The Commodity Futures Trading Commission has rejected a rule amendment proposed by the Options Clearing Corporation.
It would have allowed the OCC to treat foreign
currency contracts as securities options, allowing them to be
traded and cleared as such, in cases where the exercise price
was fixed at a nominal amount, such as one cent.
But the OCC only planned to do this if
the CFTC agreed. The regulator found that the contracts were
"the economic and functional equivalents of foreign currency
futures contracts and not bona fide