CFTC To Hold Public Meeting Relating to the Application of Cantor Financial Futures Exchange For Designation as Contract Market

Release: #4174-98
For Release: July 30, 1998

CFTC TO HOLD PUBLIC MEETING RELATING TO THE APPLICATION OF CANTOR FINANCIAL FUTURES EXCHANGE FOR DESIGNATION AS A CONTRACT MARKET

Entities Wishing to Appear Before the Commission Must Submit a Request by August 6, 1998

The Commodity Futures Trading Commission (Commission) announced today that it will convene a public meeting in its first floor Hearing Room at 2:00 p.m. on Tuesday, August 11, 1998, at which interested members of the public may appear to give oral and written statements relating to the Commission's consideration of the application of Cantor Financial Futures Exchange (CFFE) to be designated 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 has been formed pursuant to an agreement between the New York Cotton Exchange (NYCE) and CFFE, LLC, a subsidiary of Cantor Fitzgerald, LP (Cantor). Under the agreement, CFFE trading would be conducted on the same trading system that another Cantor subsidiary, Cantor Fitzgerald Securities, LLC, currently operates as an interdealer-broker in the US Treasury securities market. CFFE's regulatory responsibilities would be handled by NYCE and all CFFE trades would be cleared and settled by the Commodity Clearing Corporation (CCC), which is wholly owned by NYCE.

In its previous requests for comment on CFFE's application [63 FR 5505 (February 3, 1998), 63 FR 35912 (July 1, 1998)], the Commission described CFFE's application, including its provisions regarding CFFE's governance structure, trade matching algorithm, compliance program, and disciplinary and arbitration procedures. Persons appearing before the Commission are invited specifically to address these and any other 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, and to provide relevant factual data.

All individuals or organizations wishing to appear before the Commission should submit their requests and a concise written statement of interest and qualifications, along with a brief written summary or abstract of the content of his or her statement by August 6, 1998, to the Office of the Secretariat, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581; transmit by facsimile to (202) 418-5521; or transmit electronically to [[email protected]]. Reference should be made to "Cantor Financial Futures Exchange Meeting." The Commission will invite a representative number of individuals or organizations to appear from those submitting such statements.

Notice of the public meeting will also be published in the Federal Register. Copies of that notice may be obtained by contacting the Commission's Office of the Secretariat or by accessing the Commission's website, www.cftc.gov.