NYMEX recently expressed to the CFTC its concerns about the plans of ICE to list the domestic West Texas Intermediate (WTI) crude oil futures contract on its wholly-owned, foreign futures exchange, pursuant to a CFTC staff no-action letter permitting the trading of foreign futures on foreign terminals placed in the United States. NYMEX raised significant regulatory and policy issues, including the use of the foreign terminals no-action relief to list a contract with substantial U.S. participation for trading electronically in the U.S. without CFTC designation as a contract market, and requested that the CFTC carefully consider the implications of the ICE proposal.
NYMEX President James E. Newsome said, "CFTC oversight of U.S. futures markets must not be circumvented through a no-action process that was intended to, and has effectively to date provided access for U.S. customers to foreign futures products. We are gratified with the CFTC's decision to further investigate the situation."
