Release: 5167-06

For Release: March 15, 2006

CFTC Issues Order Concerning Chicago Mercantile Exchange Floor Brokers and Floor Traders and the Trading of OTC Eurodollar and Currency Contracts

Washington, D.C. – The Commodity Futures Trading Commission (Commission) has determined that, pursuant to Section 1a(12)(C) of the Commodity Exchange Act (Act), and subject to certain terms and conditions, floor brokers and floor traders at the Chicago Mercantile Exchange (CME) are eligible contract participants (ECP). Specifically, the Commission has issued an Order which permits CME floor brokers and floor traders who are registered with the Commission, when trading for their own accounts, to be ECPs for purposes of entering into CME-specified over-the-counter (OTC) transactions in excluded commodities which are subsequently submitted to the CME Clearing House for clearance pursuant to CME Rule 537. The order requires, among other things, that the CME floor broker or floor trader must have obtained a financial guarantee for the transactions from a CME clearing member that is registered with the Commission as a futures commission merchant and that clears the OTC transactions and that the CME will maintain appropriate compliance systems in place to monitor the OTC transactions of its floor brokers and floor traders.

Copies of the Order may be obtained from the Commission's Office of the Secretariat at Three Lafayette Centre, 1155 21st Street, N.W., Washington, DC 20581, (202) 418-5100, or via the Commission's website at /files/opa/opacmeorder031506.pdf.

Media Contacts
Alan Sobba

R. David Gary

Last Updated: April 23, 2010