[Federal Register: August 3, 1998 (Volume 63, Number 148)]
[Page 41233]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]



Application of Cantor Financial Futures Exchange as a Contract
Market in US Treasury Bond, Ten-Year Note, Five-Year Note, and Two-Year
Note Futures Contracts

AGENCY: Commodity Futures Trading, Commission

ACTION: Notice of public meeting.


TIME AND DATE: Tuesday, August 11, 1998, from 2:00 to 4:00 PM.

PLACE: 1155 21st St., N.W., Washington, D.C. Lobby Level Hearing Room
located at Room 1000.


SUMMARY: Notice is hereby given that the Commodity Futures Trading
Commission ("Commission") will convene a public meeting at which
interested members of the public may appear before it to give oral and
written statements relating to the Commission's consideration of the
application of Cantor Financial Futures Exchange ("CFFE" or
"Exchange") to be designated as a contract market for the computer-
based trading of US Treasury bond, ten-year note, five-year note, and
two-year note futures contracts.

ADDRESSES: Requests to appear and statements of interest should be
mailed to the Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21 Street, N.W., Washington, D.C. 20581, attention Office
of the Secretariat; transmitted by facsimile at (202) 418-5521; or
tarnsmitted electronically to [[email protected]]. Reference should be
made to "Cantor Financial Futures Exchange Meeting."

FOR FURTHER INFORMATION CONTACT: David P. Van Wagner, Special Counsel,
Division of Trading and Markets, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581,
Telephone number: (202) 418-5481; Electronic mail: [email protected];
or contact Adam E. Wernow, Attorney-Advisor; Division of Trading and
Markets, at the same address, Telephone number: (202) 418-5042,
Electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: CFFE, a New York not-for-profit corporation,
has applied to the Commission 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 contracts. CFFE has been formed
pursuant to an agreement between the New York Cotton Exchange
("NYCE") and CFFE, LLC, a subsidiary of Cantor Fitzgerald, LP
("Cantor"). Under the agreement, CFFE trading would be conducted on
the same trading system that another Cantor subsidiary, Cantor
Fitzgerald Securities, LLC ("CFS"), currently operates as an
interdealer-broker in the US Treasury securities market. CFFE's
regulatory responsibilities would be handled by NYCE. CFFE trades would
be cleared and settled by the Commodity Clearing Corporation ("CCC`')
which is wholly owned by NYCE.
    CFFE has not previously been designated by the Commission as a
contract market in any commodity. Accordingly, in addition to the terms
and conditions of the proposed futures contracts, the Exchange has
submitted to the Commission a proposed trade-matching algorthm;
proposed rules pertaining to CFFE governance, disciplinary and
arbitration procedures, trading standards and recordkeeping
requirements; and various other materials to meet the requirements for
a board of trade seeking initial designation as a contract market.
    Notice of CFFE's application was previously published on February
3, 1997 (63 FR 5505) for a comment period ending on April 6, 1998. That
comment period was later extended until April 27, 1998 (63 FR 17823
(April 10, 1998)). After the closing of that comment period, the
Exchange submitted to the Commission additional materials which revised
or further explicated certain features of its proposal. Accordingly,
the Commission published CFFE's application again on July 1, 1998 (63
FR 35912) for an additional comment period ending July 16, 1998, so
that the public could review and comment on the Exchange's additional
    The Commission is of the view that, in addition to the receipt of
written comments, an opportunity for interested members of the public
to appear before it will assist it in its consideration of CFFE's
application and is in the public interest. Accordingly, the Commission
will convene a public meeting on August 11, 1998, for that purpose.
    In its requests for comment, 63 FR 5505 (February 3, 1998), 63 FR
35912 (July 1, 1998), the Commission described CFFE's application,
including its provisions regarding CFFE's governance structure, trade
matching algorithm, compliance program, and disciplinary and
arbitration procedures. Persons appearing before the Commission are
invited specifically to address those, and any other 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, and to provide
relevant factual data.
    All individuals or organizations wishing to appear before the
Commission should submit to the Commission at the above address, by
August 6, 1998, a concise written statement of interest and
qualifications and a brief written summary or abstract of the content
of his or her statement. The Commission will invite a representative
number of individuals or organizations to appear from those submitting
such statements. A transcription of the meeting will be made and
entered into the Commission's public comment files.

    Issued in Washington, D.C., this 30th day of July, 1998.

    By the Commodity Futures Trading Commission.
Catherine D. Dixon,
Assistant Secretary of the Commission.
[FR Doc. 98-20787 Filed 7-31-98; 8:45 am]

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