[Federal Register: March 31, 2004 (Volume 69, Number 62)]
[Rules and Regulations]
[Page 16792]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31mr04-12]
[[Page 16792]]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 3
RIN 3038-AB89
Registration of Intermediaries
AGENCY: Commodity Futures Trading Commission.
ACTION: Correcting amendments.
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SUMMARY: This document contains corrections to the final regulations,
which were published Thursday, June 6, 2002. The regulations relate to
the registration of intermediaries in the futures industry.
EFFECTIVE DATE: April 1, 2004.
FOR FURTHER INFORMATION CONTACT: Lawrence B. Patent, Deputy Director,
or R. Trabue Bland, Attorney-Advisor, Division of Clearing and
Intermediary Oversight, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581.
Telephone: (202) 418-5430. E-mail: lpatent@cftc.gov or tbland@cftc.gov.
SUPPLEMENTARY INFORMATION:
I. Background
On June 6, 2002 (67 FR 38869), the Commission published amendments
to its rules governing the registration of intermediaries in the
futures industry (``2002 Release''). Specifically, the rules
facilitated changing the Commission's paper-based registration system
to an online registration system and permitted floor brokers with
temporary licenses to act in the capacity of a fully registered floor
broker. After the incorporation of these changes to Rule 3.12 \1\, the
amended rule, as published, deleted two subsections of Rule 3.12.
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\1\ 17 CFR 3.12 (2003).
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II. Need for Correction
The final regulations as published in the Code of Federal
Regulations omit two paragraphs that were in previous versions of Rule
3.12: 17 CFR 3.12(f)(3) and (4).\2\ The Commission did not intend to
delete these paragraphs, as evidenced by the fact that the 2002 Release
contains five asterisks following paragraph (f)(2) of Rule 3.12 as
printed therein. Nevertheless, the 2003 edition of the Code of Federal
Regulations omits paragraphs 17 CFR 3.12(f)(3) and (4).
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\2\ See, e.g., 17 CFR 3.12 (2002).
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Section 3.12(f)(3) requires persons associated with more than one
sponsor to file fingerprints on a fingerprint card with the National
Futures Association. 17 CFR 3.12(f)(4) states that an associated person
(``AP'') of a futures commission merchant or introducing broker
(``IB'') that directs managed accounts to commodity trading advisors
(``CTA''), which are carried by the AP's FCM or IB, are deemed to be
APs of the FCM or IB, but not the CTA. Sections 3.12(f)(3) and
3.12(f)(4) were originally in Rule 3.12 before the Commission published
the 2002 Release.\3\
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\3\ Id.
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As published, Rule 3.12 is missing two important subsections, which
these corrections add.
List of Subjects in 17 CFR Part 3
Brokers, Commodity futures, Registration.
0
In consideration of the foregoing, the Commission hereby corrects
chapter I of title 17 of the Code of Federal Regulations to read as
follows:
PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT
0
The authority citation for part 1 continues to read as follows:
Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a, 2, 6, 6a, 6b, 6c,
6d, 6e, 6g, 6h, 6i, 6k, 6m, 6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b, 13c,
16a, 18, 19, 21, 23.
0
2. Section 3.12 is amended by adding paragraphs (f)(3) and (f)(4) to
read as follows:
Sec. 3.12 Registration of associated persons of futures commission
merchants, introducing brokers, commodity trading advisors, commodity
pool operators, and leverage transaction merchants.
* * * * *
(f) * * *
(3) A person who is simultaneously associated with more than one
sponsor in accordance with the provisions of paragraphs (f)(1) and
(f)(2) of this section shall be required, upon receipt of notice from
the National Futures Association, to file with the National Futures
Association his fingerprints on a fingerprint card provided by the
National Futures Association for that purpose as well as such other
information as the National Futures Association may require. The
National Futures Association may require such a filing every two years,
or at such greater period of time as the National Futures Association
may deem appropriate, after the associated person has become associated
with a new sponsor in accordance with the requirements of paragraphs
(f)(1) and (f)(2) of this section.
(4) If a person is associated with a futures commission merchant or
with an introducing broker and he directs customers seeking a managed
account to use the services of a commodity trading advisor(s) approved
by the futures commission merchant or introducing broker and all such
customers' accounts solicited or accepted by the associated person are
carried by the futures commission merchant or introduced by the
introducing broker with which the associated person is associated, such
a person shall be deemed to be associated solely with the futures
commission merchant or introducing broker and may not also register as
an associated person of the commodity trading advisor(s).
* * * * *
Issued in Washington, DC, on March 25, 2004 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 04-7202 Filed 3-30-04; 8:45 am]
BILLING CODE 6351-01-M