CFTC No-Action Letter 00-93: OM London Exchange Limited Electronic Trading and Clearing Systems

00-93
CFTC Letter No. 00-93
September 21, 2000
No-Action
Division of Trading & Markets
VIA FACSIMILE and U.S. MAIL
Philip McBride Johnson, Esq.
Skadden, Arps, Slate, Meagher & Flom
1440 New York Avenue, N.W.
Washington, D.C. 20005-2111
Re: Sections 5 and 5a - OM London Exchange Limited; Request for No￾Action Relief from Contract Market Designation Requirement Dear Mr. Johnson:
This is in response to your letters dated June 18, 1999 through September 5, 2000 to the Division of Trading and Markets ("Division") of the Commodity Futures Trading Commission ("CFTC" or "Commission'').1 By this correspondence, you request, on behalf of OM London Exchange Limited ("OM London" or "Exchange"), that the Division grant no-action relief to permit OM London to make its electronic trading and order matching system, known as the OM Click Exchange System ("OM CLICK"), and its electronic clearing system, known as the OM SECUR Clearing System ("OM SECUR") (OM CLICK and OM SECUR are collectively referred to herein as the "System"), available to OM London members2 in the United States3 ("No-Action Request"). Specifically, OM London wishes to make OM CLICK available to: (i) OM London members who wish to trade for their proprietary accounts4 through OM CLICK in the United States; (ii) OM London members who are registered with the CFTC as futures commission merchants ("FCMs") or who are exempt from such registration pursuant to Rule 30.10 ("Rule 30.10 Firms")5 and who wish to submit the orders of United States customers6 from transmission to OM CLICK; and/or (iii) OM London members who are registered with the Commission as FCMs or who are Rule 30.10 Firms and who wish to accept orders from United States customers through automated order routing systems ("AORSs")7 for submission to OM CLICK. OM London also seeks relief to permit the above-referenced, OM CLICK-executed trades to be cleared through OM SECUR.8 You request that the Division confirm that it will not recommend enforcement action to the Commission against OM London or its members if OM London does not seek designation as a contract file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/00letters/tm00-93.htm (1 of 32) [5/6/2010 6:21:58 PM]