Release: #4156-98
For Release: June 11, 1998

CFTC AMENDS ITS NET CAPITAL RULE TO ELIMINATE

THE SHORT OPTION VALUE CHARGE AGAINST

THE CAPITAL OF AN FCM

Washington, D.C. --The Commodity Futures Trading Commission (Commission) announced today that it has amended its minimum financial requirements for futures commission merchants (FCMs). The amendment eliminates the "short option value charge" presently required by Commission rule 1.17(c)(5)(iii) to be taken by FCMs in the computation of their net capital. The charge is currently four percent of the market value of options carried short in the customer accounts of an FCM.

The final rule amendment adopted by the Commission is the same as the proposed rule amendment published in the Federal Register on March 9, 1998. The rule amendment will become effective 30 days after publication in the Federal Register. Copies of the amendment may be obtained by writing the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21^st Street, N.W., Washington, D.C., 20581, by calling (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.