Release: 4949-04
For Release: July 01, 2004

CFTC Proposes Amendments to Regulation 1.38 and to its Guidance on Execution of Transactions off the Centralized Market

Washington, D.C. -- As part of its continuing efforts to update its regulations in light of the Commodity Futures Modernization Act of 2000 (CFMA), the U.S. Commodity Futures Trading Commission (CFTC) is proposing to revise its regulation concerning trading off the centralized market and to add guidance on contract market block trading rules.

The proposal would amend regulation 1.38 to simplify its language and update its requirements, including adding language expanding allowable transactions that may be executed off of a designated contract market’s (DCMs) centralized marketplace in accordance with the CFMA. The proposal also would rearrange and amend the Commission’s guidance for compliance with Core Principle 9 (Execution of Transactions). The proposed guidance for DCM transactions on the centralized market would be separated from guidance provided for DCM transactions off the centralized market, and would provide more detailed information concerning acceptable practices for transactions executed off the centralized market.

The proposed rule amendments will be published in the Federal Register with a 60-day comment period. Copies may be obtained by contacting the Commission’s Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100 or by accessing the Commission’s website, www.cftc.gov. Interested parties may submit their comments electronically at [email protected]. All comments received will be promptly posted on the Commission's website.

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Alan Sobba (202) 418-5080
R. David Gary (202) 418-5085
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