[Federal Register: January 14, 2005 (Volume 70, Number 10)]
[Notices]
[Page 2621-2624]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr14ja05-45]
[[Page 2621]]
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COMMODITY FUTURES TRADING COMMISSION
Performance of Certain Functions by National Futures Association
With Respect to Those Foreign Firms Acting in the Capacity of a Futures
Commission Merchant
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice and Order.
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SUMMARY: The Commodity Futures Trading Commission ("Commission") is
authorizing the National Futures Association ("NFA") to confirm
exemptive relief to certain firms acting in the capacity of a futures
commission merchant ("FCM") that are subject to regulation by a
foreign futures authority or that are members of a foreign self-
regulatory organization ("SRO") in a particular jurisdiction to which
an order under Commission Rule 30.10 has been issued, notwithstanding
that such firms may be subject, in part, to joint regulation by a
second regulator or SRO in another jurisdiction. The Commission
previously authorized NFA to confirm exemptive relief solely to firms
subject to regulation by a single foreign futures authority or that are
members of a foreign SRO. This Order extends the scope of that
authority. The Commission also is authorizing NFA to maintain records
pertaining to the functions described in this Order and to serve as the
official custodian of those Commission records.
EFFECTIVE DATES: February 14, 2005.
FOR FURTHER INFORMATION CONTACT: Lawrence B. Patent, Deputy Director,
or Andrew V. Chapin, Special Counsel, Division of Clearing and
Intermediary Oversight, Commodity Futures Trading Commission, 1155 21st
Street, NW., Washington, DC 20581. Telephone: (202) 418-5430. E-mail:
[email protected] or [email protected].
United States of America, Before the Commodity Futures Trading
Commission, Order Authorizing the Performance of Certain Functions
by National Futures Association With Respect to Firms Seeking
Confirmation of Rule 30.10 Relief.
I. Authority
Section 8a(10) of the Commodity Exchange Act \1\ ("Act") provides
that the Commission may authorize any person to perform any portion of
the registration functions under the Act, notwithstanding any other
provision of law, in accordance with rules adopted by such person and
submitted to the Commission for approval or, if applicable, for review
pursuant to section 17(j) of the Act \2\ and subject to the provisions
of the Act applicable to registrations granted by the Commission. NFA
has confirmed its willingness to perform certain functions now
performed by the Commission.\3\
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\1\ 7 U.S.C. 12a(10) (2004).
\2\ 7 U.S.C. 21(j) (2004).
\3\ Letter from Robert K. Wilmouth, President, NFA, to Brooksley
Born, Chairperson, dated August 27, 1997; Letter from Daniel J.
Roth, President, NFA, to Sharon Brown-Hruska, Acting Chairperson,
dated December 22, 2004.
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On September 11, 1997, the Commission authorized NFA to receive
requests for confirmation of Rule 30.10 relief (described in greater
detail in Part II below) on behalf of particular firms, to verify such
firms' fitness and compliance with the conditions of the appropriate
Rule 30.10 Order, and to grant exemptive relief from registration to
qualifying firms pursuant to Rule 30.10.\4\ The Commission stated that,
after it had examined the foreign jurisdiction's regulatory structure
and issued an Order under Rule 30.10, granting general relief based
upon the comparability of that structure to the regulatory framework
under the Act, the steps needed to determine if relief is appropriate
for particular firms are similar to those undertaken in the course of
fitness checks performed by NFA with respect to applicants under the
Act.\5\ The Commission subsequently authorized NFA to revoke the
confirmation of Rule 30.10 relief for any firm that fails to comply
with the terms and conditions on which relief was confirmed, and to
withdraw the confirmation of Rule 30.10 relief from any firm that
notifies NFA of its decision to forfeit such relief.\6\
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\4\ 62 FR 47792-47793 (September 11, 1997). The Commission also
authorized NFA to serve as the official custodian for records
produced pursuant to this undertaking. Id.
\5\ Id. at 47793.
\6\ 64 FR 30489 (June 8, 1999).
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Upon consideration, the Commission has determined to authorize NFA
to confirm exemptive relief from FCM registration to certain firms
organized in one foreign jurisdiction and engaging in cross-border
activities from a branch location in another jurisdiction, and that, as
a consequence, may be subject, in part, to regulation by a foreign
regulator or SRO that has not been issued an order under Rule 30.10. As
discussed below, this function involves the registration or exemption
from registration of non-U.S. persons and is related to trading by
persons located in the U.S. on non-U.S. markets.
II. Background
In 1987, the Commission adopted a new Part 30 to its regulations to
govern the offer and sale to U.S. persons of futures and option
contracts entered into on or subject to the rules of a foreign board of
trade.\7\ These rules were promulgated pursuant to sections 2(a)(1)(A),
4(b) and 4c of the Act, which vest the Commission with exclusive
jurisdiction over the offer and sale, in the U.S., of futures and
options contracts traded on or subject to the rules of a board of
trade, exchange or market located outside of the U.S.\8\ Part 30 of the
Commission's rules sets forth regulations governing foreign futures \9\
and foreign option \10\ transactions executed on behalf of foreign
futures or foreign options customers.\11\ Specifically, Part 30 imposes
requirements in the following areas: registration, disclosure,
protection of customer funds, recordkeeping, reporting, sales practices
and compliance procedures.\12\
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\7\ 52 FR 28980 (August 5, 1987).
\8\ Commission rules referred to herein can be found at 17 CFR
Ch. I (2004).
\9\ "Foreign futures" as defined in Part 30 means "any
contract for the purchase or sale of any commodity for future
delivery made, or to be made, on or subject to the rules of any
foreign board of trade." Commission Rule 30.1(a).
\10\ "Foreign option" as defined in Part 30 means "any
transaction or agreement which is or is held out to be of the
character of, or is commonly known to the trade as, an `option',
`privilege', `indemnity', `bid', `offer', `put', `call', `advance
guaranty', or `decline guaranty', made or to be made on or subject
to the rules of any foreign board of trade." Commission Rule
30.1(b).
\11\ Pursuant to Rule 30.1(c), "Foreign futures or foreign
options customer" means "any person located in the U.S., its
territories or possessions who trades in foreign futures or foreign
options: Provided, That an owner or holder of a proprietary account
as defined in paragraph (y) of Sec. 1.3 of [the Commission's rules]
shall not be deemed to be a foreign futures or foreign options
customer within the meaning of Sec. Sec. 30.6 and 30.7 of this
part."
\12\ See generally Commission Rules 30.1 through 30.9.
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Rule 30.10 allows the Commission, among other things, to exempt a
foreign firm acting in the capacity of an FCM from compliance with
certain rules based upon the firm's compliance with comparable
regulatory requirements imposed by the firm's home-country regulator.
The Commission has established a process whereby a foreign regulator or
SRO can petition on behalf of its regulatees or members, respectively,
for such an exemption based upon the comparability of the regulatory
structure in the foreign jurisdiction to that under the Act. The
specific elements examined in evaluating whether the particular foreign
regulatory program provides a basis for permitting substituted
compliance for purposes of exemptive relief pursuant to Rule 30.10 are
set forth in Appendix A to Part 30
[[Page 2622]]
("Appendix A").\13\ If the Commission determines that the foreign
jurisdiction's regulatory structure offers comparable regulatory
oversight, it may issue an order, referred to as a "Rule 30.10
Order," granting general relief subject to certain conditions.\14\
Firms seeking confirmation of relief must make certain representations
set forth in the Rule 30.10 Order issued to the regulator or SRO from
the firm's home country.\15\ A foreign firm that has obtained
confirmation of relief pursuant to a Rule 30.10 Order generally is
exempt from compliance with the Act and Commission rules regarding
registration (including the registration of its representatives),
minimum capital, recordkeeping, and, in some circumstances, the
treatment of customer funds and disclosure, based upon the substituted
compliance with the applicable local statutes and regulations. The
Commission issued its first Rule 30.10 Order in 1988 and has issued a
total of eighteen Orders to foreign regulators and SROs in ten
countries.\16\
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\13\ See 52 28990, 29001 (August 5, 1987).
\14\ These conditions require the regulator or SRO responsible
for monitoring the compliance of its regulatees or member firms with
the regulatory requirements described in the Rule 30.10 petition to
make certain representations regarding the fitness of each firm
seeking to receive confirmation of Rule 30.10 relief, the
protections to be afforded to U.S. customers, and the exchange of
information with the Commission. See 62 FR 47792, 47793, n.7
(September 11, 1997).
\15\ A firm seeking confirmation of Rule 30.10 relief is
generally required to:
(1) Consent to jurisdiction in the U.S. and designate an agent
for service of process in the U.S. in accordance with the
requirements set forth in Rule 30.5;
(2) Agree to make its books and records available upon the
request of any representative of the Commission or the U.S.
Department of Justice;
(3) Agree that all futures or regulated option transactions with
respect to U.S. customers will be made on or subject to the rules of
the applicable exchanges and will be undertaken consistent with rule
and codes under which such firm operates;
(4) Represent that no principal of the firm would be
disqualified under Section 8a(2) of the Act from registering to do
business in the U.S. and notify the Commission promptly of any
change in that representation;
(5) Disclose the identity of each U.S. affiliate or subsidiary;
(6) Agree to be subject to NFA arbitration;
(7) Consent to the release of certain financial information;
(8) Segregate customer funds from the firm's proprietary funds,
even if the ability to opt out is generally available under local
law; and
(9) Undertake to comply with the provisions of law and rules
which form the basis for granting the exemption.
62 FR 47792, 47793, n.8. The terms and conditions vary from
order to order depending upon the regulatory structure of the firm's
home country. See e.g., 68 FR 58583, 58587 (October 10,
2003)(permitting eligible contract participants, as defined in
section 1a(12) of the Act, to opt out of the segregation provisions
set forth under the U.K. Financial Services Act, as implemented by
the Financial Services Authority ("FSA")).
\16\ The first Rule 30.10 Order was issued to the Sydney Futures
Exchange in Australia. 53 FR 44856 (November 7, 1988). The most
recent Rule 30.10 Order was issued to ASX Futures Proprietary
Limited, also located in Australia. 68 FR 39006 (July 1, 2003). For
a list of all Rule 30.10 Orders issued by the Commission, please
refer to the Commission's Web site: href="http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.cftc.gov" shape="rect">http://www.cftc.gov.
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At the time the Commission adopted Appendix A, firms conducting
business in a particular jurisdiction were fully supervised by the
regulatory authority in that jurisdiction. Accordingly, the Commission
contemplated that, when it issued a Rule 30.10 Order, firms applying
for confirmation of relief would substitute compliance with the
applicable statutes and regulations in effect in the recipient's
jurisdiction in lieu of compliance with the applicable Commission
rules. Further, each Rule 30.10 Order provided that the eligibility of
any firm applying for confirmation of the relief provided by the order
would be subject to, among other things, the condition that the
recipient regulator or SRO represent in writing to the Commission that
it will monitor such substituted compliance by the firm.
As a result of general trends towards increased global trading, the
business model for brokerage firms has progressed from the operation of
a firm within the borders of a single country to having a firm
organized in one country, but operating one or more other countries
through a branch or branches. The firms are referred to herein as
cross-border futures brokers ("CBFBs"). CBFBs, by their nature, are
subject to regulation in multiple jurisdictions. The multi-
jurisdictional regulation of such activity is facilitated my memoranda
of understanding entered into by governing regulatory authorities, and
changes to the law promoting cross-border activities. In particular,
the European Union ("E.U.") \17\ has created a unitary market whereby
a firm organized and recognized in one country need not obtain separate
recognition before conducting brokerage activities in another country.
This arrangement, commonly referred to as the "European Passport," is
the product of various Directives issued by the Council for the
European Union.\18\ The primary Directive underlying the European
Passport is the Investment Services Directive ("IDS"). The ISD
creates an authorization within the European Economic Area ("EEA"),
i.e., the European Passport, which enables firms to engage in
investment services anywhere in the EEA without separate authorization
by the host country. Under the ISD, the home country regulator (the
regulator or SRO in the country in which the firm maintains its head
office) supervises the CBFB with regard to the prudential aspects of
the broker's business, such as minimum capital requirements and the
segregation of customer funds, while the host country regulator (the
regulator or SRO in the country where the branch is located) is
responsible for the remaining aspects of the broker's business,
including fitness, sales practices and recordkeeping.\19\ Relief
pursuant to the European Passport is only available to branches, and
not subsidiaries, of E.U. firms. Minimum capital requirements for firms
covered by the ISD are set by the Capital Adequacy Directive and are
consistent with the Basel Capital Accord.
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\17\ The E.U. is composed of 25 member states that have agreed
to delegate some sovereignty on specific matters of joint interest
to European regulatory bodies. For example, the Council for the
European Union represents the governments for each member state and
enacts legislation in the form of Directives. Each member is
obligated to enact local legislation consistent with these
Directives.
\18\ The Commission relied on the operation of the European
Passport when it issued a Rule 30.10 Order to Eurex Deutschland. 67
FR 30785 (May 8, 2002).
\19\ On April 21, 2004, the Council for the European Union
adopted the Directive on Markets in Financial Instruments
("MIFID") as part of its Financial Services Action Plan. The MIFID
will amend the Capital Adequacy Directive and completely replace the
ISD, and must be implemented by E.U. member states no later than
April 30, 2006. The purpose of the MIFID is to extend the scope of
the ISD (and thus the European Passport) in terms of both financial
services and instruments covered. The MIFID does not alter the
premise underlying the existing ISD that the home country regulator
shall be responsible for supervising the prudential aspects of a
firm's business, while the host country regulator shall be
responsible for ensuring that the services provided by the branch
comply with E.U.-wide standards for conduct of business.
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With respect to Rule 30.10 relief, the Commission may have issued a
Rule 30.10 Order to both the host and home country regulator. However,
the original Orders and representations made by the CBFB and each
regulator did not contemplate a firm receiving confirmation of Rule
30.10 relief under either Order when it was not fully regulated by a
single regulator.
In recent years, Commission policy has evolved toward acceptance of
Rule 30.10 entities subject to multi-jurisdictional regulation. For
example, the Commission has confirmed Rule 30.10 relief to non-U.K.
entities operating a branch in the U.K. pursuant to the Rule 30.10
Order issued to FSA. Where each of the two regulators were recipients
of Rule 30.10 Orders, the Commission confirmed relief to the firm in
question based upon additional representations from the home country
[[Page 2623]]
(i.e., non-U.K.) regulator and the FSA that the branch's activities
would be regulated, in the aggregate, consistent with the terms of the
Rule 30.10 Order issued to each regulator, including a representation
from each regulator that it would provide the Commission with the
information regarding the branch's activities. In the circumstances
where the home country regulator was not the recipient of a Rule 30.10
Order, the Commission confirmed relief after undertaking a review of
the prudential requirements implemented by the home country regulator
and upon receipt of the additional representations regarding the
division of responsibilities for the supervision of the firm and
information sharing.
III. Procedural Requirements
The Commission believes that the Act's customer protection mandate
can be effectively maintained by authorizing NFA to confirm Rule 30.10
relief to an CBFB subject to combined regulation by authorities located
in two different jurisdictions under certain, pre-defined
circumstances. Specifically, the two regulators or SROs, in the
aggregate, must regulate the CBFB consistent with the provisions of
Appendix A as outlined in the Rule 30.10 Order issued to each regulator
or SRO. Moreover, each regulator or SRO must be willing and able to
share relevant information with each other and with the Commission.
Accordingly, the Commission is authorizing NFA to confirm Rule 30.10
relief to any CBFB that solicits or accepts orders (and accepts money,
securities or property to margin the trades that result or may result
therefrom) from U.S foreign futures and options customers and that is
fully regulated, in the aggregate, by a host and home country
regulator, each of which has received a Rule 30.10 Order from the
Commission (hereafter, "modified relief"). For a CBFB to receive
confirmation of modified relief, the CBFB: (1) Must apply for
confirmation of relief in accordance with the provisions set forth in
the host country regulator's or SRO's Rule 30.10 Order; (2) represent
that it will comply with the relevant provisions of each Rule 30.10
Order; (3) and agree to provide to each regulator or SRO any
information regarding transactions arising from such relief. In
addition, each regulator or SRO must confirm that it will monitor the
CBFB for compliance with the local laws, rules and regulations
governing those aspects of the broker's business subject to regulation
in its respective jurisdiction, and state that it will share
information with the Commission in accordance with the terms and
conditions of the applicable Rule 30.10 Order.
The Commission also is authorizing NFA to confirm modified Rule
30.10 relief to a CBFB that is organized and operating pursuant to the
European Passport (as described herein) from a branch location in a
jurisdiction whose regulator or SRO has received Rule 30.10 relief,
notwithstanding that the Commission has not issued a Rule 30.10 Order
issued to the home country regulator. As set forth above, the
Commission has determined that, in the aggregate, the regulatory
program governing the cross-border activity of any firm operating
pursuant to the European Passport from a branch located within a
jurisdiction whose regulator or SRO has received Rule 30.10 relief
provides a basis for permitting substituted compliance for purposes of
exemptive relief pursuant to Rule 30.10. Therefore, the Commission
believes that it is appropriate to no longer require a CBFB operating
pursuant to the European Passport to petition the Commission for
confirmation of relief when NFA already has been authorized to confirm
other standardized requests for relief.
The CBFB seeking the alternative modified Rule 30.10 relief under
this scenario must: (1) Apply for confirmation of relief in accordance
with the provisions set forth in the host country regulator's or SRO's
Rule 30.10 Order; (2) represent that it will be operating from a branch
located in the host country pursuant to the European Passport, and will
comply with the applicable provisions of the host country's Rule 30.10
Order and the applicable laws and regulations of its country of origin,
as well as all current and future Directives and other legislation
underlying the European Passport; and (3) agree to provide to the host
and home country regulator or SRO any information regarding
transactions made in accordance with such relief. In addition, both the
host and home country regulator, respectively, must confirm that they
will monitor the CBFB for compliance with the local laws, rules and
regulations governing those aspects of the broker's business subject to
regulation in its respective jurisdiction, and state that they will
share information with the Commission, either in accordance with the
terms and conditions of the applicable Rule 30.10 Order (host country
regulator) or pursuant to a separate written undertaking (home country
regulator). Prior to confirming modified Rule 30.10 relief under this
alternative method, NFA shall consult with Commission staff to ensure
that the information-sharing arrangement between the Commission and the
home country regulator is sufficient.
The Commission has determined, for the time being, to retain the
authority to determine whether Rule 30.10 relief is appropriate in
other circumstances, including those where a firm is organized in a
country whose home country regulator is the recipient of a Rule 30.10
order and seeks to conduct brokerage activities pursuant to the
European Passport through a branch from a location where the host
country regulator is not the recipient of a Rule 30.10 order. NFA shall
continue to forward to the appropriate Commission staff in accordance
with existing procedures those applications not addressed in this or
prior Orders granting NFA the authority to act on the Commission's
behalf with respect to the confirmation of relief under Rule 30.10.
By prior orders, the Commission, in accordance with section 8a(10)
of the Act, has authorized NFA to maintain various other Commission
registration records and certified NFA as the official custodian of
such records for this agency.\20\ Consistent with those orders, the
Commission has determined to authorize NFA to maintain and to serve as
the official custodian of records for filings made pursuant to the
relief set forth herein. This determination is based upon NFA's
continued representations regarding the implementation of rules and
procedures for maintaining and safeguarding all such records. In
maintaining the Commission's records pursuant to this Order, NFA shall
be subject to all other requirements and obligations imposed upon it by
the Commission in existing and future orders or regulations. In this
regard, NFA shall also implement such additional procedures (or modify
existing procedures) as are necessary to ensure the security and
integrity of the records in NFA's custody and acceptable to the
Commission; to facilitate prompt access to those records by Commission
and its staff, particularly as described in other Commission orders or
rules; to facilitate disclosure of public or nonpublic information in
those records when permitted by Commission orders or rules and to keep
logs as required by the Commission concerning disclosure of nonpublic
information; and otherwise to safeguard the confidentiality of the
records.
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\20\ 49 FR 39593 (October 9, 1984); 50 FR 34885 (August 28,
1995); 51 FR 25929 (July 17, 1986); 54 FR 19594 (May 8, 1989); 54
41133 (October 5, 1989); 58 FR 19657 (April 15, 1993); 62 FR 47792
(September 11, 1997).
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IV. Conclusion
The Commission has determined, in accordance with section 8a(10) of
the Act, to authorize NFA to grant exemptive relief to any CBFB that
solicits or accepts orders (and accepts money, securities or property
to margin the trades that result or may result therefrom) from U.S.
foreign futures and options customers and that: (1) Is fully regulated,
in the aggregate, by a host and home country regulator, each of which
has received a Rule 30.10 Order from the Commission; or (2) is
organized in a home country and operating pursuant to the European
Passport (as described herein) from a branch located in a host country
where the regulator or SRO has received a Rule 30.10 Order,
notwithstanding that the Commission has not issued a Rule 30.10 Order
to the home country regulator. The Commission has determined further to
authorize NFA to maintain records pertaining to the functions described
in this Order and to serve as the official custodian of those
Commission records. The Commission's authorization concerning records
is subject to the terms and conditions set forth above.
The Commission notes that confirmation of rule 30.10 relief
pursuant to this Order extends solely to conduct by the firm's branch
in its capacity as a member or regulatee of the host country regulator
from a location in the host country, subject to the Commission's
Limited Marketing Orders.\21\ As such, the Rule 30.10 relief would not
extend to conduct undertaken from any other office or affiliate of the
firm involving U.S. customers under the Act, including any office or
branch located within the home country.
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\21\ In 1992, the Commission issued an order commonly referred
to as the Limited Marketing Order. 57 FR 49644 (November 3, 1992).
The Limited Marketing Order permits firms that have received
confirmation of Rule 30.10 relief, without prior notice to the
Commission, to engage in limited marketing conduct with respect to
foreign futures or option contracts within the U.S. through their
employees or other representatives, subject to the terms and
conditions set forth therein. In 1994, the Commission expanded the
category of persons to whom qualified firms may direct limited
marketing conduct. 59 FR 42156 (August 17, 1994).
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NFA shall perform this function in accordance with the standards
established by the Act and the regulations and Commission orders,
including the procedural requirements set forth in Part III of this
Order, issued thereunder and shall provide the Commission with such
summaries and periodic reports as the Commission may determine are
necessary for the effective oversight of this program.
This determined is based upon the Congressional intent expressed in
Section 8a(10) of the Act that the Commission have the authority to
authorize NFA to perform any portion of the Commission's registration
responsibilities under the Act for purposes of carrying out these
responsibilities in the most efficient and cost-effective manner and
upon NFA's representations concerning the standards and procedures to
be followed and the reports to be generated in administering these
functions. This Order does not, however, authorize NFA to render "no-
action" positions, exemptions or interpretations with respect to
applicable disclosure, reporting, recordkeeping and registration
requirements. In addition, nothing in this Order shall affect the
Commission's authority to review NFA's performance of the Commission
functions listed above.
NFA is authorized to perform the functions specified herein until
such time as the Commission orders otherwise. Nothing in this Order
shall prevent the Commission from exercising the authority described
herein. NFA may submit to the Commission for decision any specific
matters that NFA has been authorized to perform, and Commission staff
will be available to discuss with NFA staff issues relating to the
implementation of this Order. Nothing in this Order affects the
applicability of previous orders issued by the Commission under Part
30.
V. Cost-Benefit Analysis
Section 15(a) of the Act requires the Commission to consider the
costs and benefits of its action before issuing a new regulation under
the Act. By its terms, Section 15(a) does not require the Commission to
quantify the costs and benefits of a new regulation or to determine
whether the benefits of the regulation outweigh the costs. Rather,
Section 15(a) simply requires the Commission to "consider the costs
benefits" of its action.
Section 15(a) further specifies that costs and benefits shall be
evaluated in light of five broad areas of market and public concern:
Protection of market participants and the public; efficiency,
competitiveness, an financial integrity of futures markets; price
discovery; sound risk management practices; and other public interest
considerations. Accordingly, the Commission could in its discretion
give greater weight to any one of the five enumerated areas and could
in its discretion determine that, notwithstanding its costs, a
particular rule was necessary or appropriate to protect the public
interest or to effectuate any of the provisions or to accomplish any of
the purposes of the Act. This Order is intended to create an expedited
process to confirm exemptive relief to a class of qualified foreign
brokers that would otherwise be required to seek relief through a more
time-consuming procedure.
1. Protection of market participants and the public. The Order does
not change the requirements to qualify for relief under Rule 30.10.
Accordingly, the Order has not effect on the Commission's ability to
protect market participants and the public.
2. Efficiency and competition. The Order should permit a firm
engaged in cross-border activities to more quickly secure exemptive
relief under Rule 30.10, and thus provides a benefit of greater
efficiency.
3. Financial integrity of futures markets and price discovery. The
Order does not have any effect, from the standpoint of imposing costs
or creating benefits, on the financial integrity of futures markets and
price discovery.
4. Sound risk management practices. The Order does not impact the
risk management practices of the futures and options industry.
5. Other public interest considerations. The performance of the
functions described herein by NFA will significantly reduce the amount
of Commission and staff resources dedicated to the Part 30 program.
Upon consideration of these factors, the Commission has determined
to issue this Order.
Issued in Washington, DC, on January 11, 2005, by the
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 05-814 Filed 1-13-05; 8:45 am]
BILLING CODE 8351-01-M