MEMORANDUM
To:   File No. S7-16-01
From:   Lisa N. Jones
Date:   October 12, 2001
RE:   Customer Margin Proposals Relating to Security Futures
The purpose of this memo is to document that on October 12, 2001, the SEC staff, within the Division of Market Regulation, had a telephone conversation with Mary Bender, and Jim Adams at the Chicago Board Options Exchange ("CBOE") relating to customer margin proposals relating to security futures.