For Release: June 26, 1998
CFTC Seeks Additional Public Comment on the
Application of Cantor Financial Futures Exchange for Contract Market
The Commodity Futures Trading Commission (Commission) has issued a
notice seeking additional public comment on the application of the
Cantor Financial Futures Exchange, Inc. (CFFE) for designation as a
contract market for the computer-based trading of US Treasury bond,
ten-year note, five-year note, and two-year note futures
CFFE, a New York not-for-profit corporation, has been formed pursuant
to an agreement between the New York Cotton Exchange (NYCE) and CFFE,
LLC, a wholly owned subsidiary of Cantor Fitzgerald, LP (Cantor).
Under the agreement, CFFE trading would be conducted on a proprietary
electronic order matching system operated by Cantor Fitzgerald
Securities, another subsidiary of Cantor, and all CFFE regulatory
matters would be handled by NYCE.
The Commission previously published CFFE's application for public
comment on February 3, 1998 (63 Fed. Reg. 5505) with a comment
deadline of April 6, 1998, and then extended that deadline until April
27, 1998 (63 Fed. Reg. 17823 (April 10, 1998)). Since the close of the
initial comment period, CFFE has submitted to the Commission
additional materials, information, and rule modifications in support
of its designation application. These submissions address such issues
as membership categories, roles of certain CFFE employees, automated
order matching, trading standards, and compliance programs. CFFE has
also proposed that the Commodity Clearing Corporation (CCC), a wholly
owned subsidiary of NYCE, clear and settle CFFE transactions.
The Commission is seeking comment on all aspects of CFFE's
application for designation as a new contract market, as well as
CCC's proposal to serve as CFFE's clearing organization.
The notice will be published in the Federal Register shortly and comments must be received within 15 days of its publication. Copies of the notice and CFFE's proposal may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, NW, Washington, D.C., 20581, (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.