CFTC Denies OCC Rule Amendment

The Commodity Futures Trading commission (CFTC) today issued a Notice of Non-Approval of a rule amendment submitted by the Options Clearing Corporation (OCC). The OCC rule amendment would have treated foreign currency contracts where the exercise price is fixed at a nominal amount, such as one cent, as securities options, provided that the CFTC took the position that such contracts may be traded and cleared as such. The CFTC found that the contracts are the economic and functional equivalents of foreign currency futures contracts and are not bona fide option