[Federal Register: October 7, 2002 (Volume 67, Number 194)] [Rules and Regulations] [Page 62350-62354] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr07oc02-12] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION 17 CFR Parts 1, 3, 4, 9, 11, 16, 17, 18, 19, 21, 31, 36, 37, 38, 39, 40, 41, 140, 145, 150, 170, 171 and 190 Changes in Divisional Structure and Delegations of Authority AGENCY: Commodity Futures Trading Commission. ACTION: Final rules. ----------------------------------------------------------------------- SUMMARY: The Commission is amending its rules to reflect the reassignment of responsibilities, including delegations of authority, resulting from its recent reorganization of Commission staff. Effective July 1, 2002, the Commission reassigned the responsibilities of the former Division of Trading and Markets and Division of Economic Analysis to the newly established Division of Clearing and Intermediary Oversight, Division of Market Oversight and Office of the Chief Economist. The reorganized divisions will more effectively implement the provisions of the Commodity Futures Modernization Act of 2000 (CFMA). EFFECTIVE DATE: October 7, 2002. FOR FURTHER INFORMATION CONTACT: Paul M. Architzel, Division of Market Oversight, Commodity Futures Trading [[Page 62351]] Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. Telephone 202-418-5260. E-mail: [[email protected]]. SUPPLEMENTARY INFORMATION: On December 21, 2000, the President signed into law the Commodity Futures Modernization Act of 2000 (``CFMA'') which extensively revises the Commodity Exchange Act (Act)\1\ In order to more effectively implement its provisions, the Commission has reorganized its operating divisions. Under the reorganized structure, the Division of Trading and Markets and the Division of Economic Analysis (the former divisions) has been reconfigured into two new divisions, the Division of Clearing and Intermediary Oversight and the Division of Market Oversight (the new divisions), and the Office of the Chief Economist. --------------------------------------------------------------------------- \1\ The Commodity Exchange Act may be found at 7 U.S.C. 1 et seq. (2000), as amended by the Commodity Futures Modernization Act of 2000, Appendix E of Pub. L. 106-554, 114 Stat. 2763 (2000). --------------------------------------------------------------------------- The Commission is amending several of its rules in Chapter I of Title 17 of the Code of Federal Regulations to reflect this reorganized structure. Accordingly, as indicated in the chart below, the Commission is deleting from its rules references to the former divisions and replacing them with references to the new divisions. As amended, the rules will reflect the new assignments of responsibilities, including delegated authorities, to the two new divisions. The Commission is also amending rule 140.99, which governs requests for exemptive, no-action and interpretative letters. Before its amendment, rule 140.99 required all requests to be filed with the Division of Trading and Markets, and thereafter routed to the appropriate office or division. The Commission has determined that it will be more efficient to require the requester to file the request directly with the division with operating responsibility for administering the provision of the Act or of the Commission's regulations from which relief is sought. Accordingly, the Commission is amending rule 140.99 to require that requests relating to certain specific subject matter areas (as enumerated in the amended rule) be filed with the division with operating responsibility for that subject matter area. The Commission is deleting rule 140.100 which it adopted on July 9, 2002, 67 FR 45299. That rule provided that all delegations of authority from the Commission to the Directors of the former divisions, and their respective designees, as set forth in Chapter I of Title 17 of the Code of Federal Regulations, were delegated jointly to the respective Directors of the new divisions, and their respective designees. Now that the Commission has amended several of its rules to reflect the new agency structure, rule 140.100 is no longer necessary. Finally, the Commission is removing and reserving rules 1.41a, 1.41c and 1.42, which have been superseded by the CFMA\2\ --------------------------------------------------------------------------- \2\ Section 15 of the Commodity Exchange Act, as amended by the CFMA, provides that before promulgating a regulation under this Act or issuing an order, the Commission shall consider the costs and benefits of the action of the Commission. These rules govern internal agency organization, procedure, and practice, and therefore the Commission finds that none of the considerations enumerated in section 15(a)(2) of the Act, as amended, are applicable to these rules. --------------------------------------------------------------------------- Related Matters Administrative Procedure Act The Commission has determined that restructuring of responsibilities, including delegations of authority, relates solely to agency organization, procedure and practice. Therefore, the provisions of the Administrative Procedure Act that generally require notice of proposed rulemaking and that provide other opportunities for public participation are not applicable.\3\ The Commission further finds that, because the rules have no adverse effect upon a member of the public, there is good cause to make them effective immediately upon publication in the Federal Register. --------------------------------------------------------------------------- \3\ 5 U.S.C. 553 (1994). --------------------------------------------------------------------------- List of Subjects 17 CFR Part 1 Brokers, Commodity futures, Reporting and recordkeeping requirements. 17 CFR Part 140 Authority delegations (Government agencies), Organization and functions (Government agencies). In consideration of the foregoing, and pursuant to the authority contained in the Act, and in particular section 2(a)(11) of the Act, 7 U.S.C. 2(a)(11), as amended, the Commission hereby amends Parts 1, 3, 4, 9, 11, 16, 17, 18, 19, 21, 31, 36, 37, 38, 39, 40, 41, 140, 145, 150, 170, 171, and 190 of Chapter I of Title 17 of the Code of Federal Regulations as follows: 17 CFR Parts 1, 3, 4, 9, 11, 16, 17, 18, 19, 21, 31, 36, 37, 38, 39, 40, 41, 140, 145, 150, 170, 171 and 190 1. In the table below, for each section indicated in the left column, remove the words indicated in the middle column from wherever they appear in the section, and add the words indicated in the right column: ------------------------------------------------------------------------ Section Remove Add ------------------------------------------------------------------------ 1.12(g)(3)...................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 1.12(h)......................... Division of Division of Trading Markets. Clearing and Intermediary Oversight. 1.62(b)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 1.62(b)......................... Attn: Chief Attn: Counsel,. 1.65(d)......................... Chief Counsel, Deputy Director, Division of Compliance and Trading and Registration Markets. Section, Division of Clearing and Intermediary Oversight. 1.66(b)(5)(ii).................. Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.12(g)(2)(i)................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.12(g)(2)(ii).................. Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.22............................ Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.33(e)......................... Division of Division of Trading and Clearing and Markets, Intermediary Registration Unit. Oversight. 3.50(c)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.50(d)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.55(e)(2)...................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.56(e)(2)...................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.63............................ Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 3.70(a)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. [[Page 62352]] 3.70(a)......................... Chief Counsel..... Deputy Director, Compliance and Registration Section. Pt. 3 App. A,................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 4.2(a).......................... Managed Funds Division of Branch, Division Clearing and of Trading and Intermediary Markets. Oversight. 9.2(h).......................... Division of Division of Market Trading and Oversight and/or Markets. the Division of Clearing and Intermediary Oversight. 9.11(c)......................... Contract Markets Division of Market Section, Division Oversight. of Trading and Markets. 9.12(b)......................... Division of Division of Market Trading and Oversight. Markets. 9.26, first sentence............ Within twenty days Within twenty days after the receipt after receipt of by the Division the answering of Trading and brief, the Markets of the Division of answering brief, Market Oversight the Division of and/or the Trading and Division of Markets * * *.. Clearing and Intermediary Oversight * * * 9.26, last sentence............. No employee of the No employee of the Division of Division(s) Trading and filing the Markets. notice. 9.31(a)......................... Division of Division of Market Trading and Oversight or the Markets. Division of Clearing and Intermediary Oversight. 11.2(a)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 11.2(a)......................... Division of Division of Market Economic Analysis. Oversight. 16.07........................... Division of Division of Market Economic Analysis. Oversight. 17.03........................... Division of Division of Market Economic Analysis. Oversight. 18.03........................... Division of Division of Market Economic Analysis. Oversight. 19.00(a)(3)..................... Division of Division of Market Economic Analysis. Oversight. 21.02a(c)....................... Division of Division of Market Economic Analysis. Oversight. 31.6(f)(1)...................... Division of Division of Market Economic Analysis. Oversight. 31.6(f)(2)...................... Division of Division of Market Economic Analysis. Oversight. 31.13(n)(1)..................... Division of Division of Trading and Cleaering and Markets. Intermediary Oversight. 31.14(a)........................ Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 31.14(a)........................ Division of Division of Market Economic Analysis. Oversight. 36.3(b)(2)(ii).................. Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 36.3(b)(2)(ii).................. Economic Analysis. The Division of Market Oversight. 37.5(f)(1)...................... Division of Division of Market Trading and Oversight or such Markets and other employee or separately to the employees as the Director of Director. Economic Analysis or such other employee or employees as the Directors. 37.5(f)(2)...................... Directors......... Director. 37.8(d)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 37.8(d)......................... Division of Division of Market Economic Analysis. Oversight. 38.3(e)(1)...................... Division of Division of Market Trading and Oversight or such Markets and other employee or separately to the employees as the Director of Director. Economic Analysis or such other employee or employees as the Directors. 38.3(e)(2)...................... Directors......... Director. 38 App B, Core Principle 11, (a) Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 39.3(e)(1)-(2).................. Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 40.7(a)(1)...................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 40.7(a)(1)...................... Economic Analysis. The Division of Market Oversight. 40.7(a)(2)...................... Director of the Directors of Division of Division of Trading and Market Oversight Markets, or the and Division of delegatees of the Clearing and Director. Intermediary Oversight or the delegatees of the Directors. 40.7(b), introductory text...... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 40.7(b), introductory text...... Economic Analysis. The Division of Market Oversight. 41.33(g)........................ Division of Division of Market Trading and Oversight. Markets and the Director of the Division of Economic Analysis, jointly. 41.33(g)(1)..................... Division of Division of Market Trading and Oversight. Markets or the Director of the Division of Economic Analysis. 41.33(g)(2)..................... Division of Division of Market Trading and Oversight. Markets and the Director of the Division of Economic Analysis. 41.3(d)......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.72(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.72(a)....................... Division of Division of Market Economic Analysis. Oversight. 140.73(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.73(a)....................... Division of Division of Market Economic Analysis. Oversight. 140.73(b)....................... Division of Division of Market Economic Analysis. Oversight. 140.74(a)....................... Division of Division of Market Economic Analysis. Oversight. 140.74(b)....................... Division of Division of Market Economic Analysis. Oversight. 140.74(c)....................... Division of Division of Market Economic Analysis. Oversight. 140.75.......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.76(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.76(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.77(a)....................... Director of the Director of the Division of Division of Economic Analysis Market Oversight and the Division or the of Trading and Director's. Markets or their. 140.77(b)....................... Directors of the Director of the Division of Division of Economic Analysis Market Oversight and the Division may submit any of Trading and matter which has Markets may been delegated to submit any matter the director. which has been delegated to them. [[Page 62353]] 140.77(c)....................... Directors of the Director of the Division of Division of Economic Analysis Market Oversight. and the Division of Trading and Markets. 140.91(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.91(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.92(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.92(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.92(c)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.93(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.93(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.93(c)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.95(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.95(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.94(c)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.96(a)....................... Division of Division of Market Economic Analysis. Oversight. 140.96(b)....................... Division of Division of Market Economic Analysis. Oversight. 140.96(b)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.96(c)....................... Division of Division of Market Economic Analysis. Oversight. 140.96(c)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.96(d)....................... Division of Division of Market Economic Analysis. Oversight. 140.96(d)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.97(a)....................... Division of Division of Market Economic Analysis. Oversight. 140.97(b)....................... Division of Division of Market Economic Analysis. Oversight. 140.97(c)....................... Division of Division of Market Economic Analysis. Oversight. 140.99(a)(5).................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 140.99(a)(5).................... Division of Division of Market Economic Analysis. Oversight. 140.735-2a footnote 7........... Division of Division of Market Economic Analysis. Oversight. 145.6(a)........................ Division of Commodity Futures Economic Trading Analysis, Commission, 140 Commodity Futures Broadway, New Trading York, New York Commission, One 10005 Telephone: World Trade (646) 746-9700. Center, Suite 3747, New York, New York 10048, Telephone: (212) 466-2061. 145.6(a)........................ Division of Commodity Futures Trading and Trading Markets, Commission, 525 Commodity Futures West Monroe Trading Street, Suite Commission, 300 1100, Chicago, South Riverside Illinois 60661, Plaza, Suite 1600 Telephone: (312) North, Chicago, 596-0700. Illinois 60606, Telephone: (312) 353-5990. 145.6(a)........................ Division of Commodity Futures Trading and Trading Markets, Commission, 510 Commodity Futures Grain Exchange Trading Building, Commission, 510 Minneapolis, Grain Exchange Minnesota 55415, Building, Telephone: (612) Minneapolis, 370-3255. Minnesota 55415, Telephone (612) 370-3255. 145.6(a)........................ Division of Commodity Futures Trading and Trading Markets, Commission, 4900 Commodity Futures Main Street, Trading Suite 721, Kansas Commission, 4900 City, Missouri Main Street, 64112, Telephone: Suite 721, Kansas (816) 931-7600. City, Missouri 64112, Telephone: (816) 931-7600. Pt. 145, App A, (e)............. Division of Division of Market Economic Analysis. Oversight. Pt. 145, App A, (g)............. Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 150.3(b)........................ Division of Division of Market Economic Analysis. Oversight. 150.4(e)........................ Division of Division of Market Economic Analysis. Oversight. 170.12.......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 171.28.......................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 171.28.......................... Division of Division of Market Economic Analysis. Oversight. 171.31(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 171.31(a)....................... Division of Division of Market Economic Analysis. Oversight. 190.10(a)....................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 190.10(b)(4).................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 190.10(d) heading & (d)(1)...... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 190.10(d)(2).................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. 190.10(d)(3).................... Division of Division of Trading and Clearing and Markets. Intermediary Oversight. ------------------------------------------------------------------------ PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT 2. The authority citation for Part 1 continues to read as follows: Authority: 7 U.S.C. 1a, 2, 2a, 4, 4a, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6h, 6i, 6j, 6k, 6l, 6m, 6n, 6o, 6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a, 13a-1, 16, 16a, 19, 21, 23, and 24. 3. Sections 1.4a, 1.41c, and 1.42 are removed and reserved. PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION 4. The authority citation for Part 140 continues to read as follows: Authority: 7 U.S.C. 2 and 12a. 5. Section 140.99 is amended by revising paragraph (d)(2) to read as follows: Sec. 140.99 Request for exemptive, no-action and interpretative letters. * * * * * (d) Filing requirements. * * * (1) * * * (2) A request for a Letter relating to the provisions of the Act or the Commission's rules, regulations or orders governing designated contract markets, registered derivatives transaction execution facilities, exempt commercial markets, exempt boards of trade, the nature of particular [[Page 62354]] transactions and whether they are exempt or excluded from being required to be traded on one of the foregoing entities, foreign trading terminals, hedging exemptions, and the reporting of market positions shall be filed with the Director, Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. A request for a Letter relating to all other provisions of the Act or Commission rules shall be filed with the Director, Division of Clearing and Intermediary Oversight Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. A request for a Letter relating to all other provisions of the Act or Commission rules shall be filed with the Director, Division of Clearing and Intermediary Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. The request must be submitted electronically using the e-mail address [email protected] (for request filed with the Division of Market Oversight), or [email protected] (for requests filed with the Division of Clearing and Intermediary Oversight), as appropriate, and a properly signed paper copy of the request must be provided to the Division of Market Oversight or the Division of Clearing and Intermediary Oversight, as appropriate, within ten days for purposes of verification of the electronic submission. * * * * * Sec. 140.100 [Removed] 6. Section 140.100 is removed. Issued in Washington, DC, this 26th day of September, 2002, by the Commission. Jean A. Webb, Secretary of the Commission. [FR Doc. 02-25049 Filed 10-4-02; 8:45 am] BILLING CODE 6351-01-M