98-21264. Applications of the CME for Designation as a Contract Market in Futures and Options on Three Month Eurodollar FRAs

[Federal Register Volume 63, Number 153 (Monday, August 10, 1998)]
[Notices]
[Page 42617]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-21264]



[[Page 42617]]

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COMMODITY FUTURES TRADING COMMISSION


Applications of the CME for Designation as a Contract Market in 
Futures and Options on Three Month Eurodollar FRAs

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of terms and conditions of proposed 
commodity futures and option contracts.

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SUMMARY: The Chicago Mercantile Exchange (CME or Exchange) applied for 
designation as a contract market in futures and options on three month 
Eurodollar FRAs (forward rate agreements). The Director of the Division 
of Economic Analysis (Division) of the Commission, acting pursuant to 
the authority delegated by Commission Regulation 140.96, has determined 
that publication of the proposals for comment is in the public 
interest, will assist the Commission in considering the views of 
interested persons, and is consistent with the purposes of the 
Commodity Exchange Act.

DATE: Comments must be received on or before September 9, 1998.

ADDRESSES: Interested persons should submit their views and comment to 
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three 
Lafayette Centre, 21st Street, NW Washington, DC 20581. In addition, 
comments may be sent by facsimile transmission to facsimile number 
[phone], or by electronic mail to [e-mail]. Reference 
should be made to the CME three month Eurodollar FRA futures and option 
contracts.

FOR FURTHER INFORMATION, CONTACT: Please contact Michael Penick of the 
Division of Economic Analysis, Commodity Futures Trading Commission, 
Three Lafayette Centre, 21st Street NW, Washington, DC 20581, telephone 
[phone]. Facsimile number: [phone]. Electronic mail: 
[e-mail]

SUPPLEMENTARY INFORMATION: According to the CME, the proposed contracts 
differ from the existing three-month Eurodollar futures and option in 
that:

    [The proposed] Eurodollar FRA futures contracts are not subject 
to daily pay and collects based on the daily settlement price. 
Hence, Eurodollar FRA futures contracts are not subject to Rule 
814--Settlement to Settlement Price Daily. All pays and collects for 
a Eurodollar FRA futures contract occur on the final settlement 
date. A Forward Rate Agreement (FRA) is a contract specifying 
payments based on differences between an agreed upon interest rate 
and a future and an uncertain interest rate. Pays and collects for 
Forward Rate Agreements in the over-the-counter market also occur on 
the final settlement date of the contract. Thus, the proposed 
futures contract will be an easy transition for FRA traders.

    Copies of the terms and conditions will be available for inspection 
at the Office of the Secretariat, Commodity Futures Trading Commission, 
Three Lafayette Centre, 21st Street, NW, Washington, DC 20581. Copies 
of the terms and conditions can be obtained through the Office of the 
Secretariat by mail at the above address or by phone at [phone].
    Other materials submitted by the CME in support of the applications 
for contract market designations may be available upon request pursuant 
to the Freedom of Information Act (5 U.S.C. 552) and the Commission's 
regulation thereunder (17 C.F.R. Part 145 (1997)), except to the extent 
they are entitled to confidential treatment as set forth in 17 C.F.R. 
145.5 and 145.9. Requests for copies of such materials should be made 
to the FOI, Privacy and Sunshine Act Compliance Staff of the Office of 
Secretariat at the Commission's headquarters in accordance with 17 
C.F.R. 145.7 and 145.8.
    Any person interested in submitting written data, views, or 
arguments on the proposed terms and conditions, or with respect to 
other materials submitted by the CME should send such comments to Jean 
A. Webb, Secretary, Commodity Futures Trading Commission, Three 
Lafayette Centre, 21st Street NW, Washington, DC 20581 by the specified 
date.

    Issued in Washington, DC, on August 3, 1998.
Steven Manaster,
Director.
[FR Doc. 98-21264 Filed 8-7-98; 8:45 am]
BILLING CODE 6351-01-M