Commodity Futures Trading Commission June 2006 – Federal Register Recent Federal Regulation Documents

The Commitments of Traders (``COT'') reports are weekly reports, published by the Commodity Futures Trading Commission (``CFTC'' or ``Commission''), showing aggregate trader positions in certain futures and options markets. Over time, both the trading activity that is the subject of the COT reports, and the reports themselves, have continued to change and evolve. As part of its ongoing efforts both to maintain an information system that reflects changing market conditions, and to provide the public with useful information regarding futures and options markets, the Commission is undertaking a comprehensive review of the COT reporting program. This release is intended to: (1) Provide useful background information regarding the COT reports; (2) lay out various issues and questions regarding the COT reports; and (3) solicit public comment regarding the reports, including suggestions as to possible changes in the COT reporting system.

The Commodity Futures Trading Commission (Commission) is publishing this request for comment in advance of a public hearing scheduled for June 27, 2006.\1\ The purpose of the hearing is to solicit the views of the public on how to identify and address certain issues with respect to boards of trade established in foreign countries and located outside the U.S. (foreign board of trade or FBOT). Specifically, the Commission wishes to address the point at which an FBOT that makes its products available for trading in the U.S. by permitting direct access to its electronic trading system from the U.S. (direct access) is no longer ``located outside the U.S.'' for purposes of section 4(a) of the Commodity Exchange Act (Act). If it is determined that the FBOT is not ``located outside the U.S.,'' it becomes subject to section 4(a) and may be required to become a designated contract market (DCM) or derivatives transaction execution facility (DTEF).