FOR IMMEDIATE RELEASE                             2001-86

              COMMISSION ISSUES EXEMPTIVE ORDER
         TO PERMIT PRINCIPAL-TO-PRINCIPAL TRADING IN
                  SECURITY FUTURES PRODUCTS
                              
     Washington, D.C., August 21, 2001 -- The Commission
today issued an order to permit limited trading in security
futures products to begin.
     
     The Commodity Futures Modernization Act of 2000, which
became law on December 21, 2000, lifted the ban on single
stock and narrow-based stock index futures.  The
legislation, however, does not permit retail customers to
trade these new products until December 21, 2001.  Certain
transactions between "eligible contract participants" may
begin as early as August 21, 2001, if certain other
conditions are met.  Specifically, principal-to-principal
trading between eligible contract participants may begin on
August 21, if the National Futures Association ("NFA") has
adopted rules to meet the requirements for a Limited Purpose
National Securities Association.
     
     Today the NFA filed rules with the Commission to
satisfy most of these requirements.  The Commodity Futures
Trading Commission approved these rules on August 20, 2001,
and they are effective when filed with the Commission today.
The NFA also continues to work with the Commission, other
securities self-regulatory organizations, and its members to
develop additional rules to fulfill its obligations as a
Limited Purpose National Securities Association.
     
     The order issued by the Commission today allows the
limited trading otherwise permitted as of August 21, 2001 to
commence with only those NFA rules in place that became
effective today.
     
     The order will be available on the Commission's website
at www.sec.gov.