CFTC Seeks Public Comment On Clearing Corporation Proposal To Clear Eurex Transactions

The Commodity Futures Trading Commission (CFTC) has published for public comment a request from The Clearing Corporation (TCC) to permit implementation of the first phase of a Global Clearing Link between TCC and Eurex Clearing AG. According to the request, U.S. customers would be able, upon implementation of this first phase, to clear through TCC clearing members futures and options traded on Eurex Frankfurt AG based on the German Bund, Bobl, and Schatz, as well as on the DAX and Dow Jones Euro STOXX 50.

TCC is a derivatives clearing organization (DCO) registered with the CFTC pursuant to the Commodity Exchange Act (“Act”). TCC has requested that the CFTC take action to permit TCC and participating futures commission merchants (FCMs) to establish and maintain combined original margin and variation settlement accounts for both U.S. Dollar-denominated contracts traded on Eurex US and Euro-denominated futures and options positions traded on Eurex Frankfurt AG. Absent CFTC action permitting it, such commingling of customer assets supporting positions on a U.S. contract market with those executed on an overseas derivatives market is prohibited by Section 4d of the Act.

The request can be viewed on the Commission’s website at http://www.cftc.gov/dea/deapendingindustryfilings.htm - commissionaction. Interested parties may submit comments on or before Friday, May 14, 2004, by filing them electronically to submissions@cftc.gov.. All comments received will be posted on the Commission’s website.