STATEMENT -- JANUARY 11, 1999
OFFICE OF COMMISSIONER BARBARA P. HOLUM
NEW YORK MERCANTILE EXCHANGE -- EXCHANGE OF FUTURES FOR SWAPS

  This statement is issued in conjunction with News Release Number 4228-99 of the Commodity Futures Trading Commission.

On January 7, 1999, the Commodity Futures Trading Commission approved the proposal of the New York Mercantile Exchange (Nymex) to permit the exchange of futures for swap agreements (EFS transactions). Commissioner Holum joined in the Commission's action to permit these transactions at Nymex but objected to Commission-imposed mandates limiting EFS transactions to pilot plan status and requiring special reporting. Commissioner Holum concluded that linking implementation of EFS transactions with these non-essential regulatory requirements would impose tangible economic costs without adequate regulatory benefits. Commissioner Holum's remarks are available from the CFTC web site.

Interested individuals may contact Commissioner Holum's office for additional information.