This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

39211 

Vol. 74, No. 150 

Thursday, August 6, 2009 

1Section 5a(11) of the Act, 7 U.S.C. 7a (1981). See 

also 17 CFR 180.2 (1981) (implementing section 

5a(11) through the establishment of minimum 

requirements). Subsequently, section 5a(11) and 

Part 180 were superseded by amended provisions. 

However, boards of trade are still required to 

‘‘establish and enforce rules regarding and provide 

facilities for alternative dispute resolution as 

appropriate for market participants and any market 

intermediaries.’’ Section 5(d)(13) of the Act, 7 

U.S.C. 7(d)(13) (2009). See also 17 CFR Part 38, 

Appendix B, Core Principle 13 (application 

guidance and acceptable practices related to section 

5(d)(13)). 

2 46 FR 57457 (November 24, 1981) (adopting 

Commission Regulation 7.201). See also 49 FR 

10659 (March 24, 1984) (subsequent amendment). 

3Copies of the petition are available on written 

request from David Stawick, Secretary, Commodity 

Futures Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., Washington, DC 

20581, by telephone request at (202) 418–5100, or 

by e-mail request to secretary@cftc.gov. Reference 

should be made to ‘‘CME Group petition to repeal 

Regulation 7.201.’’ 

DEPARTMENT OF AGRICULTURE 

Agricultural Marketing Service 

7 CFR Part 1205 

[Doc. # AMS–CN–09–0015; CN–09–002] 

Cotton Board Rules and Regulations: 

Adjusting Supplemental Assessment 

on Imports (2009 Amendments) 

Correction 

In rule document E9–16031 beginning 

on page 32400 in the issue of 

Wednesday, July 8, 2009, make the 

following correction: 

§1205.510 [Corrected] 

On page 32403, in §1205.510(3)(ii), in 

the table titled IMPORT ASSESSMENT 

TABLE, the third column heading, 

‘‘Cents/pkg.’’ should read ‘‘Cents/kg.’’, 

throughout the table. 

[FR Doc. Z9–16031 Filed 8–5–09; 8:45 am] 

BILLING CODE 1505–01–D 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 7 

Contract Market Rules Altered or 

Supplemented by the Commission 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rulemaking. 

SUMMARY: Regulation 7.201 of the 

Commodity Futures Trading 

Commission (‘‘Commission’’) alters and 

supplements Chicago Board of Trade 

(‘‘CBOT’’) Rule 620.01(B) by requiring 

members of the CBOT to submit to 

arbitration of any customer claim or 

grievance initiated by the customer 

according to the arbitration rules and 

regulations of the CBOT. On November 

25, 2007, following the merger of 

Chicago Mercantile Exchange (‘‘CME’’) 

Holdings, Inc. with CBOT Holdings, 

Inc., CBOT Rule 620.01(B) was 

superseded by new CBOT Rule 600.D. 

Like Regulation 7.201, new Rule 600.D 

specifically requires exchange members 

to submit to customer-initiated 

arbitrations. Accordingly, on petition of 

The CME Group Inc., CBOT’s parent 

company, Regulation 7.201 is being 

repealed by the Commission as no 

longer necessary. 

DATES: Effective Date: Effective August 

6, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Donald Heitman, Senior Special 

Counsel, Division of Market Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Center, 

1155 21st Street, NW., Washington, DC 

20581, telephone (202) 418–5041, e-mail 

dheitman@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 8a(7) of the Commodity 

Exchange Act (‘‘Act’’), 7 U.S.C. 12a(7), 

provides in relevant part that the 

Commission is authorized to ‘‘alter or 

supplement the rules of a registered 

entity insofar as necessary or 

appropriate * * * for the protection of 

traders or to insure fair dealing in 

commodities traded for future delivery 

on such registered entity.’’ In 1981, 

pursuant to section 5a(11) of the Act 

and Part 180 of the Commission’s 

regulations, each contract market was 

required to ‘‘provide a fair and equitable 

procedure through arbitration or 

otherwise * * * for the settlement of 

customers’ claims and grievances 

against any member or employee 

thereof.’’ 1

In November of 1981, the Commission 

published a final rule that disapproved 

proposed CBOT Rule 620.01(B), dealing 

with arbitration, and altered and 

supplemented CBOT’s rule by 

implementing in its place Commission 

Regulation 7.201.2 CBOT Rule 

620.01(B), as interpreted by CBOT, 

would have restricted the ability of 

customers to arbitrate claims against 

CBOT members and their employees 

under CBOT’s arbitration rules and 

regulations. The CBOT had argued that 

the Act did not compel its members to 

participate in customer-initiated 

arbitration proceedings and, during the 

period of 1980–81, CBOT members had 

denied five customers the right to 

arbitrate their disputes with members 

because those members refused to 

participate in the CBOT’s arbitration 

procedures. 

The Commission regulation, adopted 

pursuant to its section 8a(7) authority, 

altered and supplemented CBOT Rule 

620.01(B) to implement a Commissiondrafted version of Rule 620.01(B). The 

Commission-imposed rule assured that 

CBOT members would submit to 

arbitration proceedings initiated by 

customers under CBOT rules and 

regulations. Regulation 7.201 has 

remained in place ever since. 

On July 12, 2007, CBOT Holdings, 

Inc. merged with CME Holdings, Inc. to 

form The CME Group, Inc. On 

November 25, 2007, as part of the 

harmonization of the rules of the CBOT 

with those of the CME, the CBOT 

deleted Rule 620.01(B) from its rulebook 

and adopted new Rule 600.D governing 

permissive arbitrations. New CBOT Rule 

600.D, which is identical to CME Rule 

600.D, provides in relevant part that a 

CBOT member is, ‘‘* * * required to 

arbitrate * * * claims of a customer 

against a member that relate to or arise 

out of any transaction on or subject to 

the rules of the Exchange.’’ 

On June 8, 2009, The CME Group, 

Inc., CBOT’s parent company, submitted 

a petition pursuant to Commission 

Regulation 13.2 for the repeal of 

Regulation 7.201.3 Given that new 

CBOT Rule 600.D has, since November 

25, 2007, compelled members to submit 

to arbitration claims initiated by 

customers, that Rule 600.D fully 


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39212 Federal Register / Vol. 74, No. 150 / Thursday, August 6, 2009 / Rules and Regulations 

4 5 U.S.C. 553(b). 

5 5 U.S.C. 553. See also Commission Regulations 

13.3 through 13.5, 17 CFR 13.3–13.5 (notice of 

proposed rulemaking and public participation in 

the rulemaking process required unless the 

Commission finds for good cause that notice and 

public procedure thereon are impracticable, 

unnecessary, or contrary to the public interest). 

6 5 U.S.C. 603 and 604. 

7See 5 U.S.C. 605 (certification by the head of an 

agency permitted as an alternative to the regulatory 

flexibility analyses required at 5 U.S.C. 603 and 

604). 

conforms to the Commission’s 

interpretation of section 5a(11) of the 

Act at the time Regulation 7.201 was 

adopted, and to the Commission’s 

interpretation of CBOT’s obligations 

under successor section 5(d)(13) of the 

Act, and that Regulation 7.201 refers to 

a CBOT rule that is no longer in the 

CBOT rulebook, the Commission has 

determined to grant the CME Group’s 

petition and hereby repeals Regulation 

7.201. 

II. Related Matters 

A. No Notice Required Under 5 U.S.C. 

553 

The Administrative Procedure Act 

(‘‘APA’’) requires rulemakings to be 

commenced with a general notice of 

public rulemaking, published in the 

Federal Register,4 except, among other 

things, ‘‘when the agency for good cause 

finds * * * that notice and public 

procedure thereon are impracticable, 

unnecessary, or contrary to the public 

interest.’’ 5

The repeal of Commission Regulation 

7.201 will not cause new regulatory 

requirements to be effected, because 

new CBOT Rule 600.D imposes the 

same requirements on CBOT members 

that Commission Regulation 7.201 was 

adopted to impose. Therefore, the 

Commission finds for good cause that 

the notice and public procedure are 

unnecessary before finalizing the repeal 

of Commission Regulation 7.201. 

B. Regulatory Flexibility Act 

The Commission is required to 

prepare and make available for public 

comment a regulatory flexibility 

analysis describing the impact of a rule 

on small entities when the Commission 

is required by 5 U.S.C. 553 or any other 

law to publish a notice of proposed 

rulemaking.6 The Commission has 

found according to the provisions of 5 

U.S.C. 553 that a notice of proposed 

rulemaking is unnecessary for the repeal 

of Regulation 7.201. Therefore, the 

Commission is not required to prepare 

and make available a regulatory 

flexibility analysis, and the head of the 

agency alternatively is not making a 

certification as to the economic impact 

of the rule on a substantial number of 

small entities.7

C. Paperwork Reduction Act 

The Paperwork Reduction Act 

(‘‘PRA’’), 44 U.S.C. 3501 et seq., imposes 

certain requirements on federal agencies 

(including the Commission) in 

connection with their conducting or 

sponsoring any collection of 

information as defined by the PRA. The 

repeal of Regulation 7.201 is not 

associated with a collection of 

information. Accordingly, the 

Paperwork Reduction Act does not 

apply. 

D. Cost Benefit Analysis 

Section 15(a) of the Act requires the 

Commission to consider the costs and 

benefits of its action before 

promulgating a new regulation or order 

under the Act. Since this action repeals 

rather than promulgates a regulation, by 

its terms, § 15(a) does not apply. In any 

event, the repeal of Commission 

Regulation 7.201 will not cause new 

regulatory requirements to be effected, 

as new CBOT Rule 600.D imposes the 

same requirements on CBOT members 

that Commission Regulation 7.201 was 

adopted to impose. Thus, the repeal of 

Regulation 7.201 is cost/benefit neutral. 

List of Subjects in 17 CFR Part 7 

Arbitration, Commodity exchanges, 

Commodity futures. 

■ In consideration of the foregoing, and 

pursuant to the authority in the 

Commodity Exchange Act and, in 

particular, sections 5 and 8a of the Act, 

the Commission hereby amends Title 

17, part 7, of the Code of Federal 

Regulations as follows: 

PART 7—CONTRACT MARKET RULES 

ALTERED OR SUPPLEMENTED BY 

THE COMMISSION 

■ 1. The authority citation for part 7 is 

revised to read as follows: 

Authority: 7 U.S.C. 7(a) and 12a(7). 

§ 7.201 [Removed and reserved] 

■ 2. Section 7.201 is removed and 

reserved. 

Issued in Washington, DC, on July 31, 

2009. 

By the Commission. 

David Stawick, 

Secretary of the Commission. 

[FR Doc. E9–18855 Filed 8–5–09; 8:45 am] 

BILLING CODE 6717–01–P 

DEPARTMENT OF STATE 

22 CFR Part 123 

[Public Notice: 6646] 

Amendment to the International Traffic 

in Arms Regulations: Temporary 

Export Exemption for Body Armor 

AGENCY: Department of State. 

ACTION: Final rule. 

SUMMARY: The Department of State is 

amending the International Traffic in 

Arms Regulations (ITAR) to add an 

exemption for the temporary export of 

body armor for exclusive personal use to 

destinations not subject to restrictions 

under the ITAR § 126.1 and to 

Afghanistan and Iraq under specified 

conditions. 

DATES: Effective Date: This rule is 

effective August 6, 2009. 

ADDRESSES: Interested parties may 

submit comments at any time by any of 

the following methods: 

• E-mail: 

DDTCResponseTeam@state.gov with an 

appropriate subject line. 

• Mail: Department of State, 

Directorate of Defense Trade Controls, 

Office of Defense Trade Controls Policy, 

ATTN: Regulatory Change, Section 

123.17, SA–1, 12th Floor, Washington, 

DC 20522–0112. 

Persons with access to the Internet 

may also view this notice by going to 

the regulations.gov Web site at http:// 

regulations.gov/index.cfm. 

FOR FURTHER INFORMATION CONTACT: 

Director Charles B. Shotwell, Office of 

Defense Trade Controls Policy, 

Department of State, Telephone (202) 

663–2792 or Fax (202) 261–8199; E-mail 

DDTCResponseTeam@state.gov. ATTN: 

Regulatory Change, Section 123.17. 

SUPPLEMENTARY INFORMATION: U.S. 

individuals are traveling to hazardous 

areas in foreign countries where they 

need to wear body armor for personal 

safety. Consequently, the Department of 

State is amending the International 

Traffic in Arms Regulations (ITAR) to 

add an exemption for the temporary 

export of body armor covered by 22 CFR 

121.1, Category X(a)(1). The exemption 

is available for destinations not subject 

to restrictions under ITAR § 126.1 and 

to Afghanistan and Iraq under specified 

conditions. In order to use the 

exemption, the protective equipment 

must be for the individual’s exclusive 

use and must be returned to the United 

States. The individual may not re-export 

the protective equipment to a foreign 

person or otherwise transfer ownership. 

The protective equipment may not be 

exported to any country where the 


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