[Federal Register Volume 64, Number 105 (Wednesday, June 2, 1999)]
[Rules and Regulations]
[Pages 29550-29553]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-13927]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 240
[Release No. 34-41453, International Series Release No. 1198, File No.
S7-4-99]
RIN 3235-AH68
Exemption of the Securities of the Kingdom of Sweden Under the
Securities Exchange Act of 1934 for Purposes of Trading Futures
Contracts on Those Securities
AGENCY: Securities and Exchange Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission is adopting an
amendment to Rule 3a12-8 that would designate debt obligations issued
by the Kingdom of Sweden as ``exempted securities'' for the purpose of
marketing and trading futures contracts on those securities in the
United States. The amendment is intended to permit futures trading on
the sovereign debt of Sweden.
EFFECTIVE DATE: June 2, 1999.
FOR FURTHER INFORMATION CONTACT: Joshua Kans, Attorney, Office of
Market Supervision (``OMS''), Division of Market Regulation
(``Division''), Securities and Exchange Commission, 450 Fifth Street,
NW, Washington, DC 20549-1001, at 202/942-0079.
SUPPLEMENTARY INFORMATION:
I. Introduction
Under the Commodity Exchange Act (``CEA''), it is unlawful to trade
a futures contract on any individual security unless the security in
question is an exempted security (other than a municipal security)
under the Securities Act of 1933 (``Securities Act'') or the Securities
Exchange Act of 1934 (``Exchange Act''). Debt obligations of foreign
governments are not exempted securities under either of these statutes.
The Securities and Exchange Commission (``SEC'' or ``Commission''),
however, has adopted Rule 3a12-8 \1\ (``Rule'') under the Exchange Act
to designate debt obligations issued by certain foreign governments as
exempted securities under the Exchange Act solely for the purpose of
marketing and trading futures contracts on those securities in the
United States. As amended, the foreign governments currently designated
in the Rule are Great Britain, Canada, Japan, Australia, France, New
Zealand, Austria, Denmark, Finland, the Netherlands, Switzerland,
Germany, the Republic of Ireland, Italy, Spain, Mexico, Brazil,
Argentina, Venezuela and Belgium (the ``Designated Foreign
Governments''). As a result, futures contracts on the debt obligations
of these countries may be sold in the United States, as long as the
other terms of the Rule are satisfied.
---------------------------------------------------------------------------
\1\ 17 CFR 240.3a12-8.
---------------------------------------------------------------------------
On February 23, 1999, the Commission issued a release proposing to
amend Rule 3a12-8 to designate the debt obligations of the Kingdom of
Sweden (``Sweden'') as exempted securities, solely for the purpose of
futures trading.\2\ No comment letters were received in response to the
proposal.
---------------------------------------------------------------------------
\2\ See Securities Exchange Act Release No. 41090 (February 23,
1999), 64 FR 9948 (March 1, 1999) (``Proposing Release'').
---------------------------------------------------------------------------
The Commission today is adopting this amendment to the Rule, adding
Sweden to the list of countries whose debt obligations are exempted by
Rule
[[Page 29551]]
3a12-8. In order to qualify for the exemption, futures contracts on the
debt obligations of Sweden would have to meet all the other existing
requirements of the Rule.
II. Background
Rule 3a12-8 was adopted in 1984 \3\ pursuant to the exemptive
authority in section 3(a)(12) of the Exchange Act in order to provide a
limited exception from the CEA's prohibition on futures overlying
individual securities.\4\ As originally adopted, the Rule provided that
the debt obligations of Great Britain and Canada would be deemed to be
exempted securities, solely for the purpose of permitting the offer,
sale, and confirmation of ``qualifying foreign futures contracts'' on
such securities. The securities in question were not eligible for the
exemption if they were registered under the Securities Act or were the
subject of any American depositary receipt so registered. A futures
contract on the covered debt obligation under the Rule is deemed to be
a ``qualifying foreign futures contract'' if the contract is
deliverable outside the United States and is traded on a board of
trade.\5\
---------------------------------------------------------------------------
\3\ See Securities Exchange Act Release No. 20708 (``Original
Adopting Release'') (March 2, 1984), 49 FR 8595 (March 8, 1984);
Securities Exchange Act Release No. 19811 (``Original Proposing
Release'') (May 25, 1983), 48 FR 24725 (June 2, 1983).
\4\ In approving the Futures Trading Act of 1982, Congress
expressed its understanding that neither the SEC nor the Commodity
Futures Trading Commission (``CFTC'') had intended to bar the sale
of futures on debt obligations of the United Kingdom of Great
Britain and Northern Ireland to U.S. persons, and its expectation
that administrative action would be taken to allow the sale of such
futures contracts in the United States. See Original Proposing
Release, supra note 3, 48 FR at 24725 (citing 128 Cong. Rec. H7492
(daily ed. September 23, 1982) (statements of Representatives
Daschle and Wirth)).
\5\ As originally adopted, the Rule required that the board of
trade be located in the country that issued the underlying
securities. This requirement was eliminated in 1987. See Securities
Exchange Act Release No. 24209 (March 12, 1987), 52 FR 8875 (March
20, 1987).
---------------------------------------------------------------------------
The conditions imposed by the Rule were intended to facilitate the
trading of futures contracts on foreign government securities in the
United States while requiring offerings of foreign government
securities to comply with the federal securities laws. Accordingly, the
conditions set forth in the Rule were designed to ensure that, absent
registration, a domestic market in unregistered foreign government
securities would not develop, and that markets for futures on these
instruments would not be used to avoid the securities law registration
requirements. In particular, the Rule was intended to ensure that
futures on exempted sovereign debt did not operate as a surrogate means
of trading the unregistered debt.
Subsequently, the Commission amended the Rule to include the debt
securities issued by Japan, Australia, France, New Zealand, Austria,
Denmark, Finland, the Netherlands, Switzerland, Germany, Ireland,
Italy, Spain, Mexico, Brazil, Argentina, Venezuela and, most recently,
Belgium.\6\
---------------------------------------------------------------------------
\6\ As originally adopted, the Rule applied only to British and
Canadian government securities. See Original Adopting Release, supra
note 3. In 1986, the Rule was amended to include Japanese government
securities. See Securities Exchange Act Release No. 23423 (July 11,
1986), 51 FR 25996 (July 18, 1986). In 1987, the Rule was amended to
include debt securities issued by Australia, France and New Zealand.
See Securities Exchange Act Release No. 25072 (October 29, 1987), 52
FR 42277 (November 4, 1987). In 1988, the Rule was amended to
include debt securities issued by Austria, Denmark, Finland, the
Netherlands, Switzerland, and West Germany. See Securities Exchange
Act Release No. 26217 (October 26, 1988), 53 FR 43860 (October 31,
1988). In 1992 the Rule was again amended to (1) include debt
securities offered by the Republic of Ireland and Italy, (2) change
the country designation of ``West Germany'' to the ``Federal
Republic of Germany,'' and (3) replace all references to the
informal names of the countries listed in the Rule with references
to their official names. See Securities Exchange Act Release No.
30166 (January 8, 1992), 57 FR 1375 (January 14, 1992). In 1994, the
Rule was amended to include debt securities issued by Spain. See
Securities Exchange Act Release No. 34908 (October 27, 1994), 59 FR
54812 (November 2, 1994). In 1995, the Rule was amended to include
the debt securities of Mexico. See Securities Exchange Act Release
No. 36530 (November 30, 1995), 60 FR 62323 (December 6, 1995). In
1996, the Rule was amended to include debt securities issued by
Brazil, Argentina, and Venezuela. See Securities Exchange Act
Release No. 36940 (March 7, 1996), 61 FR 10271 (March 13, 1996).
Finally, earlier in 1999, the Rule was amended to include debt
securities issued by Belgium. See Securities Exchange Act Release
No. 41116 (February 26, 1999), 64 FR 10564 (March 5, 1999).
---------------------------------------------------------------------------
OM Stockholm AB of Sweden (``OM''), and its British affiliate OMLX,
The London Securities and Derivatives Exchange Limited (``OMLX''), have
proposed that the Commission amend 3a12-8 to include the sovereign debt
of Sweden. OM and OMLX (which will be collectively referred to as
``OM'') have stated that they are listing standardized futures
contracts on Swedish government securities for trading on their
respective markets, beginning with a futures contract on the ten-year
Swedish government bond. The applicants wish to make those futures
contracts available to U.S. investors.\7\
---------------------------------------------------------------------------
\7\ See Letters from Philip McBride Johnson, counsel for OM and
OMLX, to Jonathan Katz, Secretary, Commission, dated June 11, 1998;
Memorandum provided by OM and OMLX to the Division of Market
Regulation on July 6, 1998; Letter from Philip Johnson to Michael
Walinskas, Deputy Associate Director, Division, Commission, dated
July 24, 1998; Letters from Philip Johnson to Joshua Kans, Attorney,
Division, Commission, dated August 20, September 11 and October 2,
1998; Letter from Philip Johnson to Michael Walinskas, dated
December 7, 1998; Letters from Philip Johnson to Joshua Kans, dated
March 31 and April 19, 1999 (collectively ``OM petition'').
---------------------------------------------------------------------------
The Swedish National Debt Office submitted a letter supporting OM's
application to amend the Rule.\8\ In 1988, the Commission proposed
adding Sweden to the list of countries designated under the Rule,\9\
but rejected the proposal because of opposition from the Swedish
government.\10\
---------------------------------------------------------------------------
\8\ See Letter from Tomas Magnusson, Director and General
Counsel, Swedish National Debt Office, to Jonathan Katz, Secretary,
Commission, dated June 29, 1998.
\9\ See Securities Exchange Act Release No. 25998 (August 16,
1988), 53 FR 31709 (August 19, 1988).
\10\ The Embassy of Sweden submitted two letters in response to
the 1988 proposal, noting that currency controls prohibiting non-
residents from holding Swedish kronor-denominated securities would
preclude development of a market for physically settled futures on
such securities, and stating that in any case it was not in the
Swedish government's interest that such a market develop. As a
matter of international comity, the Commission chose not to add
Sweden to the Rule. See Securities Exchange Act Release No. 26217
(October 26, 1988), 53 FR 43860 (October 31, 1988).
---------------------------------------------------------------------------
The Commission is amending Rule 3a12-8 to add Sweden to the list of
countries whose debt obligations are deemed to be ``exempted
securities'' under the terms of the Rule. Under this amendment, the
existing conditions set forth in the Rule (i.e., that the underlying
securities not be registered in the United States, that futures
contracts require delivery outside the United States, and that
contracts be traded on a board of trade) would continue to apply.
III. Discussion
For the reasons discussed below, the Commission finds that it is
consistent with the public interest and the protection of investors
that Rule 3a12-8 be amended to include the sovereign debt obligations
of Sweden. The Commission believes that the trading of futures
contracts on the sovereign debt of Sweden could provide U.S. investors
and dealers with a vehicle for hedging the risks involved in holding
debt instruments of Sweden, and that the sovereign debt of Sweden
should be subject to the same regulatory treatment under the Rule as
that of the Designated Foreign Governments.
When amending the Rule to include Belgium, the Commission stated
that it would consider two types of evidence about whether there was an
active and liquid secondary trading market for the security--credit
rating (as indirect evidence) and trading data.\11\ Earlier, when
amending the Rule to include Mexico, Brazil, Argentina, and
[[Page 29552]]
Venezuela, the Commission considered primarily whether market evidence
indicated that an active and liquid secondary trading market exists for
the sovereign debt of those countries.\12\ Prior to the addition of
those countries to the Rule, the Commission considered principally
whether the particular sovereign debt had been rated in one of the two
highest rating categories \13\ by at least two nationally recognized
statistical rating organizations (``NRSROs'').\14\
---------------------------------------------------------------------------
\11\ See Securities Exchange Act Release No. 41116 (February 26,
1999), 64 FR 10564 (March 5, 1999).
\12\ See, e.g., Securities Exchange Act Release No. 36530
(November 30, 1995), 60 FR 62323 (December 6, 1995) (amending the
Rule to add Mexico because the Commission believed that as a whole,
the market for Mexican sovereign debt was sufficiently liquid and
deep for the purposes of the Rule); Securities Exchange Act Release
No. 36940 (March 7, 1996), 61 FR 10271 (March 13, 1996) (amending
the Rule to add Brazil, Argentina and Venezuela because the
Commission believed that the market for the sovereign debt of those
countries was sufficiently liquid and deep for the purposes of the
Rule).
\13\ The two highest categories used by Moody's Investor
Services (``Moody's'') for long-term debt are ``Aaa'' and ``Aa.''
The two highest categories used by Standard and Poor's (``S&P'') for
long-term debt are ``AAA'' and ``AA.''
\14\ See, e.g., Securities Exchange Act Release No. 30166
(January 6, 1992) 57 FR 1375 (January 14, 1992) (amending the Rule
to include debt securities issued by Ireland and Italy--Ireland's
long-term sovereign debt was rated Aa3 by Moody's and AA-by S&P, and
Italy's long-term sovereign debt was rated Aaa by Moody's and AA+ by
S&P); and Securities Exchange Act Release No. 34908 (October 27,
1994), 59 FR 54812 (November 2, 1994) (amending the Rule to include
Spain, which had long-term debt ratings of Aa2 from Moody's and AA
from S&P); See also Securities Exchange Act Release No. 36213
(September 11, 1995), 60 FR 48078 (September 18, 1995) (proposal to
add Mexico to list of countries encompassed by the Rule); Securities
Exchange Act Release No. 24428 (May 5, 1987), 52 FR 18237 (May 14,
1987) (proposed amendment, which was not implemented, that would
have extended the Rule to encompass all countries rated in one of
the two highest categories by at least two NRSROs).
---------------------------------------------------------------------------
Sweden meets the credit rating standard. Moody's has assigned
Sweden a long-term local currency credit rating of Aa1 and a long-term
foreign currency credit rating of Aa2. S&P has assigned Sweden a long-
term local currency credit rating of AAA and a long-term foreign
currency credit rating of AA+.
Market data also indicates that there exists an active and liquid
trading market for Swedish issued debt instruments. As of February 28,
1999, the total Swedish public debt outstanding was equivalent to
approximately US$173 billion (1428 billion Swedish kronor
(``SEK'')).\15\ The largest portion of this debt, Treasury bonds
(Statsobligationslan) denominated in Swedish kronor, amounted to
approximately US$94 billion (SEK 773 billion).\16\ Treasury bills
(Statsskuldvaxlar) denominated in Swedish kronor amounted to
approximately US$27 billion (SEK 227 billion).\17\
---------------------------------------------------------------------------
\15\ Data regarding the amount of outstanding debt was obtained
from ``Den Svenska Statsskulden: The Swedish Central Government
Debt,'' February 28, 1998, available from the website of the Swedish
National Debt Office (http://www.sndo.se). U.S. dollar equivalents
for the February 28, 1999 data about outstanding debt is based on
the conversion rate of SEK 8.2538 for US$1.00 in effect as of March
1, 1999.
The last country added to the index, Belgium, had an outstanding
public debt equal to approximately US$264 billion at the end of
1997. See Securities Exchange Act Release No. 41116 (February 26,
1999), 64 FR 10564 (March 5, 1999). The four countries last added to
the list prior to Belgium--Mexico, Brazil, Argentina and Venezuela--
had lower amounts of public debt. See Securities Exchange Act
Release No. 36530 (December 6, 1995), 60 FR 62323 (December 6, 1995)
(outstanding Mexican government debt amounted to approximately
US$87.5 billion face value as of March 31, 1995); Securities
Exchange Act Release No. 36940 (March 7, 1996), 61 FR 10271 (March
13, 1996) (public and publicly guaranteed debt of Brazil, Argentina
and Venezuela amounted to approximately US$86 billion, US$55 billion
and US$74 billion, respectively, as of December 31, 1993).
\16\ The outstanding Treasury bonds include approximately US$79
billion (SEK 654 billion) worth of benchmark bonds, approximately
US$2.8 billion (SEK 23 billion) worth of non-benchmark bonds, and
approximately US$11 billion (SEK 94 billion) worth of inflation
linked bonds.
\17\ Other types of Swedish currency-denominated debt included
approximately US$6.8 billion (SEK 56 billion) worth of lottery
bonds. A total of approximately US$132 billion (SEK 1086 billion) in
Swedish government debt was denominated in Swedish kronor.
Foreign currency-denominated debt amounted to approximately
US$41 billion (SEK 342 billion). Foreign-currency denominated debt
includes approximately US$32 billion (SEK 266 billion) worth of
public issues, US$6.7 billion (SEK 56 billion) worth of private
placements, and US$2.0 billion (SEK 16 billion) worth of commercial
paper.
---------------------------------------------------------------------------
OM has submitted data indicating that secondary market trading in
Treasury bonds amounted to approximately US$1.2 trillion (SEK 9079
billion) in 1996, approximately US$1.3 trillion (SEK 10,550 billion) in
1997, and approximately US$1.2 trillion (SEK 9098 billion) in 1998.\18\
The average daily trading volume during that period ranged from
approximately US$2.1 billion (SEK 16.6 billion) for the month of July
1998 to approximately US$8.3 billion (SEK 65.6 billion) for the month
of October 1997. OM adds that there were approximately 109,100
transactions in benchmark Treasury bonds in 1997 and 274,000 in 1998;
27,500 transactions in non-benchmark Treasury bonds in 1997 and 7900 in
1998; and 2000 transactions in inflation-linked Treasury bonds in 1997
and 10,800 in 1998.\19\
---------------------------------------------------------------------------
\18\ OM petition, supra note 7. OM states that the statistics
about secondary market trading in Swedish debt were derived from
data specially prepared by the Swedish Central Securities
Depository. Id.
For the historical 1996 to 1998 secondary market trading data
discussed in this release, U.S. dollar equivalents are based on the
conversion rate of SEK 7.8565 for US$1.00 in effect as of September
30, 1998. The exchange rate varied from 6.5340 to 7.0114 in 1996,
from 6.8074 to 8.0780 in 1997, and from 7.5763 to 8.3397 in 1998.
\19\ OM states that secondary market trading for Swedish
government debt is primarily conducted on a phone-based and screen-
based over-the-counter market conducted by a number of dealers, with
transactions in Treasury bonds and Treasury bills registered at the
PMX Exchange at the end of the trading day. Id.
---------------------------------------------------------------------------
OM has also submitted data stating that secondary market trading in
Treasury bills amounted to approximately US$440 billion (SEK 3452
billion) in 1996, approximately US$488 billion (SEK 3831 billion) in
1997, and approximately US$447 billion (SEK 3511 billion) in 1998. The
average daily trading volume during that period ranged from
approximately US$1.2 billion (SEK 9.3 billion) for the month of May
1996 to approximately US$2.6 billion (SEK 20.7 billion) for the month
of March 1997. OM adds that there were approximately 38,600
transactions in Treasury bills in 1997 and 76,800 in 1998.\20\
---------------------------------------------------------------------------
\20\ OM states that secondary market trading in lottery bonds
was equivalent to approximately US$512 million (SEK 4.03 billion) in
1996, US$449 million (SEK 3.53 billion) in 1997, and US$213 million
(SEK 1.67 billion) in the first half of 1998. OM has not provided
secondary market trading data for other Swedish debt securities.
According to OM, transaction data for Swedish government debt
denominated in foreign currencies is extremely difficult to obtain.
OM further contends that because a number of Swedish government debt
securities denominated in U.S. dollars have been registered under
the Securities Act of 1933, and therefore are not eligible for
exemption under the Rule, secondary market data for securities
denominated in non-kronor currencies is less significant. See id.
OM states that it presently does not intend to list any futures
on inflation-linked bonds, treasury bonds with repurchase
agreements, lottery bonds or commercial papers. Id.
---------------------------------------------------------------------------
The Commission finds that this trading data, coupled with a high
debt rating, provides sufficient evidence that there exists an active
and liquid market for Swedish sovereign debt.
IV. Costs and Benefits of the Proposed Amendments
The Commission believes that the amendment offers potential
benefits for U.S. investors. As stated above, the amendment will allow
U.S. and foreign boards of trade to offer in the United States, and
U.S. investors to trade, futures contracts on the debt obligations of
Sweden. Consistent with Congressional support for futures on foreign
sovereign debt securities, the trading of futures on the sovereign debt
of Sweden should provide U.S. investors with a vehicle for hedging the
risks involved in the trading of the underlying sovereign debt of
Sweden. The amendment does not impose any
[[Page 29553]]
direct recordkeeping or compliance costs, and merely would provide a
limited purpose exemption under the federal securities laws. The
restrictions imposed under the amendment are identical to the
restrictions currently imposed under the terms of the Rule and are
designed to protect U.S. investors.
V. Effects of the Proposed Amendment on Competition, Efficiency and
Capital Formation, and Other Findings
Section 23(a)(2) of the Exchange Act \21\ requires the Commission,
in adopting rules under the Exchange Act, to consider the competitive
effects of such rules, if any, and to refrain from adopting a rule that
would impose a burden on competition not necessary or appropriate in
furthering the purposes of the Exchange Act. Moreover, section 3 of the
Exchange Act \22\ as amended by the National Securities Markets
Improvement Act of 1996 \23\ provides that whenever the Commission is
engaged in a rulemaking and is required to consider or determine
whether an action is necessary or appropriate in the public interest,
the Commission shall consider, in addition to the protection of
investors, whether the action will promote efficiency, competition and
capital formation.
---------------------------------------------------------------------------
\21\ 15 U.S.C. 78w(a)(2).
\22\ 15 U.S.C. 78c.
\23\ Pub. L. 104-290, 110 Stat. 3416 (1996).
---------------------------------------------------------------------------
The Commission has considered the amendment to the Rule in light of
the standards cited in sections 3 and 23(a)(2), and the Commission
believes that adoption of the amendment will not impose any burden on
competition not necessary or appropriate in furtherance of the purposes
of the Exchange Act. As stated above, the amendment is designed to
assure the lawful availability in this country of futures contracts on
the government debt of Sweden that otherwise would not be permitted to
be marketed under the terms of the CEA. The amendment thus serves to
expand the range of financial products available in the United States
and enhances competition in financial markets. The Commission has
considered the amendment's impact on efficiency, competition, and
capital formation and concludes that it would promote these three
objectives, by making available to U.S. investors an additional product
to use to hedge the risks associated with the trading of the underlying
sovereign debt of Sweden.\24\ Insofar as the Rule contains limitations,
they are designed to promote the purposes of the Exchange Act by
ensuring that futures trading on government securities of Sweden is
consistent with the goals and purposes of the federal securities laws
by minimizing the impact of the Rule on securities trading and
distribution in the United States.
---------------------------------------------------------------------------
\24\ 15 U.S.C. 78f(b).
---------------------------------------------------------------------------
Because the amendment to the Rule is exemptive in nature, the
Commission has determined to make the foregoing action effective
immediately upon publication in the Federal Register.\25\
---------------------------------------------------------------------------
\25\ 5 U.S.C. 553(d).
---------------------------------------------------------------------------
VI. Administrative Requirements
Pursuant to section 605(b) of the Regulatory Flexibility Act, 5
U.S.C. 605(h), the Chairman of the Commission has certified in
connection with the Proposing Release that this amendment, if adopted,
would not have a significant economic impact on a substantial number of
small entities. The Commission received no comments on this
certification.
The Paperwork Reduction Act does not apply because the amendment
does not impose recordkeeping or information collection requirements,
or other collections of information which require the approval of the
Office of Management and Budget under 44 U.S.C. 3501, et seq.
VII. Statutory Basis
The amendment to Rule 3a12-8 is being adopted pursuant to 15 U.S.C.
78a et seq., particularly sections 3(a)(12) and 23(a), 15 U.S.C.
78c(a)(12) and 78w(a).
List of Subjects in 17 CFR Part 240
Reporting and recordkeeping requirements, Securities.
Text of the Amendment
For the reasons set forth in the preamble, the Commission amends
part 240 of Chapter II, Title 17 of the Code of Federal Regulations as
follows:
PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF
1934
1. The authority citation for Part 240 continues to read in part as
follows:
Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77eee,
77ggg, 77nnn, 77sss, 77ttt, 78c, 78d, 78f, 78i, 78j, 78j-1, 78k,
78k-1, 78l, 78m, 78n, 78o, 78p, 78q, 78s, 78u-5, 78w, 78x, 78ll(d),
78mm, 79q, 79t, 80a-20, 80a-23, 80a-29, 80a-37, 80b-3, 80b-4 and
80b-11, unless otherwise noted.
* * * * *
2. Section 240.3a12-8 is amended by removing the word ``or'' at the
end of paragraph (a)(1)(xviii), removing the period at the end of
paragraph (a)(1)(xix) and adding ``; or'' in its place, and adding
paragraph (a)(1)(xx), to read as follows:
Sec. 240.3a12-8 Exemption for designated foreign government securities
for purposes of futures trading.
(a) * * *
(1) * * *
(xxi) The Kingdom of Sweden.
* * * * *
Dated: May 26, 1999.
By the Commission.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-13927 Filed 6-1-99; 8:45 am]
BILLING CODE 8010-01-P