Federal Register / Vol. 66, No. 212 / Thursday, November 1, 2001 / Rules and Regulations 55075

access panels or doors. Stands, ladders, or

platforms may be required to gain proximity

to the area being checked.’’

Repetitive Torque Check

(b) Concurrent with the accomplishment of

the requirements of paragraph (a) of this AD:

Perform a torque check of the attachment

screws of the power feeder terminals in

accordance with the procedures specified in

Boeing Maintenance Tip 737 MT 24–003,

dated May 14, 1998. Repeat the torque check

thereafter at intervals not to exceed 1,000

flight hours, in accordance with the

maintenance tip, until paragraph (d) of this

AD is accomplished.

New Requirements of This AD

Repetitive Replacement

(c) Within 1,000 flight hours after

accomplishment of the eighth torque check

required by paragraph (b) of this AD: Replace

the PDP rigid bus assemblies with new

assemblies having the same part numbers as

the removed assemblies, in accordance with

the procedures specified in Boeing 737–600,

–700, –800, –900 AMM, Chapter 24–21–22.

Repeat the replacement thereafter within

1,000 flight hours after every eighth torque

check required by paragraph (b) of this AD,

in accordance with the procedures specified

in the AMM, until paragraph (d) of this AD

is accomplished.

Optional Terminating Action

(d) Replacement of existing PDP rigid bus

assemblies with new, improved PDP rigid

bus assemblies having part number 1032181–

2 or 1032185–2, as applicable, according to

Boeing Service Bulletin 737–24–1128, dated

April 29, 1999, constitutes terminating action

for the requirements of this AD.

Alternative Methods of Compliance

(e)(1) An alternative method of compliance

or adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Seattle

Aircraft Certification Office (ACO), FAA.

Operators shall submit their requests through

an appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Seattle ACO.

(2) Alternative methods of compliance,

approved previously in accordance with AD

99–08–03, amendment 39–11107, are

approved as alternative methods of

compliance for the corresponding

requirements of this AD.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

Special Flight Permits

(f) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Incorporation by Reference

(g) The actions required by paragraph (b)

of this AD shall be done in accordance with

Boeing Maintenance Tip 737 MT 24–003,

dated May 14, 1998. The optional

terminating action, if accomplished, shall be

done in accordance with Boeing Service

Bulletin 737–24–1128, dated April 29, 1999.

This incorporation by reference was

approved by the Director of the Federal

Register in accordance with 5 U.S.C. 552(a)

and 1 CFR part 51. Copies may be obtained

from Boeing Commercial Airplane Group,

P.O. Box 3707, Seattle, Washington 98124–

2207. Copies may be inspected at the FAA,

Transport Airplane Directorate, 1601 Lind

Avenue, SW., Renton, Washington; or at the

Office of the Federal Register, 800 North

Capitol Street, NW., suite 700, Washington,

DC.

Effective Date

(h) This amendment becomes effective on

December 6, 2001.

Issued in Renton, Washington, on October

23, 2001.

Ali Bahrami,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–27187 Filed 10–31–01; 8:45 am]

BILLING CODE 4910–13–U

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. 2000–NM–395–AD; Amendment

39–12492; AD 2001–22–13]

RIN 2120–AA64

Airworthiness Directives; Boeing

Model 737–100, –200, –300, –400, and

–500 Series Airplanes; and Model 747,

757, 767, and 777 Series Airplanes

AGENCY: Federal Aviation

Administration, DOT.

ACTION: Final rule.

SUMMARY: This amendment adopts a

new airworthiness directive (AD),

applicable to certain Boeing Model 737–

100, –200, –300, –400, and –500 series

airplanes; and certain Boeing Model

747, 757, 767, and 777 series airplanes;

that requires replacing the rudder pedal

pushrod fasteners for both the captain’s

and first officer’s pedal assemblies with

new, improved fasteners. This action is

necessary to prevent loss of rudder

control due to improperly torqued

fasteners that connect the pushrod to

the rudder pedal assembly, which could

result in loss of controllability of the

airplane. This action is intended to

address the identified unsafe condition.

DATES: Effective December 6, 2001.

The incorporation by reference of

certain publications listed in the

regulations is approved by the Director

of the Federal Register as of December

6, 2001.

ADDRESSES: The service information

referenced in this AD may be obtained

from Boeing Commercial Airplane

Group, P.O. Box 3707, Seattle,

Washington 98124–2207. This

information may be examined at the

Federal Aviation Administration (FAA),

Transport Airplane Directorate, Rules

Docket, 1601 Lind Avenue, SW.,

Renton, Washington; or at the Office of

the Federal Register, 800 North Capitol

Street, NW., suite 700, Washington, DC.

FOR FURTHER INFORMATION CONTACT:

Barbara Mudrovich, Aerospace

Engineer, Systems and Equipment

Branch, ANM–130S, FAA, Seattle

Aircraft Certification Office, 1601 Lind

Avenue, SW., Renton, Washington

98055–4056; telephone (425) 227–2983;

fax (425) 227–1181.

SUPPLEMENTARY INFORMATION: A

proposal to amend part 39 of the Federal

Aviation Regulations (14 CFR part 39) to

include an airworthiness directive (AD)

that is applicable to certain Model 737–

100, –200, –300, –400, and –500 series

airplanes; and Model 747, 757, 767, and

777 series airplanes; was published in

the Federal Register on April 20, 2001

(66 FR 20218). That action proposed to

require replacing the rudder pedal

pushrod fasteners for both the captain’s

and first officer’s pedal assemblies with

new, improved fasteners.

Comments

Interested persons have been afforded

an opportunity to participate in the

making of this amendment. Due

consideration has been given to the

comments received.

One commenter supports the

proposed rule; a second commenter

states that it has no technical objection

and intends to accomplish the proposed

actions; and a third commenter states no

objection to the proposed rule.

Refer to Additional Sources of Service

Information

Two commenters request that the

FAA revise Table 2 of the proposed AD

to refer to Boeing Service Bulletin 767–

27A0159, Revision 1, dated April 5,

2001, as an acceptable source of service

information for the actions in paragraph

(a) of the proposed AD. (The proposed

AD refers to the original issue of Boeing

Alert Service Bulletin 767–27A0159,

dated June 10, 1999, as an acceptable

source of service information for

accomplishment of the actions in

paragraph (a) of the proposed rule on

affected Model 767 series airplanes.)

One of the commenters also requests

that we add a new note similar to Note

2 to cover incorporation of Boeing

Service Bulletin 767–27A0159, Revision

55076 Federal Register / Vol. 66, No. 212 / Thursday, November 1, 2001 / Rules and Regulations

1, as acceptable for compliance with the

proposed AD.

We concur with the commenters’

request to reference Boeing Service

Bulletin 767–27A0159, Revision 1, in

Table 2 of this AD and have revised

Table 2 accordingly. Since we are

making this change, we find that there

is no need to add a new note similar to

Note 2 of this AD to the final rule as one

of the commenters suggested.

One commenter also asks us to revise

Table 1 under the applicability

statement of the proposed AD to refer to

Boeing Alert Service Bulletin 737–

27A1214, dated April 8, 1999, and

Boeing Service Bulletin 767–27A0159,

Revision 1. (Table 1 of the proposed AD

lists Boeing Service Bulletin 737–

27A1214, Revision 1, dated July 1, 1999,

as the applicable service bulletin listing

affected Model 737–100, –200, –300,

–400, and ‘‘500 series airplanes; and the

original issue of Boeing Alert Service

Bulletin 767–27A0159, as the applicable

service bulletin listing affected Model

767 series airplanes.) The same

commenter also asks that we revise

Table 2 of the proposed AD to refer to

Boeing Alert Service Bulletin 737–

27A1214, dated April 8, 1999. The

commenter’s rationale for these requests

is that these service bulletins provide

for the incorporation of the improved

fasteners and compliance with the

proposed action.

We do not concur that any change is

necessary. Comparison of the effectivity

listings of the original issue and

Revision 1 of Boeing Service Bulletins

737–27A1214 and 767–27A0159 show

that both issues of these service

bulletins list the same affected airplane

line numbers. Thus, we find that

revising Table 1 as the commenter

suggests would add no value and may

be confusing for operators. No change to

the final rule is necessary in this regard.

In addition, because Note 2 of this AD

already states that the original issue of

Boeing Alert Service Bulletin 737–

27A1214 is acceptable for compliance

with the applicable action in this AD,

we find no need to also list that service

bulletin in Table 2 of this AD. No

change to this final rule is necessary in

this regard.

Issue Action as a Supersedure of AD

98–13–12 R1

One commenter suggests that the

proposed AD should supersede AD 98–

13–12 R1, amendment 39–10930 (63 FR

68165, December 10, 1998). The

commenter states that the proposed

actions in this AD remove the unsafe

condition addressed by AD 98–13–12

R1. The commenter also notes that

operators cannot comply with both AD

98–13–12 R1 and the proposed AD

because this proposed AD requires

rudder pedal pushrod fasteners to be

torqued at a lower value than that

required by AD 98–13–12 R1. The

commenter is concerned that operators

will need to request alternative methods

of compliance for both of these ADs.

We do not concur with the request to

supersede AD 98–13–12 R1. That AD

requires a one-time inspection to detect

discrepancies of the fasteners that

connect the pushrods to the rudder

pedal assemblies, and corrective

actions, if necessary, on certain Boeing

Model 737, 747, 757, 767, and 777 series

airplanes. The actions in that AD are

intended to prevent loss of rudder

control, jamming of the rudder system,

uncommanded movement of the rudder

system, and consequent reduced

controllability of the airplane.

Corrective actions in that AD include

tightening nuts and bolts to specified

torque limits, installing missing

fasteners, and replacing incorrectly

installed fasteners with new fasteners,

as applicable. This new AD requires

replacement of existing rudder pedal

pushrod fasteners for both the captain’s

and first officer’s pedal assemblies with

new, improved fasteners that use selflocking, castellated nuts and cotter pins

through the bolts for nut retention. We

consider the actions in this AD to

provide an improved level of safety over

that provided by the actions in AD 98–

13–12 R1.

Since the compliance time for the

actions required by AD 98–13–12 R1 (90

days after July 6, 1998, which is the

effective date of AD 98–13–12,

amendment 39–10600 (63 FR 33246,

June 17, 1998)) has passed, most

airplanes should already be in

compliance with that AD. However, we

find that accomplishment of the

requirements of that AD is necessary in

the event that an affected airplane is

added to the U.S. Register. In that event,

we find that accomplishment of

paragraph (a) of this AD before the

airplane is added to the U.S. Register is

acceptable for compliance with AD 98–

13–12 R1. We have added a new

paragraph (b) to this AD (and reordered

subsequent paragraphs) accordingly.

With regard to the commenter’s

perceived need for operators to apply

for an alternative method of compliance,

we note that, once the new, improved

fasteners are installed according to this

AD, the torque requirements for the old

fasteners referenced in AD 98–13–12 R1

no longer apply. Further, the actions in

this AD are not considered ‘‘terminating

action’’ for AD 98–13–12 R1 because

that AD did not contain any repetitive

actions to terminate. No change to this

final rule is necessary in this regard.

Extend Compliance Time

One commenter requests that we

extend the compliance time for the

proposed requirements from 18 to 36

months after the effective date of this

AD. The commenter’s rationale is that

there have been very few reports of

disconnection of the rudder pedal

pushrod from the rudder pedal

assembly, and all affected airplanes

have previously been inspected per AD

98–13–12 R1.

We do not concur. In developing an

appropriate compliance time for this

AD, we considered the manufacturer’s

recommendation, as well as the degree

of urgency associated with addressing

the subject unsafe condition, the average

utilization of the affected fleet, and the

small amount of time necessary to

perform the inspection (one hour). We

have also considered that the service

bulletins have been available for some

time, and many operators have already

accomplished the required actions. In

light of all of these factors, the FAA

finds an 18-month compliance time for

completing the required actions to be

warranted, in that it represents an

appropriate interval of time wherein

airplanes will be able to continue to

operate without compromising safety,

and the majority of operators will be

able to do the required work during a

scheduled maintenance visit. No change

to the final rule is necessary in this

regard.

Revise Cost Impact Estimate

One commenter requests that the FAA

revise the proposed rule to increase the

cost estimate. The commenter states that

it has compiled its own cost estimate for

this inspection, based on actual direct

costs incurred, and estimates the costs

associated with the proposed AD as

$125.76 for labor and $226.00 for

materials per airplane, for a total of

$351.76 per airplane.

We do not concur with the request.

With regard to the number of work

hours necessary to accomplish the

actions in this AD, the cost impact

information describes only the ‘‘direct’’

costs of the specific actions required by

this AD. The number of work hours

necessary to accomplish the required

actions, specified as 1 work hour in the

cost impact information below, was

provided to the FAA by the

manufacturer based on the best data

available to date. This number

represents the time necessary to perform

only the actions actually required by

this AD. The FAA recognizes that, in

accomplishing the requirements of any

Federal Register / Vol. 66, No. 212 / Thursday, November 1, 2001 / Rules and Regulations 55077

AD, operators may incur ‘‘incidental’’

costs in addition to the ‘‘direct’’ costs.

The cost analysis in AD rulemaking

actions, however, typically does not

include incidental costs, such as the

time required to gain access and close

up, planning time, or time necessitated

by other administrative actions. Because

incidental costs may vary significantly

from operator to operator, they are

almost impossible to calculate.

With regard to the cost of materials,

the cost of parts necessary to

accomplish the required actions,

specified as approximately $75 in the

cost impact information below, was

provided to the FAA by the

manufacturer based on the best data

available to date. The commenter did

not specify what materials its cost

estimate included, so it is impossible for

the FAA to know the reason for the

difference between our cost estimate

and the commenter’s. No change to the

final rule is necessary in this regard.

Conclusion

After careful review of the available

data, including the comments noted

above, the FAA has determined that air

safety and the public interest require the

adoption of the rule with the changes

previously described. The FAA has

determined that these changes will

neither increase the economic burden

on any operator nor increase the scope

of the AD.

Cost Impact

There are approximately 6,097 Model

737–100, –200, –300, –400, and –500

series airplanes; and Model 747, 757,

767, and 777 series airplanes; of the

affected design in the worldwide fleet.

The FAA estimates that 2,338 airplanes

of U.S. registry will be affected by this

AD, that it will take approximately 1

work hour per airplane to accomplish

the required actions, and that the

average labor rate is $60 per work hour.

Required parts will cost approximately

$75 per airplane. Based on these figures,

the cost impact of this AD on U.S.

operators is estimated to be $315,630, or

$135 per airplane.

The cost impact figure discussed

above is based on assumptions that no

operator has yet accomplished any of

the requirements of this AD action, and

that no operator would accomplish

those actions in the future if this AD

were not adopted. The cost impact

figures discussed in AD rulemaking

actions represent only the time

necessary to perform the specific actions

actually required by the AD. These

figures typically do not include

incidental costs, such as the time

required to gain access and close up,

planning time, or time necessitated by

other administrative actions.

Regulatory Impact

The regulations adopted herein will

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. Therefore, it is

determined that this final rule does not

have federalism implications under

Executive Order 13132.

For the reasons discussed above, I

certify that this action (1) is not a

‘‘significant regulatory action’’ under

Executive Order 12866; (2) is not a

‘‘significant rule’’ under 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. A final evaluation has

been prepared for this action and it is

contained in the Rules Docket. A copy

of it may be obtained from the Rules

Docket at the location provided under

the caption ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Incorporation by reference,

Safety.

Adoption of the Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration amends part 39 of the

Federal Aviation Regulations (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. Section 39.13 is amended by

adding the following new airworthiness

directive:

2001–22–13 Boeing: Amendment 39–12492.

Docket 2000–NM–395–AD.

Applicability: Model 737–100, –200, –300,

–400, and –500 series airplanes; and Model

747, 757, 767, and 777 series airplanes; as

listed in the following applicable Boeing

service bulletin specified in the following

table; certificated in any category:

TABLE 1.—APPLICABLE SERVICE BULLETINS

Model Service bulletin Revision level Date

737–100, –200, –300, –400, and –500 ......... Boeing Service Bulletin 737–27A1214 .................................. 1 ....................... July 1, 1999.

747 ................................................................. Boeing Alert Service Bulletin 747–27A2373 ......................... Original ............. June 24, 1999.

757 ................................................................. Boeing Alert Service Bulletin 757–27A0129 ......................... Original ............. March 25, 1999.

767 ................................................................. Boeing Alert Service Bulletin 767–27A0159 ......................... Original ............. June 10, 1999.

777 ................................................................. Boeing Alert Service Bulletin 777–27A0030 ......................... Original ............. April 1, 1999.

Note 1: This AD applies to each airplane

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

airplanes that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (c) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Required as indicated, unless

accomplished previously.

To prevent loss of rudder control due to

improperly torqued fasteners that connect the

pushrod to the rudder pedal assembly, which

could result in loss of controllability of the

airplane, accomplish the following:

Replacement

(a) Within 18 months after the effective

date of this AD: Replace the rudder pedal

pushrod fasteners for both the captain’s and

first officer’s pedal assemblies with new,

improved fasteners that use self-locking,

castellated nuts and cotter pins through the

bolts for nut retention, per the applicable

Boeing service bulletin listed in the following

table:

55078 Federal Register / Vol. 66, No. 212 / Thursday, November 1, 2001 / Rules and Regulations

1 7 U.S.C. 1 et seq.

2Pub. L. No. 106–554, 114 Stat. 2763 (December

21, 2000).

3See Section 251(a) of the CFMA. This trading

previously was prohibited by Section 2(a)(1)(B)(v)

of the CEA.

4The term ‘‘security futures product’’ is defined

in Section 1a(32) of the CEA and Section 3(a)(56)

of the Exchange Act to mean ‘‘a security future or

any put, call, straddle, option, or privilege on any

security future.’’ The term ‘‘security future’’ is

defined in Section 1a(31) of the CEA and Section

3(a)(55)(A) of the Exchange Act to include futures

contracts on individual securities and on narrowbased security indexes. The term ‘‘narrow-based

security index’’ is defined in Section 1a(25) of the

CEA and Section 3(a)(55)(B) of the Exchange Act.

Because the CFMA also provides that options on

security futures cannot be traded until at least

December 21, 2003, security futures are the only

security futures product that may be available for

trading until that date.

5The CFMA also prescribes the dates on which

security futures trading can commence.

Specifically, trading on a principal-to-principal

basis between eligible contract participants was not

permitted until August 21, 2001, and retail

transactions cannot commence until December 21,

2001. Both starting dates are conditioned upon the

registration of a futures association as a national

securities association under the Exchange Act. See

TABLE 2.—APPLICABLE SERVICE BULLETINS

Model Service bulletin Revision level Date

737–100, –200, –300, –400, and –500 ......... Boeing Service Bulletin 737–27A1214 .................................. 1 ....................... July 1, 1999.

747 ................................................................. Boeing Alert Service Bulletin 747–27A2373 ......................... Original ............. June 24, 1999.

757 ................................................................. Boeing Alert Service Bulletin 757–27A0129 ......................... Original ............. March 25, 1999.

767 ................................................................. Boeing Alert Service Bulletin 767–27A0159 ......................... Original ............. June 10, 1999.

767 ................................................................. Boeing Service Bulletin 767–27A0159 .................................. 1 ....................... April 5, 2001.

777 ................................................................. Boeing Alert Service Bulletin 777–27A0030 ......................... Original ............. April 1,1999.

Note 2: Replacement actions that include

replacing the rudder pedal pushrod fasteners

for both the captain’s and first officer’s pedal

assemblies with new, improved fasteners,

which use self-locking, castellated nuts and

cotter pins through the bolts for nut

retention, accomplished before the effective

date of this amendment, per Boeing Alert

Service Bulletin 737–27A1214, dated April 8,

1999, are considered acceptable for

compliance with the applicable actions

specified in this amendment.

Compliance With AD 98–13–12 R1

(b) Accomplishment of the requirements of

paragraph (a) of this AD before the airplane

is added to the U.S. Register is acceptable for

compliance with AD 98–13–12 R1,

amendment 39–10930.

Alternative Methods of Compliance

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Seattle

Aircraft Certification Office (ACO), FAA.

Operators shall submit their requests through

an appropriate FAA Principal Maintenance

Inspector, who may add comments and then

send it to the Manager, Seattle ACO.

Note 3: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

Special Flight Permits

(d) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Incorporation by Reference

(e) The actions shall be done in accordance

with Boeing Service Bulletin 737–27A1214,

Revision 1, dated July 1, 1999; Boeing Alert

Service Bulletin 747–27A2373, dated June

24, 1999; Boeing Alert Service Bulletin 757–

27A0129, dated March 25, 1999; Boeing Alert

Service Bulletin 767–27A0159, dated June

10, 1999; Boeing Service Bulletin 767–

27A0159, Revision 1, dated April 5, 2001; or

Boeing Alert Service Bulletin 777–27A0030,

dated April 1, 1999; as applicable. This

incorporation by reference was approved by

the Director of the Federal Register in

accordance with 5 U.S.C. 552(a) and 1 CFR

part 51. Copies may be obtained from Boeing

Commercial Airplane Group, P.O. Box 3707,

Seattle, Washington 98124–2207. Copies may

be inspected at the FAA, Transport Airplane

Directorate, 1601 Lind Avenue, SW., Renton,

Washington; or at the Office of the Federal

Register, 800 North Capitol Street, NW., suite

700, Washington, DC.

Effective Date

(f) This amendment becomes effective on

December 6, 2001.

Issued in Renton, Washington, on October

24, 2001.

Ali Bahrami,

Acting Manager, Transport Airplane

Directorate, Aircraft Certification Service.

[FR Doc. 01–27215 Filed 10–31–01; 8:45 am]

BILLING CODE 4910–13–U

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 41

RIN 3038–AB87

Listing Standards and Conditions for

Trading Security Futures Products

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rules.

SUMMARY: The Commodity Futures

Trading Commission (‘‘CFTC’’ or

‘‘Commission’’) is promulgating rules

41.21 through 41.25 under the

Commodity Exchange Act (‘‘CEA’’).1

These rules relate to new statutory

provisions enacted by the Commodity

Futures Modernization Act of 2000

(‘‘CFMA’’) 2 that specify listing

standards and conditions for trading of

security futures products. These rules

also establish requirements related to

the self-certification of rules and rule

amendments, reporting of data,

speculative position limits, and special

provisions relating to contract design for

cash settlement and physical delivery of

security futures products.

EFFECTIVE DATE: November 1, 2001.

FOR FURTHER INFORMATION CONTACT:

Richard A. Shilts, Acting Director,

Division of Economic Analysis; Thomas

M. Leahy, Jr., Financial Instruments

Unit Chief, Division of Economic

Analysis; or Gabrielle A. Sudik,

Attorney, Office of the General Counsel,

Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21st Street, NW., Washington, DC

20581. Telephone: (202) 418–5000. Email: (RShilts@cftc.gov),

(TLeahy@cftc.gov), or

(GSudik@cftc.gov).

SUPPLEMENTARY INFORMATION: The

Commodity Futures Trading

Commission today promulgates new

rules 41.21 through 41.25 under 17 CFR

part 41, pursuant to the CEA as

amended by the Commodity Futures

Modernization Act of 2000 (7 U.S.C. 1

et seq., as amended by Appendix E of

Pub. L. No. 106–554, 114 Stat. 2763).

I. Background

A. Overview

On December 21, 2000, the CFMA

was signed into law. Among other

things, the CFMA lifted the ban on

single stock and narrow-based stock

index futures (‘‘security futures’’).3 In

addition, the CFMA established a

framework for the joint regulation of

security futures products4 by the CFTC

and the Securities and Exchange

Commission (‘‘SEC’’).5 Section