[Federal Register Volume 61, Number 205 (Tuesday, October 22, 1996)]
[Rules and Regulations]
[Pages 54731-54732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-26949]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 4


Interpretation Regarding Use of Electronic Media by Commodity 
Pool Operators and Commodity Trading Advisors

AGENCY: Commodity Futures Trading Commission.

ACTION: Extension of comment period and effective date of 
interpretation.

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[[Page 54732]]

SUMMARY: On August 8, 1996, the Commodity Futures Trading Commission 
(``Commission'') issued an Interpretation Regarding Use of Electronic 
Media by Commodity Pool Operators and Commodity Trading Advisors, 61 FR 
42146 (August 14, 1996). The deadline for the submission of comments 
and the effective date was originally October 15, 1996. The Commission 
has determined to extend the period for public comment for thirty days, 
or until November 14, 1996. In addition, the Commission has determined 
to delay the effective date for a period of sixty days, or until 
December 16, 1996, to allow the Commission sufficient time to consider 
any additional comments that may be received during the extended 
comment period. The Pilot Program for electronic filing of commodity 
pool operator and commodity trading advisor disclosure documents will 
commence on October 15, 1996, as originally provided.

DATES: The Interpretative Release referenced herein is effective on 
December 16, 1996. Written comments must be received on or before 
November 14, 1996.

ADDRESSES: Comments should be submitted to Jean A. Webb, Secretary of 
the Commission, Commodity Futures Trading Commission, 1155 21st Street, 
N.W., Washington, D.C. 20581. In addition, comments may be sent by 
facsimile transmission to facsimile number (202) 418-5521, or by 
electronic mail to secretarycftc.gov.

FOR FURTHER INFORMATION CONTACT:
Susan C. Ervin, Deputy Director/Chief Counsel, or Gary L. Goldsholle, 
Attorney/Advisor, Division of Trading and Markets, Commodity Futures 
Trading Commission, 1155 21st Street, N.W., Washington, D.C. 20581. 
Telephone number: (202) 418-5450. Facsimile number: (202) 418-5536. 
Electronic mail: tmcftc.gov.

SUPPLEMENTARY INFORMATION: On August 8, 1996, the Commission issued an 
Interpretation Regarding Use of Electronic Media by Commodity Pool 
Operators and Commodity Trading Advisors (``Interpretative Release'' or 
``Release''). The Interpretative Release was designed to provide 
commodity pool operators (``CPOs''), commodity trading advisors 
(``CTAs''), and associated persons (``AP'') thereof, with guidance 
concerning the application of the Commodity Exchange Act and 
regulations thereunder to activities involving electronic media. The 
Commission sought comment on all issues discussed in the release, and 
any related issues, and provided that the effective date of the 
Interpretative Release would be October 15, 1996 and that comments 
should be received on or before that date. On October 7, 1996, the 
Managed Futures Association requested that the Commission postpone the 
effective date of the Interpretative Release until the Commission has 
completed its review of all comments received on the Release. The 
Commission has also received a second request to extend the comment 
period and the effective date.

    The Commission has determined to extend the comment period on the 
Interpretative Release for an additional thirty days and the effective 
date of the release for an additional sixty days. These postponements 
will provide additional time both for public comment on relevant issues 
and for the Commission's review of such comments prior to the effective 
date of the Release. The Commission emphasizes, however, that this 
deferment does not affect the statutory and regulatory requirements 
applicable to persons acting as CPOs and CTAs, whether by means of 
electronic media or otherwise. As noted in the Interpretative Release, 
``persons using electronic media are subject to the same statutory and 
regulatory requirements under the Commission's regulatory framework as 
persons employing other modes of communication.'' 61 FR at 42150. The 
Commission sought to assist such persons in the use of electronic media 
by publishing guidance as to specific applications of existing 
requirements in the Interpretative Release. The Commission also sought 
comment in various sections as to whether alternative methodologies 
would be acceptable.\1\ The Commission also notes that the Commission 
staff letters and advisories cited in the Release, as stated therein, 
``represent interpretations by the Commission's staff and do not 
necessarily represent interpretations by the Commission.'' 61 FR at 
42149 n.24. These staff statements provide relevant precedent and 
guidance.
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    \1\ For example, with respect to the use of personal 
identification numbers to substitute for manually signed 
acknowledgments, the Commission welcomed comment ``concerning other 
procedures for electronic acknowledgment that are consistent with 
the objectives stated above.'' 61 FR at 42160.
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    Finally, although the Commission is delaying the effective date of 
the Interpretative Release pending the receipt and review of additional 
comments, CPOs and CTAs may continue to rely on the positions stated 
therein as ``safe harbor'' positions to aid CTAs and CPOs making use of 
electronic media pending further statements of the Commission's views. 
Additionally, the Pilot Program for electronic filing of CPO and CTA 
disclosure documents will commence on October 15, 1996, as originally 
proposed and is not affected by these extensions.

    Issued in Washington, D.C. on October 15, 1996, by the 
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 96-26949 Filed 10-21-96; 8: 45am]
BILLING CODE 6351-01-M