[(Volume 65, Number 79)] [Unified Agenda] From the Federal Register Online via GPO Access [frwais.access.gpo.gov] [DOCID:ua30no00_048-1] [page 74821-74823] COMMODITY FUTURES TRADING COMMISSION (CFTC) _______________________________________________________________________ [[page 74821]] Part XLVIII Commodity Futures Trading Commission _______________________________________________________________________ Semiannual Regulatory Agenda [[page 74822]] COMMODITY FUTURES TRADING COMMISSION 17 CFR Ch. I Regulatory Flexibility Agenda AGENCY: Commodity Futures Trading Commission. ACTION: Semiannual regulatory agenda. _______________________________________________________________________ SUMMARY: The Commodity Futures Trading Commission, in accordance with the requirements of the Regulatory Flexibility Act, is publishing a semiannual agenda of significant rules which the Commission expects to propose or promulgate over the next year. For this edition of the Commission's agenda, the most important and significant regulatory actions are included in the Regulatory Plan, which appears in part II of this issue of the Federal Register. The Regulatory Plan entries are listed in the table of contents below and are denoted by a bracketed bold reference, which directs the reader to the appropriate sequence number in part II. The Commission welcomes comments from small entities and others on the agenda. FOR FURTHER INFORMATION CONTACT: Ms. Barbara Webster Black, Special Assistant to the Executive Director, Commodity Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581, (202) 418-5130, [email protected]. SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act, 5 U.S.C. 601, et seq. (RFA), sets forth a number of requirements for agency rulemaking. Among other things, the RFA requires that: (a) During the months of April and October of each year, each agency shall publish in the Federal Register a regulatory flexibility agenda that shall contain: (1) A brief description of the subject area of any rule which the agency expects to propose or promulgate which is likely to have a significant economic impact on a substantial number of small entities; (2) A summary of the nature of any such rule under consideration for each subject area listed in the agenda pursuant to paragraph (1), the objectives and legal basis for the issuance of the rule, and an approximate schedule for completing action on any rule for which the agency has issued a general notice of proposed rulemaking; and (3) The name and telephone number of an agency official knowledgeable about the items listed in paragraph (1). 5 U.S.C. 602(a). The Commission has prepared an agenda of significant rules which it presently expects may be considered during the course of the next year, irrespective of their potential impact on small entities.\1\ In this regard, section 602(d) of the RFA, 5 U.S.C. 602(d), provides: ``Nothing in [section 602] precludes an agency from considering or acting on any matter not included in a regulatory flexibility agenda or requires an agency to consider or act on any matter listed in such agenda.'' The Commission's October 2000 regulatory flexibility agenda is set forth below. Issued in Washington, DC, on August 28, 2000 by the Commission. Jean A. Webb, Secretary of the Commission. \1\ The Commission published its definition of small entity to be used in connection with rulemaking proceedings on April 30, 1982 (47 FR 18618). Pursuant to that definition, the Commission is not required to list many of the agenda items contained in this regulatory flexibility agenda. See 5 U.S.C. 602(a)(1). Moreover, the Commission has previously certified, pursuant to section 605 of the RFA, 5 U.S.C. 605, that certain items contained in this agenda will not have a significant economic impact on a substantial number of small entities. Accordingly, the listing of a rule in this regulatory flexibility agenda should not, in any event, be taken as a determination that a rule, when proposed or promulgated, will in fact require a regulatory flexibility analysis. However, the Commission hopes that the publication of an agenda which includes significant rules, regardless of their potential impact on small entities, may serve the public generally by providing an early and meaningful opportunity to participate in and comment on the formulation of new or revised regulations. In addition to publishing the regulatory flexibility agenda, the Commission also makes available to the public, on a monthly basis, a calendar and, on a weekly basis, an advisory which lists rules that the Commission is considering or will consider in the near future. Commodity Futures Trading Commission--Proposed Rule Stage ---------------------------------------------------------------------------------------------------------------- Regulation Sequence Title Identification Number Number ---------------------------------------------------------------------------------------------------------------- 4398 Denomination of Customer Funds and Location of Depositories........................ 3038-AB31 4399 Segregated Account; Daily Computation and Record................................... 3038-AB52 ---------------------------------------------------------------------------------------------------------------- Commodity Futures Trading Commission--Final Rule Stage ---------------------------------------------------------------------------------------------------------------- Regulation Sequence Title Identification Number Number ---------------------------------------------------------------------------------------------------------------- 4400 Performance Disclosures for Commodity Trading Advisors and Commodity Pool Operators 3038-AB39 4401 Public Reporting by Operators of Certain Large Commodity Pools--Regulations 4.7, 3038-AB40 4.12, and 4.27...................................................................... 4402 Market Rule Review Procedures...................................................... 3038-AB44 4403 Registration Exemptions Pertaining to the Offer and Sale of Foreign Futures and 3038-AB45 Foreign Options Contracts to Customers Located in the United States................. 4404 Revision of Commission's Procedure for the Review of Contract Market Rules......... 3038-AB50 4405 Minimum Financial Requirements for Futures Commission Merchants and Introducing 3038-AB54 Brokers............................................................................. [[page 74823]] 4406 New Regulatory Framework for Multilateral Transaction Execution Facilities, 3038-AB55 Intermediaries, and Clearing Organizations (Reg Plan Seq No. 164)................... 4407 Rules Relating to Intermediaries of Commodity Interest Transactions (Reg Plan Seq 3038-AB56 No. 165)............................................................................ 4408 New Regulatory Framework for Clearing Organizations (Reg Plan Seq No. 166)......... 3038-AB57 4409 Exemption for Bilateral Transactions (Reg Plan Seq No. 167)........................ 3038-AB58 ---------------------------------------------------------------------------------------------------------------- References in boldface appear in the Regulatory Plan in Part II of this issue of the Federal Register. Commodity Futures Trading Commission--Completed Actions ---------------------------------------------------------------------------------------------------------------- Regulation Sequence Title Identification Number Number ---------------------------------------------------------------------------------------------------------------- 4410 Exclusion for Certain Otherwise Regulated Persons From the Definition of the Term 3038-AB34 ``Commodity Pool Operator''......................................................... 4411 Insider Trading--Regulation 1.59................................................... 3038-AB35 4412 Definition of a Principal.......................................................... 3038-AB36 4413 Rule 4.7: Exemption From Certain Part 4 Requirements With Respect to Qualified 3038-AB37 Eligible Participants and Qualified Eligible Clients................................ 4414 Contingent EFP Prohibition......................................................... 3038-AB41 4415 Direct Foreign Order Transmittal................................................... 3038-AB46 4416 Minimum Financial Requirements for Futures Commission Merchants and Introducing 3038-AB49 Brokers............................................................................. 4417 Minimum Financial Requirements for Futures Commission Merchants and Introducing 3038-AB51 Brokers............................................................................. 4418 Profile Documents for Commodity Pools.............................................. 3038-AB60 ---------------------------------------------------------------------------------------------------------------- _______________________________________________________________________ Commodity Futures Trading Commission (CFTC) Proposed Rule Stage _______________________________________________________________________ 4398. DENOMINATION OF CUSTOMER FUNDS AND LOCATION OF DEPOSITORIES
Priority: Substantive, Nonsignificant Legal Authority: 7 USC 1a; 7 USC 2; 7 USC 2a; 7 USC 4; 7 USC 4a; 7 USC 6; 7 USC 6a to 6h; 7 USC 6l CFR Citation: Not Yet Determined Legal Deadline: None Abstract: The Commission is proposing rules requesting public comment on how to address the risks relating to holding segregated funds offshore or in foreign currencies. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ Concept Release 12/30/97 62 FR 67841 NPRM 12/00/00 NPRM Comment Period End 02/00/01 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Agency Contact: James L. Carley, Attorney, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581 Phone: 202 418-5438 Email: [email protected] RIN: 3038-AB31 __________________________________________________________________ 4399. SEGREGATED ACCOUNT; DAILY COMPUTATION AND RECORD Priority: Substantive, Nonsignificant Legal Authority: 7 USC 6d CFR Citation: 17 CFR 1.32 Legal Deadline: None Abstract: The Commodity Futures Trading Commission is proposing to amend Rule 1.32 to provide that a futures commission merchant (FCM), when computing its segregation requirement, may offset deficits in customer accounts with readily marketable securities deposited by such customers to margin their futures and option positions. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 10/00/00 NPRM Comment Period End 11/00/00 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Agency Contact: Thomas J. Smith, Special Counsel, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1121 21st Street NW, Washington, DC 20581 Phone: 202 418-5495 Email: [email protected] RIN: 3038-AB52 [[page 74824]] _________________________________________________________________ [November 30, 2000 (Volume 65, Number 231)] [Unified Agenda] From the Federal Register Online via GPO Access [frwais.access.gpo.gov] [DOCID:ua30no00_048-4] [page 74824] Commodity Futures Trading Commission (CFTC) Final Rule Stage _______________________________________________________________________ 4400. PERFORMANCE DISCLOSURES FOR COMMODITY TRADING ADVISORS AND COMMODITY POOL OPERATORS Priority: Substantive, Nonsignificant Legal Authority: 7 USC 6n; 7 USC 6o; 7 USC 12a CFR Citation: 17 CFR 4.25; 17 CFR 4.35 Legal Deadline: None Abstract: The Commodity Futures Trading Commission is proposing amendments to the requirements concerning the presentation of rate of return data by commodity trading advisors and commodity pool operators. The Commission's proposed rules address computational and disclosure matters relating to participating in commodity trading advisor programs on a partially-funded basis. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ ANPRM 06/18/98 63 FR 33297 ANPRM Comment Period End 09/16/98 NPRM 08/02/99 64 FR 41843 NPRM Comment Period End 10/01/99 Final Action 10/00/00 Final Action Effective 12/00/00 Regulatory Flexibility Analysis Required: Undetermined Small Entities Affected: No Government Levels Affected: None Agency Contact: Robert B. Wasserman, Associate Director, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581 Phone: 202 418-5092 Fax: 202 418-5528 Email: [email protected] RIN: 3038-AB39 _________________________________________________________________ 4401. PUBLIC REPORTING BY OPERATORS OF CERTAIN LARGE COMMODITY POOLS-- REGULATIONS 4.7, 4.12, AND 4.27 Priority: Substantive, Nonsignificant Legal Authority: 7 USC 6l CFR Citation: 17 CFR 4.7; 17 CFR 4.12; 17 CFR 4.27 (Proposed) Legal Deadline: None Abstract: The proposed regulatory amendments would require large commodity pools or ``hedge funds'' to file quarterly financial reports and risk information. These data would be published to enable the public and regulatory bodies to assess the potential financial systemic risk posed by such funds. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 04/17/00 65 FR 20395 NPRM Comment Period End 06/16/00 Final Action 12/00/00 Final Action Effective 01/00/01 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Additional Information: The April 17, 2000 NPRM (65 FR 20395) was published with an erroneous RIN, 3038-AB53. Agency Contact: Tobey Kaczensky, Special Counsel, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581 Phone: 202 418-5460 Fax: 202 418-5520 Email: [email protected] RIN: 3038-AB40 _________________________________________________________________ 4402. MARKET RULE REVIEW PROCEDURES Priority: Other Significant Legal Authority: 7 USC 1a; 7 USC 8; 7 USC 9; 7 USC 12; 7 USC 13a; 7 USC 16; 7 USC 19; 7 USC 21; 7 USC 23; 7 USC 24; 7 USC 2; 7 USC 2a; 7 USC 4; 7 USC 4a; 7 USC 6; 7 USC 6a to 6p; 7 USC 7; 7 USC 7a to 7b; 7 USC 12a; 7 USC 12c; 7 USC 13a-1; 7 USC 16a CFR Citation: 17 CFR 1 Legal Deadline: None Abstract: The CFTC is proposing to amend its contract market rule review and approval procedures to allow for additional categories of exchange rule amendments to be approved automatically, upon adoption by the exchange, and to permit such amendments to be submitted to the Commission in a single, weekly, summary filing rather than in individual submissions. For certain other rules, the review time would be reduced to three days. The proposed rules also reorganize, in a clearer and more accessible format, the Commission's rules on expedited approval procedures for proposed rule amendments to exchange contract terms and conditions. The proposed rules will necessitate the filing of fewer individual submissions by U.S. exchanges with the Commission and will reduce unnecessary burdens associated with the Commission's review and approval of proposed exchange rules. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 07/15/99 64 FR 38159 NPRM Comment Period End 08/16/99 Final Action 10/00/00 Final Action Effective 12/00/00 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: Undetermined Agency Contact: Richard A. Shilts, Director, Market Analysis, Division of Economic Analysis, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581 Phone: 202 418-5260 Fax: 202 418-5527 Email: [email protected] RIN: 3038-AB44 _________________________________________________________________ 4403. REGISTRATION EXEMPTIONS PERTAINING TO THE OFFER AND SALE OF FOREIGN FUTURES AND FOREIGN OPTIONS CONTRACTS TO CUSTOMERS LOCATED IN THE UNITED STATES Priority: Substantive, Nonsignificant Legal Authority: 7 USC 2(a)(1)(A); 7 USC 4(b); 7 USC 4c CFR Citation: 17 CFR 30.1; 17 CFR 30.4; 17 CFR 30.10 Legal Deadline: None Abstract: The Commission proposes to codify some of the interpretations and positions that its staff has taken regarding registration requirements under Part 30 of the Commission's rules, which governs, generally, the solicitation and sale of foreign futures and foreign options contracts to customers located in the United States. The Commission proposes to modify Rule 30.4(a) by clarifying that foreign [[page 74825]] futures and options brokers, including those with U.S. bank branches, are not required to register as futures commission merchants (FCMs) pursuant to Rule 30.4, or seek Rule 30.10 relief, if they fall generally into the following categories: (1) those that carry customer omnibus accounts for U.S. FCMs; (2) those that carry U.S. affiliate accounts that are proprietary to the foreign futures and options broker; and (3) those that carry U.S. accounts that are proprietary to a U.S. FCM. In addition, proposed Rule 30.10(a) will specify representations that must be made by a foreign futures and options broker that has U.S. bank branches in order to obtain a Rule 30.10 comparability exemption or to come within the registration exception of Rule 30.4. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 08/26/99 64 FR 46613 NPRM Comment Period End 10/25/99 Final Action 01/00/01 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Agency Contact: Susan A. Elliott, Senior Attorney, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, DC 20581 Phone: 202 418-5464 Fax: 202 418-5528 Email: [email protected] RIN: 3038-AB45 _________________________________________________________________ 4404. REVISION OF COMMISSION'S PROCEDURE FOR THE REVIEW OF CONTRACT MARKET RULES Priority: Substantive, Nonsignificant Legal Authority: 7 USC 6; 7 USC 6c; 7 USC 7; 7 USC 7a; 7 USC 8; 7 USC 8a CFR Citation: 17 CFR 1.41(z) Legal Deadline: None Abstract: The CFTC has proposed to revise its procedures for the review of all types of contract market rule changes. Under the proposed new Regulation 1.41(z), a contract market rule could be placed into effect on the business day after the CFTC had received a submission for the rule that contained, among other things, the text and a brief explanation of the rule and a certification that the rule is not inconsistent with the Commodity Exchange Act or with the CFTC regulations. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 11/26/99 64 FR 66428 NPRM Comment Period Extended 01/24/00 NPRM Comment Period End 02/24/00 Final Action 10/00/00 Final Action Effective 12/00/00 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Agency Contact: David P. Van Wagner, Acting Associate Director, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581 Phone: 202 418-5481 Email: [email protected] RIN: 3038-AB50 _________________________________________________________________ 4405. MINIMUM FINANCIAL REQUIREMENTS FOR FUTURES COMMISSION MERCHANTS AND INTRODUCING BROKERS Priority: Substantive, Nonsignificant Legal Authority: 7 USC 6p CFR Citation: 17 CFR 1.17 Legal Deadline: None Abstract: The Commodity Futures Trading Commission is proposing to amend Rule 1.17(c)(5)(xiii), which requires a futures commission merchant (FCM) or an introducing broker (IB), when computing its adjusted net capital, to take a capital charge for certain unsecured receivables due from foreign brokers. Currently, an FCM or IB may exclude from the capital charge unsecured receivables that represent amounts required to be on deposit with a foreign broker to maintain futures and option positions on a foreign board of trade. The proposal would amend the Rule by expanding the amount of the unsecured receivable that may be excluded from the capital charge. Timetable: ________________________________________________________________________ Action Date FR Cite ________________________________________________________________________ NPRM 08/28/00 65 FR 52051 NPRM Comment Period End 09/27/00 Final Action 11/00/00 Regulatory Flexibility Analysis Required: No Small Entities Affected: No Government Levels Affected: None Agency Contact: Thomas J. Smith, Special Counsel, Division of Trading and Markets, Commodity Futures Trading Commission, Three Lafayette Centre, 1121 21st Street NW, Washington, DC 20581 Phone: 202 418-5495 Email: [email protected] RIN: 3038-AB54 _________________________________________________________________ 4406. NEW REGULATORY FRAMEWORK FOR MULTILATERAL TRANSACTION EXECUTION FACILITIES, INTERMEDIARIES, AND CLEARING ORGANIZATIONS Regulatory Plan: This entry is Seq. No. 164 in Part II of this issue of the Federal Register. RIN: 3038-AB55 _________________________________________________________________ 4407. RULES RELATING TO INTERMEDIARIES OF COMMODITY INTEREST TRANSACTIONS Regulatory Plan: This entry is Seq. No. 165 in Part II of this issue of the Federal Register. RIN: 3038-AB56 _________________________________________________________________ 4408. NEW REGULATORY FRAMEWORK FOR CLEARING ORGANIZATIONS Regulatory Plan: This entry is Seq. No. 166 in Part II of this issue of the Federal Register. RIN: 3038-AB57 _________________________________________________________________ 4409. EXEMPTION FOR BILATERAL TRANSACTIONS Regulatory Plan: This entry is Seq. No. 167 in Part II of this issue of the Federal Register. RIN: 3038-AB58 [[page 74826]] _________________________________________________________________ 4410. EXCLUSION FOR CERTAIN OTHERWISE REGULATED PERSONS FROM THE DEFINITION OF THE TERM ``COMMODITY POOL OPERATOR'' Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 4.5 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Final Action 04/25/00 65 FR 24127 Final Action Corrected 05/04/00 65 FR 25980 Final Action Effective 05/25/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Barbara Stern Gold Phone: 202 418-5450 Email: [email protected] RIN: 3038-AB34 _________________________________________________________________ 4411. INSIDER TRADING--REGULATION 1.59 Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 1.59 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Final Action 08/04/00 65 FR 47843 Final Action Effective 12/04/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Joshua Marlow Phone: 202 418-5484 Email: [email protected] RIN: 3038-AB35 _________________________________________________________________ 4412. DEFINITION OF A PRINCIPAL Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 3.1; 17 CFR 4.10 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Withdrawn 06/22/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Lawrence B. Patent Phone: 202 418-5439 Email: [email protected] RIN: 3038-AB36 _________________________________________________________________ 4413. RULE 4.7: EXEMPTION FROM CERTAIN PART 4 REQUIREMENTS WITH RESPECT TO QUALIFIED ELIGIBLE PARTICIPANTS AND QUALIFIED ELIGIBLE CLIENTS Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 4.7 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Final Action 08/04/00 65 FR 47848 Final Action Effective 08/04/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Helene D. Schroeder Phone: 202 418-5424 Fax: 202 418-5528 Email: [email protected] RIN: 3038-AB37 _________________________________________________________________ 4414. CONTINGENT EFP PROHIBITION Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is undetermined. CFR Citation: 17 CFR 1.38a Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Withdrawn 07/21/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Riva Spear Adriance Phone: 202 418-5494 Fax: 202 418-5536 Email: [email protected] RIN: 3038-AB41 _________________________________________________________________ 4415. DIRECT FOREIGN ORDER TRANSMITTAL Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 30.12 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Final Action 08/02/00 65 FR 47275 Final Action Effective 09/01/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Andrew V. Chapin Phone: 202 418-5465 Fax: 202 418-5547 Email: [email protected] RIN: 3038-AB4 ___________________________________________________________________ 4416. MINIMUM FINANCIAL REQUIREMENTS FOR FUTURES COMMISSION MERCHANTS AND INTRODUCING BROKERS Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 1.17 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ NPRM 06/02/00 65 FR 35304 Final Action 08/24/00 65 FR 51529 Final Action Effective 09/25/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Thomas J. Smith Phone: 202 418-5495 Email: [email protected] RIN: 3038 _______________________________________________________________________ 4417. MINIMUM FINANCIAL REQUIREMENTS FOR FUTURES COMMISSION MERCHANTS AND INTRODUCING BROKERS Priority: Substantive, Nonsignificant CFR Citation: 17 CFR 1.17 Completed: ________________________________________________________________________ Reason Date FR Cite ________________________________________________________________________ Final Action 04/21/00 65 FR 21309 Final Action Effective 05/22/00 Regulatory Flexibility Analysis Required: No Government Levels Affected: None Agency Contact: Thomas J. Smith Phone: 202 418-5495 Email: [email protected] RIN:
======== RETURN TO INDEX ========