Osaka Securities Exchange Co., Ltd. (OSE) is pleased to announce that it has received a direct access no-action letter from the U.S. Commodity Futures Trading Commission (“CFTC”), as of June 1, 2011 (the applicable contracts: stock index futures contracts).
OSE introduced the Remote Transaction Participant System so that a foreign securities firm can directly access the OSE markets as a Transaction Participant without having a branch office, etc. in Japan. The issuance of this direct access no-action letter confirms that the CFTC will not take enforcement action against OSE or its Transaction
Participants located in the U.S. that have been authorized to directly access the OSE’s derivatives trading system to trade stock index futures as OSE’s Remote Transaction Participants, if OSE does not seek designation as a contract market or as a derivatives transaction execution facility pursuant to Sections 5 or 5a, respectively, of the U.S. Commodity Exchange Act.
Through soliciting U.S. securities firms to become Remote Transaction Participants and developing a process for enabling securities firms located in other countries to directly access the OSE markets, OSE aims to further increase liquidity and improve the international competitiveness of the OSE markets.