76392 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

1Section 4i of the Act requires the filing of such 

reports as the Commission may require when 

transactions or positions made or obtained on 

contract markets or derivatives transaction 

execution facilities equal or exceed Commission set 

levels. Section 4g of the Act requires each 

registrant, whether an FCM, introducing broker, 

floor broker, or floor trader, to file such reports as 

the Commission may require on proprietary and 

customer transactions or positions executed on any 

board of trade in the United States or elsewhere.

2 Information collected through the large trader 

reporting system is also important to the 

Commission’s financial surveillance efforts in 

furtherance of its responsibility to oversee the 

financial, as well as the economic, integrity of the 

markets. For example, the Division of Clearing and 

Intermediary Oversight uses various automated 

tools to combine position information with 

financial information routinely collected from 

FCMs to assess and analyze financial risks 

presented by large customer positions to both the 

firms carrying those positions and the respective 

clearing organizations.

3 69 FR 26333 (May 12, 2004).

4Specifically, parts 17 and 18 of the 

Commission’s regulations require reports from firms 

and traders, respectively, when a trader holds a 

‘‘reportable position.’’ See 17 CFR parts 17 and 18. 

A reportable position is any open contract position, 

as further defined in the rules, that at the close of 

the market on any business day equals or exceeds 

the quantity specified in Rule 15.03. See 17 CFR 

15.00. The firms that carry accounts for traders 

holding reportable positions are required to identify 

those accounts on Form 102 and to report positions 

in the accounts to the Commission. The individual 

trader who holds or controls a reportable position, 

however, is required to report position and 

identifying information to the Commission only in 

response to a special call.

List of Subjects in 14 CFR Part 71

Airspace, Incorporation by reference, 

Navigation (air).

Adoption of the Amendment

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 71 as follows:

PART 71—DESIGNATION OF CLASS A, 

CLASS B, CLASS C, CLASS D, AND 

CLASS E AIRSPACE AREAS; 

AIRWAYS; ROUTES; AND REPORTING 

POINTS

■ 1. The authority citation for 14 CFR 

part 71 continues to read as follows:

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389.

§ 71.1 [Amended]

■ 2. The incorporation by reference in 14 

CFR 71.1 of Federal Aviation 

Administration Order 7400.9M, 

Airspace Designations and Reporting 

Points, dated August 30, 2004, and 

effective September 16, 2004, is 

amended as follows:

* * * * *

Paragraph 6002 Class E airspace designated 

as surface area.

* * * * *

AAL AK E2 Kotzebue, AK—[Revised] 

Kotzebue, Ralph Wien Memorial Airport, AK 

(Lat. 66°53′05′′ N., long. 162°35′55′′ W.) 

Kotzebue VOR/DME 

(Lat. 66°53′08′′ N, long. 162°32′24′′ W) 

Hotham NDB 

(Lat. 66°54′05′′ N, long. 162°33′52′′ W)

Within a 4.8-mile radius of the Ralph Wien 

Memorial Airport and within 2.6 miles each 

side of the 039° bearing from Hotham NDB 

extending from the 4.8 mile radius to 8.9 

miles northeast of the airport and within 2.4 

miles each side of the 091° radial from the 

Kotzebue VOR/DME extending from the 4.8-

mile radius to 11.5 miles east of the airport 

and within 2.4 miles each side of the 278°

radial from the KotzebueVOR/DME 

extending from the 4.8-mile radius to 10.2 

miles west of the airport. This Class E 

airspace is effective during the specific dates 

and times established in advance by a Notice 

to Airman. The effective date and time will 

thereafter be continuously published in the 

Airport/Facility Directory.

* * * * *

Issued in Anchorage, AK, on December 10, 

2004. 

Anthony M. Wylie, 

Acting Area Director, Alaska Flight Services 

Area Office.

[FR Doc. 04–27826 Filed 12–20–04; 8:45 am] 

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 15, 16, 17, 18, 19 and 21

RIN 3038–AC08

Reporting Levels and Recordkeeping

AGENCY: Commodity Futures Trading 

Commission.

ACTION: Final rules.

SUMMARY: The Commodity Futures 

Trading Commission (Commission or 

CFTC) has adopted several amendments 

to its contract market and large trader 

reporting rules (reporting rules). First, 

with regard to contract reporting levels, 

the Commission has raised existing 

levels for certain commodities, 

established a new default contract 

reporting level for broad-based 

securities indexes, and introduced 

additional reporting levels to address 

recent market developments. Second, 

the Commission has adopted rules to 

specify the manner in which a set of 

new transactions, such as exchanges of 

futures for swaps, are reported to the 

Commission. Third, the Commission 

has updated its reporting rules to 

acknowledge current data transmission 

practices, to foster innovative means of 

filing forms identifying the owners of 

accounts with reportable positions, and 

to eliminate the use of Form 103 for the 

submission of special call data. Finally, 

the Commission has adopted a number 

of clarifying and technical amendments.

DATES: Effective January 20, 2005.

FOR FURTHER INFORMATION CONTACT: Gary 

Martinaitis, Associate Deputy Director 

for Market Information, Market 

Surveillance Section (telephone 202–

418–5209, e-mail gmartinaitis@cftc.gov), 

or Bruce Fekrat, Attorney, Office of the 

Director (telephone 202–418–5578, email bfekrat@cftc.gov), Division of 

Market Oversight, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581.

SUPPLEMENTARY INFORMATION: 

I. Large Trader Reporting Rules 

A. Background 

The Commission’s reporting rules 

provide an important tool for market 

oversight and other surveillance 

activities. The rules governing this 

system, among other things, require 

futures commission merchants (FCMs), 

clearing members and foreign brokers 

(collectively reporting firms) to report 

position and identifying information of 

the largest futures and option traders, 

and require traders themselves to 

provide certain position and identifying 

information to the Commission. 

Reporting levels are set for futures and 

option contracts under the authority of 

sections 4c and 4i of the Commodity 

Exchange Act (CEA or Act) to ensure 

that the Commission receives adequate 

information to carry out its market 

surveillance programs.1 These market 

surveillance programs are designed to 

detect and prevent price manipulation 

and market congestion on designated 

contract markets (DCMs), and to enforce 

speculative position limits pursuant to 

section 4a of the Act. The Commission’s 

market surveillance programs also 

provide information on the overall 

hedging and speculative use of, and 

foreign participation in, the futures and 

option markets and other matters of 

public interest.2 On May 12, 2004, the 

Commission published a notice of 

rulemaking for public comment 

proposing to amend its reporting rules.3

With several minor exceptions, the 

Commission herein is adopting the 

amendments as proposed.

B. Raising Contract Reporting Levels for 

Certain Commodities 

1. Amended Reporting Levels 

Generally, the firm carrying a trader’s 

reportable position files large trader 

reports.4 The Commission has 

traditionally calibrated contract 

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76393

5Previously, the reporting levels for the S&P 500 

Stock Price Index contract and the E-Mini S&P 500 

Stock Price Index contract were 1,000 and 300 

contracts, respectively. As amended, the reporting 

levels for the S&P 500 Stock Price Index contract 

and the E-Mini S&P 500 Stock Price Index contract 

will be the same. Accordingly, the Commission is 

deleting the separate reference to the E-Mini S&P 

500 Stock Price Index in Rule 15.03. Subject to this 

single exception for the E-Mini S&P 500 Stock Price 

Index contract, the Commission’s practice has been 

to apply the same reporting level to both e-mini and 

related full-size contracts.

6Letter from Satish Nandapurkar, CEO, U.S. 

Futures Exchange, L.L.C. to Jean A. Webb, Secretary 

of the Commission at 1 (June 10, 2004) (on file with 

the Commission). 7 Id.

8A Series ’01 Report itemizes the account number 

and certain positions, deliveries, and exchanges of 

futures associated with each account carrying a 

reportable position. See 17 CFR 17.00. The name, 

address, and occupation of the person or persons 

who own such accounts are separately identified on 

Form 102. See 17 CFR 17.01.

9Form 40 is a statement filed by a reporting trader 

on special call from the Commission. Reporting 

traders must list their name, address, telephone 

number, and principal occupation. Reporting 

traders are also required to disclose certain 

information relating to their business associations 

and their financial interest in, and control of, 

accounts that carry reportable positions. See 17 CFR 

part 18. 10See 62 FR 24026, 24028 n. 7 (May 2, 1997).

reporting levels to ensure that the 

aggregate of all positions reported to the 

Commission typically represents 70 to 

90 percent of the open interest in any 

given contract. The Commission 

periodically reviews for each contract 

information concerning trading volume, 

open interest, the number and position 

sizes of individual traders relative to the 

reporting levels, and the Commission’s 

surveillance experience with specific 

contracts, to determine if coverage of 

open interest is adequate for effective 

market surveillance. In this regard, the 

Commission is mindful of the burden 

associated with these reporting 

requirements and reviews them with an 

eye to streamlining that burden to the 

extent compatible with its 

responsibilities for rigorous surveillance 

of the commodity futures and option 

markets. The Commission’s most recent 

review of reporting levels indicates that 

the relative size of trading volume, open 

interest, and positions of traders enables 

the Commission to raise reporting levels 

as follows: (1) Milk, Class III from 25 to 

50 contracts; (2) Soybeans from 100 to 

150 contracts; (3) Wheat from 100 to 150 

contracts; (4) Corn from 150 to 250 

contracts; (5) Sugar No. 11 from 400 to 

500 contracts; (6) Cotton from 50 to 100 

contracts; (7) Natural Gas from 175 to 

200 contracts; (8) Crude Oil, Sweet—No. 

2 Heating Oil Crack Spread from 25 to 

250 contracts; (9) Crude Oil, Sweet—

Unleaded Gasoline Crack Spread from 

25 to 150 contracts; (10) Unleaded 

Gasoline—No. 2 Heating Oil Spread 

Swap from 25 to 150 contracts; (11) 1-

Month LIBOR from 300 to 600 contracts; 

(12) 30-Day Fed Funds from 300 to 600 

contracts; (13) 3-Month Eurodollar Time 

Deposit Rates from 1,000 to 3,000 

contracts; (14) TRAKRS from 25,000 to 

50,000 contracts; (15) E-Mini S&P 500 

Stock Price Index from 300 to 1,000 

contracts 5; (16) 2-Year U.S. Treasury 

Notes from 500 to 1,000 contracts; (17) 

5-Year U.S. Treasury Notes from 800 to 

2,000 contracts; (18) 10-Year U.S. 

Treasury Notes from 1,000 to 2,000 

contracts; and (19) 30-Year U.S. 

Treasury Bonds from 1,000 to 1,500 

contracts.

In response to the proposed 

rulemaking’s request for public 

comment, U.S. Futures Exchange, L.L.C. 

(Eurex US), a Commission designated 

board of trade, recommended increasing 

the contract reporting level for all U.S. 

Treasury Notes and Bonds to the 5,000 

contract range.6 As stated in its 

comment letter, Eurex US based its 

recommendation on the amount of 

deliverable supply, increases in trading 

volume, and the average size of specific 

transactions.7 The Commission carefully 

considered Eurex US’s 

recommendation, but concluded that 

more modest increases in contract 

reporting levels better facilitate the 

Commission’s obligation to rigorously 

surveil the market for U.S. Treasury 

Notes and Bonds.

2. The Impact of Raising Reporting 

Levels

The adjustments to reporting levels 

will decrease the number of daily 

position and identifying reports, such as 

Series ’01 Reports and Forms 102, that 

reporting firms are currently required to 

file.8 The number of Forms 40 filed by 

large traders will also decrease.9

However, according to administrative 

experience and analysis performed by 

the Commission’s surveillance staff, the 

percent of total market open interest 

reported through the large trader 

reporting system will remain at a level 

deemed sufficient for rigorous market 

surveillance.

Furthermore, not all reporting firms 

may elect to report under the 

Commission’s higher, and therefore 

potentially less burdensome, reporting 

levels because exchanges also maintain 

large trader reporting systems that are 

similar in most respects to the 

Commission’s system. The exchanges 

set their own reporting levels, which for 

particular contracts may vary from 

Commission set levels. When exchange 

reporting levels are set lower than those 

set by the Commission, firms may report 

to the Commission at the lower 

exchange set level, thereby saving any 

cost associated with reprogramming 

their reporting systems.10 The 

Commission, however, only requires the 

filing of large trader reports for positions 

that equal or exceed its reporting levels.

C. Default Reporting Level for BroadBased Securities Indexes 

The general default reporting level for 

all positions, including positions in 

broad-based securities indexes, is 

currently 25 contracts. The Commission 

is adopting, as proposed, a new default 

reporting level of 200 contracts 

specifically for broad-based securities 

indexes. By adopting such a default 

reporting level, the following 

commodities will no longer be 

enumerated in Rule 15.03, and 

therefore, will be subject to the new 

default reporting level of 200 contracts: 

(1) S&P 400 Midcap Stock Index—

currently 100 contracts; (2) Dow Jones 

Industrial Average Index—currently 100 

contracts; (3) New York Stock Exchange 

Composite Index—currently 50 

contracts; (4) Amex Major Market Index, 

Maxi—currently 100 contracts; (5) 

NASDAQ 100 Stock Index—currently 

100 contracts; (6) Russell 2000 Stock 

Index—currently 100 contracts; (7) 

Value Line Average Index—currently 50 

contracts; and (8) NIKKEI Stock Index—

currently 100 contracts. The reporting 

level for the S&P 500 Stock Price Index 

and the Municipal Bond Index, 

however, will remain at 1,000 and 300 

contracts, respectively. 

D. Additional Contract Reporting Levels 

To address recent market 

developments, the Commission is 

establishing enumerated reporting levels 

for three German federal government 

debt instruments, as well as a reporting 

level for products that are offered by 

HedgeStreet, Inc. (HedgeStreet), a new 

DCM. The reporting levels for the 

German debt instruments and the 

products offered by HedgeStreet are as 

follows: (1) 10-Year German Federal 

Government Debt—1,000 contracts; (2) 

5-Year German Federal Government 

Debt—800 contracts; (3) 2-Year German 

Federal Government Debt—500 

contracts; and (4) HedgeStreet 

Products—125,000 contracts. 

The reporting level enumerated for 

HedgeStreet products is applicable to 

HedgeStreet contracts that pay a 

maximum of $10.00 if in the money 

upon expiration. In light of the 

relatively low value of these products, 

the Commission is adopting a reporting 

level of 125,000 contracts. Since the 

value of HedgeStreet products could 

result in the reporting of positions that 

76394 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

11See 17 CFR 17.00(g)(1).

12Letter from Michael Connor, President, 

HedgeStreet, Inc. to Jean A. Webb, Secretary of the 

Commission at 1 (June 8, 2004) (on file with the 

Commission).

13See Division of Market Oversight No-Action 

Letter to HedgeStreet, Inc. (July 26, 2004) (on file 

with the Commission).

14Appendix E of Pub. L. 106–554, 114 Stat. 2763 

(2000).

15For instance, section 5(b)(3)(B) of the Act 

provides that DCM rules may authorize ‘‘an 

exchange of—(i) futures in connection with a cash 

commodity transaction; (ii) futures for cash 

commodities; or (iii) futures for swaps * * *.’’ 7 

U.S.C. 7(b)(3)(B).

16An EFS, EFR, and EFO works similarly to a 

transaction involving the exchange of futures for 

physicals (EFP). EFPs allow market participants to 

exchange a position in a futures contract with a 

similar cash market position. EFSs allow market 

participants to exchange a position in a futures 

contract for a cash-settled swap position. EFRs 

allow market participants to exchange a position in 

a futures contract for an over-the-counter 

derivatives position. EFOs allow market 

participants to exchange a position in a futures 

contract for an off-exchange options position.

17 In the notice of proposed rulemaking, the 

Commission referred to transactions involving the 

exchange of futures as ‘‘exchanges of futures for a 

commodity or transaction other than a futures 

product.’’ 69 FR 26335. The final rules, however, 

refer to such transactions as ‘‘exchanges of futures 

for a commodity or for a derivatives position’’ in 

order to capture a broader set of transactions and 

remain consistent with terminology used in another 

Commission notice of rulemaking. See 69 FR 39880 

(July 1, 2004).

18Letter from John Munro, Senior Vice President 

of Product Design, Rolfe and Nolan Systems, Inc. 

to Jean A. Webb, Secretary of the Commission at 1 

(June 1, 2004) (on file with the Commission).

19 Id.

20Although generally supportive of the 

Commission’s efforts to encourage electronic 

methods for publishing information and making 

regulatory filings, Eurex US commented that the 

Commission should adopt a consistent electronic 

protocol for the submission of data. Letter from 

Satish Nandapurkar, CEO, U.S. Futures Exchange, 

L.L.C. to Jean A. Webb, Secretary of the 

Commission at 2 (June 10, 2004) (on file with the 

Commission). As requested, the Commission will 

endeavor to adopt consistent and uniform 

electronic data submission procedures where 

appropriate. Nevertheless, the Commission believes 

that in order to lessen reporting and filing burdens 

numerically are very large, and due to 

current limitations in the Commission’s 

large trader record format, HedgeStreet 

positions are to be reported under part 

17 of the Commission’s regulations by 

rounding down to the nearest 1,000 

contracts and then dividing by 1,000. 

For example, a position of 177,955 

contracts would be rounded down to 

177,000 contracts, divided by 1,000, and 

then reported as 177.11

As initially structured by the 

Commission, the proposed enumerated 

reporting level for HedgeStreet products 

applied only to European-style binary 

options that were derivatives of 

economic indexes and paid a fixed 

$10.00 when in the money upon 

expiration. The terms of the proposed 

reporting level were based upon the 

Commission’s understanding that 

HedgeStreet contracts would initially 

have economic indexes as their 

underlying. However, in its comment 

letter on the proposed rulemaking, 

HedgeStreet requested that the 

Commission apply the 125,000 contract 

reporting level to HedgeStreet products 

that would not have economic indexes 

as their underlying.12

Because of the relatively low notional 

value of HedgeStreet products, the 

reporting levels otherwise applicable to 

such contracts, including the default 

reporting level of 25 contracts, may 

place an undue reporting burden on 

HedgeStreet and its members without 

substantially facilitating the 

Commission’s objective of, and 

responsibility for, conducting 

meaningful market surveillance. The 

Commission, therefore, believes that a 

reporting level of 125,000 contracts for 

all HedgeStreet commodity futures and 

option contracts with a maximum 

payout of $10 appropriately apprises the 

Commission of significant positions and 

relieves unnecessary burdens on 

HedgeStreet and its members.13

II. Trades Involving the Exchange of 

Commodity Futures Contracts 

On December 21, 2000, the President 

signed into law the Commodity Futures 

Modernization Act of 2000 (CFMA), 

extensively revising the CEA.14 The 

CFMA facilitated the introduction of 

certain new transactions by the 

exchanges, including certain offcentralized-market trades such as 

exchanges of futures for swaps (EFS).15

Currently, several exchanges have rules 

permitting EFSs and other types of offcentralized-market trades referred to as 

exchanges of futures for risk (EFR) and 

exchanges of futures for options 

(EFO).16 However, parts 16 and 17 of the 

Commission’s regulations previously 

required contract markets and reporting 

firms to separately account only for 

volume attributable to EFPs.17

In order to recognize the growing use 

of these off-centralized-market trades, 

the final rules require exchanges and 

reporting firms to report all trades 

involving the exchange of futures for a 

commodity or for a derivatives position 

in the same manner as they previously 

reported EFP transactions. Therefore, 

exchanges and reporting firms will 

group together all EFPs, EFSs, EFRs, 

EFOs or other exchanges of futures for 

a commodity or for a derivatives 

position permitted by exchange rules, 

and report the sum under the same 

category. This is an appropriate 

approach because all of these trades are 

similar in that they permit the exchange 

of a futures position for an off-exchange 

position. Block trades, however, will not 

be included in this total because they do 

not involve the exchange of a 

commodity futures contract for a 

commodity or for a derivatives position. 

Volume attributable to block trades shall 

be reported with other volume. 

With regard to the reporting of 

exchanges of futures, one commenter, 

Rolfe and Nolan Systems, Inc., a 

recordkeeping and reporting service 

provider, requested that the 

Commission allow at least 90 days after 

the finalization of the reporting rules for 

FCMs to comply with the requirement 

to aggregate exchanges of futures.18 The 

commenter indicated that compliance 

with the new requirement would 

compel certain programming 

modifications.19 In the Commission’s 

view, this request is reasonable. In order 

to permit ample time for persons with 

reporting obligations to implement any 

necessary programming modifications, 

the Commission will not institute any 

enforcement proceeding under parts 15 

through 18, and part 21, for noncompliance with the adopted reporting 

requirements applicable to exchanges of 

futures other than EFPs until the 

expiration of 90 days from the date of 

publication of these rules in the Federal 

Register. During this interval, 

compliance with the rules applicable to 

exchanges of futures is voluntary, 

however, persons with reporting 

obligations must continue to comply 

with all reporting requirements that are 

applicable to EFPs.

III. Modernization of Rules Covering 

Data and Hard Copy Submissions 

The Commission is adopting a series 

of rule amendments that are designed to 

update the reporting process in 

recognition of technological 

advancements. Parts 16 through 18, and 

part 21, previously required the 

submission of reports in hard copy form 

or through the dial-up transmission of 

data. The final rules amend these 

requirements to reflect the existing 

industry practice of using Internet data 

transmissions in place of dial-up 

transmissions and the use of exchange 

websites as a store of daily data in place 

of compiling information in hard copy 

form. The Commission, in addition to 

making certain other minor 

amendments that affect the reporting 

process, is also eliminating the use of 

Form 103 for the submission of special 

call data under part 18, and adopting 

final rules designed to foster innovation 

in the means reporting firms use to file 

Forms 102 as required by part 17.20

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76395

on all exchanges and market participants, electronic 

data submission protocols must inherently 

incorporate a reasonable measure of procedural 

flexibility.

21This matches current industry and Commission 

practice. The Commission is also amending Rule 

15.02 to remove Form 103 from the list of forms to 

be used in filing reports.

22Prior to 1997, the definition of a reportable 

position explicitly referenced options on physicals. 

17 CFR 15.00(b)(2) (1996). When the Commission 

amended that definition in 1997, that reference was 

deleted. 62 FR 24026 (May 2, 1997). The 

Commission believes that this deletion was 

unintentional as no explanation was provided at the 

time. Id.; see also 61 FR 37409 (July 18, 1996). 

Furthermore, both the Commission and the industry 

have continued to include options on physicals in 

reports filed under parts 15 through 21. See 17 CFR 

16.00(a), 16.01(a), 21.02a(b)(4)(vii). Accordingly, the 

Commission believes that it is appropriate at this 

time to amend the definition of reportable position 

to clarify that it includes options on physicals, both 

to correct what appears to have been an 

unintentional limitation of the definition in 1997 

and to align the definition with current industry 

and Commission reporting practices.

23Part 17 was amended in 1997 to reflect this 

requirement. See 62 FR 24026, 24028 n. 7 (May 2, 

1997). In practice, however, it appears that further 

clarification would be helpful.

24This change is consistent with earlier changes 

made to the Commission’s rules and does not 

relieve reporting firms from their obligation to 

comply with any applicable exchange requirements 

regarding the submission of Forms 102 to the 

exchanges. See 62 FR 24026 (May 2, 1997).

The rules contained within part 16 of 

the Commission’s regulations require 

reports from contract markets. The final 

rules eliminate the requirement for 

filing daily hard copy clearing member 

reports and daily hard copy submissions 

of data on trading volume, exchanges of 

futures, open contracts, delivery notices, 

option deltas, prices, and critical dates. 

These reports will only be required in 

hard copy form upon the request of the 

Commission or its staff. Also, the 

Commission is replacing the 

requirement of providing printed forms 

of data on trading volume, exchanges of 

futures, open contracts, delivery notices, 

and option deltas to the news media and 

members of the public with a general 

requirement that such information be 

made readily available to such persons. 

The Commission is also replacing 

explicit requirements in part 16 for the 

dial-up transmission of data with more 

general data transmission requirements. 

Finally, in light of advances in 

technology, the Commission is requiring 

the submission of clearing member 

reports and certain data regarding 

trading volume, open interest, prices 

and critical dates by 12 noon on the 

business day following the day to which 

the information pertains. Previously, 

such information was required to be 

submitted by 3 p.m. on the business day 

following the day to which the 

information pertained. The Commission 

believes that the information is 

currently being submitted within the 

adopted noon deadline. 

In part 17, which governs reports 

submitted by reporting firms, the 

Commission is substituting specific 

requirements pertaining to the use of 

dial-up transmissions, submissions of 

’01 forms, and computer printouts with 

more general data transmission 

requirements. Furthermore, the 

Commission will permit reporting firms 

to authenticate Forms 102 by a means 

other than manually signing the form. 

The signature requirement necessitates 

the physical filing of Forms 102. 

Physically filing these forms remains 

one of the more costly aspects of large 

trader reporting for the industry. In 

order to foster innovative and cost 

effective means of fulfilling this 

reporting requirement, including the 

possibility of electronic filing, the 

Commission will accept alternative 

means of authentication. While a 

manual signature will remain the 

default method of authentication, the 

Commission will retain the authority to 

approve other means of authentication 

as new filing solutions become available 

and accepted by market participants. 

In part 18, which governs reports filed 

by traders, the Commission is 

eliminating the use of Form 103 for data 

requested by the Commission on special 

call. The format of the submitted data 

will be per instruction contained in the 

call.21 In addition, consistent with the 

newly adopted requirements for the 

daily submission of large trader data, 

the Commission will also require traders 

to identify exchanges of futures for 

commodities or for derivatives positions 

in response to such a call.

The Commission is also deleting Rule 

18.02 which provides for the use of code 

numbers for the designation and 

identification of accounts. Rule 18.02 

was relevant to a reporting structure that 

relied on the routine receipt of large 

trader reports directly from traders. The 

Commission has not assigned a code 

number under Rule 18.02 in many years 

and, if a request for such assignment is 

made in the future, the Commission can 

accommodate the request informally. 

Finally, the Commission is amending 

part 18 by deleting Rule 18.06 as the 

referenced technology is no longer is 

use. 

In part 21, which governs special 

calls, the requirement for machinereadable information adhering to a 

specific record layout is deleted. The 

requirement for the information to be 

prepared in accordance with 

instructions in the call will remain. This 

matches current industry and 

Commission practice. 

IV. Clarifying and Technical 

Amendments 

The Commission has identified a 

number of other provisions of the 

reporting rules that either do not reflect 

current industry or Commission practice 

or otherwise should be corrected or 

updated. First, the Commission is 

amending Rule 15.00(b)(1)(ii) to clarify 

that options on physicals are included 

in the definition of reportable 

position.22 Second, the Commission is 

amending Rule 17.00(a) to clarify that a 

reportable position in a commodity in a 

special account requires that all 

positions in that same commodity on 

the same exchange in the special 

account be reported.23 Third, the 

Commission is amending Rule 17.04 to 

clarify that option positions are to be 

included in reports of omnibus 

accounts. Each of these clarifications is 

reflective of current industry and 

Commission practice.

The Commission is also amending 

Rules 16.00(b)(2) and 16.01(d)(2) to 

provide that the time by which the 

market reports required by those rules 

must be filed is governed by a particular 

time zone, unless otherwise specified by 

the Commission or its designee. The 

Commission specified eastern time for 

markets located in that time zone and 

central time for markets located 

elsewhere because Commission staff in 

Chicago and Kansas City assume 

surveillance duties for markets located 

outside of New York. The Commission 

is also adopting certain technical 

amendments to Rule 17.00(g). 

Specifically, it is removing the 

references to particular exchanges in 

subsection (2)(v) and making certain 

editorial changes in subsections (2)(vi) 

and (2)(xi). The Commission is also 

altering the requirement in Rule 17.01 

regarding identification of special 

accounts to exchanges on Form 102.24

Finally, the Commission is updating 

and correcting certain outdated 

references to the provisions of part 15 

that appear in part 19.

V. Related Matters 

A. Cost Benefit Analysis 

Section 15(a) of the Act requires the 

Commission to consider the costs and 

benefits of its action before issuing a 

new regulation under the Act. 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. 

Rather, section 15(a) requires the 

76396 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

25 69 FR at 26336.

26 47 FR 18618–21 (April 30, 1982).

27 69 FR 26333, 26337.

28Letter from John Munro, Senior Vice President 

of Product Design, Rolfe and Nolan Systems, Inc. 

to Jean A. Webb, Secretary of the Commission at 1 

(June 1, 2004) (on file with the Commission).

Commission to ‘‘consider the costs and 

benefits’’ of the subject rule. 

Section 15(a) further specifies that the 

costs and benefits of the proposed rule 

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. The Commission may, 

in its discretion, give greater weight to 

any one of the five enumerated areas of 

concern and may, 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 

to accomplish any of the purposes of the 

Act. 

The Commission’s notice of proposed 

rulemaking contained an analysis of its 

consideration of these costs and benefits 

and solicited public comment thereon.25

The Commission specifically invited 

commenters to submit any data that 

they had quantifying the costs and 

benefits of the proposed rules. The 

Commission, however, received no 

comment letter that considered the costs 

and benefits of the proposed rules. The 

Commission has considered the costs 

and benefits of these rules in light of the 

specific areas of concern identified in 

section 15. The Commission has 

endeavored in these rules to impose the 

minimum requirements necessary to 

enable the Commission to perform its 

oversight functions, to carry out its 

mandate of assuring the continued 

existence of competitive and efficient 

markets and to protect the public 

interest in markets free of fraud and 

abuse. After considering these factors, 

the Commission has determined to 

adopt the revisions to parts 15 through 

19, and part 21, as set forth below.

B. The Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 601 et seq., requires that 

agencies consider the impact of their 

rules on small businesses. The 

Commission has previously determined 

that contract markets, futures 

commission merchants and large traders 

are not ‘‘small entities’’ for purposes of 

the RFA.26 The requirements of the 

proposed amendments fall mainly on 

contract markets and FCMs. Similarly, 

foreign brokers and foreign traders 

report only if carrying or holding 

reportable large positions. In addition, 

these amendments relieve regulatory 

burdens. Accordingly, the Acting 

Chairman, on behalf of the Commission, 

hereby certifies, pursuant to 5 U.S.C. 

605(b), that the actions taken herein will 

not have a significant economic impact 

on a substantial number of small 

entities.

C. The Paperwork Reduction Act 

The revision of collections of 

information in these final rules have 

been reviewed and approved by the 

Office of Management and Budget 

pursuant to the Paperwork Reduction 

Act of 1995, 44 U.S.C. 3507(d), under 

control numbers 3038–0009 and 3038–

0012. An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number. In the notice of 

proposed rulemaking, the Commission 

estimated the paperwork burden that 

would be imposed by the rules and 

sought comments on the estimates.27

Only a single comment pertained 

tangentially to the collections of 

information requirements. Rolfe and 

Nolan Systems, Inc., a recordkeeping 

and reporting service provider, 

requested that the Commission allow at 

least 90 days for FCMs to comply with 

the requirement to aggregate exchanges 

of futures for reporting purposes.28 The 

Commission has determined to grant 

that request.

1. Scope of the Collections of 

Information 

Parts 15 through 21 of the 

Commission’s regulations require 

reports from exchanges and large trader 

reports from clearing members, FCMs, 

foreign brokers, and traders. These rules 

are designed to provide the Commission 

with information to effectively conduct 

its market surveillance program, which 

includes the detection and prevention of 

price manipulation and enforcement of 

speculative position limits. The final 

rules give exchanges, reporting firms, 

and traders substantial flexibility in 

adopting technologically advanced 

techniques for data collection, retention, 

and submission. 

Part 16 of the Commission’s 

regulations requires reports from 

exchanges. The final rules eliminate the 

requirements for daily hard copy 

clearing member and market data 

reports to the Commission. 

Furthermore, the Commission has 

replaced explicit requirements for a 

dial-up form of data transmission with 

more general requirements for data 

transmission. 

In part 17, which governs reports by 

reporting firms, the Commission has 

replaced specific requirements 

pertaining to the use of dial-up 

transmissions with more general data 

transmission requirements. In order to 

foster more innovative and cost efficient 

means for filing Forms 102, including 

the possibility of electronic filing, the 

Commission has adopted a final rule 

that facilitates the adoption of 

alternative means for authenticating 

Forms 102. 

In part 18, which governs reports by 

traders, the Commission will no longer 

use Form 103 when seeking data via 

special call. The form of the data will 

now be per instruction contained in the 

call. In part 21, which governs special 

calls, the requirement for machinereadable information adhering to a 

specific record layout as contained in 

the rules has been eliminated. The 

requirement for the information to be 

prepared in accordance with 

instructions in the call remains. 

2. Respondents and Estimated Reporting 

Burden 

Twelve exchanges provide the data 

required under Rule 16.00 once on each 

of an estimated 220 business days per 

year. All twelve exchanges provide a set 

of information which includes daily 

options and futures market data 

showing open contracts, volume of 

trading, deliveries and exchanges of 

futures for physicals (EFPs) by clearing 

member firms associated with the 

exchange’s derivatives clearing 

organization. The final rules require the 

reporting of all exchanges of futures. 

The burden associated with this 

reporting obligation is minimal. The 

final rules only require that exchanges 

aggregate all exchanges of futures and 

report them as a single sum without 

further itemization. The total burden in 

hours for the reporting of trading data 

by the exchanges is estimated at 879 

hours. 

The twelve exchanges also provide 

the market information required by Rule 

16.01 for each of approximately 220 

trading days per year. We have 

estimated that it takes the exchanges 

about 30 minutes per day to generate 

and transmit each data file. This results 

in an annual burden of approximately 

1,760 hours. The total estimated annual 

burden for this collection of information 

has increased by 440 hours. The 

increase, however, is mainly attributable 

to an increase in the number of 

exchanges with market data reporting 

obligations. 

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76397

Approximately 750 clearing members, 

FCMs, and foreign brokers are subject to 

routine reporting requirements. The 

final rules do not increase the aggregate 

burden hours required for such persons 

to comply with the routine reporting 

requirements. Under Rule 17.00, routine 

reports are filed only for accounts with 

futures and option positions that meet 

or exceed levels set by the Commission 

in Rule 15.03(b). It is estimated that this 

represents about 10 percent of all 

accounts carried by potential 

respondents and that less than one-half 

(approximately 264) of all respondents 

may be required to file reports at any 

one time. Of the 264 firms, two service 

bureaus file reports for approximately 

40 firms. Therefore, the Commission 

receives reports electronically from 226 

sources. Less than 15 minutes per day 

are expended by each source in 

generating files and transmitting them to 

the Commission. Over a 220-day period, 

the routine reporting burden on these 

firms is 12,430 hours. 

Each account reported to the 

Commission must also be identified on 

Form 102. Form 102 provides 

information that allows the Commission 

to combine different accounts held or 

controlled by the same trader and to 

identify commercial firms using the 

markets for hedging. The total number 

of Forms 102 filed with the Commission 

is estimated at 4,000 per year for a 

burden of 800 hours. The final rules 

require the reporting of all exchanges of 

futures. The burden associated with this 

reporting obligation is minimal. The 

final rules only require that reporting 

firms aggregate all exchanges of futures 

and report them as a single sum without 

further itemization. 

Traders file Forms 40 under Rule 

18.04, and Forms 103 on call by the 

Commission under Rule 18.00. The 

number of traders filing Forms 40 is 

estimated at 2,400 per year, and the total 

annual burden for filing such 

information is estimated to be 800 

hours. The Commission has maintained 

the authority to make special calls on 

traders under part 18 of the regulations 

when the information obtained 

routinely under part 17 of the 

regulations is incomplete for its 

purposes. In order to streamline this 

collection of information, the final rules 

eliminate Forms 103 altogether for the 

submission of special call data by large 

traders. The form of the data collected 

will be per instruction contained in the 

special call. The final rules also require 

the reporting of all exchanges of futures. 

The burden associated with this 

reporting obligation for traders is 

minimal. The final rules only require 

that traders aggregate all exchanges of 

futures and report them as a single sum 

without further itemization.

3. Request for Comment 

The Commission invites comment on 

the accuracy of the burden estimates 

and suggestions on how to further 

reduce these burdens. Comments should 

be directed to Gary Martinaitis, 

Associate Deputy Director for Market 

Information, Market Surveillance 

Section, Division of Market Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581 (telephone 202–418–5209, e-mail 

gmartinaitis@cftc.gov).

List of Subjects 

17 CFR Part 15

Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements. 

17 CFR Part 16

Commodity futures, Reporting and 

recordkeeping requirements. 

17 CFR Part 17

Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements. 

17 CFR Part 18

Commodity futures, Reporting and 

recordkeeping requirements. 

17 CFR Part 19

Commodity futures, Cotton, Grains, 

Reporting and recordkeeping 

requirements. 

17 CFR Part 21

Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements.

■ In consideration of the foregoing, and 

pursuant to the authority contained in 

the Act, and, in particular, sections 4g, 

4i, 5 and 8a of the Act, the Commission 

hereby amends chapter I of title 17 of the 

Code of Federal Regulations as follows:

PART 15—REPORTS—GENERAL 

PROVISIONS

■ 1. The authority citation for part 15 

continues to read as follows:

Authority: 7 U.S.C. 2, 5, 6, 6a, 6c, 6f, 6g, 

6i, 6k, 6m, 6n, 7, 7a, 9, 12a, 19 and 21, as 

amended by the Commodity Futures 

Modernization Act of 2000, Appendix E of 

Pub. L. 106–554, 114 Stat. 2763 (2000); 5 

U.S.C. 552 and 552(b).

■ 2. In § 15.00, revise paragraph (b)(1)(ii) 

to read as follows:

§ 15.00 Definitions of terms used in parts 

15 to 21 of this chapter.

* * * * *

(b) * * *

(1) * * *

(i) * * *

(ii) Long or short put or call options 

that exercise into the same future of any 

commodity, or long or short put or call 

options for options on physicals that 

have identical expirations and exercise 

into the same physical, on any one 

contract market.

* * * * *

■ 3. Revise § 15.02 to read as follows:

§ 15.02 Reporting forms. 

Forms on which to report may be 

obtained from any office of the 

Commission or via the Internet (http://

www.cftc.gov). Forms to be used for the 

filing of reports follow, and persons 

required to file these forms may be 

determined by referring to the rule 

listed in the column opposite the form 

number.

Form

No. Title Rule 

40 ......... Statement of Reporting 

Trader.

18.04

’01 ........ Positions of Special Accounts.17.00

102 ....... Identification of Special 

Accounts.

17.01

204 ....... Cash Positions of Grain 

Traders (including Oilseeds and Products).

19.00

304 ....... Cash Positions of Cotton 

Traders.

19.00

(Approved by the Office of Management and 

Budget under control numbers 3038–0007 

and 3038–0009)

■ 4. Revise § 15.03 to read as follows:

§ 15.03 Reporting levels. 

(a) Definitions. For purposes of this 

section: 

Broad-based security index is a group 

or index of securities that does not 

constitute a narrow-based security 

index. 

HedgeStreet products are contracts 

offered by HedgeStreet, Inc., a 

designated contract market, that pay up 

to $10.00 if in the money upon 

expiration. 

Major foreign currency is the 

currency, and the cross-rates between 

the currencies, of Japan, the United 

Kingdom, Canada, Australia, 

Switzerland, Sweden and the European 

Monetary Union. 

Narrow-based security index has the 

same meaning as in section 1a(25) of the 

Commodity Exchange Act. 

Security futures product has the same 

meaning as in section 1a(32) of the 

Commodity Exchange Act. 

(b) The quantities for the purpose of 

reports filed under parts 17 and 18 of 

this chapter are as follows:

76398 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

Commodity Number of

contracts 

Agricultural: 

Wheat ........................................................................................................................................................................................... 150

Corn .............................................................................................................................................................................................. 250

Oats .............................................................................................................................................................................................. 60

Soybeans ...................................................................................................................................................................................... 150

Soybean Oil .................................................................................................................................................................................. 200

Soybean Meal ............................................................................................................................................................................... 200

Cotton ........................................................................................................................................................................................... 100

Frozen Concentrated Orange Juice ............................................................................................................................................. 50

Milk, Class III ................................................................................................................................................................................ 50

Rough Rice ................................................................................................................................................................................... 50

Live Cattle ..................................................................................................................................................................................... 100

Feeder Cattle ................................................................................................................................................................................ 50

Lean Hogs .................................................................................................................................................................................... 100

Sugar No. 11 ................................................................................................................................................................................ 500

Sugar No. 14 ................................................................................................................................................................................ 100

Cocoa ........................................................................................................................................................................................... 100

Coffee ........................................................................................................................................................................................... 50

Natural Resources: 

Copper .......................................................................................................................................................................................... 100

Gold .............................................................................................................................................................................................. 200

Silver Bullion ................................................................................................................................................................................. 150

Platinum ........................................................................................................................................................................................ 50

No. 2 Heating Oil .......................................................................................................................................................................... 250

Crude Oil, Sweet .......................................................................................................................................................................... 350

Unleaded Gasoline ....................................................................................................................................................................... 150

Natural Gas .................................................................................................................................................................................. 200

Crude Oil, Sweet—No. 2 Heating Oil Crack Spread ................................................................................................................... 250

Crude Oil, Sweet—Unleaded Gasoline Crack Spread ................................................................................................................ 150

Unleaded Gasoline—No. 2 Heating Oil Spread Swap ................................................................................................................ 150

Financial: 

3-month (13-Week) U.S. Treasury Bills ....................................................................................................................................... 150

30-Year U.S. Treasury Bonds ...................................................................................................................................................... 1,500

10-Year U.S. Treasury Notes ....................................................................................................................................................... 2,000

5-Year U.S. Treasury Notes ......................................................................................................................................................... 2,000

2-Year U.S. Treasury Notes ......................................................................................................................................................... 1,000

10-Year German Federal Government Debt ................................................................................................................................ 1,000

5-Year German Federal Government Debt .................................................................................................................................. 800

2-Year German Federal Government Debt .................................................................................................................................. 500

3-Month Eurodollar Time Deposit Rates ...................................................................................................................................... 3,000

30-Day Fed Funds ........................................................................................................................................................................ 600

1-month LIBOR Rates .................................................................................................................................................................. 600

3-month Euroyen .......................................................................................................................................................................... 100

Major-Foreign Currencies ............................................................................................................................................................. 400

Other Foreign Currencies ............................................................................................................................................................. 100

U.S. Dollar Index .......................................................................................................................................................................... 50

Goldman Sachs Commodity Index ............................................................................................................................................... 100

Broad-Based Security Indexes: 

S&P 500 Stock Price Index .......................................................................................................................................................... 1,000

Municipal Bond Index ................................................................................................................................................................... 300

Other Broad-Based Securities Indexes ........................................................................................................................................ 200

Security Futures Products: 

Individual Equity Security ............................................................................................................................................................. 1,000

Narrow-Based Security Index ....................................................................................................................................................... 200

TRAKRS .............................................................................................................................................................................................. 1 50,000

HedgeStreet Products ......................................................................................................................................................................... 1 125,000

All Other Commodities ......................................................................................................................................................................... 25

1For purposes of part 17, positions in TRAKRS and HedgeStreet products should both be reported by rounding down to the nearest 1,000 

contracts and dividing by 1,000. 

PART 16—REPORTS BY CONTRACT 

MARKETS

■ 5. The authority citation for part 16 

continues to read as follows:

Authority: 7 U.S.C. 6a, 6c, 6g, 6i, 7 and 

12a, unless otherwise noted.

■ 6. In § 16.00, revise paragraphs (a)(4) 

and (b) to read as follows:

§ 16.00 Clearing member reports. 

(a) * * *

(4) The quantity of purchases of 

futures for commodities or for 

derivatives positions and the quantity of 

sales of futures for commodities or for 

derivatives positions which are 

included in the total quantity of 

contracts bought and sold during the 

day covered by the report, and the 

names of the clearing members who 

made the purchases or sales;

* * * * *

(b) Form, manner and time of filing 

reports. Unless otherwise approved by 

the Commission or its designee, contract 

markets shall submit the information 

required by paragraph (a) of this section 

as follows: 

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76399

(1) Using the format, coding structure, 

and electronic data transmission 

procedures approved in writing by the 

Commission or its designee; provided 

however, the information shall be made 

available to the Commission or its 

designee in hard copy upon request; and 

(2) When such data is first available 

but not later than 12:00 p.m. on the 

business day following the day to which 

the information pertains. Unless 

otherwise specified by the Commission 

or its designee, the stated time is eastern 

time for information concerning markets 

located in that time zone, and central 

time for information concerning all 

other markets.

* * * * *

■ 7. In § 16.01:

■ a. Revise paragraph (a)(2) and the 

concluding text of paragraph (a), which 

follows paragraph (a)(5);

■ b. Remove the phrase ‘‘, in printed 

form at the office of the contract market,’’

from paragraph (b)(3); and

■ c. Revise paragraph (d).

The revisions read as follows:

§ 16.01 Trading volume, open contracts, 

prices, and critical dates. 

(a) * * *

(2) The total quantity of futures 

exchanged for commodities or for 

derivatives positions which are 

included in the total volume of trading; 

(5) * * *

Note to paragraph (a): This information 

shall be made readily available to the news 

media and the general public without charge 

no later than the business day following the 

day for which publication is made.

* * * * *

(d) Form, manner and time of filing 

reports. Unless otherwise approved by 

the Commission or its designee, contract 

markets shall submit to the Commission 

the information specified in paragraphs 

(a), (b) and (c) of this section as follows: 

(1) Using the format, coding structure 

and electronic data transmission 

procedures approved in writing by the 

Commission or its designee; provided 

however, the information shall be made 

available to the Commission or its 

designee in hard copy upon request; and 

(2) When each such form of the data 

is first available but not later than 7:00 

a.m. on the business day following the 

day to which the information pertains 

for the delta factor and settlement price 

and not later than 12:00 p.m. for the 

remainder of the information. Unless 

otherwise specified by the Commission 

or its designee, the stated time is eastern 

time for information concerning markets 

located in that time zone, and central 

time for information concerning all 

other markets.

* * * * *

■ 8. Revise § 16.06 to read as follows:

§ 16.06 Errors or omissions. 

Unless otherwise approved by the 

Commission or its designee, contract 

markets shall file corrections to errors or 

omissions in data previously filed with 

the Commission pursuant to §§ 16.00 

and 16.01 in the format and using the 

coding structure and electronic data 

submission procedures approved in 

writing by the Commission or its 

designee.

■ 9. In § 16.07, revise paragraphs (a) and 

(b) to read as follows:

§ 16.07 Delegation of authority to the 

Director of the Division of Market Oversight 

and the Executive Director.

* * * * *

(a) Pursuant to §§ 16.00(b) and 

16.01(d), the authority to determine 

whether contract markets must submit 

data in hard copy, and the time that 

such data may be submitted where the 

Director determines that a contract 

market is unable to meet the 

requirements set forth in the 

regulations; 

(b) Pursuant to §§ 16.00(b)(1), 

16.00(d)(1), and 16.06, the authority to 

approve the format, coding structure 

and electronic data transmission 

procedures used by contract markets.

PART 17—REPORTS BY FUTURES 

COMMISSION MERCHANTS, 

MEMBERS OF CONTRACT MARKETS 

AND FOREIGN BROKERS

■ 10. The authority citation for part 17 

continues to read as follows:

Authority: 7 U.S.C. 6a, 6c, 6d, 6f, 6g, 6i, 

7 and 12a, unless otherwise noted.

■ 11. In § 17.00, revise paragraph (a) 

heading, add paragraph (a)(1), and revise 

paragraphs (g)(2)(i), (g)(2)(v), (g)(2)(vi), 

(g)(2)(xi), and (h) to read as follows:

§ 17.00 Information to be furnished by 

futures commission merchants, clearing 

members and foreign brokers. 

(a) Special Accounts—Reportable 

futures and options positions, delivery 

notices, and exchanges of futures. (1) 

Each futures commission merchant, 

clearing member and foreign broker 

shall submit a report to the Commission 

for each business day with respect to all 

special accounts carried by the futures 

commission merchant, clearing member 

or foreign broker, except for accounts 

carried on the books of another futures 

commission merchant on a fullydisclosed basis. Except as otherwise 

authorized by the Commission or its 

designee, such report shall be made in 

accordance with the format, coding and 

data transmission procedures set forth 

in paragraph (g) of this section. The 

report shall show each futures position, 

separately for each contract market and 

for each future, and each put and call 

options position separately for each 

contract market, expiration and strike 

price in each special account as of the 

close of market on the day covered by 

the report and, in addition, the quantity 

of exchanges of futures for commodities 

or for derivatives positions and the 

number of delivery notices issued for 

each such account by the clearing 

organization of a contract market and 

the number stopped by the account. The 

report shall also show all positions in 

all futures months and option 

expirations of that same commodity on 

the same contract market for which the 

special account is reportable.

* * * * *

(a) * * *

(2) * * *

(i) Report type. This report format will 

be used to report three types of data: 

long and short futures and options 

positions, futures delivery notices 

issued and stopped, and exchanges of 

futures for a commodity or for a 

derivatives position bought and sold. 

Valid values for the report type are ‘‘RP’’

for reporting positions, ‘‘DN’’ for 

reporting notices, and ‘‘EP’’ for 

reporting exchanges of futures for a 

commodity or for a derivatives position.

* * * * *

(v) Exchange. This is a two-character 

field approved by the Commission to 

identify the exchange on which a 

position is held. 

(vi) Put or Call. Valid values for this 

field are ‘‘C’’ for a call option and ‘‘P’’

for a put option. For futures, the field 

is blank.

* * * * *

(xi) Long-Buy-Stopped (Short-SellIssued). When report type is ‘‘RP’’, 

report long (short) positions open at the 

end of a trading day. When report is 

‘‘DN’’, report delivery notices stopped 

(issued) on behalf of the account. When 

report type is ‘‘EP’’, report purchases 

(sales) of futures for a commodity or for 

a derivatives position for the account. 

Report all information in contracts. 

Position data are reported on a net or 

gross basis in accordance with 

paragraphs (d) and (e) of this section.

* * * * *

(h) Correction of errors and omissions.

Unless otherwise approved by the 

Commission or its designee, corrections 

to errors and omissions in data provided 

pursuant to § 17.00(a) shall be filed on 

series ‘01 forms or in the format, coding 

structure and data transmission 

76400 Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 

procedures approved in writing by the 

Commission or its designee.

* * * * *

■ 12. In § 17.01, revise the introductory 

text and paragraphs (e), (f) and (g) to read 

as follows:

§ 17.01 Special account designation and 

identification. 

When a special account is reported for 

the first time, the futures commission 

merchant, clearing member, or foreign 

broker shall identify the account to the 

Commission on form 102, in the form 

and manner specified in § 17.02, 

showing the information in paragraphs 

(a) through (f) of this section.

* * * * *

(e) Account executive. The name and 

business telephone number of the 

associated person of the futures 

commission merchant who has solicited 

and is responsible for the account or, in 

the case of an introduced account, the 

name and business telephone number of 

the introducing broker who introduced 

the account. 

(f) Reporting firms. The name and 

address of the futures commission 

merchant, clearing member, or foreign 

broker carrying the account, the name, 

title and business phone of the 

authorized representative of the firm 

filing the form 102 and the date of the 

form 102. The authorized representative 

shall sign the report or satisfy such 

other requirements for authenticating 

the report as instructed in writing by the 

Commission or its designee.

(g) Form 102 updates. If, at the time 

an account is in special account status 

and a form 102 filed by a futures 

commission merchant, clearing member, 

or foreign broker is then no longer 

accurate because there has been a 

change in the information required 

under paragraph (b) of this section since 

the previous filing, the futures 

commission merchant, clearing member, 

or foreign broker shall file an updated 

form 102 with the Commission within 

three business days after such change 

occurs.

■ 13. Revise § 17.02 to read as follows:

§ 17.02 Form, manner and time of filing 

reports. 

Unless otherwise instructed by the 

Commission or its designee, the reports 

required to be filed by futures 

commission merchants, clearing 

members and foreign brokers under 

§§ 17.00 and 17.01 shall be filed as 

specified in paragraphs (a) and (b) of 

this section. 

(a) Section 17.00(a) reports. Reports 

filed under § 17.00(a) shall be submitted 

through electronic data transmission 

procedures approved in writing by the 

Commission or its designee not later 

than 9 a.m. on the business day 

following that to which the information 

pertains. Unless otherwise specified by 

the Commission or its designee, the 

stated time is eastern time for 

information concerning markets located 

in that time zone, and central time for 

information concerning all other 

markets. 

(b) Section 17.01 reports. For data 

submitted pursuant to § 17.01 on form 

102: 

(1) On call by the Commission or its 

designee, identify the type of special 

account specified by items 1(a), 1(b), or 

1(c) of form 102, and the name and 

location of the person to be identified in 

item 1(d) on the form 102, and submit 

such information by facsimile or 

telephone, in accordance with 

instructions by the Commission or its 

designee, on the same day that the 

special account in question is first 

reported to the Commission; and 

(2) Submit a completed form 102 

within three business days of the first 

day that the special account in question 

is reported to the Commission in 

accordance with instructions by the 

Commission or its designee.

■ 14. In § 17.03, revise paragraphs (a) 

and (b), redesignate paragraph (c) as 

paragraph (d) and add a new paragraph 

(c) to read as follows:

§ 17.03 Delegation of authority to the 

Director of the Division of Market Oversight 

and to the Executive Director.

* * * * *

(a) Pursuant to § 17.00(a) and (h), the 

authority to determine whether futures 

commission merchants, clearing 

members and foreign brokers can report 

the information required under Rule 

17.00(a) and Rule 17.00(h) on series ‘01 

forms or using some other format upon 

a determination that such person is 

unable to report the information using 

the format, coding structure or 

electronic data transmission procedures 

otherwise required. 

(b) Pursuant to § 17.02, the authority 

to instruct and/or approve the time at 

which the information required under 

Rules 17.00 and 17.01 must be 

submitted by futures commission 

merchants, clearing members and 

foreign brokers provided that such 

persons are unable to meet the 

requirements set forth in §§ 17.01(g) and 

17.02. 

(c) Pursuant to § 17.01(f), the 

authority to determine whether to 

permit an authorized representative of a 

firm filing the form 102 to use a means 

of authenticating the report other than 

by signing the form 102 and, if so, to 

determine the alternative means of 

authentication that shall be used.

* * * * *

■ 15. In § 17.04, revise the second 

sentence of paragraph (b) and paragraphs 

(b)(1)(i) and (b)(2) to read as follows:

§ 17.04 Reporting omnibus accounts to 

the carrying futures commission merchant 

or foreign broker.

* * * * *

(b) * * * The futures commission 

merchant, clearing member or foreign 

broker shall, if both open long and short 

positions in the same future or option 

are carried for the same trader, compute 

open long or open short positions as 

instructed in this paragraph. 

(1) * * *

(i) The positions represent 

transactions on a contract market which 

requires long and short positions in the 

same future or option held in accounts 

for the same trader to be recorded and 

reported on a gross basis; or

* * * * *

(2) Include only the net long or net 

short positions of the trader if the 

positions represent transactions on a 

contract market which does not require 

long and short positions in the same 

future or option held in accounts for the 

same trader to be recorded and reported 

on a gross basis.

* * * * *

PART 18—REPORTS BY TRADERS

■ 16. The authority citation for part 18 

continues to read as follows:

Authority: 7 U.S.C. 2, 4, 6a, 6c, 6f, 6g, 6i, 

6k, 6m, 6n, 12a and 19; 5 U.S.C. 552 and 

552(b), unless otherwise noted.

■ 17. Revise § 18.00 to read as follows:

§ 18.00 Information to be furnished by 

traders. 

Every trader who owns, holds or 

controls, or has held, owned or 

controlled, a reportable futures or 

options position in a commodity shall 

within one business day after a special 

call upon such trader by the 

Commission or its designee file reports 

to the Commission concerning 

transactions and positions in such 

futures or options. Reports shall be filed 

for the period of time that the trader 

held or controlled a reportable position 

and shall be prepared and submitted as 

instructed in the call. The report shall 

show for each day covered by the report 

the following information, as specified 

in the call, separately for each future or 

option and for each contract market: 

(a) Open contracts; 

(b) Purchases and sales; 

(c) Delivery notices issued and 

stopped; 

Federal Register / Vol. 69, No. 244 / Tuesday, December 21, 2004 / Rules and Regulations 76401

(d) Purchases and sales of futures for 

commodities or for derivatives 

positions; and 

(e) Options exercised.

(Approved by the Office of Management and 

Budget under control number 3038–0009)

§ 18.02 [Removed and Reserved.]

■ 18. Remove and reserve § 18.02.

§ 18.06 [Removed and Reserved.]

■ 19. Remove and reserve § 18.06.

PART 19—REPORTS BY PERSONS 

HOLDING BONA FIDE HEDGE 

POSITIONS PURSUANT TO § 1.3(Z) OF 

THIS CHAPTER AND BY MERCHANTS 

AND DEALERS IN COTTON

■ 20. The authority citation for part 19 

continues to read as follows:

Authority: 7 U.S.C. 6g(a), 6i and 12a(5), 

unless otherwise noted.

■ 21. In § 19.00, revise paragraph (a)(1) 

and the first sentence of (a)(3) to read as 

follows:

§ 19.00 General provisions. 

(a) * * *

(1) All persons holding or controlling 

futures and option positions that are 

reportable pursuant to § 15.00(b)(2) of 

this chapter and any part of which 

constitute bona fide hedging positions 

as defined in § 1.3(z) of this chapter;

* * * * *

(3) All persons holding or controlling 

positions for future delivery that are 

reportable pursuant to § 15.00(b)(1) of 

this chapter who have received a special 

call for series ’04 reports from the 

Commission or its designee. * * *

* * * * *

PART 21—SPECIAL CALLS

■ 22. The authority citation for part 21 

continues to read as follows:

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

6g, 6i, 6k, 6m, 6n, 7, 7a, 12a, 19 and 21; 5 

U.S.C. 552 and 552(b), unless otherwise 

noted.

§ 21.02a [Removed]

■ 23. Remove § 21.02a.

Issued in Washington, DC on December 14, 

2004 by the Commission. 

Jean A. Webb, 

Secretary of the Commission.

[FR Doc. 04–27750 Filed 12–20–04; 8:45 am] 

BILLING CODE 6351–01–P

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 179

[Docket No. 1993F–0357]

Irradiation in the Production, 

Processing, and Handling of Food

AGENCY: Food and Drug Administration, 

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug 

Administration (FDA) is amending the 

food additive regulations to provide for 

the safe use of a source of fast (high 

energy) neutrons to inspect containers 

that may contain food. This action is in 

response to a petition filed by Science 

Applications International Corp. (SAIC).

DATES: This rule is effective December 

21, 2004. Submit written or electronic 

objections and requests for a hearing by 

January 20, 2005. See section VII of this 

document for information on the filing 

of objections.

ADDRESSES: You may submit written 

objections and requests for a hearing, 

identified by Docket No. 1993F–0357, 

by any of the following methods:

• Federal eRulemaking Portal: http://

www.regulations.gov. Follow the 

instructions for submitting comments.

• Agency Web site: http://

www.fda.gov/dockets/ecomments. 

Follow the instructions for submitting 

comments on the agency Web site.

• E-mail: fdadockets@oc.fda.gov. 

Include Docket No. 1993F–0357 in the 

subject line of your e-mail message.

• FAX: 301–827–6870.

• Mail/Hand delivery/Courier [For 

paper, disk, or CD-ROM submissions]: 

Division of Dockets Management (HFA–

305), Food and Drug Administration, 

5630 Fishers Lane, rm. 1061, Rockville, 

MD 20852.

Instructions: All submissions received 

must include the agency name and 

docket number for this rulemaking. All 

objections received will be posted 

without change to http://www.fda.gov/

ohrms/dockets/default.htm, including 

any personal information provided. For 

detailed instructions on submitting 

objections, see the ‘‘Objections’’ heading 

of the SUPPLEMENTARY INFORMATION

section of this document.

Docket: For access to the docket to 

read background documents or 

comments received, go to http://

www.fda.gov/ohrms/dockets/

default.htm and insert the docket 

number, found in brackets in the 

heading of this document, into the 

‘‘Search’’ box and follow the prompts 

and/or go to the Division of Dockets 

Management, 5630 Fishers Lane, rm. 

1061, Rockville, MD 20852.

FOR FURTHER INFORMATION CONTACT:

Celeste Johnston, Center for Food Safety 

and Applied Nutrition (HFS–265), Food 

and Drug Administration, 5100 Paint 

Branch Pkwy., College Park, MD 20740–

3835, 301–436–1282.

SUPPLEMENTARY INFORMATION:

I. Introduction

In a notice published in the Federal 

Register of November 18, 1993 (58 FR 

60860), FDA announced that a food 

additive petition (FAP 3M4399) had 

been filed by Science Applications 

International Corp., 2950 Patrick Henry 

Dr., Santa Clara, CA 95054. The petition 

proposed that the food additive 

regulations in § 179.21 Sources of 

radiation used for inspection of food, for 

inspection of packaged food, and for 

controlling food processing (21 CFR 

179.21) be amended to provide for the 

safe use of a source of fast (high energy) 

neutrons to inspect cargo containers that 

may contain food. In a letter dated 

January 9, 1998, FDA was informed by 

Ancore Corp. that they were previously 

the division of SAIC responsible for this 

petition but had been reorganized into 

a separate company. The letter 

explained that as part of this 

reorganization, the rights to FAP 

3M4399 had been transferred from SAIC 

to Ancore Corp. (same address as SAIC).

When the petition was filed on 

November 18, 1993, it contained an 

environmental assessment (EA). In the 

notice of filing for this petition, the 

agency announced that it was placing 

the EA submitted with this petition on 

display at the Division of Dockets 

Management for public review and 

comment. No comments on the EA were 

received. Based on the original EA, FDA 

prepared a finding of no significant 

impact to the environment dated May 

31, 1994. On July 29, 1997, FDA 

published revised regulations under 

part 25 (21 CFR part 25), which became 

effective on August 28, 1997. On May 

12, 2003, the petitioner submitted a 

claim of categorical exclusion under the 

new § 25.32(j), in accordance with the 

procedures in § 25.15(a) and (d). 

Because the environmental record for 

the FAP was outdated, the agency 

reviewed the claim of categorical 

exclusion under § 25.32(j) for this final 

rule and found it to be warranted.

II. Evaluation of Safety

A source of radiation used for the 

purpose of inspection of foods meets the 

definition of a food additive under