market.