June 28, 1990
TO: BOARD OF GOVERNORS NO. 46-90
RE: SUPREME COURT DENIES CERT. IN INDEX PARTICIPATIONS CASE
__________________________________________________________
On June 18, the U.S. Supreme Court denied certiorari in the
case concerning "index participations." The Court's action lets
stand the decision of the U.S. Court of Appeals for the Seventh
Circuit, which held that index participations constituted
futures, rather than securities, and thus could only be traded on
a futures exchange. The Supreme Court also denied the
Institute's conditional petition for certiorari, which had
requested that, in the event the Court determined that index
participations were securities, it consider whether they were
investment company securities. (See Memorandum to Board of
Governors No. 23-90, dated April 5, 1990.)
Craig S. Tyle
Associate General Counsel