Commodity Futures Trading Commission Minutes
Tuesday, March 13, 1979 4:00 PM 8th Floor Conference Room
Commissioners: Gary Seevers, Read Durm, Robert Martin, David Gartner
Don Tendick, Jack Gaine, Vern Pherson, John Mielke,
Britt Lenz, Fred Spindel, Mike Caughlin, Bill Briggs,
Wayne Olson, Neal Stults, Dave Merrill, Vince Morgan,
Dave Gary, Bill Grossman, Glynn Mays, Charlie Robinson,
John Phillips, Irv Hankin, Dennis Avery, Bill Monahan,
Jane Stuckey
The Commission voted unanimously to hold the meeting on less than one
week's notice and voted unanimously to close the meeting.
1. March 1979 Wheat Futures Contract Traded on the
Chicago Board of Trade.
The Commission was given an update on the March 1979 Wheat Futures Contract. No action was taken; however, Acting Chairman Seevers will communicate to Warren Lebeck that the Commission is very concerned and is considering emergency action if the Exchange does not take some action.
ommodity Futures Trading Commission Minutes
hursday, March 15, 1979 5:30 PM 8th Floor Conference Room
Gary Seevers, Read Dunn, David Gartner
Don Tendick, Jack Gaine, Britt Lenz, Vern Pherson,
Fred Spindel, Pat Nicolette, Glynn Mays, Dave Merrill,
Mike Caughlin, Bruce Larrimer, Hugh Cadden, Jack Field,
Bill Briggs, Dave Gary, Bill Grossman, John Mielke,
Bill Monahan, Dennis Klejna, Mark Young, Jane Stuckey
The meeting was a continuation of the March 9, 1979, Commission Meeting and thus closed under the same provisions.
1. March 1979 Wheat Futures Contract Traded on the Chicago Board of Trade
The Commission voted 3 to 0 to issue an emergency
order under Section 8a (9) directing the Chicago
Board of Trade to suspend trading for the day of
March 16, 1979, in the March 1979 wheat futures
contract traded on the Chicago Board of Trade.
The action was taken because of reason to believe
an emergency existed with respect to that contract
with the objective of providing the Board of Trade
an opportunity to resolve the present congestion
in line with its self-regulatory responsibilities
under the Commodity Exchange Act.
Commodity Futures Trading Commission Minutes
Friday, March 16, 1979 9:00 AM 8th Floor Conference Room
Gary Seevers, Read Dunn, Robert Martin, David Gartner
Don Tendick, Jack Gaine, Britt Lenz, Wayne Olson,
John Mielke, Bruce Larrimer, Vern Pherson, Dave Merrill,
Hugh Cadden, Neal Stults, Jack Field, Mike Caughlin,
Fred Spindel, Pat Nicolette, Glym Mays, John Phillips,
Dave Gary, Charlie Robinson, Irv Hankin, Bill Grossman,
Dennis Avery, Bill Monahan, Jane Stuckey
The meeting was a continuation of the March 15, 1979, Commission Meeting
and thus closed under the same provisions.
1. March 1979 Wheat Futures Contract Traded in the
Chicago Board of Trade
The Commission voted 4 to 0 to authorize the Division
of Enforcement to appear, if necessary, in Federal
District Court to seek appropriate relief to enforce
the CFTC emergency order of March 15, 1979, directing
suspension of trading on March 1979 wheat.
The Commission held a conference call with officials
of the Chicago Board of Trade.
The Commission voted 3 to 1,
that if and when the Board declared an emergency the CFTC would lift the suspension of trading on March 1979 wheat subject to the Board's assurances that as a self-regulatory body it would take actions to ensure an orderly liquidation. The meeting recessed at 12:00 noon.
The meeting reconvened at 12:10 PM for a conference telephone call with Board officials in order to respond while Mr. Wilmouth was on the line.
The above vote was rescinded by a 3 to 0 vote.
not participating.
Resume 5:00 PM under the same closure provisions.
Commissioners: Gary Seevers, Read Dunn, Robert Martin, David Gartner
Don Tendick, Jack Gaine, Hugh Cadden, Fred Spindel, Vince
Morgan, Jack Field, Dave Merrill, Bill Tueting, John Mielke;-
Mike Caughlin, Bruce Larrimer, Dennis Klejna, Britt Lenz,
Ver Pherson, Bill Briggs, Pat Nicolette, Wayne Olson,
Bill Grossman, Irv Hankin, John Phillips, Charlie Robinson,
Dennis Avery, Dave Gary, Jane Stuckey
1. March 1979 Wheat Futures Contract Traded in the
Chicago Board of Trade
After further evaluation of the market situation and
consideration of several alternatives, the Commission
voted 3 to 1,
that there
was reason to believe a market emergency still existed
in the March contract and that, as recommended by the
staff, a supplemental order under Section 8a (9) be
issued directing the suspension of all further trading
in the March wheat future but permit deliveries on the
contract through the last delivery day permitted under
the contract's rules. All contracts still remaining
open at the close of trading on March 30, 1979 will
be settled out at the settlement price of the contract
on March 15, 1979 ($3.76 3/4).
Commodity Futures Trading Commission Minutes
Sunday, March 18, 1979 10:15 PM Held in Chairman's Office
Commissioners: Read Dunn, Robert Martin, David Gartner
Don Tendick, Vern Pherson, Hugh Cadden, Jack Gaine,
Pat Nicolette, Mike Caughlin, Britt Lenz, Bill Monahan,
Bill Grossman, Jack Field, John Phillips
By speaker phone: John Mielke, Fred Spindel, John
Troelstrup
The meeting was a continuation of the March 16, 1979, meeting thus
closed under the same provisions.
1. March 1979 Wheat Futures Contract Traded on the
Chicago Board of Trade
The Commission voted 3 to 0 to authorize the Office
of General Counsel (1) to institute an emergency appeal
to the Court of Appeals for the Seventh Circuit to
stay the order of the District Court that preliminarily
enjoined the Commission from enforcing its supplemental
emergency order of March 16, 1979, and, if necessary,
to seek a stay of the District Court's order through
the Solicitor General's office by application to a
Circuit Justice of the Supreme Court and (2) to
prosecute an appeal from the entry of the District
Court's order through the appellate courts.
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