[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR39.3]

[Page 429-430]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 39_DERIVATIVES CLEARING ORGANIZATIONS--Table of Contents
 
Sec. 39.3  Procedures for registration.

    (a) Registration by application. An organization shall be deemed to 
be registered as a derivatives clearing organization sixty days after 
receipt by the Commission of an application for registration as a 
derivatives clearing organization unless notified otherwise during that 
period, or, as determined by Commission order, registered upon 
conditions, if:
    (1) The application is labeled as being submitted pursuant to this 
part 39;
    (2) The applicant represents that it will operate in accordance with 
the definition of derivatives clearing organization contained in section 
1a(9) of the Act;
    (3) The application includes a copy of the applicant's rules;
    (4) To the extent it is not self evident from the applicant's rules, 
the application demonstrates how the applicant is able to satisfy each 
of the core principles specified in section 5b(c)(2) of the Act;
    (5) The applicant submits agreements entered into or to be entered 
into between or among the applicant, its operator or its participants, 
and descriptions of system test procedures, tests conducted or test 
results, that will enable the applicant to comply, or demonstrate the 
applicant's ability to comply, with the core principles specified in 
section 5b(c)(2) of the Act;
    (6) The applicant does not amend or supplement the application 
except as requested by the Commission or for correction of typographical 
errors, renumbering or other nonsubstantive revisions, during that 
period;
    (7) The applicant identifies with particularity information in the 
application that will be subject to a request for confidential treatment 
and supports that request for confidential treatment with reasonable 
justification; and
    (8) The applicant has not instructed the Commission in writing 
during the review period to review the application pursuant to the time 
provisions of and procedures under section 6 of the Act.
    (b) Termination of part 39 review. If, during the sixty-day period 
for review provided by paragraph (a) of this section, it appears that 
the application's form or substance fails to meet the requirements of 
this part, the Commission shall notify the applicant seeking 
registration that the Commission is terminating review under this 
section and will review the proposal under the time period and 
procedures of section 6 of the Act. This termination notification will 
state the nature of the issues raised and the specific condition of 
registration that the applicant would violate, appears to violate, or 
the violation of which cannot be ascertained from the application. 
Within ten days of receipt of this termination notification, the 
applicant seeking registration may request that the Commission render a 
decision whether to register the applicant or to institute a proceeding 
to deny the proposed application under procedures specified in section 6 
of the Act by notifying the Commission that the applicant views its 
submission as complete and final as submitted.
    (c) Withdrawal of application for registration. An applicant for 
registration may withdraw its application by filing with the Commission 
such a request. Withdrawal of an application for registration shall not 
affect any action taken or to be taken by the Commission based upon 
actions, activities, or events occurring during the time that the 
application for registration was pending with the Commission.
    (d) Guidance for applicants and registrants. Appendix A to this part 
provides guidance to applicants and registrants on how the core 
principles specified in section 5b(c)(2) of the Act may be satisfied.
    (e) Delegation of authority. (1) The Commission hereby delegates, 
until it orders otherwise, to the Director of the Division of Clearing 
and Intermediary Oversight or the Director's delegatees, with the 
concurrence of the General Counsel or the General Counsel's delegatees, 
the authority to exercise the functions under paragraphs (a) and (b) of 
this section and under Sec. 39.5.
    (2) The Director of the Division of Clearing and Intermediary 
Oversight may submit to the Commission for its consideration any matter 
which has been delegated in this paragraph.
    (3) Nothing in this paragraph prohibits the Commission, at its 
election,

[[Page 430]]

from exercising the authority delegated in paragraph (e)(1) of this 
section.

[66 FR 45609, Aug. 29, 2001, as amended at 67 FR 62352, Oct. 7, 2002]