<DOC>
[May 27, 2003 (Volume 68, Number 101)]
[Unified Agenda]
From the Federal Register Online via GPO Access [frwais.access.gpo.gov]

[Page 31280-31284]


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Part XLVIII





Commodity Futures Trading Commission





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Semiannual Regulatory Agenda

[[Page 31280]]

COMMODITY FUTURES TRADING COMMISSION (CFTC)

_______________________________________________________________________

COMMODITY FUTURES TRADING COMMISSION

17 CFR Ch. I

Regulatory Flexibility Agenda

AGENCY: Commodity Futures Trading Commission.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Commodity Futures Trading Commission, in accordance with
the requirements of the Regulatory Flexibility Act, is publishing a
semiannual agenda of significant rules that the Commission expects to
propose or promulgate over the next year. The Commission welcomes
comments from small entities and others on the agenda.

FOR FURTHER INFORMATION CONTACT: Eileen A. Donovan, Assistant Secretary
for FOIA Matters, Commodity Futures Trading Commission, 1155 21st
Street NW., Washington, DC 20581, (202) 418-5096, edonovan@cftc.gov.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act, 5 U.S.C.
601, et seq. (RFA), sets forth a number of requirements for agency
rulemaking. Among other things, the RFA requires that:

    Semiannually, each agency shall publish in the Federal Register
a regulatory flexibility agenda that shall contain:

    (1) A brief description of the subject area of any rule that
the agency expects to propose or promulgate, which is likely to
have a significant economic impact on a substantial number of small
entities;

    (2) A summary of the nature of any such rule under
consideration for each subject area listed in the agenda pursuant
to paragraph (1), the objectives and legal basis for the issuance
of the rule, and an approximate schedule for completing action on
any rule for which the agency has issued a general notice of
proposed rulemaking; and

    (3) The name and telephone number of an agency official
knowledgeable about the items listed in paragraph (1). 5 U.S.C.
602(a).

     The Commission has prepared an agenda of significant rules
that it presently expects may be considered during the course of
the next year. These rules may have some impact on small
entities.\1\ In this regard, section 602(d) of the RFA, 5 U.S.C.
602(d), provides: ``Nothing in [section 602] precludes an agency
from considering or acting on any matter not included in a
regulatory flexibility agenda or requires an agency to consider or
act on any matter listed in such agenda.''

     The Commission's spring 2003 regulatory flexibility agenda is
set forth below.

Issued in Washington, DC on March 11, 2003, by the Commission.

 Jean A. Webb,

Secretary of the Commission.


\1\ The Commission published its definition of small entity to be used
in connection with rulemaking proceedings on April 30, 1982 (47 FR
18618). Pursuant to that definition, the Commission is not required to
list many of the agenda items contained in this regulatory flexibility
agenda. See 5 U.S.C. 602(a)(1). Moreover, the Commission has previously
certified, pursuant to section 605 of the RFA, 5 U.S.C. 605, that
certain items contained in this agenda will not have a significant
economic impact on a substantial number of small entities. Accordingly,
the listing of a rule in this regulatory flexibility agenda should not,
in any event, be taken as a determination that a rule, when proposed or
promulgated, will in fact require a regulatory flexibility analysis.
However, the Commission hopes that the publication of an agenda that
includes significant rules, regardless of their potential impact on
small entities, may serve the public generally by providing an early
and meaningful opportunity to participate in and comment on the
formulation of new or revised regulations. In addition to publishing
the regulatory flexibility agenda, the Commission also makes available
to the public, on a monthly basis, a calendar and, on a weekly basis,
posts an advisory on its website (http://www.cftc.gov) that lists rules
that the Commission is considering or will consider in the near future.

                            Commodity Futures Trading Commission--Proposed Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3800        Minimum Financial Requirements for Futures Commission Merchants and Introducing          3038-AB64
            Brokers.............................................................................
3801        Regulation of Hybrid Instruments....................................................     3038-AB69
3802        Use of Broker-Dealers, Depository Institutions, and Farm Crediting System                3038-AB70
            Institutions as Intermediaries on Derivatives Transaction Execution Facilities......
3803        Offering and Selling Security Futures Products Traded on Foreign Boards of Trade to      3038-AB75
            United States Persons; Requirements for Foreign Stock Index Contracts To Qualify as
            Non-Narrow-Based Indices............................................................
3804        Treatment of Foreign Futures or Foreign Options Secured Amount......................     3038-AB96
3805        Exclusion for Certain Otherwise Regulated Persons From Definition of Commodity Pool      3038-AB97
            Operator; Exemption From Certain Part 4 Requirements for Commodity Pool Operators
            and Commodity Trading Advisors......................................................
----------------------------------------------------------------------------------------------------------------


                             Commodity Futures Trading Commission--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3806        Performance Disclosures for Commodity Trading Advisors and Commodity Pool Operators.     3038-AB39
3807        Registration Exemptions Pertaining to the Offer and Sale of Foreign Futures and          3038-AB45
            Foreign Options Contracts to Customers Located in the United States.................
3808        Customer Identification Program for Futures Commission Merchants and Introducing         3038-AB90
            Brokers.............................................................................
3809        Allocation of Bunched Orders........................................................     3038-AB93
----------------------------------------------------------------------------------------------------------------


[[Page 31281]]


                             Commodity Futures Trading Commission--Completed Actions
----------------------------------------------------------------------------------------------------------------
                                                                                                    Regulation
 Sequence                                          Title                                          Identification
  Number                                                                                              Number
----------------------------------------------------------------------------------------------------------------
3810        Denomination of Customer Funds and Location of Depositories.........................     3038-AB31
3811        Reporting Levels for Large Trader Reports; TRAKRS...................................     3038-AB91
----------------------------------------------------------------------------------------------------------------


                                               Commodity Futures Trading Commission--Discontinued Entries
--------------------------------------------------------------------------------------------------------------------------------------------------------
  Regulation
Identification                                             Title                                                  Date                 Comments
    Number
--------------------------------------------------------------------------------------------------------------------------------------------------------
3038-AB34        Exclusion for Certain Otherwise Regulated Persons From the Definition of the Term              01/29/2003   Merged With 3038-AB97
                 ``Commodity Pool Operator''
3038-AB40        Public Reporting by Operators of Certain Large Commodity Pools--Regulations 4.7, 4.12, and     03/07/2003   Withdrawn
                 4.27
3038-AB61        Trade Options on Enumerated Agricultural Commodities                                           03/07/2003   Withdrawn
3038-AB72        Exemption From Compliance with the Criterion for Linked and Coordinated Clearing               03/07/2003   Withdrawn
3038-AB74        Compliance Date for Security Futures Products To Be Cleared by a Clearing Agency That Has      03/07/2003   Withdrawn
                 Linked and Coordinated Clearing With Other Clearing Agencies
3038-AB78        Requirements for Foreign Stock Index Contracts To Qualify as Non-Narrow-Based Indices          03/07/2003   Merged With 3038-AB75
--------------------------------------------------------------------------------------------------------------------------------------------------------

_______________________________________________________________________
Commodity Futures Trading Commission (CFTC)         Proposed Rule Stage

_______________________________________________________________________

3800. MINIMUM FINANCIAL REQUIREMENTS FOR FUTURES COMMISSION MERCHANTS
AND INTRODUCING BROKERS

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 6f

CFR Citation: 17 CFR 1.17

Legal Deadline: None

Abstract: The Commission intends to propose amendments to Rule 1.17
that would adopt a risk-based capital requirement for futures
commission merchants.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            06/00/03
NPRM Comment Period End         08/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Thomas J. Smith, Deputy Director, Division of Clearing
and Intermediary Oversight, Commodity Futures Trading Commission, Three
Lafayette Centre, 1121 21st Street NW., Washington, DC 20581
Phone: 202 418-5495
Email: tsmith@cftc.gov

RIN: 3038-AB64
_______________________________________________________________________

3801. REGULATION OF HYBRID INSTRUMENTS

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 1 et seq, as amended by PL 106-554, 114 Stat
2763

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: The Commission is required, after consulting with and
obtaining the concurrence of the Board of Governors of the Federal
Reserve System, to prescribe regulations to govern hybrid instruments
if it determines that it is in the public interest and consistent with
the Commodity Exchange Act, and the product is not predominantly a
banking product under the test enumerated in title IV of the Commodity
Futures Modernization Act of 2000.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            05/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Nancy E. Yanofsky, Chief Counsel, Division of Market
Oversight, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5292
Fax: 202 418-5567
Email: nyanofsky@cftc.gov

RIN: 3038-AB69
_______________________________________________________________________

3802. USE OF BROKER-DEALERS, DEPOSITORY INSTITUTIONS, AND FARM CREDITING
SYSTEM INSTITUTIONS AS INTERMEDIARIES ON DERIVATIVES TRANSACTION
EXECUTION FACILITIES

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 1 et seq, as amended by PL 106-554, 114 Stat
2763

[[Page 31282]]

CFR Citation: Not Yet Determined

Legal Deadline: None

Abstract: The Commission is required to coordinate with the Securities
and Exchange Commission, the Secretary of the Treasury, and Federal
banking regulators (including the Farm Credit Administration) in
adopting rules and taking any other appropriate action to implement the
provisions of the Commodity Futures Modernization Act of 2000 relating
to the use of broker-dealers, depository institutions, and farm credit
system institutions as intermediaries on derivatives transaction
execution facilities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            01/00/04

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Lawrence B. Patent, Deputy Director, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5439
Fax: 202 418-5536
Email: lpatent@cftc.gov

RIN: 3038-AB70
_______________________________________________________________________

3803. OFFERING AND SELLING SECURITY FUTURES PRODUCTS TRADED ON FOREIGN
BOARDS OF TRADE TO UNITED STATES PERSONS; REQUIREMENTS FOR FOREIGN STOCK
INDEX CONTRACTS TO QUALIFY AS NON-NARROW-BASED INDICES

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 1 et seq, as amended by PL 106-554, 114 Stat
2763

CFR Citation: Not Yet Determined

Legal Deadline: Other, Statutory, December 21, 2001, Within one year
after the date of enactment of the Commodity Futures Modernization Act
of 2000.

Abstract: The Commission and the Securities and Exchange Commission are
required to jointly issue (1) rules, regulations, or orders as are
necessary and appropriate to permit the offer and sale of security
futures products traded on or subject to the rules of a foreign board
of trade to United States persons, and (2) rules and regulations that
set forth the requirements for foreign stock index contracts to qualify
as non-narrow-based indices.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            01/00/04

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Andrew V. Chapin, Attorney Advisor, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5465
Fax: 202 418-5536
Email: achapin@cftc.gov

Thomas M. Leahy Jr., Industry Economist, Division of Market Oversight,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street NW., Washington, DC 20581
Phone: 202 418-5278
Email: tleahy@cftc.gov

Related RIN: Related To 3038-AB78
RIN: 3038-AB75
_______________________________________________________________________

3804. TREATMENT OF FOREIGN FUTURES OR FOREIGN OPTIONS SECURED AMOUNT

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 6

CFR Citation: 17 CFR 30.7

Legal Deadline: None

Abstract: The Commission intends to propose an amendment to Rule 30.7
to provide that a futures commission merchant that holds funds on
behalf of customers for trading futures and options on foreign markets
may invest such funds in certain permitted investments. The proposal
would establish investments that are comparable to the investments that
a futures commission merchant may make with customer funds deposited
for trading on United States markets pursuant to Rule 1.25.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            09/00/03
NPRM Comment Period End         11/00/03

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Thomas J. Smith, Deputy Director, Division of Clearing
and Intermediary Oversight, Commodity Futures Trading Commission, Three
Lafayette Centre, 1121 21st Street NW., Washington, DC 20581
Phone: 202 418-5495
Email: tsmith@cftc.gov

RIN: 3038-AB96
_______________________________________________________________________

3805. [bull] EXCLUSION FOR CERTAIN OTHERWISE REGULATED PERSONS FROM
DEFINITION OF COMMODITY POOL OPERATOR; EXEMPTION FROM CERTAIN PART 4
REQUIREMENTS FOR COMMODITY POOL OPERATORS AND COMMODITY TRADING ADVISORS

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 1a; 7 USC 2; 7 USC 6b; 7 USC 6c; 7 USC 6l to 6o;
7 USC 12a; 7 USC 23

CFR Citation: 17 CFR 4.7; 17 CFR 4.12 to 4.14; 17 CFR 4.21; ...

Legal Deadline: None

Abstract: The Commission is proposing to amend and adopt new rules
under part 4 of its regulations. The proposed rules would: (1) expand
the availability of the current exclusion from the CPO definition; (2)
establish additional CPO and CTA registration exemptions; (3)
facilitate CPO and CTA communications prior to Disclosure Document
distribution; (4) provide for CPOs to electronically distribute
periodic account statements; (5) modernize signature requirements; and
(6) remove duplicative solicitation and reporting requirements.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           11/13/02                    67 FR 68785
ANPRM Comment Period End        01/23/03                     68 FR 2254
NPRM                            03/17/03                    68 FR 12622
NPRM Comment Period End         05/01/03
Final Action                    07/00/03

Regulatory Flexibility Analysis Required: Yes

Small Entities Affected: Businesses

[[Page 31283]]

Government Levels Affected: None

Agency Contact: Barbara S. Gold, Associate Director, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5450
Fax: 202 418-5528
Email: bgold@cftc.gov

Christopher W. Cummings, Special Counsel, Division of Clearing and
Intermediary Oversight, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5450
Fax: 202 418-5528
Email: ccummings@cftc.gov

Related RIN: Related To 3038-AB98
RIN: 3038-AB97
_______________________________________________________________________
Commodity Futures Trading Commission (CFTC)            Final Rule Stage

_______________________________________________________________________

3806. PERFORMANCE DISCLOSURES FOR COMMODITY TRADING ADVISORS AND
COMMODITY POOL OPERATORS

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 6n; 7 USC 6o; 7 USC 12a

CFR Citation: 17 CFR 4.25; 17 CFR 4.35

Legal Deadline: None

Abstract: The Commodity Futures Trading Commission is proposing
amendments to the requirements concerning the presentation of rate of
return data by commodity trading advisors and commodity pool operators.
The Commission's proposed rules address computational and disclosure
matters relating to participating in commodity trading advisor programs
on a partially funded basis.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

ANPRM                           06/18/98                    63 FR 33297
ANPRM Comment Period End        09/16/98
NPRM                            08/02/99                    64 FR 41843
NPRM Comment Period End         10/01/99
NPRM                            03/13/03                    68 FR 12001
NPRM Comment Period End         04/14/03
Final Action                    08/00/03

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Robert B. Wasserman, Associate Director, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5092
Fax: 202 418-5528
Email: rwasserman@cftc.gov

RIN: 3038-AB39
_______________________________________________________________________

3807. REGISTRATION EXEMPTIONS PERTAINING TO THE OFFER AND SALE OF
FOREIGN FUTURES AND FOREIGN OPTIONS CONTRACTS TO CUSTOMERS LOCATED IN
THE UNITED STATES

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 2(a)(1)(A); 7 USC 6(b); 7 USC 6c

CFR Citation: 17 CFR 30.1; 17 CFR 30.4; 17 CFR 30.10

Legal Deadline: None

Abstract: The Commission proposes to codify some of the interpretations
and positions that its staff has taken regarding registration
requirements under part 30 of the Commission's rules, which governs,
generally, the solicitation and sale of foreign futures and foreign
options contracts to customers located in the United States. The
Commission proposes to modify Rule 30.4(a) by clarifying that foreign
futures and options brokers, including those with U.S. bank branches,
are not required to register as futures commission merchants (FCMs)
pursuant to Rule 30.4, or seek Rule 30.10 relief, if they fall
generally into the following categories: (1) those that carry customer
omnibus accounts for U.S. FCMs; (2) those that carry U.S. affiliate
accounts that are proprietary to the foreign futures and options
broker; and (3) those that carry U.S. accounts that are proprietary to
a U.S. FCM. In addition, proposed Rule 30.10(a) will specify
representations that must be made by a foreign futures and options
broker that has U.S. bank branches in order to obtain a Rule 30.10
comparability exemption or to come within the registration exception of
Rule 30.4.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            08/26/99                    64 FR 46613
NPRM Comment Period End         10/25/99
Final Action                    07/00/03
Final Action Effective          09/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Susan A. Elliott, Attorney Advisor, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5464
Fax: 202 418-5528
Email: selliott@cftc.gov

RIN: 3038-AB45
_______________________________________________________________________

3808. CUSTOMER IDENTIFICATION PROGRAM FOR FUTURES COMMISSION MERCHANTS
AND INTRODUCING BROKERS

Priority: Substantive, Nonsignificant

Legal Authority: PL 107-56, sec 326; 31 USC 5318(1)

CFR Citation: 31 CFR 103; 31 CFR 123; 17 CFR 1

Legal Deadline: NPRM, Statutory, October 25, 2002.

Abstract: The Department of the Treasury and the Commodity Futures
Trading Commission are required to jointly prescribe regulations
relating to customer identification programs for futures commission
merchants and introducing brokers.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            07/23/02                    67 FR 48328

[[Page 31284]]

Comment Period End              09/06/02
Final Action                    05/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Office of General Counsel, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5120
Fax: 202 418-5524
Email: ogc@cftc.gov

RIN: 3038-AB90
_______________________________________________________________________

3809. ALLOCATION OF BUNCHED ORDERS

Priority: Substantive, Nonsignificant

Legal Authority: 7 USC 1 et seq, as amended by PL 106-554, 114 Stat
2763

CFR Citation: 17 CFR 1.35

Legal Deadline: None

Abstract: The Commission intends to propose procedures for streamlining
the allocation of bunched orders for futures and commodity option
trades, as well as the associated recordkeeping requirements. The
proposal was referred to in the Commission's intermediaries study, and
it addresses concerns regarding the possibility of fraud and money-
laundering activities.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            03/14/03                    68 FR 12319
NPRM Comment Period End         04/28/03
Final Action                    09/00/03

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Christopher W. Cummings, Special Counsel, Division of
Clearing and Intermediary Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581
Phone: 202 418-5450
Fax: 202 418-5528
Email: ccummings@cftc.gov

RIN: 3038-AB93
_______________________________________________________________________
Commodity Futures Trading Commission (CFTC)           Completed Actions

_______________________________________________________________________

3810. DENOMINATION OF CUSTOMER FUNDS AND LOCATION OF DEPOSITORIES

Priority: Substantive, Nonsignificant

CFR Citation: 17 CFR 1.32; 17 CFR 1.49

Completed:
________________________________________________________________________

Reason                            Date                      FR Cite

________________________________________________________________________

Final Action                    02/04/03                     68 FR 5545
Final Action Effective          03/06/03

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Michael A. Piracci
Phone: 202 418-5446
Fax: 202 418-5536
Email: mpiracci@cftc.gov

RIN: 3038-AB31
_______________________________________________________________________

3811. REPORTING LEVELS FOR LARGE TRADER REPORTS; TRAKRS

Priority: Substantive, Nonsignificant

CFR Citation: 17 CFR 15.03

Completed:
________________________________________________________________________

Reason                            Date                      FR Cite

________________________________________________________________________

Final Action                    10/21/02                    67 FR 64522
Final Action Effective          11/20/02

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Gary J. Martinaitis
Phone: 202 418-5260
Fax: 202 418-5527
Email: gmartinaitis@cftc.gov

RIN: 3038-AB91
[FR Doc. 03-7423 Filed 05-23-03; 8:45 am]
BILLING CODE 6351-01-S