Trading and Clearing Link Between the Chicago Board of Trade and the London International Financial Futures and Options Exchange

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The Chicago Board of Trade (``CBT'' or ``Exchange'') has submitted a proposal to implement a trading and clearing link (``Link'') with the London International Financial Futures and Options Exchange (``LIFFE''). Pursuant to the Link, CBT and LIFFE would trade their major financial futures and options contracts on each other's floors by open outcry. Effectively, the link would permit ``cross listing'' of CBT and LIFFE futures contracts. Market users could establish a position in a LIFFE-designated contract in Chicago which would be transferred to The London Clearing House (``LCH'') the same day and be recognized as a LIFFE position. Market users could also establish a position in a CBT-designated contract in London which would be transferred to the Board of Trade Clearing Corporation (``BOTCC'') the same day and be recognized as a CBT position. Conceptually, a CBT- designated contract would be executed on LIFFE, initially matched by LCH, and then transferred to BOTCC for clearing and vice-versa. All contracts traded through the Link would be completely fungible. Acting pursuant to the authority delegated by Commission Regulation 140.96, the Division of Trading and Markets has determ