SEC REMOVES OBSTACLE TO FOREIGN FUTURES TRADING
The Securities and Exchange
Commission removed a key regulatory obstacle to trading futures
on designated foreign debt securities on U.S. exchanges.
    The move would allow the Chicago Board of Trade, CBT, to
apply to the Commodity Futures Trading Commission, CFTC, for
approval of a futures contract on yen bonds.
    The CBT has said it may apply for approval of the yen bond
futures contract, a CFTC spokesman said.
    The SEC's action, which was approved by a 4-0 vote,
specifically removes a regulation against trading futures on
designated foreign government debt securities on contract
markets that are not located in the country that issued those
securities.
    Futures on the government debt securities of Japan, Canada
and Great Britain can already be marketed in the United States
under a designated exemption issued by the SEC.
    But the new move would permit U.S. exchanges to apply to
the CFTC for approval of establishing futures contracts on
those securities, SEC officials said.
    The new SEC move would also allow those foreign government
debt securities to be marketed in the United States by
countries other than those that issued the securities, the
officials said.
    Since the foreign government securities underlying the
futures cannot be traded in the United States unless they are
registered with the SEC, settlement and delivery of the futures
would often take place in the foreign country, the SEC
officials said.
    The SEC is also considering expanding futures trading of
additional countries' government securities to be marketed and
traded in the United States, the officials said.
 Reuter
