LIFFE To File Request for No-Action Relief from the U.S. Commodity Futures Trading Commission for placing its screens in the U.S.

Brian Williamson, LIFFE's Chairman announced at the Euromoney Conference on EMU in New York that LIFFE will file a request for No-Action Relief from the U.S. Commodity Futures Trading Commission (CFTC). Brian Williamson said : "Having consulted with many of the most prominent American financial institutions, there is a clear demand to trade LIFFE's dominant euro money market products efficiently and on equal terms with European institutions. The only impediment to providing direct access to LIFFE CONNECT™, LIFFE's state-of-the-art electronic trading system, is delay by the Commodity Futures Trading Commission in granting regulatory approval. In this circumstance, delay is equivalent to discrimination against LIFFE because other foreign futures exchanges have been permitted to place their trading screens in the U.S." This delay has also adversely impacted the ability of LIFFE's U.S. members and affiliates to access LIFFE's markets in a highly cost-efficient manner. While the CFTC has belatedly issued a Proposed Rule on the trading screens issue, promulgation of final rules could still be painfully slow. LIFFE is therefore filing a request for no-action relief tomorrow in order to provide direct access to LIFFE CONNECT™. This gives the CFTC two alternatives to address the discrimination against LIFFE. They can either speed up implementation of the proposed rule or grant interim no-action relief while they refine the proposed rule. Brian Williamson continued: "LIFFE, amongst the World's derivatives exchanges, is respected for its high standards: our regulator, the Financial Services Authority, enjoys an equivalent status with the U.S. regulators and our governments have a close and productive relationship. Given that - and the pressure from major U.S. users who want LIFFE to obtain regulatory approval - it is difficult to envisage how the current discriminatory stance against LIFFE can continue." For this reason, the Exchange is installing a network in the U.S. to support direct access by U.S. institutions. In addition, LIFFE will provide U.S. institutions with connections to its global network infrastructure. In this way, U.S. firms will have the facilities in place to access LIFFE CONNECT™ as soon as the CFTC grants the Exchange the necessary regulatory approval. LIFFE's Chairman concluded: "Once this approval is granted, firms in the U.S. will then enjoy direct access to the world's most liquid euro money markets, in the second largest currency in the world. I hope that the CFTC grants approval without delay."