A lot of the financial rules and regulations are made and decided by non-elected government organizations and staff, like the CFTC and the SEC, with little oversight from Congress. I think the reason is that most members of congress don't have a clue about the technicalities of investing or trading.
U.S. residents won't be able to trade almost any futures or options on foreign exchanges, due to U.S. regulations. A few futures products are "whitelisted" by some U.S. bureaucrats (CFTC I think, or perhaps SEC). Foreign exchanges that want their products whitelisted for U.S. residents have to pay money and dance to the tune of the U.S. government (CFTC?). There is a U.S. government organization that does nothing else but control and update this list day in day out year in year out, write garbage (excuse me) publications and opinion letters etc. I looked at that garbage (excuse me) list and it seems arbitrary. For example Euro Stoxx 50 options, the equivalent of SPX options in Europe, are prohibited for U.S. residents. As a result, U.S. citizens can't do many things, like writing covered calls on foreign equities or indexes, hedge their international portfolios with foreign index futures, etc. I can't believe that this kind of government overreach is possible in a supposedly free country like the U.S. I believe investors know better what's good for them than some government organization. Additionally, it is an arbitrary discrimination of individuals and small investors vs. organizations. You can only get an exemption if you have > $100M. This seems to be some antiquated law from decades if not close to a century ago, the sole purpose of which in my humble opinion is to justify the job positions and the existence of the agency that controls that "white list" and extracts money from foreign exchanges. Foreign futures and options are not any more or less risky than U.S. futures and options; and even if they were, let U.S. citizens do their research and make that determination what they do with their own money, not the government. I found no way to circumvent or bypass this crap with U.S. brokers.
The general issue with foreign securities (not CFTC) is the harmonization of oversight agreements. The SEC has traditionally been a pushover in this area. With rare exceptions, it has been the willingness and expense placed upon the foreign regulator. One can argue that we have been the assholes for requiring the harmonization, but I've never heard of a request being denied. I've heard of them being withdrawn, but qualified institutions can pretty much trade anything and much of what is created ends up in retail. Qualified institutions are simply size arising from the assumption that size accounts can do their own due diligence. I think everyone agrees size alone does make you wiser.
I personally think it's arbitrary discrimination. I should be able to do at my own risk whatever the big boys do. I don't need anybody to tell me what's good or bad for me, and for sure not a government agency. U.S. options are not any more or less safe than foreign options. I also find it outrageous, a sign of arrogance or an exaggerated sense of self-importance, that the U.S. tries to control and regulate, whitelist and blacklist, every exchange in every country of the world (for U.S. citizens) with different languages different customs and what not. U.S. government, please take care of your own issues within your own country, there are plenty. Let your citizens evaluate and decide how and where they spend or invest their money.
Again, it's not about safety. It's about oversight by the foreign marketplace. If they wanted US based flow they could have it next few business days. Assuming you can find routing and the away regs didn't preclude it.
Frankly I read this and your previous post three times, and I have not idea what you are saying. "oversight by the foreign market place"? "harmonization"? The brokers have everything in place to trade on global options and futures exchanges. But U.S. residents are denied due to the U.S. government rules (to "protect" their citizens, lol). Most other customers worldwide at the same U.S. brokers (or foreign subsidiaries) are allowed to trade globally. The foreign marketplace does not impose any restriction on who trades on their exchange.