[Federal Register Volume 60, Number 156 (Monday, August 14, 1995)]
[Rules and Regulations]
[Pages 41802-41804]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-19982]



=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 30


Foreign Option Transactions; Material Changes in Terms and 
Conditions of Option Contract

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

-----------------------------------------------------------------------

SUMMARY: The Commodity Futures Trading Commission (Commission) is 
publishing notice of certain material changes in the terms and 
conditions of the option contract on the MIBOR '90 futures contract 
traded on the MEFF Sociedad Rectora de Productos Financieros Derivados 
de Renta Fija, S.A. (MEFF Renta Fija) to be offered or sold to persons 
located in the United States. The initial order permitting, among 
others, option contracts on the MIBOR '90 futures contract to be 
offered or sold to persons in the United States was issued on June 5, 
1995, 60 FR 30462 (June 9, 1995), pursuant to 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.

EFFECTIVE DATE: August 14, 1995.

FOR FURTHER INFORMATION CONTACT: Jane C. Kang, Esq., or Robert 
Rosenfeld, Esq., Division of Trading and Markets, Commodity Futures 
Trading Commission, 2033 K Street, N.W., 

[[Page 41803]]
Washington, D.C. 20581. Telephone: (202) 254-8955.

SUPPLEMENTARY INFORMATION: The Commission has issued the following 
Notice:

    Notice of Certain Material Changes in Terms and Conditions of 
the Option Contract on the MIBOR '90 Futures Contract Previously 
Approved Under Commission Rule 30.3(a) Permitting Option Contracts 
on MEFF Renta Fija to be Offered or Sold in the United States.

    By Order issued on June 5, 1988 (Initial Order), the Commission 
authorized, pursuant to Commission rule 30.3(a),1 certain option 
products traded on the MEFF Renta Fija to be offered or sold in the 
United States. 60 FR 30462 (June 9, 1995). Among other conditions, the 
Initial Order specified that:

    \1\ 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.
---------------------------------------------------------------------------

    Except as otherwise permitted under the Commodity Exchange Act 
and regulations thereunder, * * * no offer or sale of any MEFF Renta 
Fija option product in the United States shall be made until thirty 
days after publication in the Federal Register of notice specifying 
the particular option(s) to be offered or sold pursuant to this 
Order.

    By letter dated July 6, 1995, MEFF Renta Fija through its counsel 
represented that it would be replacing the existing option contract on 
the MIBOR '90 futures contract with the option on the MIBOR '90 Plus 
futures contract, which has a notional value ten (10) times greater 
than the MIBOR '90 futures contract underlying the option previously 
approved by the Initial Order.2 Counsel has confirmed that the 
options on the MIBOR '90 Plus futures contract commenced trading on 
June 12, 1995 and that the option on the MIBOR '90 futures contract has 
now been delisted.

    \2\ See letter dated July 6, 1995 from Philip McBride Johnson, 
Skadden, Arps, Slate, Meagher & Flom to Jean A. Webb, CFTC 
Secretary.
---------------------------------------------------------------------------

    MEFF Renta Fija has requested that the Commission confirm that its 
Initial Order authorizing options on the MIBOR '90 futures contract, 
the monthly option on the 10-year Government Bond futures contract and 
the Quarterly option on the 10-year Government bond futures contract, 
is amended to substitute options on the MIBOR '90 Plus futures contract 
for the previously approved MIBOR '90 option contract. Since the 
increase in the notional value of the futures contract underlying the 
previously authorized MIBOR '90 option is considered to be a material 
change in the existing option contract, the Commission is publishing 
the new terms and conditions of the option contract on the MIBOR '90 
Plus futures contract for notice purposes only. The Commission also is 
amending Appendix B to Part 30 of its regulations to reflect this 
change.
Contract Specifications Options on the MIBOR '90 Plus Futures 
Contact

Underlying Asset

    MIBOR '90 Plus futures contract. The underlying asset of the 90-day 
interbank deposit future is the interest paid on an interbank deposit, 
theoretically placed on the contract's maturity day, for a period of 
ninety days and an amount of one hundred million pesetas.

Contract Size

    1 futures contract.

Exercise Style

    American.

Traded Options

    Options on futures with trading available at least in March, June, 
September and December in addition to the same quarters of the 
following year.

Available Classes

    At least one options class for each of the underlying asset's two 
nearby expirations shall be available for trading.

Available Series

    On the first trading day of an expiration at least five series of 
calls and five series of puts shall be introduced for the same 
underlying asset with the same expiration month, but with different 
strike prices.
    For one of the call or put series, the strike price will be equal 
to the daily settlement price of the underlying asset the day prior to 
the option's first trading day, rounded off to the nearest strike price 
interval.
    For the other series, the strike price shall be set so that there 
are at least two options series with strikes above and at least two 
series with strikes below the first strike price.

Trading Hours

    8:00 a.m. to 10:00 p.m.

Last Trading Day

    The last business day prior to the expiration date.

Expiration Date

    Third Wednesday of the underlying futures contract month; if the 
expiration date coincides with a holiday, the expiration date shall be 
the following business day.

Quotation Method

    Quoted in points, with one point equals two hundred and fifty 
pesetas.

Tick Value

    The minimum fluctuation of the premium shall be 1 point.

Margining

    Margin is calculated taking into account the overall futures and 
options portfolio.

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 
in alphabetical order to read as follows:

APPENDIX B--Option Contracts Permitted To Be Offered or Sold in the 
U.S. Pursuant to Sec. 30.3(a)

------------------------------------------------------------------------
                                                         FR date and    
         Exchange              Type of contract            citation     
------------------------------------------------------------------------
                                                                        
*                  *                  *                  *              
                  *                  *                  *               
MEFF Sociedad Rectora de   Option Contracts on the   August 14, 1995; 60
 Productos Financieros      MIBOR '90 Plus Futures    FR 41803          
 Derivados de Renta Fija,   Contract.                                   
 S.A.                                                                   
                                                                        
*                  *                  *                  *              
                  *                  *                  *               
------------------------------------------------------------------------


[[Page 41804]]

    Issued in Washington, D.C. on August 8, 1995.
Jean A. Webb,
Secretary to the Commission.
[FR Doc. 95-19982 Filed 8-11-95; 8:45 am]
BILLING CODE 6351-01-P