Exemption From Registration for Certain Firms With Regulation 30.10 Relief, 54069-54072 [E8-21857]
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Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Rules and Regulations
dwashington3 on PRODPC61 with RULES
(1) Remove the pulley drive assembly, the
torque limiter, the compressor drive belt, and
the alternator/compressor support.
(2) Inspect for cracks on the pulley drive
surfaces and the alternator/compressor
support welds.
(i) If any crack is detected, replace the
pulley drive assembly or conditionally repair
the cracked unit following the
accomplishment instructions in section D.2
of EADS SOCATA Mandatory TBM Aircraft
Alert Service Bulletin SB 70–161,
amendment 2, dated July 2008.
(ii) Replacement of the assembly
incorporates replacement of the pulley drive
sheer shaft required by paragraph (f)(3) of
this AD for airplanes with 30 hours TIS or
more with the torque limiter installed on the
pulley drive shear shaft.
(3) Replace any pulley drive shear shaft
that has accumulated 30 hours TIS or more
with the torque limiter installed. This action
is not required if you replaced the whole
assembly per paragraph (f)(2)(i) of this AD.
(4) Re-install the pulley drive assembly and
the alternator/compressor support, without
re-installing the compressor drive belt or the
torque limiter.
(5) Install on the instrument panel and in
the pilot’s primary field of vision, the
following placard:
‘‘AIR COND’’ INOPERATIVE
TBM Aircraft Alert Service Bulletin SB 70–
161, amendment 3, dated July 2008.
(2) Within 100 hours TIS after the
installation required in paragraph (h)(1) of
this AD and repetitively thereafter at
intervals not to exceed 100 TIS, inspect the
alternator/compressor support welds for
cracks following the accomplishment
instructions in sections B,G, H, I, and J of
EADS SOCATA Mandatory TBM Aircraft
Alert Service Bulletin SB 70–161,
amendment 3, dated July 2008.
(3) If any crack is detected in the
inspection required in paragraph (h)(2) of
this AD, before further flight, replace or
repair the cracked unit following EADS
SOCATA Mandatory TBM Aircraft Alert
Service Bulletin SB 70–161, amendment 3,
dated July 2008.
(4) Upon the accumulation of 400 hours
TIS, replace each pulley drive assembly,
P/N T700G215510000000, with a zerotimed one.
Note 1: Compliance with the requirements
of paragraph (h) of this AD restores the
capability to make use of the air conditioning
system.
RECOMMENDED ‘‘AIR COND’’ SWITCH
POSITION: ‘‘MANUAL’’
and insert EADS SOCATA Mandatory TBM
Aircraft Alert Service Bulletin SB 70–161,
amendment 2, dated July 2008 in the
limitations section of the pilot’s operating
handbook.
(g) For all serial number airplanes;
(1) Within 100 hours TIS after October 8,
2008 (the effective date of this AD), and
thereafter at intervals not to exceed 100 hours
TIS, inspect for cracks on the pulley drive
surfaces and the alternator/compressor
support welds, following EADS SOCATA
Mandatory TBM Aircraft Alert Service
Bulletin SB 70–161, amendment 2, dated July
2008. For accomplishment of the repetitive
inspections required by paragraph (g)(1) of
this AD, paragraph C.2 of the
accomplishment instructions of EADS
SOCATA Mandatory TBM Aircraft Alert
Service Bulletin SB 70–161, amendment 2,
dated July 2008, does not apply since the
torque limiter has already been removed.
(2) If cracks are found during any of these
inspections, before further flight, replace the
assembly or conditionally repair the unit
following EADS SOCATA Mandatory TBM
Aircraft Alert Service Bulletin SB 70–161,
amendment 2, dated July 2008. The 100-hour
TIS repetitive inspections are still required
after replacement or repair.
(h) As an alternative to the requirements of
paragraphs (f) and (g) of this AD, do the
following actions before further flight after
October 8, 2008 (the effective date of this
AD), following EADS SOCATA Mandatory
TBM Aircraft Alert Service Bulletin SB 70–
161, amendment 3, dated July 2008:
(1) Install a zero-timed pulley drive
assembly P/N T700G215510000000 following
the accomplishment instructions in section
D.1, I and J of EADS SOCATA Mandatory
Other FAA AD Provisions
(i) The following provisions also apply to
this AD:
(1) Alternative Methods of Compliance
(AMOCs): The Manager, Standards Office,
FAA, has the authority to approve AMOCs
for this AD, if requested using the procedures
found in 14 CFR 39.19. Send information to
ATTN: Albert Mercado, Aerospace Engineer,
FAA, Small Airplane Directorate, 901 Locust,
Room 301, Kansas City, Missouri 64106;
telephone: (816) 329–4119; fax: (816) 329–
4090. Before using any approved AMOC on
any airplane to which the AMOC applies,
notify your appropriate principal inspector
(PI) in the FAA Flight Standards District
Office (FSDO), or lacking a PI, your local
FSDO.
(2) Airworthy Product: For any
requirement in this AD to obtain corrective
actions from a manufacturer or other source,
use these actions if they are FAA-approved.
Corrective actions are considered FAAapproved if they are approved by the State
of Design Authority (or their delegated
agent). You are required to assure the product
is airworthy before it is returned to service.
(3) Reporting Requirements: For any
reporting requirement in this AD, under the
provisions of the Paperwork Reduction Act
(44 U.S.C. 3501 et seq.), the Office of
Management and Budget (OMB) has
approved the information collection
requirements and has assigned OMB Control
Number 2120–0056.
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FAA AD Differences
Note 2: This AD differs from the MCAI
and/or service information as follows: No
differences.
Related Information
(j) Refer to MCAI EASA Emergency AD
No.: 2008–0129R1–E, dated July 31, 2008;
EADS SOCATA Mandatory TBM Aircraft
Alert Service Bulletin SB 70–161,
amendment 2, and EADS SOCATA
Mandatory TBM Aircraft Alert Service
PO 00000
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Fmt 4700
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54069
Bulletin SB 70–161, amendment 3, both
dated July 2008, for related information.
Material Incorporated by Reference
(k) You must use EADS SOCATA
Mandatory TBM Aircraft Alert Service
Bulletin SB 70–161, amendment 2, or EADS
SOCATA Mandatory TBM Aircraft Alert
Service Bulletin SB 70–161, amendment 3,
both dated July 2008, to do the actions
required by this AD, unless the AD specifies
otherwise.
(1) The Director of the Federal Register
approved the incorporation by reference of
this service information under 5 U.S.C.
552(a) and 1 CFR part 51.
(2) For service information identified in
this AD, contact EADS SOCATA—Direction
des Services, 65921 Tarbes Cedex 9, France;
telephone: +33 (0)5 62 41 73 00; fax: +33 (0)5
62 41 7–54; or in the United States contact
EADS SOCATA North America, Inc., North
Perry Airport, 7501 South Airport Road.,
Pembroke Pines, Florida 33023; telephone:
(954) 893–1400; fax: (954) 964–4141.
(3) You may review copies at the FAA,
Central Region, Office of the Regional
Counsel, 901 Locust, Room 506, Kansas City,
Missouri 64106; or at the National Archives
and Records Administration (NARA). For
information on the availability of this
material at NARA, call 202–741–6030, or go
to: https://www.archives.gov/federal-register/
cfr/ibr-locations.html.
Issued in Kansas City, Missouri, on
September 8, 2008.
Kim Smith,
Manager, Small Airplane Directorate, Aircraft
Certification Service.
[FR Doc. E8–21429 Filed 9–17–08; 8:45 am]
BILLING CODE 4910–13–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Parts 3 and 30
RIN 3038–AC26
Exemption From Registration for
Certain Firms With Regulation 30.10
Relief
Commodity Futures Trading
Commission.
ACTION: Final rule.
AGENCY:
SUMMARY: The Commodity Futures
Trading Commission (‘‘Commission’’)
has amended the regulation concerning
the registration of firms located outside
the U.S. that are engaged in commodity
interest activities with respect to trading
on U.S. designated contract markets
(‘‘DCMs’’) and U.S. derivatives
transaction execution facilities
(‘‘DTEFs’’).1 The amended regulation
1 Commission regulations referred to herein are
found at 17 CFR Ch. I (2007) and may be accessed
through the Commission’s Web site, https://
www.cftc.gov/lawandregulation/index.htm.
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54070
Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Rules and Regulations
codifies past actions of the
Commission’s staff to permit certain
foreign firms that have confirmed relief
from registration as futures commission
merchants (‘‘FCMs’’) in accordance with
the regulations to introduce to registered
FCMs certain U.S. customers in
connection with trading futures and
commodity options listed on, or subject
to the rules of, a U.S. DCM or DTEF
without having to register as an
introducing broker (‘‘IB’’) pursuant to
Section 4d of the Commodity Exchange
Act (‘‘Act’’). The Commission also has
revoked the regulation regarding
quarterly reporting requirements for
foreign futures and foreign options
transactions.
DATES: Effective Date: October 20, 2008.
FOR FURTHER INFORMATION CONTACT:
Andrew V. Chapin, Associate Director,
at (202) 418–5430, Division of Clearing
and Intermediary Oversight, Commodity
Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW.,
Washington, DC 20581. Electronic mail:
achapin@cftc.gov.
SUPPLEMENTARY INFORMATION:
dwashington3 on PRODPC61 with RULES
I. The Proposal
Part 3 of the Commission’s regulations
governs the registration of
intermediaries engaged in the offer and
sale of, and providing advice
concerning, futures and commodity
options traded on U.S. markets,
including both DCMs and DTEFs.
Regulation 3.10 sets forth the manner in
which FCMs, IBs, commodity pool
operators (‘‘CPOs’’), commodity trading
advisors (‘‘CTAs’’), and leverage
transaction merchants must apply for
registration with the Commission.
Regulation 3.10(c) also provides an
exemption from registration for certain
persons. For example, Regulation
3.10(c)(3) provides an exemption from
registration to any foreign person
engaged in the activity of an IB, CPO or
CTA solely on behalf of customers
located outside the U.S., provided that
all commodity interest transactions are
submitted for clearing to a registered
FCM.2 Part 30 of the Commission’s
regulations governs the offer and sale to
U.S. persons of futures and option
contracts entered into on or subject to
the rules of a foreign board of trade.
On January 25, 2008, the Commission
published for comment proposed
amendments to Regulations 3.10 and
30.8 (the ‘‘Proposal’’).3 Specifically, the
Commission proposed new Regulation
3.10(c)(4) to exempt from registration as
an IB the foreign affiliate of a registered
2 See
3 73
72 FR 63976 (Nov. 14, 2007).
FR 4499 (Jan. 25, 2008).
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FCM that introduces eligible contract
participants (‘‘ECPs’’) to a registered
FCM for the purpose of trading U.S.
exchange-traded futures and options.
Among other conditions, the registration
relief described in the Proposal was
predicated upon the foreign affiliate
obtaining an exemption from FCM
registration pursuant to Regulation
30.10 (‘‘Regulation 30.10 firm’’) and the
affiliated FCM’s acknowledgment that it
would be jointly and severally liable for
any violations of the Act or the
Commission’s regulations by the foreign
affiliate in connection with those
activities, even if the FCM did not
submit the trade for clearing.
As explained in the Proposal, the
Commission sought to codify past noaction positions taken by Commission
staff that provided a limited-purpose
exemption from IB registration only to
those foreign affiliates of registered
FCMs engaged in global futures
brokerage activities on behalf of
institutional customers located in the
U.S. In doing so, the Commission
recognized that institutional U.S.
customers who trade globally
throughout the 24-hour trading day may
achieve greater operational and
economic efficiencies by eliminating the
need to use multiple order entry
systems to execute transactions both
domestically and abroad.
The Commission also proposed to
revoke Regulation 30.8 requiring each
FCM to provide the National Futures
Association (‘‘NFA’’) with a quarterly
report containing data for the total
volume of foreign futures and options
contracts effected on foreign boards of
trade. In the Proposal, the Commission
stated that the Regulation 30.8 reporting
requirement was overly burdensome in
lieu of other extensive reporting and
recordkeeping requirements applicable
to FCMs as set forth in Part 1 of its
regulations.
II. Comments Regarding the Proposal
A. The Comments
The Commission received four
comment letters. All of the commenters
supported the adoption of Regulation
3.10(c)(4). The two commenters on the
proposal to revoke Regulation 30.8
similarly supported that action.
One commenter, a registered FCM,
requested the Commission to preserve
the position taken in Staff Letter 07–16,
applicable to one of the FCM’s foreign
affiliates.4 In contrast to other recipients
4 CFTC Staff Letter 07–16, [Current Transfer
Binder] Comm. Fut. L. Rep. (CCH) ¶ llll (Aug.
21, 2007). CFTC Staff Letters issued since 1995 may
be accessed through https://www.cftc.gov/
lawandregulation/
PO 00000
Frm 00014
Fmt 4700
Sfmt 4700
of prior no-action relief, the FCM’s
foreign affiliate was exempt from IB
registration pursuant to Regulation 30.5
and not Regulation 30.10. As such, the
FCM’s foreign affiliate would not be
eligible for the IB registration exemption
under the Proposal until such time that
either its foreign regulator or selfregulatory organization filed a petition
with the Commission in accordance
with Regulation 30.10. Another
commenter, a membership organization
comprised of FCMs and other futures
industry participants, commented that
FCMs’ foreign affiliates in non-30.10
jurisdictions may be interested in
obtaining exemptive relief consistent
with Regulation 3.10(c)(4) and,
accordingly, it requested that the
Commission consider addressing those
foreign affiliates in the final rulemaking.
B. The Commission’s Response
The Commission does not believe it is
appropriate at this time to extend the
proposed IB registration exemption for
trading on domestic markets as set forth
in Regulation 3.10(c)(4) to those foreign
affiliates exempt from IB registration
pursuant to Regulation 30.5. This is
because, while the limited-purpose
exemption from IB registration set forth
in Regulation 3.10(c)(4) is predicated on
the existence of a comparable regulatory
program in the jurisdiction in which the
Regulation 30.10 firm is located, the
exemption available in Regulation 30.5
is not. The Commission’s determination
to limit the relief set forth in Regulation
3.10(c)(4) to Regulation 30.10 firms will
benefit U.S. customers by requiring any
firm not registered with the Commission
as an IB to be subject to a comparable
regulatory program in lieu of
compliance with the provisions of the
Act and Commission regulations
applicable to IBs. As set forth in
Appendix A to Part 30, the
Commission’s review of each Regulation
30.10 firm’s regulatory program, among
other requirements, addresses the
foreign laws and regulations applicable
to registration and fitness,
recordkeeping and reporting, and
minimum sales practice standards.
III. Final Rulemaking
Accordingly, the Commission has
determined to adopt Regulation
3.10(c)(4) as proposed. As the
Commission indicated would be the
case in the Proposal, the adoption of
Regulation 3.10(c)(4) will supersede the
following Staff Letters: 03–28, 04–09,
04–14, 05–06, 07–05, 07–08, 07–16, 07–
exemptivenoactionandinterpretativeletters/
index.htm.
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Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Rules and Regulations
17, 07–20, and 07–23 (the ‘‘Prior Staff
Letters’’).
Regulation 3.10(c)(4)(iii) requires that
the FCM affiliated with the Regulation
30.10 firm seeking relief thereunder file
with NFA an acknowledgment of joint
and several liability with the 30.10
Firm. Notwithstanding that the Prior
Staff Letters have been superseded by
the adoption of Regulation 3.10(c)(4), by
this Federal Register release the
Commission confirms that any FCM that
previously filed an acknowledgment of
joint and several liability pursuant to
the conditions of a Prior Staff Letter is
not required to file a new
acknowledgment with NFA—provided
that the previously filed
acknowledgment complies with
Regulation 3.10(c)(4)(iii).
For the reasons provided in the
Proposal, and in the absence of any
comments to the contrary, the
Commission similarly has determined to
revoke and reserve Regulation 30.8.
dwashington3 on PRODPC61 with RULES
IV. Related Matters
A. Regulatory Flexibility Act
The Regulatory Flexibility Act
(‘‘RFA’’), 5 U.S.C. 601–611, requires that
agencies, in proposing regulations,
consider the impact of those regulations
on small businesses. The Commission
has previously established certain
definitions of ‘‘small entities’’ to be used
by the Commission in evaluating the
impact of its regulations on such entities
in accordance with the RFA.5 The
Commission previously has determined
that registered FCMs are not small
entities for the purpose of the RFA
because each FCM has an underlying
fiduciary relationship with its
customers, regardless of the size of the
FCM.6 The Commission notes that
certain foreign persons affected by the
changes to the Commission’s regulations
would be registered as FCMs if not for
the exemption provided therein and, as
such, would maintain a fiduciary
relationship with customers similar to
the relationship maintained by each
registered FCM.
With respect to IBs, the Commission
has stated that it would evaluate within
the context of a particular rule whether
all or some affected IBs would be
considered to be small entities and, if
so, the economic impact on them of any
rule.7 The Commission does not believe
that any affected global IBs would be
considered to be small entities.
Moreover, the Commission invited
public comment on the impact these
5 47
FR 18618–18621 (Apr. 30, 1982).
FR 18619–18620.
7 47 FR 18618; see also 48 FR 35276 (Aug. 3,
1983).
proposed rules may have on small
entities and received no comments.
Therefore, the Acting Chairman, on
behalf of the Commission, hereby
certifies, pursuant to 5 U.S.C. 605(b),
that these regulations will not have a
significant economic impact on a
substantial number of small entities. No
comment was received regarding the
impact of these amendments on small
businesses.
B. Paperwork Reduction Act
As required by the Paperwork
Reduction Act of 1995,8 the
Commission submitted a copy of the
proposed rule amendments to the Office
of Management and Budget for its
review. The Commission did not receive
any public comments relative to its
analysis of paperwork burdens
associated with this rulemaking.
C. Cost-Benefit Analysis
Section 15(a) of the Act requires the
Commission to consider the costs and
benefits of its actions before issuing new
regulations under the Act. The
Commission published an analysis of
costs and benefits when it proposed the
rule amendments that it is now
adopting.9 It did not receive any public
comments pertaining to the analysis.
List of Subjects
17 CFR Part 3
Definitions, Foreign futures,
Consumer protection, Foreign options,
Registration requirements.
17 CFR Part 30
Definitions, Foreign futures,
Consumer protection, Foreign options,
Registration requirements.
■ In consideration of the foregoing, and
pursuant to the authority contained in
the Commodity Exchange Act and, in
particular, Sections 2(a)(1), 4(b), 4c and
8a thereof, 7 U.S.C. 2, 6(b), 6c and 12a
(1982), and pursuant to the authority
contained in 5 U.S.C. 552 and 552b
(1982), the Commission hereby amends
Chapter I of Title 17 of the Code of
Federal Regulations as follows:
PART 3—REGISTRATION
1. The authority citation for part 3
continues to read as follows:
■
Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a,
2, 4, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6k,
6m, 6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b, 13c,
16a, 18, 19, 21, 23, unless otherwise noted.
2. Section 3.10 is amended by adding
paragraph (c)(4) to read as follows:
■
6 47
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8 Pub.
9 73
PO 00000
L. 104–13 (May 13, 1995).
FR at 4502.
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54071
§ 3.10 Registration of futures commission
merchants, introducing brokers, commodity
trading advisors, commodity pool operators
and leverage transaction merchants.
*
*
*
*
*
(c) * * *
(4) A person located outside the
United States, its territories or
possessions that is exempt from
registration as a futures commission
merchant in accordance with § 30.10 of
this chapter is not required to register as
an introducing broker in accordance
with section 4d of the Act if:
(i) Such a person is affiliated with a
futures commission merchant registered
in accordance with section 4d of the
Act;
(ii) Such a person introduces, on a
fully-disclosed basis in accordance with
§ 1.57 of this chapter, any institutional
customer, as defined in § 1.3(g) of this
chapter, to a registered futures
commission merchant for the purpose of
trading on a designated contract market
or derivatives execution facility;
(iii) Prior to a person located outside
the United States, its territories or
possessions, that is exempt from
registration as a futures commission
merchant pursuant to § 30.10 of this
chapter, engaging in the introducing
activities described in this paragraph,
the affiliated futures commission
merchant has filed with the National
Futures Association (ATTN: Vice
President, Compliance) an
acknowledgement that it will be jointly
and severally liable for any violations of
the Act or the Commission’s regulations
committed by such person in
connection with those introducing
activities, whether or not the affiliated
futures commission merchant submits
for clearing any trades resulting from
those introducing activities; and
(iv) Such person does not solicit any
person located in the United States, its
territories or possessions for trading on
a designated contract market or
derivatives transaction execution
facility, nor does such person handle
the customer funds of any person
located in the United States, its
territories or possessions for the purpose
of trading on any designated contract
market or derivatives transaction
execution facility.
(v) For the purposes of this paragraph,
a person shall be affiliated with a
futures commission merchant if such a
person:
(A) Owns 50 percent or more of the
futures commission merchant;
(B) Is owned 50 percent or more by
the futures commission merchant; or
(C) Is owned 50 percent or more by a
third person that also owns 50 percent
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Federal Register / Vol. 73, No. 182 / Thursday, September 18, 2008 / Rules and Regulations
or more of the futures commission
merchant.
*
*
*
*
*
PART 30—FOREIGN FUTURES AND
FOREIGN OPTIONS TRANSACTIONS
3. The authority citation for part 30
continues to read as follows:
■
Authority: 7 U.S.C. 1a, 2, 4, 6, 6c, and 12a,
unless otherwise noted.
§ 30.8
[Removed and reserved]
4. Section 30.8 is removed and
reserved.
■
Dated: September 12, 2008.
By the Commission.
David Stawick,
Secretary of the Commission.
[FR Doc. E8–21857 Filed 9–17–08; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 117
[Docket No. USCG–2008–0760]
Drawbridge Operation Regulation;
Atlantic Intracoastal Waterway, Jay
Jay, FL
Coast Guard, DHS.
Notice of temporary deviation
from regulations.
AGENCY:
dwashington3 on PRODPC61 with RULES
ACTION:
SUMMARY: The Commander, Seventh
Coast Guard District, has issued a
temporary deviation from the regulation
governing the operation of the NASA
Railroad bridge across the Atlantic
Intracoastal Waterway, mile 876.6, at Jay
Jay, FL. The deviation is necessary to
perform rehabilitation work on the
bridge. This deviation allows the bridge
to not open to vessel traffic from 7 a.m.
until 11 a.m. and from 1 p.m. until 5
p.m., Monday through Friday except
Federal holidays until October 19, 2008.
All other times the bridge will continue
to operate in accordance with 33 CFR
117.261(j).
DATES: This deviation is effective from
September 18, 2008 until October 19,
2008.
ADDRESSES: Documents indicated in this
preamble as being available in the
docket are part of docket USCG–2008–
0760 and are available online at
https://www.regulations.gov. They are
also available for inspection or copying
at two locations: the Docket
Management Facility (M–30), U.S.
Department of Transportation, West
Building Ground Floor, Room W12–140,
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15:26 Sep 17, 2008
Jkt 214001
1200 New Jersey Avenue, SE.,
Washington, DC 20590, between 9 a.m.
and 5 p.m., Monday through Friday,
except Federal holidays, and the
Commander (dpb), Seventh Coast Guard
District, 909 SE 1st Avenue, Room 432,
Miami, Florida 33131–3028 between 8
a.m. and 4:30 p.m., Monday through
Friday, except Federal holidays.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this rule, call Mr.
Barry Dragon, Bridge Branch, Seventh
Coast Guard District, at 305–415–6743.
If you have questions on viewing the
docket, call Renee V. Wright, Program
Manager, Docket Operations, telephone
202–366–9826.
SUPPLEMENTARY INFORMATION: This
deviation was requested by NASA, the
bridge owner, in order to complete
rehabilitation of the NASA Bridge, mile
876.6, of the Atlantic Intracoastal
Waterway, Jay Jay, FL. The bridge has a
vertical clearance of 7 feet in the closed
position and a horizontal clearance of
90 feet. The work will require four
hours of continuous closure followed by
two hours for vessel passage followed
by four hours of continuous closure,
Monday through Friday except Federal
holidays. All other times the bridge will
operate in accordance with 33 CFR
117.261(j). This deviation period begins
September 18, 2008 and ends on
October 19, 2008. The bridge must
return to its regular operating schedule
immediately at the end of the
designated time period. This deviation
from the operating regulations is
authorized under 33 CFR 117.35.
Dated: August 1, 2008.
Gregory E. Shapley,
Chief, Bridge Branch, Commander, Seventh
Coast Guard District.
[FR Doc. E8–21891 Filed 9–17–08; 8:45 am]
BILLING CODE 4910–15–P
DEPARTMENT OF DEFENSE
Department of the Army, Corps of
Engineers
33 CFR Part 334
Restricted Area at Blount Island
Command and Marine Corps Support
Facility—Blount Island, Jacksonville,
FL
United States Army Corps of
Engineers, Department of Defense.
ACTION: Final rule.
AGENCY:
SUMMARY: The U.S. Army Corps of
Engineers (Corps) is amending the
existing regulations for a restricted area
at Blount Island Command, located on
PO 00000
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Marine Corps Support Facility—Blount
Island, Jacksonville, Florida. Blount
Island Command is responsible for
managing the United States Marine
Corps Prepositioning Programs. Due to
the importance of this mission, the
current restricted area in this section
must be extended due to Department of
Defense (DoD) directives that require the
implementation of specified force
protection measures by all DoD
components. This amendment to the
existing regulation is necessary to
protect U.S government personnel,
equipment, and facilities from potential
terrorist attack by providing stand-off
corridors encompassing the waters
immediately contiguous to Marine
Corps Support Facility—Blount Island.
DATES: Effective Date: October 20, 2008.
ADDRESSES: U.S. Army Corps of
Engineers, Attn: CECW–CO (David B.
Olson), 441 G Street, NW., Washington,
DC 20314–1000.
FOR FURTHER INFORMATION CONTACT: Mr.
David Olson, Headquarters, Operations
and Regulatory Community of Practice,
Washington, DC at 202–761–4922 or Mr.
Jon M. Griffin, U.S. Army Corps of
Engineers, Jacksonville District,
Regulatory Division, at 904–232–1680.
SUPPLEMENTARY INFORMATION: Pursuant
to its authorities in Section 7 of the
Rivers and Harbors Act of 1917 (40 Stat
266; 33 U.S.C. 1) and Chapter XIX of the
Army Appropriations Act of 1919 (40
Stat 892; 33 U.S.C. 3) the Corps is
amending the regulations in 33 CFR part
334 by modifying § 334.515. The
modification to the existing restricted
area is described below.
The proposed rule was published in
the June 10, 2008, issue of the Federal
Register (73 FR 32665), and its
regulations.gov docket number is COE–
2007–0037. No comments were received
in response to the proposed rule.
The amendment to this regulation
will allow the Commanding Officer,
Blount Island Command and Marine
Corps Support Facility—Blount Island
to restrict passage of persons, watercraft,
and vessels in waters contiguous to this
Command, thereby ensuring that DoD
force protection requirements are met
and antiterrorism measures are properly
implemented as required by DoD
directives.
Procedural Requirements
a. Review Under Executive Order
12866. This rule is issued with respect
to a military function of the Defense
Department and the provisions of
Executive Order 12866 do not apply.
b. Review Under the Regulatory
Flexibility Act. The rule has been
reviewed under the Regulatory
E:\FR\FM\18SER1.SGM
18SER1
]]>Agencies
[Federal Register Volume 73, Number 182 (Thursday, September 18, 2008)]
[Rules and Regulations]
[Pages 54069-54072]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-21857]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 3 and 30
RIN 3038-AC26
Exemption From Registration for Certain Firms With Regulation
30.10 Relief
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
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SUMMARY: The Commodity Futures Trading Commission (``Commission'') has
amended the regulation concerning the registration of firms located
outside the U.S. that are engaged in commodity interest activities with
respect to trading on U.S. designated contract markets (``DCMs'') and
U.S. derivatives transaction execution facilities (``DTEFs'').\1\ The
amended regulation
[[Page 54070]]
codifies past actions of the Commission's staff to permit certain
foreign firms that have confirmed relief from registration as futures
commission merchants (``FCMs'') in accordance with the regulations to
introduce to registered FCMs certain U.S. customers in connection with
trading futures and commodity options listed on, or subject to the
rules of, a U.S. DCM or DTEF without having to register as an
introducing broker (``IB'') pursuant to Section 4d of the Commodity
Exchange Act (``Act''). The Commission also has revoked the regulation
regarding quarterly reporting requirements for foreign futures and
foreign options transactions.
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\1\ Commission regulations referred to herein are found at 17
CFR Ch. I (2007) and may be accessed through the Commission's Web
site, https://www.cftc.gov/lawandregulation/index.htm.
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DATES: Effective Date: October 20, 2008.
FOR FURTHER INFORMATION CONTACT: Andrew V. Chapin, Associate Director,
at (202) 418-5430, Division of Clearing and Intermediary Oversight,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street, NW., Washington, DC 20581. Electronic mail: achapin@cftc.gov.
SUPPLEMENTARY INFORMATION:
I. The Proposal
Part 3 of the Commission's regulations governs the registration of
intermediaries engaged in the offer and sale of, and providing advice
concerning, futures and commodity options traded on U.S. markets,
including both DCMs and DTEFs. Regulation 3.10 sets forth the manner in
which FCMs, IBs, commodity pool operators (``CPOs''), commodity trading
advisors (``CTAs''), and leverage transaction merchants must apply for
registration with the Commission. Regulation 3.10(c) also provides an
exemption from registration for certain persons. For example,
Regulation 3.10(c)(3) provides an exemption from registration to any
foreign person engaged in the activity of an IB, CPO or CTA solely on
behalf of customers located outside the U.S., provided that all
commodity interest transactions are submitted for clearing to a
registered FCM.\2\ Part 30 of the Commission's regulations governs the
offer and sale to U.S. persons of futures and option contracts entered
into on or subject to the rules of a foreign board of trade.
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\2\ See 72 FR 63976 (Nov. 14, 2007).
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On January 25, 2008, the Commission published for comment proposed
amendments to Regulations 3.10 and 30.8 (the ``Proposal'').\3\
Specifically, the Commission proposed new Regulation 3.10(c)(4) to
exempt from registration as an IB the foreign affiliate of a registered
FCM that introduces eligible contract participants (``ECPs'') to a
registered FCM for the purpose of trading U.S. exchange-traded futures
and options. Among other conditions, the registration relief described
in the Proposal was predicated upon the foreign affiliate obtaining an
exemption from FCM registration pursuant to Regulation 30.10
(``Regulation 30.10 firm'') and the affiliated FCM's acknowledgment
that it would be jointly and severally liable for any violations of the
Act or the Commission's regulations by the foreign affiliate in
connection with those activities, even if the FCM did not submit the
trade for clearing.
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\3\ 73 FR 4499 (Jan. 25, 2008).
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As explained in the Proposal, the Commission sought to codify past
no-action positions taken by Commission staff that provided a limited-
purpose exemption from IB registration only to those foreign affiliates
of registered FCMs engaged in global futures brokerage activities on
behalf of institutional customers located in the U.S. In doing so, the
Commission recognized that institutional U.S. customers who trade
globally throughout the 24-hour trading day may achieve greater
operational and economic efficiencies by eliminating the need to use
multiple order entry systems to execute transactions both domestically
and abroad.
The Commission also proposed to revoke Regulation 30.8 requiring
each FCM to provide the National Futures Association (``NFA'') with a
quarterly report containing data for the total volume of foreign
futures and options contracts effected on foreign boards of trade. In
the Proposal, the Commission stated that the Regulation 30.8 reporting
requirement was overly burdensome in lieu of other extensive reporting
and recordkeeping requirements applicable to FCMs as set forth in Part
1 of its regulations.
II. Comments Regarding the Proposal
A. The Comments
The Commission received four comment letters. All of the commenters
supported the adoption of Regulation 3.10(c)(4). The two commenters on
the proposal to revoke Regulation 30.8 similarly supported that action.
One commenter, a registered FCM, requested the Commission to
preserve the position taken in Staff Letter 07-16, applicable to one of
the FCM's foreign affiliates.\4\ In contrast to other recipients of
prior no-action relief, the FCM's foreign affiliate was exempt from IB
registration pursuant to Regulation 30.5 and not Regulation 30.10. As
such, the FCM's foreign affiliate would not be eligible for the IB
registration exemption under the Proposal until such time that either
its foreign regulator or self-regulatory organization filed a petition
with the Commission in accordance with Regulation 30.10. Another
commenter, a membership organization comprised of FCMs and other
futures industry participants, commented that FCMs' foreign affiliates
in non-30.10 jurisdictions may be interested in obtaining exemptive
relief consistent with Regulation 3.10(c)(4) and, accordingly, it
requested that the Commission consider addressing those foreign
affiliates in the final rulemaking.
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\4\ CFTC Staff Letter 07-16, [Current Transfer Binder] Comm.
Fut. L. Rep. (CCH) ] -------- (Aug. 21, 2007). CFTC Staff Letters
issued since 1995 may be accessed through https://www.cftc.gov/
lawandregulation/exemptivenoactionandinterpretativeletters/
index.htm.
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B. The Commission's Response
The Commission does not believe it is appropriate at this time to
extend the proposed IB registration exemption for trading on domestic
markets as set forth in Regulation 3.10(c)(4) to those foreign
affiliates exempt from IB registration pursuant to Regulation 30.5.
This is because, while the limited-purpose exemption from IB
registration set forth in Regulation 3.10(c)(4) is predicated on the
existence of a comparable regulatory program in the jurisdiction in
which the Regulation 30.10 firm is located, the exemption available in
Regulation 30.5 is not. The Commission's determination to limit the
relief set forth in Regulation 3.10(c)(4) to Regulation 30.10 firms
will benefit U.S. customers by requiring any firm not registered with
the Commission as an IB to be subject to a comparable regulatory
program in lieu of compliance with the provisions of the Act and
Commission regulations applicable to IBs. As set forth in Appendix A to
Part 30, the Commission's review of each Regulation 30.10 firm's
regulatory program, among other requirements, addresses the foreign
laws and regulations applicable to registration and fitness,
recordkeeping and reporting, and minimum sales practice standards.
III. Final Rulemaking
Accordingly, the Commission has determined to adopt Regulation
3.10(c)(4) as proposed. As the Commission indicated would be the case
in the Proposal, the adoption of Regulation 3.10(c)(4) will supersede
the following Staff Letters: 03-28, 04-09, 04-14, 05-06, 07-05, 07-08,
07-16, 07-
[[Page 54071]]
17, 07-20, and 07-23 (the ``Prior Staff Letters'').
Regulation 3.10(c)(4)(iii) requires that the FCM affiliated with
the Regulation 30.10 firm seeking relief thereunder file with NFA an
acknowledgment of joint and several liability with the 30.10 Firm.
Notwithstanding that the Prior Staff Letters have been superseded by
the adoption of Regulation 3.10(c)(4), by this Federal Register release
the Commission confirms that any FCM that previously filed an
acknowledgment of joint and several liability pursuant to the
conditions of a Prior Staff Letter is not required to file a new
acknowledgment with NFA--provided that the previously filed
acknowledgment complies with Regulation 3.10(c)(4)(iii).
For the reasons provided in the Proposal, and in the absence of any
comments to the contrary, the Commission similarly has determined to
revoke and reserve Regulation 30.8.
IV. Related Matters
A. Regulatory Flexibility Act
The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-611,
requires that agencies, in proposing regulations, consider the impact
of those regulations on small businesses. The Commission has previously
established certain definitions of ``small entities'' to be used by the
Commission in evaluating the impact of its regulations on such entities
in accordance with the RFA.\5\ The Commission previously has determined
that registered FCMs are not small entities for the purpose of the RFA
because each FCM has an underlying fiduciary relationship with its
customers, regardless of the size of the FCM.\6\ The Commission notes
that certain foreign persons affected by the changes to the
Commission's regulations would be registered as FCMs if not for the
exemption provided therein and, as such, would maintain a fiduciary
relationship with customers similar to the relationship maintained by
each registered FCM.
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\5\ 47 FR 18618-18621 (Apr. 30, 1982).
\6\ 47 FR 18619-18620.
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With respect to IBs, the Commission has stated that it would
evaluate within the context of a particular rule whether all or some
affected IBs would be considered to be small entities and, if so, the
economic impact on them of any rule.\7\ The Commission does not believe
that any affected global IBs would be considered to be small entities.
Moreover, the Commission invited public comment on the impact these
proposed rules may have on small entities and received no comments.
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\7\ 47 FR 18618; see also 48 FR 35276 (Aug. 3, 1983).
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Therefore, the Acting Chairman, on behalf of the Commission, hereby
certifies, pursuant to 5 U.S.C. 605(b), that these regulations will not
have a significant economic impact on a substantial number of small
entities. No comment was received regarding the impact of these
amendments on small businesses.
B. Paperwork Reduction Act
As required by the Paperwork Reduction Act of 1995,\8\ the
Commission submitted a copy of the proposed rule amendments to the
Office of Management and Budget for its review. The Commission did not
receive any public comments relative to its analysis of paperwork
burdens associated with this rulemaking.
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\8\ Pub. L. 104-13 (May 13, 1995).
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C. Cost-Benefit Analysis
Section 15(a) of the Act requires the Commission to consider the
costs and benefits of its actions before issuing new regulations under
the Act. The Commission published an analysis of costs and benefits
when it proposed the rule amendments that it is now adopting.\9\ It did
not receive any public comments pertaining to the analysis.
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\9\ 73 FR at 4502.
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List of Subjects
17 CFR Part 3
Definitions, Foreign futures, Consumer protection, Foreign options,
Registration requirements.
17 CFR Part 30
Definitions, Foreign futures, Consumer protection, Foreign options,
Registration requirements.
0
In consideration of the foregoing, and pursuant to the authority
contained in the Commodity Exchange Act and, in particular, Sections
2(a)(1), 4(b), 4c and 8a thereof, 7 U.S.C. 2, 6(b), 6c and 12a (1982),
and pursuant to the authority contained in 5 U.S.C. 552 and 552b
(1982), the Commission hereby amends Chapter I of Title 17 of the Code
of Federal Regulations as follows:
PART 3--REGISTRATION
0
1. The authority citation for part 3 continues to read as follows:
Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a, 2, 4, 6, 6a, 6b, 6c,
6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b,
13c, 16a, 18, 19, 21, 23, unless otherwise noted.
0
2. Section 3.10 is amended by adding paragraph (c)(4) to read as
follows:
Sec. 3.10 Registration of futures commission merchants, introducing
brokers, commodity trading advisors, commodity pool operators and
leverage transaction merchants.
* * * * *
(c) * * *
(4) A person located outside the United States, its territories or
possessions that is exempt from registration as a futures commission
merchant in accordance with Sec. 30.10 of this chapter is not required
to register as an introducing broker in accordance with section 4d of
the Act if:
(i) Such a person is affiliated with a futures commission merchant
registered in accordance with section 4d of the Act;
(ii) Such a person introduces, on a fully-disclosed basis in
accordance with Sec. 1.57 of this chapter, any institutional customer,
as defined in Sec. 1.3(g) of this chapter, to a registered futures
commission merchant for the purpose of trading on a designated contract
market or derivatives execution facility;
(iii) Prior to a person located outside the United States, its
territories or possessions, that is exempt from registration as a
futures commission merchant pursuant to Sec. 30.10 of this chapter,
engaging in the introducing activities described in this paragraph, the
affiliated futures commission merchant has filed with the National
Futures Association (ATTN: Vice President, Compliance) an
acknowledgement that it will be jointly and severally liable for any
violations of the Act or the Commission's regulations committed by such
person in connection with those introducing activities, whether or not
the affiliated futures commission merchant submits for clearing any
trades resulting from those introducing activities; and
(iv) Such person does not solicit any person located in the United
States, its territories or possessions for trading on a designated
contract market or derivatives transaction execution facility, nor does
such person handle the customer funds of any person located in the
United States, its territories or possessions for the purpose of
trading on any designated contract market or derivatives transaction
execution facility.
(v) For the purposes of this paragraph, a person shall be
affiliated with a futures commission merchant if such a person:
(A) Owns 50 percent or more of the futures commission merchant;
(B) Is owned 50 percent or more by the futures commission merchant;
or
(C) Is owned 50 percent or more by a third person that also owns 50
percent
[[Page 54072]]
or more of the futures commission merchant.
* * * * *
PART 30--FOREIGN FUTURES AND FOREIGN OPTIONS TRANSACTIONS
0
3. The authority citation for part 30 continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 4, 6, 6c, and 12a, unless otherwise
noted.
Sec. 30.8 [Removed and reserved]
0
4. Section 30.8 is removed and reserved.
Dated: September 12, 2008.
By the Commission.
David Stawick,
Secretary of the Commission.
[FR Doc. E8-21857 Filed 9-17-08; 8:45 am]
BILLING CODE 6351-01-P
