Release: #4196-98
For Release: October 15, 1998


Restitution Rules, Changes to Prehearing Procedures Included in Revisions

WASHINGTON -- The Commodity Futures Trading Commission today announced the adoption of final rules amending its Rules of Practice, which govern administrative enforcement proceedings brought under the Commodity Exchange Act. The amendments, which represent the first substantial revision of the Rules since their promulgation in 1976, are intended to improve the overall fairness and efficiency of the administrative process and facilitate the use of statutory authority granted to the Commission in 1992 to require the payment of restitution by respondents in appropriate cases. In addition to restitution, most of the substantive amendments adopted by the Commission relate to prehearing procedures, including the disclosure of investigatory materials obtained by the Commission's Division of Enforcement, the production of witness statements, requests for admissions and the issuance of subpoenas requiring the production of documents.

The amendments were proposed in a Federal Register notice published on April 3, 1998. Based on public comment received and its own further consideration of the proposed amendments, the Commission made a number of revisions, clarifying, among other things, the disclosure obligations of the parties to a proceeding and the standards that must be met for protective orders, a stay of Commission-imposed sanctions pending judicial review and other forms of relief.

The rule amendments will be published shortly in the Federal Register and will become effective 30 days after publication. They will apply only to proceedings initiated on or after the effective date. Proceedings initiated before that date will be governed by the current Rules of Practice. Copies of the amended Rules of Practice 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 or by accessing the Commission's web site at