Revision of Federal Speculative Position Limits, 32260-32261 [E8-12728]
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dwashington3 on PRODPC61 with PROPOSALS
32260
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Proposed Rules
secure.commentworks.com/ftcmarketmanipulationANPR/)(and
following the instructions on the webbased form). To ensure that the
Commission considers an electronic
comment, you must file it on the webbased form at the weblink (https://
secure.commentworks.com/ftcmarketmanipulationANPR/). If this
notice appears at https://
www.regulations.gov, you may also file
an electronic comment through that
website. The Commission will consider
all comments that regulations.gov
forwards to it. You may also visit the
FTC website at (https://www.ftc.gov/opa/
index.shtml)to read the ANPR and the
news release describing it.
A comment filed in paper form
should include the ‘‘Market
Manipulation Rulemaking, P082900’’
reference both in the text and on the
envelope, and should be mailed to the
following address: Federal Trade
Commission, Market Manipulation
Rulemaking, P.O. Box 2846, Fairfax, VA
22031-0846. This address does not
accept courier or overnight deliveries.
Courier or overnight deliveries should
be delivered to: Federal Trade
Commission/Office of the Secretary,
Room H-135 (Annex G), 600
Pennsylvania Avenue, NW, Washington,
DC 20580.
The FTC Act and other laws the
Commission administers permit the
collection of public comments to
consider and use in this proceeding as
appropriate. The Commission will
consider all timely and responsive
public comments that it receives,
whether filed in paper or electronic
form. Comments received will be
available to the public on the FTC
website, to the extent practicable, at
https://www.ftc.gov. As a matter of
discretion, the FTC makes every effort to
remove home contact information for
individuals from the public comments it
receives before placing those comments
on the FTC website. More information,
including routine uses permitted by the
Privacy Act, may be found in the FTC’s
privacy policy, at (https://www.ftc.gov/
ftc/privacy.htm).
FOR FURTHER INFORMATION CONTACT:
James Mongoven, Deputy Assistant
Director of Policy & Coordination,
Bureau of Competition, Federal Trade
Commission, Market Manipulation
Rulemaking, P.O. Box 2846, Fairfax, VA
22031-0846, (202) 326-3772.
SUPPLEMENTARY INFORMATION: On May 7,
2008, the Commission published an
ANPR pursuant to the authority granted
to it in Section 811 of the EISA to
promulgate regulations prohibiting
‘‘market manipulation’’ in the
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11:59 Jun 05, 2008
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petroleum industry. In that Notice, the
Commission solicited comment on a
variety of topics including the scope of
a proposed Rule; the impact of other
agencies’ extant rules against market
manipulation on a proposed Rule; and
the effectiveness of monetary penalties
in curbing behavior proscribed by a
proposed Rule. The ANPR stated that
the period for submitting initial
comments would close on June 6, 2008.
On May 19, 2008, the Commission
received a letter from counsel for the
American Petroleum Institute (‘‘API’’)
requesting that the Commission extend
the comment deadline in the ANPR
proceeding for an additional 60 days,
resulting in a 90-day comment period.
In its request, API advances three
arguments in support of an extension of
the comment period. First, API argues
that additional time is needed to
canvass its more than 400 members and
to ‘‘consolidate and present that
information for the Commission’s
consideration.’’ Second, API contends
that the extension is necessary to ensure
that there is ‘‘sufficient time for
thoughtful deliberation’’ about the
‘‘many novel and complex issues’’
addressed in the ANPR. Third, API
opines that ‘‘defining ‘manipulation’ is
inherently difficult and not within the
Commission’s traditional antitrust or
consumer protection experience,’’ and
thus providing additional time to
commenters will yield more carefully
considered comments, which will be
beneficial to the Commission as it
proceeds.
The Commission is sympathetic to the
concerns raised by API. The
Commission, however, is not persuaded
that a full 60-day extension—which
would triple the time allocated by the
Commission for the receipt of
comments—is necessary to ensure that
interested parties have an adequate
opportunity to prepare and submit
thoughtful responses at this stage in the
proceeding. The Commission believes
that a 15-day extension of the initial 30day comment period should be
sufficient to enable API and all other
commenters to finalize and submit
comments in response to the ANPR
while avoiding unnecessary delay.
Further, in the event that the
Commission determines to issue a
Notice of Proposed Rulemaking in this
proceeding, interested parties will be
afforded an additional period of time in
which to submit comments in response
to a proposed Rule. Accordingly, the
Commission has determined to extend
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Sfmt 4702
the comment period set forth in the
ANPR until June 23, 2008.4
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. E8–12739 Filed 6–5–08: 8:45 am]
[BILLING CODE 6750–01–S]
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 150
RIN 3038–AC140
Revision of Federal Speculative
Position Limits
Commodity Futures Trading
Commission.
ACTION: Proposed rules; withdrawal.
AGENCY:
SUMMARY: On November 21, 2007, the
Commodity Futures Trading
Commission (Commission or CFTC)
published a proposed rulemaking to
increase the Federal speculative
position limits for certain agricultural
commodity contracts set out in
Commission regulation 150.2 (proposed
rulemaking).1 The proposed rulemaking
would have increased the single-month
and all-months-combined position
limits for all contracts except contracts
based on oats in accordance with the
formula set out in Commission
regulation 150.5(c). The proposed
rulemaking would have also required
the aggregation of traders’ positions in
contracts that share substantially
identical terms with regulation 150.2enumerated contracts, regardless of
whether such contracts were
specifically delineated in that
regulation, for the purposes of
ascertaining compliance with the
Federal speculative position limits. For
the reasons provided below, the
Commission has determined to
withdraw the proposed rulemaking.
FOR FURTHER INFORMATION CONTACT:
Donald Heitman, Senior Special
Counsel, Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581, telephone (202) 418–5041,
facsimile number (202) 418–5507, email dheitman@cftc.gov; or Martin
Murray, Economist, Division of Market
Oversight, telephone (202) 418–5276,
4 Under Commission Rule 4.3(a), the 15-day
comment period begins on Monday, June 9, 2008,
the first business day after the date on which the
comment period is currently scheduled to end. 16
CFR 4.3(a).
1 Revision of Federal Speculative Position Limits,
72 FR 65483 (November 21, 2007).
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06JNP1
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Proposed Rules
dwashington3 on PRODPC61 with PROPOSALS
facsimile number (202) 418–5507, email mmurray@cftc.gov.
SUPPLEMENTARY INFORMATION: The
Commission has long established and
enforced speculative position limits for
futures contracts on various agricultural
commodities. The Commission
periodically reviews these Federal
speculative position limits, which are
set out in Commission regulation
150.2.2 On November 21, 2007, the
Commission published its proposed
rulemaking to increase Federal
speculative position limits for all singlemonth and all-months-combined
positions in all commodity markets
enumerated in Commission regulation
150.2, except Chicago Board of Trade
(CBT) Oats, based on the formula set out
in Commission regulation 150.5(c). The
rulemaking proposed to increase levels
for single-month and all-monthscombined positions for CBT Corn,
Soybeans, Wheat, Soybean Oil, and
Soybean Meal; Minneapolis Grain
Exchange Hard Red Spring Wheat;
Kansas City Board of Trade Hard Winter
Wheat; and New York Board of Trade 3
Cotton No. 2. In addition, the
rulemaking proposed to require the
aggregation of positions in contracts that
share substantially identical terms with
regulation 150.2-enumerated contracts,
regardless of whether such contracts
were specifically delineated in that
regulation, for the purposes of
ascertaining traders’ compliance with
the Federal speculative position limits.
The Commission requested public
comment by December 21, 2007. On
December 31, 2007, the Commission
extended the initial comment period to
January 21, 2008 to give interested
parties additional opportunity to
comment.4 The Commission received a
total of 40 comment letters in response
to its Federal Register publication.5 Six
letters generally favored the proposed
regulations and 34 letters were generally
opposed to their adoption. An
Agricultural Forum held by the
Commission on April 22, 2008 served as
an additional venue for the presentation
of views with respect to the proposed
rulemaking and a related Commission
proposal to adopt a risk management
2 Commission regulation 150.2 imposes three
types of position limits for each specified contract:
a spot month limit, a single-month limit, and an allmonths-combined limit. The Commission most
recently adopted amendments to levels for Federal
speculative position limits in 2005. See 70 FR
24705 (May 11, 2005).
3 The New York Board of Trade was acquired by
ICE Futures U.S. in January, 2007.
4 72 FR 74213 (December 31, 2007).
5 Federal Register Comment File 07–014,
available at https://www.cftc.gov/lawandregulation/
federalregister/federalregistercomments/2007/07–
014.html.
VerDate Aug<31>2005
11:59 Jun 05, 2008
Jkt 214001
exemption from the Federal speculative
position limits.6
Collectively, the comments received
in response to the proposed rulemaking
and at the Commission’s April 22
Agricultural Forum reflected differing
perspectives on a wide range of issues
of substantive import to the proposed
rulemaking. The issues covered by the
commenters, both in favor and opposed
to the Commission’s proposal to revise
the Federal speculative position limits,
included product margin requirements,
the convergence of cash and futures
transaction prices, the impact of
commodity-linked instruments traded
on national securities exchanges on
CFTC regulated transactions, the degree
of transparency for market participation,
and the quantification of the impact of
speculative trading on market volatility.
In light of the wide range of divergent
positions that have been put forth by
interested parties, the current market
conditions for the contracts that would
be affected by the proposed rulemaking,
and in order to determine whether
further consensus among the affected
parties should be sought, the
Commission has determined to
withdraw the proposed rulemaking
pending further consideration of the
relevant issues.
32261
Commission has determined to
withdraw these proposed rules.
FOR FURTHER INFORMATION CONTACT:
Donald Heitman, Senior Special
Counsel, Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street, NW., Washington, DC
20581, telephone (202) 418–5041,
facsimile number (202) 418–5507,
electronic mail dheitman@cftc.gov; or
John Fenton, Director of Surveillance,
Division of Market Oversight, telephone
(202) 418–5298, facsimile number (202)
418–5507, electronic mail
jfenton@cftc.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY: On November 27, 2007, the
Commodity Futures Trading
Commission (Commission or CFTC)
published proposed rules to create a
‘‘risk management exemption’’ from
Federal speculative position limits—the
limits on the size of speculative
positions that traders may hold or
control in futures and futures equivalent
option contracts on certain designated
agricultural commodities. The
Commission regulation 150.2 imposes
limits on the size of speculative
positions that traders may hold or
control in futures and futures equivalent
option contracts on certain designated
agricultural commodities named
therein. Commission regulation 150.3
lists certain types of positions that may
be exempted from these Federal
speculative position limits.
On November 27, 2007, the
Commission published proposed
amendments that would provide an
additional exemption from Federal
speculative position limits for ‘‘risk
management positions’’ (proposed
rulemaking).1 The proposal defined a
risk management position as a futures or
futures equivalent position, held as part
of a broadly diversified portfolio of
long-only or short-only futures or
futures equivalent positions, that is
based upon either: (1) A fiduciary
obligation to match or track the results
of a broadly diversified index that
includes the same commodity markets
in fundamentally the same proportions
as the futures or futures equivalent
position; or (2) a portfolio
diversification plan that has, among
other substantial asset classes, an
exposure to a broadly diversified index
that includes the same commodity
markets in fundamentally the same
proportions as the futures or futures
equivalent position. The exemption, as
proposed, would have been subject to
certain conditions, including that the
positions be passively managed,
unleveraged, and not carried into the
spot month.
The Commission requested public
comment by January 28, 2008. The
Commission received a total of 10
comment letters in response to its
6 Risk Management Exemption from Federal
Speculative Position Limits, 72 FR 66097
(November 27, 2007) (to be withdrawn).
1 Risk Management Exemption from Federal
Speculative Position Limits, 72 FR 66097
(November 27, 2007).
Issued by the Commission this June 2,
2008, in Washington, DC.
David Stawick,
Secretary of the Commission.
[FR Doc. E8–12728 Filed 6–5–08; 8:45 am]
BILLING CODE 6351–01–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 150
RIN 3038–AC40
Risk Management Exemption From
Federal Speculative Position Limits
Commodity Futures Trading
Commission.
ACTION: Proposed rules; withdrawal.
AGENCY:
PO 00000
Frm 00019
Fmt 4702
Sfmt 4702
E:\FR\FM\06JNP1.SGM
06JNP1
Agencies
[Federal Register Volume 73, Number 110 (Friday, June 6, 2008)]
[Proposed Rules]
[Pages 32260-32261]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-12728]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 150
RIN 3038-AC140
Revision of Federal Speculative Position Limits
AGENCY: Commodity Futures Trading Commission.
ACTION: Proposed rules; withdrawal.
-----------------------------------------------------------------------
SUMMARY: On November 21, 2007, the Commodity Futures Trading Commission
(Commission or CFTC) published a proposed rulemaking to increase the
Federal speculative position limits for certain agricultural commodity
contracts set out in Commission regulation 150.2 (proposed
rulemaking).\1\ The proposed rulemaking would have increased the
single-month and all-months-combined position limits for all contracts
except contracts based on oats in accordance with the formula set out
in Commission regulation 150.5(c). The proposed rulemaking would have
also required the aggregation of traders' positions in contracts that
share substantially identical terms with regulation 150.2-enumerated
contracts, regardless of whether such contracts were specifically
delineated in that regulation, for the purposes of ascertaining
compliance with the Federal speculative position limits. For the
reasons provided below, the Commission has determined to withdraw the
proposed rulemaking.
---------------------------------------------------------------------------
\1\ Revision of Federal Speculative Position Limits, 72 FR 65483
(November 21, 2007).
FOR FURTHER INFORMATION CONTACT: Donald Heitman, Senior Special
Counsel, Division of Market Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington,
DC 20581, telephone (202) 418-5041, facsimile number (202) 418-5507, e-
mail dheitman@cftc.gov; or Martin Murray, Economist, Division of Market
Oversight, telephone (202) 418-5276,
[[Page 32261]]
---------------------------------------------------------------------------
facsimile number (202) 418-5507, e-mail mmurray@cftc.gov.
SUPPLEMENTARY INFORMATION: The Commission has long established and
enforced speculative position limits for futures contracts on various
agricultural commodities. The Commission periodically reviews these
Federal speculative position limits, which are set out in Commission
regulation 150.2.\2\ On November 21, 2007, the Commission published its
proposed rulemaking to increase Federal speculative position limits for
all single-month and all-months-combined positions in all commodity
markets enumerated in Commission regulation 150.2, except Chicago Board
of Trade (CBT) Oats, based on the formula set out in Commission
regulation 150.5(c). The rulemaking proposed to increase levels for
single-month and all-months-combined positions for CBT Corn, Soybeans,
Wheat, Soybean Oil, and Soybean Meal; Minneapolis Grain Exchange Hard
Red Spring Wheat; Kansas City Board of Trade Hard Winter Wheat; and New
York Board of Trade \3\ Cotton No. 2. In addition, the rulemaking
proposed to require the aggregation of positions in contracts that
share substantially identical terms with regulation 150.2-enumerated
contracts, regardless of whether such contracts were specifically
delineated in that regulation, for the purposes of ascertaining
traders' compliance with the Federal speculative position limits.
---------------------------------------------------------------------------
\2\ Commission regulation 150.2 imposes three types of position
limits for each specified contract: a spot month limit, a single-
month limit, and an all-months-combined limit. The Commission most
recently adopted amendments to levels for Federal speculative
position limits in 2005. See 70 FR 24705 (May 11, 2005).
\3\ The New York Board of Trade was acquired by ICE Futures U.S.
in January, 2007.
---------------------------------------------------------------------------
The Commission requested public comment by December 21, 2007. On
December 31, 2007, the Commission extended the initial comment period
to January 21, 2008 to give interested parties additional opportunity
to comment.\4\ The Commission received a total of 40 comment letters in
response to its Federal Register publication.\5\ Six letters generally
favored the proposed regulations and 34 letters were generally opposed
to their adoption. An Agricultural Forum held by the Commission on
April 22, 2008 served as an additional venue for the presentation of
views with respect to the proposed rulemaking and a related Commission
proposal to adopt a risk management exemption from the Federal
speculative position limits.\6\
---------------------------------------------------------------------------
\4\ 72 FR 74213 (December 31, 2007).
\5\ Federal Register Comment File 07-014, available at https://
www.cftc.gov/lawandregulation/federalregister/
federalregistercomments/2007/07-014.html.
\6\ Risk Management Exemption from Federal Speculative Position
Limits, 72 FR 66097 (November 27, 2007) (to be withdrawn).
---------------------------------------------------------------------------
Collectively, the comments received in response to the proposed
rulemaking and at the Commission's April 22 Agricultural Forum
reflected differing perspectives on a wide range of issues of
substantive import to the proposed rulemaking. The issues covered by
the commenters, both in favor and opposed to the Commission's proposal
to revise the Federal speculative position limits, included product
margin requirements, the convergence of cash and futures transaction
prices, the impact of commodity-linked instruments traded on national
securities exchanges on CFTC regulated transactions, the degree of
transparency for market participation, and the quantification of the
impact of speculative trading on market volatility. In light of the
wide range of divergent positions that have been put forth by
interested parties, the current market conditions for the contracts
that would be affected by the proposed rulemaking, and in order to
determine whether further consensus among the affected parties should
be sought, the Commission has determined to withdraw the proposed
rulemaking pending further consideration of the relevant issues.
Issued by the Commission this June 2, 2008, in Washington, DC.
David Stawick,
Secretary of the Commission.
[FR Doc. E8-12728 Filed 6-5-08; 8:45 am]
BILLING CODE 6351-01-P