The Commodity Futures Trading Commission’s Division of Market Oversight has issued a no-action letter to Tokyo Financial Exchange (TFX) authorizing TFX members located in the U.S. to install and use TFX’s electronic trading and order matching system (the System). The no-action letter, issued on March 6, confirms that TFX may provide such direct access without first applying to the CFTC for designation as a contract market or registration as a derivatives transaction execution facility.

he no-action letter specifically permits TFX to make the System available to TFX members that are: (i) located in the U.S. and trade on the System for their proprietary accounts; (ii) futures commission merchants (FCMs) or firms exempt from registration pursuant to CFTC Rule 30.10 (Rule 30.10 Firms) that submit orders from or on behalf of U.S. customers directly to the System for execution; (iii) commodity pool operators or commodity trading advisors who submit orders on behalf of U.S. pools they operate or U.S. customer accounts for which they trade provided that an FCM or 30.10 Firm acts as clearing firm and guarantees all such trades; and (iv) FCMs or Rule 30.10 Firms that transmit orders from or on behalf of U.S. customers via an automated routing system for execution on the System.