Public Meetings

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 32

Public Meetings

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of public meetings.

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TIME AND DATES: 1:00-4:00 p.m., Thursday, July 10, 1997 (Bloomington,

Illinois) and 9:00 a.m.-12:00 noon, Wednesday, July 16, 1997 (Memphis,

Tennessee).

PLACE: July 10, 1997--Illinois State University, Bone Student Center,

(Corner of College & University), Old Main Room, Bloomington-Normal,

Illinois 61761, (309) 438-2222, and July 16, 1997--University of

Memphis, Fogelman Executive Center, Room 123, 330 Deloach St., Memphis,

Tennessee 38152, (901) 678-3635.

STATUS: Open.

SUMMARY: Notice is hereby given that the Commodity Futures Trading

Commission (``Commission'') will convene public meetings at which

interested members of the public may appear to present oral and written

statements relating to the Commission's consideration of whether it

should propose rules to lift the prohibition on trade options on

enumerated agricultural products subject to conditions and, if so, what

conditions would be appropriate.

ADDRESSES: Requests to appear and statements of interest should be

mailed to the Commodity Futures Trading Commission, Three Lafayette

Centre, 1155 21st Street, NW., Washington, DC 20581, attention: Office

of the Secretariat; transmitted by facsimile at (202) 418-5521; or

transmitted electronically to [[email protected]]. Reference should be

made to ``Agricultural Trade Options Meeting--Bloomington'' or

``Agricultural Trade Options Meeting--Memphis.''.

FOR FURTHER INFORMATION CONTACT: Paul M. Architzel, Chief Counsel,

Division of Economic Analysis, Commodity Futures Trading Commission,

Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581,

(202) 418-5260, or electronically, [PA[email protected]].

SUPPLEMENTARY INFORMATION: Generally, the offer or sale of commodity

options is prohibited except on designated contract markets. 17 CFR

32.11. One of several specified exceptions to the general prohibition

on off-exchange options is for ``trade options.'' Trade options are

defined as off-exchange options ``offered by a person having a

reasonable basis to believe that the option is offered to'' categories

of commercial users specified in the rule, where such commercial user

``is offered or enters into the transaction solely for purposes related

to its business as such.'' 17 CFR 32.4(a). Trade options, however, are

not permitted on the agricultural commodities which are enumerated in

the Commodity Exchange Act, 7 U.S.C. 1 et seq. (Act). 17 CFR 32.2.

The Commodity Futures Trading Commission (Commission) recently

published in the Federal Register an Advance Notice of Proposed

Rulemaking (62 FR 31375 (June 9, 1997)) (Advance Notice), seeking

comment on whether it should propose rules to lift the prohibition on

trade options on the enumerated agricultural options subject to

conditions and, if so, what conditions would be appropriate. The

comment period will remain open until July 24, 1997. Id.

As the Commission noted in its Advance Notice, it directed its

Division of Economic Analysis (Division) to study the prohibition on

the offer or sale of off-exchange trade options on the agricultural

commodities enumerated in the Act and to report on the Division's

findings. On May 14, 1997, the Division forwarded to the Commission its

study entitled, ``Policy Alternatives Relating to Agricultural Trade

Options and Other Agricultural Risk-Shifting Contracts.'' The complete

text of that study is available through the Commission's Internet site

and can be accessed at http://www.cftc.gov/ag8.htm.

The Advance Notice poses a number of questions for comment relating

to the issues identified in the Division's study. These issues include,

among others, the nature of possible conditions on lifting the

prohibition on agricultural trade options. Such conditions relate to

the nature of the parties, restrictions on the instruments or their

use, the regulation of their marketing and other possible limitations

relating to financial capacity, cover, and internal controls.

The Commission is of the view that, in addition to the receipt of

written comments, an opportunity for interested members of the public

to appear before it will assist it in its consideration of these issues

and is in the public interest. Accordingly, the Commission will convene

public meetings on July 10th in Bloomington, Illinois, and on July

16th, in Memphis, Tennessee, for that purpose.

All individuals or organizations wishing to appear before the

Commission should submit to the Commission at the above address by July

1, 1997, a concise statement of interest and qualifications and a brief

summary or abstract of the content of his or her statement. The

Commission will invite a representative number of individuals or

organizations to appear from those submitting such statements. Persons

appearing before the Commission are invited specifically to address the

questions posed by the Commission in its Advance Notice. A

transcription of the meetings will be made and entered into the

Commission's public comment files, which as noted above, will remain

open for the receipt of written comment until July 24, 1997.

Issued in Washington, DC, this 16th day of June 1997 by the

Commodity Futures Trading Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 97-16073 Filed 6-18-97; 8:45 am]

BILLING CODE 6351-01-M