62228 Federal Register / Vol. 69, No. 205 / Monday, October 25, 2004 / Proposed Rules 

B. Paperwork Reduction Act 

The proposed amendments to part 

171 rules do not impose a burden 

within the meaning and intent of the 

Paperwork Reduction Act of 1980, 44 

U.S.C. 3501, et seq.

C. Cost-Benefit Analysis 

Section 15(a) of the Commodity 

Exchange Act, 7 U.S.C. 19(a), requires 

the Commission to consider the costs 

and benefits of its action before issuing 

a new regulation. The Commission 

understands that, 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. Nor does it require 

that each proposed rule be analyzed in 

isolation when that rule is a component 

of a larger package of rules or rule 

revisions. Rather, section 15(a) simply 

requires the Commission to ‘‘consider 

the costs and benefits’’ of its action. 

Section 15(a) further specifies that 

costs and benefits 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. 

Accordingly, the Commission can, in its 

discretion, give greater weight to any 

one of the five enumerated areas of 

concern and can, 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 

accomplish any of the purposes, of the 

Commodity Exchange Act. 

The proposed amendments to part 

171 will not create any significant 

change in the Commission’s appellate 

process. In fact, the proposed 

amendments should enhance the 

protection of market participants and 

the public by excluding from the 

Commission’s review matters that 

represent routine enforcement of an 

NFA pre-determined sanction, freeing 

both the Commission’s and NFA’s 

resources. In addition, since the 

proposed amendments retain the 

Commission’s ability to consider 

appeals that present ‘‘extraordinary 

circumstances,’’ public interest 

considerations for fundamental fairness 

and the Commission’s supervisory 

authority regarding self-regulated 

organizations will not be compromised. 

After considering these factors, the 

Commission has determined to propose 

the amendments to part 171, as set forth 

below.

List of Subjects in 17 CFR Part 171 

Administrative practice and 

procedure, Commodity exchanges, 

Commodity futures.

In consideration of the following, the 

Commission proposes to amend chapter 

I of title 17 of the Code of Federal 

Regulations as follows:

PART 171—RULES RELATING TO 

REVIEW OF NATIONAL FUTURES 

ASSOCIATION DECISIONS IN 

DISCIPLINARY, MEMBERSHIP DENIAL, 

REGISTRATION AND MEMBER 

RESPONSIBILITY ACTIONS 

1. The authority citation for part 171 

continues to read as follows:

Authority: 7 U.S.C. 4a, 12a, and 21.

2. Section 171.1 is amended in 

paragraph (b)(4) to add ‘‘, Hearing 

Committee’’ between ‘‘Business 

Conduct Committees’’ and ‘‘or 

arbitration panels’’; and replacing ‘‘.’’

with ‘‘;’’ at the end of (b)(4); and by 

adding new paragraph (b)(5):

§ 171.1 Scope of rules.

* * * * *

(b) * * * 

(5) Suspension of a member or a 

person associated with a member based 

solely on that person’s failure to pay an 

arbitration award or a settlement 

agreement resulting from an arbitration 

action brought pursuant to Section 

17(b)(10) of the Act or rules and 

regulations of the National Futures 

Association, or a settlement agreement 

resulting from a mediation proceeding 

sponsored by the National Futures 

Association, unless there are 

extraordinary circumstances that 

involve something more than the 

ministerial application of a 

predetermined sanction, or raise a 

colorable claim that the NFA has acted 

arbitrarily.

* * * * *

Issued in Washington, DC on the 19th of 

October 2004, by the Commission. 

Jean A. Webb, 

Secretary of the Commission.

[FR Doc. 04–23828 Filed 10–22–04; 8:45 am] 

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DEPARTMENT OF THE TREASURY

Internal Revenue Service 

26 CFR Part 25 

[REG–163679–02] 

RIN 1545–BB72 

Qualified Interests

AGENCY: Internal Revenue Service (IRS), 

Treasury.

ACTION: Correction to notice of proposed 

rulemaking and notice of public 

hearing. 

SUMMARY: This document contains a 

correction to a notice of proposed 

rulemaking that was published in the 

Federal Register on Monday, July 26, 

2004 (69 FR 44476), relating to the gift 

tax special valuation rules and qualified 

interests.

FOR FURTHER INFORMATION CONTACT: Juli 

Ro Kim (202) 622–3090 (not a toll-free 

number).

SUPPLEMENTARY INFORMATION: 

Background 

The notice of proposed rulemaking 

(REG–163679–02), that is the subject of 

this correction is under section 2702 of 

the Internal Revenue Code. 

Need for Correction 

As published, the notice of proposed 

rulemaking (REG–163679–02), contains 

an error that may prove to be misleading 

and is in need of clarification. 

Correction of Publication 

Accordingly, the publication of the 

notice of proposed rulemaking and 

notice of public hearing (REG–163679–

02), which was the subject of FR Doc. 

04–16593, is corrected as follows: 

On page 44476, column 2, in the 

preamble, under the caption DATES, line 

2, the language ‘‘must be received by 

October 21, 2004.’’ is corrected to read 

‘‘must be received by October 25, 2004.’’

Guy R. Traynor, 

Federal Register Liaison, Publication and 

Regulations Branch, Legal Processing 

Division, Associate Chief Counsel, 

(Procedures & Administration).

[FR Doc. 04–23748 Filed 10–22–04; 8:45 am] 

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