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Foreign Boards of Trade

Definition

Foreign Boards of Trade are regulated exchanges located outside a domestic country where commodities or financial instruments are traded. These institutions provide a platform for buyers and sellers to conduct transactions in various assets, including agricultural products, metals, energy, and financial derivatives, under the jurisdiction of their respective nations. They serve as critical components of the global financial system, facilitating price discovery, risk management, and capital allocation across international borders. Participation in these boards often requires adherence to specific regulatory compliance standards.