Release:              #4240-99
For Release:         March 3, 1999

CFTC Issues an Order Granting a Dual Trading Exemption to the Chicago Board of Trade's Treasury Bond Futures Contract on its Project A Electronic Trading System

On February 26, 1999, the Commodity Futures Trading Commission (Commission) issued an Order granting an exemption from the statutory dual trading prohibition to the Chicago Board of Trade (CBT) for its U.S. Treasury Bond (T-Bond) futures contract traded on CBT's Project A electronic trading system. This is the first contract trading on an electronic market to receive such an exemption. For purposes of the dual trading prohibition, the Commission considers an electronically traded contract separately from a contract market in the same commodity traded by open outcry.

Subject to CBT's continuing ability to demonstrate that it meets applicable requirements, the Commission has determined, with respect to CBT's electronically traded T-Bond contract, that CBT maintains a trade monitoring system which is capable of detecting and deterring, and is used on a regular basis to detect and deter, all types of violations attributable to dual trading and, to the full extent feasible, all other types of trading violations, as required by section 5a(b) of the Act and Commission regulation 155.5. In issuing the Order, the Commission specifically took into account the ability of the Project A electronic trading system to provide a precise, comprehensive, and unalterable audit trail. The electronic audit trail appears to reduce the opportunity for trading abuse, and facilitates the detection and prosecution of any possible wrongdoing that may occur.

The Order will be published shortly in the Federal Register. Copies of the Order 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 Commission's website at