Magazine article Modern Trader

International News: Americas: No-Action Buzz

Magazine article Modern Trader

International News: Americas: No-Action Buzz

Article excerpt

NO-ACTION BUZZ Since June 1 when former CFTC Chairman Brooksley Born stepped down and the moratorium barring nonU.S. exchanges from accessing U.S. futures markets was lifted, controversy has surrounded the CFTC's decision to begin processing no-action requests. Six exchanges have applied for a noaction request to place screens in the United States: Liffe, IPE, Eurex, Sydney Futures Exchange, Matif and OM London.

Eurex CEO Jorg Franke has said that the CFTC is barring the exchange from installing any additional electronic screens in the United States until archrival Liffe is ready to launch a competing system later this year. However, CFTC Commissioner Barbara Holum says this has not been established as CFTC policy, but she did not offer a time frame for when these no-action requests might be granted. Ironically both Liffe's and Eurex's plans for placing screens on U.S. soil could be further complicated by three U.S. exchanges, the CME, Nymex and Eurex's new partner, the CBOT. This group of U.S. exchanges petitioned the CFTC in late June seeking exemptive relief to list new contracts for trading without pre-approval, to adopt new rules upon 10 days notice to the CFTC and to implement trading rules comparable to those of a competing non-U.S. exchange. The exchanges believe this would give them regulatory parity in response to the CFTC's plan to process no-action requests from non-U.S. exchanges.

PAY TO PLAY Merrill Lynch agreed to pay $25 million to settle charges in the United States and the United Kingdom that it helped Sumitomo manipulate the copper market in 1995. …

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