[Federal Register Volume 63, Number 21 (Monday, February 2, 1998)]
[Rules and Regulations]
[Pages 5232-5233]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2470]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 11


Delegation of Authority to Conduct Investigations in Assistance 
of Foreign Futures Authorities; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rules; correction.

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SUMMARY: On April 11, 1997, the Commission published in the Federal 
Register (62 FR 17702) final rules amending certain provisions of the 
Commission's Rules to formalize the authority of the Director of the 
Division of Enforcement to conduct investigations in assistance of 
foreign futures authorities. The purpose of the amendments was to add 
language to the existing rules in the interest of setting forth agency 
procedure with respect to conducting such investigations. However, text 
from the existing rules was inadvertently omitted in the publication of 
the amendments. This correction serves as a clarification of the 
inadvertent omissions.

DATES: Effective: February 2, 1998.

FOR FURTHER INFORMATION CONTACT: Ethiopis Tafara, Senior International 
Counsel, Division of Enforcement, US Commodity Futures Trading 
Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington, 
DC 20581. Telephone (202) 418-5362.

SUPPLEMENTARY INFORMATION: The Commission is correcting inadvertent 
omissions in the publication of the final rules amending Secs. 11.1 and 
11.2(a) of the Commission's Rules. The amendments expanded the scope of 
17 CFR Part 11 and authorized formally the Director of the Division of 
Enforcement to conduct investigations in assistance of foreign futures 
authorities. As the Supplementary Information accompanying the 
amendments made clear, no other change in Secs. 11.1 and 11.2(a) of the 
Commission's Rules was being made.\1\ However, certain existing 
language in Secs. 11.1 and 11.2(a) of the Commission's Rules relating 
to agency practice was not republished at that time. The omitted 
language serves as an elaboration of the scope of 17 CFR Part 11 as set 
forth in the first sentence of Sec. 11.1 and of the authority delegated 
to the Director of the Division of Enforcement as recited in the first 
sentence of Sec. 11.2(a). Part of the omitted language also describes 
agency practice with respect to certain investigatory activities 
conducted by the Director of

[[Page 5233]]

the Division of Trading and Markets and the Chief Economist and 
Director of the Division of Economic Analysis. So as to avoid any 
confusion of the public, and to ensure its inclusion in this year's 
edition of the Code of Federal Regulations, this correction sets out 
the language relating to agency procedure that was not included with 
the original amendments. Consequently, the Commission is not seeking 
public comment. Similarly, the Commission finds good cause to make this 
correction clarifying the omissions effective immediately.
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    \1\ See 62 FR 17702.
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    In final rule, FR Doc. 97-9399, published on April 11, 1997 (62 FR 
17702) make the following corrections:

PART 11--[CORRECTED]

    1. On page 17702, in the second column, Sec. 11.1 is corrected to 
read as follows:


Sec. 11.1  Scope and applicability of rules.

    The rules of this part apply to investigatory proceedings conducted 
by the Commission or its staff pursuant to Sections 6(c) and 8 and 
12(f) of the Commodity Exchange Act, as amended, 7 U.S.C. 9 and 15 and 
12 and 16(f) (Supp. IV, 1974), to determine whether there have been 
violations of that Act, or the rules, regulations or orders adopted 
thereunder, or, in accordance with the provisions of Section 12(f) of 
the Act, whether there have been violations of the laws, rules or 
regulations relating to futures or options matters administered or 
enforced by a foreign futures authority, or whether an application for 
designation or registration under the Act should be denied. Except as 
otherwise specified herein, the rules will apply to the conduct of 
investigation whether or not the Commission has authorized the use of 
subpoenas in the particular matter to compel the production of 
evidence.
    2. On page 17702, in the third column, Sec. 11.2, paragraph (a) is 
corrected to read as follows:


Sec. 11.2  Authority to conduct investigations.

* * * * *
    (a) The Director of the Division of Enforcement and members of the 
Commission staff acting pursuant to his authority and under his 
direction may conduct such investigations as he deems appropriate to 
determine whether any persons have violated, are violating, or are 
about to violate the provisions of the Commodity Exchange Act, as 
amended, or the rules, regulations or orders adopted by the Commission 
pursuant to that Act, or, in accordance with the provisions of Section 
12(f) of the Act, whether any persons have violated, are violating or 
are about to violate the laws, rules or regulations relating to futures 
or options matters administered or enforced by a foreign futures 
authority, or whether an applicant for registration or designation 
meets the requisite statutory criteria. For this purpose, the Director 
may obtain evidence through voluntary statements and submissions, 
through exercise of inspection powers over boards of trade, reporting 
traders, and persons required by law to register with the Commission, 
or when authorized by order of the Commission, through the issuance of 
subpoenas. The Director shall report to the Commission the results of 
his investigations and recommend to the Commission such enforcement 
action as he deems appropriate. In particular matters the Director of 
the Division of Trading and Markets and the Chief Economist and 
Director of the Division of Economic Analysis, and members of their 
staffs acting within the scope of their respective responsibilities, 
are also authorized to investigate, report and recommend to the 
Commission in accordance with these rules.
* * * * *
    Issued in Washington, DC on January 27, 1998, by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 98-2470 Filed 1-30-98; 8:45 am]
BILLING CODE 6351-01-M