35914 Federal Register / Vol. 63, No. 126 /Wednesday, July 1, 1998 / Notices

7The entire work up process would be conducted

through CFFE TOs who would enter each party’s

desired quantity into the Cantor System. The

System itself would automatically trigger the

alternating six-second exclusive period for each

party.

8TOs would receive and input orders from SBTs

and ATs and relay back trade confirmations. TOs

could not maintain any sort of order book or deck,

nor could they exercise any discretion over orders.

9CCC estimates that CFFE trades would be posted

on TIPS within fifteen minutes of their execution.

CFFE’s rules, accounts that placed such

responsive orders would be known as

‘‘aggressors.’’ Aggressors who placed

orders that hit all outstanding bids (take

all outstanding offers) in the Cantor

System at any particular time would be

permitted to engage in an exclusive

trading period with the best bidder

(offeror). During this exclusive trading

period, the aggressor and the best bidder

(offeror) would ‘‘work up’’ the quantity

for a trade at the previously-established

trade price. During this work up

process, each party would be given

alternating six-second periods either to

agree to do a transaction at the quantity

offered by the other party or to

counteroffer for some other quantity.

This work up process would continue

until the parties agreed to a transaction

quantity.7 During an exclusive trading

period, the Cantor System would accept

subsequent bids and offers at the same

price as the ongoing trade, and these

orders would be matched on a timepriority basis to the extent possible

immediately upon the conclusion of the

exclusive period. The CFFE would

provide an exclusive trading period to

participants who were earliest in

posting best market bids and offers and

to aggressors in order to create an

incentive for participants to place orders

at attractive prices and to provide

liquidity.

Upon the execution of a CFFE

transaction, the TO would provide an

oral confirmation of the trade to the

submitting SBT or AT by telephone and

the SBT or AT would record the details

of the trade on an order ticket.8 Upon

execution of a trade, the Cantor System

also would electronically transmit

matched-trade data to CCC for clearing

and settlement purposes. For each trade,

CCC would transmit transaction

information to the appropriate clearing

members via the Trade Input Processing

System (‘‘TIPS’’).9 Clearing members

would be required to accept or reject

each trade within thirty minutes of its

posting on TIPS.

The Cantor System also would

transmit relevant trade data to NYCE

each day for compliance and

surveillance purposes.

Since the Commission’s original

publication of the CFFE’s proposal for

comment, the Exchange has revised a

number of aspects of its proposal.

Among the revisions, the CFFE has

provided an extensive explanation of its

TOs’ responsibilities and restrictions

and has stated that it would register all

TOs with the Commission as floor

brokers. The Exchange also has created

a new membership category—Associate

Members—and has clarified that all

holders of CFFE trading privileges who

could execute customer orders would be

Commission registrants. In addition, all

trading privilege holders would, under

CFFE’s rules, be subjected to the

Commission’s Part 155 trading

standards. The Exchange also has

provided further explanation and

justification of its trade-matching

algorithm, including the procedures for

exclusive trading periods and marketcrossing sessions.

Finally, among the more significant

additions to its submission, the CFFE

has determined that the CCC, rather

than the New York Board of Clearing,

would clear and settle Exchange

transactions. It also has submitted an

extensive description of CFFE’s

compliance and surveillance programs

and the role of NYCE staff in

administering these programs.

III. Request for Comments

Any person interested in submitting

written data, views, or arguments on the

proposal to designate CFFE should

submit their views and comments by the

specified date to Jean A. Webb,

Secretary, Commodity Futures Trading

Commission, Three Lafayette Centre,

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 secretary@cftc.gov.

The Division seeks comment on all

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. Reference

should be made to the CFFE application

for designation as a contract market in

US Treasury bond, ten-year note, fiveyear note and two-year note futures

contracts. Copies of the proposed terms

and conditions are available for

inspection at the Office of the

Secretariat at the above address. Copies

also may be obtained through the Office

of the Secretariat at the above address or

by telephoning (202) 418–5100.

Other materials submitted by CFFE

and CCC may be available upon request

pursuant to the Freedom of Information

Act (5 U.S.C. 552), except to the extent

that they are entitled to confidential

treatment pursuant to 17 CFR 145.5 or

145.9. Requests for copies of such

materials should be made to the

Freedom of Information, Privacy and

Sunshine Act compliance staff of the

Office of the Secretariat at the

Commission headquarters in accordance

with 17 CFR 145.7 and 145.8.

Issued in Washington, DC, on June 25,

1998.

Alan L. Seifert,

Deputy Director.

[FR Doc. 98–17501 Filed 6–30–98; 8:45 am]

BILLING CODE 6351–01–U

COMMODITY FUTURES TRADING

COMMISSION

Membership of the Commission’s

Performance Review Board

AGENCY: Commodity Futures Trading

Commission.

ACTION: Membership Change of

Performance Review Board.

SUMMARY: In accordance with the Office

of Personnel Management guidance

under the Civil Service Reform Act of

1978, notice is hereby given that the

following employees will serve as

members of the Commission’s

Performance Review Board.

Chairperson: Linda Ferren, Executive

Director. Members: Susan G. Lee,

Executive Assistant to the Chairperson;

Daniel Waldman, General Counsel;

Steven Manaster, Director, Division of

Economic Analysis; Geoffrey Aronow,

Director, Division of Enforcement; I.

Michael Greenberger, Director, Division

of Trading and Markets.

DATES: This action will be effective on

July 1, 1998.

ADDRESSES: Commodity Futures Trading

Commission, Office of Human

Resources and Support Services, Three

Lafayette Centre, Suite 4100,

Washington, D.C. 20581.

FOR FURTHER INFORMATION CONTACT:

Ann Linnertz, Director, Office of Human

Resources and Support Services,

Commodity Futures Trading

Commission, Office of Human

Resources and Support Services, Three

Lafayette Centre, Suite 4100,

Washington, D.C. 20581, (202) 254–

3275.

SUPPLEMENTAL INFORMATION: This action

which changes the membership of the

Board supersedes the previously

published Federal Register Notice,

September 11, 1997.

Issued in Washington, D.C. on June 24,

1998.

Jean A. Webb,

Secretary to the Commission.

[FR Doc. 98–17498 Filed 6–30–98; 8:45 am]

BILLING CODE 6351–01–M