[Federal Register: June 25, 1997 (Volume 62, Number 122)]
[Rules and Regulations]
[Page 34165-34166]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25jn97-4]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 1


Alternative Method of Compliance With Requirements for Delivery
and Retention of Monthly, Confirmation and Purchase-and-Sale
Statements; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Correction to an Advisory.

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SUMMARY: This document contains a correction to the Advisory that was
published on Tuesday, June 10, 1997 (62 FR 31507). The Advisory related
to delivery by futures commission merchants (``FCMs'') of confirmation,
purchase-and-sale and monthly statements by means of electronic media
and related recordkeeping requirements. The correction clarifies
potential confusion in connection with the Commodity Futures Trading
Commission's (``Commission's'') definition of ``eligible customer'' for
purposes of the Advisory.

EFFECTIVE DATE: June 25, 1997.

FOR FURTHER INFORMATION CONTACT:
Susan C. Ervin, Deputy Director/Chief Counsel; Lawrence B. Patent,
Associate Chief Counsel; or Natalie A. Markman, Attorney-Advisor,
Division of Trading and Markets, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street, N.W., Washington, DC 20581.
Telephone: (202) 418-5450.

SUPPLEMENTARY INFORMATION: On June 10, 1997, the Commission published
an Advisory issuing guidance to FCMs concerning alternative methods of
compliance by FCMs with requirements in Commission Rules 1.33 and 1.46
pertaining to the delivery of specified customer account documents and
requirements for recordkeeping in Commission Rule 1.31. The Commission
defined an ``eligible customer,'' for purposes of the Advisory, to
include any person who is an ``institutional customer,'' as
``currently'' defined by Federal Reserve Board (``FRB'') Rule
225.2(g).\1\ The Advisory included a list of the persons included in
the Rule

[[Page 34166]]

225.2(g) definition \2\ but, in an effort to eliminate any possible
confusion, the Commission makes the following correction: In the
Federal Register published June 10, 1997, on page 31509, in the third
column, in paragraph (2), replace ``as currently defined by FRB Rule
225.2(g)'' with ``as defined by FRB Rule 225.2(g) on April 20, 1997.''
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    \1\ 12 CFR 225.2(g) (1996).
    \2\ The following were ``institutional customers'' under the FRB
rule:
    (1) a bank (acting in an individual or fiduciary capacity),
savings and loan association, insurance company, investment company
registered under the ICA, or corporation, partnership,
proprietorship, organization or institutional entity with a net
worth exceeding $1,000,000;
    (2) an employee benefit plan with assets exceeding $1,000,000,
or whose investment decisions are made by a bank, insurance company
or investment adviser registered under the Investment Advisers Act
of 1940;
    (3) a natural person whose net worth (or joint net worth with a
spouse) exceeds $1,000,000;
    (4) a broker-dealer or option trader registered under the SEA,
or other securities, investment or banking professional; or
    (5) an entity whose equity owners are institutional customers.

    Issued in Washington, D.C. on June 20, 1997 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 97-16625 Filed 6-24-97; 8:45 am]
BILLING CODE 6351-01-M

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