Federal Register / Vol. 69, No. 216 / Tuesday, November 9, 2004 / Proposed Rules 64873

accomplished on all affected airplanes. 

Operators must continue to operate the 

airplane in the configuration required 

by this proposed AD unless an 

alternative method of compliance is 

approved. 

Costs of Compliance 

This proposed AD would affect about 

51 airplanes of U.S. registry. The 

proposed actions would take about 34 

work hours per airplane, at an average 

labor rate of $65 per work hour. 

Required parts would cost about $356 

per airplane. Based on these figures, the 

estimated cost of the proposed AD for 

U.S. operators is $130,866 or $2,566 per 

airplane. 

Regulatory Findings 

We have determined that this 

proposed AD would not have federalism 

implications under Executive Order 

13132. This proposed AD would not 

have a substantial direct effect on the 

States, on the relationship between the 

national Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify that the proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD. See the ADDRESSES

section for a location to examine the 

regulatory evaluation.

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Safety.

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows:

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new airworthiness 

directive (AD):

Airbus: Docket No. FAA–2004–19560; 

Directorate Identifier 2004–NM–121–AD. 

Comments Due Date 

(a) The Federal Aviation Administration 

must receive comments on this AD action by 

December 9, 2004. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to all Airbus Model 

A310–203, –204, –221, –222, –304, –322, 

–324, and –325 series airplanes, certificated 

in any category. 

Unsafe Condition 

(d) This AD was prompted by the 

manufacturer’s analysis for compliance with 

Special Federal Aviation Regulation No. 88, 

which has shown that wiring 2M of the 115V 

anti-collision white strobe lights and wiring 

2S of the fuel quantity indication system 

(FQIS) should be rerouted into separate 

conduits. We are issuing this AD to prevent 

chafing damage to wiring 2M and 2S, which 

could result in a short circuit and 

consequently introduce an electrical current 

into the wiring of the FQIS and create an 

ignition source in the fuel tank. 

Compliance 

(e) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Modification 

(f) Within 72 months after the effective 

date of this AD, modify the routing of 

electrical harness 636VB in the right-hand 

wing by accomplishing all of the actions in 

the Accomplishment Instructions of Airbus 

Service Bulletin A310–28–2140, Revision 04, 

dated March 31, 2004. 

Credit for Previously Accomplished Service 

Bulletins 

(g) Modification of the routing of electrical 

harness 636VB accomplished before the 

effective date of this AD in accordance with 

Airbus Service Bulletin A310–28–2140, 

Revision 02, dated May 24, 2002; or Revision 

03, dated November 21, 2002; is acceptable 

for compliance with the requirements of 

paragraph (f) of this AD. 

Alternative Methods of Compliance 

(AMOCs) 

(h) The Manager, International Branch, 

ANM–116, Transport Airplane Directorate, 

FAA, has the authority to approve AMOCs 

for this AD, if requested in accordance with 

the procedures found in 14 CFR 39.19. 

Related Information 

(i) French airworthiness directive F–2004–

005, dated January 7, 2004, also addresses the 

subject of this AD.

Issued in Renton, Washington, on 

November 1, 2004. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service.

[FR Doc. 04–24938 Filed 11–8–04; 8:45 am] 

BILLING CODE 4910–13–U

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 1 

RIN 3038–AC16 

Distribution of ‘‘Risk Disclosure 

Statement’’ by Futures Commission 

Merchants and Introducing Brokers

AGENCY: Commodity Futures Trading 

Commission.

ACTION: Proposed rule.

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing to amend Rule 

1.55 to provide that non-institutional 

customers may indicate with a single 

signature, in addition to the 

acknowledgment of receipt of various 

disclosures and the making of certain 

elections, the consent referenced in 

Rules 155.3(b)(2) and 155.4(b)(2) 

concerning customer permission for 

futures commission merchants 

(‘‘FCMs’’) and introducing brokers 

(‘‘IBs’’) to take the opposite side of an 

order.

DATES: Comments must be received by 

December 9, 2004.

ADDRESSES: You may submit comments, 

identified by RIN 3038–AC16, by any of 

the following methods: 

• Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: secretary@cftc.gov. Include 

‘‘Proposed Amendments to Rule 1.55’’

in the subject line of the message. 

• Fax: (202) 418–5521. 

• Mail: Send to Jean A. Webb, 

Secretary of the Commission, 

Commodity Futures Trading 

Commission, 1155 21st Street, NW., 

Washington DC 20581. 

• Courier: See above. 

Instructions: All comments received 

will be posted without change to

http://www.cftc.gov, including any 

personal information provided.

FOR FURTHER INFORMATION CONTACT:

Lawrence B. Patent, Deputy Director, or 

Susan A. Elliott, Special Counsel, 

Compliance and Registration Section, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission. Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

64874 Federal Register / Vol. 69, No. 216 / Tuesday, November 9, 2004 / Proposed Rules 

1 65 FR 77993 at 78013 (December 13, 2000).

2 65 FR 82272

3 66 FR 45221 at 45226 (August 28, 2001) 

(proposed rules) and 66 FR 53510 at 53513 (October 

23, 2001) (final rules).

4 58 FR 17495, 17498 (April 5, 1993).

5See 57 FR 34853 (August 7, 1992).

6 58 FR at 17498.

7 Id. at 17498–99 & nn. 17–18.

8This included the amendment of Rule 1.55(d)(1) 

and (2) to permit within the ‘‘single signature’’

format the consents: (2) to allow electronic 

transmission of statements under new rule 1.33(g), 

and (2) to transfer funds out of segregated accounts 

to another account (such as a money market 

account).

9 65 FR at 77993 (December 13, 2000).

10 47 FR 18618–18621 (April 30, 1982).

11 Id.

20581. Telephone: (202) 418–5439 or 

(202) 418–5464, or electronic mail: 

lpatent@cftc.gov or selliott@cftc.gov.

SUPPLEMENTARY INFORMATION: 

I. Background 

The Commission is proposing to 

amend Rule 1.55 to provide that the 

single signature by which noninstitutional customers acknowledge 

receipt of basic risk disclosures of 

futures and option trading, and elect 

how hedging positions shall be handled 

in the event of a commodity broker 

bankruptcy, may also reflect the consent 

referenced in Rules 155.3(b)(2) and 

155.4(b)(2) concerning customer 

permission for FCMs and IBs to take the 

opposite side of an order. The 

Commission adopted a similar rule 

amendment in November 2000,1 but 

withdrew it the following month upon 

passage of the Commodity Futures 

Modernization Act of 2000.2 Most of the 

rules adopted and withdrawn in 2000 

were reproposed and re-adopted in 

2001,3 but this one was not. Recently, 

Commission staff received an inquiry 

about this issue and the Commission 

has determined to repropose the rule 

amendment.

The Commission first adopted the socalled single signature acknowledgment 

format in 1993.4 It had proposed that 

use of the single signature format be 

limited to certain sophisticated 

customers.5 However, the Commission 

stated in the final rule that three of four 

commenters noted ‘‘that since when an 

account is opened customers generally 

receive and must acknowledge all 

prescribed disclosures at the same time, 

it is reasonable to permit the customer 

to acknowledge all such statements by 

means of a single signature. Such 

commenters contended that separate 

signatures do not convey the required 

disclosures more clearly and 

compellingly.’’ 6 In that rule, the 

Commission extended the single 

signature acknowledgment format to all 

customers, but excluded the 

acknowledgments required by Rules 

155.3(d) and 155.4(d) on the grounds 

that a separate signature would reflect 

more ‘‘meaningful confirmation of the 

customer’s review of the relevant 

disclosures.’’ 7

In 2000, the Commission adopted rule 

amendments that included the Rule 

155.3(d) and 155.4(d) acknowledgments, 

and all other acknowledgments,8 within 

the single signature acknowledgment 

format, concluding that the requirement 

of multiple signatures, which may or 

may not reflect enhanced review of the 

documents, is not practical in light of 

the need to further streamline the 

account opening process. The 

Commission noted: ‘‘All of the 

commenters who addressed the 

proposed amendments to Rule 1.55(d) 

responded favorably to the expansion of 

disclosures and consents that could be 

acknowledged and made by a single 

signature, and the Commission is 

adopting the amendments as proposed. 

* * * The Commission agrees that the 

FCM may open the customer account 

simultaneously with receiving the 

acknowledgment of receipt and 

understanding of the risk disclosure 

statement, along with margin funds and 

any other required account opening 

documents, from the customer. 

However, the FCM will remain 

responsible for ensuring that the risk 

disclosure document is furnished to the 

customer in such a way that the 

customer can review and understand 

the document before committing funds 

to the FCM.’’ 9

II. Proposed Rule Amendment 

Rule 1.55 ensures the important 

customer protection of requiring 

intermediaries to disclose the basic risks 

of futures and options trading to their 

non-institutional customers. Over the 

years, it has been recognized that the 

relative sophistication of the customer 

should determine the degree of 

disclosure obligation, with noninstitutional and retail (and presumably 

less sophisticated) customers the 

beneficiaries of the most detailed 

disclosure. 

One aspect of risk disclosure is 

intended to ensure that the customer 

understands and consents to the trading 

practices of FCMs and IBs that are 

permitted by Commission regulations. 

Rules 155.3(b)(2) and 155.4(b)(2) permit 

FCMs and IBs, respectively, to take the 

other side of any order of a customer, 

subject to contract market rules, if that 

customer has given prior consent. These 

rules implement the specific provisions 

of Section 4b(a)(2)(C)(iv) of the Act that 

prohibit knowingly taking, directly or 

indirectly, the other side of a customer 

order without the customer’s consent. 

The Commission recognizes the 

important customer protection interests 

served by Section 4b(a)(2)(C)(iv) of the 

Act and Rules 155.3(b)(2) and 

155.4(b)(2) to address the inherent 

conflict of interest that arises when an 

FCM or IB is the opposite party to a 

transaction with its own customer. The 

Commission also recognizes that 

simplifying and streamlining the 

account opening process, which was 

begun in 1993 as described above, is 

also an important goal in today’s 

financial markets. The Commission 

believes that the content of disclosure 

and that the manner of acknowledging 

receipt of such disclosure by noninstitutional customers is appropriate to 

the single signature acknowledgment 

format. The Commission further 

believes that, as it determined in 2000, 

the acknowledgements required by 

Rules 155.3(b) and 155.4(b) may 

appropriately be included within the 

single signature. 

III. Related Matters 

A. Regulatory Flexibility Act

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601–611, requires that 

agencies, in proposing rules, consider 

the impact of those rules on small 

businesses. The Commission has 

previously established certain 

definitions of ‘‘small entities’’ to be used 

by the Commission in evaluating the 

impact of its rules on such entities in 

accordance with the RFA.10 The 

Commission previously has determined 

that, based upon the fiduciary nature of 

the FCM/customer relationships, as well 

as the requirement that FCMs meet 

minimum financial requirements, FCMs 

should be excluded from the definition 

of small entities. With respect to IBs, the 

CFTC has stated that it is appropriate to 

evaluate within the context of a 

particular rule proposal whether some 

or all of the affected entities should be 

considered small entities and, if so, to 

analyze the economic impact on them of 

any rule.11 In this regard, the rule being 

proposed would not require any IB to 

change its current method of doing 

business, and in fact eases a regulatory 

burden by permitting a single signature 

of the customer to represent an 

additional consent required by 

Commission regulations. Therefore, the 

Acting Chairman, on behalf of the 

Commission, hereby certifies, pursuant 

to 5 U.S.C. 605(b), that this proposed 

regulation will not have a significant 

Federal Register / Vol. 69, No. 216 / Tuesday, November 9, 2004 / Proposed Rules 64875

12Pub. L. 104–13 (May 13, 1995).

13See 66 FR 45221, 45228 (August 28, 2001).

economic impact on a substantial 

number of small entities.

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 

1995 12 imposes certain requirements on 

federal agencies (including the 

Commission) in connection with their 

conducting or sponsoring any collection 

of information as defined by the 

Paperwork Reduction Act (‘‘PRA’’). The 

amendment to Rule 1.55(d) that is the 

subject of this proposed rulemaking 

does not alter the paperwork burden 

associated with the OMB Collection of 

Information submission, OMB Control 

Number 3038–0022, Rules Pertaining to 

Contract Markets and Their Members, 

where the Commission most recently 

described the paperwork burden 

associated with the 2001 rulemaking 

amendments.13 Thus, there is no need 

for an additional submission pursuant 

to the PRA.

List of Subjects in 17 CFR Part 1 

Brokers, Commodity Futures, 

Consumer protection, Disclosure, 

Reporting and recordkeeping 

requirements.

In consideration of the foregoing, and 

pursuant to the authority contained in 

the Commodity Exchange Act and, in 

particular, Sections 4b, 4c(b), and 8a(5) 

thereof, 7 U.S.C. 6b, 6c(b), and 12a(5) 

(2000), and pursuant to the authority 

contained in 5 U.S.C. 552 and 552b 

(2003), the Commission hereby proposes 

to amend Chapter I of Title 17 of the 

Code of Federal Regulations as follows:

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT 

1. The authority citation for Part 1 

continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 4, 6, 6a, 6b, 6c, 

6d, 6e, 6f, 6g, 6h, 6i, 6j, 6k, 6l, 6m, 6n, 6o, 

6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a, 13a–1, 

16, 16a, 19, 21, 23, and 24, as amended by 

the Commodity Futures Modernization Act of 

2000, appendix E of Pub. L. 106–554, 114 

Stat. 2763 (2000).

2. Section 1.55 is proposed to be 

amended by revising paragraph (d)(1) to 

read as follows:

§ 1.55 Distribution of ‘‘Risk Disclosure 

Statement’’ by futures commission 

merchants and introducing brokers.

* * * * *

(d) * * * 

(1) Prior to the opening of such 

account, the futures commission 

merchant or introducing broker obtains 

an acknowledgment from the customer, 

which may consist of a single signature 

at the end of the futures commission 

merchant’s or introducing broker’s 

customer account agreement, or on a 

separate page, of the disclosure 

statements, consents and elections 

specified in this section and § 1.33(g), 

and in § 33.7, § 155.3(b)(2), § 155.4(b)(2), 

and § 190.06 of this chapter, and which 

may include authorization for the 

transfer of funds from a segregated 

customer account to another account of 

such customer, as listed directly above 

the signature line, provided the 

customer has acknowledged by check or 

other indication next to a description of 

each specified disclosure statement, 

consent or election that the customer 

has received and understood such 

disclosure statement or made such 

consent or election; and

* * * * *

Dated: November 4, 2004.

By the Commission. 

Jean A. Webb, 

Secretary of the Commission.

[FR Doc. 04–24949 Filed 11–8–04; 8:45 am] 

BILLING CODE 6351–01–P

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 117

[CGD08–04–040] 

RIN 1625–AA09

Drawbridge Operation Regulation; 

Mississippi River, Iowa and Illinois

AGENCY: Coast Guard, DHS.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Coast Guard proposes to 

change the regulation governing the 

Clinton Railroad Drawbridge, Mile 

518.0, Upper Mississippi River, at 

Clinton, Iowa. The drawbridge would 

open on signal if at least 24 hours 

advance notice is given from 7:30 a.m., 

on December 15, 2004, until 7:30 a.m. 

on March 1, 2005. This proposed rule 

would allow time for making upgrades 

to critical mechanical components and 

perform scheduled annual maintenance 

and repairs.

DATES: Comments and related material 

must reach the Coast Guard on or before 

December 9, 2004.

ADDRESSES: You may mail comments 

and related material to Commander, 

Eighth Coast Guard District, Bridge 

Branch, 1222 Spruce Street, St. Louis, 

MO 63103–2832. Commander (obr) 

maintains the public docket for this 

rulemaking. Comments and material 

received from the public, as well as 

documents indicated in this preamble as 

being available in the docket, will 

become part of this docket and will be 

available for inspection or copying at 

room 2.107f in the Robert A. Young 

Federal Building, Eighth Coast Guard 

District, between 8 a.m. and 4 p.m., 

Monday through Friday, except Federal 

holidays.

FOR FURTHER INFORMATION CONTACT: Mr. 

Roger K. Wiebusch, Bridge 

Administrator, (314) 539–3900, 

extension 2378.

SUPPLEMENTARY INFORMATION: 

Request for Comments 

We encourage you to participate in 

this rulemaking by submitting 

comments and related material. If you 

do so, please include your name and 

address, identify the docket number for 

this rulemaking (CGD08–04–040), 

indicate the specific section of this 

document to which each comment 

applies, and give the reason for each 

comment. Please submit all comments 

and related material in an unbound 

format, no larger than 81⁄2 by 11 inches, 

suitable for copying. If you would like 

to know that they reached us, please 

enclose a stamped, self-addressed 

postcard or envelope. We will consider 

all comments and material received 

during the comment period. We may 

change this proposed rule in view of 

them. 

Public Meeting

We do not now plan to hold a public 

meeting. But you may submit a request 

for a meeting by writing to the Eighth 

Coast Guard District, Bridge Branch, at 

the address under ADDRESSES explaining 

why one would be beneficial. If we 

determine that one would aid this 

rulemaking, we will hold one at a time 

and place announced by a later notice 

in the Federal Register. 

Background and Purpose 

On September 7, 2004, the Union 

Pacific Railroad Company requested a 

temporary change to the operation of the 

Clinton Railroad Drawbridge across the 

Upper Mississippi River, Mile 518.0 at 

Clinton, Iowa to open on signal if at 

least 24 hours advance notice is given 

to facilitate critical bridge repair and 

annual maintenance. Advance notice 

may be given by calling the Clinton 

Yardmaster’s office at (563) 244–3204 at 

any time; or (563) 244–3269 weekdays 

between 7 a.m. and 3:30 p.m.; or Mr. 

Tomaz Gawronski, office (515) 263–

4536 or cell phone (515) 229–2993.