[Congressional Record (Bound Edition), Volume 146 (2000), Part 17]
[Extensions of Remarks]
[Page 24718]
[From the U.S. Government Publishing Office, www.gpo.gov]


[[Page 24718]]

              COMMODITY FUTURES MODERNIZATION ACT OF 2000

                                 ______
                                 

                               speech of

                          HON. THOMAS W. EWING

                              of illinois

                    in the house of representatives

                       Thursday, October 19, 2000

  Mr. EWING. Mr. Speaker, the Commodity Exchange Act now bans the offer 
and purchase of single stock futures products in the United States. The 
bill would lift that ban, subject to joint CFTC and SEC regulation, 
effective in one year for public customers and 8 months for 
institutional investors. U.S. investors today also are barred from 
buying single stock futures traded on foreign exchanges. Section 221(j) 
of the bill includes an amendment to the Commodity Exchange Act that 
would immediately allow U.S. investors to buy single stock futures--
even those based on U.S. stocks--that are traded on foreign exchanges. 
This disparate treatment of U.S. and foreign exchanges has been pointed 
out by numerous futures and securities exchanges, and other financial 
industry representatives.
  If U.S. customers are going to be allowed to purchase futures on 
equities traded overseas, the products should be subject to the same 
timing restrictions and oversight that is applicable to domestic 
security futures products. Section 221(i) would allow foreign exchanges 
to offer in the U.S. and U.S. investors to purchase, security futures 
products only under terms and conditions acceptable to the SEC and 
CFTC. Section 22(j) of the bill thus may conflict with Section 221(i) 
of the bill. This issue needs to be addressed before the bill is sent 
to the President.

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