Re:  Commoditity Futures Trading Commission: Proposed Rulemaking for a
New Regulatory Framework for Multilateral Transaction Execution Facilities,
Intermediaries and Clearing Organizations

                     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.

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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 June 8, 2000, the Commodity Futures Trading Commission 
("CFTC")
approved four releases setting out proposed rules for regulatory reform (the 
"Proposed Rules").
The Proposed Rules represent a major change in the CFTC's approach to the 
markets and
market participants.  They are designed to promote legal certainty and to 
move the CFTC away
from direct regulation and toward a more general oversight role.  The 
Proposed Rules, which
seek to codify the CFTC Staff Report entitled A New Regulatory Framework 
dated February
2000 and also reflect the CFTC's recognition of the increasing convergence of 
the exchange
and over-the-counter markets, as well as the growth of electronic trading, 
and of the need for
a new regulatory scheme to address these developments.  The release includes 
proposals for:


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 - CMS10596.pdf