[Unified Agenda of Federal Regulatory and Deregulatory Actions]
[Commodity Futures Trading Commission Semiannual Regulatory Agenda]
[From the U.S. Government Printing Office, www.gpo.gov]



[[Page 23925]]




_______________________________________________________________________


Part XLVII



Commodity Futures Trading Commission



_______________________________________________________________________

Semiannual Regulatory Agenda

[[Page 23926]]





COMMODITY FUTURES TRADING COMMISSION (CFTC)                            


  



_______________________________________________________________________

COMMODITY FUTURES TRADING COMMISSION

17 CFR Ch. I

Regulatory Flexibility Agenda

AGENCY: Commodity Futures Trading Commission.

ACTION: Semiannual regulatory agenda.

_______________________________________________________________________

SUMMARY: The Commodity Futures Trading Commission, in accordance with 
the requirements of the Regulatory Flexibility Act, is publishing a 
semiannual agenda of significant rules which the Commission expects to 
propose or promulgate over the next year. The Commission welcomes 
comments from small entities and others on the agenda.

ADDRESSES: Comments should be sent to: Gerald P. Smith, Special 
Assistant to the Executive Director, Commodity Futures Trading 
Commission, 1155 21st Street NW., Washington, DC 20581, (202) 418-5156.

SUPPLEMENTARY INFORMATION: The Regulatory Flexibility Act, 5 U.S.C. 601 
et seq. (RFA), sets forth a number of requirements for agency 
rulemaking. Among other things, the RFA requires that:

    (a) During the months of April and October of each year, each 
agency shall publish in the Federal Register a regulatory 
flexibility agenda which shall contain:

    (1) A brief description of the subject area of any rule which 
the agency expects to propose or promulgate which is likely to have 
a significant economic impact on a substantial number of small 
entities;

    (2) A summary of the nature of any such rule under 
consideration for each subject area listed in the agenda pursuant 
to paragraph (1), the objectives and legal basis for the issuance 
of the rule, and an approximate schedule for completing action on 
any rule for which the agency has issued a general notice of 
proposed rulemaking; and

    (3) The name and telephone number of an agency official 
knowledgeable concerning the items listed in paragraph (1).

5 U.S.C. 602(a). The Commission has prepared an agenda of significant 
rules which it presently expects may be considered during the course of 
the next year, irrespective of their potential impact on small 
entities.1


1 The Commission has published its definition of small entity to be 
used by the Commission in connection with rulemaking proceedings. 47 FR 
18618 (April 30, 1982). Pursuant to those definitions, the Commission 
is not required to list many of the agenda items contained in this 
regulatory flexibility agenda. See 5 U.S.C. 602(a)(1). Moreover, the 
Commission has previously certified, pursuant to section 605 of the 
RFA, 5 U.S.C. 605, that certain items contained in this agenda will not 
have a significant economic impact on a substantial number of small 
entities. Accordingly, listing of a rule in this regulatory flexibility 
agenda should not in any event be taken as a determination that a rule, 
when proposed or promulgated, will in fact require a regulatory 
flexibility analysis. However, the Commission hopes that the 
publication of an agenda, which includes significant rules, regardless 
of their potential impact on small entities, may serve the public 
generally by providing an early and meaningful opportunity to 
participate in and comment on the formulation of new or revised 
regulations.

    The Commission's agenda represents its best estimate of 
significant rules which will be considered over the next 12 
months.2 In this regard, section 602(d) of the RFA, 5 U.S.C. 
602(d), provides: ``Nothing in [section 602] precludes an agency 
from considering or acting on any matter not included in a 
regulatory flexibility agenda or requires an agency to consider or 
act on any matter listed in such agenda.''


2 In addition to publishing the regulatory flexibility agenda, the 
Commission also makes available to the public, on a monthly basis, a 
calendar and, on a weekly basis, an advisory, which list rules that the 
Commission is considering or will consider in the near future.

    The Commission's April 1996 regulatory flexibility agenda is 
set forth below.

Issued in Washington, DC, on March 12, 1996, by the Commission.

Jean A. Webb,

Secretary of the Commission.

                                               Proposed Rule Stage                                              
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4102        Procedures for Involuntary Bulk Transfers or Liquidations of Customer Accounts........    3038-AA77 
4103        Prohibition on Voting by Interested Members...........................................    3038-AB03 
4104        Self-Regulatory Organization Automated Systems........................................    3038-AB14 
----------------------------------------------------------------------------------------------------------------


                                                Final Rule Stage                                                
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4105        Risk Assessment for Holding Company Systems...........................................    3038-AB01 
4106        Account Identification for Orders Submitted on Behalf of Multiple Customer Accounts...    3038-AB08 
4107        Ethics Training for Registrants: Proficiency Training for Providers...................    3038-AB10 
4108        Minimum Financial Requirements, Prepayment of Subordinated Debt and Gross Collection                
            of Exchange-Set Margin for Omnibus Accounts...........................................    3038-AB12 
4109        Financial Reporting and Debt-Equity Ratio Requirements for Futures Commission                       
            Merchants and Introducing Brokers.....................................................    3038-AB13 
----------------------------------------------------------------------------------------------------------------


[[Page 23927]]



                                                Long-Term Actions                                               
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4110        Early Warning Reporting Requirements for Futures Commission Merchants.................    3038-AB11 
----------------------------------------------------------------------------------------------------------------


                                                Completed Actions                                               
----------------------------------------------------------------------------------------------------------------
                                                                                                     Regulation 
 Sequence                                           Title                                            Identifier 
  Number                                                                                               Number   
----------------------------------------------------------------------------------------------------------------
4111        Ethics Training for Registrants.......................................................    3038-AB09 
----------------------------------------------------------------------------------------------------------------

_______________________________________________________________________


COMMODITY FUTURES TRADING COMMISSION (CFTC)         Proposed Rule Stage


  



_______________________________________________________________________




4102. PROCEDURES FOR INVOLUNTARY BULK TRANSFERS OR LIQUIDATIONS OF 
CUSTOMER ACCOUNTS

Priority:  Substantive, Nonsignificant

Legal Authority:  7 USC 6d; 7 USC 6f; 7 USC 6g; 7 USC 6k; 7 USC 12a

CFR Citation:  17 CFR 1.68

Legal Deadline: None

Abstract: The CFTC will undertake a rulemaking proceeding to establish 
requirements concerning procedures to be followed by futures commission 
merchants and introducing brokers when bulk transfers or liquidations 
of customer accounts are made due to cessation or suspension of 
business or other special circumstances affecting the registrant.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            09/00/96
NPRM Comment Period End         11/00/96

Small Entities Affected: Undetermined

Government Levels Affected: None

Agency Contact: Lawrence B. Patent, Associate Chief Counsel, Division 
of Trading and Markets, Commodity Futures Trading Commission, 1155 21st 
Street NW., Washington, DC 20581
Phone: 202 418-5439

RIN: 3038-AA77
_______________________________________________________________________




4103. PROHIBITION ON VOTING BY INTERESTED MEMBERS

Priority:  Other Significant

Legal Authority:  7 USC 7a(17)

CFR Citation:  17 CFR 1.67

Legal Deadline: None

Abstract: The regulation will implement the provisions of section 217 
of the Futures Trading Practices Act of 1992, which require contract 
markets to adopt rules to avoid conflicts of interest in deliberations 
and voting by members of the governing board and disciplinary and other 
oversight committees. The rulemaking will define the relationships 
between a named party in interest and a member of the governing board 
or committee that would require abstention from deliberations and 
voting. The rulemaking will also provide guidelines on situations that 
would require a member to abstain from voting on a significant action 
because of a substantial financial interest in the outcome of the vote, 
based on positions held personally or at an affiliated firm, as well as 
on other matters addressed by the statute. The action potentially 
impacts the selection and composition of contract market governing 
boards and committees.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            05/00/96
NPRM Comment Period End         07/00/96
Final Action                    10/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: David P. Van Wagner, Special Counsel, Division of 
Trading and Markets, Commodity Futures Trading Commission, 1155 21st 
Street NW., Washington, DC 20581
Phone: 202 418-5481

RIN: 3038-AB03
_______________________________________________________________________




4104.  SELF-REGULATORY ORGANIZATION AUTOMATED SYSTEMS

Priority:  Other Significant

Legal Authority:  7 USC 5; 7 USC 6; 7 USC 7; 7 USC 12; 7 USC 12a; 7 USC 
21

CFR Citation:  17 CFR 1.68

Legal Deadline: None

Abstract: The proposed regulation would require due diligence by self-
regulatory organizations (SROs) in oversight and review of automated 
trading systems, recordkeeping, reporting and demonstration of 
compliance with due diligence requirements with periodic independent 
reviews of systems.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            05/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lois J. Gregory, Attorney-Advisor, Commodity Futures 
Trading Commission, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5483
Fax: 202 418-5536

RIN: 3038-AB14
_______________________________________________________________________

[[Page 23928]]




COMMODITY FUTURES TRADING COMMISSION (CFTC)            Final Rule Stage


  



_______________________________________________________________________




4105. RISK ASSESSMENT FOR HOLDING COMPANY SYSTEMS

Priority:  Other Significant

Legal Authority:  7 USC 6f(c)

CFR Citation:  17 CFR 1.14; 17 CFR 1.15

Legal Deadline: None

Abstract: On December 21, 1994, the Commission adopted, as phase 1 of 
the risk assessment rulemaking, final rules with respect to maintenance 
and filing of organizational charts, risk management policies, 
procedures and systems, and consolidated and consolidating financial 
statements. It also proposed ``trigger'' event reporting in the event 
of a 20 percent decline in a futures commission merchant's (FCM's) 
adjusted net capital. The Commission deferred action on the balance of 
the proposed rules, which related to reporting of position data and 
other data concerning FCM affiliates. With respect to the second phase 
of the rulemaking process, the Commission's staff will continue to work 
with other financial regulators, particularly the Securities and 
Exchange Commission, to design a reporting framework that is harmonized 
across regulatory structures and, to the extent possible, reflective of 
a consensus as to which data are most meaningful to regulators and can 
be provided without undue burden.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            03/01/94                     59 FR 9689
NPRM Comment Period End         07/01/94
Final Action                    12/31/96
Risk Assessment for Holding Company Systems  Phase I 12/28/94 (59 FR 
66674)

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawrence T. Eckert, Attorney Advisor, Division of 
Trading and Markets, Commodity Futures Trading Commission, 1155 21st 
Street NW., Washington, DC 20581
Phone: 202 418-5449

RIN: 3038-AB01
_______________________________________________________________________




4106. ACCOUNT IDENTIFICATION FOR ORDERS SUBMITTED ON BEHALF OF MULTIPLE 
CUSTOMER ACCOUNTS

Priority:  Substantive, Nonsignificant

Legal Authority:  7 USC 7; 7 USC 7a; 7 USC 7b; 7 USC 8; 7 USC 12a; 7 
USC 12c

CFR Citation:  17 CFR 1.35

Legal Deadline: None

Abstract: These rule amendments permit consolidated futures orders for 
multiple accounts to be placed and executed on contract markets without 
individual customer identification at time of entry or execution. 
Depending on the accounts, the person placing the order would identify 
accounts and either pre-file an allocation plan or certify certain 
facts.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            05/03/93                    58 FR 26270
NPRM Comment Period End         06/17/93
Final Action                    11/00/96
Final Action Effective          12/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Duane C. Andresen, Attorney Advisor, Division of 
Trading and Markets, Commodity Futures Trading Commission, 1155 21st 
Street NW., Washington, DC 20581
Phone: 202 418-5492

RIN: 3038-AB08
_______________________________________________________________________




4107. ETHICS TRAINING FOR REGISTRANTS: PROFICIENCY TRAINING FOR 
PROVIDERS

Priority:  Substantive, Nonsignificant

Legal Authority:  7 USC 1a; 7 USC 6d; 7 USC 6e; 7 USC 6g; 7 USC 6m; 7 
USC 6p; 7 USC 12a; 7 USC 21

CFR Citation:  17 CFR 3.34

Legal Deadline: None

Abstract: The CFTC has proposed additional amendments to its rules 
governing ethics training for registrants that would require that 
persons who seek to provide ethics training must: (1) present 
satisfactory evidence that they meet a proficiency testing requirement 
established by a registered futures association; and (2) possess a 
minimum of three years relevant experience. The CFTC also proposed to 
amend Rule 3.34 to eliminate the provision which permits State-
accredited entities to provide ethics training without being subject to 
the requirements pertaining to other providers under the rule.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            12/14/95                    60 FR 64132
NPRM Comment Period End         01/16/96
Final Action                    04/00/96
Final Action Effective          05/00/96

Small Entities Affected: None

Government Levels Affected: Undetermined

Agency Contact: Myra R. Silberstein, Attorney/Advisor, Commodity 
Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5443

RIN: 3038-AB10
_______________________________________________________________________




4108.  MINIMUM FINANCIAL REQUIREMENTS, PREPAYMENT OF 
SUBORDINATED DEBT AND GROSS COLLECTION OF EXCHANGE-SET MARGIN FOR 
OMNIBUS ACCOUNTS

Priority:  Other Significant

Legal Authority:  7 USC 6f; 7 USC 6g; 7 USC 12a

CFR Citation:  17 CFR 1.12; 17 CFR 1.17; 17 CFR 1.58

Legal Deadline: None

Abstract: The CFTC is proposing (1) to increase the minimum dollar 
amount of adjusted net capital for FCMs and IBs to $250,000 and 
$30,000, respectively; (2) to codify a staff no-action letter which 
provides generally that prepayment of subordinated debt by FCMs and IBs 
need be approved only by a firm's designated self-regulatory 
organization and not also be the CFTC (although CFTC approval would be 
required if the prepayment would result in a reduction of 20 percent or 
more of a firm's adjusted net capital); and (3) to require that omnibus 
accounts carried by FCMs for foreign brokers be margined on a gross 
basis. These proposals are intended to conform Commission rules with 
those of industry self-regulatory organizations and codify an existing 
staff interpretation.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            12/13/95                    60 FR 63995

[[Page 23929]]

NPRM Comment Period End         01/12/96
Final Action                    05/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawrence B. Patent, Associate Chief Counsel, Commodity 
Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5439

RIN: 3038-AB12
_______________________________________________________________________




4109.  FINANCIAL REPORTING AND DEBT-EQUITY RATIO REQUIREMENTS 
FOR FUTURES COMMISSION MERCHANTS AND INTRODUCING BROKERS

Priority:  Other Significant

Legal Authority:  17 USC 6f; 17 USC 6g; 17 USC 12a

CFR Citation:  17 CFR 1.10; 17 CFR 1.12; 17 CFR 1.17; 17 CFR 1.18; 17 
CFR 1.52; 17 CFR 3.33; 17 CFR 145.5; 17 CFR 147.3

Legal Deadline: None

Abstract: The CFTC is proposing: (1) to amend its financial reporting 
cycle such that, among other things, FCMs and IBs would be required to 
submit unaudited financial reports within 17 business days, and 
certified year-end financial reports within 60 calendar days, of the 
``as of'' date of the report (currently 45 calendar days and 90 
calendar days are permitted, respectively); and (2) to amend its debt-
equity ratio rule such that the 30 percent minimum equity requirement 
would apply to all of a firm's capital, rather than only to that 
portion of a firm's capital necessary to meet the minimum financial 
requirement. The proposals follow discussions at a capital roundtable 
held in September 1995 where it was suggested that the CFTC explore 
ways to further harmonize its financial rules with those of the 
Securities and Exchange Commission. These proposals would achieve that 
objective and the CFTC also believes that it is appropriate to propose 
these amendments given the speed and complex nature of today's 
financial markets.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            02/26/96                     61 FR 7080
NPRM Comment Period End         03/27/96
Final Action                    09/00/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawrence B. Patent, Associate Chief Counsel, Commodity 
Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5439

RIN: 3038-AB13
_______________________________________________________________________


COMMODITY FUTURES TRADING COMMISSION (CFTC)           Long-Term Actions


  



_______________________________________________________________________




4110.  EARLY WARNING REPORTING REQUIREMENTS FOR FUTURES 
COMMISSION MERCHANTS

Priority:  Other Significant

Legal Authority:  7 USC 6f; 7 USC 6g; 7 USC 12a

CFR Citation:  17 CFR 1.12

Legal Deadline: None

Abstract: The CFTC is proposing to amend its early warning reporting 
requirements (Rule 1.12) in three respects. First, the CFTC would 
extend to all futures commission merchants (FCMs) the requirement to 
report any reduction in adjusted net capital in excess of 20 percent of 
the amount of adjusted net capital in its last financial report. 
Currently, this requirement is only applicable to FCMs subject to the 
CFTC's risk assessment reporting requirements. The CFTC is also 
proposing two new early warning notice requirements for all FCMs, which 
would require an FCM to report: (a) a margin call that exceeds its 
excess adjusted net capital which remains unanswered by the close of 
business on the day following issuance of the call; and (2) whenever 
its excess adjusted net capital is less than six percent of the 
maintenance margin required to support proprietary and non-customer 
positions carried by the FCM.

Timetable:
________________________________________________________________________

Action                            Date                      FR Cite

________________________________________________________________________

NPRM                            12/28/94                    59 FR 66822
NPRM Comment Period End         02/27/95                     60 FR 7925


Next Action Undetermined

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawrence B. Patent, Associate Chief Counsel, Commodity 
Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581
Phone: 202 418-5439

RIN: 3038-AB11
_______________________________________________________________________


COMMODITY FUTURES TRADING COMMISSION (CFTC)           Completed Actions


  



_______________________________________________________________________




4111. ETHICS TRAINING FOR REGISTRANTS

Priority:  Substantive, Nonsignificant

CFR Citation:  17 CFR 3.34

Completed:
________________________________________________________________________

Reason                            Date                      FR Cite

________________________________________________________________________

Final Action                    12/13/95                    60 FR 63907
Final Action Effective          01/12/96

Small Entities Affected: None

Government Levels Affected: None

Agency Contact: Lawrence B. Patent
Phone: 202 418-5439

RIN: 3038-AB09
[FR Doc. 96-6556 Filed 05-10-96; 8:45 am]
BILLING CODE 6351-01-F