[Federal Register: November 17, 1997 (Volume 62, Number 221)] [Rules and Regulations] [Page 61226-61228] From the Federal Register Online via GPO Access [wais.access.gpo.gov] [DOCID:fr17no97-9] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 15 Changes in Reporting Levels for Large Trader Reports AGENCY: Commodity Futures Trading Commission. ACTION: Final rulemaking. ----------------------------------------------------------------------- SUMMARY: The Commodity Futures Trading Commission (Commission) is amending its regulations to raise the nominal reporting level at which futures commission merchants, clearing members, foreign brokers, and traders must file large trader reports in Standard and Poors (S&P) 500 futures from 300 to 600 contracts. Levels for filing reports in the E- mini S&P 500 futures will remain at 300 contracts. The effect of this rule amendment is to maintain at current levels the amount of information the Commission receives concerning large traders in these contracts. Effective Date: December 17, 1997. For Further Information Contact: Lamont L. Reese, Commodity Futures Trading Commission, Division of [[Page 61227]] Economic Analysis, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, telephone (202) 418-5310. SUPPLEMENTARY INFORMATION: I. Background Reporting levels are set in futures to ensure that the Commission receives adequate information to carry out its market surveillance programs. These are designed to detect and prevent market congestion and price manipulation and to enforce speculative position limits. In addition, the information serves as a basis to gauge overall hedging and speculative uses of the futures markets, use of the markets by foreign participants, and other matters of public concern. Generally, Parts 17 and 18 of the regulations require reports from members of contract markets, FCMs, or foreign brokers (firms) and traders, respectively, when a trader holds a ``reportable position''; i.e., any open position held or controlled by a trader at the close of business in any one future of a commodity traded on any one contract market that is equal to or in excess of the quantities fixed by the commission in Sec. 15.03 of the regulations.\1\ --------------------------------------------------------------------------- \1\ Firms which carry accounts for traders who hold ``reportable positions'' are required to identify such accounts on a form 102 and report on the series '01 forms any reportable positions in the account, the delivery notices issued or stopped by the account and any exchanges of futures for physicals. Traders who own or control reportable positions are required to file annually a CFTC form 40 giving certain background information concerning their trading in commodity futures and, on call by the Commission, must submit a form 103 showing positions and transactions in the contract market specified in the call. --------------------------------------------------------------------------- Recently, however, the Commission approved rule changes submitted by the Chicago Mercantile Exchange (CME) which reduce the size of the S&P futures contract from $500 to $250 per index point. To implement this change, the exchange doubled the size of existing open positions effective after the close of the market on October 31, 1997. This increased traders' position size relative to the Commission's current reporting level of 300 contracts, resulting in an increased reporting burden on the public and the processing of unneeded reports by the Commission. In order to maintain the current level of large trader information it receives, the Commission is raising the reporting level for S&P 500 futures from 300 to 600 contracts. The CME also currently trades a smaller size futures contract on the S&P 500 index. This contract, termed the ``E-mini,'' is valued at $10 per index point and is currently subject to the same 300-contract reporting level as the larger contract. Since the Commission desires to maintain the reporting level for the small contract at 300, the S&P E- mini contract will be listed separately in Sec. 15.03 of the regulations. II. Related Matters A. Notice and Comment The Administrative Procedure Act, 5 U.S.C. 553(b), requires in most instances that a notice of proposed rulemaking be published in the Federal Register, and that opportunity for comment be provided when an agency promulgates new regulations. Section 553(b) sets forth an exception, however, when the agency for good cause finds (and incorporates the findings and a brief statement of its reasons) that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest. The Commission finds that notice and public comments on the rule changes announced herein are unnecessary, because the amendments are routine determinations necessitated by technical changes to a currently-traded contract. These routine determinations are made to adjust reporting levels, when such changes lead to the receipt by the Commission of a larger number of reports than is necessary for efficient surveillance of the market. In this regard, it should be further noted that these amendments do not establish any new obligations under the Commodity Exchange Act (Act). On the contrary, these changes simplify compliance with the Act by not changing persons' reporting obligations under the rules in question. B. The Regulatory Flexibility Act (RFA) The RFA, 5 U.S.C. 601 et seq., requires that agencies consider the impact of those rules on small businesses. The Commission has previously determined that large traders and FCMs are not ``small entities'' for purposes of the RFA, 47 FR 18618-18621 (April 30, 1982). Therefore, the Chairperson, on behalf of the Commission, hereby certifies, pursuant to 5 U.S.C. 605(b), that the action taken herein will not have a significant economic impact on a substantial number of small entities. C. Paperwork Reduction Act (PRA) The PRA of 1995 (Pub. L. 104-13 (May 13, 1995)) imposes certain requirements on federal agencies (including the Commission) in connection with their conducting or sponsoring any collection of information as defined by the PRA. While this final rule imposes no additional burden, the group of rules (3038-0009) of which this is a part has the following burden: Average burden hours per response--0.3607 Number of respondents--6181 Frequency of response--Daily Copies of the Office of Management and Budget approved information collection package associated with this rule may be obtained from Desk Officer, CFTC, Office of Management and Budget, room 10202, NEOB, Washington, DC 20503, (202) 395-7340. List of Subjects in 17 CFR Part 15 Brokers, Reporting and recordkeeping requirements. In consideration of the foregoing, and pursuant to the authority contained in the Act and, in particular, sections 4g, 4i, 5, and 8a of the Act, 7 U.S.C. 6g, 6i, 7, and 12a (1990), the Commission hereby amends chapter I of title 17 of the Code of Federal Regulations as follows: PART 15--REPORTS--GENERAL PROVISIONS 1. The authority citation for part 15 continues to read as follows: Authority: 7 U.S.C. 2, 4, 5, 6a, 6c(a)-(d), 6f, 6g, 6i, 6k, 6m, 6n, 7, 9, 12a, 19, and 21; 5 U.S.C. 552 and 552(b). 2. Section 15.03 is revised to read as follows: Sec. 15.03 Quantities fixed for reporting. The quantities for the purpose of reports filed under Parts 17 and 18 of this chapter are as follows: ------------------------------------------------------------------------ Commodity Quantity ------------------------------------------------------------------------ Wheat (bushels)............................................ 500,000 Corn (bushels)............................................. 750,000 Soybeans (bushels)......................................... 500,000 Oats (bushels)............................................. 500,000 Cotton (bales)............................................. 5,000 Frozen Concentrated Orange Juice........................... 50 Soybean Oil (contracts).................................... 175 Soybean Meal (contracts)................................... 175 Live Cattle (contracts).................................... 100 Feeder Cattle (contracts).................................. 50 Hogs (contracts)........................................... 50 Sugar No. 11 (contracts)................................... 300 Sugar No. 14 (contracts)................................... 100 Cocoa (contracts).......................................... 100 Coffee (contracts)......................................... 50 Copper (contracts)......................................... 100 Gold (contracts)........................................... 200 Silver bullion (contracts)................................. 150 Platinum (contracts)....................................... 50 No. 2 Heating Oil (contracts).............................. 250 Crude Oil, Sweet (contracts)............................... 300 Unleaded Gasoline (contracts).............................. 150 Natural Gas................................................ 100 Long-Term U.S. Treasury Bonds (contracts).................. 500 [[Page 61228]] GNMA (contracts)........................................... 100 Three-Month (13-Week) U.S. Treasury Bills (contracts)...... 150 Long-Term U.S. Treasury Notes (contracts).................. 500 Medium-Term U.S. Treasury Notes (contracts)................ 300 Short-Term U.S. Treasury Notes (contracts)................. 200 Three-Month Eurodollar Time Deposit Rates (contracts)...... 850 Thirty-Day Interest Rates (contracts)...................... 100 One-Month Libor Rates (contracts).......................... 100 Foreign Currencies (contracts)............................. 200 U.S. Dollar Index (contracts).............................. 50 Standard and Poor's 500 Stock Price Index (contracts)...... 600 Standard and Poor's 500 Stock Price Index, E-Mini (contracts)............................................... 300 New York Stock Exchange Composite Index (contracts)........ 50 Amex Major Market Index, Maxi (contracts).................. 100 Nikkei Stock Index (contracts)............................. 50 Municipal Bonds (contracts)................................ 100 Value Line Average Index (contracts)....................... 50 All Other Commodities (contracts).......................... 25 ------------------------------------------------------------------------ Issued in Washington, D.C., this 7th day of November 1997 by the Commission. Jean A. Webb, Secretary of the Commission. [FR Doc. 97-29995 Filed 11-14-97; 8:45 am] BILLING CODE 6351-01-P
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