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e9-25183

  • FR Doc E9-25183[Federal Register: October 20, 2009 (Volume 74, Number 201)]

    [Notices]

    [Page 53724-53728]

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

    [DOCID:fr20oc09-41]

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    COMMODITY FUTURES TRADING COMMISSION

    Notice of Intent, Pursuant to the Authority in Section 2(h)(7) of

    the Commodity Exchange Act and Commission Rule 36.3(c)(3), To Undertake

    a Determination Whether the (1) Phys, BS, LD1 (US/MM), AB-NIT Contract,

    et al., Offered for Trading on the Natural Gas Exchange, Inc., Perform

    Significant Price Discovery Functions

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice of action and request for comment.

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    SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or

    ``Commission'') is undertaking a review to determine whether the (1)

    Phys,\1\ BS,\2\

    [[Page 53725]]

    LD1 \3\ (US/MM), AB-NIT \4\ (``Alberta Basis''); (2) Phys, BS, LD1 (US/

    MM), Union-Dawn \5\ (``Union-Dawn Basis''); (3) Phys, FP,\6\ (CA/

    GJ),\7\ AB-NIT (``Alberta Fixed-Price''); (4) Phys, FP, (US/MM), Union-

    Dawn (``Union-Dawn Fixed-Price''); and (5) Phys, ID,\8\ 7a \9\ (CA/GJ),

    AB-NIT (``Alberta Index'') contracts, offered for trading on the

    Natural Gas Exchange, Inc. (``NGX''), an exempt commercial market

    (``ECM'') under Sections 2(h)(3)-(5) of the Commodity Exchange Act

    (``CEA'' or the ``Act''), perform significant price discovery

    functions. Authority for this action is found in section 2(h)(7) of the

    CEA and Commission rule 36.3(c) promulgated thereunder. In connection

    with this evaluation, the Commission invites comment from interested

    parties.

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    \1\ The acronym ``Phys'' indicates physical delivery of natural

    gas.

    \2\ The acronym ``BS'' indicates that the contract is a cash-

    settled basis swap.

    \3\ The acronym ``LD1'' indicates the final settlement price of

    the New York Mercantile Exchange (NYMEX) physically-delivered Henry

    Hub Natural Gas futures contract for the corresponding contract

    month, which is expressed in US dollars and cents per million

    British thermal units (mmBtu).

    \4\ The acronym ``AB-NIT'' refers to the Alberta, Canada, and

    Nova Inventory Transfer hub.

    \5\ ``Union-Dawn'' refers to the Union Gas, Ltd.'s, Dawn hub,

    which is located in Canada across the U.S. border from Detroit,

    Michigan.

    \6\ The acronym ``FP'' refers to fixed-price contracts.

    \7\ The abbreviation CA/GJ refers the Canadian dollars per

    gigajoule, which is a unit of measure for energy. One GJ is equal to

    0.9478 mmBtu.

    \8\ The acronym ``ID'' refers to index contracts.

    \9\ The term ``7a'' refers to a price index that is computed as

    a volume-weighted average of transactions that occur on the NGX

    trading platform during a particular calendar month. Such

    transactions specify the physical delivery of natural gas at the AB-

    NIT hub in the following calendar month.

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    DATES: Comments must be received on or before November 4, 2009.

    ADDRESSES: Comments may be submitted by any of the following methods:

    Follow the instructions for submitting comments. Federal

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

    E-mail: secretary@cftc.gov. Include Phys, BS, LD1 (US/MM),

    AB-NIT (``Alberta Basis'') Contract; Phys, BS, LD1 (US/MM), Union-Dawn

    (``Union-Dawn Basis'') Contract; Phys, FP, (CA/GJ), AB-NIT (``Alberta

    Fixed-Price'') Contract; Phys, FP, (US/MM), Union-Dawn (``Union-Dawn

    Fixed-Price'') Contract; and/or Phys, ID, 7a (CA/GJ), AB-NIT (``Alberta

    Index'') Contract in the subject line of the message, depending on the

    subject contract(s) to which the comments apply.

    Fax: (202) 418-5521

    Mail: Send to David A. Stawick, Secretary, Commodity

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

    NW., Washington, DC 20581

    Courier: Same as mail above.

    All comments received will be posted without change to http://

    www.CFTC.gov/.

    FOR FURTHER INFORMATION CONTACT: Gregory K. Price, Industry Economist,

    Division of Market Oversight, Commodity Futures Trading Commission,

    Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581.

    Telephone: (202) 418-5515. E-mail: gprice@cftc.gov; or Susan Nathan,

    Senior Special Counsel, Division of Market Oversight, same address.

    Telephone: (202) 418-5133. E-mail: snathan@cftc.gov.

    SUPPLEMENTARY INFORMATION:

    I. Introduction

    On March 16, 2009, the CFTC promulgated final rules implementing

    provisions of the CFTC Reauthorization Act of 2008 (``Reauthorization

    Act'') \10\ which subjects ECMs with significant price discovery

    contracts (``SPDCs'') to self-regulatory and reporting requirements, as

    well as certain Commission oversight authorities, with respect to those

    contracts. Among other things, these rules and rule amendments revise

    the information-submission requirements applicable to ECMs, establish

    procedures and standards by which the Commission will determine whether

    an ECM contract performs a significant price discovery function, and

    provide guidance with respect to compliance with nine statutory core

    principles applicable to ECMs with SPDCs. These rules became effective

    on April 22, 2009.

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    \10\ 74 FR 12178 (Mar. 23, 2009); these rules became effective

    on April 22, 2009.

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    In determining whether an ECM's contract is or is not an SPDC, the

    Commission will evaluate the contract's material liquidity, price

    linkage to other contracts, potential for arbitrage with other

    contracts traded on designated contract markets or derivatives

    transaction execution facilities, use of the ECM contract's prices to

    execute or settle other transactions, and other factors.

    In order to facilitate the Commission's identification of possible

    SPDCs, Commission rule 36.3(c)(2) requires that an ECM operating in

    reliance on section 2(h)(3) promptly notify the Commission and provide

    supporting information or data concerning any contract: (i) That

    averaged five trades per day or more over the most recent calendar

    quarter; and (ii) (A) for which the ECM sells price information

    regarding the contract to market participants or industry publications;

    or (B) whose daily closing or settlement prices on 95 percent or more

    of the days in the most recent quarter were within 2.5 percent of the

    contemporaneously determined closing, settlement, or other daily price

    of another agreement.

    II. Determination of an SPDC

    A. The SPDC Determination Process

    Commission rule 36.3(c)(3) establishes the procedures by which the

    Commission makes and announces its determination on whether a specific

    ECM contract serves a significant price discovery function. Under those

    procedures, the Commission will publish a notice in the Federal

    Register that it intends to undertake a determination as to whether the

    specified agreement, contract, or transaction performs a significant

    price discovery function and to receive written data, views, and

    arguments relevant to its determination from the ECM and other

    interested persons.\11\ After prompt consideration of all relevant

    information,\12\ the Commission will, within a reasonable period of

    time after the close of the comment period, issue an order explaining

    its determination. Following the issuance of an order by the Commission

    that the ECM executes or trades an agreement, contract, or transaction

    that performs a significant price discovery function, the ECM must

    demonstrate, with respect to that agreement, contract, or transaction,

    compliance with the core principles under section 2(h)(7)(C) of the CEA

    \13\ and the applicable provisions of Part 36. If the Commission's

    order represents the first time it has determined that one of the ECM's

    contracts performs a significant price discovery function, the ECM must

    submit a written demonstration of its compliance with the core

    principles within 90 calendar days of the date of the Commission's

    order. For each subsequent determination by the Commission that the ECM

    has an additional SPDC, the

    [[Page 53726]]

    ECM must submit a written demonstration of its compliance with the core

    principles within 30 calendar days of the Commission's order.

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    \11\ The Commission may commence this process on its own

    initiative or on the basis of information provided to it by an ECM

    pursuant to the notification provisions of Commission rule

    36.3(c)(2).

    \12\ Where appropriate, the Commission may choose to interview

    market participants regarding their impressions of a particular

    contract. Further, while they may not provide direct evidentiary

    support with respect to a particular contract, the Commission may

    rely for background and context on resources such as its October

    2007 Report on the Oversight of Trading on Regulated Futures

    Exchanges and Exempt Commercial Markets (``ECM Study''). http://

    www.cftc.gov/stellent/groups/public/@newsroom/documents/file/pr5403-

    07_ecmreport.pdf.

    \13\ 7 U.S.C. 2(h)(7)(C).

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    B. Phys, BS, LD1 (US/MM), AB-NIT Contract

    The Alberta Basis contract is a monthly contract that calls for

    physical delivery of natural gas based on the final settlement price

    for NYMEX's Henry Hub physically-delivered natural gas futures contract

    for the specified calendar month, plus or minus the price differential

    (basis) between the Alberta delivery point \14\ and the Henry Hub.

    There is no standard size for the Alberta Basis contract, although a

    minimum volume of 100 mmBtu is required in increments of 100 units per

    day. The Alberta Basis contract is listed for 60 consecutive calendar

    months.

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    \14\ NOVA Gas Transmission, Ltd., owns the natural gas

    transmission infrastructure known as the Alberta System. The Alberta

    System is a network comprising 14,100 miles of pipeline that gathers

    natural gas for use both in Alberta and for delivery to provincial

    border points for export to North American markets. The Alberta

    System is one of the largest natural gas transmission systems in

    North America and gathers 66 percent of natural gas produced in

    Western Canada.

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    Based upon a required quarterly notification filed on August 25,

    2009 (mandatory under Rule 36.3(c)(2)), the NGX reported that, with

    respect to its Alberta Basis contract, the average number of trades

    each day for the nearby contract month was 23.2 in the second quarter

    of 2009. During the same period, the Alberta Basis nearby contract had

    an average daily trading volume of 5,869,800 million British thermal

    units (mmBtu).\15\ Moreover, the net open interest as of June 30, 2009,

    for the nearby contract month was 150,213,600 mmBtu. For delivery two

    months out, the open interest was 10,112,200 mmBtu.

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    \15\ For comparative purposes, the size of the NYMEX's

    physically-delivered Henry Hub natural gas futures contract is

    10,000 mmBtu.

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

    It appears that the Alberta Basis contract may satisfy the material

    liquidity, price linkage, and material price reference factors for SPDC

    determination. With respect to material liquidity, trading in the

    Alberta Basis contract was nearly 6,000,000 mmBtu on a daily basis,

    with more than 20 separate transactions each day. In addition, the open

    interest in the subject contract was substantial. In regard to price

    linkage, the final settlement of the Alberta Basis contract is based,

    in part, on the final settlement price of the NYMEX's physically-

    delivered natural gas futures contract, where the NYMEX is registered

    with the Commission as a designated contract market (``DCM'').

    With respect to material price reference, the NGX forged an

    alliance with the IntercontinentalExchange, Inc., (ICE) to use the

    ICE's matching engine to complete transactions in physical gas

    contracts traded on NGX. In return, the NGX agreed to provide the

    clearing services for such transactions. As part of the agreement, NGX

    provides the ICE with transaction data, which are then made available

    to market participants on a paid basis. The ICE offers the NGX data in

    several packages, which vary in terms of the amount of available

    historical data. For example, the ICE offers the ``OTC Gas End of Day''

    data packages with access to all historical data, or the option of

    accessing 12, 24, 36, and 48 months of past data only.

    C. Phys, BS, LD1 (US/MM), Union-Dawn Contract

    The Union-Dawn Basis contract is a monthly contract that calls for

    physical delivery of natural gas based on the final settlement price

    for NYMEX's Henry Hub physically-delivered natural gas futures contract

    for the specified calendar month, plus or minus the price differential

    (basis) between the Dawn delivery point \16\ and the Henry Hub. There

    is no standard size for the Union-Dawn Basis contract, although a

    minimum volume of 100 mmBtu is required in increments of 100 units per

    day. The Union-Dawn Basis contract is listed for 60 consecutive

    calendar months.

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    \16\ Union Gas, Ltd., is a major Canadian natural gas storage,

    transmission, and distribution company based in Ontario, Canada.

    Union Gas offers premium storage and transportation services to

    customers at the Dawn hub, which the largest underground storage

    facility in Canada and one of the largest in North America. The Dawn

    hub offers customers an important link for natural gas moving from

    Western Canadian and U.S. supply basins to markets in central Canada

    and the northeast United States.

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

    Based upon a required quarterly notification filed on August 25,

    2009 (mandatory under Rule 36.3(c)(2)), the NGX reported that, with

    respect to its Union-Dawn Basis contract, the average number of trades

    each day for the nearby contract month was 8.3 in the second quarter of

    2009. During the same period, the Union-Dawn Basis nearby contract had

    an average daily trading volume of 1,332,400 mmBtu. Moreover, the net

    open interest as of June 30, 2009, for the nearby contract month was

    28,203,800 mmBtu. For delivery two months out, the open interest was

    12,908,400 mmBtu.

    It appears that the Union-Dawn Basis contract may satisfy the

    material liquidity, price linkage, and material price reference factors

    for SPDC determination. With respect to material liquidity, trading in

    the Union-Dawn Basis contract was more than 1,000,000 mmBtu on a daily

    basis, with more than eight separate transactions each day. In

    addition, the open interest in the subject contract was substantial. In

    regard to price linkage, the final settlement of the Union-Dawn Basis

    contract is based, in part, on the final settlement price of the

    NYMEX's physically-delivered natural gas futures contract, where the

    NYMEX is registered with the Commission as a designated contract market

    (``DCM'').

    With respect to material price reference, the NGX forged an

    alliance with the IntercontinentalExchange, Inc., (ICE) to use the

    ICE's matching engine to complete transactions in physical gas

    contracts traded on NGX. In return, the NGX agreed to provide the

    clearing services for such transactions. As part of the agreement, NGX

    provides the ICE with transaction data, which are then made available

    to market participants on a paid basis. The ICE offers the NGX data in

    several packages, which vary in terms of the amount of available

    historical data. For example, the ICE offers the ``OTC Gas End of Day''

    data packages with access to all historical data, or the option of

    accessing 12, 24, 36, and 48 months of past data only.

    D. Phys, FP, (CA/GJ), AB-NIT Contract

    The Alberta Fixed-Price contract calls for physical delivery of

    natural gas over a number of different time periods. This contract

    allows delivery of natural gas during the following day, Friday plus

    two or three days, Saturday plus three or four days, Sunday plus two

    days, the remainder of the month, throughout the nearby calendar month,

    and during a specific future calendar month. Each delivery period is

    considered to be a separate contract, and market participants value

    each delivery period separately. However, overlapping delivery days are

    considered fungible, and, thus, may be offset by traders. There is no

    standard size for the Alberta Fixed-Priced contract, although a minimum

    volume of 94.78 mmBtu is required in increments of 100 units per day.

    The NGX lists the Alberta Fixed-Price contract for 60 calendar months.

    Based upon a required quarterly notification filed on August 25,

    2009 (mandatory under Rule 36.3(c)(2)), the NGX reported that, with

    respect to its Alberta Fixed-Price contract, the average number of

    trades daily for each delivery period was greater than five in the

    second quarter of 2009. In this regard, the average number of trades

    each day was 122.1, 36.0, 7.0, 30.1, 7.4, 68.6, and 12.8 trades for the

    following delivery periods--following day, Friday plus two days, Friday

    plus three days, Saturday

    [[Page 53727]]

    plus three days, Saturday plus four days, Sunday plus two days,

    remainder of the month, nearby calendar month, and any single future

    calendar month, respectively. During the same period, the Alberta

    Fixed-Price contract had an average daily trading volume of 1,209,505

    mmBtu; 821,565 mmBtu; 223,874 mmBtu; 754,175 mmBtu; 672,568 mmBtu;

    6,634,030 mmBtu; and 1,233,958 mmBtu for the following delivery

    periods--next day, Friday plus two days, Friday plus three days,

    Saturday plus three days, Saturday plus four days, Sunday plus two

    days, remainder of the month, nearby calendar month, and any single

    future calendar month, respectively. Moreover, the net open interest as

    of June 30, 2009, was 96,003,450 mmBtu for next-month delivery. For

    delivery two months out, the open interest was 54,456,997 mmBtu.\17\

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

    \17\ The open interest for other delivery periods was

    significantly smaller than for the nearby and second-nearby

    contracts.

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

    It appears that the Alberta Fixed-Price contract may satisfy the

    material liquidity and material price reference factors for SPDC

    determination. With respect to material liquidity, trading in the

    nearby month of the Alberta Fixed-Price contract was close to 7,000,000

    mmBtu on a daily basis, with nearly 70 separate transactions each day.

    In addition, the open interest in the subject contract was substantial.

    With respect to material price reference, the NGX forged an

    alliance with the IntercontinentalExchange, Inc., (ICE) to use the

    ICE's matching engine to complete transactions in physical gas

    contracts traded on NGX. In return, the NGX agreed to provide the

    clearing services for such transactions. As part of the agreement, NGX

    provides the ICE with transaction data, which are then made available

    to market participants on a paid basis. The ICE offers the NGX data in

    several packages, which vary in terms of the amount of available

    historical data. For example, the ICE offers the ``OTC Gas End of Day''

    data packages with access to all historical data, or the option of

    accessing 12, 24, 36, and 48 months of past data only.

    E. Phys, FP, (US/MM), Union-Dawn Contract

    The Union-Dawn Fixed-Price contract calls for physical delivery of

    natural gas over two different time periods: the following day and

    Saturday plus three days. Each delivery period is considered to be a

    separate contract, and the market participants value each delivery

    period separately. However, overlapping delivery days are considered

    fungible, and, thus, may be offset by traders. There is no standard

    size for the Union-Dawn Fixed-Priced contract, although a minimum

    volume of 100 mmBtu required in increments of 100 units per day. The

    NGX lists the Union-Dawn Fixed-Price contract for 60 calendar months.

    Based upon a required quarterly notification filed on August 25,

    2009 (mandatory under Rule 36.3(c)(2)), the NGX reported that, with

    respect to its Union-Dawn Fixed-Price contract, the average number of

    trades each day was 114.1 trades and 23.9 trades for next-day delivery

    and delivery Saturday plus the next three days, respectively. During

    the same period, the Union-Dawn Fixed-Price contract had an average

    daily trading volume of 812,800 mmBtu and 458,000 mmBtu for the

    delivery periods next day and Saturday plus three days, respectively.

    Moreover, the net open interest as of June 30, 2009, was 2,241,600

    mmBtu for next-day delivery.

    It appears that the Union-Dawn Fixed-Price contract may satisfy the

    material liquidity and material price reference factors for SPDC

    determination. With respect to material liquidity, trading activity in

    the next-day Union-Dawn Fixed-Price contract was over 800,000 mmBtu on

    a daily basis, with over 100 separate transactions each day. In

    addition, the open interest in the subject contract was substantial.

    With respect to material price reference, the NGX forged an

    alliance with the IntercontinentalExchange, Inc., (ICE) to use the

    ICE's matching engine to complete transactions in physical gas

    contracts traded on NGX. In return, the NGX agreed to provide the

    clearing services for such transactions. As part of the agreement, NGX

    provides the ICE with transaction data, which are then made available

    to market participants on a paid basis. The ICE offers the NGX data in

    several packages, which vary in terms of the amount of available

    historical data. For example, the ICE offers the ``OTC Gas End of Day''

    data packages with access to all historical data, or the option of

    accessing 12, 24, 36, and 48 months of past data only.

    F. Phys, ID, 7a (CA/GJ), AB-NIT Contract

    The Alberta Index contract calls for physical delivery of natural

    gas during the specified calendar month. When trading this contract,

    market participants price the difference between the anticipated value

    of natural gas at the time of delivery and the average of actual trades

    on the NGX system. The average of transactions on the NGX system is

    reported as a volume-weighted average price index in the first

    publication of the delivery month of Canadian Enerdata, Ltd.'s Canadian

    Gas Price Reporter. At the time of delivery, the negotiated price

    premium or discount is added or subtracted to the published index

    price. There is no standard size for the Alberta Index contract,

    although a minimum volume of 94.78 mmBtu is required in increments of

    100 units per day. The NGX lists the Alberta Index contract for 60

    calendar months.

    Based upon a required quarterly notification filed on August 25,

    2009 (mandatory under Rule 36.3(c)(2)), the NGX reported that, with

    respect to its Alberta Index contract, the average number of trades

    each day was 10.9. During the same period, the Alberta Index contract

    had an average daily trading volume of 2,438,627 mmBtu. Moreover, the

    net open interest as of June 30, 2009, was 6,287,794 mmBtu for delivery

    in the following month.

    It appears that the Alberta Index contract may satisfy the material

    liquidity and material price reference factors for SPDC determination.

    With respect to material liquidity, trading in the nearby month of the

    Alberta Index contract was over 2,000,000 mmBtu on a daily basis, with

    over 10 separate transactions each day. In addition, the open interest

    in the subject contract was substantial.

    With respect to material price reference, the NGX forged an

    alliance with the IntercontinentalExchange, Inc., (ICE) to use the

    ICE's matching engine to complete transactions in physical gas

    contracts traded on NGX. In return, the NGX agreed to provide the

    clearing services for such transactions. As part of the agreement, NGX

    provides the ICE with transaction data, which are then made available

    to market participants on a paid basis. The ICE offers the NGX data in

    several packages, which vary in terms of the amount of available

    historical data. For example, the ICE offers the ``OTC Gas End of Day''

    data packages with access to all historical data, or the option of

    accessing 12, 24, 36, and 48 months of past data only.

    III. Request for Comment

    In evaluating whether an ECM's agreement, contract, or transaction

    performs a significant price discovery function, section 2(h)(7) of the

    CEA directs the Commission to consider, as appropriate, four specific

    criteria: price linkage, arbitrage, material price reference, and

    material liquidity. As it explained in Appendix A to the Part 36

    rules,\18\ the Commission, in making

    [[Page 53728]]

    SPDC determinations, will apply and weigh each factor, as appropriate,

    to the specific contract and circumstances under consideration.

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

    \18\ 17 CFR Part 36, Appendix A.

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

    As part of its evaluation, the Commission will consider the written

    data, views, and arguments from any ECM that lists the potential SPDC

    and from any other interested parties. Accordingly, the Commission

    requests comment on whether the subject contracts perform significant

    price discovery functions. Commenters' attention is directed

    particularly to Appendix A of the Commission's Part 36 rules for a

    detailed discussion of the factors relevant to a SPDC determination.

    The Commission notes that comments which analyze the contracts in terms

    of these factors will be especially helpful to the determination

    process. In order to determine the relevance of comments received, the

    Commission requests that commenters explain in what capacity are they

    knowledgeable about one or several of the subject contracts. Moreover,

    because five contracts are included in this notice, it is important

    that commenters identify to which contract(s) their comments apply.

    IV. Related Matters

    A. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (``PRA'') \19\ 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. Certain provisions of final

    Commission rule 36.3 impose new regulatory and reporting requirements

    on ECMs, resulting in information collection requirements within the

    meaning of the PRA; OMB previously has approved and assigned OMB

    control number 3038-0060 to this collection of information.

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

    \19\ 44 U.S.C. 3507(d).

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

    B. Cost-Benefit Analysis

    Section 15(a) of the CEA \20\ requires the Commission to consider

    the costs and benefits of its actions before issuing an order under the

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

    quantify the costs and benefits of such an order or to determine

    whether the benefits of such an order outweigh its costs; rather, it

    requires that the Commission ``consider'' the costs and benefits of its

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

    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.

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

    \20\ 7 U.S.C.19(a).

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

    The bulk of the costs imposed by the requirements of Commission

    Rule 36.3 relate to significant and increased information-submission

    and reporting requirements adopted in response to the Reauthorization

    Act's directive that the Commission take an active role in determining

    whether contracts listed by ECMs qualify as SPDCs. The enhanced

    requirements for ECMs will permit the Commission to acquire the

    information it needs to discharge its newly-mandated responsibilities

    and to ensure that ECMs with SPDCs are identified as entities with the

    elevated status of registered entity under the CEA and are in

    compliance with the statutory terms of the core principles of section

    2(h)(7)(C) of the Act. The primary benefit to the public is to enable

    the Commission to discharge its statutory obligation to monitor for the

    presence of SPDCs and extend its oversight to the trading of SPDCs.

    Issued in Washington, DC, on October 14, 2009 by the Commission.

    David A. Stawick,

    Secretary of the Commission.

    [FR Doc. E9-25183 Filed 10-19-09; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: October 20, 2009



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