[Federal Register Volume 60, Number 127 (Monday, July 3, 1995)]
[Rules and Regulations]
[Pages 34458-34459]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-16230]
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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 Great Britain Pound and the Deutsche
Mark (GBP/DEM) and the Deutsche Mark and the Italian Lira (DEM/ITL)
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 issued on June 6,
1990, 55 FR 23902 (June 13, 1990) (Mutual Recognition Memorandum of
Understanding (MRMOU) with the French Commission des Operations de
Bourse).
EFFECTIVE DATE: August 2, 1995.
FOR FURTHER INFORMATION CONTACT: Francey L. Youngberg, Esq., Division
of Trading and Markets, Commodity Futures Trading Commission, 2033 K
Street NW., Washington, D.C. 20581. Telephone: (202) 254-8955
SUPPLEMENTARY INFORMATION: The Commission has issued the following
Order:
UNITED STATES OF AMERICA
BEFORE THE
COMMODITY FUTURES TRADING COMMISSION
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 GBP/DEM and DEM/
ITL Traded on the Marche a Terme International de France (MATIF) To
Be Offered or Sold to Persons Located in the United States Thirty
Days After Publication of This Notice in the Federal Register Absent
Further Notice
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.
\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 in the United States.
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By letter dated May 17, 1995, MATIF notified the Commission that on
May 22, 1995 it would be introducing option contracts based on the GBP/
DEM and DEM/ITL and requested that the Commission supplement its
Initial Order authorizing the offer and sale in the United States of
Options on the Notional Bond, the 3-month PIBOR, the 3-month EURODEM
Futures Contracts; a Supplemental Order, 57 FR 10987 (April 1, 1992),
authorizing the offer and sale in the United States of Options on the
Long-Term ECU Bond Futures Contracts; and a Supplemental Order, 59 FR
22971 (May 4, 1994), authorizing the offer and sale in the United
States of Options on the USD/DM and USD/FRF by also authorizing the
MATIF's Option Contracts on the GBP/DEM and DEM/ITL to be offered or
sold to persons located in the United States.4 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 contracts specified herein may be offered or sold
thirty days after the publication of this Order.
\4\ See letter dated May 17, 1995 from Patrick Stephan, MATIF,
to Jane C. Kang, Commission and letter dated May 23, 1995 from
Frederic Perier, Commission des Operations de Bourse, to Andrea M.
Corcoran, Commission.
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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 GBP/DEM and DEM/ITL 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, unless prior to that
date the Commission receives any comments which may result in a
determination to delay the effective date of the Order pending review
of such comments. Under such circumstances the Commission will provide
notice.
Contract Specifications
GBP/DEM Option (SDM)
Type
European style
Underlying Interest
Spot currency transaction GBP against DEM
Contract Size
GBP 50,000
[[Page 34459]]
Strike Price
Expressed in DEM, with 2 decimals.
Strike price intervals: 2 Pfennigs (2.32-2.34)
At least 11 closest-to-the-money (5 on each side)
Quotation
Premium in % of the GBP nominal, with 2 decimals.
Ex: 0.45% stands for 0.45 x 500 = GBP 225
In specific cases, premium with 3 decimals
Tick
Size: 0.01%
Value: 0.01 x 500 = GBP 5
Expiration
3 monthly + 3 quarterly expirations from March (H), June (M),
September (U), December (Z)
Last Trading Day
Thursday following the 3rd 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 to 5:00 pm (Paris time)
THS (after hours trading): 5:00 pm to 9:15 am
DEM/ITL Option (MLI)
Type
European style
Underlying Interest
Spot currency transaction DEM against ITL
Contract Size
DEM 100,000
Strike Price
Expressed in ITL, without decimal.
Strike price intervals: Liras 10 (1070-1080)
At least 11 closest-to-the-money (5 on each side)
Quotation
Premium in % of the DEM nominal, with 2 decimals.
Ex: 0.45% stands for 100,000 x 0.45/100 = DEM 450
In specific cases, premium with 3 decimals
Tick
Size: 0.01%
Value: 0.01/100 x 100,000 = DEM 10
Expiration
3 monthly + 3 quarterly expirations from March (H), June (M),
September (U), December (Z)
Last Trading Day
Thursday following the 3rd 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 to 5:00 pm (Paris time)
THS (after hours trading): 5:00 pm to 9:15 am
List 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 OPTION 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 the ``Marche a Terme International de
France'' to read as follows:
Appendix B.--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 July 3, 1995; XX FR
International de France. Great Britain Pound and XX
the Deutsche Mark (GBP/
DEM) and the Deutsche
Mark and Italian Lira
(DEM/ITL).
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Issued in Washington, D.C. on June 27, 1995.
Jean A. Webb,
Secretary to the Commission.
[FR Doc. 95-16230 Filed 6-30-95; 8:45 am]
BILLING CODE 6351-01-P