Tori:  We have contacted Senator Gramm and Majority Leader Armey about the 
calls from Ken on Monday.  Because of the uncertainty of the Congressional 
schedule, both offices told us to call on Monday morning to schedule the 
call.  If Ken wants to make the calls unscheduled, we expect Armey and Gramm 
to both be in DC by Monday morning.

The numbers are as follows:

Senator Gramm  (202) 224-2934
Majority Leader Armey (202) 225-4000

Here are the talking points

** CONFIDENTIAL **

Talking Points on Commodity Futures Modernization Act of 2000

Background:

We have hit an impasse on the CFTC Reauthorization legislation.  On legal 
certainty, nearly all interested parties agree.  However, Senator Gramm 
continues to raise objections unrelated to legal certainty for our business.  
There are two issues (which we understand have primarily been advanced by 
Senator Gramm, one on bank products and one on SEC jurisdiction). Majority 
Leader Dick Armey is trying to gain consensus with the interested parties 
which include Senator Gramm, the Chairmen of the House Agriculture, Commerce, 
and Banking Committees, as well as the Department of Treasury, CFTC, and 
SEC.  Meetings are occurring on a daily basis, but little concrete progress 
has been made since draft legislation was released on October 9.     



Talking Points:

We need your help to resolve outstanding differences so that the Commodities 
Futures Modernization Act of 2000 can pass this year.  There are very few 
legislative days left and movement now on this legislation is essential. Do 
not let the Congressional calendar be the enemy of gaining legal certainty 
for this dynamic and growing industry.

The current version of the legislation provides important legal certainty for 
all physical commodity transactions (not including agricultural commodities) 
entered into on a counterparty-to-counterparty basis or on an electronic 
trading facility.  We strongly support these provisions.

The legislation eliminates concerns that our derivatives transactions may be 
illegal or that our online platforms may be unregulated futures exchanges.  
These provisions allow our businesses to grow and innovate.  Without this 
legislation the industry will be crippled with legal uncertainty and these 
platforms will develop overseas.  

Virtually all of the issues in this very complex legislative package have 
been resolved. We are indifferent to outstanding provisions, except to the 
extent that they impede passage of the legislation.  We cannot allow the 
great progress made to date, fail in the end.

If asked, about a possible solution to the logjam.  Answer:  Encourage 
Majority Leader Armey, Senator Gramm, and Secretary Summers to meet 
immediately to finalize the remaining issues.  Given time constraints, if 
such a meeting does not occur in the next few days, there may not be enough 
time to pass this important legislation.

Note: Congress will be going out on either October 20 or October 27.