CFTC Staff Letter 00-73: No-Action for OM Exchange Limited and OM Stockholm Futures on the OMXCAP Index

00-73
CFTC Letter No. 00-73
May 25, 2000
No-Action
Office of General Counsel
Mr. Derek Oliver
Director of Legal Affairs
OM London Exchange Limited
107 Cannon Street
LondonEC4N 5AD
United Kingdom
Re: The Offer and Sale in the U.S. of Futures Contracts on the OMXCAP Index Traded on OM London Exchange Limited and OM Stockholm Exchange AB Dear Mr. Oliver:
This is in response to your May 24, 2000 letter to the Office of General Counsel of the Commodity Futures Trading Commission ("Commission" or "CFTC") in which you inquire whether no-action letters previously issued by this office1 concerning the offer and sale in the United States by OM London Exchange Limited ("OM London") of its standardized and flexible futures contracts based on the OMX Stock Index ("OMX Index" or "Index") and by OM Stockholm Exchange AB ("OM Stockholm") of its standardized futures contracts based on the OMX Index will be extended to futures contracts on the OMXCAP Index, a revised version of the OMX Stock Index, when those futures contracts begin trading on May 26, 2000. The no-action letters previously issued by this office incorporated, by reference, the agreements of OM London and OM Stockholm to contact the Division of Market Regulation of the Securities and Exchange Commission ("Division") should the average weighting of any single issuer in the OMX Index in a calendar month exceed 25 percent of the Index, or if the combined average weightings of the top three issuers in the Index account for more than 50 percent of the Index. Moreover, the agreements also required the OM London and OM Stockholm, if the average weighting of any single issuer in the Index during a calendar quarter exceeded 30 percent, or if the combined average weightings of the top three issuers in the Index represented more than 55 percent of the Index, to promptly suspend further offers or sales of futures contracts in the U.S. based on the Index in reliance on this office's no-action letters unless the Division staff advised them that it had waived or modified this condition. From your May 24 letter and attachments thereto, we understand the facts to be as follows. As a result of file:///S|/Website%20Management/LegacyDataCopyasof2010-04-21/tm/letters/00letters/tm00-73.htm (1 of 3) [5/6/2010 6:22:05 PM]