[Federal Register: June 22, 2007 (Volume 72, Number 120)]
[Proposed Rules]
[Page 34413-34416]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22jn07-18]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
[[Page 34413]]
COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 18
RIN 3038-AC22
Maintenance of Books, Records and Reports by Traders
AGENCY: Commodity Futures Trading Commission.
ACTION: Proposed rules.
-----------------------------------------------------------------------
SUMMARY: Commission Regulation 18.05 requires that a person holding or
controlling a futures or option position in a commodity above a certain
level (reportable position) on a designated contract market or
registered derivatives transaction execution facility (reporting
markets) must retain books and records and make available to the
Commission upon request any pertinent information with respect to other
positions, transactions or activities in the commodity in which the
trader has a reportable position. The Commission is proposing to amend
Regulation 18.05 in two respects: To make it explicit that persons
holding or controlling reportable positions on a reporting market must
retain books and records and make available to the Commission upon
request any pertinent information with respect to all other positions
and transactions in the commodity in which the trader has a reportable
position, including positions held or controlled or transactions
executed over-the-counter and/or pursuant to Sections 2(d), 2(g) or
2(h)(1)-(2) of the Commodity Exchange Act (Act) or Part 35 of the
Commission's regulations, on exempt commercial markets operating
pursuant to Sections 2(h)(3)-(5) of the Act, on exempt boards of trade
operating pursuant to Section 5d of the Act, and on foreign boards of
trade (hereinafter referred to collectively as non-reporting
transactions); and to make the regulation clearer and more complete
with respect to hedging activity. The purpose of the amendments is to
enhance the Commission's ability to deter and prevent price
manipulation or any other disruptions to the integrity of the regulated
futures markets, to ensure the avoidance of systemic risk, and to
clarify the meaning of the regulation.
DATES: Comments must be received by July 23, 2007.
ADDRESSES: Comments should be sent to the Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington,
DC 20581, attention: Office of the Secretariat. Comments may be sent by
facsimile to 202-418-5521, or by e-mail to [email protected].
Reference should be made to ``Regulation 18.05.'' Comments may also be
submitted to the Federal eRulemaking Portal: http://www.regulations.gov
.
FOR FURTHER INFORMATION CONTACT: Duane C. Andresen, Special Counsel,
Division of Market Oversight, Three Lafayette Centre, 1155 21st Street,
NW., Washington, DC 20581. Telephone 202-418-5492; e-mail [email protected]. This document is also available at
http://www.regulations.gov.
SUPPLEMENTARY INFORMATION:
I. Purpose of Regulation 18.05 and Statutory Basis
Section 3(b) of the Commodity Exchange Act (Act) \1\ declares that
the purpose of the Act is to, among other things, deter and prevent
price manipulation or any other disruptions to market integrity and to
ensure the financial integrity of all transactions subject to the Act
and the avoidance of systemic risk.\2\ Section 4i of the Act \3\
requires persons holding futures or option positions at designated
contract markets (DCM) or registered derivatives transaction execution
facilities (DTEF) at or above certain levels to keep books and records
of all:
(1) Transactions and positions in the exchange-traded commodity,
(2) transactions and positions in any such commodity traded on or
subject to the rules of any other board of trade, and
(3) cash or spot transactions in, and inventories and purchase and
sale commitments of such commodity.
Such books and records must be open at all times for inspection by
any representative of the Commission or the Department of Justice.
---------------------------------------------------------------------------
\1\ 7 U.S.C. 5(b) (2006).
\2\ Section 3(b) of the Act provides in full that it is the
purpose of this chapter to serve the public interests described in
subsection (a) of this section through a system of effective self-
regulation of trading facilities, clearing systems, market
participants and market professionals under the oversight of the
Commission. To foster these public interests, it is further the
purpose of this chapter to deter and prevent price manipulation or
any other disruptions to market integrity; to ensure the financial
integrity of all transactions subject to this chapter and the
avoidance of systemic risk; to protect all market participants from
fraudulent or other abusive sales practices and misuses of customer
assets; and to promote responsible innovation and fair competition
among boards of trade, other markets and market participants.
\3\ 7 U.S.C. 6i (2006). Section 4i of the Act provides that it
shall be unlawful for any person to make any contract for the
purchase or sale of any commodity for future delivery on or subject
to the rules of any contract market or derivatives transaction
execution facility if such person shall directly or indirectly make
such contracts with respect to any commodity or any future of such
commodity during any one day in an amount equal to or in excess of
such amount as shall be fixed from time to time by the Commission,
and if such person shall directly or indirectly have or obtain a
long or short position in any commodity or any future of such
commodity equal to or in excess of such amount as shall be fixed
from time to time by the Commission, unless such person files or
causes to be filed with the properly designated officer of the
Commission such reports regarding any transactions or positions
described in clauses (1) and (2) hereof as the Commission may by
rule or regulation require and unless, in accordance with rules and
regulations of the Commission, such person shall keep books and
records of all such transactions and positions and transactions and
positions in any such commodity traded on or subject to the rules of
any other board of trade, and of cash or spot transactions in, and
inventories and purchase and sale commitments of such commodity.
Such books and records shall show complete details concerning all
such transactions, positions, inventories, and commitments,
including the names and addresses of all persons having any interest
therein, and shall be open at all times to inspection by any
representative of the Commission or the Department of Justice. For
the purposes of this section, the futures and cash or spot
transactions and positions of any person shall include such
transactions and positions of any persons directly or indirectly
controlled by such person.
---------------------------------------------------------------------------
Section 8a(5) of the Act \4\ provides explicit authority to the
Commission to make and promulgate such rules and regulations as, in the
judgment of the Commission, are reasonably necessary to effectuate any
of the provisions or to accomplish any of the purposes of the Act. In
order to accomplish the purposes of Sections 3(b) and 4i set forth
above, the Commission has promulgated regulations creating market and
large trader reporting
[[Page 34414]]
requirements.\5\ Included among these regulations is a requirement that
persons holding futures or option positions at DCMs or DTEFs (reporting
markets) \6\ at or above reportable levels (reportable positions) \7\
are identified to the Commission under the large trader reporting
system (LTRS).
The LTRS, which requires that clearing members, futures commission
merchants (FCM) and foreign brokers file daily reports with the
Commission, enables the Commission to assess an individual trader's
activities and potential market power and to enforce the Commission or
DCM-set limits on speculative positions.\8\ Once a trader holds a
reportable position, the trader is subject to Commission Regulation
18.05,\9\ which requires that the trader keep books and records showing
all details concerning:
(1) All positions and transactions for future delivery in the
commodity on all reporting markets;
(2) all positions and transactions in the commodity option;
(3) all positions and transactions in the cash commodity, its
products and byproducts; and
(4) commercial activities that the trader hedges in the commodity
underlying the futures contract in which the trader is reportable.\10\
A reportable trader is required to furnish to the Commission, upon
request, any pertinent information concerning these positions,
transactions or activities.\11\ Traders who do not hold reportable
positions do not have obligations under Regulation 18.05.
---------------------------------------------------------------------------
\4\ 7 U.S.C. 12a(5) (2006).
\5\ The Commission's market and large trader reporting rules are
contained in Parts 15 through 21 of the Commission's regulations.
\6\ Pursuant to Commission Regulation 15.00(m), a reporting
market means a designated contract market and, unless determined
otherwise by the Commission with respect to the facility or a
specific contract listed by the facility, a registered derivatives
transaction execution facility.
\7\ Pursuant to Commission Regulation 15.00(l), reportable
position means: for reports specified in parts 17, 18 and Sec.
19.00(a)(2) and (a)(3) of this chapter any open contract position
that at the close of the market on any business day equals or
exceeds the quantity specified in Sec. 15.03 of this part in
either: any one future of any commodity on any one reporting market,
excluding future contracts against which notices of delivery have
been stopped by a trader or issued by the clearing organization of a
reporting market; or long or short put or call options that exercise
into the same future of any commodity, or long or short put or call
options for options on physicals that have identical expirations and
exercise into the same physical, on any one reporting market. For
the purposes of reports specified in Sec. 19.00(a)(1) of this
chapter, any combined futures and futures-equivalent option open
contract position as defined in part 150 of this chapter in any one
month or in all months combined, either net long or net short in any
commodity on any one reporting market, excluding futures positions
against which notices of delivery have been stopped by a trader or
issued by the clearing organization of a reporting market, which at
the close of the market on the last business day of the week exceeds
the net quantity limit in spot, single or in all-months fixed in
Sec. 150.2 of this chapter for the particular commodity and
reporting market.
\8\ The Commission also uses large-trader reporting information
as a means to ensure the avoidance of systemic risk in that such
information enables Commission staff to determine which FCMs
carrying accounts might have exposure in particular markets.
\9\ Regulation 18.05 states in full that every trader who holds
or controls a reportable futures or option position shall keep books
and records showing all details concerning all positions and
transactions for future delivery in the commodity on all reporting
markets, all positions and transactions in the commodity option, and
all positions and transactions in the cash commodity, its products
and byproducts and, in addition, commercial activities that the
trader hedges in the commodity underlying the futures contract in
which the trader is reportable, and shall upon request furnish to
the Commission any pertinent information concerning such positions,
transactions or activities.
\10\ In describing the requirements of Regulation 18.05 in 1981,
the Commission stated that the regulation requires reportable
traders to maintain books and records of futures positions and
transactions in the commodity in which they are reportable and all
positions and transactions in the cash commodity and its products
and byproducts.* * * [T]he Commission wishes to underscore its view
that the book and recordkeeping requirements and inspection
provision contained therein are essential to accomplish the purposes
of the Act and within the Commission's authority to adopt pursuant
to section[s] 4i and 8a(5) of the Act. These requirements have
always applied to the traders who hold or control a reportable
position, and have not been restricted in any way. ``Reporting
Requirements for Contract Markets, Futures Commission Merchants,
Members of Exchanges and Large Traders,'' 46 FR 59,960, 59,963
(December 8, 1981) (footnote omitted).
\11\ The Commission currently requests such information an
average of three times per year.
---------------------------------------------------------------------------
II. Proposed Amendments
A. Introduction
In order to enhance its ability to detect and prevent manipulation
of regulated markets and products and to ensure the avoidance of
systemic risk, as well as to clarify the meaning of the regulation and
bring it up to date, the Commission proposes, for the reasons discussed
below, to amend Regulation 18.05 in the following respects:
1. To make it explicit that persons holding or controlling
reportable positions on a reporting market must retain books and
records and make available to the Commission upon request pertinent
information with respect to all non-reporting transactions, i.e., all
positions and transactions in the commodity in which the trader is
reportable, including transactions executed over-the-counter and/or
pursuant to Sections 2(d), 2(g) or 2(h)(1)-(2) of the Act or Part 35 of
the Commission's regulations, on exempt commercial markets operating
pursuant to Sections 2(h)(3)-(5) of the Act (ECM), on exempt boards of
trade operating pursuant to Section 5d of the Act (EBOT), and on
foreign boards of trade (FBOT); and
2. to make the regulation clearer and more complete with respect to
hedging activity.
B. Amendments Related to Recordkeeping and Reporting
There is a close relationship among transactions conducted on
reporting markets and non-reporting transactions. In view of this, it
is sometimes necessary to determine all transactions and positions with
respect to the commodity in which the trader is reportable in order to
more effectively detect and prevent manipulation of regulated markets
and products and to ensure the avoidance of systemic risk.\12\ Just as
it is critical that the LTRS permits staff to aggregate related
accounts to assess an individual trader's activities and potential
power in a market, so is it critical that staff be able to assess the
reportable trader's overall position in the same commodity in non-
reporting transactions in order to see the complete picture of the
reportable trader's positions in the commodity. This is particularly
important in light of the growing volume of trading on, and
participation in, the non-reporting markets, the close relationship
among the various products and markets, the increasing globalization of
the futures markets, and the growth of trading on electronic exchanges
and on foreign boards of trade.\13\
Regulation 18.05 explicitly requires that a trader that is
reportable because of futures or option positions in a futures or
option contract traded on a DCM or DTEF keep books and records and
provide to the Commission, upon request, pertinent information with
respect to positions and transactions in the underlying commodity. For
example, a reportable trader in the Natural Gas futures contract on the
New York Mercantile Exchange, Inc., (NYMEX) must keep books and records
and provide to the Commission, upon request, pertinent information with
respect to positions and transactions in
[[Page 34415]]
Natural Gas on all DCMs and DTEFs, in the commodity option, in the cash
commodity, its products and byproducts, and commercial activities that
the trader hedges in the commodity underlying the Natural Gas futures
contract. Information with respect to positions and transactions in the
virtually identical Natural Gas contracts on the
IntercontinentalExchange (ICE), an ECM, also is important to the
Commission's ability to conduct effective market surveillance of the
NYMEX Natural Gas contracts and to determine the degree of a trader's
exposure in both the NYMEX and ICE natural gas markets. Similarly, if a
trader is reportable because of futures or option positions in the
Light Sweet Crude Oil contract on the NYMEX, the trader's books and
records with respect to non-reporting positions and transactions in the
West Texas Intermediate (WTI) Light Sweet Crude Oil futures or option
contracts on ICE Futures,\14\ a foreign board of trade,\15\ are
relevant to effective surveillance and supervision of the reporting
NYMEX market.
The Act provides ample authority to require keeping books and
records and providing pertinent information with respect to non-
reporting transactions. Section 4i explicitly encompasses non-reporting
transactions on ``any other board of trade'' (such as FBOTs, ECMs
operating pursuant to Sections 2(h)(3)-(5) of the Act, and EBOTs
operating pursuant to Section 5d of the Act) and in the form of cash or
spot transactions, inventories, and purchase and sale commitments.
Further, Section 3(b) of the Act declares that the purpose of the Act
is to, among other things, deter and prevent price manipulation or any
other disruptions to market integrity and to ensure the avoidance of
systemic risk. Section 8a(5) of the Act authorizes the Commission to
promulgate such regulations as, in its judgment, are reasonably
necessary to accomplish any of the purposes of the Act. Making it
explicit that Regulation 18.05 requires the reportable trader to keep
books and records showing all details concerning non-reporting
transactions in the reportable commodity is reasonably necessary to
accomplish the purposes of Section 3(b) of the Act.
---------------------------------------------------------------------------
\12\ Sections 6(c), 6c, 6(d) and 9(a)(2) of the Act authorize
the Commission to bring enforcement actions against any person who
is manipulating or attempting to manipulate or has manipulated or
attempted to manipulate the market price of any commodity, in
interstate commerce, or for future delivery on or subject to the
rules of any registered entity.
\13\ For instance, since 1999, Commission staff, through foreign
terminal no-action letters, has allowed 18 FBOTs to make their
trading systems available by direct access to members and other
participants in the U.S. without requiring the FBOTs to register as
DCMs or DTEFs.
\14\ ICE Futures is a UK registered investment exchange which
permits direct access to its trading system from the U.S. pursuant
to a foreign terminal no-action letter issued by Commission staff.
CFTC Staff Letter No. 99-69 (November 12, 1999), as amended,
originally issued to the International Petroleum Exchange (IPE).
\15\ Section 1a of the Act defines the term board of trade as
any organized exchange or other trading facility without regard to
location.
---------------------------------------------------------------------------
Although non-reporting transactions themselves generally are not
subject to most regulatory provisions of the Act, the futures or option
transactions executed and maintained on a DCM or DTEF that result in a
reportable position are subject to such provisions and, pursuant to
Section 3(a) of the Act, are affected with a national public interest.
It is the purpose of the Act pursuant to Section 3(b) that the
Commission prevent price manipulation of all commodities traded on
these regulated markets. To accomplish this purpose, it is necessary
that the Commission have the ability to review all activities in
commodities traded on these markets, regardless of where the
transactions are executed. By taking a position on a regulated market,
a trader agrees to abide by the rules of the market and the Commission,
including prohibitions against manipulation. To enhance its ability to
detect and deter manipulation and other threats to market integrity,
the Commission requires persons holding reportable positions to
maintain books and records of transactions that could impact the
regulated market and related cash market, including non-reporting
transactions.\16\
---------------------------------------------------------------------------
\16\ As previously stated, traders who do not hold reportable
positions on reporting markets do not have obligations under
Regulation 18.05's recordkeeping and reporting requirements.
---------------------------------------------------------------------------
Commission staff has interpreted Regulation 18.05 to include
position and transaction data for non-reporting transactions and has
received such information in response to requests made pursuant to the
Regulation. Consistent with the Act and Commission practice, the
Commission is proposing to amend Regulation 18.05 to make explicit that
a trader with a reportable position must keep books and records showing
all details concerning all non-reporting transactions in the same
commodity and provide pertinent information to the Commission upon
request.
C. Amendments Related to Clarity and Completeness
The Commission notes two issues that arise in connection with the
Regulation 18.05 requirement that traders keep books and records
showing all details concerning ``commercial activities that the trader
hedges in the commodity underlying the futures contract in which the
trader is reportable.'' First, the phrase has led to some confusion.
Originally inserted into the paragraph as ``commercial activities that
the trader hedges in the futures commodity in which the trader is
reportable,'' its purpose was to require that, ``in addition to books
and records of positions or transactions in a cash commodity, a
reportable trader must also maintain records of commercial activities
which the trader hedges.'' \17\ Second, reportable positions can be
option positions, as well as futures positions, but it is not clear
that the current language also addresses commercial activities that the
trader hedges in the commodity underlying any option contract in which
the trader is reportable.
---------------------------------------------------------------------------
\17\ 46 FR 42463, 42466 (August 21, 1981).
---------------------------------------------------------------------------
The Commission proposes to amend the regulation to revert to the
original approach and include hedges in the option contract in which
the trader is reportable. By modifying the phrase to read ``commercial
activities that the trader hedges in the futures or option contract in
which the trader is reportable,'' Regulation 18.05 would capture
information with respect to hedges in other than the cash commodity,
its products or byproducts (i.e., a trader with a reportable position
in gold futures that is a hedge of a cash position in silver would be
required to comply with the Regulation 18.05 requirements with respect
to the silver position).
III. Related Matters
A. Cost Benefit Analysis
Section 15(a) of the Act requires the Commission to consider the
costs and benefits of its action before issuing a new regulation or
order under the Act. By its terms, Section 15(a) does not require the
Commission to quantify the costs and benefits of a new regulation or to
determine whether the benefits of the proposed regulation outweigh its
costs. Rather, Section 15(a) simply requires the Commission to
``consider the costs and benefits'' of its action.
Section 15(a) further specifies that the costs and benefits of the
proposed rule or order shall be evaluated in light of five broad areas
of market and public concern: (1) Protection of market participants and
the public; (2) efficiency, competitiveness, and financial integrity of
futures markets; (3) price discovery; (4) sound risk management
practices; and (5) other public interest considerations. Accordingly,
the Commission may, in its discretion, give greater weight to any one
of the five enumerated areas of concern and may, in its discretion,
determine that, notwithstanding its costs, a particular rule or order
is necessary or appropriate to protect the public interest or to
effectuate any of the
[[Page 34416]]
provisions or to accomplish any of the purposes of the Act.
The proposed amendments would make it explicit that persons holding
or controlling reportable positions on a reporting market must also
retain books and records and make available to the Commission upon
request any pertinent information with respect to non-reporting
transactions in the commodity in which the trader is reportable, and
make the regulation clearer and more complete with respect to hedging
activity. These amendments would enable the Commission to better carry
out its responsibilities under Section 3(b) of the Act by enhancing the
Commission's ability to deter and prevent price manipulation or any
other disruptions to the integrity of the regulated futures markets and
help to ensure the avoidance of systemic risk.
The Commission believes that the proposed amendments would address
the Section 15(a) enumerated areas of market and public concern in that
they would further protect market participants and the public, enhance
the financial integrity of futures markets, and promote sound risk
management practices. The Commission believes that the costs arising
from the proposed amendments would be of little or no consequence for
three reasons: (1) The amendments to Regulation 18.05 make explicit
existing Commission practice; (2) it is likely that the traders that
would be affected by the proposed amendments' requirements (traders who
have reportable positions) already keep books and records showing all
details concerning their non-reporting transactions as demonstrated by
the fact that Commission staff has received such information in
response to requests made pursuant to the Regulation; and (3) the
Commission anticipates that special calls for pertinent information
relating to non-reporting transactions would continue to be made on an
infrequent basis.
After considering these factors, the Commission has determined to
propose the revisions to Regulation 18.05 as discussed above and set
forth below. The Commission specifically invites public comment on its
application of the criteria contained in Section 15(a) of the Act.
Commenters are also invited to submit any quantifiable data that they
may have concerning the costs and benefits of the proposed rule with
their comment letters.
B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
requires federal agencies, in proposing rules, to consider the impact
of those rules on small businesses. The Commission has previously
determined that exchanges, futures commission merchants and large
traders are not ``small entities'' for the purposes of the RFA.\18\ The
requirements related to the proposed amendments fall on large traders.
Accordingly, the Chairman, on behalf of the Commission, hereby
certifies, pursuant to 5 U.S.C. 605(b), that the actions proposed to be
taken herein will not have a significant economic impact on a
substantial number of small entities.
---------------------------------------------------------------------------
\18\ 47 FR 18618, 18618-21 (April 30, 1982).
---------------------------------------------------------------------------
C. The Paperwork Reduction Act
When publishing proposed rules, the Paperwork Reduction Act (PRA)
\19\ imposes certain requirements on Federal agencies, including the
Commission, in connection with conducting or sponsoring any collection
of information as defined by the PRA. In compliance with the PRA, the
Commission through these proposed rule amendments solicits comments to:
(1) Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including the validity of the methodology and assumptions used; (2)
evaluate the accuracy of the agency's estimate of the burden of the
proposed collection of information including the validity of the
methodology and assumptions used; (3) enhance the quality, utility, and
clarity of the information to be collected; and (4) minimize the burden
of the collection on those who are to respond, including through the
use of appropriate automated, electronic, mechanical, or other
technological collection techniques or other forms of information
technology. The Commission has submitted the proposed rule amendments
and its associated information collection requirements to the Office of
Management and Budget (OMB). The proposed rule amendments are a part of
an approved collection of information. The estimated burden associated
with and reporting obligations for traders with reportable positions
(OMB Control No. 3038-0009) is as follows:
---------------------------------------------------------------------------
\19\ Public Law 104-13 (May 13, 1995).
---------------------------------------------------------------------------
Average Burden Hour Per Response: 1.5.
Number of Respondents: 6.
Frequency of Response: Upon special call.
Persons wishing to comment on the information which would be
required by the proposed rule amendments should contact the Desk
Officer, CFTC, Office of Management and Budget, Room 10202, NEOB,
Washington, DC 20503, 202.395.7340. Copies of the information
collection submission to OMB are available from the CFTC Clearance
Officer, 1155 21st Street, NW., Washington, DC 20581, 202.418.5160.
Copies of the OMB-approved information collection package associated
with the rulemaking may be obtained from the Desk Officer, Commodity
Futures Trading Commission, Office of Management and Budget, Room
10202, NEOB, Washington, DC 20503, 202.395.7340.
List of Subjects in 17 CFR Part 18
Commodity futures, Reporting and recordkeeping requirements.
In consideration of the foregoing, and pursuant to the authority
contained in the Act, and, in particular, sections 3, 4, 4a, 4c, 4g,
4i, 5, 5a and 8a of the Act, the Commission hereby proposes to amend
Chapter I of Title 17 of the Code of Federal Regulations as follows:
PART 18--REPORTS BY TRADERS
1. The authority citation for part 18 is revised to read as
follows:
Authority: 7 U.S.C. 2, 4, 5, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 12a
and 19; 5 U.S.C. 552 and 552(b), unless otherwise noted.
2. Revise Sec. 18.05 to read as follows:
Sec. 18.05 Maintenance of books and records.
Every trader who holds or controls a reportable futures or option
position shall keep books and records showing all details concerning
all positions and transactions in the commodity on all reporting
markets, over the counter and/or pursuant to Sections 2(d), 2(g) or
2(h)(1)-(2) of the Act or Part 35 of this chapter, on exempt commercial
markets operating pursuant to Sections 2(h)(3)-(5) of the Act, on
exempt boards of trade operating pursuant to Section 5d of the Act, and
on foreign boards of trade. Every such trader shall also keep books and
records showing all details concerning all positions and transactions
in the cash commodity, its products and byproducts, and all commercial
activities that the trader hedges in the futures or option contract in
which the trader is reportable. The trader shall upon request furnish
to the Commission any pertinent information concerning such positions,
transactions or activities in a form acceptable to the Commission.
Issued in Washington, DC, this 18th day of June, 2007, by the
Commission.
Eileen A. Donovan,
Acting Secretary of the Commission. 1
[FR Doc. E7-12045 Filed 6-21-07; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: June 27, 2007