[Federal Register Volume 62, Number 157 (Thursday, August 14, 1997)]
[Notices]
[Pages 43517-43518]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-21520]


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COMMODITY FUTURES TRADING COMMISSION


Notice of Availability; Chicago Mercantile Exchange Proposed 
Amendments to the Standard & Poor's 500 Stock Price Index Futures and 
Futures Option Contracts and the E-Mini Standard and Poor's 500 Stock 
Price Index Futures and Option Contracts

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of availability of proposed amendments to the multiplier 
and minimum price fluctuation provisions in the Standard & Poor's 500 
Stock Price Index futures and futures option contracts and the minimum 
price fluctuation provisions in the E-Mini Standard and Poor's 500 
Stock Price Index futures and option contracts.

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SUMMARY: The Chicago Mercantile Exchange (CME) has submitted proposed 
amendments to halve the multiplier in the Standard & Poor's 500 Stock 
Price Index (S&P 500) futures contract and to double the minimum price 
fluctuation in the S&P 500 futures and option contracts. The CME also 
has submitted proposed amendments to increase the minimum price 
fluctuation limit in the E-Mini Standard & Poor's 500 Stock Price Index 
(E-Mini S&P 500) futures and futures option contracts. 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.

DATES: Comments must be received on or before August 29, 1997.

ADDRESSES: Interested persons should submit their views and comments to 
Jean A. Webb, Secretary, Commodity Futures Trading Commission, 1155 
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 <a href="/cdn-cgi/l/email-protection#d9aabcbaabbcadb8aba099babfadbaf7beb6af"><span class="__cf_email__" data-cfemail="1b687e78697e6f7a69625b787d6f78357c746d">[email protected]</span></a>. Reference should be made to the 
proposed amendments to the index multiplier and minimum tick provisions 
of the S&P 500 futures and futures option contracts and the minimum 
tick provisions of the E-Mini S&P 500 futures and option contracts.

FOR FURTHER INFORMATION CONTACT: Please contact Thomas Leahy of the 
Division of Economic Analysis, Commodity Futures Trading Commission, 
1155 21st Street NW., Washington, DC 20581, telephone 202-418-5278. 
Facsimile number: (202) 418-5527. Electronic mail: <a href="/cdn-cgi/l/email-protection#e1958d84808998a182879582cf868e97"><span class="__cf_email__" data-cfemail="a2d6cec7c3cadbe2c1c4d6c18cc5cdd4">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: The CME proposes to halve the contract size 
of the S&P 500 futures contract by reducing the index multiplier to 
$250 times the S&P 500 from $500 times the S&P 500. The CME also 
proposes to increase the S&P 500 futures and option minimum price 
fluctuations to 0.10 index point from 0.05 index point, thus 
maintaining the dollar value of the minimum tick at $25.00 per 
contract. Under the proposal, the unit of trading in the S&P 500 
futures option contract would be two S&P 500 futures contracts. Thus, 
the S&P 500 futures option would be exercisable into two futures 
contracts. The CME has represented that it intends to implement these 
amendments in October or November 1997 for application to existing and 
newly listed contract months beginning with the December 1997 
contracts.
    Separately, the CME proposes to increase the size of the minimum 
price fluctuation in the E-Mini S&P 500 futures and option contracts to 
0.25 index point ($12.50 per contract) from 0.10 index point ($5.00 per 
contract). Those amendments would be implemented, for newly listed 
contract months only, at the time the E-Mini S&P 500 futures and option 
contracts are listed for trading.
    In support of its proposal to apply the proposed S&P 500 futures 
and option contract amendments to existing contracts, the CME stated 
that sufficient advance notice would be provided to those who choose to 
offset their positions. Further, the CME stated that,

[[Page 43518]]

because of the nature of a competitive marketplace, ``commission and 
brokerage rates will fall to one half of their current levels,'' 
although ``the extent and rate of decline cannot be estimated with 
precision.'' Moreover, ``the users' all-in costs will be sufficiently 
reduced by the anticipated improvements in liquidity to more than 
offset any increases in commission and brokerage payments that may 
occur.''
    The Division specifically requests comment with regard to the CME 
proposal to apply the proposed amendments to the S&P 500 futures and 
option contracts to currently listed contract months. In addition, the 
Division requests comment on the proposal to double the minimum tick in 
the S&P 500 futures and futures option contracts to 0.10 index point, 
and the proposal to increase the minimum tick in the E-Mini S&P 500 
futures and option contracts to 0.25 index point.
    Copies of the proposed amendments will be available for inspection 
at the Office of the Secretariat, Commodity Futures Trading Commission, 
1155 21st Street, N.W., Washington, D.C. 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) 418-5097.
    Other materials submitted by the CME in support of the proposals 
may be available upon request pursuant to the Freedom of Information 
Act (5 U.S.C. 552) and the Commission's regulations thereunder (17 
C.F.R. part 145 (1987)), 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 the 
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 amendments, or with respect to other 
materials submitted by the CME should send such comments to Jean A. 
Webb, Secretary, Commodity Futures Trading Commission, 1155 21st 
Street, NW, Washington, DC 20581 by the specified date.

    Issued in Washington, DC, on August 8, 1997.
John Mielke,
Acting Director.
[FR Doc. 97-21520 Filed 8-13-97; 8:45 am]
BILLING CODE 6351-01-P


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