No. 40-99 September 24, 1999 |
Weekly Advisory
Commodity Futures Trading Commission Three Lafayette Centre
1155 21st Street, NW Washington, DC 20581 Telephone: (202) 418-5080
Facsimile: (202) 418-5525 |
On September 17, 1999, the Commission
held a closed meeting to discuss surveillance matters.
On September 24, 1999, the Commission will
hold a closed meeting to discuss surveillance matters.
On September 28, 1999, the Commission will
hold a closed meeting to discuss a rule enforcement review.
Release:
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#4313-99
For Release:
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September 16, 1999
CFTC Expands the Scope of Relief of the Rule 30.10 Order Issued
to SIMEX to Include Transactions Entered Into on or Subject to the Rules
of EUREX
Washington -- The Commodity Futures Trading Commission (Commission)
issued a supplemental order authorizing certain members of the Singapore
International Monetary Exchange (SIMEX) to solicit and accept futures and
options orders from foreign futures and options customers in the U.S. for
transactions on Eurex Deutschland (EUREX).
Under the terms of the original order issued to SIMEX, SIMEX members who
receive confirmation of relief under Commission Rule 30.10 were
authorized to solicit and accept futures and options orders from foreign
futures and options customers in the U.S. only for transactions on SIMEX
without having to comply with certain provisions of Part 30 of the
Commission's regulations.
In the supplemental order, the Commission extended the relief to include
transactions for the purchase and sale of futures and option products
offered on EUREX. As with the original order, the relief provided for in
the supplemental order only extends to those products falling within the
jurisdiction of the Commodity Exchange Act (CEA) and remains subject to
existing product restrictions under the CEA and Commission regulations
and procedures thereunder related to stock indices and foreign government
debt. In addition, the relief under the supplemental order does not
permit SIMEX electronic terminals providing access to SIMEX and EUREX to
be placed in the United States, or otherwise authorize SIMEX members to
accept orders through U.S. automated order routing systems from persons
located in the United States for transmission to either SIMEX or EUREX,
without SIMEX having to acquire contract market designation pursuant to
section 5 of the CEA or receive comparable no-action relief. Should
SIMEX, or any other rule 30.10 order recipient, seek to extend its rule
30.10 relief to include a broader range of non-U.S. exchanges, it should
comply with the procedural requirements set forth within the supplemental
order.
The supplemental order was published in the Federal Register on
September 16, 1999. Copies of the supplemental order may be obtained by
contacting the Commission's Office of the Secretariat, Three
Lafayette Centre, 1155 21st Street, N.W., Washington, D.C.
20581, (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.
No Opinions Updates were issued during this period.
On September 22, 1999, the Commission authorized for publication in the Federal Register a notice of a new system of records under the Privacy Act covering certain discrimination complaint records.
The Commodity Futures Trading Commission issued a Supplemental Order authorizing members of the Singapore International Monetary Exchange who receive confirmation of relief under Commission rule 30.10 to solicit and accept orders from U.S. customers for otherwise permitted transactions on Eurex. Effective Date: September 16, 1999. Vol. 64, No. 179, 09/16/99, p. 50248.
NOTE:
All Comment Letters must be received by the Commission no later than the closing date specified in the applicable Federal Register release. Any requests for an extension of the comment period must be made in writing - - before the expiration of the comment period - - to the Commission's Office of the Secretariat.
Comment period concerning the Commission's proposal to streamline the
regulatory requirements governing its Trade Option Pilot program ends,
September 30, 1999.
Comment period concerning the Commission's Concept Release relating
to the computation and presentation of rate of return information and
other disclosures concerning partially-funded accounts managed by
commodity trading advisors (CTAs) ends, October 1,
1999.
Comment period concerning the Chicago Board of Trade's, the Chicago
Mercantile Exchange's, and the New York Mercantile Exchange's
joint petition dated June 25, 1999, to the Commodity Futures Trading
Commission requesting an exemption, pursuant to section 4(c) of the
Commodity Exchange Act, for all boards of trade that have been designated
by the Commission as contract markets from certain statutory requirements
concerning the contract market designation process for new contract
submissions and the contract market rule review process ends,
October 12, 1999.
Comment period concerning the Commission's proposal to amend its
regulations to clarify when foreign futures and options brokers who are
members of a foreign board of trade must register or obtain an exemption
from registration ends, October 25, 1999.
Comment period concerning the Commission's proposal to amend its
rules and regulations concerning foreign futures and options transactions
to include new rule 30.12 ends, October 25, 1999.
Comment period concerning the Commission's proposal to adopt new
rules allowing the use of electronic signatures in lieu of handwritten
signatures for certain purposes under the Commission's regulations
ends, October 29, 1999.
In the Matter of Competitive Strategies for Agriculture, Ltd.;
CSA Investor Services, Inc.; Lee Donald Amundson; Terry Allan Dirksen;
Jeffrey James Wichmann; William Eugene Arnold; Great Plains Co-op; and
Herman Gerdes. Filed September 17, 1999. On December 22, 1998,
the Commodity Futures Trading Commission's Division of Enforcement
filed a six count complaint alleging that respondents had violated the
CEAct by (1) trading illegal off-exchange futures contracts; (2) making
fraudulent representations in the trading advisor capacity; (3) using the
mails, or any means of instrumentality of interstate commerce to defraud
a client or prospective client; (4) committing fraud with respect to
futures contracts; (5) failing to diligently supervise their employees;
and (6) failing to hold out to the public the name of the firm of which
it is a branch office. Most issues were resolved, the only issues
awaiting resolution include (1) whether Great Plains Co-op and Herman
Gerdes violated section 4(a) of the CEAct by offering and entering into
futures contracts illegally off of an exchange; and (2) whether Herman
Gerdes violated section 4(a) of the CEAct by aiding and abetting the
Great Plains Co-op unlawful off-exchange futures trading venture. The
issues concern only the Cross Country Hedge-to-Arrive contracts between
CSA customers and Great Plains. After a careful review of the record, it
was concluded that respondents Great Plains Co-op and Herman Gerdes had
operated a bucket shop in contravention of section 4(a) of the CEAct.
Accordingly, respondents Great Plains Co-op and Herman Gerdes were
ordered to cease and desist from violating section 4(a) of the CEAct. In
addition, respondent Herman Gerdes was prohibited from trading on or
subject to the rules of any contract market for a period of ten (10)
years from the date this decision becomes final. Administrative Law
Judge, George H. Painter. CFTC Docket No. 98-4.
Ronnie G. Jones, and Linda Stephens-Jones v. William Kevin
Graham, Kevin Thomas Johnson and American Financial Services,
Inc. Filed September 16, 1999. Respondents failed to file
answers and were held in default. Respondents' defaults constituted
admissions of the allegations in the complaint and waivers of any
affirmative defenses. Accordingly, it was concluded that William Kevin
Graham, Kevin Thomas Johnson, and American Financial Services,
Incorporated violated section 4c(b) of the CEAct and Commission rule
33.10, causing $8,000 in damages. As such, William Kevin Graham, Kevin
Thomas Johnson, and American Financial Services, Incorporated were
ordered to pay Ronnie G. Jones and Linda Stephens-Jones reparations of
$8,000, plus interest on that amount of 5.224% compounded annually from
June 12, 1997, to the date of payment, plus $50 in costs for the filing
fee. Philip V. McGuire, Judgment Officer. CFTC Docket No. 99-R158.
Joseph Janos v. Julie Marie Zordani and First American Discount
Corporation. Filed September 20,1999. The parties settled their
dispute and filed a stipulation of dismissal. Accordingly, this matter
was dismissed. Philip V. McGuire, Judgment Officer. CFTC Docket No.
99-R106.
In the Matter of New York Currency Research Corporation. Filed September 22, 1999. On June 15, 1999, the United States Court of Appeals for the Second Circuit issued a decision holding that petitioner New York Currency Research Corporation was not within the jurisdiction of the Commission. The Court remanded the case to the Commission with instructions to dismiss the complaint. In accordance with the Court's instructions, the complaint was dismissed. CFTC Docket No. 98-3.
No CFTC Letters were issued during this period.
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