[Federal Register: December 21, 2004 (Volume 69, Number 244)]
[Rules and Regulations]
[Page 76392-76401]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr21de04-9]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 15, 16, 17, 18, 19 and 21
RIN 3038-AC08
Reporting Levels and Recordkeeping
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rules.
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SUMMARY: The Commodity Futures Trading Commission (Commission or CFTC)
has adopted several amendments to its contract market and large trader
reporting rules (reporting rules). First, with regard to contract
reporting levels, the Commission has raised existing levels for certain
commodities, established a new default contract reporting level for
broad-based securities indexes, and introduced additional reporting
levels to address recent market developments. Second, the Commission
has adopted rules to specify the manner in which a set of new
transactions, such as exchanges of futures for swaps, are reported to
the Commission. Third, the Commission has updated its reporting rules
to acknowledge current data transmission practices, to foster
innovative means of filing forms identifying the owners of accounts
with reportable positions, and to eliminate the use of Form 103 for the
submission of special call data. Finally, the Commission has adopted a
number of clarifying and technical amendments.
DATES: Effective January 20, 2005.
FOR FURTHER INFORMATION CONTACT: Gary Martinaitis, Associate Deputy
Director for Market Information, Market Surveillance Section (telephone
202-418-5209, e-mail gmartinaitis@cftc.gov), or Bruce Fekrat, Attorney,
Office of the Director (telephone 202-418-5578, e-mail
bfekrat@cftc.gov), Division of Market Oversight, Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street, NW.,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Large Trader Reporting Rules
A. Background
The Commission's reporting rules provide an important tool for
market oversight and other surveillance activities. The rules governing
this system, among other things, require futures commission merchants
(FCMs), clearing members and foreign brokers (collectively reporting
firms) to report position and identifying information of the largest
futures and option traders, and require traders themselves to provide
certain position and identifying information to the Commission.
Reporting levels are set for futures and option contracts under the
authority of sections 4c and 4i of the Commodity Exchange Act (CEA or
Act) to ensure that the Commission receives adequate information to
carry out its market surveillance programs.\1\ These market
surveillance programs are designed to detect and prevent price
manipulation and market congestion on designated contract markets
(DCMs), and to enforce speculative position limits pursuant to section
4a of the Act. The Commission's market surveillance programs also
provide information on the overall hedging and speculative use of, and
foreign participation in, the futures and option markets and other
matters of public interest.\2\ On May 12, 2004, the Commission
published a notice of rulemaking for public comment proposing to amend
its reporting rules.\3\ With several minor exceptions, the Commission
herein is adopting the amendments as proposed.
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\1\ Section 4i of the Act requires the filing of such reports as
the Commission may require when transactions or positions made or
obtained on contract markets or derivatives transaction execution
facilities equal or exceed Commission set levels. Section 4g of the
Act requires each registrant, whether an FCM, introducing broker,
floor broker, or floor trader, to file such reports as the
Commission may require on proprietary and customer transactions or
positions executed on any board of trade in the United States or
elsewhere.
\2\ Information collected through the large trader reporting
system is also important to the Commission's financial surveillance
efforts in furtherance of its responsibility to oversee the
financial, as well as the economic, integrity of the markets. For
example, the Division of Clearing and Intermediary Oversight uses
various automated tools to combine position information with
financial information routinely collected from FCMs to assess and
analyze financial risks presented by large customer positions to
both the firms carrying those positions and the respective clearing
organizations.
\3\ 69 FR 26333 (May 12, 2004).
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B. Raising Contract Reporting Levels for Certain Commodities
1. Amended Reporting Levels
Generally, the firm carrying a trader's reportable position files
large trader reports.\4\ The Commission has traditionally calibrated
contract
[[Page 76393]]
reporting levels to ensure that the aggregate of all positions reported
to the Commission typically represents 70 to 90 percent of the open
interest in any given contract. The Commission periodically reviews for
each contract information concerning trading volume, open interest, the
number and position sizes of individual traders relative to the
reporting levels, and the Commission's surveillance experience with
specific contracts, to determine if coverage of open interest is
adequate for effective market surveillance. In this regard, the
Commission is mindful of the burden associated with these reporting
requirements and reviews them with an eye to streamlining that burden
to the extent compatible with its responsibilities for rigorous
surveillance of the commodity futures and option markets. The
Commission's most recent review of reporting levels indicates that the
relative size of trading volume, open interest, and positions of
traders enables the Commission to raise reporting levels as follows:
(1) Milk, Class III from 25 to 50 contracts; (2) Soybeans from 100 to
150 contracts; (3) Wheat from 100 to 150 contracts; (4) Corn from 150
to 250 contracts; (5) Sugar No. 11 from 400 to 500 contracts; (6)
Cotton from 50 to 100 contracts; (7) Natural Gas from 175 to 200
contracts; (8) Crude Oil, Sweet--No. 2 Heating Oil Crack Spread from 25
to 250 contracts; (9) Crude Oil, Sweet--Unleaded Gasoline Crack Spread
from 25 to 150 contracts; (10) Unleaded Gasoline--No. 2 Heating Oil
Spread Swap from 25 to 150 contracts; (11) 1-Month LIBOR from 300 to
600 contracts; (12) 30-Day Fed Funds from 300 to 600 contracts; (13) 3-
Month Eurodollar Time Deposit Rates from 1,000 to 3,000 contracts; (14)
TRAKRS from 25,000 to 50,000 contracts; (15) E-Mini S&P 500 Stock Price
Index from 300 to 1,000 contracts \5\; (16) 2-Year U.S. Treasury Notes
from 500 to 1,000 contracts; (17) 5-Year U.S. Treasury Notes from 800
to 2,000 contracts; (18) 10-Year U.S. Treasury Notes from 1,000 to
2,000 contracts; and (19) 30-Year U.S. Treasury Bonds from 1,000 to
1,500 contracts.
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\4\ Specifically, parts 17 and 18 of the Commission's
regulations require reports from firms and traders, respectively,
when a trader holds a ``reportable position.'' See 17 CFR parts 17
and 18. A reportable position is any open contract position, as
further defined in the rules, that at the close of the market on any
business day equals or exceeds the quantity specified in Rule 15.03.
See 17 CFR 15.00. The firms that carry accounts for traders holding
reportable positions are required to identify those accounts on Form
102 and to report positions in the accounts to the Commission. The
individual trader who holds or controls a reportable position,
however, is required to report position and identifying information
to the Commission only in response to a special call.
\5\ Previously, the reporting levels for the S&P 500 Stock Price
Index contract and the E-Mini S&P 500 Stock Price Index contract
were 1,000 and 300 contracts, respectively. As amended, the
reporting levels for the S&P 500 Stock Price Index contract and the
E-Mini S&P 500 Stock Price Index contract will be the same.
Accordingly, the Commission is deleting the separate reference to
the E-Mini S&P 500 Stock Price Index in Rule 15.03. Subject to this
single exception for the E-Mini S&P 500 Stock Price Index contract,
the Commission's practice has been to apply the same reporting level
to both e-mini and related full-size contracts.
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In response to the proposed rulemaking's request for public
comment, U.S. Futures Exchange, L.L.C. (Eurex US), a Commission
designated board of trade, recommended increasing the contract
reporting level for all U.S. Treasury Notes and Bonds to the 5,000
contract range.\6\ As stated in its comment letter, Eurex US based its
recommendation on the amount of deliverable supply, increases in
trading volume, and the average size of specific transactions.\7\ The
Commission carefully considered Eurex US's recommendation, but
concluded that more modest increases in contract reporting levels
better facilitate the Commission's obligation to rigorously surveil the
market for U.S. Treasury Notes and Bonds.
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\6\ Letter from Satish Nandapurkar, CEO, U.S. Futures Exchange,
L.L.C. to Jean A. Webb, Secretary of the Commission at 1 (June 10,
2004) (on file with the Commission).
\7\ Id.
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2. The Impact of Raising Reporting Levels
The adjustments to reporting levels will decrease the number of
daily position and identifying reports, such as Series '01 Reports and
Forms 102, that reporting firms are currently required to file.\8\ The
number of Forms 40 filed by large traders will also decrease.\9\
However, according to administrative experience and analysis performed
by the Commission's surveillance staff, the percent of total market
open interest reported through the large trader reporting system will
remain at a level deemed sufficient for rigorous market surveillance.
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\8\ A Series '01 Report itemizes the account number and certain
positions, deliveries, and exchanges of futures associated with each
account carrying a reportable position. See 17 CFR 17.00. The name,
address, and occupation of the person or persons who own such
accounts are separately identified on Form 102. See 17 CFR 17.01.
\9\ Form 40 is a statement filed by a reporting trader on
special call from the Commission. Reporting traders must list their
name, address, telephone number, and principal occupation. Reporting
traders are also required to disclose certain information relating
to their business associations and their financial interest in, and
control of, accounts that carry reportable positions. See 17 CFR
part 18.
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Furthermore, not all reporting firms may elect to report under the
Commission's higher, and therefore potentially less burdensome,
reporting levels because exchanges also maintain large trader reporting
systems that are similar in most respects to the Commission's system.
The exchanges set their own reporting levels, which for particular
contracts may vary from Commission set levels. When exchange reporting
levels are set lower than those set by the Commission, firms may report
to the Commission at the lower exchange set level, thereby saving any
cost associated with reprogramming their reporting systems.\10\ The
Commission, however, only requires the filing of large trader reports
for positions that equal or exceed its reporting levels.
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\10\ See 62 FR 24026, 24028 n. 7 (May 2, 1997).
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C. Default Reporting Level for Broad-Based Securities Indexes
The general default reporting level for all positions, including
positions in broad-based securities indexes, is currently 25 contracts.
The Commission is adopting, as proposed, a new default reporting level
of 200 contracts specifically for broad-based securities indexes. By
adopting such a default reporting level, the following commodities will
no longer be enumerated in Rule 15.03, and therefore, will be subject
to the new default reporting level of 200 contracts: (1) S&P 400 Midcap
Stock Index--currently 100 contracts; (2) Dow Jones Industrial Average
Index--currently 100 contracts; (3) New York Stock Exchange Composite
Index--currently 50 contracts; (4) Amex Major Market Index, Maxi--
currently 100 contracts; (5) NASDAQ 100 Stock Index--currently 100
contracts; (6) Russell 2000 Stock Index--currently 100 contracts; (7)
Value Line Average Index--currently 50 contracts; and (8) NIKKEI Stock
Index--currently 100 contracts. The reporting level for the S&P 500
Stock Price Index and the Municipal Bond Index, however, will remain at
1,000 and 300 contracts, respectively.
D. Additional Contract Reporting Levels
To address recent market developments, the Commission is
establishing enumerated reporting levels for three German federal
government debt instruments, as well as a reporting level for products
that are offered by HedgeStreet, Inc. (HedgeStreet), a new DCM. The
reporting levels for the German debt instruments and the products
offered by HedgeStreet are as follows: (1) 10-Year German Federal
Government Debt--1,000 contracts; (2) 5-Year German Federal Government
Debt--800 contracts; (3) 2-Year German Federal Government Debt--500
contracts; and (4) HedgeStreet Products--125,000 contracts.
The reporting level enumerated for HedgeStreet products is
applicable to HedgeStreet contracts that pay a maximum of $10.00 if in
the money upon expiration. In light of the relatively low value of
these products, the Commission is adopting a reporting level of 125,000
contracts. Since the value of HedgeStreet products could result in the
reporting of positions that
[[Page 76394]]
numerically are very large, and due to current limitations in the
Commission's large trader record format, HedgeStreet positions are to
be reported under part 17 of the Commission's regulations by rounding
down to the nearest 1,000 contracts and then dividing by 1,000. For
example, a position of 177,955 contracts would be rounded down to
177,000 contracts, divided by 1,000, and then reported as 177.\11\
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\11\ See 17 CFR 17.00(g)(1).
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As initially structured by the Commission, the proposed enumerated
reporting level for HedgeStreet products applied only to European-style
binary options that were derivatives of economic indexes and paid a
fixed $10.00 when in the money upon expiration. The terms of the
proposed reporting level were based upon the Commission's understanding
that HedgeStreet contracts would initially have economic indexes as
their underlying. However, in its comment letter on the proposed
rulemaking, HedgeStreet requested that the Commission apply the 125,000
contract reporting level to HedgeStreet products that would not have
economic indexes as their underlying.\12\
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\12\ Letter from Michael Connor, President, HedgeStreet, Inc. to
Jean A. Webb, Secretary of the Commission at 1 (June 8, 2004) (on
file with the Commission).
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Because of the relatively low notional value of HedgeStreet
products, the reporting levels otherwise applicable to such contracts,
including the default reporting level of 25 contracts, may place an
undue reporting burden on HedgeStreet and its members without
substantially facilitating the Commission's objective of, and
responsibility for, conducting meaningful market surveillance. The
Commission, therefore, believes that a reporting level of 125,000
contracts for all HedgeStreet commodity futures and option contracts
with a maximum payout of $10 appropriately apprises the Commission of
significant positions and relieves unnecessary burdens on HedgeStreet
and its members.\13\
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\13\ See Division of Market Oversight No-Action Letter to
HedgeStreet, Inc. (July 26, 2004) (on file with the Commission).
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II. Trades Involving the Exchange of Commodity Futures Contracts
On December 21, 2000, the President signed into law the Commodity
Futures Modernization Act of 2000 (CFMA), extensively revising the
CEA.\14\ The CFMA facilitated the introduction of certain new
transactions by the exchanges, including certain off-centralized-market
trades such as exchanges of futures for swaps (EFS).\15\ Currently,
several exchanges have rules permitting EFSs and other types of off-
centralized-market trades referred to as exchanges of futures for risk
(EFR) and exchanges of futures for options (EFO).\16\ However, parts 16
and 17 of the Commission's regulations previously required contract
markets and reporting firms to separately account only for volume
attributable to EFPs.\17\
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\14\ Appendix E of Pub. L. 106-554, 114 Stat. 2763 (2000).
\15\ For instance, section 5(b)(3)(B) of the Act provides that
DCM rules may authorize ``an exchange of--(i) futures in connection
with a cash commodity transaction; (ii) futures for cash
commodities; or (iii) futures for swaps * * *.'' 7 U.S.C.
7(b)(3)(B).
\16\ An EFS, EFR, and EFO works similarly to a transaction
involving the exchange of futures for physicals (EFP). EFPs allow
market participants to exchange a position in a futures contract
with a similar cash market position. EFSs allow market participants
to exchange a position in a futures contract for a cash-settled swap
position. EFRs allow market participants to exchange a position in a
futures contract for an over-the-counter derivatives position. EFOs
allow market participants to exchange a position in a futures
contract for an off-exchange options position.
\17\ In the notice of proposed rulemaking, the Commission
referred to transactions involving the exchange of futures as
``exchanges of futures for a commodity or transaction other than a
futures product.'' 69 FR 26335. The final rules, however, refer to
such transactions as ``exchanges of futures for a commodity or for a
derivatives position'' in order to capture a broader set of
transactions and remain consistent with terminology used in another
Commission notice of rulemaking. See 69 FR 39880 (July 1, 2004).
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In order to recognize the growing use of these off-centralized-
market trades, the final rules require exchanges and reporting firms to
report all trades involving the exchange of futures for a commodity or
for a derivatives position in the same manner as they previously
reported EFP transactions. Therefore, exchanges and reporting firms
will group together all EFPs, EFSs, EFRs, EFOs or other exchanges of
futures for a commodity or for a derivatives position permitted by
exchange rules, and report the sum under the same category. This is an
appropriate approach because all of these trades are similar in that
they permit the exchange of a futures position for an off-exchange
position. Block trades, however, will not be included in this total
because they do not involve the exchange of a commodity futures
contract for a commodity or for a derivatives position. Volume
attributable to block trades shall be reported with other volume.
With regard to the reporting of exchanges of futures, one
commenter, Rolfe and Nolan Systems, Inc., a recordkeeping and reporting
service provider, requested that the Commission allow at least 90 days
after the finalization of the reporting rules for FCMs to comply with
the requirement to aggregate exchanges of futures.\18\ The commenter
indicated that compliance with the new requirement would compel certain
programming modifications.\19\ In the Commission's view, this request
is reasonable. In order to permit ample time for persons with reporting
obligations to implement any necessary programming modifications, the
Commission will not institute any enforcement proceeding under parts 15
through 18, and part 21, for non-compliance with the adopted reporting
requirements applicable to exchanges of futures other than EFPs until
the expiration of 90 days from the date of publication of these rules
in the Federal Register. During this interval, compliance with the
rules applicable to exchanges of futures is voluntary, however, persons
with reporting obligations must continue to comply with all reporting
requirements that are applicable to EFPs.
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\18\ Letter from John Munro, Senior Vice President of Product
Design, Rolfe and Nolan Systems, Inc. to Jean A. Webb, Secretary of
the Commission at 1 (June 1, 2004) (on file with the Commission).
\19\ Id.
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III. Modernization of Rules Covering Data and Hard Copy Submissions
The Commission is adopting a series of rule amendments that are
designed to update the reporting process in recognition of
technological advancements. Parts 16 through 18, and part 21,
previously required the submission of reports in hard copy form or
through the dial-up transmission of data. The final rules amend these
requirements to reflect the existing industry practice of using
Internet data transmissions in place of dial-up transmissions and the
use of exchange websites as a store of daily data in place of compiling
information in hard copy form. The Commission, in addition to making
certain other minor amendments that affect the reporting process, is
also eliminating the use of Form 103 for the submission of special call
data under part 18, and adopting final rules designed to foster
innovation in the means reporting firms use to file Forms 102 as
required by part 17.\20\
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\20\ Although generally supportive of the Commission's efforts
to encourage electronic methods for publishing information and
making regulatory filings, Eurex US commented that the Commission
should adopt a consistent electronic protocol for the submission of
data. Letter from Satish Nandapurkar, CEO, U.S. Futures Exchange,
L.L.C. to Jean A. Webb, Secretary of the Commission at 2 (June 10,
2004) (on file with the Commission). As requested, the Commission
will endeavor to adopt consistent and uniform electronic data
submission procedures where appropriate. Nevertheless, the
Commission believes that in order to lessen reporting and filing
burdens on all exchanges and market participants, electronic data
submission protocols must inherently incorporate a reasonable
measure of procedural flexibility.
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[[Page 76395]]
The rules contained within part 16 of the Commission's regulations
require reports from contract markets. The final rules eliminate the
requirement for filing daily hard copy clearing member reports and
daily hard copy submissions of data on trading volume, exchanges of
futures, open contracts, delivery notices, option deltas, prices, and
critical dates. These reports will only be required in hard copy form
upon the request of the Commission or its staff. Also, the Commission
is replacing the requirement of providing printed forms of data on
trading volume, exchanges of futures, open contracts, delivery notices,
and option deltas to the news media and members of the public with a
general requirement that such information be made readily available to
such persons.
The Commission is also replacing explicit requirements in part 16
for the dial-up transmission of data with more general data
transmission requirements. Finally, in light of advances in technology,
the Commission is requiring the submission of clearing member reports
and certain data regarding trading volume, open interest, prices and
critical dates by 12 noon on the business day following the day to
which the information pertains. Previously, such information was
required to be submitted by 3 p.m. on the business day following the
day to which the information pertained. The Commission believes that
the information is currently being submitted within the adopted noon
deadline.
In part 17, which governs reports submitted by reporting firms, the
Commission is substituting specific requirements pertaining to the use
of dial-up transmissions, submissions of '01 forms, and computer
printouts with more general data transmission requirements.
Furthermore, the Commission will permit reporting firms to authenticate
Forms 102 by a means other than manually signing the form. The
signature requirement necessitates the physical filing of Forms 102.
Physically filing these forms remains one of the more costly aspects of
large trader reporting for the industry. In order to foster innovative
and cost effective means of fulfilling this reporting requirement,
including the possibility of electronic filing, the Commission will
accept alternative means of authentication. While a manual signature
will remain the default method of authentication, the Commission will
retain the authority to approve other means of authentication as new
filing solutions become available and accepted by market participants.
In part 18, which governs reports filed by traders, the Commission
is eliminating the use of Form 103 for data requested by the Commission
on special call. The format of the submitted data will be per
instruction contained in the call.\21\ In addition, consistent with the
newly adopted requirements for the daily submission of large trader
data, the Commission will also require traders to identify exchanges of
futures for commodities or for derivatives positions in response to
such a call.
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\21\ This matches current industry and Commission practice. The
Commission is also amending Rule 15.02 to remove Form 103 from the
list of forms to be used in filing reports.
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The Commission is also deleting Rule 18.02 which provides for the
use of code numbers for the designation and identification of accounts.
Rule 18.02 was relevant to a reporting structure that relied on the
routine receipt of large trader reports directly from traders. The
Commission has not assigned a code number under Rule 18.02 in many
years and, if a request for such assignment is made in the future, the
Commission can accommodate the request informally. Finally, the
Commission is amending part 18 by deleting Rule 18.06 as the referenced
technology is no longer is use.
In part 21, which governs special calls, the requirement for
machine-readable information adhering to a specific record layout is
deleted. The requirement for the information to be prepared in
accordance with instructions in the call will remain. This matches
current industry and Commission practice.
IV. Clarifying and Technical Amendments
The Commission has identified a number of other provisions of the
reporting rules that either do not reflect current industry or
Commission practice or otherwise should be corrected or updated. First,
the Commission is amending Rule 15.00(b)(1)(ii) to clarify that options
on physicals are included in the definition of reportable position.\22\
Second, the Commission is amending Rule 17.00(a) to clarify that a
reportable position in a commodity in a special account requires that
all positions in that same commodity on the same exchange in the
special account be reported.\23\ Third, the Commission is amending Rule
17.04 to clarify that option positions are to be included in reports of
omnibus accounts. Each of these clarifications is reflective of current
industry and Commission practice.
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\22\ Prior to 1997, the definition of a reportable position
explicitly referenced options on physicals. 17 CFR 15.00(b)(2)
(1996). When the Commission amended that definition in 1997, that
reference was deleted. 62 FR 24026 (May 2, 1997). The Commission
believes that this deletion was unintentional as no explanation was
provided at the time. Id.; see also 61 FR 37409 (July 18, 1996).
Furthermore, both the Commission and the industry have continued to
include options on physicals in reports filed under parts 15 through
21. See 17 CFR 16.00(a), 16.01(a), 21.02a(b)(4)(vii). Accordingly,
the Commission believes that it is appropriate at this time to amend
the definition of reportable position to clarify that it includes
options on physicals, both to correct what appears to have been an
unintentional limitation of the definition in 1997 and to align the
definition with current industry and Commission reporting practices.
\23\ Part 17 was amended in 1997 to reflect this requirement.
See 62 FR 24026, 24028 n. 7 (May 2, 1997). In practice, however, it
appears that further clarification would be helpful.
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The Commission is also amending Rules 16.00(b)(2) and 16.01(d)(2)
to provide that the time by which the market reports required by those
rules must be filed is governed by a particular time zone, unless
otherwise specified by the Commission or its designee. The Commission
specified eastern time for markets located in that time zone and
central time for markets located elsewhere because Commission staff in
Chicago and Kansas City assume surveillance duties for markets located
outside of New York. The Commission is also adopting certain technical
amendments to Rule 17.00(g). Specifically, it is removing the
references to particular exchanges in subsection (2)(v) and making
certain editorial changes in subsections (2)(vi) and (2)(xi). The
Commission is also altering the requirement in Rule 17.01 regarding
identification of special accounts to exchanges on Form 102.\24\
Finally, the Commission is updating and correcting certain outdated
references to the provisions of part 15 that appear in part 19.
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\24\ This change is consistent with earlier changes made to the
Commission's rules and does not relieve reporting firms from their
obligation to comply with any applicable exchange requirements
regarding the submission of Forms 102 to the exchanges. See 62 FR
24026 (May 2, 1997).
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V. Related Matters
A. 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) requires the
[[Page 76396]]
Commission to ``consider the costs and benefits'' of the subject rule.
Section 15(a) further specifies that the costs and benefits of the
proposed rule shall be evaluated in light of five broad areas of market
and public concern: (1) Protection of market participants and the
public; (2) efficiency, competitiveness, and financial integrity of
futures markets; (3) price discovery; (4) sound risk management
practices; and (5) other public interest considerations. The Commission
may, in its discretion, give greater weight to any one of the five
enumerated areas of concern and may, in its discretion, determine that,
notwithstanding its costs, a particular rule is 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's notice of proposed rulemaking contained an
analysis of its consideration of these costs and benefits and solicited
public comment thereon.\25\ The Commission specifically invited
commenters to submit any data that they had quantifying the costs and
benefits of the proposed rules. The Commission, however, received no
comment letter that considered the costs and benefits of the proposed
rules. The Commission has considered the costs and benefits of these
rules in light of the specific areas of concern identified in section
15. The Commission has endeavored in these rules to impose the minimum
requirements necessary to enable the Commission to perform its
oversight functions, to carry out its mandate of assuring the continued
existence of competitive and efficient markets and to protect the
public interest in markets free of fraud and abuse. After considering
these factors, the Commission has determined to adopt the revisions to
parts 15 through 19, and part 21, as set forth below.
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\25\ 69 FR at 26336.
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B. The Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA), 5 U.S.C. 601 et seq.,
requires that agencies consider the impact of their rules on small
businesses. The Commission has previously determined that contract
markets, futures commission merchants and large traders are not ``small
entities'' for purposes of the RFA.\26\ The requirements of the
proposed amendments fall mainly on contract markets and FCMs.
Similarly, foreign brokers and foreign traders report only if carrying
or holding reportable large positions. In addition, these amendments
relieve regulatory burdens. Accordingly, the Acting Chairman, on behalf
of the Commission, hereby certifies, pursuant to 5 U.S.C. 605(b), that
the actions taken herein will not have a significant economic impact on
a substantial number of small entities.
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\26\ 47 FR 18618-21 (April 30, 1982).
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C. The Paperwork Reduction Act
The revision of collections of information in these final rules
have been reviewed and approved by the Office of Management and Budget
pursuant to the Paperwork Reduction Act of 1995, 44 U.S.C. 3507(d),
under control numbers 3038-0009 and 3038-0012. An agency may not
conduct or sponsor, and a person is not required to respond to, a
collection of information unless it displays a currently valid control
number. In the notice of proposed rulemaking, the Commission estimated
the paperwork burden that would be imposed by the rules and sought
comments on the estimates.\27\ Only a single comment pertained
tangentially to the collections of information requirements. Rolfe and
Nolan Systems, Inc., a recordkeeping and reporting service provider,
requested that the Commission allow at least 90 days for FCMs to comply
with the requirement to aggregate exchanges of futures for reporting
purposes.\28\ The Commission has determined to grant that request.
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\27\ 69 FR 26333, 26337.
\28\ Letter from John Munro, Senior Vice President of Product
Design, Rolfe and Nolan Systems, Inc. to Jean A. Webb, Secretary of
the Commission at 1 (June 1, 2004) (on file with the Commission).
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1. Scope of the Collections of Information
Parts 15 through 21 of the Commission's regulations require reports
from exchanges and large trader reports from clearing members, FCMs,
foreign brokers, and traders. These rules are designed to provide the
Commission with information to effectively conduct its market
surveillance program, which includes the detection and prevention of
price manipulation and enforcement of speculative position limits. The
final rules give exchanges, reporting firms, and traders substantial
flexibility in adopting technologically advanced techniques for data
collection, retention, and submission.
Part 16 of the Commission's regulations requires reports from
exchanges. The final rules eliminate the requirements for daily hard
copy clearing member and market data reports to the Commission.
Furthermore, the Commission has replaced explicit requirements for a
dial-up form of data transmission with more general requirements for
data transmission.
In part 17, which governs reports by reporting firms, the
Commission has replaced specific requirements pertaining to the use of
dial-up transmissions with more general data transmission requirements.
In order to foster more innovative and cost efficient means for filing
Forms 102, including the possibility of electronic filing, the
Commission has adopted a final rule that facilitates the adoption of
alternative means for authenticating Forms 102.
In part 18, which governs reports by traders, the Commission will
no longer use Form 103 when seeking data via special call. The form of
the data will now be per instruction contained in the call. In part 21,
which governs special calls, the requirement for machine-readable
information adhering to a specific record layout as contained in the
rules has been eliminated. The requirement for the information to be
prepared in accordance with instructions in the call remains.
2. Respondents and Estimated Reporting Burden
Twelve exchanges provide the data required under Rule 16.00 once on
each of an estimated 220 business days per year. All twelve exchanges
provide a set of information which includes daily options and futures
market data showing open contracts, volume of trading, deliveries and
exchanges of futures for physicals (EFPs) by clearing member firms
associated with the exchange's derivatives clearing organization. The
final rules require the reporting of all exchanges of futures. The
burden associated with this reporting obligation is minimal. The final
rules only require that exchanges aggregate all exchanges of futures
and report them as a single sum without further itemization. The total
burden in hours for the reporting of trading data by the exchanges is
estimated at 879 hours.
The twelve exchanges also provide the market information required
by Rule 16.01 for each of approximately 220 trading days per year. We
have estimated that it takes the exchanges about 30 minutes per day to
generate and transmit each data file. This results in an annual burden
of approximately 1,760 hours. The total estimated annual burden for
this collection of information has increased by 440 hours. The
increase, however, is mainly attributable to an increase in the number
of exchanges with market data reporting obligations.
[[Page 76397]]
Approximately 750 clearing members, FCMs, and foreign brokers are
subject to routine reporting requirements. The final rules do not
increase the aggregate burden hours required for such persons to comply
with the routine reporting requirements. Under Rule 17.00, routine
reports are filed only for accounts with futures and option positions
that meet or exceed levels set by the Commission in Rule 15.03(b). It
is estimated that this represents about 10 percent of all accounts
carried by potential respondents and that less than one-half
(approximately 264) of all respondents may be required to file reports
at any one time. Of the 264 firms, two service bureaus file reports for
approximately 40 firms. Therefore, the Commission receives reports
electronically from 226 sources. Less than 15 minutes per day are
expended by each source in generating files and transmitting them to
the Commission. Over a 220-day period, the routine reporting burden on
these firms is 12,430 hours.
Each account reported to the Commission must also be identified on
Form 102. Form 102 provides information that allows the Commission to
combine different accounts held or controlled by the same trader and to
identify commercial firms using the markets for hedging. The total
number of Forms 102 filed with the Commission is estimated at 4,000 per
year for a burden of 800 hours. The final rules require the reporting
of all exchanges of futures. The burden associated with this reporting
obligation is minimal. The final rules only require that reporting
firms aggregate all exchanges of futures and report them as a single
sum without further itemization.
Traders file Forms 40 under Rule 18.04, and Forms 103 on call by
the Commission under Rule 18.00. The number of traders filing Forms 40
is estimated at 2,400 per year, and the total annual burden for filing
such information is estimated to be 800 hours. The Commission has
maintained the authority to make special calls on traders under part 18
of the regulations when the information obtained routinely under part
17 of the regulations is incomplete for its purposes. In order to
streamline this collection of information, the final rules eliminate
Forms 103 altogether for the submission of special call data by large
traders. The form of the data collected will be per instruction
contained in the special call. The final rules also require the
reporting of all exchanges of futures. The burden associated with this
reporting obligation for traders is minimal. The final rules only
require that traders aggregate all exchanges of futures and report them
as a single sum without further itemization.
3. Request for Comment
The Commission invites comment on the accuracy of the burden
estimates and suggestions on how to further reduce these burdens.
Comments should be directed to Gary Martinaitis, Associate Deputy
Director for Market Information, Market Surveillance Section, Division
of Market Oversight, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581
(telephone 202-418-5209, e-mail gmartinaitis@cftc.gov).
List of Subjects
17 CFR Part 15
Brokers, Commodity futures, Reporting and recordkeeping
requirements.
17 CFR Part 16
Commodity futures, Reporting and recordkeeping requirements.
17 CFR Part 17
Brokers, Commodity futures, Reporting and recordkeeping
requirements.
17 CFR Part 18
Commodity futures, Reporting and recordkeeping requirements.
17 CFR Part 19
Commodity futures, Cotton, Grains, Reporting and recordkeeping
requirements.
17 CFR Part 21
Brokers, Commodity futures, Reporting and recordkeeping
requirements.
0
In consideration of the foregoing, and pursuant to the authority
contained in the Act, and, in particular, sections 4g, 4i, 5 and 8a of
the Act, the Commission hereby amends chapter I of title 17 of the Code
of Federal Regulations as follows:
PART 15--REPORTS--GENERAL PROVISIONS
0
1. The authority citation for part 15 continues to read as follows:
Authority: 7 U.S.C. 2, 5, 6, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 7,
7a, 9, 12a, 19 and 21, as amended by the Commodity Futures
Modernization Act of 2000, Appendix E of Pub. L. 106-554, 114 Stat.
2763 (2000); 5 U.S.C. 552 and 552(b).
0
2. In Sec. 15.00, revise paragraph (b)(1)(ii) to read as follows:
Sec. 15.00 Definitions of terms used in parts 15 to 21 of this
chapter.
* * * * *
(b) * * *
(1) * * *
(i) * * *
(ii) Long or short put or call options that exercise into the same
future of any commodity, or long or short put or call options for
options on physicals that have identical expirations and exercise into
the same physical, on any one contract market.
* * * * *
0
3. Revise Sec. 15.02 to read as follows:
Sec. 15.02 Reporting forms.
Forms on which to report may be obtained from any office of the
Commission or via the Internet (http://www.cftc.gov). Forms to be used
for the filing of reports follow, and persons required to file these
forms may be determined by referring to the rule listed in the column
opposite the form number.
------------------------------------------------------------------------
Form No. Title Rule
------------------------------------------------------------------------
40........................... Statement of Reporting Trader.... 18.04
'01.......................... Positions of Special Accounts.... 17.00
102.......................... Identification of Special 17.01
Accounts.
204.......................... Cash Positions of Grain Traders 19.00
(including Oilseeds and
Products).
304.......................... Cash Positions of Cotton Traders. 19.00
------------------------------------------------------------------------
(Approved by the Office of Management and Budget under control
numbers 3038-0007 and 3038-0009)
0
4. Revise Sec. 15.03 to read as follows:
Sec. 15.03 Reporting levels.
(a) Definitions. For purposes of this section:
Broad-based security index is a group or index of securities that
does not constitute a narrow-based security index.
HedgeStreet products are contracts offered by HedgeStreet, Inc., a
designated contract market, that pay up to $10.00 if in the money upon
expiration.
Major foreign currency is the currency, and the cross-rates between
the currencies, of Japan, the United Kingdom, Canada, Australia,
Switzerland, Sweden and the European Monetary Union.
Narrow-based security index has the same meaning as in section
1a(25) of the Commodity Exchange Act.
Security futures product has the same meaning as in section 1a(32)
of the Commodity Exchange Act.
(b) The quantities for the purpose of reports filed under parts 17
and 18 of this chapter are as follows:
[[Page 76398]]
------------------------------------------------------------------------
Number of
Commodity contracts
------------------------------------------------------------------------
Agricultural:
Wheat............................................... 150
Corn................................................ 250
Oats................................................ 60
Soybeans............................................ 150
Soybean Oil......................................... 200
Soybean Meal........................................ 200
Cotton.............................................. 100
Frozen Concentrated Orange Juice.................... 50
Milk, Class III..................................... 50
Rough Rice.......................................... 50
Live Cattle......................................... 100
Feeder Cattle....................................... 50
Lean Hogs........................................... 100
Sugar No. 11........................................ 500
Sugar No. 14........................................ 100
Cocoa............................................... 100
Coffee.............................................. 50
Natural Resources:
Copper.............................................. 100
Gold................................................ 200
Silver Bullion...................................... 150
Platinum............................................ 50
No. 2 Heating Oil................................... 250
Crude Oil, Sweet.................................... 350
Unleaded Gasoline................................... 150
Natural Gas......................................... 200
Crude Oil, Sweet--No. 2 Heating Oil Crack Spread.... 250
Crude Oil, Sweet--Unleaded Gasoline Crack Spread.... 150
Unleaded Gasoline--No. 2 Heating Oil Spread Swap.... 150
Financial:
3-month (13-Week) U.S. Treasury Bills............... 150
30-Year U.S. Treasury Bonds......................... 1,500
10-Year U.S. Treasury Notes......................... 2,000
5-Year U.S. Treasury Notes.......................... 2,000
2-Year U.S. Treasury Notes.......................... 1,000
10-Year German Federal Government Debt.............. 1,000
5-Year German Federal Government Debt............... 800
2-Year German Federal Government Debt............... 500
3-Month Eurodollar Time Deposit Rates............... 3,000
30-Day Fed Funds.................................... 600
1-month LIBOR Rates................................. 600
3-month Euroyen..................................... 100
Major-Foreign Currencies............................ 400
Other Foreign Currencies............................ 100
U.S. Dollar Index................................... 50
Goldman Sachs Commodity Index....................... 100
Broad-Based Security Indexes:
S&P 500 Stock Price Index........................... 1,000
Municipal Bond Index................................ 300
Other Broad-Based Securities Indexes................ 200
Security Futures Products:
Individual Equity Security.......................... 1,000
Narrow-Based Security Index......................... 200
TRAKRS.................................................. \1\ 50,000
HedgeStreet Products.................................... \1\ 125,000
All Other Commodities................................... 25
------------------------------------------------------------------------
\1\ For purposes of part 17, positions in TRAKRS and HedgeStreet
products should both be reported by rounding down to the nearest 1,000
contracts and dividing by 1,000.
PART 16--REPORTS BY CONTRACT MARKETS
0
5. The authority citation for part 16 continues to read as follows:
Authority: 7 U.S.C. 6a, 6c, 6g, 6i, 7 and 12a, unless otherwise
noted.
0
6. In Sec. 16.00, revise paragraphs (a)(4) and (b) to read as follows:
Sec. 16.00 Clearing member reports.
(a) * * *
(4) The quantity of purchases of futures for commodities or for
derivatives positions and the quantity of sales of futures for
commodities or for derivatives positions which are included in the
total quantity of contracts bought and sold during the day covered by
the report, and the names of the clearing members who made the
purchases or sales;
* * * * *
(b) Form, manner and time of filing reports. Unless otherwise
approved by the Commission or its designee, contract markets shall
submit the information required by paragraph (a) of this section as
follows:
[[Page 76399]]
(1) Using the format, coding structure, and electronic data
transmission procedures approved in writing by the Commission or its
designee; provided however, the information shall be made available to
the Commission or its designee in hard copy upon request; and
(2) When such data is first available but not later than 12:00 p.m.
on the business day following the day to which the information
pertains. Unless otherwise specified by the Commission or its designee,
the stated time is eastern time for information concerning markets
located in that time zone, and central time for information concerning
all other markets.
* * * * *
0
7. In Sec. 16.01:
0
a. Revise paragraph (a)(2) and the concluding text of paragraph (a),
which follows paragraph (a)(5);
0
b. Remove the phrase ``, in printed form at the office of the contract
market,'' from paragraph (b)(3); and
0
c. Revise paragraph (d).
The revisions read as follows:
Sec. 16.01 Trading volume, open contracts, prices, and critical
dates.
(a) * * *
(2) The total quantity of futures exchanged for commodities or for
derivatives positions which are included in the total volume of
trading;
(5) * * *
Note to paragraph (a): This information shall be made readily
available to the news media and the general public without charge no
later than the business day following the day for which publication
is made.
* * * * *
(d) Form, manner and time of filing reports. Unless otherwise
approved by the Commission or its designee, contract markets shall
submit to the Commission the information specified in paragraphs (a),
(b) and (c) of this section as follows:
(1) Using the format, coding structure and electronic data
transmission procedures approved in writing by the Commission or its
designee; provided however, the information shall be made available to
the Commission or its designee in hard copy upon request; and
(2) When each such form of the data is first available but not
later than 7:00 a.m. on the business day following the day to which the
information pertains for the delta factor and settlement price and not
later than 12:00 p.m. for the remainder of the information. Unless
otherwise specified by the Commission or its designee, the stated time
is eastern time for information concerning markets located in that time
zone, and central time for information concerning all other markets.
* * * * *
0
8. Revise Sec. 16.06 to read as follows:
Sec. 16.06 Errors or omissions.
Unless otherwise approved by the Commission or its designee,
contract markets shall file corrections to errors or omissions in data
previously filed with the Commission pursuant to Sec. Sec. 16.00 and
16.01 in the format and using the coding structure and electronic data
submission procedures approved in writing by the Commission or its
designee.
0
9. In Sec. 16.07, revise paragraphs (a) and (b) to read as follows:
Sec. 16.07 Delegation of authority to the Director of the Division of
Market Oversight and the Executive Director.
* * * * *
(a) Pursuant to Sec. Sec. 16.00(b) and 16.01(d), the authority to
determine whether contract markets must submit data in hard copy, and
the time that such data may be submitted where the Director determines
that a contract market is unable to meet the requirements set forth in
the regulations;
(b) Pursuant to Sec. Sec. 16.00(b)(1), 16.00(d)(1), and 16.06, the
authority to approve the format, coding structure and electronic data
transmission procedures used by contract markets.
PART 17--REPORTS BY FUTURES COMMISSION MERCHANTS, MEMBERS OF
CONTRACT MARKETS AND FOREIGN BROKERS
0
10. The authority citation for part 17 continues to read as follows:
Authority: 7 U.S.C. 6a, 6c, 6d, 6f, 6g, 6i, 7 and 12a, unless
otherwise noted.
0
11. In Sec. 17.00, revise paragraph (a) heading, add paragraph (a)(1),
and revise paragraphs (g)(2)(i), (g)(2)(v), (g)(2)(vi), (g)(2)(xi), and
(h) to read as follows:
Sec. 17.00 Information to be furnished by futures commission
merchants, clearing members and foreign brokers.
(a) Special Accounts--Reportable futures and options positions,
delivery notices, and exchanges of futures. (1) Each futures commission
merchant, clearing member and foreign broker shall submit a report to
the Commission for each business day with respect to all special
accounts carried by the futures commission merchant, clearing member or
foreign broker, except for accounts carried on the books of another
futures commission merchant on a fully-disclosed basis. Except as
otherwise authorized by the Commission or its designee, such report
shall be made in accordance with the format, coding and data
transmission procedures set forth in paragraph (g) of this section. The
report shall show each futures position, separately for each contract
market and for each future, and each put and call options position
separately for each contract market, expiration and strike price in
each special account as of the close of market on the day covered by
the report and, in addition, the quantity of exchanges of futures for
commodities or for derivatives positions and the number of delivery
notices issued for each such account by the clearing organization of a
contract market and the number stopped by the account. The report shall
also show all positions in all futures months and option expirations of
that same commodity on the same contract market for which the special
account is reportable.
* * * * *
(a) * * *
(2) * * *
(i) Report type. This report format will be used to report three
types of data: long and short futures and options positions, futures
delivery notices issued and stopped, and exchanges of futures for a
commodity or for a derivatives position bought and sold. Valid values
for the report type are ``RP'' for reporting positions, ``DN'' for
reporting notices, and ``EP'' for reporting exchanges of futures for a
commodity or for a derivatives position.
* * * * *
(v) Exchange. This is a two-character field approved by the
Commission to identify the exchange on which a position is held.
(vi) Put or Call. Valid values for this field are ``C'' for a call
option and ``P'' for a put option. For futures, the field is blank.
* * * * *
(xi) Long-Buy-Stopped (Short-Sell-Issued). When report type is
``RP'', report long (short) positions open at the end of a trading day.
When report is ``DN'', report delivery notices stopped (issued) on
behalf of the account. When report type is ``EP'', report purchases
(sales) of futures for a commodity or for a derivatives position for
the account. Report all information in contracts. Position data are
reported on a net or gross basis in accordance with paragraphs (d) and
(e) of this section.
* * * * *
(h) Correction of errors and omissions. Unless otherwise approved
by the Commission or its designee, corrections to errors and omissions
in data provided pursuant to Sec. 17.00(a) shall be filed on series
`01 forms or in the format, coding structure and data transmission
[[Page 76400]]
procedures approved in writing by the Commission or its designee.
* * * * *
0
12. In Sec. 17.01, revise the introductory text and paragraphs (e),
(f) and (g) to read as follows:
Sec. 17.01 Special account designation and identification.
When a special account is reported for the first time, the futures
commission merchant, clearing member, or foreign broker shall identify
the account to the Commission on form 102, in the form and manner
specified in Sec. 17.02, showing the information in paragraphs (a)
through (f) of this section.
* * * * *
(e) Account executive. The name and business telephone number of
the associated person of the futures commission merchant who has
solicited and is responsible for the account or, in the case of an
introduced account, the name and business telephone number of the
introducing broker who introduced the account.
(f) Reporting firms. The name and address of the futures commission
merchant, clearing member, or foreign broker carrying the account, the
name, title and business phone of the authorized representative of the
firm filing the form 102 and the date of the form 102. The authorized
representative shall sign the report or satisfy such other requirements
for authenticating the report as instructed in writing by the
Commission or its designee.
(g) Form 102 updates. If, at the time an account is in special
account status and a form 102 filed by a futures commission merchant,
clearing member, or foreign broker is then no longer accurate because
there has been a change in the information required under paragraph (b)
of this section since the previous filing, the futures commission
merchant, clearing member, or foreign broker shall file an updated form
102 with the Commission within three business days after such change
occurs.
0
13. Revise Sec. 17.02 to read as follows:
Sec. 17.02 Form, manner and time of filing reports.
Unless otherwise instructed by the Commission or its designee, the
reports required to be filed by futures commission merchants, clearing
members and foreign brokers under Sec. Sec. 17.00 and 17.01 shall be
filed as specified in paragraphs (a) and (b) of this section.
(a) Section 17.00(a) reports. Reports filed under Sec. 17.00(a)
shall be submitted through electronic data transmission procedures
approved in writing by the Commission or its designee not later than 9
a.m. on the business day following that to which the information
pertains. Unless otherwise specified by the Commission or its designee,
the stated time is eastern time for information concerning markets
located in that time zone, and central time for information concerning
all other markets.
(b) Section 17.01 reports. For data submitted pursuant to Sec.
17.01 on form 102:
(1) On call by the Commission or its designee, identify the type of
special account specified by items 1(a), 1(b), or 1(c) of form 102, and
the name and location of the person to be identified in item 1(d) on
the form 102, and submit such information by facsimile or telephone, in
accordance with instructions by the Commission or its designee, on the
same day that the special account in question is first reported to the
Commission; and
(2) Submit a completed form 102 within three business days of the
first day that the special account in question is reported to the
Commission in accordance with instructions by the Commission or its
designee.
0
14. In Sec. 17.03, revise paragraphs (a) and (b), redesignate
paragraph (c) as paragraph (d) and add a new paragraph (c) to read as
follows:
Sec. 17.03 Delegation of authority to the Director of the Division of
Market Oversight and to the Executive Director.
* * * * *
(a) Pursuant to Sec. 17.00(a) and (h), the authority to determine
whether futures commission merchants, clearing members and foreign
brokers can report the information required under Rule 17.00(a) and
Rule 17.00(h) on series `01 forms or using some other format upon a
determination that such person is unable to report the information
using the format, coding structure or electronic data transmission
procedures otherwise required.
(b) Pursuant to Sec. 17.02, the authority to instruct and/or
approve the time at which the information required under Rules 17.00
and 17.01 must be submitted by futures commission merchants, clearing
members and foreign brokers provided that such persons are unable to
meet the requirements set forth in Sec. Sec. 17.01(g) and 17.02.
(c) Pursuant to Sec. 17.01(f), the authority to determine whether
to permit an authorized representative of a firm filing the form 102 to
use a means of authenticating the report other than by signing the form
102 and, if so, to determine the alternative means of authentication
that shall be used.
* * * * *
0
15. In Sec. 17.04, revise the second sentence of paragraph (b) and
paragraphs (b)(1)(i) and (b)(2) to read as follows:
Sec. 17.04 Reporting omnibus accounts to the carrying futures
commission merchant or foreign broker.
* * * * *
(b) * * * The futures commission merchant, clearing member or
foreign broker shall, if both open long and short positions in the same
future or option are carried for the same trader, compute open long or
open short positions as instructed in this paragraph.
(1) * * *
(i) The positions represent transactions on a contract market which
requires long and short positions in the same future or option held in
accounts for the same trader to be recorded and reported on a gross
basis; or
* * * * *
(2) Include only the net long or net short positions of the trader
if the positions represent transactions on a contract market which does
not require long and short positions in the same future or option held
in accounts for the same trader to be recorded and reported on a gross
basis.
* * * * *
PART 18--REPORTS BY TRADERS
0
16. The authority citation for part 18 continues to read as follows:
Authority: 7 U.S.C. 2, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 12a
and 19; 5 U.S.C. 552 and 552(b), unless otherwise noted.
0
17. Revise Sec. 18.00 to read as follows:
Sec. 18.00 Information to be furnished by traders.
Every trader who owns, holds or controls, or has held, owned or
controlled, a reportable futures or options position in a commodity
shall within one business day after a special call upon such trader by
the Commission or its designee file reports to the Commission
concerning transactions and positions in such futures or options.
Reports shall be filed for the period of time that the trader held or
controlled a reportable position and shall be prepared and submitted as
instructed in the call. The report shall show for each day covered by
the report the following information, as specified in the call,
separately for each future or option and for each contract market:
(a) Open contracts;
(b) Purchases and sales;
(c) Delivery notices issued and stopped;
[[Page 76401]]
(d) Purchases and sales of futures for commodities or for
derivatives positions; and
(e) Options exercised.
(Approved by the Office of Management and Budget under control
number 3038-0009)
Sec. 18.02 [Removed and Reserved.]
0
18. Remove and reserve Sec. 18.02.
Sec. 18.06 [Removed and Reserved.]
0
19. Remove and reserve Sec. 18.06.
PART 19--REPORTS BY PERSONS HOLDING BONA FIDE HEDGE POSITIONS
PURSUANT TO Sec. 1.3(Z) OF THIS CHAPTER AND BY MERCHANTS AND
DEALERS IN COTTON
0
20. The authority citation for part 19 continues to read as follows:
Authority: 7 U.S.C. 6g(a), 6i and 12a(5), unless otherwise
noted.
0
21. In Sec. 19.00, revise paragraph (a)(1) and the first sentence of
(a)(3) to read as follows:
Sec. 19.00 General provisions.
(a) * * *
(1) All persons holding or controlling futures and option positions
that are reportable pursuant to Sec. 15.00(b)(2) of this chapter and
any part of which constitute bona fide hedging positions as defined in
Sec. 1.3(z) of this chapter;
* * * * *
(3) All persons holding or controlling positions for future
delivery that are reportable pursuant to Sec. 15.00(b)(1) of this
chapter who have received a special call for series '04 reports from
the Commission or its designee. * * *
* * * * *
PART 21--SPECIAL CALLS
0
22. The authority citation for part 21 continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 2a, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m,
6n, 7, 7a, 12a, 19 and 21; 5 U.S.C. 552 and 552(b), unless otherwise
noted.
Sec. 21.02a [Removed]
0
23. Remove Sec. 21.02a.
Issued in Washington, DC on December 14, 2004 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 04-27750 Filed 12-20-04; 8:45 am]
BILLING CODE 6351-01-P