Notice to Members
Notice No. 339 06/19/2006
NYMEX Compliance Advisory on Handling of NYMEX Europe Limited Orders on GLOBEX®
Commencing on trade date June 12, 2006, NYMEX Europe Limited (NEL) began listing its products for trading solely on the Chicago Mercantile Exchange's Globex® electronic trading system. The U.K. Financial Services Authority, which is the primary regulator for NEL, requires that NEL generally restrict direct electronic access to the trading of its products to NEL Members and Member Firms. Accordingly, on behalf of NEL, NYMEX is issuing this Compliance Advisory to make clear to all NYMEX Members and Member Firms that allowing direct client access to markets via the GLOBEX® system is currently limited to the following scenarios: Where the NYMEX, Inc. Clearing Member is a member of NEL, it can offer direct access to clients regardless of whether or not those clients are members of NEL. Where the NYMEX, Inc. Clearing Member is NOT a member of NEL, it can offer direct access ONLY to clients who are members of NEL. NYMEX Member Firms are further reminded of the current terms of a CFTC staff no-action letter issued to NEL last year, allowing NEL to provide direct access for electronic trading to eligible persons and firms in the U.S. pursuant to certain specified conditions of that letter. A PDF copy of the CFTC staff no-action letter is available by clicking here.
Should you have any questions or require any further information, please contact exchangeinfo@nymex.com