SEC Division of Trading and Markets no-action letter: LIFFE Administration and Management

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20S49
DIVISION OF
TRADING AND MARKETS
July 29,2009
Arthur W. Hahn
Katten Muchin Rosenman LLP
525 W. Monroe Street
Chicago, IL 60661-3693
Re: Additional No-Action Request ofLIPFE Administration and Management relating to revised clearing arrangements Dear Mr. Hahn:
This letter is in response to your request for no-action relief dated July 29,2009. A copy of your letter is attached with this response. By doing this, we avoid having to repeat or summarize the facts you presented. Each capitalized term in this letter has the same meaning as in your letter. By letters dated May 1, 1992, and March 6, 1996, the staffofthe Division of Trading and Markets ("Division") provided advice that, based on the facts, conditions, and representations described therein (the "Original No-Action Letters") the Division would not recommend enforcement action to the Commission against (1) LIPFE A&M or LIPFE under Section 5 ofthe Securities Exchange Act of 1934 (the "Exchange Act"), by reason of LIPFE A&M or LIPFE not registering under Section 6 ofthe Exchange Act as a national securities exchange, (2) LIPFE A&M, LIPFE, or LIPFE members under
Section 15 ofthe Exchange Act by reason ofLIPFE A&M, LIPFE, or LIPFE members
not registering under the Exchange Act as broker-dealers, or (3) LCH under Section 17A ofthe Exchange Act by reason ofLCH not registering under the Exchange Act as a clearing agency, ifLIPFE A&M, on behalfofLIFFE and LIPFE members, acted as described in the Original No-Action Letters to familiarize certain registered broker￾dealers and large financial institutions in the United States with the LIPFE market. 1 LIPFE A&M is now proposing to change its clearing arrangements such that LIPFE A&M, rather than LCH.Clearnet, will become the central counterparty to all LIPFE contracts. You are requesting, on behalfofLIPFE A&M and LCH.Clearnet, advice that the Division, subject to all ofthe terms and conditions of your letter, will not recommend enforcement action to the Commission against LIPFE A&M, any affiliated company (including LIPFE A&M's ultimate parent, NYSE Euronext), LCH.Clearnet, See Letter from Robert L.D. Colby, Deputy Director, Division, Commission, to Nancy Jacklin, Clifford Chance, dated March 6, 1996; and Letter from William H. Heyman, Director, Division, Commission, to Gary Lynch, Davis Polk & Wardwell, dated May 1, 1992.