UNITED STATES OF AMERICA

Before the

COMMODITY FUTURES TRADING COMMISSION

_____________________________________

In the Matter of the Application of the Cantor )

Financial Futures Exchange for Designation )

as a Contract Market in the U.S. Treasury )

Bond Futures Contract )

ORDER OF DESIGNATION

The Cantor Financial Futures Exchange ("CFFE") having submitted, pursuant to Section 6 of the Commodity Exchange Act ("Act"), 7 U.S.C. 8, an application for designation as a contract market in the U.S. Treasury bond futures contract and the Commodity Futures Trading Commission having reviewed the application and the complete record in this matter, and for the reasons set forth in the Division of Trading and Markets' September 1, 1998, memorandum to the Commission and the Division of Economic Analysis' August 28, 1998, memorandum to the Commission respectively recommending designation of this contract market, the Commission finds that for purposes of this application the CFFE has demonstrated compliance with the requirements of Section 5 of the Act, 7 U.S.C. 7, and the regulations thereunder. Therefore,

IT IS HEREBY ORDERED, under Section 5 of the Act, 7 U.S.C. 7, that the application of the CFFE for designation as a contract market in the U.S. Treasury bond futures contract is granted,

IT IS FURTHER ORDERED that this grant of designation shall be subject to compliance with all sections of the Act and regulations thereunder applicable to the CFFE as a contract market under the Act,

IT IS FURTHER ORDERED, under Commission Regulation 1.35(l), 17 C.F.R. 1.35(l), that CFFE, CFFE members and CFFE trading privilege holders be granted an exemption from the requirements of Commission Regulations 1.35(d), (j) and (k), 17 C.F.R. 1.35(d), (j) and (k),

IT IS FURTHER ORDERED that CFFE members and CFFE trading privilege holders who trade only for their proprietary accounts at CFFE shall not be deemed to be floor traders, under Commission Regulation 1.3(x), 17 C.F.R. 1.3(x), on the basis of that trading activity alone, and

IT IS FURTHER ORDERED that CFFE terminal operators may properly be deemed to have trading privileges at the New York Cotton Exchange for the purpose of such terminal operators' being eligible for floor broker registration status under Commission Regulation 3.11(a)(2).

Issued in Washington, D.C., this 4th day of September 1998.

By the Commission

____________________________

Jean A. Webb

Secretary of the Commission