Forward Commitments, Interest-Rate Futures and Financial Options Transactions

PURPOSE: This rule authorizes associations to make forward commitments to purchase securities and to engage in interest-rate futures and financial options to reduce an institution's interest-rate risk exposure. Editor's Note: Copies of all referenced federal regulations are available at a cost established by state law to any interested party at the Division of Finance, Room 630, 301 West High Street, Jefferson City, Missouri or the Office of the Secretary of State at a cost established by state law. (1) An association may make forward commitments to purchase securities (including mortgage loans) subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of those regulation. (2) An association may engage in interest-rate futures transactions to reduce its net interest rate risk exposure subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of such regulation. Each association engaging in such transactions shall provide written notification to the director at the inception of that activity. (3) An association may engage in financial options transactions to reduce its net interest rate risk exposure subject to the limitations set forth in applicable federal regulations and the recordkeeping requirements of such regulation. Each association engaging in these transactions shall provide written notification to the director at the inception of that activity. AUTHORITY: sections 369.144 and 369.299, RSMo 1994.* This rule originally filed as 4 CSR 260-9.031. This rule previously filed as 4 CSR 140-20.031. Original rule filed Nov. 4, 1986, effective Jan. 30, 1987. Changed to 4 CSR 140-21.031, effective July 6, 1994. Amended: Filed Nov. 8, 1994, effective March 30, 1995. Moved to 20 CSR 114020.031, effective Aug. 28, 2006. *Original authority: 369.144, RSMo 1971, amended 1982, 1983, 1984, 1989, 1994 and 369.299, RSMo 1971, amended 1994.