Pending all relevant regulatory review periods, effective on December 23, 2013, CME, CBOT, NYMEX and COMEX (collectively, the “Exchanges”) will each adopt new Rule 132 (“Sale of Membership at Direction of Regulatory Authority”). The new rule provides additional protection to the Exchanges in the event that a regulatory authority with jurisdiction over the owner of a membership directs the owner to relinquish the membership or where a membership is determined to have been obtained unlawfully based on the laws of a foreign jurisdiction.
Rule 132 allows the Exchanges to force a sale of a membership where the owner does not voluntarily sell that membership when instructed to do so by a regulatory authority with jurisdiction over the owner, or where it is determined that the membership was purchased in contravention of applicable laws. The forced seat sale process would be the same as the process set forth in existing Rule 133 (“Sale of Membership when Member Defaults”).
The text of new Rule 132 appears below.
If you have any questions concerning the new rule, please contact Robert Sniegowski, Senior Director, Rules & Regulatory Outreach, Market Regulation Department, at 312.341.5991.
For media inquiries concerning this Special Executive Report, please contact CME Group Corporate Communications at 312.930.3434 or firstname.lastname@example.org.