71fr43681

Commodity Futures Trading Commission 17 CFR Part 38 Conflicts of Interest in Self-Regulation and Self-Regulatory Organizations[Federal Register: August 2, 2006 (Volume 71, Number 148)]

[Proposed Rules]

[Page 43681]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr02au06-20]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 38

RIN 3038-AC28

Conflicts of Interest in Self-Regulation and Self-Regulatory

Organizations

AGENCY: Commodity Futures Trading Commission (``Commission'').

ACTION: Extension of comment period.

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SUMMARY: On July 7, 2006, the Commission published proposed Acceptable

Practices for section 5(d)(15) of the Commodity Exchange Act

(``Act'').\1\ Comments on the proposal were originally due by August 7,

2006. Now, at the request of interested parties, the Commission is

extending the comment period to September 7, 2006.

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\1\ 71 FR 38740 (July 7, 2006).

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DATES: Comments must be received by September 7, 2006.

ADDRESSES: Written comments should be sent to Eileen A. Donovan, Acting

Secretary, Commodity Futures Trading Commission, Three Lafayette

Centre, 1155 21st Street, NW., Washington, DC 20581. Comments may also

be submitted via E-mail at [email protected] ``Regulatory

Governance'' must be in the subject field of responses submitted via E-

mail, and clearly indicated in written submissions. Comments may also

be submitted to the Federal eRulemaking Portal: http://frwebgate.access.gpo.gov/cgi-bin/leaving.cgi?from=leavingFR.html&log=linklog&to=http://www.regulations.gov

.

FOR FURTHER INFORMATION CONTACT: Rachel F. Berdansky, Acting Deputy

Director for Market Compliance, (202) 418-5429; or Sebastian Pujol

Schott, Special Counsel, (202) 418-5641. Division of Market Oversight,

Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st

Street, NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On July 7, 2006, the Commission published

and sought public comment on proposed Acceptable Practices for Section

5(d)(15) of the Act (``Core Principle 15''). The proposed Acceptable

Practices would provide designated contract markets (``DCMs'') with a

safe harbor for compliance with selected aspects of Core Principle 15's

requirement that they minimize conflicts of interest in their decision-

making. The Commission's proposal contains four parts. First, the Board

Composition Acceptable Practice proposes that DCMs minimize potential

conflicts of interest by maintaining governing boards composed of at

least fifty percent ``public'' directors. Second, the proposed

Regulatory Oversight Committee Acceptable Practice calls upon DCMs to

establish board-level Regulatory Oversight Committees, composed solely

of public directors, to oversee regulatory functions. Third, the

Disciplinary Panel Acceptable Practice proposes that each disciplinary

panel at all DCMs include at least one public participant, and that no

panel be dominated by any group or class of exchange members. Finally,

the proposed Acceptable Practices provide a definition of ``public''

for DCM directors and for members of disciplinary panels.

By letters dated July 14 and July 17, 2006, the Chicago Board of

Trade (``CBOT'') and Chicago Mercantile Exchange (``CME''),

respectively, requested that the original comment period be extended.

CBOT requested an extension to at least September 6, and CME requested

an extension to at least September 7. Recognizing the significance of

the issues raised in the proposed Acceptable Practices, and to

encourage the submission of meaningful comments, the Commission has

decided to grant the requests. The comment period for the Commission's

proposed Acceptable Practices for Section 5(d)(15) of the Act is hereby

extended to September 7, 2006.

Issued in Washington, DC, on July 28, 2006, by the Commission.

Maria C. Alvarez-Kouns,

Paralegal Specialist.

[FR Doc. E6-12448 Filed 8-1-06; 8:45 am]

BILLING CODE 6351-01-P

Updated August 04, 2006

Last Updated: June 26, 2007