Application of Cantor Financial Futures Exchange as a Contract Market in U.S. Treasury Bond, Ten-Year Note, Five-Year Note and Two- Year Note Futures Contracts

Résumé

The Cantor Financial Futures Exchange, Inc. (``CFFE'' or ``Exchange''), a New York not-for-profit corporation, has applied for designation as a contract market for the computer-based trading of US Treasury bond, ten-year note, five-year note and two-year note futures contracts. CFFE has been formed pursuant to an agreement between the New York Cotton Exchange (``NYCE'') and CFFE, LLC, a subsidiary of Cantor Fitzgerald, LP (``Cantor''). 1 Under the agreement, CFFE trading would be conducted on the same trading system that another Cantor subsidiary, Cantor Fitzgerald Securities, LLC (``CFS''), currently operates as an interdealer-broker in the US Treasury securities market. CFFE's regulatory responsibilities would be handled by NYCE. CFFE has not previously been approved by the Commission as a contract market in any commodity. Accordingly, in addition to the terms and conditions of the proposed futures contracts, the Exchange has submitted to the Commission a proposed trade-matching algorithm; proposed rules pertaining to CFFE governance, disciplinary and arbitration procedures, trading standards and recordkeeping requirements; and various other materials to meet the requirements for