[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]
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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.
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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.
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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.
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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)
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FR date and
Exchange Type of contract citation
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* * * *
* * *
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.
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[[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