counter derivatives; concept release,

[Federal Register: September 17, 1998 (Volume 63, Number 180)]

[Proposed Rules]

[Page 49681-49682]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr17se98-16]

COMMODITY FUTURES TRADING COMMISSION

17 CFR Parts 34 and 35

Concept Release Concerning Over-the-Counter Derivatives

AGENCY: Commodity Futures Trading Commission.

ACTION: Extension of comment period on Concept Release.

SUPPLEMENTARY INFORMATION: The Commodity Futures Trading Commission (Commission) issued a Concept Release concerning over-the-counter derivatives on May 12, 1998 (63 FR 26114). Comments on the Concept Release were originally due on July 13, 1998, but the Commission extended the deadline until September 11, 1998 in response to a request for an extension from the Chicago Mercantile Exchange, the Futures Industry Association, and the Managed Futures Association. See 63 FR 34335 (June 24, 1998). In response to a new request by the Futures Industry Association, the Commission has determined to extend the comment period for an additional 30 days. The extended deadline for comments on the Concept Release is October 13, 1998.

Any person interested in submitting comments on the Concept Release should submit them by the specified date to Jean A. Webb, Secretary, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington DC 20581. In addition, comments may be sent by facsimile transmission to facsimile number (202) 418-5521, or by electronic mail to secretary@cftc.gov.

DATES: Comments must be received on or before October 13, 1998.

FOR FURTHER INFORMATION CONTACT: John Lawton, Associate Director, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington DC 20581. Telephone (202) 418-5430.

Issued in Washington, DC, on September 11, 1998 by the Commodity Futures Trading Commission. Jean Webb, Secretary of the Commission.

Remarks of Commissioner Barbara Pedersen Holum

Concurring in Part and Dissenting in Part

Federal Register Release Extending the Comment Period on the Concept Release Concerning Over-the-Counter Derivatives

I concur in the Commission decision to extend the comment period on the OTC Derivatives Concept Release, but dissent from the short 30-day extension in favor of a 384-day extension to September 30, 1999.

The Futures Industry Association (FIA) requested a 30-day extension of the comment period. However, John Damgard, President of FIA, was very supportive of the proposed 384-day extension for the comment period.

Extension of the subject comment period for 384 days could effectively preserve the status quo and, therefore, provide the standstill sought by the Congress and the industry until the comment period closes. The proposed comment period and 384 days would terminate on September 30, 1999, in

[[Page 49682]]

conformity with standstill legislation proposed by House Agriculture Committee Chairman Smith. This seriatim action will most likely be the final opportunity for the Commission to achieve a regulatory moratorium, in light of the Chairperson's refusal to provide the Commission with an opportunity to vote on this important public policy issue.

Extension of the comment period for a longer period is necessary to avoid the need for emergency legislation and to reassure the markets that the legal status of swap and hybrid transactions will not change without Congressional action.

Dated: September 11, 1998. Barbara Pedersen Holum, Commissioner.

[FR Doc. 98-24890Filed9-16-98; 8:45 am]

BILLING CODE 6351-01-M