Commodity Futures Trading Commission April 2006 – Federal Register Recent Federal Regulation Documents

The Commodity Futures Trading Commission is making technical corrections to Footnotes 5 and 6 which were published in the Federal Register on April 18, 2006 (71 FR 19877). The footnotes are revised as follows: Footnote 5: The Statement of Policy did not apply to broad-based stock index futures and option contracts that are now covered by Section 2(a)(1)(C) of the Commodity Exchange Act. Foreign boards of trade were (and presently are) required to seek and receive written supplemental no-action relief from Commission staff prior to offering or selling such contracts through U.S.-located trading systems. Footnote 6: This notice of revision will not alter a foreign board of trade's obligation to seek and receive written supplemental no- action relief from Commission staff prior to offering or selling broad- based securities index futures and option contracts through U.S.- located trading systems.

The Commodity Futures Trading Commission (``CFTC'') and the Securities and Exchange Commission (``SEC'') (together, the ``Commissions'') are proposing to adopt a new rule and to amend an existing rule under the Commodity Exchange Act (``CEA'') and to adopt two new rules under the Securities Exchange Act of 1934 (``Exchange Act''). These proposed rules and rule amendments would exclude from the definition of ``narrow-based security index'' debt securities indexes that satisfy specified criteria. A future on a debt securities index that is excluded from the definition of ``narrow-based security index'' would not be a security future and could trade subject to the exclusive jurisdiction of the CFTC. In addition, the proposed rules would expand the statutory listing standards requirements to permit security futures to be based on debt securities, including narrow-based security indexes composed of debt securities.