News Story Supplement:
Transmittal Letters Re:
SEC/CFTC Agreement to Lift Ban on Single Stock Futures

September 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,

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,

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,

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,

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,

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,

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,

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,

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,