[Federal Register Volume 61, Number 91 (Thursday, May 9, 1996)]
[Notices]
[Pages 21162-21163]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-11605]



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COMMODITY FUTURES TRADING COMMISSION


Proposed Amendments to Chicago Mercantile Exchange Rules 151--
Electronic Trading Hours (ETH) Permit Program, and 575--CME/MATIF 
Cross-Exchange Trading

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed amendments to Chicago Mercantile Exchange 
rules giving commodity trading advisors access to GLOBEX terminals.

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[[Page 21163]]

SUMMARY: The Chicago Mercantile Exchange (``CME'') has submitted 
proposed rule amendments which would institute a six-month pilot 
program to permit commodity trading advisors (``CTAs'') to obtain 
GLOBEX terminals to trade for their proprietary accounts and the 
accounts that they manage. Acting pursuant to the authority delegated 
by Commission Regulation 140.96, the Division of Trading and Markets 
has determined to publish the CME's proposal for public comment. The 
Division believes that publication of the CME's proposal is in the 
public interest and will assist the Commission in considering the views 
of interested persons.

DATES: Comments must be received on or before May 30, 1996.

FOR FURTHER INFORMATION CONTACT: France M.T. Maca, Special Counsel, 
Division of Trading and Markets, Commodity Futures Trading Commission, 
1155 21st Street NW, Washington DC 20581. Telephone: (202) 418-5482.

SUPPLEMENTARY INFORMATION:

I. Description of Proposed Rule Amendments

    By letter dated April 15, 1996, the CME submitted proposed 
amendments to CME Rules 151 and 575 pursuant to Section 5a(a)(12) of 
the Commodity Exchange Act (``Act'') and Commission Regulation 1.41(c). 
Revised proposed amendments were submitted by letter dated April 25, 
1996.
    On June 25, 1992, the CME began offering its contracts for trading 
through Globex. Pursuant to CME Rule 151, individuals may obtain an 
Electronic Trading Hours (``ETH'') permit authorizing them to trade CME 
contracts for their own account on a GLOBEX terminal without having to 
become CME members.<SUP>1 Under the proposed amendments, CTA firms also 
could obtain an ETH permit.<SUP>2 CTAs holding an ETH permit would be 
authorized to trade for both their proprietary accounts and the 
accounts they manage.<SUP>3 The proposed amendments make clear that a 
CTA firm's ETH permit could be transferred among the CTA's employees 
with the approval of the CME Membership Committee and board of 
directors, and that all employees of the permit holder who enter orders 
on GLOBEX terminals would be subject to applicable CME rules.
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    \1\ While not required to become CME members, persons applying 
for an ETH permit must go through a process identical to the 
membership approval process, and, upon issuance, become subject to 
applicable CME rules. There are currently ten ETH permit holders.
    \2\ The submission dated April 15 would have required CTAs 
applying for ETH permits to be registered as such with the National 
Futures Association (``NFA''). The submission dated April 25 deletes 
the registration requirement ``to allow foreign CTAs who are not 
required to register with the NFA to obtain access to GLOBEX 
terminals.'' The submission states that the proposed amendments 
would not affect any CTA registration requirement.
    \3\ Individuals would continue to be limited to trading solely 
for their own accounts.
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    Rule 575.B currently allows CME members to obtain cross-exchange 
access to contracts listed on GLOBEX by MATIF, the French futures 
exchange. The proposed amendments would extend this privilege to all 
``individuals and firms with access to GLOBEX terminals for trading CME 
contracts,'' thus including ETH permit holders.

II. Request for Comments

    Comment is requested on any aspect of the Proposal that members of 
the public believe may raise issues under the Act or Commission 
regulations.
    Copies of the submission and related material are available for 
inspection at the Office of the Secretariat, Commodity Futures Trading 
Commission, Three Lafayette Center, 1155 21st. Street NW, Washington, 
DC 20581. Copies also may be obtained through the Office of the 
Secretariat at the above address or by telephoning (202) 418-5100. Some 
materials may be subject to confidential treatment pursuant to 17 CFR 
145.5 or 145.9.
    Any person interested in submitting written data, views, or 
arguments on the proposal should send such comments to Jean A. Webb, 
Secretary, Commodity Futures Trading Commission, Three Lafayette 
Center, 1155 21st Street NW, Washington, DC 20581, by the specified 
date.

    Issued in Washington, DC, on May 3, 1996.
Alan L. Seifert,
Deputy Director.
[FR Doc. 96-11605 Filed 5-8-96; 8:45 am]
BILLING CODE 6351-01-P