For Release: July 3, 2000
CFTC Issues Statement of Policy Permitting Certain
of Trade to List New Futures and Option Contracts through
U.S.-Located Trading Systems
WASHINGTON -- On June 30, the Commodity Futures Trading Commission (CFTC) issued a Policy Statement expressing the view that foreign boards of trade that have placed automated trading systems in the U.S. pursuant to a CFTC staff no-action letter may list certain additional futures and option contracts through such systems without further regulatory action, subject to certain filing and certification requirements. Newly listed futures and option contracts will be traded subject to the terms and conditions of the no-action relief that has previously been issued to the particular foreign board of trade. The Statement of Policy does not apply to contracts that are covered by Section 2(a)(1)(B) of the Commodity Exchange Act.
The no-action letters permitting the placement of foreign trading systems in the U.S. restricted the no-action relief to the contracts specifically delineated in the letters. Foreign boards of trade were required to request and receive supplemental no-action relief from CFTC staff each time they wished to list new futures and option contracts through their U.S.-located trading systems.
The Statement of Policy was issued in consideration of the CFTC staff's successful experience with the relief provided by the foreign trading system no-action letters and the CFTC’s adoption of Rule 5.3, which generally permits a domestic board of trade that has been designated as a contract market to list new futures and option contracts for trading upon satisfaction of certain filing and certification requirements.
The Statement of Policy is effective immediately, but will cease to be effective in the event that the CFTC adopts generally applicable rules or guidelines in this area.
The Statement of Policy will be published shortly in the Federal Register. Copies also can be obtained by contacting the Office of the Secretariat, Three Lafayette Center, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100 or by accessing the Commission's website at http://www.cftc.gov/tm/tmpolicystatementforeignbots.htm