[Federal Register Volume 60, Number 29 (Monday, February 13, 1995)]
[Rules and Regulations]
[Pages 8194-8195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3455]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 140
Delegation of Authority to the Director of the Division of
Trading and Markets
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rules.
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SUMMARY: The Commodity Futures Trading Commission (``Commission'') is
delegating to the Director of the Division of Trading and Markets, and
to such members of the Commission staff acting under the Director's
direction as the Director may designate from time to time, the
authority to perform all functions reserved to the Commission under the
recently adopted risk assessment requirements for holding company
systems in Secs. 1.14 and 1.15 of the Commission's regulations. The
delegation should result in more expeditious treatment of exemption
requests, which will benefit futures commission merchants (``FCMs'')
and the Commission.
EFFECTIVE DATE: February 13, 1995.
FOR FURTHER INFORMATION CONTACT: Lawrence T. Eckert, Attorney Adviser,
Division of Trading and Markets, Commodity Futures Trading Commission,
2033 K Street N.W., Washington D.C. 20581. Telephone (202) 254-8955.
SUPPLEMENTARY INFORMATION:
I. Delegation
On December 21, 1994, the Commission adopted Rules 1.14 and 1.15 to
implement the risk assessment authority set forth in Section 4f(c) of
the Commodity Exchange Act.\1\ These rules generally require FCMs that
are subject to the rules to maintain and file with the Commission
certain information concerning their financial activities and the
activities of their material affiliates.
\1\59 FR 66674 (December 28, 1994).
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In promulgating the risk assessment rules, and at the suggestion of
commenters on the proposed rules, the Commission reserved, in Rules
1.14(d)(3) and 1.15(c)(3), the authority to exempt any FCM from any of
the provisions of either Rule 1.14 or Rule 1.15 if the Commission finds
that the exemption is not contrary to the public interest and the
purposes of the provisions from which the exemption is sought.
Additionally, the rules permit the Commission to exempt an FCM
affiliated with a ``Reporting Futures Commission Merchant'' from the
recordkeeping and reporting requirements of the rules, and permit the
Commission to request information to supplement an FCM's filings with
the Commission if the Commission determines that additional information
is necessary for a complete understanding of a particular affiliate's
financial impact on the FCM's organizational structure.\2\
\2\Rules 1.14(d)(2), 1.15(c)(2) and 1.15(a)(2)(iii). For a
complete discussion of the recently adopted risk assessment rules,
see 59 FR 66674.
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The Commission has determined to codify in Part 140 the delegation
of its authority under the risk assessment rules to the Director of the
Division of Trading and Markets.\3\ Accordingly, the Commission is
hereby amending its delegation of authority to the Director of the
Division of Trading and Markets set forth in Rule 140.91, which
currently governs authority to perform functions on behalf of the
Commission with respect to the minimum financial and related reporting
requirements for FCMs and introducing brokers under Rules 1.10, 1.12,
1.16 and 1.17, by adding to it the authority to act on behalf of the
Commission with respect to all functions reserved to the Commission
under Rules 1.14 and 1.15. The Commission further notes that paragraph
(b) of Rule 140.91 will continue to provide that the Director may
submit any matter delegated under the rule to the Commission for its
consideration.
\3\See 59 FR 66674, at 66682, n.35 (Director of Division of
Trading and Markets is generally delegated the authority to act on
behalf of the Commission with respect to the risk assessment rules).
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II. Related Matters
A. Administrative Procedure Act
The Commission has determined that this delegation of authority
relates solely to agency organization, procedure and practice.
Therefore, the provisions of the Administrative Procedure Act, 5 U.S.C.
553, which generally require notice of proposed rule making and which
provide other opportunities for public participation, are not
applicable. The Commission further finds that, because the rule has no
adverse effect upon a member of the public, there is good cause to make
it effective immediately upon publication in the Federal Register.
[[Page 8195]]
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-611 (1988),
requires that agencies, in proposing rules, consider the impact of
those rules on small businesses. The rules discussed herein are only an
administrative delegation and will have no impact on registered
entities. Even if these rules were deemed to affect FCMs, the
Commission already has established certain definitions of ``small
entities'' to be used by the Commission in evaluating the impact of its
rules on such small entities in accordance with the RFA and FCMs have
been determined not to be small entities under the RFA.\4\ Accordingly,
the Chairman, on behalf of the Commission, hereby certifies, pursuant
to 5 U.S.C. 605(b), that these rule amendments will not have a
significant impact on a substantial number of smaller entities.
\4\47 FR 18618-18621 (April 30, 1982).
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List of Subjects in 17 CFR Part 140
Authority delegations (Government agencies).
In consideration of the foregoing, and pursuant to the authority
contained in the Commodity Exchange Act, and, in particular, sections
2a and 8a, 7 U.S.C. 4a and 12a, the Commission is amending part 140 of
Chapter I of Title 17 of the Code of Federal Regulations as follows:
PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION
1. The authority citation for Part 140 continues to read as
follows:
Authority: 7 U.S.C. 4a and 12a.
2. Section 140.91 is amended by redesignating paragraphs (a)(3) and
(a)(4) as (a)(5) and (a)(6) and by adding new paragraphs (a)(3) and
(a)(4) to read as follows:
Sec. 140.91 Delegation of authority to the Director of the Division of
Trading and Markets.
(a) * * *
(3) All functions reserved to the Commission in Sec. 1.14 of this
chapter;
(4) All functions reserved to the Commission in Sec. 1.15 of this
chapter;
* * * * *
Issued in Washington, D.C. on February 7, 1995, by the
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 95-3455 Filed 2-10-95; 8:45 am]
BILLING CODE 6351-01-U