Self-Regulatory Organization; National Futures Association; Notice of Filing and Immediate Effectiveness of a Proposed Amendment Relating to the Interpretive Notice to Compliance Rule 2-9 Regarding FCM and IB AML Program Requirements, 77431-77432 [E6-22004]
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<![CDATA[
Federal Register / Vol. 71, No. 247 / Tuesday, December 26, 2006 / Notices
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of such filing also will be
available for inspection and copying at
the principal office of NASD. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File
Number SR–NASD–2006–134 and
should be submitted on or before
January 16, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.15
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22007 Filed 12–22–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54956; File No. SR–NFA–
2006–03]
Self-Regulatory Organization; National
Futures Association; Notice of Filing
and Immediate Effectiveness of a
Proposed Amendment Relating to the
Interpretive Notice to Compliance Rule
2–9 Regarding FCM and IB AML
Program Requirements
sroberts on PROD1PC70 with NOTICES
December 18, 2006.
Pursuant to Section 19(b)(7) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–7 under the
Act,2 notice is hereby given that on
November 27, 2006, National Futures
Association (‘‘NFA’’) filed with the
Securities and Exchange Commission
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change described in Items I, II, and
III below, which Items have been
prepared by NFA. The Commission is
publishing this notice to solicit
15 17
CFR 200.30–3(a)(12).
U.S.C. 78s(b)(7).
2 17 CFR 240.19b–7.
1 15
VerDate Aug<31>2005
16:15 Dec 22, 2006
Jkt 211001
comments on the proposed rule change
from interested persons. In addition, on
November 6, 2006, NFA filed the
proposed rule change with the
Commodity Futures Trading
Commission (‘‘CFTC’’). The CFTC
approved the proposed rule change on
November 16, 2006.3
I. Self-Regulatory Organization’s
Description of the Proposed Rule
Change
Section 15A(k) of the Act 4 makes
NFA a national securities association for
the limited purpose of regulating the
activities of NFA members (‘‘Members’’)
who are registered as brokers or dealers
in security futures products under
Section 15(b)(11) of the Act.5 NFA’s
Interpretive Notice entitled
‘‘Compliance Rule 2–9: FCM and IB
Anti-Money Laundering Program’’
(‘‘Interpretive Notice’’) applies to all
futures commission merchant (‘‘FCM’’)
and introducing broker (‘‘IB’’) Members
of NFA, including Members registered
under Section 15(b)(11).
The text of the proposed rule change
is available on NFA’s Web site (https://
www.nfa.futures.org), at the NFA’s
principal office, and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
NFA has prepared statements
concerning the purpose of, and basis for,
the proposed rule change, burdens on
competition, and comments received
from members, participants, and others.
The text of these statements may be
examined at the places specified in Item
IV below. NFA has prepared summaries,
set forth in Sections A, B, and C below,
of the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
Since NFA adopted its Interpretive
Notice to NFA Compliance Rule 2–9:
FCM and IB Anti-Money Laundering
Program in early 2002, there have been
a number of additional anti-money
laundering requirements applicable to
NFA FCM and IB Members.6 The
3 See Letter from Eileen Donovan, Acting
Secretary, CFTC, to Thomas W. Sexton, III, Esq.,
General Counsel, NFA (Nov. 16, 2006) (‘‘Letter’’).
4 15 U.S.C. 78o–3(k).
5 15 U.S.C. 78o(b)(11).
6 See, e.g., Treasury Department Rule 31 CFR
103.123 governing Customer Identification
PO 00000
Frm 00066
Fmt 4703
Sfmt 4703
77431
proposed rule change would amend the
Interpretive Notice to include all
requirements currently applicable to
FCMs and IBs.
The revised Interpretive Notice
includes changes in the following areas:
• The addition of Customer
Identification Program requirements and
guidance issued on these
requirements; 7
• The deletion of the Customer
Identification and Verification section
because it was replaced with the
Customer Identification Program
requirements; 8
• The addition of Suspicious Activity
Reporting requirements and guidance
that was issued regarding these
requirements; 9
• The addition of Information
Request requirements and guidance
with which FCMs are required to
comply. This section includes the
requirement that FCMs designate a
point of contact for these requests and
that any changes to the point of contact
information be immediately reported to
NFA; 10
• The addition of the Private Banking
and Correspondent Account
requirements and the guidance that was
issued regarding these requirements; 11
• A revision to the independent audit
function requirement that would permit
FCMs and IBs that do only proprietary
business or that are inactive to conduct
their independent audit on a 2-year,
rather than 1-year, cycle; 12 and
• A relocation of the Allocation of
Compliance Program Responsibilities
section.13
2. Statutory Basis
The rule change is authorized by, and
consistent with, Section 15A(k) of the
Act.14
B. Self-Regulatory Organization’s
Statement on Burden on Competition
In the filing, NFA stated that it
believes that the rule change will not
Programs, discussed in Section A of the revised
Interpretive Notice.
7 See Section A of the revised Interpretive Notice.
8 Id.
9 See Section B of the revised Interpretive Notice.
10 See Section C of the revised Interpretive Notice.
11 See Section D of the revised Interpretive
Notice.
12 This change is consistent with a similar NASD
amendment made earlier this year. See the
‘‘Independent Audit Function’’ Section of the
revised Interpretive Notice.
13 This information was previously included in
the ‘‘Customer Identification and Verification’’
Section of the 2002 Interpretive Notice. Because the
requirements of this section apply to other program
requirements, NFA believes it is appropriate to set
it out in a separate section. See the ‘‘Allocation of
Compliance Program Responsibilities’’ Section of
the revised Interpretive Notice.
14 15 U.S.C. 78o–3(k).
E:\FR\FM\26DEN1.SGM
26DEN1
77432
Federal Register / Vol. 71, No. 247 / Tuesday, December 26, 2006 / Notices
impose any burden on competition that
is not necessary or appropriate in
furtherance of the purposes of the Act
and the Commodities Exchange Act.
NFA further stated that the proposed
rule change primarily updates the
Interpretive Notice to include the
requirements imposed by CFTC and
Treasury Department rulemakings.
C. Self-Regulatory Organization’s
Statement of Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
NFA worked with the Futures
Industry Association, National
Introducing Brokers Association,
Financial Crimes Enforcement Network
(‘‘FinCEN’’) and the CFTC in developing
the rule change. NFA did not solicit or
receive comment concerning the
proposed rule change.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
The proposed rule change became
effective on November 16, 2006, upon
approval by the CFTC.15 Within 60 days
of the date of effectiveness of the
proposed rule change, the Commission,
after consultation with the CFTC, may
summarily abrogate the proposed rule
change and require that the proposed
rule change be refilled in accordance
with the provisions of Section 19(b)(1)
of the Act.16
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
sroberts on PROD1PC70 with NOTICES
Electronic Comments
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an e-mail to rulecomments@sec.gov. Please include File
Number SR–NFA–2006–03 on the
subject line.
Paper Comments
• Send paper comments in triplicate
to Nancy M. Morris, Secretary,
Securities and Exchange Commission,
100 F Street, NE., Washington, DC
20549–1090.
All submissions should refer to File
Number SR–NFA–2006–03. This file
number should be included on the
subject line if e-mail is used. To help the
Letter, supra, note 3.
U.S.C. 78s(b)(1).
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro/shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for inspection and copying in
the Commission’s Public Reference
Room. Copies of the filing also will be
available for inspection and copying at
the principal office of the NFA. All
comments received will be posted
without change; the Commission does
not edit personal identifying
information from submissions. You
should submit only information that
you wish to make available publicly. All
submissions should refer to File number
SR–NFA–2006–03 and should be
submitted on or before January 16, 2007.
For the Commission, by the Division of
Market Regulation, pursuant to delegated
authority.17
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6–22004 Filed 12–22–06; 8:45 am]
BILLING CODE 8011–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–54944; File No. SR–NYSE–
2006–69]
Self-Regulatory Organizations; New
York Stock Exchange LLC; Order
Granting Accelerated Approval to
Proposed Rule Change and
Amendment No. 1 Thereto Relating to
the Listing and Trading of ExchangeTraded Notes of Barclays Bank PLC
Linked to the Performance of the MSCI
India Equities Index
December 15, 2006.
I. Introduction
On August 24, 2006, the New York
Stock Exchange LLC (‘‘NYSE’’ or
‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’),1 and Rule 19b–4
17 17
16 15
1 15
16:15 Dec 22, 2006
Jkt 211001
II. Description of the Proposal
Under Section 703.19 of the Listed
Company Manual (‘‘Manual’’), the
Exchange may, subject to Commission
approval of a submission pursuant to
Section 19(b) of the Act, approve for
listing and trading securities not
otherwise covered by the criteria of
Sections 1 and 7 of the Manual,
provided the issue is suited for auction
market trading. Accordingly, the
Exchange proposes to list and trade,
under Section 703.19 of the Manual, the
Notes, which are linked to the
performance of the Index.6
In its proposal, the Exchange
described the structure and features of
the Notes, including early redemption
and default provisions, as well as the
underlying index, applicable trading
rules and surveillance procedures. Key
aspects of the proposal are noted below.
The Notes
15 See
VerDate Aug<31>2005
thereunder,2 a proposed rule change to
list and trade exchange-traded notes
(‘‘Notes’’) of Barclays Bank PLC
(‘‘Barclays’’) linked to the performance
of the MSCI India Total Return IndexSM
(‘‘Index’’). On November 8, 2006, the
Exchange submitted Amendment
No. 1.3 The proposed rule change, as
amended, was published for comment
in the Federal Register on November 28,
2006 for a 15-day comment period.4 The
Commission received one comment
regarding the proposal.5 This order
approves the proposed rule change, as
amended, on an accelerated basis.
PO 00000
CFR 200.30–3(a)(75).
U.S.C. 78s(b)(1).
Frm 00067
Fmt 4703
Sfmt 4703
The Notes are a series of debt
securities of Barclays that provide for a
cash payment at maturity or upon
earlier redemption at the holder’s option
based on the performance of the Index,
subject to applicable fees and expenses.
The original issue price of each Note
will be $50. The Notes will trade on the
Exchange’s equity trading floor, and the
Exchange’s existing equity trading rules
will apply to trading in the Notes.
Holders of the Notes will not receive
any interest payments from the Notes,
and the Notes will not have a minimum
principal amount that will be repaid.
Accordingly, payment on the Notes
prior to or at maturity may be less than
the original issue price of the Notes. The
2 17
CFR 240.19b–4.
No. 1 replaced and superseded the
Exchange’s original submission in its entirety.
4 See Securities Exchange Act Release No. 54800
(November 21, 2006), 71 FR 68864.
5 See letter from Claire P. McGrath, Senior Vice
President and General Counsel, American Stock
Exchange LLC (‘‘Amex’’), to Nancy M. Morris,
Secretary, Commission, dated December 8, 2006.
6 Barclays intends to issue the Notes under the
name ‘‘iPathSM Exchange-Traded Notes.’’
3 Amendment
E:\FR\FM\26DEN1.SGM
26DEN1
]]>Agencies
[Federal Register Volume 71, Number 247 (Tuesday, December 26, 2006)]
[Notices]
[Pages 77431-77432]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-22004]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-54956; File No. SR-NFA-2006-03]
Self-Regulatory Organization; National Futures Association;
Notice of Filing and Immediate Effectiveness of a Proposed Amendment
Relating to the Interpretive Notice to Compliance Rule 2-9 Regarding
FCM and IB AML Program Requirements
December 18, 2006.
Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given
that on November 27, 2006, National Futures Association (``NFA'') filed
with the Securities and Exchange Commission (``SEC'' or ``Commission'')
the proposed rule change described in Items I, II, and III below, which
Items have been prepared by NFA. The Commission is publishing this
notice to solicit comments on the proposed rule change from interested
persons. In addition, on November 6, 2006, NFA filed the proposed rule
change with the Commodity Futures Trading Commission (``CFTC''). The
CFTC approved the proposed rule change on November 16, 2006.\3\
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(7).
\2\ 17 CFR 240.19b-7.
\3\ See Letter from Eileen Donovan, Acting Secretary, CFTC, to
Thomas W. Sexton, III, Esq., General Counsel, NFA (Nov. 16, 2006)
(``Letter'').
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Description of the Proposed Rule
Change
Section 15A(k) of the Act \4\ makes NFA a national securities
association for the limited purpose of regulating the activities of NFA
members (``Members'') who are registered as brokers or dealers in
security futures products under Section 15(b)(11) of the Act.\5\ NFA's
Interpretive Notice entitled ``Compliance Rule 2-9: FCM and IB Anti-
Money Laundering Program'' (``Interpretive Notice'') applies to all
futures commission merchant (``FCM'') and introducing broker (``IB'')
Members of NFA, including Members registered under Section 15(b)(11).
---------------------------------------------------------------------------
\4\ 15 U.S.C. 78o-3(k).
\5\ 15 U.S.C. 78o(b)(11).
---------------------------------------------------------------------------
The text of the proposed rule change is available on NFA's Web site
(https://www.nfa.futures.org), at the NFA's principal office, and at the
Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, NFA has prepared statements
concerning the purpose of, and basis for, the proposed rule change,
burdens on competition, and comments received from members,
participants, and others. The text of these statements may be examined
at the places specified in Item IV below. NFA has prepared summaries,
set forth in Sections A, B, and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
Since NFA adopted its Interpretive Notice to NFA Compliance Rule 2-
9: FCM and IB Anti-Money Laundering Program in early 2002, there have
been a number of additional anti-money laundering requirements
applicable to NFA FCM and IB Members.\6\ The proposed rule change would
amend the Interpretive Notice to include all requirements currently
applicable to FCMs and IBs.
---------------------------------------------------------------------------
\6\ See, e.g., Treasury Department Rule 31 CFR 103.123 governing
Customer Identification Programs, discussed in Section A of the
revised Interpretive Notice.
---------------------------------------------------------------------------
The revised Interpretive Notice includes changes in the following
areas:
The addition of Customer Identification Program
requirements and guidance issued on these requirements; \7\
---------------------------------------------------------------------------
\7\ See Section A of the revised Interpretive Notice.
---------------------------------------------------------------------------
The deletion of the Customer Identification and
Verification section because it was replaced with the Customer
Identification Program requirements; \8\
---------------------------------------------------------------------------
\8\ Id.
---------------------------------------------------------------------------
The addition of Suspicious Activity Reporting requirements
and guidance that was issued regarding these requirements; \9\
---------------------------------------------------------------------------
\9\ See Section B of the revised Interpretive Notice.
---------------------------------------------------------------------------
The addition of Information Request requirements and
guidance with which FCMs are required to comply. This section includes
the requirement that FCMs designate a point of contact for these
requests and that any changes to the point of contact information be
immediately reported to NFA; \10\
---------------------------------------------------------------------------
\10\ See Section C of the revised Interpretive Notice.
---------------------------------------------------------------------------
The addition of the Private Banking and Correspondent
Account requirements and the guidance that was issued regarding these
requirements; \11\
---------------------------------------------------------------------------
\11\ See Section D of the revised Interpretive Notice.
---------------------------------------------------------------------------
A revision to the independent audit function requirement
that would permit FCMs and IBs that do only proprietary business or
that are inactive to conduct their independent audit on a 2-year,
rather than 1-year, cycle; \12\ and
---------------------------------------------------------------------------
\12\ This change is consistent with a similar NASD amendment
made earlier this year. See the ``Independent Audit Function''
Section of the revised Interpretive Notice.
---------------------------------------------------------------------------
A relocation of the Allocation of Compliance Program
Responsibilities section.\13\
---------------------------------------------------------------------------
\13\ This information was previously included in the ``Customer
Identification and Verification'' Section of the 2002 Interpretive
Notice. Because the requirements of this section apply to other
program requirements, NFA believes it is appropriate to set it out
in a separate section. See the ``Allocation of Compliance Program
Responsibilities'' Section of the revised Interpretive Notice.
---------------------------------------------------------------------------
2. Statutory Basis
The rule change is authorized by, and consistent with, Section
15A(k) of the Act.\14\
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78o-3(k).
---------------------------------------------------------------------------
B. Self-Regulatory Organization's Statement on Burden on Competition
In the filing, NFA stated that it believes that the rule change
will not
[[Page 77432]]
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act and the Commodities Exchange
Act. NFA further stated that the proposed rule change primarily updates
the Interpretive Notice to include the requirements imposed by CFTC and
Treasury Department rulemakings.
C. Self-Regulatory Organization's Statement of Comments on the Proposed
Rule Change Received From Members, Participants, or Others
NFA worked with the Futures Industry Association, National
Introducing Brokers Association, Financial Crimes Enforcement Network
(``FinCEN'') and the CFTC in developing the rule change. NFA did not
solicit or receive comment concerning the proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The proposed rule change became effective on November 16, 2006,
upon approval by the CFTC.\15\ Within 60 days of the date of
effectiveness of the proposed rule change, the Commission, after
consultation with the CFTC, may summarily abrogate the proposed rule
change and require that the proposed rule change be refilled in
accordance with the provisions of Section 19(b)(1) of the Act.\16\
---------------------------------------------------------------------------
\15\ See Letter, supra, note 3.
\16\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://
www.sec.gov/rules/sro.shtml); or
Send an e-mail to rule-comments@sec.gov. Please include
File Number SR-NFA-2006-03 on the subject line.
Paper Comments
Send paper comments in triplicate to Nancy M. Morris,
Secretary, Securities and Exchange Commission, 100 F Street, NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-NFA-2006-03. This file
number should be included on the subject line if e-mail is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro/
shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for inspection and
copying in the Commission's Public Reference Room. Copies of the filing
also will be available for inspection and copying at the principal
office of the NFA. All comments received will be posted without change;
the Commission does not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly. All submissions should refer to File number SR-NFA-
2006-03 and should be submitted on or before January 16, 2007.
---------------------------------------------------------------------------
\17\ 17 CFR 200.30-3(a)(75).
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\17\
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E6-22004 Filed 12-22-06; 8:45 am]
BILLING CODE 8011-01-P
