MEMORANDUM

TO: The Commission

FROM: Division of Trading and Markets

RE: Application of the Cantor Financial Futures Exchanges for Designation as a Contract Market in the US Treasury Bond Futures Contract, the US Treasury Ten-year Note Futures Contract, the US Treasury Five-year Note Futures Contract, and the US Treasury Two-year Note Futures Contract

RECOMMENDATION: That the Commission designate the Cantor Financial Futures Exchange as a contract market in the US Treasury bond futures contract, the US Treasury ten-year note futures contract, the US Treasury five-year note futures contract, and the US Treasury two-year note futures contract, and approve the Cantor Financial Futures Exchange's proposed By-Law Scope Section; proposed By-Law Sections 1-5, 7-27, and 29-40; and proposed Rules 1-24, 26-37, 100-103, 200-202, 300-312, 314-316, 401, 403, 500, 501, 600, 710-714, 716-725, and 820-846; proposed amendments to Commodity Clearing Corporation By-Law Sections 9-B and 20-A and Rules 3, 11 and 12; and proposed amendments to New York Cotton Exchange Consolidated Rules 6.00, 6.04, 6.05, 6.06, 6.09, 8.00, 8.01, 8.04, and 10.01 and Chapter 10 Scope Section, pursuant to Section 5a(a)(12)(A) of the Commodity Exchange Act.

CONSULTED: Division of Economic Analysis

Division of Enforcement

Office of the Executive Director

Office of the General Counsel

STAFF CONTACTS: David P. Van Wagner (x5481)

Adam E. Wernow (x5042)