Ontario-Based Market Participants

FINANCIAL AND REGULATORY  BULLETIN

TO:                  Chief Executive Officers                                                                                #14-01

                        Chief Operations Officers                                                                          

                        Chief Compliance Officers

DATE:             January 14, 2014

SUBJECT:      Ontario-Based Market Participants

In accordance with the Ontario Securities Commission’s (“OSC”) exemptive order dated October 22, 2013 (the “Order”), CME, CBOT, NYMEX and COMEX (collectively, the “Exchanges”) are providing this notification to all clearing members. As set forth in the Order and based on the OSC’s interpretation of Ontario and Canadian laws and regulations, the OSC has stipulated that clearing members may only permit Ontario-based market participants intermediated access to the Exchanges pursuant to the following conditions:  

·         The Ontario market participant is registered under Ontario law as an Ontario FCM; or

·         The clearing member granting access to an Ontario-based market participant is registered under Ontario law as an Ontario FCM; or

·         The clearing member granting access is regulated as a “dealer”, as defined under Ontario law, in its home jurisdiction and the client indirectly accessing the Exchange through the clearing member either meets the definition of a hedger under Ontario law or is able to rely on another exemption from registration under Ontario law. 

A copy of the Order is available on the OSC’s website at: http://www.osc.gov.on.ca/en/Marketplaces_cme-group_index.htm. Please direct questions regarding this bulletin to the following email address: InternationalLegalRegulatoryTeam@cmegroup.com.