CFTC CONFIRMS CLEARING MARGINS COLLECTED
The Commodity Futures Trading
Commission said futures markets collected clearing margins
called following feverish futures trading on Monday.
    "The Commission remains in frequent contact with the
futures markets which trade stock index futures and options,
each of which has confirmed the collection of clearing margins
called for as a consequence of futures trading on Monday,
October 19, 1987," the CFTC said in a statement.
    Four U.S. exchanges briefly halted stock index futures
trading Tuesday, and the New York Stock Exchange (NYSE) urged
members to refrain from using program trading.
    Acting CFTC Chairman Kalo Hineman said CFTC continued to
"closely monitor the financial integrity of firms with
positions in the stock index futures and options markets."
    A futures industry official said there was some concern
among industry leaders that stock index futures would be blamed
for the stock market's nosedive on Monday.
    "This is an equity market problem," the official said. "Our
(U.S.) budget deficit, (and) what's going on in the Gulf appear
to be much more responsible because they shape what's happening
in futures markets."
    Some lawmakers focused criticism on index arbitrage
trading.
    Republican Senator John Heinz said he recommended to the
White House that daily trading limits be applied to stock index
futures and that index futures margins be raised.
    Democrat Representative Charles Schumer said Congress would
consider new controls over margin requirements.
 Reuter
