Commodity Futures Trading Commission (CFTC) is sticking to
its policy of using no-action letters on a case-by-case basis
for foreign boards of trade to the annoyance of New York
Mercantile Exchange (Nymex), which claimed it had suffered
because of the policy which had allowed ICE Futures in London
to gain a competitive advantage.
CFTC had been discussing the issue for the past several
months, with heavy lobbying for change to the policy from some
exchanges. Nymex officials argued that the no-action letter
process had given ICE Futures in London the opportunity to
capture energy marketshare. That led to some speculation that
CFTC would try and extend its regulatory oversight of foreign
boards of trade through the no-action process. Customers on ICE
Futures whave not been subject to position limits on large
orders, limits which Nymex customers must comply with.
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