[Federal Register Volume 60, Number 75 (Wednesday, April 19, 1995)]
[Rules and Regulations]
[Pages 19493-19494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-9636]
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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
authorizing option contracts on the Three-month Eurolira Interest Rate
futures contract traded on the London International Financial Futures
and Options Exchange (LIFFE) to 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 Commission's Order issued on
September 5, 1989, 54 FR 37636 (September 12, 1989) authorizing certain
option products traded on LIFFE to be offered or sold in the United
States.
EFFECTIVE DATE: May 19, 1995.
FOR FURTHER INFORMATION CONTACT: Warren Gorlick, 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:
Order Under Commission Rule 30.3(a) Permitting Option Contracts
on the Three-Month Eurolira Interest Rate Futures Contract Traded on
the London International Financial Futures and Options Exchange to
be Offered or Sold in the United States Thirty Days after
Publication of this Notice in the Federal Register Absent Further
Notice.
By Order issued on September 5, 1989 (Initial Order), the
Commission authorized, pursuant to Commission rule 30.3(a),\1\ certain
option products traded on the London International Financial Futures
and Option Exchange (LIFFE) to be offered or sold in the United States.
54 FR 37636 (September 12, 1989). 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 LIFFE
option product in the United States shall be made until thirty days
after publication in the Federal Register of notice specifying the
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particular option(s) to be offered or sold pursuant to this Order.
By letter dated March 14, 1995, LIFFE represented that it would be
introducing an option contract based on the Three-Month Eurolira
Interest Rate futures contract on May 16, 1995.\2\ LIFFE has requested
that the Commission supplement its Initial Order authorizing the offer
and sale in the United States of options on the Long Gilt, U.S.
Treasury Bond, German Government Bond, Three-Month Sterling Interest
Rate, Three-Month Eurodollar Interest Rate futures contracts, options
on Sterling and Dollar-Mark currencies; a Supplemental Order, 55 FR
7705 (March 5, 1990), authorizing the offer and sale in the United
States of options on the Three-Month Euro-Deutschemark Interest Rate
futures contract; a Supplemental Order, 57 FR 1374 (January 14, 1992),
authorizing the offer and sale in the United States of options on the
Italian Government Bond futures contract; and a Supplemental Order, 57
FR 40603 (September 4, 1992) authorizing the offer and sale in the
United States of options on the Three-Month Euro Swiss Franc Interest
Rate futures contract; by also authorizing LIFFE's option contract on
the Three-Month Eurolira Interest Rate futures contract to be offered
or sold to persons in the United States. Upon due consideration, and
for the reasons previously discussed in the Initial Order, the
Commission believes that such an authorization should be granted.
\2\Letter from N.E. Carew, LIFFE, to Jane C. Kang, Commission.
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Accordingly, pursuant to Commission rule 30.3(a) and the
Commission's Initial Order issued on September 5, 1989, and subject to
the terms and conditions specified therein, the Commission hereby
authorizes LIFFE's option contract on the Three-Month Eurolira Interest
Rate futures contract to 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--Options on Three-Month Eurolira (``EUROLIRA'')
Interest Rate Futures Contract
Underlying Interest
One (1) Eurolira futures contract.
Delivery/Expiry Months
March, June, September, December.
Deliver Day/Exercise Day/Expiry Day
Exercise by 17.00 on any business day. Delivery on the first
business day after the exercise day. Expiry at 12.30 on the Last
Trading Day.
Last Trading Day
11.00 Last Trading Day of the Eurolira futures contract.
Quotation
Multiples of 0.01 (i.e. 0.01%).
Minimum Price Fluctuation (Tick Size and Value)
0.01 (ITL 25,000)
Trading Hours
07.57-16.10
Contract Standard
Assignment of 1 Eurolira futures contract for the delivery month at
the exercise price.
Exercise Price Intervals
0.25 (i.e., 0.25%) e.g., 91.00, 91.25, 91.50 etc.
Introduction of New Exercise Prices
Thirteen exercise prices will be listed for new series. Additional
exercise prices will be introduced on the business day after the
Eurolira [[Page 19494]] futures contract settlement price comes within
0.12 of the fourth highest or lowest existing exercise price.
Option Price
The contract price is payable by the buyer to the seller on
exercise or expiry of the option, not at the time of the purchase.
Positions are marked to market daily, as with futures positions.
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 ``London International Financial
Futures and Options Exchange'' 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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* * * * *
London International Option Contract on Three- 199____; ____
Financial Futures and Month Eurolira FR ____
Options Exchange. (``Eurolira'') Interest
Rate Futures Contract.
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Issued in Washington, D.C. on April 14, 1995.
Jean A. Webb,
Secretary to the Commission.
[FR Doc. 95-9636 Filed 4-18-95; 8:45 am]
BILLING CODE 6351-01-P
