| Intepretation to Chapter 9 � The Capital Charge for a Rule 106.D. Transferee (Lessee) and Trading Permit Holder The CFTC recently approved the elimination of the Interpretation to Chapter 9 � Capital Charge for a Rule 106.D. Transferee (Lessee) and Trading Permit Holder. With the changing environment and today�s sophisticated risk management systems, the internal lessee capital charge, originally adopted in 1982, no longer serves its purpose. The dollar amount of the charge ($50,000 for lessees and $25,000 for trading permit holders) is not considered sufficient to cover serious trading losses. Further, financial capitalization above Exchange-mandated performance bond requirements of accounts (including those of lessees) should be a business decision of clearing members. Thus, effective with the March 31st, 2000 financial statement filing, you will no longer be required to submit the number of lessees subject to a charge and charge amount. If you have any questions, please call the Audit Department at (312) 930-3230 or e-mail at audits@cme.com. |
