For Release: July 23, 1999
Commodity Futures Trading Commission Issues
Advisories and Delegation
Order Regarding the Filing and Maintenance of Exchange Disciplinary or
Access Denial Action Notices
Washington, D.C. - The Commodity Futures Trading
Commission (Commission) today issued two Advisories regarding exchange
disciplinary information, and a Notice and Order delegating to the
National Futures Association (NFA) certain responsibilities under Commission
Regulation 9.11 related to the receipt and maintenance of this
information. The advisories reflect the Commission's continued
commitment to minimize regulatory reporting burdens and to recognize
advances in electronic media technology. The Regulation 9.11 Advisory and
Notice and Order eliminate a duplicative reporting obligation while
providing exchanges with a simple, electronic method of reporting.
The Regulation 9.11 Advisory will permit exchanges to forego the requirement that notices of disciplinary or access denial actions be provided to the Commission. Instead, exchanges may file these notices directly with the NFA, either electronically or in writing. All information from Regulation 9.11 notices will be stored in the Background Affiliation Status Information Center (BASIC), the NFA's database of disciplinary histories.
The Commission is also publishing a Regulation 3.31 Advisory. It is intended to eliminate a potential duplicative regulatory reporting obligation by exempting registrants, and applicants for registrant status, from the requirement to file a Form 3-R with the Commission, if the information to be reported on Form 3-R is solely the result of an exchange disciplinary or access denial action. That filing will be unnecessary since the NFA processes registration information and already will be in receipt of such information as a result of exchanges filing notices of disciplinary or access denial actions directly with the NFA.
The Commission's two Advisories and Notice and Order will become effective shortly, upon written notification by the NFA to the Commission that the NFA is prepared to assume the responsibilities contained in the Notice and Order. The Advisories and the Notice and Order will be published in the Federal Register. Copies of the publications 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 website, http://www.cftc.gov.