Release: #4530-01
For Release: June 21, 2001

CFTC Issues Order Concerning Treatment of Customer Funds Held in Connection with Products Traded on MEFF and Cleared by CME 

Washington -- The Commodity Futures Trading Commission (Commission) has issued an Order [ HTML or PDF ] pursuant to sections 4(b) and 4d of the Commodity Exchange Act (Act) and Commission rule 30.10 permitting clearing members of the Chicago Mercantile Exchange (CME) to commingle in a single account the funds received from customers trading on or through designated contract markets (DCMs) or derivatives transaction execution facilities (DTFs) with those funds received in connection with the CME’s clearing of certain products traded on or through the MEFF Sociedad Rectora de Productos Financieros Derivados de Renta Variable (MEFF), a futures and options exchange located in Spain. The CME has entered into an arrangement with MEFF, known as the Master Agreement, to clear certain products listed on MEFF, including futures contracts on the S&P Euro and S&P Europe 350 stock indices.

Absent such an Order, CME clearing members operating pursuant to the Master Agreement would be required to hold customer funds attributable to trading MEFF products in one account and customer funds attributable to trading on DCMs or DTFs in a second account. In response to a request from the CME and subject to the terms and conditions set forth in the Order, the Commission has determined to permit CME clearing members to commingle in a single account customer funds attributable to both domestic and foreign trading. 

Copies of the Order [ HTML or PDF ] 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 Commodity Futures Trading Commission’s website.