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e7-22110

  • FR Doc E7-22110[Federal Register: November 14, 2007 (Volume 72, Number 219)]

    [Rules and Regulations]

    [Page 63976-63979]

    From the Federal Register Online via GPO Access [wais.access.gpo.gov]

    [DOCID:fr14no07-5]

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    COMMODITY FUTURES TRADING COMMISSION

    17 CFR Parts 1, 3, 4, 15, and 166

    RIN 3038-AC26

    Exemption From Registration for Certain Foreign Persons

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Final rule.

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    SUMMARY: The Commodity Futures Trading Commission (``Commission'') has

    amended Commission Regulation 3.10 concerning the registration of firms

    located outside the U.S. that are engaged in intermediating commodity

    interest transactions on U.S. designated contract markets (``DCMs'')

    and U.S. derivative transaction execution facilities (``DTEFs'').\1\

    The amended regulation codifies past actions of the Commission or its

    staff to permit certain foreign firms that limit their customers to

    foreign customers, and submit U.S. DCM and DTEF business on behalf of

    those customers for clearing on an omnibus basis through a registered

    futures commission merchant (``FCM''), to be exempt from registration

    as an FCM pursuant to section 4d of the Commodity Exchange Act

    (``Act''). The amended regulation similarly extends the relief from

    registration to those foreign persons acting in the capacity of an

    introducing broker (``IB''), commodity trading advisor (``CTA'') and

    commodity pool operator (``CPO'') solely on behalf of foreign

    customers.

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    \1\ Commission regulations referred to herein are found at 17

    CFR Ch. I (2007). References to trading on U.S. DCMs or DTEFs shall

    include trading that is subject to the rules of such entities as

    well.

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    DATES: Effective Date: December 14, 2007.

    FOR FURTHER INFORMATION CONTACT: Lawrence B. Patent, Deputy Director,

    or Andrew V. Chapin, Special Counsel, at (202) 418-5430, Division of

    Clearing and Intermediary Oversight, Commodity Futures Trading

    Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington,

    DC 20581. Electronic mail: lpatent@cftc.gov or achapin@cftc.gov.

    SUPPLEMENTARY INFORMATION:

    I. Background

    The Commission published for comment on April 2, 2007 proposed

    amendments to Commission Regulation 3.10 (``the Proposal'') \2\ to

    clarify when certain persons located outside the U.S. may conduct

    commodity interest activities with respect to U.S. markets on behalf of

    customers located outside the U.S. without having to register in the

    appropriate capacity with the Commission. In particular, the Commission

    proposed to exempt from registration as an FCM certain foreign firms

    that limit their customers to foreign customers and submit U.S. DCM and

    DTEF business on behalf of those customers for clearing on an omnibus

    basis through a registered FCM. These firms were referred to in the

    Proposal as ``foreign brokers.'' The Commission also proposed to create

    a single definition of ``foreign broker'' and ``commodity interest''

    consistent with the Proposal.

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    \2\ 72 FR 15637 (April 2, 2007).

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    Part 3 of the Commission's regulations governs the registration of

    intermediaries engaged in the offer and sale of, and providing advice

    concerning, futures and commodity options traded on U.S. markets,

    including both DCMs and DTEFs. In particular, Regulation 3.10 sets

    forth the manner in which FCMs, IBs, CTAs, CPOs, and leverage

    transaction merchants must apply for registration with the Commission.

    Regulation 3.10(c) also provides an exemption from registration for

    certain persons. Currently, the only exemption from registration as an

    FCM is for any person trading solely for proprietary accounts, as

    defined in Regulation 1.3(y).

    As explained in the Proposal, the Commission sought to provide

    clarity to its registration requirements under Part 3 by codifying the

    longstanding Commission policy, known as the ``foreign broker

    exemption,'' regarding the activities of certain foreign intermediaries

    engaged in soliciting or accepting commodity interest transactions

    solely on behalf of customers located outside the U.S. In particular,

    the Commission proposed to exempt from registration as an FCM any

    person that (1) limits its customers to customers located outside the

    U.S., (2) confines its commodity interest activities to areas outside

    the U.S, and (3) submits its trades for clearing on an omnibus basis

    through a registered FCM.

    II. Comments Regarding the Proposal

    The Commission received two comment letters on the Proposal, one

    from the National Futures Association (``NFA'') and one from the

    Futures Industry Association (``FIA''). Both NFA and FIA supported the

    Commission's initiative to codify the foreign broker exemption as a

    means to provide greater legal certainty to futures industry

    participants. However, FIA commented that the effect of the Proposal

    would be to extend the Commission's regulatory requirements over the

    activities of foreign brokers, rather than simply codify the

    Commission's existing policy. In particular, FIA stated that, as

    proposed, amended Regulation 3.10(c)(2)(ii) would subject foreign

    brokers to the full panoply of Commission regulations applicable to

    registered FCMs, such as requirements regarding fitness, customer funds

    segregation, and regulatory capital.\3\ As such, FIA recommended that

    the Commission revise the proposed amendment to Regulation 3.10(c) to

    limit the extent to which the provisions of the Act and Commission

    regulations apply in a manner consistent with the Commission's

    longstanding policy towards foreign brokers. In support of its request,

    FIA noted that the Commission has recognized that a foreign broker

    holding a customer omnibus account with a registered FCM does not

    implicate the same regulatory concerns as a foreign broker that has

    more direct contact with U.S. markets, such as a registered FCM

    clearing on a DCM or DTEF.\4\

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    \3\ Proposed Regulation 3.10(c)(2)(ii) provided that a foreign

    broker acting in accordance with the codified foreign broker

    exemption ``remains subject to all other provisions of the Act and

    of the rules, regulations, and orders thereunder.'' (emphasis

    added).

    \4\ See, e.g., 72 FR at 15639 (April 2, 2007).

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    Additionally, both FIA and NFA recommended that the Commission

    provide greater legal certainty to futures industry participants by

    similarly codifying existing Commission policy with respect to

    registration exemptions for other foreign intermediaries, i.e., IBs,

    CTAs and CPOs, that are not engaged in commodity interest activities on

    behalf of U.S. customers. In support of its request, FIA referred to

    the Federal Register release issued by the Commission promulgating

    final rules establishing the registration requirements and procedures

    for introducing brokers and other futures industry professionals. In

    that release, the Commission stated that:

    given this agency's limited resources, it is appropriate at this

    time to focus [the

    [[Page 63977]]

    Commission's] customer protection activities upon domestic firms and

    upon firms soliciting or accepting orders from domestic users of the

    futures markets and that the protection of foreign customers of

    firms confining their activities to areas outside this country, its

    territories, and possessions may best be for local authorities in

    such areas.\5\

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    \5\ 48 FR 35248, 35261 (August 3, 1983).

    Accordingly, FIA requested that the Commission amend its

    regulations to provide an exemption from registration to any foreign

    person engaged in the activity of an IB solely on behalf of customers

    located outside the U.S.

    Similarly, NFA referred to the no-action position taken by the

    Commission's Office of General Counsel stating that: (1) A person who

    operates a commodity pool outside of the territorial U.S. is not

    required to register as a CPO when such a person confines the pool

    activities to areas outside the territorial U.S., none of the

    participants in the pool is a resident or citizen of the U.S., and none

    of the funds or capital contributed to the pool is from U.S. sources;

    and (2) a trading advisor located outside the territorial U.S. who

    provides advice as to the advisability of trading futures contracts on

    domestic and foreign exchanges is not required to register when such a

    person confines its advisory services to areas outside of the

    territorial U.S., and none of its clients is a citizen or resident of

    the U.S.\6\ Accordingly, NFA requested that the Commission amend its

    regulations to provide an exemption from registration for any foreign

    person acting in the capacity of a CTA or CPO solely on behalf of

    customers located outside the U.S.

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    \6\ CFTC Staff Letter 76-21, [1975-1977 Transfer Binder] Comm.

    Fut. L. Rep. (CCH) ] 20,222 (August 15, 1976).

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    Consistent with this request, NFA further requested that the

    Commission amend Regulation 3.12(h) to create an exemption from

    registration as an associated person for any individual located in the

    branch office of a Commission registrant that does not solicit or

    accept orders from customers located in the U.S.

    The Commission did not receive any comments regarding its proposal

    to revise and reserve certain regulations to provide a single

    definition for ``foreign broker'' and ``commodity interest'' that would

    apply to all of its regulations.

    III. Final Regulations

    As set forth in the Proposal, the Commission believes it is

    appropriate to amend its regulations to provide greater legal certainty

    with respect to the commodity interest activities on behalf of non-U.S.

    customers that are undertaken on U.S. markets by persons located

    outside the U.S. It was the Commission's intent to codify its

    longstanding policy, and not to extend the scope of its regulations

    with respect to foreign brokers or other foreign intermediaries. As one

    of the commenters noted, transactions solicited or accepted by foreign

    brokers on behalf of non-U.S. customers for trading on U.S. markets

    directly implicate the pricing and hedging functions of the domestic

    markets, as would be the case for an entirely domestic transaction.\7\

    The Commission believes that the presence of a registered FCM in the

    clearing process obviates the need for a foreign broker to comply with

    the full panoply of Commission regulations applicable to registered

    FCMs. A registered FCM clearing a transaction on a DCM or DTEF, among

    other requirements, must satisfy the fitness standards administered by

    NFA and the minimum capital requirements set forth in Commission

    Regulation 1.17, as well as comply with the requirements regarding the

    segregation of customer funds set forth in section 4d of the Act.

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    \7\ See Tamari v. Bache & Co., 730 F.2d 1103, 1108 (7th Cir.

    1984), cert. denied, 469 U.S. 871 (1984) (holding that a U.S.

    federal district court had subject matter jurisdiction under the Act

    over a cause of action arising from trading on U.S. exchanges, even

    though the parties were located outside the U.S. and contacts

    between them occurred in a foreign country).

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    In light of the comments received and its own reconsideration of

    the issues involved, the Commission has determined to amend Regulation

    3.10 with certain revisions to the Proposal. As amended, Regulation

    3.10 will specify that a foreign broker is not required to register as

    an FCM if it: (1) Limits its customers to customers located outside the

    U.S., (2) confines its commodity interest activities to areas outside

    the U.S, and (3) submits its trades for clearing on an omnibus basis

    through a registered FCM. A foreign broker will remain subject to

    existing provisions applicable to the activities of a foreign broker,

    including Parts 15 to 21 of the Commission's regulations regarding

    large trader reporting,\8\ and Regulation 1.58 regarding gross

    collection of exchange-set margin. Conversely, a foreign broker will

    not be subject to any provisions of the Act or Commission rules,

    regulations and orders thereunder applicable solely to a registered FCM

    or to any person required to be so registered. For example, a foreign

    broker will not be required to comply with the minimum financial

    requirements or requirements regarding the segregation of customer

    funds, reporting or disclosure to customers, and related recordkeeping

    pertaining to the foregoing requirements. However, the provisions of

    the Act and Commission regulations applicable to ``any person'' will

    apply to a foreign broker, such as those prohibiting fraud or

    manipulation by a foreign broker trading for its own account.

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    \8\ See, e.g., Regulation 15.05, which states that, absent an

    existing agency agreement between a foreign broker and another U.S.

    person, an FCM is designated as the agent of a foreign broker for

    purposes of accepting delivery and service issued to the foreign

    broker by the Commission. The agency requirement similarly applies

    to any IB who introduces such an account to an FCM.

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    The Commission also has determined to adopt new Regulation

    3.10(c)(3) to provide an exemption from registration to other foreign

    intermediaries acting solely on behalf of customers located outside the

    U.S. In particular, the Commission is adopting new Regulation

    3.10(c)(3)(i) to provide an exemption from registration for any foreign

    person acting in the capacity of an IB, CTA or CPO solely with the

    respect to customers located outside the U.S., provided that all

    commodity interest transactions are submitted for clearing to a

    registered FCM. A foreign person acting in the capacity of a CTA or CPO

    will remain subject to the antifraud prohibition of section 4o of the

    Act. Otherwise, consistent with the revised regulation applicable to

    foreign brokers, new Regulation 3.10(c)(3)(ii) states that any foreign

    person acting in accordance with this registration exemption is not

    required to comply with those provisions of the Act and of the rules,

    regulations and orders thereunder applicable solely to any person

    registered in such capacity, or any person required to be so

    registered.

    Consistent with the amendments applicable to foreign

    intermediaries, the Commission also has determined to amend Regulation

    3.12 to provide an exemption from AP registration for any foreign

    individual located in the foreign branch office of a Commission

    registrant that engages in any activity as an AP, as defined in

    Regulation 1.3(aa), solely on behalf of customers located outside the

    U.S.\9\ A person exempt from AP registration pursuant to this provision

    may not supervise other individuals engaged in the solicitation of

    customers located in the U.S. for trading on a DCM or DTEF.

    ---------------------------------------------------------------------------

    \9\ Supra, n. 5. Regulation 1.3(aa) defines ``associated

    person'' to mean a natural person engaged in the solicitation or

    acceptance of customer orders, or the supervision of any person or

    persons so engaged.

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    Any person seeking to act in accordance with any of the foregoing

    exemptions from registration should

    [[Page 63978]]

    note that the prohibition on contact with U.S. customers applies to

    solicitation as well as acceptance of orders. If a person located

    outside the U.S. were to solicit prospective customers located in the

    U.S. as well as outside of the U.S., these exemptions would not be

    available, even if the only customers resulting from the efforts were

    located outside the U.S.\10\

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    \10\ A person wishing to act as an intermediary for security

    futures transactions on a U.S. DCM or DTEF may notice register as a

    securities broker-dealer (``BD'') if it is registered as an FCM or

    IB and is a member of NFA. See Section 15(b)(11) of the Securities

    Exchange Act (15 U.S.C. 78o(b)(11)) and 17 CFR 240.15b11-1. Foreign

    brokers taking advantage of the exemption from registration under

    the Act discussed herein would not qualify for notice registration

    as BDs. Accordingly, if such foreign brokers want to solicit or

    accept orders for security futures products traded on U.S. DCMs or

    DTEFs, they must fully register as BDs in accordance with Section

    15(b)(1) of the Securities Exchange Act and regulations thereunder,

    unless other relief from such registration is available. Foreign

    brokers may wish to consult the U.S. Securities and Exchange

    Commission (``SEC'') and/or private counsel regarding how taking

    advantage of this relief might affect their registration status with

    the SEC.

    ---------------------------------------------------------------------------

    The Commission's adoption of these rule amendments supersedes prior

    staff positions on these subjects. Because the rule amendments contain

    no substantive changes to prior staff letters, no party should be

    disadvantaged. The new regulations will make these staff positions more

    accessible and widely understood and obviate the need for individual

    relief.

    IV. Related Matters

    A. Administrative Procedure Act

    The Administrative Procedure Act generally requires that, before an

    agency adopts a rule, the agency provide an opportunity for notice and

    comment thereon. That opportunity is not required, however, when the

    agency for good cause finds such procedure unnecessary. The Commission

    has determined to amend Regulation 1.55(f) without opportunity for

    notice or comment. Notice and comment is unnecessary in this instance

    because the amendment to Regulation 1.55(f) solely corrects the

    reference to the citation for ``institutional customer'' in Regulation

    1.3.

    B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-611,

    requires that agencies, in proposing regulations, consider the impact

    of those regulations on small businesses. The Commission has previously

    established certain definitions of ``small entities'' to be used by the

    Commission in evaluating the impact of its regulations on such entities

    in accordance with the RFA.\11\ The Commission previously has

    determined that registered FCMs are not small entities for the purpose

    of the RFA because each FCM has an underlying fiduciary relationship

    with its customers, regardless of the size of the FCM.\12\ The

    Commission notes that certain foreign persons affected by the changes

    to the Commission's regulations would be registered as FCMs if not for

    the exemption provided therein and, as such, would maintain a fiduciary

    relationship with customers similar to the relationship maintained by

    each registered FCM. The Commission also previously has determined that

    registered CPOs are not small entities for the purpose of the RFA.\13\

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    \11\ 47 FR 18618-18621 (April 30, 1982).

    \12\ 47 FR 18619-18620.

    \13\ 47 FR 18619-18620.

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    Other foreign persons affected by the changes would be registered

    as IBs and CTAs if not for the exemption provided therein. The

    Commission has stated that it would evaluate within the context of a

    particular rule whether all or some affected IBs and CTAs would be

    considered to be small entities and, if so, the economic impact on them

    of any rule.\14\ Although certain foreign IBs and CTAs might be small

    entities for purposes of the rule, the amended rules will reduce the

    regulatory burden on all foreign IBs and CTAs.

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    \14\ 47 FR 18618-18620; see also 48 FR at 35276 (August 3,

    1983).

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    Therefore, the Acting Chairman, on behalf of the Commission, hereby

    certifies, pursuant to 5 U.S.C. 605(b), that these regulations will not

    have a significant economic impact on a substantial number of small

    entities. No comment was received regarding the impact of these

    amendments on small businesses.

    C. Paperwork Reduction Act

    As required by the Paperwork Reduction Act of 1995,\15\ the

    Commission submitted a copy of the proposed rule amendments to the

    Office of Management and Budget for its review. The Commission did not

    receive any public comments relative to its analysis of paperwork

    burdens associated with this rulemaking.

    ---------------------------------------------------------------------------

    \15\ Pub. L. 104-13 (May 13, 1995).

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    D. Costs and Benefits Analysis

    Section 15(a) of the Act requires the Commission to consider the

    costs and benefits of its actions before issuing new regulations under

    the Act. By its terms, Section 15(a) does not require the Commission to

    quantify the costs and benefits of new regulations or to determine

    whether the benefits of the regulations outweigh their costs. Rather,

    Section 15(a) requires the Commission to ``consider the cost and

    benefits'' of the subject regulations.

    The Commission published an analysis of costs and benefits when it

    proposed the rule amendments that it is now adopting.\16\ It did not

    receive any public comments pertaining to the analysis.

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    \16\ 72 FR at 15640 (April 2, 2007).

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    List of Subjects

    17 CFR Part 1

    Definitions, Registration, Minimum financial and reported

    requirements, Prohibited transactions in commodity options, Customers'

    money, securities and property, Miscellaneous.

    17 CFR Part 3

    Definitions, Foreign futures, Consumer protection, Foreign options,

    Registration requirements.

    17 CFR Part 4

    Advertising, Commodity futures, Consumer protection, Recordkeeping

    and reporting requirements.

    17 CFR Part 15

    Brokers, Reporting and recordkeeping requirements.

    17 CFR Part 166

    Authorization to trade, Customer protection.

    0

    In consideration of the foregoing, and pursuant to the authority

    contained in the Commodity Exchange Act and, in particular, Sections

    2(a)(1), 4(b), 4c and 8a thereof, 7 U.S.C. 2, 6(b), 6c and 12a (1982),

    and pursuant to the authority contained in 5 U.S.C. 552 and 552b

    (1982), the Commission hereby amends Chapter I of Title 17 of the Code

    of Federal Regulations as follows:

    PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT

    0

    1. The authority citation for part 1 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h,

    6i, 6j, 6k, 6l, 6m, 6n, 6o, 6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a,

    13a-1, 16, 16a, 19, 21, 23, and 24, unless otherwise noted.

    0

    2. Section 1.3 is amended by adding paragraphs (xx) and (yy) to read as

    follows:

    Sec. 1.3 Definitions.

    * * * * *

    (xx) Foreign Broker. This term means any person located outside the

    United States, its territories or possessions who

    [[Page 63979]]

    is engaged in soliciting or in accepting orders only from persons

    located outside the United States, its territories or possessions for

    the purchase or sale of any commodity interest transaction on or

    subject to the rules of any designated contract market or derivatives

    transaction execution facility and that, in or in connection with such

    solicitation or acceptance of orders, accepts any money, securities or

    property (or extends credit in lieu thereof) to margin, guarantee, or

    secure any trades or contracts that result or may result therefrom.

    (yy) Commodity Interest. This term means:

    (1) Any contract for the purchase or sale of a commodity for future

    delivery; and

    (2) Any contract, agreement or transaction subject to Commission

    regulation under section 4c or 19 of the Act.

    0

    3. Section 1.55 is amended by revising paragraph (f) to read as

    follows:

    Sec. 1.55 Distribution of ``Risk Disclosure Statement'' by futures

    commission merchants and introducing brokers.

    * * * * *

    (f) A futures commission merchant or, in the case of an introduced

    account, an introducing broker, may open a commodity futures account

    for an ``institutional customer'' as defined in Sec. 1.3(g) without

    furnishing such institutional customer the disclosure statements or

    obtaining the acknowledgments required under paragraph (a) of this

    section Sec. Sec. 1.33(g) and 1.65(a)(3), and Sec. Sec. 30.6(a),

    33.7(a), 155.3(b)(2), 155.4(b)(2) and 190.10(c) of this chapter.

    * * * * *

    Sec. 1.56 [Amended]

    0

    4. Section 1.56 is amended by removing and reserving paragraph (a).

    PART 3--REGISTRATION

    0

    5. The authority citation for part 3 continues to read as follows:

    Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a, 2, 4, 6, 6a, 6b, 6c,

    6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b,

    13c, 16a, 18, 19, 21, 23, unless otherwise noted.

    Sec. 3.1 [Amended]

    0

    6. Section 3.1 is amended by removing and reserving paragraph (f).

    0

    7. Section 3.10 is amended by revising paragraph (c) to read as

    follows:

    Sec. 3.10 Registration of futures commission merchants, introducing

    brokers, commodity trading advisors, commodity pool operators and

    leverage transaction merchants.

    * * * * *

    (c) Exemption from registration for certain persons. (1) A person

    trading solely for proprietary accounts, as defined in Sec. 1.3(y) of

    this chapter, is not required to register as a futures commission

    merchant: Provided, that such person remains subject to all other

    provisions of the Act and of the rules, regulations and orders

    thereunder.

    (2)(i) A foreign broker, as defined in Sec. 1.3(xx) of this

    chapter, is not required to register as a futures commission merchant

    if it submits any commodity interest transactions executed on or

    subject to the rules of designated contract market or derivatives

    transaction execution facility for clearing on an omnibus basis through

    a futures commission merchant registered in accordance with section 4d

    of the Act.

    (ii) A foreign broker acting in accordance with paragraph (c)(2)(i)

    of this section is not required to comply with those provisions of the

    Act and of the rules, regulations and orders thereunder applicable

    solely to any registered futures commission merchant or any person

    required to be so registered.

    (3)(i) A person located outside the United States, its territories

    or possessions engaged in the activity of: An introducing broker, as

    defined in Sec. 1.3(mm) of this chapter; a commodity trading advisor,

    as defined in Sec. 1.3(bb) of this chapter; or a commodity pool

    operator, as defined in Sec. 1.3(nn) of this chapter, in connection

    with any commodity interest transaction made on or subject to the rules

    of any designated contract market or derivatives transaction execution

    facility only on behalf of persons located outside the United States,

    its territories or possessions, is not required to register in such

    capacity: Provided, that any such commodity interest transaction

    executed on or subject to the rules of designated contract market or

    derivatives transaction execution facility is submitted for clearing

    through a futures commission merchant registered in accordance with

    section 4d of the Act.

    (ii) A person acting in accordance with paragraph (c)(3)(i) of this

    section remains subject to section 4o of the Act, but otherwise is not

    required to comply with those provisions of the Act and of the rules,

    regulations and orders thereunder applicable solely to any person

    registered in such capacity, or any person required to be so

    registered.

    * * * * *

    0

    8. Section 3.12 is amended by removing ``or'' at the end of paragraph

    (h)(1)(ii), removing the period and adding a semi-colon and ``or'' at

    the end of paragraph (h)(1)(iii)(D), and adding paragraph (h)(1)(iv) to

    read as follows:

    Sec. 3.12 Regulation of associated persons of futures commission

    merchants, introducing brokers, commodity trading advisors, commodity

    pool operators and leverage transaction merchants.

    * * * * *

    (h) * * *

    (1) * * *

    (iv) Engaged in any activity as an associated person, as defined in

    Sec. 1.3(aa) of this chapter, from a location outside the United

    States, its territories or possessions, and limits such activities to

    customers located outside the United States, its territories or

    possessions.

    * * * * *

    PART 4--COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS

    0

    9. The authority citation for part 4 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 4, 6(c), 6b, 6c, 6l, 6m, 6n, 6o, 12a

    and 23.

    Sec. 4.10 [Amended]

    0

    10. Section 4.10 is amended by removing and reserving paragraph (a).

    PART 15--REPORTS--GENERAL PROVISIONS

    0

    11. The authority citation for part 15 continues to read as follows:

    Authority: 7 U.S.C. 2, 5, 6(c), 6a, 6c(a)-(d), 6f, 6g, 6i, 6k,

    6m, 6n, 7, 9, 12a, 19 and 21, as amended by the Commodity Futures

    Modernization Act of 2000, Appendix E of Pub. L. 106-554, 114 Stat.

    2763 (2000).

    Sec. 15.00 [Amended]

    0

    12. Section 15.00 is amended by removing and reserving paragraph (g).

    PART 166--CUSTOMER PROTECTION RULES

    0

    13. The authority citation for part 166 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 6b, 6c, 6d, 6g, 6h, 6k, 6l, 6o, 7,

    12a, 21, and 23, as amended by the Commodity Futures Modernization

    Act of 2000, Appendix E of Pub. L. 106-554, 114 Stat. 2763 (2000).

    Sec. 166.1 [Amended]

    0

    14. Section 166.1 is amended by removing and reserving paragraph (b).

    Dated: November 7, 2007.

    By the Commission.

    David Stawick,

    Secretary of the Commission.

    [FR Doc. E7-22110 Filed 11-13-07; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: November 14, 2007



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