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Enron Mail |
Re: Commodity Futures Modernization Act of 2000
Attached is a memorandum from Sullivan & Cromwell concerning the above subject. A summary is also included at the end of the text of this e-mail message. The attached file is in Adobe Acrobat format. We believe most PCs will already have an Acrobat viewer loaded; we can provide free copies if Acrobat is not already loaded, and free copies can also be downloaded from the Adobe Acrobat web site at www.adobe.com. To view or print the memo use your e-mail system's function for opening attachments in their native format. Hard copies can be obtained from Ivy Moreno at S&C in New York, telephone 212-558-3448, e-mail: Morenoi@sullcrom.com. SUMMARY On December 15, 2000, both the House of Representatives and the Senate passed the Commodity Futures Modernization Act of 2000 (the "CFMA"), which represents a dramatic overhaul of the Commodity Exchange Act (the "CEA") and of the regulatory scheme applicable to exchanger-traded futures and options on futures as well as over-the-counter derivatives. The bill will become effective, for the most part, upon execution by President Clinton, which is expected to occur this week. Among other things, the CFMA provides legal certainty for a wide range of over-the-counter products that previously could have been considered illegal off-exchange futures contracts or commodity options, as well as legal certainty for swaps under the federal securities laws, permits the organization and operation of "derivatives transaction execution facilities", which will be subject to only minimal regulatory oversight,and repeals the so-called "Shad/Johnson Accord", which will allow futures exchanges and securities exchanges to list futures on individual equity securities or narrow baskets of securities. The CFMA largely supersedes many of the Final Rules with respect to a New Regulatory Framework adopted by the Commodity Futures Trading Commission (the "CFTC") on November 22, 2000 (with the exception of the Shad/Johnson repeal, which was not addressed in such Rules),and it is anticipated that the Final Rules will, for the most part, be rescinded. ---------------------------------- This e-mail is sent by a law firm and contains information that may be privileged and confidential. If you are not the intended recipient, please delete the e-mail and notify us immediately. - CMS10701.pdf
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