CFTC Denies OCC Rule Amendment

The Options Clearing Corporation (OCC) submitted a rule amendment, which the CFTC rejected with a notice of non-approval.  The proposed amendment would have treated foreign currency contracts, where the exercise price is fixed at a nominal amount, as securities options.  The CFTC found that the contracts are not bona fide options, but rather the economic and functional equivalent of foreign currency futures.

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