[Federal Register Volume 59, Number 85 (Wednesday, May 4, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-10612]


[[Page Unknown]]

[Federal Register: May 4, 1994]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 30

 

Foreign Option Transactions

AGENCY: Commodity Futures Trading Commission.

ACTION: Order.

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SUMMARY: The Commodity Futures Trading Commission (Commission) is 
issuing this Order pursuant to which option contracts on a spot foreign 
exchange operation between the United States Dollar and the Deutsche 
Mark (USD/DM) and United States Dollar and the French Franc (USD/FRF) 
traded on the Marche a Terme International de France (MATIF) may be 
offered or sold to persons located in the United States. This Order is 
issued pursuant to: (1) Commission rule 30.3(a), 17 CFR 30.3(a), which 
makes it unlawful for any person to engage in the offer or sale of a 
foreign option product until the Commission, by order, authorizes such 
foreign option to be offered or sold in the United States; and (2) the 
procedures established in the Commission's Order (Mutual Recognition 
Memorandum of Understanding (MRMOU) with the French Commission des 
Operations de Bourse).

EFFECTIVE DATE: June 3, 1994.

FOR FURTHER INFORMATION CONTACT: Jane C. Kang, Esq., Division of 
Trading and Markets, Commodity Futures Trading Commission, 2033 K 
Street NW., Washington, DC 20581. Telephone: (202) 254-8955.

SUPPLEMENTARY INFORMATION: The Commission has issued the following 
Order:

Order Pursuant to the Mutual Recognition Memorandum of 
Understanding With the French Commission des Operations de Bourse 
and Rule 30.3(a) Permitting Option Contracts on the USD/DM and USD/
FRF Traded on the Marche a Terme International de France To Be 
Offered or Sold in the United States Thirty Days After Publication 
of This Notice in the Federal Register

    By Order issued on December 17, 1991 (Initial Order),1 the 
Commission authorized, pursuant to the Mutual Recognition Memorandum 
of Understanding (MRMOU)2 and Commission rule 30.3(a),3 
certain option products traded on the MATIF to be offered or sold in 
the United States.
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    \1\See 56 FR 66345 (December 23, 1991).
    \2\See 55 FR 23902 (June 13, 1990). Among other things, this 
arrangement provides a mechanism pursuant to which certain option 
products traded on the Marche a Terme International de France 
(MATIF) may be offered or sold to customers resident in the United 
States thirty days after publication in the Federal Register of a 
notice specifying the particular option contracts to be offered or 
sold.
    \3\Commission rule 30.3(a), 17 CFR 30.3(a), makes it unlawful 
for any person to engage in the offer or sale of a foreign option 
product until the Commission, by order, authorizes such foreign 
option to be offered or sold.
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    By letter dated April 8, 1994, MATIF notified the Commission 
that on May 20, 1994 it would be introducing option contracts based 
on the USD/DM and USD/FRF. By letter dated April 19, 1994, the 
Commission des Operations de Bourse requested that the Commission 
supplement its Initial Order and subsequent Order4 authorizing 
Options on the Notional Bond, the 3-month PIBOR, the 3-month EURODEM 
and the Long-Term ECU Bond Futures Contracts by also authorizing the 
MATIF's Option Contracts on the USD/DM and USD/FRF to be offered or 
sold in the United States. Based upon the foregoing, and pursuant to 
the terms of the MRMOU, the Commission hereby publishes this Order 
in the Federal Register pursuant to which the particular option 
contract specified herein may be offered or sold thirty days after 
the publication of this Order.
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    \4\See 57 FR 10987 (April 1, 1992).
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    Accordingly, pursuant to Commission rule 30.3(a), 17 CFR 
30.3(a), and Article II, paragraph 6(b) and Article V, paragraph 6 
of the MRMOU signed by the Commission on June 6, 1990 (55 FR 23902 
(June 13, 1990)), and subject to the terms and conditions specified 
in the MRMOU, the Commission hereby issues this Order pursuant to 
which option contracts based on the USD/DM and USD/FRF traded on the 
MATIF may be offered or sold to persons located in the United States 
thirty days after publication of this Order in the Federal Register.

USD/DM Option Specifications

Exercise Style--European option
Underlying Inst--USD/DM spot transaction
Contract Size--USD 100 000
Strike Prices--In DM, with two decimals. Exercise price intervals: 2 
pfennigs. (1.60--1.62 . . .) At least eleven closest-to-the-money (5 
on each side).
Premium Quotation--Premium in % of the USD nominal, with two 
decimals (Ex: 2.61% stands for 100 000 x 2.61/100=USD 2 610). In 
specific cases, premium with 3 decimals
Tick Size--0.01% i.e. USD 10
Expiration Months--Three monthly + three quarterly maturities from 
March, June, September, December
Expiration Date--Thursday following third Wednesday of expiration 
month at 9:00 am New York time.
First Trading Day--First business day following an expiration date
Exercise--After settlement of a spot-fixing on the expiration date, 
automatic exercise of in-the-money options. Exercise: exchange of 
underlying currencies.
Trading Hours--Open outcry: 9:15 am--5 pm Paris time. THS (after 
hours trading): 5 pm--9:15 am

USD/FRF Options Specifications

Exercise Style--European option
Underlying Inst--USD/FRF spot transaction
Contract Size--USD 100 000
Strike Prices--In FRF, with two decimals. Exercise price intervals: 
5 centimes. (5.60--5.65 . . .) At least eleven closest-to-the-money 
(5 on each side)
Premium Quotation--Premium % of the USD nominal, with two decimals. 
(Ex: 0.45% stands for 100 000 x 0.45/100=USD 450) In specific cases, 
premium with 3 decimals
Tick Size--0.01% i.e. USD 10
Expiration Months--Three monthly + three quarterly maturities from 
March, June, September, December
Expiration Date--Thursday following third Wednesday of expiration 
month at 9 am New York time.
First Trading Day--First business day following an expiration date
Exercise--After settlement of a spot-fixing on the expiration date, 
automatic exercise of in-the-money options. Exercise: exchange of 
underlying currencies
Trading Hours--Open outcry: 9:15 am--5 pm Paris time. THS (after 
hours trading): 5 pm--9:15 am

Lists of Subjects in 17 CFR Part 30

    Commodity futures, Commodity options, Foreign transactions.

    Accordingly, 17 CFR part 30 is amended as set forth below:

PART 30--FOREIGN FUTURES AND FOREIGN OPTIONS TRANSACTIONS

    1. The authority citation for part 30 continues to read as follows:

    Authority: Secs. 2(a)(1)(A), 4, 4c, and 8a of the Commodity 
Exchange Act, 7 U.S.C. 2, 6, 6c and 12a.

    2. Appendix B to part 30 is amended by adding the following entry 
after the existing entries for ``Marche a Terme International de 
France'' to read as follows:

Appendix B to Part 30.--Option Contracts Permitted To Be Offered or Sold
                  in the U.S. Pursuant to Sec. 30.3(a)                  
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      Exchange             Type of contract        FR date and citation 
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                              * * * * * * *                             
Marche a Terme        Option Contracts on        May 5, 1994;           
 International de      United States Dollar/      ______FR______.       
 France.               Deutsche Mark and United                         
                       States Dollar/French                             
                       Franc.                                           
                                                                        
                              * * * * * * *                             
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    Issued in Washington, DC on April 26, 1994.
Jean A. Webb,
Secretary to the Commission.
[FR Doc. 94-10612 Filed 5-3-94; 8:45 am]
BILLING CODE 6351-01-P