Release: #4148-98

For Release: June 1, 1998

CFTC PROPOSES TO AMEND ITS RECORDKEEPING REQUIREMENTS

Expanded Use of Micrographic and Electronic Storage Media Proposed;

Public Comment Sought

WASHINGTON � The Commodity Futures Trading Commission (CFTC) has proposed amendments to the recordkeeping requirements established in its regulations, 17 C.F.R. �1.31. The proposed amendments are intended to maximize the cost reduction and time savings arising from technological developments in the area of electronic storage media, while maintaining necessary safeguards to ensure the reliability of the recordkeeping process. The proposal is one of a series of steps the CFTC has taken to facilitate the use of electronic media technology where adequate measures exist to safeguard the public interest.

Commission rule 1.31 regulates registrants� duty to maintain required records and to permit representatives of the Commission and the Department of Justice to inspect and to obtain copies of those records. The proposed amendments expand the opportunities for registrants to use micrographic and electronic storage media for recordkeeping and would eliminate the current requirement that paper records eligible for transfer to micrographic storage media be maintained in hard copy form for two years. The proposal also discusses and seeks comment on several recordkeeping-related issues recently raised in correspondence from the National Futures Association.

The Commission has forwarded the proposed amendments to the Federal Register for publication. The Federal Register notice provides for a 60-day comment period. Copies of the proposed rule may be obtained by writing to the Commission�s Office of the Secretariat, Three Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581, by calling (202) 418-5100, or by accessing the Commission�s website, www.cftc.gov.