The Division of Trading and Markets (Division) confirmed that, for U.S. customers trading the LMEX contract on the London Metal Exchange (LME), LME firms may comply with the standard provision for segregation of customer funds instead of the alternative segregation provision. Under Commission Rule 30.10 the Commission issued orders in May 1989 permitting U.K. firms to solicit and accept orders from U.S. customers for trading on U.K. markets, including LME. Because LME contracts have traditionally not been cash settled, U.K. firms were permitted, in lieu of standard segregation, to maintain a binding letter of credit or bank guarantee to cover forward profits and clearing exposures on the LME (i.e., the alternative segregation provision). The LMEX contract, however, will be cash settled and LME believes that standard segregation is appropriate with respect to that contract. The Division has confirmed that LME firms can treat the LMEX contract under standard segregation and all other LME contracts under the alternative segregation provision, even if the same customer is involved.