[Federal Register Volume 69, Number 155 (Thursday, August 12, 2004)]
[Rules and Regulations]
[Pages 49800-49803]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-18344]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 30

RIN 3038-AB45


Foreign Futures and Foreign Options Transactions

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

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SUMMARY: The Commodity Futures Trading Commission (Commission or CFTC) 
is amending part 30 of the Commission's regulations to clarify the 
circumstances under which a foreign futures and options broker (FFOB) 
that is a member of a foreign board of trade must register or obtain an 
exemption from registration. The Commission has amended Rule 30.4(a) to 
clarify that FFOBs are not required to register as futures commission 
merchants (FCMs) pursuant to Rule 30.4, or to seek exemption from 
registration under Rule 30.10, if they only carry the following types 
of U.S.-related accounts that trade on or are subject to the rules of 
non-U.S. exchanges: Customer omnibus accounts for U.S. FCMs; U.S. 
affiliate accounts that are proprietary to the FFOB; and/or U.S. 
accounts that are proprietary to a U.S. FCM. In addition, an FFOB that 
has U.S. bank branches will be eligible for a Rule 30.10 comparability 
exemption or exemption from registration under Rule 30.4 based upon 
compliance with conditions specified in Rule 30.10(b)(1)-(6) and 
thereby will be able to carry any U.S.-related account for trades on 
non-U.S. exchanges. The Commission has also deleted Rule 30.4(e), which 
required an FCM registered under part 30 to maintain a U.S. office.

EFFECTIVE DATE: September 13, 2004.

FOR FURTHER INFORMATION CONTACT: Lawrence B. Patent, Deputy Director, 
or Susan A. Elliott, Special Counsel, Compliance and Registration 
Section, Division of Clearing and Intermediary Oversight, Commodity 
Futures Trading Commission. Three Lafayette Centre, 1155 21st Street, 
NW., Washington, DC 20581. Telephone: (202) 418-5439 or (202) 418-5464, 
or electronic mail: [email protected] or [email protected].

SUPPLEMENTARY INFORMATION: 

I. Background

    The Commission has adopted final rules that were first published 
for comment on August 26, 1999,\1\ and republished on April 6, 2004.\2\ 
The Commission proposed amending part 30 of its rules to clarify when 
foreign futures and options brokers that are members of a foreign board 
of trade or affiliates of U.S. FCMs must register under the Act or 
obtain an exemption from registration under the Act.
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    \1\ 64 FR 46613 (August 26, 1999).
    \2\ 69 FR 17998 (April 6, 2004). The reproposal was 
substantially the same, except that the 1999 proposal required an 
entity with a U.S. bank branch applying for a Rule 30.10 exemption 
to file a specified set of representations with the National Futures 
Association (NFA), while the 2004 reproposal listed the 
representations as conditions for compliance with the exemption, in 
order to reduce the paperwork necessitated by the rule amendments.
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    The Commission's part 30 rules govern, generally, the solicitation 
and sale of foreign futures \3\ and foreign option \4\ contracts to 
customers \5\ located in the U.S. Rule 30.4(a) requires any person who 
solicits or accepts orders and money for foreign futures or foreign 
option contracts from foreign futures or foreign options customers \6\ 
to register as an FCM under the Act. Rule 30.10 permits any person to 
seek exemption from any provision of part 30.
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    \3\ ``Foreign futures'' as defined in part 30 means ``any 
contract for the purchase or sale of any commodity for future 
delivery made, or to be made, on or subject to the rules of any 
foreign board of trade.'' Commission Rule 30.1(a).
    \4\ ``Foreign option'' as defined in part 30 means ``any 
transaction or agreement which is or is held out to be of the 
character of, or is commonly known to the trade as, an ``option'', 
``privilege'', ``indemnity'', ``bid'', ``offer'', ``put'', ``call'', 
``advance guaranty'', or ``decline guaranty'', made or to be made on 
or subject to the rules of any foreign board of trade.'' Commission 
Rule 30.1(b).
    \5\ Pursuant to Commission Rule 30.1(c), ``Foreign futures or 
foreign options customer'' means ``any person located in the United 
States, its territories or possessions who trades in foreign futures 
or foreign options: Provided, That an owner or holder of a 
proprietary account as defined in paragraph (y) of [Commission Rule 
1.3] shall not be deemed to be a foreign futures or foreign options 
customer within the meaning of Sec. Sec.  30.6 and 30.7 of this 
part.''
    \6\ See n. 5, supra.
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    Under Rule 30.10 and Appendix A thereto, the CFTC may exempt an 
FFOB from compliance with certain rules, including those rules 
pertaining to registration, provided that a comparable regulatory 
system exists in the firm's home country and that certain safeguards 
are in place to protect U.S. investors. This exemption process requires 
that the CFTC issue an Order pursuant to Rule 30.10 granting general 
relief to the foreign regulator or self-regulatory organization and 
that individual firms be granted confirmation of relief upon proper 
application. Generally, a firm that confirms relief under Rule 30.10 
must be located outside the U.S. and this relief permits a firm to 
solicit or accept orders from U.S.-located customers for trading on or 
subject to the rules of exchanges located outside of the U.S.

II. Final Rules

A. Registration Exemptions

    As explained in the rule proposal, the Commission believes that it 
can provide clarity to its registration requirements under part 30 by 
specifically addressing, in Rule 30.4, when registration by an FFOB is 
not required. Thus, the Commission has amended Rule 30.4(a)

[[Page 49801]]

to clarify that FFOBs are not required to register as FCMs if they only 
carry the following types of U.S.-related accounts that trade on or 
subject to the rules of non-U.S. exchanges: (1) Foreign futures and 
options customer omnibus accounts \7\ of U.S. FCMs; (2) its own 
proprietary accounts (including accounts of its U.S. affiliates and 
others whose accounts are ``proprietary'' to the FFOB under CFTC Rule 
1.3(y)); and/or (3) proprietary accounts of a U.S. FCM. These FFOBs, 
however, otherwise remain subject to provisions of part 30 that are not 
dependent upon registration as an FCM, such as the antifraud provision 
of Rule 30.9. The exemption from registration is self-executing and 
does not require entities seeking to avail themselves of the exemption 
to file a petition under Rule 30.10.
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    \7\ ``Foreign futures and options customer omnibus account'' is 
defined at Rule 30.1(d), 17 CFR 30.1(d) (2003).
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    An FFOB is eligible for Rule 30.10 relief notwithstanding the 
presence in the U.S. of a separately-incorporated affiliate or 
subsidiary that engages in a related activity if the following 
procedural requirements are met: (1) The applicant must identify the 
name and location of any affiliate or subsidiary in the U.S. which acts 
in a related capacity (e.g., bank, broker-dealer or dealer in a cash 
commodity); (2) the applicant must represent that it will not accept 
any futures-related business from any of its affiliates or subsidiaries 
in the U.S. other than a proprietary account of the affiliate or 
subsidiary, unless such entities are registered with the CFTC in the 
appropriate capacity; and (3) the applicant must represent that it has 
informed its affiliates or subsidiaries in writing that they may not 
introduce to, or solicit futures business on behalf of, the applicant, 
unless such entities are registered with the CFTC in the appropriate 
capacity.
    As explained in the rule proposal, in certain cases CFTC staff has 
permitted an FFOB with U.S. bank branches to obtain a Rule 30.10 
exemption under certain conditions on the grounds that a bank branch is 
viewed as a separate legal entity in many respects under the U.S. 
federal bank regulatory scheme. This rule codifies those staff 
positions as set forth in interpretative statements and no-action 
letters.\8\ The Commission is amending Rule 30.10 to clarify that an 
FFOB with U.S. bank branches may be eligible for confirmation of Rule 
30.10 relief if it complies with the following conditions:
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    \8\ See n. 12, infra.
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    (1) No U.S. bank branch, office or division will engage in the 
trading of futures or options on futures within or from the U.S., 
except for its own account; \9\
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    \9\ That is, the ``house'' account of the entity. This is the 
``narrow'' definition of the term ``proprietary,'' as set forth in 
Commission Rule 1.17(b)(3).
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    (2) No U.S. bank branch, office or division will refer any foreign 
futures or foreign options customer to the FFOB or otherwise be 
involved in the FFOB's business in foreign futures and foreign option 
transactions;
    (3) No U.S. bank branch, office or division will solicit any 
foreign futures or foreign options business or purchase or sell foreign 
futures or foreign option contracts on behalf of any foreign futures or 
foreign option customers or otherwise engage in any activity subject to 
regulation under Part 30 or engage in any clerical duties related 
thereto. If any U.S. division, office or branch desires to engage in 
such activities, it will only do so through an appropriate CFTC 
registrant;
    (4) The FFOB will maintain outside the U.S. all contract documents, 
books and records regarding foreign futures and option transactions;
    (5) The FFOB and each of its U.S. bank branches, offices or 
divisions agree to provide upon request of the Commission, the NFA or 
the U.S. Department of Justice, access to their books and records for 
the purpose of ensuring compliance with the undertakings and consent to 
make such records available for inspection at a location in the U.S. 
within 72 hours after service of the request; \10\ and
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    \10\ The Commission has recognized that Japanese and Hong Kong 
laws require that original books and records of any firm located 
within either country be maintained within the local jurisdiction. 
See CFTC Staff Letter 95-83 [1994-1996 Transfer Binder] Comm. Fut. 
L. Rep. (CCH) ] 26,559 at 43,490 (September 20, 1995) (no-action 
position permitting the Japanese and Hong Kong affiliates of a U.S. 
FCM to accept directly foreign futures and options orders from 
certain sophisticated U.S. customers); 62 FR 47792 (September 11, 
1997) (extending the relief under CFTC Staff Letter 95-83 to the 
Japanese and Hong Kong affiliates of all U.S. FCMs). That letter is 
now superceded by this rule. For the purpose of this rulemaking, the 
Commission will allow foreign futures and options brokers in Japan 
and Hong Kong to satisfy the books and records requirement by: (1) 
Providing within 72 hours authenticated copies of its books and 
records upon request of a Commission, NFA or U.S. Department of 
Justice representative; (2) providing within 72 hours access to 
original books and records in the foreign jurisdiction; (3) waiving 
objection to the admissibility of the copies as evidence in a 
Commission, NFA or U.S. Department of Justice action against the 
foreign futures and options broker; and (4) agreeing in the event of 
a proceeding to provide a witness to authenticate copies of books 
and records given to the Commission, NFA, or the U.S. Department of 
Justice. The Commission is clarifying that the books and records 
from a Japanese or Hong Kong FFOB are also subject to request by NFA 
and U.S. Department of Justice representatives, as is the case for 
an FFOB in any other jurisdiction.
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    (6) Although it will continue to engage in normal commercial 
activities, no U.S. bank branch, office or division will establish 
relationships in the U.S. with the broker's foreign futures and foreign 
options customers for the purpose of facilitating or effecting 
transactions in foreign futures and foreign option contracts in the 
U.S.
    Pursuant to these rule amendments, an FFOB that is not required to 
register under Rule 30.4(a) because it solely carries a U.S. customer 
omnibus account, an account that would be classified as proprietary to 
the broker under Commission Rule 1.3(y), or a U.S. FCM's proprietary 
account, is also not required to register solely because it has U.S. 
bank branches, so long as it complies with the conditions specified in 
Rule 30.10(b)(1)-(6), as listed above.\11\
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    \11\ The rationale for providing relief to foreign firms with 
bank branches in the U.S. is that those branches are otherwise 
regulated by the banking authorities. Although this rationale would 
be inapplicable to non-bank branches, there may be other reasons why 
exemption from registration under part 30 would be appropriately 
granted upon application by Commission staff.
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    The main difference in the two types of exemptions referred to 
herein relate to whether the firm seeking exemption is otherwise 
regulated and what type of accounts it may handle. The exemptions in 
Rule 30.4 apply to any foreign firm, irrespective of whether it is a 
member of an exchange or other self-regulatory organization, or a 
regulatee of a foreign regulatory authority, that has received a 
Commission order under Rule 30.10. However, such an entity may only 
handle those U.S.-related accounts described above, customer omnibus or 
proprietary to itself or to a U.S. FCM. By contrast, the firm seeking 
confirmation of relief under Rule 30.10 must be otherwise regulated by 
an entity that has received a Commission order under Rule 30.10, which 
relief permits the firm to handle any U.S.-related accounts. In either 
case, if the firm in question has bank branches, the conditions set 
forth in Rule 30.10(b)(1)-(6) must be met.
    The Commission's adoption of these rule amendments supercedes prior 
staff positions on these subjects.\12\ Because

[[Page 49802]]

the rule amendments contain no substantive changes to prior staff 
interpretative statements and no-action letters, no party should be 
disadvantaged. The new rules will make these staff positions more 
accessible and more widely understood and obviate the need for 
individualized relief.
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    \12\ See CFTC Staff Letter 87-7 (customer omnibus accounts), 
[1987-1990 Transfer Binder] Comm. Fut. L. Rep. (CCH) ] 23,972 
(November 17, 1987); CFTC Staff Letter 88-15 (proprietary accounts), 
[1987-1990 Transfer Binder] Comm. Fut. L. Rep. (CCH) ] 24,296 
(August 10, 1988); CFTC Staff Letter 89-5 (bank branches), [1987-
1990 Transfer Binder] Comm. Fut. L. Rep. (CCH) ] 24,471 (December 8, 
1988); and CFTC Staff Letter 89-11 (bank branches), [1987-1990 
Transfer Binder] Comm. Fut. L. Rep. (CCH) ] 24,516 (August 15, 
1989).
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    Two comments were submitted in response to the Commission's 
reproposal. Both were generally supportive of the rule amendments. One 
comment suggested clarification of the applicability of amended Rule 
30.4(a), because the preamble to the reproposal limited its 
applicability to FFOBs with foreign futures and foreign options 
customer omnibus accounts of U.S. FCMs ``but [that] have no direct 
contact with the customers whose accounts comprise the omnibus 
accounts.'' \13\ The commenter was concerned that the quoted phrase 
could be read as contradicting Commission Rule 30.12, which permits 
certain foreign firms to accept and to execute orders directly from 
U.S. customers without having to register with the Commission. In 
response to this comment, the Commission emphasizes that the amended 
Rule 30.4(a) in no way limits the scope of Rule 30.12.
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    \13\ 69 FR 17988 at 17999 (April 6, 2004).
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B. U.S. Office

    Finally, the Commission is deleting Rule 30.4(e) to eliminate an 
inconsistency and source of potential confusion. Rule 30.4(e) stated 
that ``persons required to be registered as [an FCM] must maintain an 
office in the United States which is managed by an individual domiciled 
in the United States and registered with the Commission as an 
associated person.'' Rule 30.4(e) was originally adopted because of a 
concern that unscrupulous firms might establish their base of 
operations offshore.\14\
    A few months after Rule 30.4(e) was adopted as a provision of the 
original Part 30 rules, a staff interpretation clarified that a policy 
basis for the provision was the assurance that a foreign FCM can 
produce its books and records--but that if it can otherwise demonstrate 
that capability and its willingness to do so, that is sufficient.\15\ 
NFA implemented this interpretation and it is currently set forth in 
Rule 802. Paragraph (a)(9)(i) of that rule requires production of 
records in the U.S. on 72 hours' notice, except that FCMs must produce 
on 24 hours' notice except for good cause shown. A foreign applicant 
also certifies, per paragraph (a)(9)(iv), that it is not subject to any 
blocking, privacy or secrecy laws that would interfere with or create 
an obstacle to full inspection of the applicant's books and records by 
the CFTC, the Department of Justice, and NFA.
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    \14\ 52 FR 28980 at 28990 (August 5, 1987).
    \15\ The letter, directed to NFA, stated that it would be 
``other good cause'' to deny registration to a foreign-located firm 
``unless the applicant has an office in the United States, its 
territories or possessions, or the applicant is otherwise able to 
demonstrate that it has adopted appropriate procedures for producing 
its books and records in the United States expeditiously upon 
request, and the applicant can and does represent that it will 
comply with such procedures.'' Staff Letter 87-10, [1987-1990 
Transfer Binder] Comm. Fut. L. Rep. (CCH) ] 23,999 (Dec. 9, 1987). 
(Emphasis in original.)
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    Although the coverage of Rule 30.4(e) was limited strictly to those 
persons required to register as FCMs under Rule 30.4 (and therefore 
engaged in transactions on or subject to the rules of foreign boards of 
trade), the provision has no counterpart with respect to trades done on 
designated contract markets by foreign firms, and does not include 
foreign-based commodity trading advisors (CTAs), commodity pool 
operators (CPOs) and introducing brokers (IBs).
    In light of these factors, the Commission is revoking Rule 30.4(e). 
The Commission notes that foreign firms seeking to solicit or accept 
orders and funds related thereto from U.S.-located customers for 
transactions on non-U.S. exchanges do not apply for registration as 
FCMs under Rule 30.4, but instead submit the appropriate certification 
to confirm exemption relief granted by Commission order under Rule 
30.10 to the firms' foreign regulator or self-regulatory organization. 
The Commission also notes that, as of September 30, 2004, there were 
more than 470 foreign-based IBs, CPOs and CTAs and the Commission has 
not observed any special concerns as a result.

III. Related Matters

A. Administrative Procedure Act

    The Administrative Procedure Act generally requires that, before an 
agency adopts a rule, the agency provide an opportunity for notice and 
comment thereon. That opportunity is not required, however, when the 
agency for good cause finds such procedure unnecessary. The Commission 
is eliminating Rule 30.4(e) without provision for notice and comment 
because such procedure is unnecessary, per section 553(b)(3)(B) of the 
Administrative Procedure Act, 5 U.S.C. 553(b)(3)(B) (2004). Rule 
30.4(e) has never been applied because, as discussed above, foreign 
firms seeking to solicit or accept orders and funds related thereto 
from U.S.-located customers for transactions on non-U.S. exchanges do 
not apply for registration as FCMs under Rule 30.4, but instead submit 
the appropriate certification to confirm exemption relief granted by 
Commission order under Rule 30.10 to the firms' foreign regulator or 
self-regulatory organization. In addition, Rule 30.4(e) may be 
eliminated because its purposes are now accomplished by NFA's Rule 802, 
as discussed above.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601-611, 
requires that agencies, in proposing rules, consider the impact of 
those rules on small businesses. The Commission has previously 
established certain definitions of ``small entities'' to be used by the 
Commission in evaluating the impact of its rules on such entities in 
accordance with the RFA.\16\ In proposing these amendments to part 30, 
the Commission stated that they would affect foreign members of foreign 
boards of trade who perform the functions of an FCM, some of which may 
be foreign affiliates of U.S. FCMs. The Commission previously has 
determined that, based upon the fiduciary nature of the FCM/customer 
relationships, as well as the requirement that FCMs meet minimum 
financial requirements, FCMs should be excluded from the definition of 
small entities. No comment was received regarding the impact of these 
amendments on small businesses.
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    \16\ 47 FR 18618-18621 (April 30, 1982).
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C. Paperwork Reduction Act

    As required by the Paperwork Reduction Act of 1995,\17\ the 
Commission submitted a copy of the proposed rule amendments to the 
Office of Management and Budget for its review. The Commission did not 
receive any public comments relative to its analysis of paperwork 
burdens associated with this rulemaking.
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    \17\ Pub. L. 104-13 (May 13, 1995).
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D. Cost-Benefit Analysis

    Section 15(a) of the Act requires the Commission to consider the 
costs and benefits of its action before issuing a new regulation under 
the Act. By its terms, section 15(a) does not require the Commission to 
quantify the costs and benefits of a new regulation or to determine 
whether the benefits of the proposed regulation outweigh its costs. 
Rather, section 15(a) simply requires the Commission to ``consider the 
costs and benefits'' of its action. Section 15(a)

[[Page 49803]]

further specifies that costs and benefits shall be evaluated in light 
of five broad areas of market and public concern: Protection of market 
participants and the public; efficiency, competitiveness, and financial 
integrity of futures markets; price discovery; sound risk management 
practices; and other public interest considerations. Accordingly, the 
Commission could in its discretion give greater weight to any one of 
the five enumerated areas and could in its discretion determine that, 
notwithstanding its costs, a particular rule was necessary or 
appropriate to protect the public interest or to effectuate any of the 
provisions or to accomplish any of the purposes of the Act.
    The Commission published an analysis of costs and benefits when it 
proposed the rule amendments that have now been adopted.\18\ It did not 
receive any public comments pertaining to the analysis.
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    \18\ 69 FR 17988 at 18000 (April 6, 2004).
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List of Subjects in 17 CFR Part 30

    Definitions, Foreign futures, Foreign options, Reporting and 
recordkeeping requirements, Registration requirements.


0
In consideration of the foregoing, and pursuant to the authority 
contained in the Commodity Exchange Act and, in particular, sections 
2(a)(1), 4(b), 4c and 8 thereof, 7 U.S.C. 2, 6(b), 6c and 12a, and 
pursuant to the authority contained in 5 U.S.C. 552 and 552b, the 
Commission hereby amends Chapter I of Title 17 of the Code of Federal 
Regulations as follows:

PART 30--FOREIGN OPTIONS AND FOREIGN FUTURES TRANSACTIONS

0
1. The authority citation for part 30 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 4, 6, 6c and 12a, unless otherwise 
noted.


0
2. Section 30.4 is amended by revising paragraph (a) to read as 
follows, and by removing paragraph (e):


Sec.  30.4  Registration required.

* * * * *
    (a) To solicit or accept orders for or involving any foreign 
futures contract or foreign options transaction and, in connection 
therewith, to accept any money, securities or property (or extend 
credit in lieu thereof) to margin, guarantee or secure any trades or 
contracts that result or may result therefrom, unless such person shall 
have registered, under the Act, with the Commission as a futures 
commission merchant and such registration shall not have expired nor 
been suspended nor revoked; provided that, a foreign futures and 
options broker (as defined in Sec.  30.1(e)) is not required to 
register as a futures commission merchant: one, in order to accept 
orders from or to carry a U.S. futures commission merchant's foreign 
futures and options customer omnibus account, as that term is defined 
in Sec.  30.1(d); two, in order to accept orders from or to carry a 
U.S. futures commission merchant's proprietary account, as that term is 
defined in paragraph (y) of Sec.  1.3 of this chapter; and/or three, in 
order to accept orders from or carry a U.S. affiliate account which is 
proprietary to the foreign futures and options broker, as ``proprietary 
account'' is defined in paragraph (y) of Sec.  1.3 of this chapter. 
Such foreign futures and options broker remains subject to all other 
applicable provisions of the Act and of the rules, regulations and 
orders thereunder. Foreign futures and options brokers that have U.S. 
bank branches, offices or divisions engaging in the activity listed in 
this paragraph are not required to register as futures commission 
merchants if they comply with the conditions listed in Sec.  
30.10(b)(1) through (6).
* * * * *

0
3. Section 30.10 is amended by designating the existing text as 
paragraph (a) and adding paragraph (b) to read as follows:


Sec.  30.10  Petitions for exemption.

* * * * *
    (b) Any foreign person that files a petition for an exemption under 
this section shall be eligible for such an exemption notwithstanding 
its presence in the United States through U.S. bank branches or 
divisions if, in conjunction with a petition for confirmation of relief 
granted under an existing Commission order issued pursuant to this 
section, it complies with the following conditions:
    (1) No U.S. bank branch, office or division will engage in the 
trading of futures or options on futures within or from the United 
States, except for its own proprietary account;
    (2) No U.S. bank branch, office or division will refer any foreign 
futures or foreign options customer to the foreign person or otherwise 
be involved in the foreign person's business in foreign futures or 
foreign option transactions;
    (3) No U.S. bank branch, office or division will solicit any 
foreign futures or foreign option business or purchase or sell foreign 
futures or foreign option contracts on behalf of any foreign futures or 
foreign option customers or otherwise engage in any activity subject to 
regulation under this part or engage in any clerical duties related 
thereto. If any U.S. division, office or branch desires to engage in 
such activities, it will only do so through an appropriate Commission 
registrant;
    (4) The foreign person will maintain outside the United States all 
contract documents, books and records regarding foreign futures and 
foreign option transactions;
    (5) The foreign person and each of its U.S. bank branches, offices 
or divisions agree to provide upon request of the Commission, the 
National Futures Association or the U.S. Department of Justice, access 
to their books and records for the purpose of ensuring compliance with 
the foregoing undertakings and consent to make such records available 
for inspection at a location in the United States within 72 hours after 
service of the request; and
    (6) Although it will continue to engage in normal commercial 
activities, no U.S. bank branch, office or division of the foreign 
person will establish relationships in the United States with the 
applicant's foreign futures or foreign option customers for the purpose 
of facilitating or effecting transactions in foreign futures or foreign 
option contracts.


    Dated: August 4, 2004.

    By the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 04-18344 Filed 8-11-04; 8:45 am]
BILLING CODE 6351-01-P