CFTC Staff Letter 08-06: No-Action Relief for TAIFEX Futures Contract on XIF

U.S. COMMODITY FUTURES TRADING COMMISSION
Three Lafayette Centre
1155 21st Street, NW, Washington, DC 20581
Telephone: (202) 418-5120
Facsimile: (202) 418-5524
Office of General Counsel

CFTC Letter No. 08-06
April 1, 2008
No-Action
Office of General Counsel
Michael S. Sackheim, Esq.
Sidley Austin LLP
787 Seventh Avenue
New York, NY 10019
Re: Taiwan Futures Exchange’s Request for No-Action Relief in Connection with the Offer and Sale in the United States of its Futures Contract Based on the Taiwan Stock Exchange Non-Finance Non-Electronic Sub-Index Dear Mr. Sackheim:
This is in response to your letter and electronic mail dated December 21, 2007, requesting on behalf of the Taiwan Futures Exchange (“TAIFEX”), that the Office of General Counsel (“Office”) of the Commodity Futures Trading Commission (“Commission” or "CFTC") issue a “no-action” letter concerning the offer and sale in the United States (“U.S.”) of TAIFEX’s futures contract based on the Taiwan Stock Exchange Non-Finance Non-Electronic Sub-Index (“XIF” or “Index”).1 We understand the facts to be as follows. TAIFEX is a futures exchange in Taiwan founded in 1997 pursuant to the joint efforts of the Taiwanese government and the private sector.2 Originally named the Taiwan International Mercantile Exchange, the Exchange’s name was changed to TAIFEX in 1999. TAIFEX was granted a corporate license, and its Board of Directors was selected as the highest executive body of the Exchange. The principal regulatory This Office previously has granted no-action relief in connection with TAIFEX’s futures contracts on the MSCI Taiwan Index, see CFTC Staff Letter No. 06-28 [2005-2007 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 30,398 (Oct. 11, 2006); the Taiwan Stock Exchange Electronic Sector Index and the Taiwan Stock Exchange Finance Sector Index, see CFTC Staff Letter No. 05-08 [2005-2007 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 30,077 (May 16, 2005); and the Taiwan Stock Exchange Capitalization Weighted Stock Index, see CFTC Staff Letter No. 04-16, [2003-2004 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 29,781 (June 2, 2004). 2 See letter from Michael S. Sackheim, Esq., Sidley Austin LLP, to Terry S. Arbit, General Counsel, CFTC, dated December 21, 2007, at 2.