[Code of Federal Regulations]
[Title 17, Volume 1]
[Revised as of April 1, 2006]
From the U.S. Government Printing Office via GPO Access
[CITE: 17CFR37.7]

[Page 417-418]
 
              TITLE 17--COMMODITY AND SECURITIES EXCHANGES
 
             CHAPTER I--COMMODITY FUTURES TRADING COMMISSION
 
PART 37_DERIVATIVES TRANSACTION EXECUTION FACILITIES--Table of Contents
 
Sec.  37.7  Additional requirements.

    (a) Products. Notwithstanding the provisions of section 5c(c) of the 
Act and Sec.  40.2 of this chapter, derivatives transaction execution 
facilities need only notify the Commission of the listing of new 
products for trading, posting of new product descriptions, terms and 
conditions or trading protocols or providing for a new system product 
functionality, by filing with the Secretary of the Commission at its 
Washington, D.C. headquarters, a submission labeled ``DTF Notice of 
Product Listing'' that includes the text of the product's terms or 
conditions, product description, trading protocol or description of the 
system functionality or by electronic notification of the foregoing at 
the time traders or participants in the market are notified, but in no 
event later than the close of business on the business day preceding 
initial listing, posting or implementation of the trading protocol or 
system functionality.
    (b) Material modifications. Notwithstanding the provisions of 
Section 5c(c) of the Act, registered derivatives transaction execution 
facilities need not certify rules or rule amendments under Sec.  40.6 of 
this chapter, and must only notify the Commission prior to placing into 
effect or amending such a rule, (as defined in Sec.  40.1 of this 
chapter):
    (1) By electronic notification to the Commission of the rule to be 
placed into effect or to be changed, in a format approved by the 
Secretary of the Commission, at the time traders or participants in the 
market are notified, but (unless taken as an emergency action) in no 
event later than the close of business on the business day preceding 
implementation. The submission notification shall be labeled ``DTEF Rule 
Notices'' and shall include the text of the rule or rule amendment (with 
deletions and additions indicated). Provided, however, the derivatives 
transaction execution facility need not notify the Commission of rules 
or rule amendments for which no certification is required under Sec.  
40.6(c) of this chapter.
    (2) The derivatives transaction execution facility must maintain 
documentation regarding all changes to rules, terms and conditions or 
trading protocols.
    (c) Voluntary request for Commission approval of rules or products. 
(1) A board of trade or trading facility seeking to be registered as, or 
registered as, a derivatives transaction execution facility, may request 
that the Commission approve under section 5c(c) of the Act, any or all 
of its rules and subsequent amendments thereto, including both 
operational rules and the terms or conditions of products listed for 
trading on the facility, prior to their implementation or, 
notwithstanding the provisions of section 5c(c)(2) of the Act, at 
anytime thereafter, under the procedures of Sec. Sec.  40.5 or 40.3 of 
this chapter, as applicable. A derivatives transaction execution 
facility may label a product in

[[Page 418]]

its rules as, ``Listed for trading pursuant to Commission approval,'' if 
the product and its terms or conditions have been approved by the 
Commission and it may label as, ``Approved by the Commission,'' only 
those rules that have been so approved.
    (2) Notwithstanding the forty-five day review period for voluntary 
approval under Sec.  40.3(b) of this chapter, the operating rules and 
the terms and conditions of one product submitted for voluntary 
Commission approval under Sec.  40.3 of this chapter, that has been 
submitted with, and at the same time as, an application for registration 
as a derivatives transaction execution facility, will be deemed approved 
by the Commission thirty days after receipt by the Commission, or at the 
conclusion of such extended period as provided under Sec.  40.3(c) of 
this chapter.
    (3) An applicant for registration, or a registered derivatives 
transaction execution facility may request that the Commission consider 
under the provisions of section 15(b) of the Act any of the derivatives 
transaction execution facility's rules or policies, including both 
operational rules and the terms or conditions of products listed for 
trading, at the time of registration or thereafter.
    (d) Identify participants. Registered derivatives transaction 
execution facilities must keep a record in permanent form, which shall 
show the true name, address, and principal occupation or business of any 
foreign trader executing transactions on the facility. In addition, upon 
request, a derivatives transaction execution facility shall provide to 
the Commission information regarding the name of any person exercising 
control over the trading of such foreign trader. Provided, however, this 
paragraph shall not apply to a derivatives transaction execution 
facility insofar as transactions in futures or option contracts of 
foreign traders are executed through, or the resulting transactions are 
maintained in accounts carried by, a registered futures commission 
merchant or introduced by an introducing broker subject to Sec.  1.37 of 
this chapter.
    (e) Identify persons subject to fitness requirement. Upon request by 
any representative of the Commission, a registered derivatives 
transaction execution facility shall furnish to the Commission's 
representative a current list of persons subject to the fitness 
requirements of section 5a(d)(6) of the Act.

[66 FR 42271, Aug. 10, 2001, as amended at 71 FR 1963, Jan. 12, 2006]