June 25, 2003

Mr. Michael Peifer
Silver Young Trading LLC
225 W. Hubbard, Suite 600
Chicago, IL 60610

Re: Silver Young Trading LLC's Request for Interpretive Guidance Regarding Section 15(b)(12)(A) of the Securities Exchange Act of 1934

Dear Mr. Peifer:

In your letter dated March 31, 2003, you request interpretive guidance regarding the application of Section 15(b)(12)(A) of the Securities Exchange Act of 1934 to Silver Young Trading's intent to engage in broker-dealer activities with respect to security futures products. Silver Young Trading would utilize the exchange membership of one of its partners, who is a registered floor trader. Based on the facts set forth in your letter, Silver Young Trading cannot rely on Section 15(b)(12)(A) for this purpose. In reaching this conclusion, we note in particular that the exemption provided by Section 15(b)(12)(A) is only available to "natural persons." Because Silver Young Trading is a limited liability company, it is not a natural person and therefore does not qualify for the statutory exemption.

Incoming Letter:

Michael Peifer
Silver Young Trading LLC
225 W. Hubbard, Suite 600
Chicago, IL 60610

March 31, 2003

Director
Division of Market Regulation
450 5th Street Northwest
Washington, DC 20549

Dear Sir or Madam:

I am writing to you in an attempt to determine if the company, Silver Young Trading LLC, qualifies for the exemption described in Section 203 of the Commodity Futures Modernization Act (CFMA).

In summary, three individuals own Silver Young Trading. Two of the three owners are members of the Chicago Mercantile Exchange (CME) and, therefore, the new stock futures exchange, OneChicago. One of the two members is a floor trader registered with the National Futures Association (NFA). The owners and Silver Young Trading are not registered broker/dealers.

It is our intent to register Silver Young Trading with OneChicago as a market maker under the exemption described in Section 203 of the CMFA using the owner's individual exchange membership and floor trader registration. We are uncertain if this exemption would be valid given the Section 203 reference to a "natural person" and our use of an individual membership within the framework of a corporate entity.

Please review Section 203 and the manner in which we wish to apply it. If possible, we wish to receive your interpretation in writing at the earliest convenience. If you should require additional information, I may be contacted at 312 751-4000 x240. Thank you for your attention in this matter.

Sincerely,

Michael Peifer
Silver Young Trading LLC

http://www.sec.gov/divisions/marketreg/mr-noaction/silveryoung062503.htm