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  • [Federal Register: January 25, 2008 (Volume 73, Number 17)]

    [Proposed Rules]

    [Page 4499-4502]

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

    [DOCID:fr25ja08-19]

    =============================================================

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    COMMODITY FUTURES TRADING COMMISSION

    17 CFR Parts 3 and 30

    RIN 3038-AC26

    Exemption From Registration for Certain Firms With Regulation

    30.10 Relief

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Proposed rules.

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

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

    proposing to amend the regulations regarding the registration of

    certain firms located outside the U.S. that are engaged in commodity

    interest activities with respect to trading on U.S. designated contract

    markets (``DCMs'') and U.S. derivative transaction execution facilities

    (``DTEFs'').\1\ The amended regulation would codify past actions of the

    Commission's staff permitting certain foreign firms that have confirmed

    relief from registration as futures commission merchants (``FCMs'') in

    accordance with the regulations to introduce to registered FCMs certain

    U.S. customers in connection with trading U.S. DCM and DTEF listed

    futures and commodity options without having to register as an

    introducing broker pursuant to section 4d of the Commodity Exchange Act

    (``Act''). The Commission also is proposing to revoke the regulations

    regarding quarterly reporting requirements for foreign futures and

    foreign options transactions.

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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: Comments must be received on or before February 25, 2008.

    ADDRESSES: Comments may be submitted, identified by RIN 3038-AC26, by

    any of the following methods:

    Federal eRulemaking Portal: http://www.regulations.gov.

    Follow the instructions for submitting comments.

    E-mail: secretary@cftc.gov. Include ``Exemption from

    Registration for Certain Firms with Regulation 30.10 Relief'' in the

    subject line of the message.

    Fax: 202/418-5521.

    Mail or Courier: Send to David Stawick, Secretary,

    Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st

    St., NW., Washington, DC 20581.

    All comments received will be posted without change to http://www.cftc.gov

    , including any personal information provided.

    FOR FURTHER INFORMATION CONTACT: Andrew V. Chapin, Special Counsel, at

    (202) 418-5465, Division of Clearing and Intermediary Oversight,

    Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st

    Street, NW., Washington, DC 20581. Electronic mail: achapin@cftc.gov.

    SUPPLEMENTARY INFORMATION:

    I. Background Information

    A. Registration Requirements for Commodity Interest Activities on U.S.

    Markets

    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, introducing brokers (``IBs''),

    commodity trading advisors (``CTAs''), commodity pool operators

    (``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. For example,

    Regulation 3.10(c)(1) provides an exemption from registration as an FCM

    for any person trading solely for proprietary accounts, as defined in

    Regulation 1.3(y).

    The Commission recently adopted amendments to Regulation 3.10(c) to

    codify the Commission's longstanding policy towards certain foreign

    intermediaries, known as foreign brokers.\2\ New Regulation 3.10(c)(2)

    provides an exemption from registration as an FCM to any foreign broker

    that limits its customers to persons located outside the U.S. and

    submits transactions executed on U.S. exchanges for clearing on an

    omnibus basis through a registered FCM. The Commission also promulgated

    Regulation 3.10(c)(3) to provide an exemption from registration to any

    foreign person engaged in the activity of an introducing broker,

    commodity pool operator or commodity trading advisor solely on behalf

    of customers located outside the U.S., provided that all commodity

    interest transactions are submitted for clearing to a registered

    FCM.\3\

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    \2\ 72 FR 63976 (November 14, 2007).

    \3\ Id.

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    B. Part 30 of the Commission's Regulations

    In 1987, the Commission adopted a new Part 30 of its regulations to

    govern the offer and sale to U.S. persons of futures and option

    contracts entered into on or subject to the rules of a foreign board of

    trade.\4\ These regulations were promulgated pursuant to Sections

    2(a)(1)(A), 4(b) and 4c of the Act, which vest the Commission with

    exclusive jurisdiction over the offer and sale, in the U.S., of futures

    and commodity option contracts traded on or subject to the rules of a

    board of trade, exchange or market located outside of the U.S.

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    \4\ 52 FR 28980 (August 5, 1987).

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

    Part 30 sets forth regulations governing foreign futures and

    foreign option transactions executed on behalf of customers located in

    the U.S., referred to in the regulations as foreign futures or foreign

    options customers.\5\ For example, Regulation 30.4 requires any person

    engaged in the activities that are described in the regulation to

    register with the Commission as an FCM, IB, CPO or CTA, respectively,

    unless such person claims relief from registration under Part 30. The

    activities described in Regulation 30.4 essentially are similar to

    those of an FCM, IB, CPO or CTA defined in the Act, except that the

    transactions that the person intermediates are conducted on or subject

    to the rules of a foreign board of trade. The transactions that are

    subject to regulation and require registration under Part 30 include

    the solicitation or acceptance of orders for trading any foreign

    futures or foreign option contract and acceptance of money, securities

    or property to margin, guarantee or secure any foreign futures or

    foreign option trades or contracts.\6\

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    \5\ Regulations 30.1(a), (b) and (c), define the terms ``foreign

    futures,'' ``foreign options,'' and ``foreign futures or foreign

    options customer,'' respectively.

    \6\ See Regulation 30.4.

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    Under Part 30, certain persons located outside the U.S. may obtain

    an exemption from registration and certain other requirements. For

    example, under Regulation 30.10 and Appendix A thereto, the Commission

    may exempt a foreign firm that solicits or accepts orders (and accepts

    money, securities or property to margin the trades made thereto) from

    customers located in the U.S. from compliance with certain

    [[Page 4500]]

    Commission rules, including those rules pertaining to registration,

    provided that a comparable regulatory system exists in the firm's home

    country and that certain safeguards are in place to protect U.S.

    investors, including an information-sharing arrangement between the

    Commission and the firm's home country regulator.\7\ Relief from

    registration pursuant to Regulation 30.10 does not extend to any

    activities related to acting as an intermediary with respect to

    trading, directly or indirectly, on any U.S. exchanges.

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

    \7\ See Appendix A to Part 30; 62 FR 47792 (September 11, 1997).

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

    C. Interpretation of the Rule 30.10 Exemption

    The Division of Clearing and Intermediary Oversight (``Division'')

    has issued a series of no-action letters that permit, in limited

    circumstances, a foreign firm exempt from FCM registration pursuant to

    Regulation 30.10 (``Regulation 30.10 firm''), to intermediate

    transactions executed on U.S. exchanges on behalf of U.S. customers.

    Specifically, the Division confirmed that it would not recommend that

    the Commission commence any enforcement action against certain FCMs and

    affiliated Regulation 30.10 firms if such unregistered affiliates

    introduced certain sophisticated U.S. customers to a registered FCM for

    the purpose of trading on U.S. designated contract markets.\8\ The

    relief in each no-action letter issued by the Division was predicated

    upon the relevant FCM's acknowledgment that it would be jointly and

    severally liable for any violations of the Act or the Commission's

    regulations committed by the foreign affiliate in connection with those

    activities, even if the FCM did not submit the trade for clearing. In

    addition, the no-action relief required that all U.S. customers be

    introduced on a fully-disclosed basis, and that any non-U.S. affiliate

    would not be permitted either to solicit any U.S. customer or handle

    any U.S. customer funds for trading on U.S. markets.

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    \8\ See, e.g., CFTC Letter 07-23, [Current Transfer Binder]

    Comm. Fut. L. Rep. (CCH) ]------ (November 23, 2007).

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

    In granting the above no-action relief, the Division recognized

    that a U.S. institutional customer may achieve greater operational and

    economic efficiencies by eliminating the need to use multiple order

    entry systems to engage in transactions in both U.S. and non-U.S.

    markets. In addition, the Division acknowledged that, by consolidating

    orders into a single execution system, an intermediating FCM may

    mitigate more effectively the increased systemic and liquidity risks

    associated with such activities.

    Given that the no-action relief provided by the Division applies

    only to the recipients of each no-action letter, the Commission

    believes that it may be appropriate to provide relief for all FCMs and

    their affiliates that provide brokerage services to U.S. institutional

    investors in like cirumstances. Like those FCMs addressed by the

    Division's no-action relief, these FCMs also have institutional U.S.

    customers that trade globally throughout the 24-hour trading day, and

    who currently must use multiple order entry systems to execute

    transactions both domestically and abroad. Accordingly, the Commission

    has determined to propose to amend Regulation 3.10(c) to address the

    issue without the need for separate no-action letters, and invites

    public comment on all aspects of the proposed rule.

    II. Proposed Regulations

    The Commission proposes to codify the staff interpretations

    described in Section I.C above. Specifically, the Commission proposes

    to promulgate Regulation 3.10(c)(4) to exempt from registration as an

    IB a firm located outside the U.S. that introduces certain

    sophisticated U.S. customers to a registered FCM for the purpose of

    trading on a DCM or DTEF. The exemption would be limited to those

    foreign firms that are affiliated with an FCM and have obtained

    confirmation of relief pursuant to the terms and conditions of an order

    issued by the Commission pursuant to Regulation 30.10. Any account

    introduced pursuant to this exemption must be introduced on a fully-

    disclosed basis in accordance with Regulation 1.57 and the foreign firm

    would not be permitted to solicit any U.S. customers nor handle any

    U.S. customer funds for trading on U.S. markets. The Commission has

    proposed to limit the exemption in Regulation 3.10(c)(4) to Regulation

    30.10 firms because Regulation 30.10 relief is predicated on the

    existence of a comparable regulatory program in the jurisdiction in

    which the affiliate is located, and the presence of certain safeguards

    to protect U.S. investors, including standards for fitness and an

    information-sharing arrangement between the Commission and the

    authorities in the affiliate's home country.

    The Commission notes that the Division's existing no-action letters

    provide exemptive relief to foreign firms acting on behalf of certain

    ``institutional'' and ``commercial'' entities. In search of a workable

    universal standard, the Commission has proposed to structure the

    exemption so as to limit the offer and sale of U.S. contracts to

    institutional customers, as defined in Regulation 1.3(g). The

    Commission also proposes Regulation 3.10(c)(6) that, for the purposes

    of this regulation, the term ``affiliate'' means any person that: (i)

    Owns 50 percent or more of the FCM; (ii) is owned 50 percent or more by

    the FCM; or (iii) is owned 50 percent or more by a third person that

    also owns 50 percent or more of the FCM.\9\

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    \9\ See, e.g., CFTC Staff Letter 07-06, [Current Transfer

    Binder], Comm. Fut. L. Rep. (CCH) ] ---------- at ----------, n.3

    (May 24, 2007). CFTC Letter 07-06 is one of a series of letters

    issued by the Division of Market Oversight that permits members of a

    particular foreign exchange located in the U.S. to connect directly

    to the foreign exchange's order and trade matching system without

    the exchange having to register as a DCM or DTEF. For the purposes

    of the no-action relief, the term ``members'' includes

    ``affiliates'' as defined consistent with this proposal. The

    Commission notes that, as a condition of the no-action relief,

    members connected directly to the foreign exchange are ultimately

    responsible for the conduct of any affiliate.

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

    Consistent with the terms and conditions of relief established by

    the Division in the no-action process, the Commission also proposes to

    predicate the availability of the exemption upon the relevant FCM's

    acknowledgment, to be filed with NFA pursuant to proposed Regulation

    3.10(c)(4)(iii), that it would be jointly and severally liable for any

    violations of the Act or the Commission's regulations committed by the

    foreign affiliate in connection with those activities, even if the FCM

    ultimately did not submit the trade for clearing. As such, the

    Commission has proposed to limit the exemption to firms affiliated with

    an FCM so that the FCM may maintain the appropriate level of oversight

    to ensure that the foreign affiliate complies with the conditions for

    relief as set forth in the proposed regulation.

    Proposed regulation 3.10(c)(4), in keeping with the no-action

    letters issued to date, prohibits the firm wishing to take advantage of

    the IB registration exemption from soliciting customer orders for

    trading on U.S. exchanges. This registration exemption only is intended

    to be a convenience for institutional customers so that they need not

    use multiple order entry processes to transact related business. For

    example, an institutional customer seeking to establish a position on

    the London Metal Exchange (LME) may desire to hedge that position with

    contracts listed on the New York Mercantile Exchange (NYMEX). Absent

    relief, a Regulation 30.10 firm executing and/or submitting for

    clearing the LME transaction may not participate in the

    [[Page 4501]]

    acceptance of orders for any NYMEX contracts. Pursuant to the proposed

    regulation, a Regulation 30.10 firm may introduce the institutional

    customer to a registered FCM for the purposes of submitting the NYMEX

    transaction for clearing, provided that the institutional customer

    initiates the transaction.

    The exemption from registration also is not intended to be used by

    firms as a promotional vehicle. The proposed regulation would not

    permit a Regulation 30.10 firm to solicit new customers based on its

    ability to access U.S. markets. As stated above, the Commission is

    proposing to create a limited-purpose exemption from IB registration so

    that existing institutional customers may reduce transactional costs

    associated with the use of multiple order entry processes.

    The Commission also notes that the proposed amendments to

    Regulation 3.10(c) are intended to provide a limited-purpose

    registration exemption available only to those foreign firms engaging

    in bona fide global futures brokerage activities on behalf of

    institutional customers located in the U.S. Absent such relief, these

    firms would be required to register with the Commission in the

    appropriate capacity, because the applicable Regulation 30.10 relief

    does not extend to brokerage activities undertaken, directly or

    indirectly, on U.S. exchanges on behalf of any U.S. person. A foreign

    firm not engaged in bona fide global futures brokerage activities on

    behalf of institutional customers, e.g., a firm limiting its brokerage

    activities on behalf of U.S. customers to trading solely on U.S.

    exchanges, may not rely on the proposed exemptions to circumvent the IB

    registration requirement. An FCM submitting the acknowledgment set

    forth in proposed Regulation 3.10(c)(4)(iii) could be held liable for

    any violations of a foreign affiliate in an attempt to circumvent the

    Commission's registration requirements in this regard.

    The Commission further notes that proposed Regulation 3.10(c)(4)

    would replace prior staff letters as the sole source of authorization

    for those unregistered foreign firms that introduce to an FCM U.S.

    customers for the purpose of trading on U.S. markets.\10\ A firm that

    fails to comply with any of the terms or conditions of the applicable

    Regulation 30.10 order, including a failure to comply with any element

    of the regulatory program on which relief was predicated, would make

    the firm ineligible for relief set forth in proposed Regulation

    3.10(c)(4).

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

    \10\ The following letters for no-action relief will be

    superceded if the proposed rules are adopted: CFTC Letters 03-28,

    04-09, 04-14, 05-06, 07-05, 07-08, 07-16, 07-17, 07-20 and 07-23.

    The Commission seeks comments from any party adversely affected by

    the determination to rescind these CFTC Letters.

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

    In each of the existing no-action letters on this subject cited in

    the footnote, the Division considered the size of the FCM and its

    relationship with its particular non-U.S. affiliate prior to

    determining that relief would not be contrary to the public interest.

    More specifically, the Division determined that the financial strength

    and organizational structure of each FCM provided a reasonable basis

    upon which to rely that it could honor the acknowledgement of joint and

    several liability. Accordingly, the Commission solicits comments as to

    whether it would be appropriate to establish minimum capital or other

    standards for the affiliated FCM as a condition for exemptive

    relief.\11\

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    \11\ Compare Regulation 30.12, 17 CFR 30.12 (Direct Foreign

    Order Transmittal). Pursuant to Regulation 30.12(b)(1)(i), an FCM

    must possess, for example, $20,000,000 in adjusted net capital in

    order for one of its ``authorized customers'' to engage in direct

    foreign order transmittal with an unregistered foreign futures and

    options broker for the purpose of trading foreign futures or options

    through the FCM's customer omnibus account.

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

    The Commission also solicits comment as to whether the proposed

    limited-purpose registration exemption should be extended to otherwise

    qualified foreign persons that advise institutional customers for the

    purposes of trading on U.S. markets. This relief would be available,

    for example, to the foreign affiliate of an FCM that provides trading

    advice tailored to the particular circumstances of U.S. customers that

    meet the institutional customer standards regarding the trading of both

    domestic and foreign futures as part of an overall global strategy.

    The Commission also is proposing to revoke Regulation 30.8.

    Regulation 30.8 requires each FCM to provide NFA with a quarterly

    report containing data for the total volume of foreign futures and

    options contracts effected on foreign boards of trade. From its

    experience, the Commission recognizes that FCMs are engaging in both

    domestic and foreign futures and options transactions on behalf of

    customers located in the U.S., and therefore are subject to other

    extensive reporting and recordkeeping requirements set forth in Part 1

    of its regulations. As such, the Commission believes that the reporting

    requirement set forth in Regulation 30.8 is overly burdensome and no

    longer necessary. The Commission solicits comments as to whether

    remaining reporting requirements are sufficient for FCMs engaged in

    foreign futures and options transactions on behalf of customers located

    in the U.S.

    III. Related Matters

    A. 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.\12\ 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.\13\ The

    Commission notes that the foreign persons affected by the proposed

    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. Therefore, the Acting Chairman, on

    behalf of the Commission, hereby certifies, pursuant to 5 U.S.C.

    605(b), that these proposed regulations will not have a significant

    economic impact on a substantial number of small entities. Nonetheless,

    the Commission specifically requests comment on the impact these

    proposed rules may have on small entities.

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

    \12\ 47 FR 18618-18621 (April 30, 1982).

    \13\ 47 FR 18619-18620.

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

    B. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (``PRA'') (44 U.S.C. 3501 et

    seq. (Supp. I 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 the proposed rule discussed herein has no burden, the group

    of rules (3038-0023, Rules, Regulations and Forms for Domestic and

    Foreign Futures and Options Related to Registration with the

    Commission) of which it is a part has the following burden:

    Average Burden Hours per Response: 18.11.

    Number of Respondents: 76,750.

    Frequency of Response: Annually and on occasion.

    The Office of Management and Budget (``OMB'') approved the

    collection of information associated with this group of rules on August

    17, 2004. Copies of the OMB-approved information collection submission

    are available from

    [[Page 4502]]

    the CFTC Clearance Officer, 1155 21st Street, NW., Washington, DC

    20581, (202) 418-5160.

    C. Costs and Benefits of the Proposed Rules

    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 proposed regulations outweigh their costs.

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

    and benefits'' of the subject regulations.

    Section 15(a) further specifies that the costs and benefits of the

    proposed regulations shall be evaluated in light of five broad areas of

    market and public concern: (1) Protection of market participants and

    the public; (2) efficiency, competitiveness, and financial integrity of

    futures markets; (3) price discovery; (4) sound risk management

    practices; and (5) other public interest considerations. The Commission

    may, in its discretion, give greater weight to any one of the five

    enumerated areas of concern and may, in its discretion, determine that,

    notwithstanding its costs, a particular regulation is necessary or

    appropriate to protect the public interest or to effectuate any of the

    provisions or to accomplish any of the purposes of the Act.

    The proposed regulations should foster the protection of market

    participants and the public by providing greater legal certainty to the

    commodity interest activities of persons located outside the U.S. As

    the activity set forth in the proposed regulations presently is

    permitted under staff interpretation and no-action, the proposed

    regulations should have no material impact from the standpoint of

    imposing costs or creating benefits, on efficiency, competitiveness and

    financial integrity of financial markets, price discovery, sound risk

    management practices, or any other public interest considerations.

    List of Subjects

    17 CFR Part 3

    Definitions, Foreign futures, Consumer protection, Foreign options,

    Registration requirements.

    17 CFR Part 30

    Definitions, Foreign futures, Consumer protection, Foreign options,

    Registration requirements.

    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 proposes to amend Chapter I of Title 17

    of the Code of Federal Regulations as follows:

    PART 3--REGISTRATION

    1. 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.

    2. Section 3.10 is amended by adding paragraph (c)(4) 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.

    * * * * *

    (4) A person located outside the United States, its territories or

    possessions that is exempt from registration as a futures commission

    merchant in accordance with Sec. 30.10 of this chapter is not required

    to register as an introducing broker in accordance with section 4d of

    the Act if:

    (i) Such a person is affiliated with a futures commission merchant

    registered in accordance with section 4d of the Act;

    (ii) Such a person introduces, on a fully-disclosed basis in

    accordance with Sec. 1.57 of this chapter, any institutional customer,

    as defined in Sec. 1.3(g) of this chapter, to a registered futures

    commission merchant for the purpose of trading on a designated contract

    market or derivatives execution facility;

    (iii) Prior to a person located outside the United States, its

    territories or possessions, that is exempt from registration as a

    futures commission merchant pursuant to Sec. 30.10 of this chapter,

    engaging in the introducing activities described in this paragraph, the

    affiliated futures commission merchant has filed with the National

    Futures Association (ATTN: Vice President, Compliance) an

    acknowledgement that it will be jointly and severally liable for any

    violations of the Act or the Commission's regulations committed by such

    person in connection with those introducing activities, whether or not

    the affiliated futures commission merchant submits for clearing any

    trades resulting from those introducing activities; and

    (iv) Such person does not solicit any person located in the United

    States, its territories or possessions for trading on a designated

    contract market or derivatives transaction execution facility, nor does

    such person handle the customer funds of any person located in the

    United States, its territories or possessions for the purpose of

    trading on any designated contract market or derivatives transaction

    execution facility.

    (v) For the purposes of this paragraph, a person shall be

    affiliated with a futures commission merchant if such a person:

    (A) Owns 50 percent or more of the futures commission merchant;

    (B) Is owned 50 percent or more by the futures commission merchant;

    or

    (C) Is owned 50 percent or more by a third person that also owns 50

    percent or more of the futures commission merchant.

    * * * * *

    PART 30--FOREIGN FUTURES AND FOREIGN OPTIONS TRANSACTIONS

    3. The authority citation for part 30 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 4, 6, 6c, and 12a, unless otherwise

    noted.

    Sec. 30.8 [Removed and reserved]

    4. Section 30.8 is removed and reserved:

    Dated: January 15, 2008.

    By the Commission.

    David Stawick,

    Secretary of the Commission.

    [FR Doc. E8-979 Filed 1-24-08; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: January 25, 2008



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