For Release: May 31, 2001
Commodity Futures Trading Commission Issues Notice of Proposed Rulemaking Regarding Notice-Designated Contract Markets in Security Futures Products
Washington, D.C.- The Commodity Futures Trading Commission (Commission) has proposed regulations that would facilitate notice-designation as a contract market in security futures products (SFPCM) by a national securities exchange (NSE), a national securities association, or an alternative trading system. The rules were proposed pursuant to the mandate of section 5f of the Commodity Exchange Act (Act), as established by section 252(a) of the Commodity Futures Modernization Act of 2000.
In addition to establishing SFPCM notice-designation procedures, the proposed regulations would impose certain continuing filing obligations on SFPCMs, would exempt SFPCMs from the ordinary application requirements for contract markets under section 6(a) of the Act, and would provide SFPCMs with a procedure to apply for exemptions from any other provision(s) of the Act or regulations thereunder.
In proposing the rules the Commission has invited comment on a variety of related issues, including whether the Commission should exempt SFPCMs, by rule, from additional provisions of the Act or regulations thereunder. Comment is also requested regarding, among other things, whether the Commission's proposed approach to the treatment of SFPCMs sufficiently parallels a related proposal by the Securities and Exchange Commission, published at 66 FR 26977 (May 15, 2001).
The Commission's proposal was published in the Federal Register on May 31, 2001. Copies may be obtained by contacting the Office of the Secretariat, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100, or by accessing the Commodity Futures Trading Commission website. Comments on the proposed rule must be received by the Commission's Office of the Secretariat on or before July 2, 2001.