[Federal Register: August 10, 1998 (Volume 63, Number 153)]
[Notices]
[Page 42617]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10au98-34]


[[Page 42617]]

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COMMODITY FUTURES TRADING COMMISSION


Applications of the CME for Designation as a Contract Market in
Futures and Options on Three Month Eurodollar FRAs

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of terms and conditions of proposed
commodity futures and option contracts.

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SUMMARY: The Chicago Mercantile Exchange (CME or Exchange) applied for
designation as a contract market in futures and options on three month
Eurodollar FRAs (forward rate agreements). The Director of the Division
of Economic Analysis (Division) of the Commission, acting pursuant to
the authority delegated by Commission Regulation 140.96, has determined
that publication of the proposals for comment is in the public
interest, will assist the Commission in considering the views of
interested persons, and is consistent with the purposes of the
Commodity Exchange Act.

DATE: Comments must be received on or before September 9, 1998.

ADDRESSES: Interested persons should submit their views and comment to
Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Centre, 21st Street, NW Washington, DC 20581. In addition,
comments may be sent by facsimile transmission to facsimile number
(202) 418-5521, or by electronic mail to [email protected] Reference
should be made to the CME three month Eurodollar FRA futures and option
contracts.

FOR FURTHER INFORMATION, CONTACT: Please contact Michael Penick of the
Division of Economic Analysis, Commodity Futures Trading Commission,
Three Lafayette Centre, 21st Street NW, Washington, DC 20581, telephone
(202) 418-5279. Facsimile number: (202) 418-5527. Electronic mail:
[email protected]

SUPPLEMENTARY INFORMATION: According to the CME, the proposed contracts
differ from the existing three-month Eurodollar futures and option in
that:

    [The proposed] Eurodollar FRA futures contracts are not subject
to daily pay and collects based on the daily settlement price.
Hence, Eurodollar FRA futures contracts are not subject to Rule
814--Settlement to Settlement Price Daily. All pays and collects for
a Eurodollar FRA futures contract occur on the final settlement
date. A Forward Rate Agreement (FRA) is a contract specifying
payments based on differences between an agreed upon interest rate
and a future and an uncertain interest rate. Pays and collects for
Forward Rate Agreements in the over-the-counter market also occur on
the final settlement date of the contract. Thus, the proposed
futures contract will be an easy transition for FRA traders.

    Copies of the terms and conditions will be available for inspection
at the Office of the Secretariat, Commodity Futures Trading Commission,
Three Lafayette Centre, 21st Street, NW, Washington, DC 20581. Copies
of the terms and conditions can be obtained through the Office of the
Secretariat by mail at the above address or by phone at (202) 418-5100.
    Other materials submitted by the CME in support of the applications
for contract market designations may be available upon request pursuant
to the Freedom of Information Act (5 U.S.C. 552) and the Commission's
regulation thereunder (17 C.F.R. Part 145 (1997)), except to the extent
they are entitled to confidential treatment as set forth in 17 C.F.R.
145.5 and 145.9. Requests for copies of such materials should be made
to the FOI, Privacy and Sunshine Act Compliance Staff of the Office of
Secretariat at the Commission's headquarters in accordance with 17
C.F.R. 145.7 and 145.8.
    Any person interested in submitting written data, views, or
arguments on the proposed terms and conditions, or with respect to
other materials submitted by the CME should send such comments to Jean
A. Webb, Secretary, Commodity Futures Trading Commission, Three
Lafayette Centre, 21st Street NW, Washington, DC 20581 by the specified
date.

    Issued in Washington, DC, on August 3, 1998.
Steven Manaster,
Director.
[FR Doc. 98-21264 Filed 8-7-98; 8:45 am]
BILLING CODE 6351-01-M


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