Commodity Futures Trading Commission 2005 – Federal Register Recent Federal Regulation Documents

The Commission is extending the time for interested parties to respond to the Commission's Request for Comments on Self-Regulation and Self-Regulatory Organizations in the Futures Industry, published in the Federal Register on November 25, 2005.\1\

In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), this notice announces that the Information Collection Request (ICR) abstracted below has been forwarded to the Office of Management and Budget (OMB) for review and comment. The ICR describes the nature of the information collection and its expected costs and burden; it includes the actual data collection instruments [if any].

The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is proposing to amend Commission regulations to require that commodity pool annual financial reports submitted by commodity pool operators (``CPOs'') to the National Futures Association (``NFA'') be filed electronically. Commodity pool annual reports filed with a registered futures association (currently, the NFA is the sole registered futures association) must contain a manually signed oath or affirmation under Commission regulations and no provision exists for electronic filing of annual reports with NFA. The NFA has recently petitioned the Commission to amend its regulations to require mandatory electronic filing of commodity pool annual reports. The Commission has considered the NFA petition and is hereby proposing to amend Commission regulations: (i) To require CPOs to file a commodity pool annual report with NFA electronically, with the required oath or affirmation to be made through compliance with NFA's electronic filing procedures; (ii) to require CPOs to maintain for five years a manually signed copy of each annual report and to maintain records of how certain key financial balances submitted to NFA were compiled from the annual report; (iii) to eliminate the requirement that the annual report filed with NFA be manually signed. Further, the Commission is proposing additional amendments to clarify certain aspects of the Commission's regulations applicable to CPOs with respect to financial reporting, Specifically, the Commission is proposing amendments that would: explicitly state that commodity pool monthly and/or quarterly account statements distributed to participants must be prepared in accordance with generally accepted accounting principles; clarify that COPs must file a notification of a change in a public accountant for a commodity pool with the Commission and with NFA; clarify that a reference to ``segregation'' with respect to a statement required to be made in an accountant's letter refers to the prohibition on commingling of funds of a commodity pool with the assets of any other person; and require that notifications concerning CPOs' election of fiscal years for commodity pools other than the calendar year or changes in fiscal year be filed solely with NFA and not the Commission. Annual reports to pool participants may continue to be provided as they have been previously, either through hard-copy distribution via postal mail or electronically if the pool participant consents thereto.

This Request for Comments (``Request'') continues the Commission's ongoing review of self-regulation and self-regulatory organizations in the U.S. futures industry (``SRO Study''). The Request seeks public comment on a range of SRO issues, including governance, minimizing conflicts of interest within self-regulation, the composition of SROs' boards of directors and disciplinary committees, and the impact of increasing competition, changing business models and new ownership structures on SROs' self-regulatory responsibilities.\2\ Commenters are also asked to consider the impact of securities exchanges' listing standards and the unique role of registered futures associations (``RFAs'') and other third-party regulatory service providers. The questions presented update the Commission's prior fact- finding on self-regulation, build on industry developments since that time, and offer interested parties an additional opportunity to comment as the SRO Study nears conclusion. The questions raised in this Request will also form the basis of an upcoming Commission roundtable on self- regulation. The roundtable will provide a forum for industry participants to present their views on both the challenges and opportunities of self-regulation in a rapidly evolving futures industry.

The Commodity Futures Trading Commission (CFTC) is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq., Federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, and to allow 60 days for public comment in response to the notice. This notice solicits comments on requirements relating to off-exchange agricultural trade options.

The Commission charges fees to designated contract markets and the National Futures Association (NFA) to recover the costs incurred by the Commission in the operation of a program which provides a service to these entities. The fees are charged for the Commission's conduct of its program of oversight of self-regulatory rule enforcement programs (NFA and the contract markets are referred to as SROs). The calculation of the fee amounts to be charged for FY 2005 is based on an average of actual program costs incurred during FY 2002, 2003, and 2004, as explained below. The FY 2005 fee schedule is set forth in the SUPPLEMENTARY INFORMATION. Electronic payment of fees is required.

In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), this notice announces that the Information Collection Request (ICR) abstracted below has been forwarded to the Office of Management and Budget (OMB) for review and comment. The ICF describes the nature of the information collection and its expected costs and burden; it includes the actual data collection instrument [if any].

In compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), this notice announces that the Information Collection Request (ICR) abstracted below has been forwarded to the Office of Management and Budget (OMB) for review and comment. The ICR describes the nature of the information collection and its expected costs and burden; it includes the actual data collection instruments (if any).