For Release: March 14, 2007
Washington, D.C. – The U.S. Commodity Futures Trading Commission's Office of General Counsel (OGC) confirmed on March 5, 2007, that no-action relief previously issued to LIFFE Administration and Management (LIFFE) with regard to its futures contracts on the FTSEurofirst 80 Index and FTSEurofirst 100 Index (collectively, Indices) would be extended to permit the offer and sale in the United States of Euronext Paris SA’s futures contracts based on these same Indices.
The Indices are broad-based and are composed of highly capitalized and actively traded stocks currently listed on major European stock exchanges. LIFFE and Euronext Paris SA are part of the same group owned by Euronext NV and are operated on the same trading platform.
Within the framework of the Euronext NV group organization, it was decided last year to delist from LIFFE the futures contracts on the Indices that were the subject of OGC’s no-action relief and to list futures contracts on the Indices on Euronext Paris SA. Euronext Paris SA’s futures contracts on the Indices generally are identical to those that were listed and traded on LIFFE, except for the calculation method of the settlement price. CFTC staff has concluded that the change in the settlement price calculation method does not render the contracts readily susceptible to manipulation, nor to be used to manipulate any underlying security in the Indices.
• For information on foreign exchange-traded security index futures contracts pending no-action approval with the CFTC's OGC, see the Foreign Instrument Approvals & Exemptions Backgrounder at www.cftc.gov/opa/backgrounder/opapart30.htm.
R. David Gary
Last Updated: July 16, 2007