[June 28, 2004 (Volume 69, Number 123)]
[Unified Agenda]
From the Federal Register Online via GPO Access [frwais.access.gpo.gov]
[DOCID: f:ua040446.wais]

[Page 38478-38482]

Commodity Futures Trading Commission


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Part XLVI








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Semiannual Regulatory Agenda

[[Page 38478]]

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 2004 regulatory flexibility agenda is 
set forth below.

Issued in Washington, DC on May 7, 2004, 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 Identifier
Number Number
----------------------------------------------------------------------------------------------------------------
3846 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..............................................................
3847 Interagency Proposal To Consider Alternative Forms of Privacy Notices Under the Gramm- 3038-AC04
Leach-Bliley Act......................................................................
3848 Haircuts on Foreign Currency.......................................................... 3038-AC05
3849 Execution of Off-Centralized Market Transactions: Regulation 1.38 and Guidance on Core 3038-AC07
Principle 9...........................................................................
----------------------------------------------------------------------------------------------------------------


Commodity Futures Trading Commission--Final Rule Stage
----------------------------------------------------------------------------------------------------------------
Regulation
Sequence Title Identifier
Number Number
----------------------------------------------------------------------------------------------------------------
3850 Registration Exemptions Pertaining to the Offer and Sale of Foreign Futures and 3038-AB45
Foreign Options Contracts to Customers Located in the United States...................
3851 Minimum Financial Requirements for Futures Commission Merchants and Introducing 3038-AB64
Brokers...............................................................................
3852 Information Access and Price Transparency For Exempt Commercial Markets............... 3038-AC02
3853 Collection of Claims Owed the United States Arising from Activities Under the 3038-AC03
Commission's Jurisdiction.............................................................
3854 Reporting Levels and Trades Involving the Exchange of Futures......................... 3038-AC08
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[[Page 38479]]


Commodity Futures Trading Commission--Completed Actions
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Regulation
Sequence Title Identifier
Number Number
----------------------------------------------------------------------------------------------------------------
3855 Regulation of Hybrid Instruments...................................................... 3038-AB69
3856 Use of Broker-Dealers, Depository Institutions, and Farm Crediting System Institutions 3038-AB70
as Intermediaries on Derivatives Transaction Execution Facilities.....................
3857 Investment of Customer Funds.......................................................... 3038-AC01
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________
Commodity Futures Trading Commission (CFTC) Proposed Rule Stage

_______________________________________________________________________

3846. 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 07/00/04

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
_______________________________________________________________________

3847. INTERAGENCY PROPOSAL TO CONSIDER ALTERNATIVE FORMS OF PRIVACY 
NOTICES UNDER THE GRAMM-LEACH-BLILEY ACT

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 7 USC 7b-2; 7 USC 12a(5); 15 USC 6801 et seq

CFR Citation: 17 CFR 160

Legal Deadline: None

Abstract: Subtitle A of the Gramm-Leach-Bliley Act (GLB Act), captioned 
Disclosure of Nonpublic Personal Information (15 U.S.C. 6801 et seq.), 
requires each financial institution to provide a notice of its privacy 
policies and practices to its consumer customers. In general, the 
privacy notices must describe a financial institution's policies and 
practices with respect to disclosing nonpublic personal information 
about a consumer to both affiliated and nonaffiliated third parties, 
and provide a consumera reasonable opportunity to direct the 
institution not to share nonpublic personal information about the 
consumer with nonaffiliated third parties. The GLB Act agencies, 
including the CFTC, have published substantially identical regulations 
to implement GLB title V, known collectively as the ``privacy rule.'' 
Many notices issued under the privacy rule were long and complex, and 
difficult to compare with each other. Consequently, GLB Act agencies 
are considering whether to amend the privacy rule to provide for 
simpler, more useful notices. The GLB Act agencies intend to issue an 
advance notice of proposed rulemaking to determine whether to propose 
changes to the privacy rule, and if so, will seek further public 
comment on specific programs. The agencies expect that consumer testing 
would be a key component in the development of any specific proposals.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

ANPRM 12/30/03 68 FR 75164
ANPRM Comment Period End 03/29/04
NPRM 09/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: Businesses

Government Levels Affected: Federal

Agency Contact: Laura M. Richards, Senior Assistant General Counsel, 
Office of General Counsel, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5126
Fax: 202 418-5524
Email: lrichards@cftc.gov

David Jacobsohn, Counsel, Office of General Counsel, Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581
Phone: 202 418-5161
Email: djacobsohn@cftc.gov

RIN: 3038-AC04

[[Page 38480]]

_______________________________________________________________________

3848. HAIRCUTS ON FOREIGN CURRENCY

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 7 USC 6f(b)

CFR Citation: 17 CFR 1.17

Legal Deadline: None

Abstract: The Commission is proposing to amend regulations that specify 
required capital charges, or exclusions from net capital, to be 
deducted by futures commission merchants (FCMs) and introducing brokers 
(IBs) when computing their adjusted net capital. For forward contracts 
that are not covered by an open futures contract or commodity option, 
and are in specified foreign currencies (British pounds, Canadian 
dollars, Japanese yen, Swiss francs, or the Euro), the proposed 
amendment would apply a capital charge of six percent of the market 
value of the FCM's or IB's uncovered forward contracts in these 
currencies. Uncovered forwards in any other non-U.S. currency would 
remain subject to the 20 percent capital charge currently set forth in 
the Commission's regulations.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

NPRM 07/00/04
NPRM Comment Period End 09/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Thelma Diaz, Senior Counsel, Division of Clearing and 
Intermediary Oversight, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5137
Fax: 202 418-5536
Email: tdiaz@cftc.gov

RIN: 3038-AC05
_______________________________________________________________________

3849. [bullet][ls-thn-eq] EXECUTION OF OFF-CENTRALIZED MARKET 
TRANSACTIONS: REGULATION 1.38 AND GUIDANCE ON CORE PRINCIPLE 9

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

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

CFR Citation: 17 CFR 1; 17 CFR 38

Legal Deadline: None

Abstract: Since the Commission originally promulgated Regulation 1.38, 
the Commodity Futures Modernization Act of 2000 (CFMA) was signed into 
law. The CFMA, among other things, specifically expanded the allowable 
transactions that could be executed off the centralized market. The 
Commission is considering whether to propose amendments to its rules 
concerning trading off the centralized market, including the addition 
of guidance on contract market block trading rules, in light of further 
administrative experience with, and consideration of, the implications 
of the CFMA.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

NPRM 07/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Riva Spear Adriance, Special Counsel, Division of 
Market Oversight, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5494
Fax: 202 418-5507
Email: radriance@cftc.gov

RIN: 3038-AC07
_______________________________________________________________________
Commodity Futures Trading Commission (CFTC) Final Rule Stage

_______________________________________________________________________

3850. 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 carry only: 
(1) customer omnibus accounts for U.S. FCMs; (2) U.S. affiliate 
accounts that are proprietary to the foreign futures and options 
broker; or (3) 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
Second NPRM 04/06/04 69 FR 17998
Second NPRM Comment Period End 06/07/04
Final Action 09/00/04
Final Action Effective 10/00/04

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,

[[Page 38481]]

1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5464
Fax: 202 418-5528
Email: selliott@cftc.gov

RIN: 3038-AB45
_______________________________________________________________________

3851. 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 07/09/03 68 FR 40835
NPRM Comment Period End 09/08/03
Final Action 07/00/04
Final Action Effective 08/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Thomas J. Smith, Chief Accountant and Associate 
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
_______________________________________________________________________

3852. INFORMATION ACCESS AND PRICE TRANSPARENCY FOR EXEMPT COMMERCIAL 
MARKETS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 7 USC 2(h)(3) to (5)

CFR Citation: 17 CFR 36.3

Legal Deadline: None

Abstract: The proposal would revise the rules on Commission access to 
information on transactions on electronic trading facilities operating 
as exempt commercial markets under the Commodity Exchange Act to 
provide for access to more relevant and useful information. The 
proposed rules also would require such markets to publicly disseminate 
certain trading data if, as defined, they perform a significant price 
discovery function in the underlying cash market.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

NPRM 11/25/03 68 FR 66032
NPRM Comment Period End 01/26/04
Final Action 07/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Donald H. Heitman, Senior Special Counsel, Division of 
Market Oversight, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5041
Fax: 202-418-5507
Email: dheitman@cftc.gov

RIN: 3038-AC02
_______________________________________________________________________

3853. COLLECTION OF CLAIMS OWED THE UNITED STATES ARISING FROM 
ACTIVITIES UNDER THE COMMISSION'S JURISDICTION

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

Legal Authority: 31 USC 3720D; 31 CFR 285.11

CFR Citation: 17 CFR 143

Legal Deadline: None

Abstract: Pursuant to the Debt Collection Improvement Act (DCIA) of 
1996, the Department of the Treasury has promulgated regulations 
authorizing and governing the administrative garnishment of wages of 
persons, not employed by the Federal government, who owe claims to the 
United States. Under the DCIA and Treasury regulations, Federal 
agencies can promulgate rules allowing for the garnishment of such 
claims arising from actions within their jurisdiction. As a general 
matter, the individual agencies' rules must adopt, or otherwise conform 
to, the Treasury rules. To expedite the collection of claims arising 
from activity within its jurisdiction, the Commission is amending its 
part 143 rules, governing debt collections, to provide for 
administrative wage garnishment.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

NPRM 12/15/03 68 FR 69634
NPRM Comment Period End 01/14/04
Final Action 07/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Stephen F. Mihans, Counsel, Office of General Counsel, 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW., Washington, DC 20581
Phone: 202 418-5399
Fax: 202 418-5524
Email: smihans@cftc.gov

RIN: 3038-AC03
_______________________________________________________________________

3854. [bullet][ls-thn-eq] REPORTING LEVELS AND TRADES INVOLVING THE 
EXCHANGE OF FUTURES

Priority: Substantive, Nonsignificant

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

CFR Citation: 17 CFR 15 to 21

Legal Deadline: None

Abstract: The Commission is considering proposing rules to raise 
reporting levels, address the manner in which certain transactions are 
reported to the Commission, and amend the rules that establish current 
data transmission practices.

Timetable:
________________________________________________________________________

Action Date FR Cite

________________________________________________________________________

NPRM 05/12/04 69 FR 26333
NPRM Comment Period End 06/11/04
Final Action 07/00/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Gary J. Martinaitis, Associate Deputy Director for 
Market Information, Market Surveillance Section, Commodity Futures 
Trading Commission, Division of Market Oversight, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581

[[Page 38482]]

Phone: 202 418-5290
Fax: 202 418-5527
Email: gmartinaitis@cftc.gov

RIN: 3038-AC08
_______________________________________________________________________
Commodity Futures Trading Commission (CFTC) Completed Actions

_______________________________________________________________________

3855. REGULATION OF HYBRID INSTRUMENTS

Priority: Substantive, Nonsignificant

CFR Citation: Not Yet Determined

Completed:
________________________________________________________________________

Reason Date FR Cite

________________________________________________________________________

Withdrawn 04/20/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Bruce B. Fekrat
Phone: 202 418-5578
Email: bfekrat@cftc.gov

RIN: 3038-AB69
_______________________________________________________________________

3856. USE OF BROKER-DEALERS, DEPOSITORY INSTITUTIONS, AND FARM CREDITING 
SYSTEM INSTITUTIONS AS INTERMEDIARIES ON DERIVATIVES TRANSACTION 
EXECUTION FACILITIES

Priority: Substantive, Nonsignificant

CFR Citation: Not Yet Determined

Completed:
________________________________________________________________________

Reason Date FR Cite

________________________________________________________________________

Withdrawn 04/29/04

Regulatory Flexibility Analysis Required: No

Government Levels Affected: None

Agency Contact: Lawrence B. Patent
Phone: 202 418-5439
Fax: 202 418-5536
Email: lpatent@cftc.gov

RIN: 3038-AB70
_______________________________________________________________________

3857. INVESTMENT OF CUSTOMER FUNDS

Priority: Substantive, Nonsignificant. Major status under 5 USC 801 is 
undetermined.

CFR Citation: 17 CFR 1.25

Completed:
________________________________________________________________________

Reason Date FR Cite

________________________________________________________________________

Final Action 02/10/04 69 FR 6140
Final Action Effective 03/11/04

Regulatory Flexibility Analysis Required: No

Small Entities Affected: No

Government Levels Affected: None

Agency Contact: Phyllis P. Dietz
Phone: 202 418-5449
Fax: 202 418-5536
Email: pdietz@cftc.gov

RIN: 3038-AC01
[FR Doc. 04-11489 Filed 06-25-04; 8:45 am]
BILLING CODE 6351-01-S
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