[Federal Register Volume 61, Number 223 (Monday, November 18, 1996)]
[Notices]
[Pages 58677-58678]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-29466]


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COMMODITY FUTURES TRADING COMMISSION


Audit Trail Requirements, Exemption; Minneapolis Grain Exchange

AGENCY: Commodity Futures Trading Commission.

ACTION: Opinion and order.

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SUMMARY: Section 5a(b)(3) of the Commodity Exchange Act (``Act'') 
provides that the audit trail system of each contract market must meet 
the heightened audit trail standards that became effective on October 
28, 1995. However, Section 5a(b)(5) of the Act provides that the 
Commodity Futures Trading Commission (``Commission'') shall, by rule or 
order, make an exemption from the enhanced audit trail requirements for 
low-volume exchanges that can meet certain standards
    The Commission, pursuant to its authority under Section 5a(b)(5), 
has determined to grant the Minneapolis Grain Exchange an exemption 
from Section 5a(b)(3), subject to continuing compliance by the 
Minneapolis Grain Exchange with all statutory requirements for the 
exemption.

DATE: The Commission's order will take effect 30 legislative days or 90 
calendar days, whichever is later, after submission of the order to the 
Committee on Agriculture of the House of Representatives and the 
Committee on Agriculture, Nutrition, and Forestry of the Senate. To 
confirm the date the order will take effect, contact the Division of 
Trading and markets in For Further Information Contact.
FOR FURTHER INFORMATION CONTACT:
Brian Regan, Attorney-Advisor, Division of Trading and Markets, 
Commodity Futures Trading Commission, 3 Lafayette Center, 1155 21st St. 
K Street, N.W., Washington, DC 20581; telephone (202) 418-5490.

SUPPLEMENTARY INFORMATION: On November 12, 1996, the Commission issued 
the following opinion and order as authorized by Section 5a(b)(5) of 
the Act:

Opinion and Order Granting an Exemption From the Requirements of 
Section 5a(b)(3)

    Upon consideration of the available record and pursuant to its 
statutory authority under Section 5a(b)(5) of the Commodity Exchange 
Act (``Act''), the Commission has determined to grant the Minneapolis 
Grain Exchange an exemption from the audit trail requirements of 
Section 5a(b)(3) of the Act, which became effective on October 28, 
1995.
    The Commission finds that the Minneapolis Grain Exchange has 
demonstrated that it satisfies the standards set forth in Section 
5a(b)(5) for an exemption from Section 5a(b)(3). Specifically, the 
Commission finds that the Minneapolis Grain Exchange:
    (1) Has a level of trading volume that is relatively small;
    (2) Is in substantial compliance with the audit trail objectives of 
Section 5a(b)(3); and
    (3) Generally has maintained a high level of compliance with the 
requirements in Section 5a(b) for an effective trade monitoring system.
    Accordingly, the Commission HEREBY ORDERS that the Minneapolis 
Grain Exchange be exempted at this time from the requirements of 
Section 5a(b)(3). As part of this exemption, the Minneapolis Grain 
Exchange must continue to maintain compliance with all statutory 
requirements for the exemption. Under Section 5a(b)(6), this order 
shall become effective 30 legislative days or 90 calendar days, 
whichever is later, after submission of the order to the Committee on 
Agriculture of the House of Representatives and the Committee on 
Agriculture, Nutrition, and Forestry of the Senate.

    Dated: November 12, 1996.

[[Page 58678]]

    By the Commission.
Jean A. Webb.
Secretary to the Commission.
[FR Doc. 96-29466 Filed 11-15-96; 8:45 am]
BILLING CODE 6351-01-M