[Federal Register Volume 59, Number 85 (Wednesday, May 4, 1994)] [Unknown Section] [Page 0] From the Federal Register Online via the Government Publishing Office [www.gpo.gov] [FR Doc No: 94-10612] [[Page Unknown]] [Federal Register: May 4, 1994] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 30 Foreign Option Transactions AGENCY: Commodity Futures Trading Commission. ACTION: Order. ----------------------------------------------------------------------- SUMMARY: The Commodity Futures Trading Commission (Commission) is issuing this Order pursuant to which option contracts on a spot foreign exchange operation between the United States Dollar and the Deutsche Mark (USD/DM) and United States Dollar and the French Franc (USD/FRF) 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 (Mutual Recognition Memorandum of Understanding (MRMOU) with the French Commission des Operations de Bourse). EFFECTIVE DATE: June 3, 1994. FOR FURTHER INFORMATION CONTACT: Jane C. Kang, Esq., Division of Trading and Markets, Commodity Futures Trading Commission, 2033 K Street NW., Washington, DC 20581. Telephone: (202) 254-8955. SUPPLEMENTARY INFORMATION: The Commission has issued the following Order: 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 USD/DM and USD/ FRF Traded on the Marche a Terme International de France To Be Offered or Sold in the United States Thirty Days After Publication of This Notice in the Federal Register 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. --------------------------------------------------------------------------- By letter dated April 8, 1994, MATIF notified the Commission that on May 20, 1994 it would be introducing option contracts based on the USD/DM and USD/FRF. By letter dated April 19, 1994, the Commission des Operations de Bourse requested that the Commission supplement its Initial Order and subsequent Order4 authorizing Options on the Notional Bond, the 3-month PIBOR, the 3-month EURODEM and the Long-Term ECU Bond Futures Contracts by also authorizing the MATIF's Option Contracts on the USD/DM and USD/FRF to be offered or sold in the United States. 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 contract specified herein may be offered or sold thirty days after the publication of this Order. --------------------------------------------------------------------------- \4\See 57 FR 10987 (April 1, 1992). --------------------------------------------------------------------------- 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 USD/DM and USD/FRF 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. USD/DM Option Specifications Exercise Style--European option Underlying Inst--USD/DM spot transaction Contract Size--USD 100 000 Strike Prices--In DM, with two decimals. Exercise price intervals: 2 pfennigs. (1.60--1.62 . . .) At least eleven closest-to-the-money (5 on each side). Premium Quotation--Premium in % of the USD nominal, with two decimals (Ex: 2.61% stands for 100 000 x 2.61/100=USD 2 610). In specific cases, premium with 3 decimals Tick Size--0.01% i.e. USD 10 Expiration Months--Three monthly + three quarterly maturities from March, June, September, December Expiration Date--Thursday following third 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--5 pm Paris time. THS (after hours trading): 5 pm--9:15 am USD/FRF Options Specifications Exercise Style--European option Underlying Inst--USD/FRF spot transaction Contract Size--USD 100 000 Strike Prices--In FRF, with two decimals. Exercise price intervals: 5 centimes. (5.60--5.65 . . .) At least eleven closest-to-the-money (5 on each side) Premium Quotation--Premium % of the USD nominal, with two decimals. (Ex: 0.45% stands for 100 000 x 0.45/100=USD 450) In specific cases, premium with 3 decimals Tick Size--0.01% i.e. USD 10 Expiration Months--Three monthly + three quarterly maturities from March, June, September, December Expiration Date--Thursday following third Wednesday of expiration month at 9 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--5 pm Paris time. THS (after hours trading): 5 pm--9:15 am Lists 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 OPTIONS 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 ``Marche a Terme International de France'' to read as follows: Appendix B to Part 30.--Option Contracts Permitted To Be Offered or Sold in the U.S. Pursuant to Sec. 30.3(a) ------------------------------------------------------------------------ Exchange Type of contract FR date and citation ------------------------------------------------------------------------ * * * * * * * Marche a Terme Option Contracts on May 5, 1994; International de United States Dollar/ ______FR______. France. Deutsche Mark and United States Dollar/French Franc. * * * * * * * ------------------------------------------------------------------------ Issued in Washington, DC on April 26, 1994. Jean A. Webb, Secretary to the Commission. [FR Doc. 94-10612 Filed 5-3-94; 8:45 am] BILLING CODE 6351-01-P
