News Story Supplement: Transmittal Letters Re: SEC/CFTC Agreement to Lift Ban on Single Stock FuturesSeptember 14, 2000 The Honorable J. Dennis Hastert The Speaker U.S. House of Representatives Washington, D.C. 20515 Dear Mr. Speaker: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Richard K. Armey Majority Leader U.S. House of Representatives Washington, D.C. 20515 Dear Mr. Leader: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Richard A. Gephardt Democratic Leader U.S. House of Representatives Washington, D.C. 20515 Dear Mr. Leader: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Tom DeLay Majority Whip U.S. House of Representatives Washington, D.C. 20515 Dear Mr. DeLay: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable David E. Bonior Minority Whip U.S. House of Representatives Washington, D.C. 20515 Dear Mr. Bonior: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Trent Lott Majority Leader United States Senate Washington, D.C. 20510 Dear Mr. Leader: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission | | |
September 14, 2000 The Honorable Don Nickles Assistant Majority Leader United States Senate Washington, D.C. 20510 Dear Mr. Leader: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Tom Daschle Democratic Leader United States Senate Washington, D.C. 20510 Dear Mr. Leader: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
September 14, 2000 The Honorable Harry Reid Democratic Whip United States Senate Washington, D.C. 20510 Dear Mr. Reid: In November 1999, the President's Working Group on Financial Markets forwarded to the Congress its report entitled Over-the-Counter Derivatives Markets and the Commodity Exchange Act. The report sets forth a series of unanimous recommendations designed to reform the legal and regulatory framework affecting the OTC derivatives market and create much-needed legal certainty for OTC derivatives. Along with legal certainty, each of the commodity futures modernization bills currently before the Congress addresses two additional topics: regulatory relief for exchange-traded futures and repeal of the prohibition on the trading of single stock futures. The Working Group recognized the need for the CFTC, consistent with the public interest, to be able to provide appropriate regulatory relief for products traded on futures exchanges. The Working Group also recommended that the Commodity Futures Trading Commission and the Securities and Exchange Commission work together to determine whether the trading of single stock futures should be permitted and, if so, under what conditions. We are pleased to enclose the agreement reached between the CFTC and SEC to permit the trading of single-stock futures and narrow-based stock indices. Now that the CFTC and SEC have proffered a plan for the introduction of single stock futures, we urge the Congress to incorporate this plan and to move expeditiously to pass legislation implementing the Working Group's carefully considered recommendations on OTC derivatives during this legislative session. Given the short legislative schedule, it is now important to focus on achieving legal certainty for OTC derivatives under the Commodity Exchange Act consistent with the unanimous recommendations of the Working Group. Unless our laws and regulations relating to OTC derivatives are modernized, we run the risk that innovation will be stifled, depriving the American economy of the benefits that the derivatives markets can provide, and hampering the efforts of our financial markets and businesses to compete globally. We look forward to continuing to work with you to ensure the enactment of this important legislation during this Congress. Sincerely, Lawrence H. Summers | Alan Greenspan | Secretary | Chairman | Department of the Treasury | Board of Governors of the Federal | | | Arthur Levitt | William J. Rainer | Chairman | Chairman | Securities and Exchange Commission | Commodity Futures Trading Commission |
|