Trading service authorisation withdrawn

May 18, 2013

The Securities & Futures Commission today issued a formal notice of withdrawal of Mercantile Exchange’s automated trading services authorisation, as its financial resources are insufficient for the proper performance of its functions and obligations.
 
The withdrawal takes immediate effect and prohibits the exchange from continuing to provide the services. 
 
The exchange has notified the commission it has decided to surrender its authorisation to provide the services after considering that its trading revenues have not been sufficient to support its operating expenses.
 
According to the exchange’s market exit plan, positions remaining open as at the close of trading on May 16 will be financially settled at the settlement price and its designated clearinghouse. The exchange is required to contact its members as soon as practicable.
 
The commission will ensure the final settlement process is conducted in an orderly manner.