On May 11, the Division of Market Oversight of the Commodity Futures Trading Commission issued a no-action letter to International Maritime Exchange ASA (Imarex), which allows Imarex to permit direct electronic access to its trading system to Imarex trading members in the United States without Imarex registering as a designated contract market or derivative transaction execution facility. Imarex is a Norway-based exchange which lists cash-settled derivatives related to prices for freight and bunker fuel, and has operated as an exempt commercial market since 2001.
Pursuant to the no-action relief, Imarex may make its trading system available to (1) eligible contract participants (ECPs), as defined in Section 1a(12) of the Commodity Exchange Act, who are trading for their own account, (2) registered futures commission merchants (FCMs) and firms exempt from FCM registration pursuant to CFTC Rule 30.10 (Rule 30.10 firms) submitting orders for U.S. customers that qualify as ECPs (including orders received for transmission through automated order routing systems), and (3) registered and exempt commodity pool operators and commodity trading advisors submitting discretionary orders on behalf of pools or clients that qualify as ECPs (provided that an FCM or Rule 30.10 firm clears and guarantees such trades). A copy of the Imarex no-action letter is available here.
Please see "SEC, CFTC Announce Establishment of Joint Advisory Committee on Emerging Regulatory Issues" in SEC/Corporate above.