Release: #4160-98
For Release: June 26, 1998

CFTC Seeks Additional Public Comment on the Application of Cantor Financial Futures Exchange for Contract Market Designation

The Commodity Futures Trading Commission (Commission) has issued a notice seeking additional public comment on the application of the Cantor Financial Futures Exchange, Inc. (CFFE) for designation as a contract market for the computer-based trading of US Treasury bond, ten-year note, five-year note, and two-year note futures contracts.

CFFE, a New York not-for-profit corporation, has been formed pursuant to an agreement between the New York Cotton Exchange (NYCE) and CFFE, LLC, a wholly owned subsidiary of Cantor Fitzgerald, LP (Cantor). Under the agreement, CFFE trading would be conducted on a proprietary electronic order matching system operated by Cantor Fitzgerald Securities, another subsidiary of Cantor, and all CFFE regulatory matters would be handled by NYCE.

The Commission previously published CFFE's application for public comment on February 3, 1998 (63 Fed. Reg. 5505) with a comment deadline of April 6, 1998, and then extended that deadline until April 27, 1998 (63 Fed. Reg. 17823 (April 10, 1998)). Since the close of the initial comment period, CFFE has submitted to the Commission additional materials, information, and rule modifications in support of its designation application. These submissions address such issues as membership categories, roles of certain CFFE employees, automated order matching, trading standards, and compliance programs. CFFE has also proposed that the Commodity Clearing Corporation (CCC), a wholly owned subsidiary of NYCE, clear and settle CFFE transactions.

The Commission is seeking 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.

The notice will be published in the Federal Register shortly and comments must be received within 15 days of its publication. Copies of the notice and CFFE's proposal may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21^st Street, NW, Washington, D.C., 20581, (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.