Euronext Paris SAs request for no-action relief in connection with the offer and sale in the United States of its futures contracts based on the FTSE EPRA/NAREIT Europe Index and the FTSE EPRA/NAREIT Euro Zone Index.

Summary: Euronext Paris SAs request for no-action relief in connection with the offer and sale in the United States of its futures contracts based on the FTSE EPRA/NAREIT Europe Index and the FTSE EPRA/NAREIT Euro Zone Index.

U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW, Washington, DC 20581

Telephone: (202) 418-5120

Facsimile: (202) 418-5524

Office of General Counsel

CFTC Letter No. 08-11

July 10, 2008

No-Action

Office of the General Counsel

Gilles Clerc

Deputy Director, Market Operations

Euronext.liffe

Cannon Bridge House

1 Cousin Lane

London EC4R 3XX United Kingdom

Re:

Euronext Paris SA’s Request for No-Action Relief in Connection with the Offer

and Sale in the United States of its Futures Contracts Based on the FTSE

EPRA/NAREIT Europe Index and the FTSE EPRA/NAREIT Euro Zone Index

Dear Mr. Clerc:

This is in response to your letters, attachments, facsimiles and electronic mail dated from

September 17, 2007 to February 1, 2008, requesting on behalf of Euronext Paris SA (“Euronext

Paris”), that the Office of General Counsel (“Office”) of the Commodity Futures Trading

Commission (“Commission” or "CFTC") issue a “no-action” letter concerning the offer and sale

in the United States of Euronext Paris’s futures contracts based on the FTSE EPRA/NAREIT

Europe Index (“FTSE EPRA/NAREIT Europe”) and the FTSE EPRA/NAREIT Euro Zone Index

(“FTSE EPRA/NAREIT Euro Zone”) (collectively, “Indices”).

We understand the facts to be as follows. Euronext Paris is the French securities and

derivatives exchange ultimately owned by NYSE Euronext, the holding company that became

the parent company of NYSE Group, Inc. and Euronext, N.V

he FTSE EPRA/NAREIT

Europe Index (“FTSE EPRA/NAREIT Europe”) and the FTSE EPRA/NAREIT Euro Zone Index

(“FTSE EPRA/NAREIT Euro Zone”) (collectively, “Indices”).

We understand the facts to be as follows. Euronext Paris is the French securities and

derivatives exchange ultimately owned by NYSE Euronext, the holding company that became

the parent company of NYSE Group, Inc. and Euronext, N.V. and their subsidiaries, on April 4,

2007.1 Euronext Paris is operated by Euronext.liffe, the international derivatives business of

Euronext, N.V., comprising derivatives markets in Amsterdam, Brussels, Lisbon, London and

Paris, which share a common electronic trading platform, LIFFE CONNECT®. Euronext Paris

includes a derivatives segment, the MONEP, upon which the futures contracts on the Indices are

listed and traded. The contracts are cleared by LCH.Clearnet SA, which provides clearing

services for the Euronext.liffe markets. Euronext Paris is subject to regulation by the Autorité

1 This Office recently issued a no-action letter to Euronext Paris confirming that no-action relief

granted to LIFFE Administration and Management, another NYSE Euronext subsidiary, extends

to futures contracts on the FTSEurofirst 80 Index and FTSEurofirst 100 Index traded on

Euronext Paris. See CFTC Staff Letter No. 07-03, [2005-2007 Transfer Binder] Comm. Fut. L.

Rep. (CCH) ¶ 30,457 (Mar. 5, 2007).

fice recently issued a no-action letter to Euronext Paris confirming that no-action relief

granted to LIFFE Administration and Management, another NYSE Euronext subsidiary, extends

to futures contracts on the FTSEurofirst 80 Index and FTSEurofirst 100 Index traded on

Euronext Paris. See CFTC Staff Letter No. 07-03, [2005-2007 Transfer Binder] Comm. Fut. L.

Rep. (CCH) ¶ 30,457 (Mar. 5, 2007).

2

des marchés financiers (“AMF”), an independent public agency in France responsible for

regulating and overseeing French financial markets.2

Both the FTSE EPRA/NAREIT Europe and FTSE EPRA/NAREIT Euro Zone are broad-

based, free-float-market-capitalization-weighted, total-return security indices composed of real

estate securities, either shares of real estate investment trusts (“REITs”) or real estate companies,

that are listed and traded in Europe. As of August 31, 2007, the FTSE EPRA/NAREIT Europe

included 101 stocks from 16 European countries,3 and the FTSE EPRA/NAREIT Euro Zone

included 48 stocks from 10 Euro Zone countries.4 Each of the Indices represents a subset of the

FTSE EPRA/NAREIT Global Real Estate Index Series®, which is designed to represent general

trends in eligible listed real estate securities worldwide. The subject Indices include only real

estate securities that are listed and traded on eligible markets in Europe and the Euro Zone,

respectively.5 The management of FTSE acts as the compiler of the Indices, and is responsible

for their day-to-day management. The FTSE EPRA/NAREIT Europe Index Advisory

Committee acts as an advisory body for the compiler and as a supervisor of the Indices, and

reviews the Indices on a quarterly basis in March, June, September and December.6 Real estate

2 See letter from Gilles Clerc, Deputy Director, Market Operations, Euronext.liffe, to Julian E.

Hammar, Assistant General Counsel, CFTC, dated October 4, 2007, at 2; see generally, NYSE

Euronext Amendment No

and as a supervisor of the Indices, and

reviews the Indices on a quarterly basis in March, June, September and December.6 Real estate

2 See letter from Gilles Clerc, Deputy Director, Market Operations, Euronext.liffe, to Julian E.

Hammar, Assistant General Counsel, CFTC, dated October 4, 2007, at 2; see generally, NYSE

Euronext Amendment No. 1 to Form 10-K, dated May 1, 2007.

3 Countries represented in the FTSE EPRA/NAREIT Europe are Austria, Belgium, Denmark,

Finland, France, Germany, Greece, Italy, Luxembourg, the Netherlands, Norway, Poland, Spain,

Sweden, Switzerland and the United Kingdom. See FTSE EPRA/NAREIT Europe Index

Factsheet, available at:

<http://www.ftse.com/Indices/FTSE_EPRA_NAREIT_Global_Real_Estate_Index_Series/Down

loads/EPRA_NAREIT_Europe_Index_Factsheet.pdf>.

4 Countries represented in the FTSE EPRA/NAREIT Euro Zone are Austria, Belgium, Finland,

France, Germany, Greece, Italy, Luxembourg, the Netherlands, and Spain. See FTSE

EPRA/NAREIT Euro Zone Index Factsheet, available at:

<http://www.ftse.com/Indices/FTSE_EPRA_NAREIT_Global_Real_Estate_Index_Series/Down

loads/EPRA_NAREIT_Eurozone_Index_Factsheet.pdf>

5 To be included, a company must have derived in the previous full financial year at least 75

percent of its earnings before interest, taxes, depreciation and amortization from relevant real

estate activities in Europe. An eligible REIT must be a closed-end company listed on an official

stock exchange. See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, Attachment

2, Ground Rules for the Management of the FTSE EPRA/NAREIT Global Real Estate Index

Series®, version 2.8, July 2007, Ground Rule 5.8.

6 Stocks eligible for inclusion in the Indices are subject to three “screens”: size, liquidity and

free float

REIT must be a closed-end company listed on an official

stock exchange. See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, Attachment

2, Ground Rules for the Management of the FTSE EPRA/NAREIT Global Real Estate Index

Series®, version 2.8, July 2007, Ground Rule 5.8.

6 Stocks eligible for inclusion in the Indices are subject to three “screens”: size, liquidity and

free float. A stock is eligible for inclusion in the Indices if its investable market capitalization is

equal to or greater than 0.10% of the regional index market capitalization, and it has a turnover

of at least 0.05% of the shares in issue based on its median daily trade per month. An existing

constituent will be excluded from the Indices if its investable market capitalization is less than

3

stocks can be added to or deleted from the Indices outside of the quarterly review in certain

circumstances.7

Based on data supplied by Euronext Paris, the total adjusted market capitalization of the

FTSE EPRA/NAREIT Europe was approximately U.S. $179 billion, and of the FTSE

EPRA/NAREIT Euro Zone was approximately U.S. $82 billion, as of August 31, 2007.8 The

largest single security by weight represented 10.93% of the FTSE EPRA/NAREIT Europe and

23.82% of the FTSE EPRA/NAREIT Euro Zone. The five most heavily-weighted securities

represented 37.28% of the FTSE EPRA/NAREIT Europe and 47.58% of the FTSE

EPRA/NAREIT Euro Zone. The stocks comprising the lowest 25% of the FTSE

EPRA/NAREIT Europe and FTSE EPRA/NAREIT Euro Zone each had six-month aggregate

dollar values of average daily trading volume in excess of U.S. $30 million: approximately U.S.

$236 million and U.S. $96 million, respectively, for the 6-month period ending August 31,

2007.9 The Indices are calculated in real time and disseminated every 15 seconds from 8:00 a.m.

to 4:30 p.m. (U.K. time) to various information vendors, including Bloomberg and Reuters.10

Euronext Paris’s futures contracts on the Indices began trading on October 1, 2007

0 million: approximately U.S.

$236 million and U.S. $96 million, respectively, for the 6-month period ending August 31,

2007.9 The Indices are calculated in real time and disseminated every 15 seconds from 8:00 a.m.

to 4:30 p.m. (U.K. time) to various information vendors, including Bloomberg and Reuters.10

Euronext Paris’s futures contracts on the Indices began trading on October 1, 2007. With

the exception of the index underlying each contract, the terms and conditions of the contracts are

identical. Both contracts provide for cash settlement. Prices are quoted in index points, with

each index point equal to 10 euros per contract. The minimum price fluctuation is half of one

index point, equal to 5 euros per contract. Euronext Paris lists for trading the three nearest

months of the March quarterly cycle. The last trading day of the contracts is the third Friday of

0.05% of the regional index market capitalization, and it has a turnover less than 0.04% of the

shares in issue based on its median daily trade per month. The weighting of a component

security is affected by free float restrictions, such that the market capitalization for each security

may be reduced depending on the proportion of the total number of shares that is restricted. Free

float restrictions include: trade investments in an index constituent either by another constituent

(i.e., cross-holdings) or by a non-constituent company or entity; significant long-term holdings

by founders, their families and/or directors; employee share plans (if restricted); government

holdings; foreign ownership limits; and portfolio investments subject to a lock-in clause, for the

duration of that clause. See id. Ground Rule 6

nts in an index constituent either by another constituent

(i.e., cross-holdings) or by a non-constituent company or entity; significant long-term holdings

by founders, their families and/or directors; employee share plans (if restricted); government

holdings; foreign ownership limits; and portfolio investments subject to a lock-in clause, for the

duration of that clause. See id. Ground Rule 6.

7 These circumstances include the case of a new issue, delisting, bankruptcy, insolvency,

liquidation, merger, takeover, spin-off, or suspension of dealing. See id. Ground Rule 7.

8 See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, at Attachment 1

(spreadsheet). Both Indices are denominated in euros (“€”). The exchange rate on August 31,

2007, was €/U.S.$ 1.3633.

9 Id. at 1-2 and Attachment 1 (spreadsheet).

10 See id., Attachment 2, Appendix 5, and letter from Giles Clerc, Deputy Director, Market

Operations, Euronext.liffe to Julian E. Hammar, Assistant General Counsel, CFTC, dated

December 11, 2007, at 1.

4

the expiration month (in the event that the third Friday is not a business day, the last trading day

is the last business day preceding the third Friday). Cash settlement occurs on the first business

day after the last trading day, based on the “Exchange Delivery Settlement Price” (“EDSP”).

The EDSPs for the contracts are calculated based on the closing level of the relevant index on the

last trading day.11

The Commodity Exchange Act (“CEA”),12 as amended by the Commodity Futures

Modernization Act of 2000 (“CFMA”),13 provides that the offer or sale in the U.S

curs on the first business

day after the last trading day, based on the “Exchange Delivery Settlement Price” (“EDSP”).

The EDSPs for the contracts are calculated based on the closing level of the relevant index on the

last trading day.11

The Commodity Exchange Act (“CEA”),12 as amended by the Commodity Futures

Modernization Act of 2000 (“CFMA”),13 provides that the offer or sale in the U.S. of futures

contracts based on a group or index of securities, including those contracts traded on or subject

to the rules of a foreign board of trade, is subject to the Commission's exclusive jurisdiction,14

with the exception of security futures products,15 over which the Commission shares jurisdiction

with the Securities and Exchange Commission (“SEC”).16 Thus, the Commission’s jurisdiction

remains exclusive with regard to futures contracts on a group or index of securities that are

broad-based pursuant to CEA Section 1a(25).17

CEA Section 2(a)(1)(C)(iv) generally prohibits any person from offering or selling a

futures contract based on a security index in the U.S., except as permitted under CEA Section

2(a)(1)(C)(ii) or CEA Section 2(a)(1)(D).18 By its terms, CEA Section 2(a)(1)(C)(iv) applies to

futures contracts on security indices traded on both domestic and foreign boards of trade. CEA

Section 2(a)(1)(C)(ii) sets forth three criteria to govern the trading of futures contracts on a group

11 See letter from Gilles Clerc, Deputy Director, Market Operations, Euronext.liffe, to Julian E.

Hammar, Assistant General Counsel, CFTC, dated September 17, 2007, at 6. A circuit breaker

may be activated for each contract if a market imbalance leads to the suspension of trading in a

number of stocks that together represent more than 75% of the capitalization of the relevant

index. A complete list of contract specifications for both contracts is available on Euronext’s

website, <www.euronext.com>.

12 7 U.S.C. § 1 et seq.

13 Appendix E of Pub. L

, at 6. A circuit breaker

may be activated for each contract if a market imbalance leads to the suspension of trading in a

number of stocks that together represent more than 75% of the capitalization of the relevant

index. A complete list of contract specifications for both contracts is available on Euronext’s

website, <www.euronext.com>.

12 7 U.S.C. § 1 et seq.

13 Appendix E of Pub. L. No. 106-554, 114 Stat. 2763 (2000).

14 See CEA Section 2(a)(1)(C)(ii).

15 A security futures product is defined as a security future or any put, call, straddle, option, or

privilege on any security future. See CEA Section 1a(32). A security future is defined as a

contract of sale for future delivery of a single security or of a narrow-based security index,

including any interest therein or based on the value thereof, with certain exceptions. See CEA

Section 1a(31).

16 See CEA Section 2(a)(1)(D).

17 See CEA Section 2(a)(1)(C)(ii).

18 CEA Section 2(a)(1)(D) governs the offer and sale of security futures products.

5

or index of securities on designated contract markets and registered derivatives transaction

execution facilities (“DTEFs”):

(1)

the contract must provide for cash settlement;

(2)

the contract must not be readily susceptible to manipulation nor to being used to

manipulate any underlying security; and

(3)

the group or index of securities must not constitute a narrow-based security

index.19

While Section 2(a)(1)(C)(ii) provides that no contract market or DTEF may trade a

security index futures contract unless it meets the three criteria noted above, it does not explicitly

address the standards to be applied to a foreign security index futures contract traded on a foreign

board of trade. This Office has applied those same three criteria in evaluating requests by

foreign boards of trade to allow the offer and sale within the U.S

tract market or DTEF may trade a

security index futures contract unless it meets the three criteria noted above, it does not explicitly

address the standards to be applied to a foreign security index futures contract traded on a foreign

board of trade. This Office has applied those same three criteria in evaluating requests by

foreign boards of trade to allow the offer and sale within the U.S. of their foreign security index

futures contracts when those foreign boards of trade do not seek designation as a contract market

or registration as a DTEF to trade those products.20

Accordingly, Commission staff has examined the FTSE EPRA/NAREIT Europe and the

FTSE EPRA/NAREIT Euro Zone, and Euronext Paris’s respective futures contracts based

thereon, to determine whether the Indices and the futures contracts meet the requirements

19 The first two criteria under CEA Section 2(a)(1)(C)(ii) were unchanged by the CFMA. With

regard to the third criterion, an index is a “narrow-based security index” under both the CEA and

the Securities Exchange Act of 1934 (“Exchange Act”), 15 U.S.C. § 78a et seq., if it has any one

of the following four characteristics: (1) it has nine or fewer component securities; (2) any one

of its component securities comprises more than 30% of its weighting; (3) the five highest

weighted component securities in the aggregate comprise more than 60% of the index’s

weighting; or (4) the lowest weighted component securities comprising, in the aggregate, 25% of

the index’s weighting, have an aggregate dollar value of average daily trading volume of less

than $50 million (or in the case of an index with 15 or more component securities, $30 million).

See CEA Section 1a(25)(A)(i)-(iv); Exchange Act Section 3(a)(55)(B)(i)-(iv). Thus, an index

that does not have any of these elements is not a narrow-based security index for purposes of

CEA Section 2(a)(1)(C)(ii). See also CEA Section 1a(25)(B); Exchange Act Section

3(a)(55)(C)

g volume of less

than $50 million (or in the case of an index with 15 or more component securities, $30 million).

See CEA Section 1a(25)(A)(i)-(iv); Exchange Act Section 3(a)(55)(B)(i)-(iv). Thus, an index

that does not have any of these elements is not a narrow-based security index for purposes of

CEA Section 2(a)(1)(C)(ii). See also CEA Section 1a(25)(B); Exchange Act Section

3(a)(55)(C).

20 With regard to the third criterion, the CFTC and SEC jointly promulgated Rule 41.13 under

the CEA and Rule 3a55-3 under the Exchange Act, governing security index futures contracts

traded on foreign boards of trade. These rules provide that “[w]hen a contract of sale for future

delivery on a security index is traded on or subject to the rules of a foreign board of trade, such

index shall not be a narrow-based security index if it would not be a narrow-based security index

if a futures contract on such index were traded on a designated contract market or registered

derivatives transaction execution facility.” CFTC Rule 41.13, 17 C.F.R. § 41.13; Exchange Act

Rule 3a55-3, 17 C.F.R. § 240.3a55-3.

6

enumerated in CEA Section 2(a)(1)(C)(ii). Based on the information noted herein and as set

forth in the letter, attachments, facsimiles and electronic mail cited above, we have determined

that the Indices, and Euronext Paris’s respective futures contracts based thereon, conform to

these requirements.21

In determining whether a foreign futures contract based on a foreign security index is not

readily susceptible to manipulation or being used to manipulate any underlying security, one

preliminary consideration is the requesting exchange’s ability to access information regarding

the securities underlying the index. As noted above, all of the component securities in the

Indices are listed on European exchanges. Euronext-listed securities account for approximately

29% of the market capitalization of the FTSE EPRA/NAREIT Europe and 61% of the FTSE

EPRA/NAREIT Euro Zone

, one

preliminary consideration is the requesting exchange’s ability to access information regarding

the securities underlying the index. As noted above, all of the component securities in the

Indices are listed on European exchanges. Euronext-listed securities account for approximately

29% of the market capitalization of the FTSE EPRA/NAREIT Europe and 61% of the FTSE

EPRA/NAREIT Euro Zone. You represent that Euronext cash market operations can share

surveillance information directly with Euronext Paris and Euronext.liffe for these securities.22

For those component securities not listed on Euronext markets, surveillance information

may be obtained directly from the relevant exchanges upon request, or indirectly through the

AMF, which has information-sharing arrangements with the regulators of all exchanges

represented in the Indices. Specifically, you state that under the Markets in Financial

Instruments Directive (“MiFID”) of the European Union, there is a duty for European Union

country regulators to cooperate, governed by Articles 56 and 59 of the MiFID directive, and the

AMF has been appointed as the contact point in France for such information-sharing requests. In

addition, the AMF and all the other regulators of the countries represented in the Indices, with

the exception of Switzerland, are signatories to the Committee of European Securities

Regulators’ Memorandum of Understanding (known as the FESCO MOU), through which

surveillance information may be shared. The AMF also has entered into a bilateral cooperation

agreement with Switzerland.23 Thus, Euronext Paris should have access to information

necessary to detect and deter manipulation

with

the exception of Switzerland, are signatories to the Committee of European Securities

Regulators’ Memorandum of Understanding (known as the FESCO MOU), through which

surveillance information may be shared. The AMF also has entered into a bilateral cooperation

agreement with Switzerland.23 Thus, Euronext Paris should have access to information

necessary to detect and deter manipulation. In the event that Euronext Paris is unable to obtain

access to adequate surveillance data in this regard, or is unable to share such data with the CFTC,

this Office reserves the right to reconsider the position taken herein.24

21 In making this determination, Commission staff has concluded that the FTSE EPRA/NAREIT

Europe Index and the FTSE EPRA/NAREIT Euro Zone Index do not have any of the elements of

a narrow-based security index as enumerated in CEA Section 1a(25)(A). Accordingly, the

Indices would not be narrow-based security indices if traded on a designated contract market or

DTEF.

22 See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, at 2.

23 See letter from Mr. Clerc to Mr. Hammar, dated December 11, 2007, at 2.

24 Euronext Paris represents that it is willing and able to share information in relation to its

contracts on the Indices under the terms and conditions defined in the Foreign Trading System

No-Action Relief granted to Parisbourse SBF SA, the predecessor of Euronext Paris, by CFTC

Staff in 1999. See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, at 2; CFTC

Staff Letter No. 99-33 [1998-1999 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 27,746

(August 10, 1999). Under that arrangement, information which is not confidential will be

defined in the Foreign Trading System

No-Action Relief granted to Parisbourse SBF SA, the predecessor of Euronext Paris, by CFTC

Staff in 1999. See letter from Mr. Clerc to Mr. Hammar, dated October 4, 2007, at 2; CFTC

Staff Letter No. 99-33 [1998-1999 Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 27,746

(August 10, 1999). Under that arrangement, information which is not confidential will be

7

In light of the foregoing, this Office will not recommend any enforcement action to the

Commission based on Sections 2(a)(1)(C)(iv), 4(a), or 12(e) of the CEA, as amended, if

Euronext Paris’s futures contracts based on the FTSE EPRA/NAREIT Europe and FTSE

EPRA/NAREIT Euro Zone are offered or sold in the U.S. Because this position is based upon

facts and representations contained in the letters, attachments, facsimiles and electronic mail

cited above, it should be noted that any different, omitted or changed facts or conditions might

require a different conclusion. This position also is contingent on the continued compliance by

Euronext Paris with all regulatory requirements imposed by the AMF, and the applicable laws

and regulations of France. In addition, this position may be affected by any rules that the

Commission may adopt regarding futures contracts based on non-narrow-based security indices.

Euronext Paris also has requested that, upon issuance of the no-action relief granted

herein, it be permitted to make its futures contracts based on the Indices available for trading

through its electronic terminals in the U.S

rance. In addition, this position may be affected by any rules that the

Commission may adopt regarding futures contracts based on non-narrow-based security indices.

Euronext Paris also has requested that, upon issuance of the no-action relief granted

herein, it be permitted to make its futures contracts based on the Indices available for trading

through its electronic terminals in the U.S. in accordance with the terms and conditions of the

foreign terminal no-action letter dated August 10, 1999, as amended (“August 10, 1999 letter”),

issued by Commission staff to Parisbourse SBF SA, the predecessor to Euronext Paris.25 In this

regard, Euronext Paris has certified that it is in compliance with the terms and conditions of the

August 10, 1999 letter and that the contracts on the Indices will be traded in accordance with the

terms and conditions of the August 10, 1999 letter.26 We have consulted with the Commission’s

Division of Market Oversight (“Division”), which is the Division in the Commission that

administers foreign terminal no-action letters. The Division has concluded that allowing

Euronext Paris to make its futures contracts on the Indices available for trading pursuant to the

August 10, 1999 letter would not be contrary to the public interest. Accordingly, on behalf of the

Division, this Office hereby confirms that the no-action relief granted to Euronext Paris in the

August 10, 1999 letter extends to Euronext Paris’s futures contracts based on the Indices.

provided directly to the CFTC by Euronext Paris, whereas any confidential information will be

provided to the CFTC via the Memorandum of Understanding dated June 6, 1990, between the

CFTC and the Commission des Opérations de Bourse (“COB”), now the AMF

provided directly to the CFTC by Euronext Paris, whereas any confidential information will be

provided to the CFTC via the Memorandum of Understanding dated June 6, 1990, between the

CFTC and the Commission des Opérations de Bourse (“COB”), now the AMF. Euronext Paris

also is a signatory to the International Information Sharing Memorandum of Understanding and

Agreement signed on March 15, 1996, at Boca Raton, Florida. In addition to the bilateral

information sharing arrangement between the Commission and the AMF, both the Commission

and the AMF are signatories to the Multilateral Memorandum of Understanding Concerning

Consultation and Cooperation and the Exchange of Information of the International Organization

of Securities Commissions (“IOSCO MOU”). The AMF, as successor to the COB, also is a

signatory to the Declaration on Cooperation and Supervision of International Futures Markets

and Clearing Organizations, signed on March 15, 1996, at Boca Raton, Florida.

25 See supra note 24, CFTC Staff Letter No. 99-33.

26 See letter from Mr. Clerc to Mr. Hammar, dated September 17, 2007, at 2.

8

The offer and sale in the U.S. of Euronext Paris’s futures contracts on the Indices is, of

course, subject to Part 30 of the Commission’s regulations, which governs the offer and sale of

foreign futures and foreign option contracts in the U.S.27

Sincerely,

Terry S. Arbit

General Counsel

27 See 17 C.F.R. Part 30.