For Release: June 11, 1998
CFTC AMENDS ITS NET CAPITAL RULE TO ELIMINATE
THE SHORT OPTION VALUE CHARGE AGAINST
THE CAPITAL OF AN FCM
Washington, D.C. --The Commodity Futures Trading Commission
(Commission) announced today that it has amended its minimum financial
requirements for futures commission merchants (FCMs). The amendment
eliminates the "short option value charge" presently
required by Commission rule 1.17(c)(5)(iii) to be taken by FCMs in the
computation of their net capital. The charge is currently four percent
of the market value of options carried short in the customer accounts
of an FCM.
The final rule amendment adopted by the Commission is the same as the proposed rule amendment published in the Federal Register on March 9, 1998. The rule amendment will become effective 30 days after publication in the Federal Register. Copies of the amendment may be obtained by writing the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C., 20581, by calling (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.