[Federal Register: October 22, 1996 (Volume 61, Number 205)] [Rules and Regulations] [Page 54731-54732] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr22oc96-4] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 4 Interpretation Regarding Use of Electronic Media by Commodity Pool Operators and Commodity Trading Advisors AGENCY: Commodity Futures Trading Commission. ACTION: Extension of comment period and effective date of interpretation. ----------------------------------------------------------------------- [[Page 54732]] SUMMARY: On August 8, 1996, the Commodity Futures Trading Commission (``Commission'') issued an Interpretation Regarding Use of Electronic Media by Commodity Pool Operators and Commodity Trading Advisors, 61 FR 42146 (August 14, 1996). The deadline for the submission of comments and the effective date was originally October 15, 1996. The Commission has determined to extend the period for public comment for thirty days, or until November 14, 1996. In addition, the Commission has determined to delay the effective date for a period of sixty days, or until December 16, 1996, to allow the Commission sufficient time to consider any additional comments that may be received during the extended comment period. The Pilot Program for electronic filing of commodity pool operator and commodity trading advisor disclosure documents will commence on October 15, 1996, as originally provided. DATES: The Interpretative Release referenced herein is effective on December 16, 1996. Written comments must be received on or before November 14, 1996. ADDRESSES: Comments should be submitted to Jean A. Webb, Secretary of the Commission, Commodity Futures Trading Commission, 1155 21st Street, N.W., Washington, D.C. 20581. In addition, comments may be sent by facsimile transmission to facsimile number (202) 418-5521, or by electronic mail to secretarycftc.gov. FOR FURTHER INFORMATION CONTACT: Susan C. Ervin, Deputy Director/Chief Counsel, or Gary L. Goldsholle, Attorney/Advisor, Division of Trading and Markets, Commodity Futures Trading Commission, 1155 21st Street, N.W., Washington, D.C. 20581. Telephone number: (202) 418-5450. Facsimile number: (202) 418-5536. Electronic mail: tmcftc.gov. SUPPLEMENTARY INFORMATION: On August 8, 1996, the Commission issued an Interpretation Regarding Use of Electronic Media by Commodity Pool Operators and Commodity Trading Advisors (``Interpretative Release'' or ``Release''). The Interpretative Release was designed to provide commodity pool operators (``CPOs''), commodity trading advisors (``CTAs''), and associated persons (``AP'') thereof, with guidance concerning the application of the Commodity Exchange Act and regulations thereunder to activities involving electronic media. The Commission sought comment on all issues discussed in the release, and any related issues, and provided that the effective date of the Interpretative Release would be October 15, 1996 and that comments should be received on or before that date. On October 7, 1996, the Managed Futures Association requested that the Commission postpone the effective date of the Interpretative Release until the Commission has completed its review of all comments received on the Release. The Commission has also received a second request to extend the comment period and the effective date. The Commission has determined to extend the comment period on the Interpretative Release for an additional thirty days and the effective date of the release for an additional sixty days. These postponements will provide additional time both for public comment on relevant issues and for the Commission's review of such comments prior to the effective date of the Release. The Commission emphasizes, however, that this deferment does not affect the statutory and regulatory requirements applicable to persons acting as CPOs and CTAs, whether by means of electronic media or otherwise. As noted in the Interpretative Release, ``persons using electronic media are subject to the same statutory and regulatory requirements under the Commission's regulatory framework as persons employing other modes of communication.'' 61 FR at 42150. The Commission sought to assist such persons in the use of electronic media by publishing guidance as to specific applications of existing requirements in the Interpretative Release. The Commission also sought comment in various sections as to whether alternative methodologies would be acceptable.\1\ The Commission also notes that the Commission staff letters and advisories cited in the Release, as stated therein, ``represent interpretations by the Commission's staff and do not necessarily represent interpretations by the Commission.'' 61 FR at 42149 n.24. These staff statements provide relevant precedent and guidance. --------------------------------------------------------------------------- \1\ For example, with respect to the use of personal identification numbers to substitute for manually signed acknowledgments, the Commission welcomed comment ``concerning other procedures for electronic acknowledgment that are consistent with the objectives stated above.'' 61 FR at 42160. --------------------------------------------------------------------------- Finally, although the Commission is delaying the effective date of the Interpretative Release pending the receipt and review of additional comments, CPOs and CTAs may continue to rely on the positions stated therein as ``safe harbor'' positions to aid CTAs and CPOs making use of electronic media pending further statements of the Commission's views. Additionally, the Pilot Program for electronic filing of CPO and CTA disclosure documents will commence on October 15, 1996, as originally proposed and is not affected by these extensions. Issued in Washington, D.C. on October 15, 1996, by the Commission. Jean A. Webb, Secretary of the Commission. [FR Doc. 96-26949 Filed 10-21-96; 8: 45am] BILLING CODE 6351-01-M
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