For Release: December 21, 1995
CFTC EXTENDS COMMENT PERIOD
FOR AGRICULTURAL TRADE OPTIONS
Washington, D.C. -- The Commodity Futures Trading Commission announced today that it will hold open the record concerning its prohibition on agricultural trade options until January 18, 1996.
At a public roundtable held on Tuesday, December 19, 1995, the Commission brought together a diverse group of commodity option and agricultural experts, regulators, academics and market users to exchange views regarding the prohibition on agricultural trade options. In particular, the Commission was interested in hearing discussion of:-
the purposes served by, and benefits of, continuing the prohibition on agricultural trade options;-
the costs entailed by continuing the prohibition;-
the purposes of, and possible benefits to be derived from, lifting the prohibition;-
the costs entailed in lifting the prohibition;-
the possible uses of trade options on certain domestic agricultural commodities, if permitted;-
the possible problems of permitting the offer and sale of such instruments; and-
the possible impact of lifting the prohibition on price discovery and producers' cash prices.
All individuals or organizations wishing to submit written views on these issues for inclusion in the Commissions' record should submit their written statements to Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581 by January 18, 1996.