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
Home Page:
http://www.cftc.gov
Antoinette B. McCoy, Editor


Commission Meetings

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.

CFTC News Releases

Release: ������������������ #4313-99
For Release: ������������ 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.

Opinions Updates

No Opinions Updates were issued during this period.

Seriatim Actions

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.

Federal Register Notices

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.

Comment Periods

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.

Initial Decisions

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.

Opinions and Orders

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.

CFTC Letters

No CFTC Letters were issued during this period.

Reminders

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