Release:              #4225-99
For Release:     January 8, 1999

COMMODITY FUTURES TRADING COMMISSION PROPOSES REVISIONS TO PART 30 OF ITS REGULATIONS

WASHINGTON -- The Commodity Futures Trading Commission (Commission) today announced proposed revisions to its rules 30.5 and 30.6. The Commission has re-evaluated the provisions of Part 30 in light of the changes in the futures and option industry since 1987, the year in which Part 30 was adopted, and its experience with implementing Part 30. With the advances in technology and accessibility to futures and option markets around the world, the Commission believes that it is appropriate to amend provisions of Part 30 at this time to further the regulatory goals of customer protection and to continue the Commission's efforts to update and to modernize its regulations. Specifically, the Commission proposes amending rule 30.5 to clarify which U.S. customers rule 30.5 exempt persons may solicit and from whom they may accept orders; to specify who may serve as an agent for service of process; to clarify who may carry the customer accounts of rule 30.5 firms; and to require that applicants for a rule 30.5 exemption make certain representations in order to obtain the exemption. The Commission also proposes amending rule 30.6 to ensure that U.S. customers receive appropriate disclosures concerning their investments in foreign futures and foreign option contracts.

The proposed amendments to Commission rules 30.5 and 30.6 will be published in a Federal Register notice shortly and comments must be received within 60 days of its publication. Copies of the proposal may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21^st Street, N.W., Washington, D.C., 20581, (202) 418-5100, or by accessing the Commission's website, www.cftc.gov.