**Release:
    ��������������������
    #4284-99****For Release:
    ������������
    June 30, 1999**

**Merrill Lynch International, Inc.
    And Merrill Lynch Pierce Fenner & Smith (Brokers & Dealers), Ltd.
    Pay $15 Million To Settle Charges Of Aiding And Abetting Manipulation Of
    The Copper Market**

**CFTC Finds That Firms Provided Credit And Finance, Trading
    Facilities And Advice To Manipulators**
     The Commodity Futures Trading Commission (CFTC) announced today that it
    has settled an administrative enforcement action filed on May 20, 1999, as
    to Merrill Lynch International, Inc. and Merrill Lynch Pierce Fenner &
    Smith (Brokers & Dealers), Ltd. (See CFTC News Release
    #4265-99). The CFTC ordered the companies to pay a civil monetary
    penalty of $15 million and to cease and desist from violating and aiding
    and abetting violations of �� 6(c), 6(d) and 9(a)(2), the
    anti-manipulation provisions of the Commodity Exchange Act (Act). The
    settlement also requires Merrill Lynch to cooperate with the CFTC in
    proceedings and any investigations related to this matter, and dismisses
    the action as to a third Respondent, Merrill Lynch & Co., Inc.
     In announcing the settlement and
    order, CFTC Acting Chairman David Spears stated:*"Today's Order demonstrates that the CFTC stands ready to take stern
    action against those who would assist others in manipulating U.S. futures
    and commodity prices. The Commission's Order sends an important message to
    market participants and their brokers that* aiding and abetting
    manipulation of *U.S. markets will be met with appropriate
    sanctions."*
     Without admitting or denying the allegations of the Complaint or the
    findings contained in the Order, Merrill (B&D) and Merrill
    International consented to the entry of the Order, which finds that they
    aided and abetted violations of the anti-manipulation provisions of the Act
    during the fourth quarter of 1995. More specifically, the Order finds that
    the firms aided and abetted the manipulators (Sumitomo Corporation of Japan
    and others) in at least the following ways:

- by providing more than one half billion dollars of credit and finance
      to the manipulators, which the manipulators used to purchase and hold a
      dominant position in futures contracts and London Metal Exchange
      warehouse stocks of copper;
- by providing trading facilities, accounts, and trading capacity
      through which the manipulators acquired their dominant position in a
      combination of futures contracts and warehouse stocks, and through which
      the manipulators sold or lent a small portion of their holdings at
      artificially high absolute prices and artificially high backwardated
      spread price differentials; and
- by providing trading advice which the manipulators used in the
      execution of their strategy of withholding their copper from the
      market.

The Order states that Merrill (B&D) and Merrill International
    possessed the requisite knowledge and intent to find that they aided and
    abetted the manipulators' violations. In addition, the Order finds that the
    Merrill (B&D) benefited from the manipulation by providing financing,
    trading facilities and credit to the manipulators, and by earning profits
    through its proprietary trading.
     Phyllis Cela, Acting Director of the Division of Enforcement, commented on
    the settlement:*"The Order provides important guidance to the commodity markets about
    the boundaries of lawful conduct, particularly where trading strategies
    cross markets and borders. We recognize and thank the United Kingdom's
    Financial Services Authority, the Securities and Futures Authority and the
    London Metal Exchange for their ongoing assistance and
    cooperation."*
     The allegations in the complaint against Global Minerals & Metals
    Corporation, David Campbell, and Carl Alm for manipulation and attempted
    manipulation remain pending.
     On May 11, 1998, the CFTC issued an opinion and order accepting an offer
    of settlement from Sumitomo Corporation finding that Sumitomo had violated
    the Act by manipulating the copper market, and imposing sanctions,
    including a cease and desist order and civil monetary penalty of $125
    million. The Order also established a restitution fund of an additional $25
    million, that has since been distributed to victims of the market
    manipulation. (See In the Matter
    of Sumitomo Corporation, CFTC Docket No. 98-14 and CFTC News Release
    #4144-98, May 11, 1998.)**��**
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