For Release: April 19, 2001
Proposed Rules to Govern Requests for Exemptive Orders by Securities Broker-Dealers Trading Security Futures Products
Washington, D.C. -- The Commodity Futures Trading Commission (Commission) has proposed for public comment new rule 41.41. The new rule would establish procedures for those securities broker-dealers who register by notice with the Commission as futures commission merchants or introducing brokers (or who are exempt from registering as floor brokers or floor traders) because their involvement in commodity interest trading is restricted to security futures products, to request exemption from the Commodity Exchange Act (CEA) and rules thereunder beyond those exemptions already granted in the Commodity Futures Modernization Act of 2000 (CFMA). In addition to exempting such persons from designated sections of the CEA and rules thereunder, section 252 of the CFMA authorizes the Commission to provide additional exemptive relief by rules, regulations or orders. The CFMA further directs the Commission to establish procedures by which exemptive orders can be requested and issued or denied. Accordingly, the Commission is proposing to adopt new rule 41.41 setting forth procedures by which registered broker-dealers may request exemptive orders as provided by the CFMA. The Commission also requests comment as to whether it should by rulemaking exempt these persons from specific sections of the CEA and rules thereunder in addition to the express exemptions provided by the CFMA.
These amendments were published in the Federal Register on April 19, 2001. Copies may be obtained by contacting the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, (202) 418-5100. Public comments on the proposed rule amendments must be received at the Office of the Secretariat on or before May 21, 2001.