Notice of Revision of Commission Policy Regarding the Listing of New Futures and Option Contracts by Foreign Boards of Trade That Have Received Staff No-Action Relief to Provide Direct Access to Their Automated Trading Systems From Locations in the United States, 19877-19878 [06-3733]
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Federal Register / Vol. 71, No. 74 / Tuesday, April 18, 2006 / Notices
COMMODITY FUTURES TRADING
COMMISSION
Notice of Revision of Commission
Policy Regarding the Listing of New
Futures and Option Contracts by
Foreign Boards of Trade That Have
Received Staff No-Action Relief to
Provide Direct Access to Their
Automated Trading Systems From
Locations in the United States
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
hsrobinson on PROD1PC68 with NOTICES
SUMMARY: The Commodity Futures
Trading Commission (Commission) is
revising its policy that permits foreign
boards of trade that provide direct
access to their automated trading
systems from locations in the U.S.
pursuant to a Commission staff noaction letter to list certain additional
futures and option contracts on the basis
of a one business day notification and
without obtaining supplemental noaction relief and, in its place,
establishing a ten business day advance
notification requirement.
EFFECTIVE DATE: The new notification
requirement is effective immediately.
FOR FURTHER INFORMATION CONTACT:
Duane C. Andresen, Special Counsel,
Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Center,
1155 21st Street, NW., Washington, DC
20581. Telephone: 202–418–5492. Email: dandresen@cftc.gov.
SUPPLEMENTARY INFORMATION: On June 2,
1999, the Commission issued an order
which, among other things, withdrew
proposed rules that would have
governed automated access to foreign
boards of trade from the U.S. (June 2
Order) 1. The June 2 Order also
instructed the Commission staff to begin
immediately processing no-action
requests from foreign boards of trade
seeking to place trading terminals in the
United States, and to issue responses
where appropriate, pursuant to the
general guidelines included in the Eurex
(DTB) no-action process,2 or other
1 Access to Automated Boards of Trade, 64 FR
32829 (June 18, 1999).
2 In February 1996, Commission staff issued noaction relief to Deutsche Terminborse (DTB), an
automated international futures and options
exchange headquartered in Frankfurt, Germany,
that permitted DTB, subject to certain terms and
conditions, to place computer terminals in the U.S.
offices of its members for principal trading. See
CFTC Interpretative Letter No. 96–28 (1996–1997
Transfer Binder) Comm. Fut. L. Rep. (CCH) para.
26,669 (Feb. 29. 1996). In June 1998, DTB merged
with the Swiss Options and Financial Futures
Exchange and DTB changed its name to Eurex
Deutschland.
VerDate Aug<31>2005
15:03 Apr 17, 2006
Jkt 208001
guidelines established by the
Commission.3 Pursuant to those
guidelines, foreign boards of trade were
issued staff no-action letters permitting
them, without obtaining contract market
designation, to place in the U.S.
electronic trading devices that provided
direct access to the boards of trade
(Foreign Terminal No-Action Letters).
Foreign boards of trade that received
Foreign Terminal No-Action Letters that
wished to list additional futures and
option contracts for trading through
their U.S.-located trading systems were
required to request in writing and
receive supplemental no-action relief
(Supplemental Relief) from Commission
staff prior to doing so.
On June 30, 2000, the Commission
issued the Statement of Policy of the
Commodity Futures Trading
Commission Regarding the Listing of
New Futures and Option Contracts by
Foreign Boards of Trade That Have
Received Staff No-Action Relief to Place
Electronic Trading Devices in the U.S.
(Statement of Policy).4 Pursuant to the
Statement of Policy, foreign boards of
trade that had received Foreign
Terminal No-Action Letters and that
wished to list additional futures and
option contracts for trading through
their U.S.-located trading systems were
no longer required to obtain
Supplemental Relief prior to doing so.
Instead, the foreign board of trade was
required to file the following with
Commission staff no later than the
business day preceding the initial listing
of such futures and option contracts: (1)
A copy of the initial terms and
conditions of the additional futures and
option contracts the foreign board of
trade intended to list for trading through
its U.S.-located electronic devices and
(2) a certification from the foreign board
of trade that it is in compliance with the
terms and conditions of the Foreign
Terminal No-Action Letter that it has
received and that the additional futures
and option contracts would be traded in
accordance with such terms and
conditions.5
The Commission is hereby rescinding
the Statement of Policy and revising the
advance notification requirement in
light of its experience since the issuance
of the Statement of Policy and in
recognition of the fact that the listing of
3 64
FR 32829, 32830 (June 18, 1999).
FR 41641 (July 6, 2000).
5 The Statement of Policy did not apply to futures
and option contracts that are covered by Section
2(a)(1)(B) of the Commodity Exchange Act (Act).
Foreign boards of trade would continue to be
required to seek and receive written supplemental
no-action relief from Commission staff prior to
offering such contracts through U.S.-located trading
systems.
4 65
PO 00000
Frm 00029
Fmt 4703
Sfmt 4703
19877
new products may raise previously
unidentified regulatory issues. For
example, certain foreign board of trade
contracts directly accessible in the U.S.
may be directly linked to a U.S.
designated contract market’s (DCM)
prices and thus may create a need for
enhanced market surveillance or
additional information sharing with the
foreign board of trade and/or its
regulator to address market integrity
issues with respect to the Commission’s
oversight of the DCM’s contracts. The
Statement of Policy, which permits
contracts to be listed for trading through
the U.S.-located trading system on a
one-business day notice-only basis, may
preclude ensuring that relevant
regulatory issues are addressed prior to
such listing and may undermine staff’s
ability to assess important surveillance
issues, among other things, that need to
be examined. Extending the advance
notification period from one to ten
business days would give Commission
staff the opportunity to review the terms
and conditions of proposed additional
contracts to address any regulatory
issues raised prior to the contract being
made available for trading through the
U.S.-located trading system.
Henceforth, foreign boards of trade
that have received Foreign Terminal NoAction Letters that wish to list
additional futures and option contracts
for trading through their U.S.-located
trading systems must notify the Division
of Market Oversight (Division) ten
business days prior to offering such
contracts.6 In its notification, the foreign
board of trade need only submit a copy
of the initial terms and conditions of the
additional contracts and a certification
that it is in compliance with the terms
and conditions of the Foreign Terminal
No-Action Letter that it has received
and that the additional futures and
option contracts would be traded in
accordance with such terms and
conditions. The foreign board of trade
can list the additional futures and
option contracts for trading ten business
days after the date of receipt by the
Commission of the notification, unless
Commission staff notifies the foreign
board of trade that additional time is
needed to determine if there is a need,
for example, for enhanced market
surveillance or additional information
sharing. Commission staff reviews of
proposed additional contracts for which
there may be a need to address such
6 Foreign boards of trade continue to be required
to seek and receive written supplemental no-action
relief from Commission staff prior to offering
through U.S.-located trading systems futures and
option contracts that are covered by Section
2(a)(1)(B) of the Act.
E:\FR\FM\18APN1.SGM
18APN1
19878
Federal Register / Vol. 71, No. 74 / Tuesday, April 18, 2006 / Notices
regulatory issues would be completed as
expeditiously as possible.
The trading of all contracts through
electronic trading devices that provide
access to foreign boards of trade from
within the U.S. continues to be subject
to the terms and conditions of the
Foreign Terminal No-Action Letter
issued to the particular foreign board of
trade. Included among those terms and
conditions is the requirement that the
foreign board of trade promptly provide
the Division with written notice of any
material change in the structure,
operation or regulation of the foreign
board of trade or its trading system.
Further, this notice does not alter the
analysis that Commission staff uses
when considering requests for Foreign
Terminal No-Action Letters, dictate the
result of that analysis, or alter the
authority of Commission staff to
condition, modify, suspend, terminate,
or otherwise restrict the no-action relief
that it issues.
Issued in Washington, DC, on April 14,
2006 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06–3733 Filed 4–17–06; 8:45 am]
FOR FURTHER INFORMATION CONTACT:
Jean
A. Webb, 202–418–5100.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06–3728 Filed 4–14–06; 10:35 am]
BILLING CODE 6351–01–M
COMMODITY FUTURES TRADING
COMMISSION
Sunshine Act Meetings
TIME AND DATE:
11 a.m., Friday, May 19,
2005.
1155 21st St., NW., Washington,
DC, 9th Floor Commission Conference
Room.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Surveillance
Matters.
FOR FURTHER INFORMATION CONTACT: Jean
A. Webb, 202–418–5100.
PLACE:
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06–3729 Filed 4–14–06; 10:35 am]
BILLING CODE 6351–01–M
COMMODITY FUTURES TRADING
COMMISSION
BILLING CODE 6351–01–P
COMMODITY FUTURES TRADING
COMMISSION
Sunshine Act Meetings
Sunshine Act Meetings
2006.
TIME AND DATE:
TIME AND DATE:
11 a.m., Friday, May 5,
2006.
1155 21st St., NW., Washington,
DC, 9th Floor Commission Conference
Room.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Surveillance
Matters.
FOR FURTHER INFORMATION CONTACT: Jean
A. Webb, 202–418–5100.
PLACE:
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06–3727 Filed 4–14–06; 10:35 am]
BILLING CODE 6351–01–M
11 a.m., Friday, May 26,
1155 21st St., NW., Washington,
DC, 9th Floor Commission Conference
Room.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Surveillance
Matters.
CONTACT PERSON FOR MORE INFORMATION:
Jean A. Webb, 202–418–5100.
PLACE:
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06–3730 Filed 4–14–06; 10:35 am]
BILLING CODE 6351–01–M
CORPORATION FOR NATIONAL AND
COMMUNITY SERVICE
COMMODITY FUTURES TRADING
COMMISSION
Information Collection; Submission for
OMB Review; Comment Request
Sunshine Act Meetings
2005.
Corporation for National and
Community Service.
ACTION: Notice.
1155 21st St., NW., Washington,
DC, 9th Floor Commission Conference
Room.
STATUS: Closed.
MATTERS TO BE CONSIDERED: Surveillance
Matters.
The Corporation for National
and Community Service (hereinafter the
‘‘Corporation’’), has submitted a public
information collection request (ICR)
entitled CNCS Disaster Response
Information Collection to the Office of
hsrobinson on PROD1PC68 with NOTICES
TIME AND DATE:
AGENCY:
11 a.m., Friday, May 12,
PLACE:
VerDate Aug<31>2005
15:03 Apr 17, 2006
Jkt 208001
SUMMARY:
PO 00000
Frm 00030
Fmt 4703
Sfmt 4703
Management and Budget (OMB) for
review and approval in accordance with
the Paperwork Reduction Act of 1995,
Public Law 104–13, (44 U.S.C. Chapter
35). Copies of this ICR, with applicable
supporting documentation, may be
obtained by calling the Corporation for
National and Community Service, Mr.
Hank Oltmann, (202) 606–6844 or by email: holtmann@cns.gov; or Mr. Nathan
Dietz, (202) 606–6663 or by e-mail:
Ndietz@cns.gov. Individuals who use a
telecommunications device for the deaf
(TTY–TDD) may call (202) 606–3472
between 8:30 a.m. and 5 p.m. Eastern
time, Monday through Friday.
Comments may be
submitted, identified by the title of the
information collection activity, to Office
of Information and Regulatory Affairs,
Attn: Ms. Rachel Potter, OMB Desk
Officer for the Corporation for National
and Community Service, by any of the
following two methods within 30 days
from the date of publication in this
Federal Register: (a) By fax to: (202)
395–6974, Attention: Ms. Rachel Potter,
OMB Desk Officer for the Corporation
for National and Community Service;
and (b) Electronically by e-mail to:
Rachel_F._Potter@omb.eop.gov.
ADDRESSES:
The OMB
is particularly interested in comments
which:
• Evaluate whether the proposed
collection of information is necessary
for the proper performance of the
functions of the Corporation, including
whether the information will have
practical utility;
• Evaluate the accuracy of the
Corporation’s estimate of the burden of
the proposed collection of information,
including the validity of the
methodology and assumptions used;
• Propose ways to enhance the
quality, utility and clarity of the
information to be collected; and
• Propose ways to minimize the
burden of the collection of information
on those who are to respond, including
the use of appropriate automated,
electronic, mechanical, or other
technological collection techniques or
other forms of information technology,
e.g., permitting electronic submissions
of responses.
SUPPLEMENTARY INFORMATION:
Comments
A 60-day public comment Notice,
regarding the CNCS Disaster Response
Information Collection, was published
in the Federal Register on January 23,
2006. This comment period ended on
March 24, 2006. No public comments
were received from this notice.
E:\FR\FM\18APN1.SGM
18APN1
]]>Agencies
[Federal Register Volume 71, Number 74 (Tuesday, April 18, 2006)]
[Notices]
[Pages 19877-19878]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 06-3733]
[[Page 19877]]
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COMMODITY FUTURES TRADING COMMISSION
Notice of Revision of Commission Policy Regarding the Listing of
New Futures and Option Contracts by Foreign Boards of Trade That Have
Received Staff No-Action Relief to Provide Direct Access to Their
Automated Trading Systems From Locations in the United States
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (Commission) is
revising its policy that permits foreign boards of trade that provide
direct access to their automated trading systems from locations in the
U.S. pursuant to a Commission staff no-action letter to list certain
additional futures and option contracts on the basis of a one business
day notification and without obtaining supplemental no-action relief
and, in its place, establishing a ten business day advance notification
requirement.
EFFECTIVE DATE: The new notification requirement is effective
immediately.
FOR FURTHER INFORMATION CONTACT: Duane C. Andresen, Special Counsel,
Division of Market Oversight, Commodity Futures Trading Commission,
Three Lafayette Center, 1155 21st Street, NW., Washington, DC 20581.
Telephone: 202-418-5492. E-mail: dandresen@cftc.gov.
SUPPLEMENTARY INFORMATION: On June 2, 1999, the Commission issued an
order which, among other things, withdrew proposed rules that would
have governed automated access to foreign boards of trade from the U.S.
(June 2 Order) \1\. The June 2 Order also instructed the Commission
staff to begin immediately processing no-action requests from foreign
boards of trade seeking to place trading terminals in the United
States, and to issue responses where appropriate, pursuant to the
general guidelines included in the Eurex (DTB) no-action process,\2\ or
other guidelines established by the Commission.\3\ Pursuant to those
guidelines, foreign boards of trade were issued staff no-action letters
permitting them, without obtaining contract market designation, to
place in the U.S. electronic trading devices that provided direct
access to the boards of trade (Foreign Terminal No-Action Letters).
Foreign boards of trade that received Foreign Terminal No-Action
Letters that wished to list additional futures and option contracts for
trading through their U.S.-located trading systems were required to
request in writing and receive supplemental no-action relief
(Supplemental Relief) from Commission staff prior to doing so.
---------------------------------------------------------------------------
\1\ Access to Automated Boards of Trade, 64 FR 32829 (June 18,
1999).
\2\ In February 1996, Commission staff issued no-action relief
to Deutsche Terminborse (DTB), an automated international futures
and options exchange headquartered in Frankfurt, Germany, that
permitted DTB, subject to certain terms and conditions, to place
computer terminals in the U.S. offices of its members for principal
trading. See CFTC Interpretative Letter No. 96-28 (1996-1997
Transfer Binder) Comm. Fut. L. Rep. (CCH) para. 26,669 (Feb. 29.
1996). In June 1998, DTB merged with the Swiss Options and Financial
Futures Exchange and DTB changed its name to Eurex Deutschland.
\3\ 64 FR 32829, 32830 (June 18, 1999).
---------------------------------------------------------------------------
On June 30, 2000, the Commission issued the Statement of Policy of
the Commodity Futures Trading Commission Regarding the Listing of New
Futures and Option Contracts by Foreign Boards of Trade That Have
Received Staff No-Action Relief to Place Electronic Trading Devices in
the U.S. (Statement of Policy).\4\ Pursuant to the Statement of Policy,
foreign boards of trade that had received Foreign Terminal No-Action
Letters and that wished to list additional futures and option contracts
for trading through their U.S.-located trading systems were no longer
required to obtain Supplemental Relief prior to doing so. Instead, the
foreign board of trade was required to file the following with
Commission staff no later than the business day preceding the initial
listing of such futures and option contracts: (1) A copy of the initial
terms and conditions of the additional futures and option contracts the
foreign board of trade intended to list for trading through its U.S.-
located electronic devices and (2) a certification from the foreign
board of trade that it is in compliance with the terms and conditions
of the Foreign Terminal No-Action Letter that it has received and that
the additional futures and option contracts would be traded in
accordance with such terms and conditions.\5\
---------------------------------------------------------------------------
\4\ 65 FR 41641 (July 6, 2000).
\5\ The Statement of Policy did not apply to futures and option
contracts that are covered by Section 2(a)(1)(B) of the Commodity
Exchange Act (Act). Foreign boards of trade would continue to be
required to seek and receive written supplemental no-action relief
from Commission staff prior to offering such contracts through U.S.-
located trading systems.
---------------------------------------------------------------------------
The Commission is hereby rescinding the Statement of Policy and
revising the advance notification requirement in light of its
experience since the issuance of the Statement of Policy and in
recognition of the fact that the listing of new products may raise
previously unidentified regulatory issues. For example, certain foreign
board of trade contracts directly accessible in the U.S. may be
directly linked to a U.S. designated contract market's (DCM) prices and
thus may create a need for enhanced market surveillance or additional
information sharing with the foreign board of trade and/or its
regulator to address market integrity issues with respect to the
Commission's oversight of the DCM's contracts. The Statement of Policy,
which permits contracts to be listed for trading through the U.S.-
located trading system on a one-business day notice-only basis, may
preclude ensuring that relevant regulatory issues are addressed prior
to such listing and may undermine staff's ability to assess important
surveillance issues, among other things, that need to be examined.
Extending the advance notification period from one to ten business days
would give Commission staff the opportunity to review the terms and
conditions of proposed additional contracts to address any regulatory
issues raised prior to the contract being made available for trading
through the U.S.-located trading system.
Henceforth, foreign boards of trade that have received Foreign
Terminal No-Action Letters that wish to list additional futures and
option contracts for trading through their U.S.-located trading systems
must notify the Division of Market Oversight (Division) ten business
days prior to offering such contracts.\6\ In its notification, the
foreign board of trade need only submit a copy of the initial terms and
conditions of the additional contracts and a certification that it is
in compliance with the terms and conditions of the Foreign Terminal No-
Action Letter that it has received and that the additional futures and
option contracts would be traded in accordance with such terms and
conditions. The foreign board of trade can list the additional futures
and option contracts for trading ten business days after the date of
receipt by the Commission of the notification, unless Commission staff
notifies the foreign board of trade that additional time is needed to
determine if there is a need, for example, for enhanced market
surveillance or additional information sharing. Commission staff
reviews of proposed additional contracts for which there may be a need
to address such
[[Page 19878]]
regulatory issues would be completed as expeditiously as possible.
---------------------------------------------------------------------------
\6\ Foreign boards of trade continue to be required to seek and
receive written supplemental no-action relief from Commission staff
prior to offering through U.S.-located trading systems futures and
option contracts that are covered by Section 2(a)(1)(B) of the Act.
---------------------------------------------------------------------------
The trading of all contracts through electronic trading devices
that provide access to foreign boards of trade from within the U.S.
continues to be subject to the terms and conditions of the Foreign
Terminal No-Action Letter issued to the particular foreign board of
trade. Included among those terms and conditions is the requirement
that the foreign board of trade promptly provide the Division with
written notice of any material change in the structure, operation or
regulation of the foreign board of trade or its trading system.
Further, this notice does not alter the analysis that Commission staff
uses when considering requests for Foreign Terminal No-Action Letters,
dictate the result of that analysis, or alter the authority of
Commission staff to condition, modify, suspend, terminate, or otherwise
restrict the no-action relief that it issues.
Issued in Washington, DC, on April 14, 2006 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 06-3733 Filed 4-17-06; 8:45 am]
BILLING CODE 6351-01-P
