Release:          #4266-99
For Release:     May 24, 1999

CFTC ISSUES FINAL RULES AMENDING ITS RECORDKEEPING REQUIREMENTS

Expanded Use of Micrographic and Electronic Storage Media Permitted

WASHINGTON � As part of its continuing program to update its rules, the Commodity Futures Trading Commission (CFTC) has adopted amendments to the recordkeeping requirements contained in its regulations, 17 C.F.R. �1.31. The amendments allow recordkeepers to store most categories of required records on either micrographic or electronic storage media for the full five-year maintenance period. The amendments harmonize many recordkeeping requirements for firms regulated by both the CFTC and the Securities and Exchange Commission. As a result, recordkeepers will have the flexibility necessary to maximize the cost reduction and time savings available from improved storage technology. At the same time, Commission auditors and investigators will continue to have timely access to reliable systems of records and have opportunities to make informal assessments of the practicality of expanding the scope of records eligible for electronic storage in the future. The adoption of amended rules 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.

The Commission has forwarded the final rule amendments to the Federal Register for publication. The amendments will become effective 30 days after their publication. Copies of the final rule amendments may be obtained by writing to the Commission's Office of the Secretariat, Three Lafayette Centre, 1155 21^st Street, N.W., Washington, D.C. 20581, by calling (202) 418-5100, or by accessing the Commission's website at www.cftc.gov.