For Release:May 7, 1997

CFTC Grants a Dual Trading Exemption to the Comex Division of the New York Mercantile Exchange

The Commodity Futures Trading Commission (Commission) has issued an Opinion and Order granting a Dual Trading Exemption to the Comex Division (Comex) of the New York Mercantile Exchange.

The Commission has completed its review of the Comex's petition for exemption from the Commodity Exchange Act's (Act) dual trading prohibition for its gold and silver futures contracts. The dual trading prohibition forbids a floor broker from executing trades both for himself or herself and for customers in the same contract during a trading session.

Subject to Comex's continuing ability to demonstrate that it meets applicable requirements, the Commission has determined that Comex maintains a trade monitoring system which is capable of detecting and deterring, and is used on a regular basis to detect and to deter, violations attributable to dual trading and, to the extent feasible, other violations involving the making of trades and execution of customer orders, as required by section 5a(b) of the Act and regulation 155.5. The Commission further has determined that Comex's trade monitoring system includes audit trail and recordkeeping systems that satisfy the Act and regulations.

A copy of the Opinion and 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.