52434 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

1The Act is codified at 7 U.S.C. 1 et seq. (2009), 

and section 4f(b) of the Act is codified at 7 U.S.C. 

6f(b). The Commission’s regulations cited in this 

proposed rulemaking may be found at 17 CFR Ch. 

1 (2009). 

2For simplicity, references in this Federal 

Register release to IBs in connection with financial 

reporting and notice requirements are intended to 

refer to IBs that are not operating pursuant to a 

guarantee agreement. 

Replacement 

(g) Within 60 months after the effective 

date of this AD: Replace the power control 

relays for the main tank fuel boost pumps 

and jettison pumps, and the center tank 

scavenge pump, as applicable, with new 

relays having a ground fault interrupt feature, 

in accordance with the Accomplishment 

Instructions of Boeing Alert Service Bulletin 

747–28A2261, dated February 19, 2009. 

Maintenance Program Revision 

(h) Concurrently with the actions required 

by paragraph (g) of this AD: Revise the 

maintenance program by incorporating the 

applicable information in paragraphs (h)(1) 

and (h)(2) of this AD. The inspection interval 

for AWLs 28–AWL–23, 28–AWL–28, and 28– 

AWL–29 starts on the date the replacement 

required by paragraph (g) of this AD is done. 

(1) For Model 747–400, 747–400D, and 

747–400F series airplanes: Incorporate new 

airworthiness limitations 28–AWL–28 and 

28–AWL–29 of Subsection D, 

‘‘AIRWORTHINESS LIMITATIONS—FUEL 

SYSTEMS,’’ of Boeing 747–400 Maintenance 

Planning Data (MPD) Document, Document 

D621U400–9, Section 9, Revision April 2008. 

(These AWLs were first introduced in 

Revision October 2007 of the MPD 

document.) 

(2) For Model 747–100, 747–100B, 747– 

100B SUD, 747–200B, 747–200C, 747–200F, 

747–300, 747SP, and 747SR series airplanes: 

Incorporate new airworthiness limitation 28– 

AWL–23 of Subsection D, 

‘‘AIRWORTHINESS LIMITATIONS— 

SYSTEMS,’’ of Boeing 747–100/200/300/SP 

Airworthiness Limitations (AWLs) and 

Certification Maintenance Requirements 

(CMRs), Document D6–13747–CMR, Revision 

March 2008. (This AWL was first introduced 

in Revision September 2007 of the AWLs/ 

CMRs document.) 

No Alternative Inspection or Inspection 

Intervals 

(i) After accomplishing the action required 

by paragraph (h) of this AD, no alternative 

inspections or inspection intervals may be 

used, unless the inspections or intervals are 

approved as an alternative method of 

compliance (AMOC) in accordance with the 

procedures specified in paragraph (j) of this 

AD. 

Alternative Methods of Compliance 

(AMOCs) 

(j)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to Attn: 

Georgios Roussos, Aerospace Engineer, 

Systems and Equipment Branch, ANM–130S, 

FAA, Seattle Aircraft Certification Office, 

1601 Lind Avenue SW., Renton, Washington 

98057–3356; telephone (425) 917–6482; fax 

(425) 917–6590. Or, e-mail information to 9- 

ANM-Seattle-ACO-AMOC-Requests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Issued in Renton, Washington, on 

September 25, 2009. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. E9–24490 Filed 10–9–09; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 1 

RIN 3038–AB87 

Electronic Filing of Financial Reports 

and Notices 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing to amend certain 

of its regulations in connection with 

electronic filing of financial reports and 

other notices (‘‘Proposal’’). The Proposal 

would broaden the language in the 

Commission’s regulations applicable to 

electronic filings of financial reports to 

clarify that, to the extent a futures 

commission merchant (‘‘FCM’’) submits 

a Form 1–FR to the Commission 

electronically, it may do so using any 

user authentication procedures 

established or approved by the 

Commission. The Proposal also would 

permit registrants to electronically 

submit filings in addition to financial 

reports, including an election to use a 

non-calendar fiscal year, requests for 

extensions of time to file uncertified 

financial reports and ‘‘early warning’’ 

notices required under Commission 

regulations. In connection with the 

filing of financial reports, the 

Commission also is proposing to 

specify, consistent with other 

requirements and existing practice, that 

a statement of income and loss is 

included as a required part of the noncertified 1–FR filings for FCMs and 

introducing brokers (‘‘IBs’’). The 

Commission also is proposing to require 

more immediate, but less prescriptive, 

documentation regarding a firm’s capital 

condition when a firm falls below its 

required minimum adjusted net capital. 

Finally, the Commission is proposing 

several other minor amendments to 

correct certain outdated references and 

to make other clarifications to existing 

regulations. 

DATES: Comments must be received on 

or before November 12, 2009. 

ADDRESSES: You may submit comments, 

identified by RIN 3038–AB87, by any of 

the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov/search/index.jsp. 

Follow the instructions for submitting 

comments. 

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

‘‘Electronic Filing Amendments’’ in the 

subject line of the message. 

• Fax: (202) 418–5521. 

• Mail: Send to David Stawick, 

Secretary, Commodity Futures Trading 

Commission, 1155 21st Street, NW., 

Washington, DC 20581. 

• Courier: Same as Mail above. 

All comments received will be posted 

without change to http://www.cftc.gov, 

including any personal information 

provided. 

FOR FURTHER INFORMATION CONTACT: 

Thelma Diaz, Associate Director, 

Division of Clearing and Intermediary 

Oversight, 1155 21st Street, NW., 

Washington, DC 20581. Telephone 

number: 202–418–5137; facsimile 

number: 202–418–5547; and electronic 

mail: tdiaz@cftc.gov, or Lawrence T. 

Eckert, Special Counsel, Division of 

Clearing and Intermediary Oversight, 

140 Broadway, New York, New York 

10005. Telephone number (646) 746– 

9704; and electronic mail: 

leckert@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 4f(b) of the Commodity 

Exchange Act, as amended (the ‘‘Act’’) 

authorizes the Commission to impose by 

regulation minimum financial and 

related reporting requirements on 

futures commission merchants 

(‘‘FCMs’’) and introducing brokers 

(‘‘IBs’’).1 Commission Regulation 1.10 

sets forth the financial reporting 

requirements for FCMs and IBs.2 This 

regulation includes a requirement for 

FCMs and IBs to file annual financial 

statements that have been certified by 

an independent public accountant in 

accordance with Regulation 1.16. 

Regulation 1.10 also requires generally 

that FCMs file with the Commission 

non-certified Form 1–FR–FCM financial 

reports each month and that IBs file 

non-certified Form 1–FR–IB financial 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 52435 

3Commission Regulation 1.10(h) permits a 

registrant that also is registered as a securities 

broker-dealer with the Securities and Exchange 

Commission (‘‘SEC’’) to file a copy of its Financial 

and Operational Combined Uniform Single Report 

(‘‘FOCUS’’) with the Commission in lieu of Form 

1–FR. 

4For example, Regulation 1.12(a) requires 

immediate telephonic notice, to be confirmed in 

writing by facsimile, when a registrant’s (or 

applicant’s) adjusted net capital falls below that 

required by Regulation 1.17. Other provisions of 

Regulation 1.12 require notification to the 

Commission for certain ‘‘early warning’’ events. 

Regulation 1.12(b), for example, requires 

notification by a registrant or applicant if such 

entity’s adjusted net capital drops below a specified 

threshold. 

5See 62 FR 10441 (March 7, 1997) (a technical 

amendment to the final rules is found at 62 FR 

33007 (June 18, 1997)). Many firms were already 

filing financial reports electronically with their self 

regulatory organizations (‘‘SROs’’) at this time 

pursuant to SRO rules approved by the 

Commission. 

6The Commission approved on an expedited 

basis, effective June 30, 2004, NFA rule 

amendments which require that IBs submit noncertified Forms 1–FR–IB or FOCUS reports 

electronically using NFA’s EasyFile electronic filing 

system. On November 22, 2006, in response to a 

petition by NFA, the Commission adopted 

amendments to its regulations that effectively 

provided NFA with the ability to further expand its 

electronic financial report filing requirements 

applicable to IBs to include mandatory electronic 

filing of certified financial reports. 71 FR 54789 

(Sep. 19, 2006). Although submissions by IBs of 

certified Form 1–FR–IB must be made 

electronically, NFA has not yet mandated electronic 

filing of certified FOCUS reports by IBs registered 

as securities brokers or dealers. 

7The ‘‘WinJammer TM Group’’ consists of the 

CME, CBT, and NFA, which joined the group in 

2000. 

reports semiannually.3 Commission 

Regulation 1.12 requires FCMs, IBs and 

applicants for registration thereof to 

provide notice of a variety of predefined 

events as or before they occur.4

The Commission amended Regulation 

1.10 in 1997 to provide for the first time 

the regulatory means for FCMs and IBs 

to file financial reports electronically 

with the Commission.5 Regulation 

1.10(c)(2) permits FCMs to file noncertified financial reports with the 

Commission via electronic transmission 

using a Commission-assigned personal 

identification number (‘‘PIN’’). 

Regulation 1.10(b)(2)(iii) requires FCMs 

to continue to file certified financial 

reports in paper form, but requires IBs 

to file such certified reports 

electronically in accordance with 

procedures adopted by the National 

Futures Association (‘‘NFA’’).6

FCMs that file their non-certified 

financial reports electronically with the 

Commission currently do so through 

WinJammer,TM a software application 

initially developed jointly by the 

Chicago Mercantile Exchange (‘‘CME’’) 

and the Chicago Board of Trade 

(‘‘CBT’’). The WinJammer TM Group 7

has licensed or otherwise provided 

application access to a number of SROs 

and regulatory agencies, including the 

Commission. IBs file financial reports 

with NFA through NFA’s ‘‘EasyFile’’ 

system, which was developed by NFA 

as an internet-based alternative to 

WinJammer.TM

The WinJammer TM Group currently is 

working on a new release of its 

application that would, among other 

things, move toward an internet-based 

approach to electronic filing of 

documents. It is envisioned that security 

access to the updated WinJammer TM

application will no longer require a PIN, 

but rather will use a username/ 

password combination for 

authentication. The new application is 

expected to provide a number of 

advancements over the current software, 

including the ability for FCMs to file 

notices on a central server to be 

maintained by the WinJammer TM

Group. The use of a central serverapproach will facilitate greater filing 

efficiency by enabling an FCM to make 

a single electronic filing to the server. 

The filing would be available to and 

would be downloaded by the software 

of the Commission, NFA and/or the 

relevant SRO, as applicable. The 

registrant would be responsible to check 

its WinJammer TM account for 

confirmation that the filing had in fact 

been received by the intended 

recipients. Currently, FCMs must make 

separate electronic filings with each 

relevant party. 

II. Proposed Rule Amendments 

A. Electronic Filing Issues 

Commission Regulation 1.10(c) 

generally sets forth the provisions 

governing where and how the financial 

reports required to be filed by FCMs and 

IBs under Regulation 1.10 must be filed. 

Regulation 1.10(c)(1) indicates with 

whom reports should be filed. 

Regulation 1.10(c)(2) addresses the 

method, rather than the location of 

filing and provides that certain noncertified financial reports may be 

submitted to the Commission via 

electronic transmission using a 

Commission-assigned personal 

identification number. Electronic 

submission of certified financial reports 

is addressed in Regulation 

1.10(b)(2)(iii). This section provides that 

FCMs must file certified financial 

reports in paper form and IBs must file 

such reports electronically in 

accordance with electronic filing 

procedures established by NFA. 

For clarification and ease of reading, 

the Proposal would move Regulation 

1.10(b)(2)(iii) into a new subparagraph 

of Regulation 1.10(c)(2). Regulation 

1.10(c)(2) would be amended as 

discussed below and divided into 2 new 

subparagraphs: Subparagraph (c)(2)(i) 

would address electronic filing by FCMs 

with the Commission and subparagraph 

(c)(2)(ii) would address electronic 

filings with NFA by IBs and by 

applicants for registration as IBs and 

FCMs. 

Regulation 1.10(c)(2) currently 

provides that non-certified financial 

reports may be submitted to the 

Commission ‘‘in electronic form using a 

Commission assigned Personal 

Identification Number, and otherwise in 

accordance with instructions issued by 

the Commission * * *.’’ As discussed 

above, the anticipated changes to the 

user authentication process for 

WinJammer TM users would no longer 

utilize a PIN. Accordingly, the 

Commission is proposing to broaden the 

language in the regulation relating to 

user authentication. In addition, the 

Commission is proposing to permit any 

filing or other notice submitted under 

the regulation to be transmitted 

electronically, rather than limiting such 

submission to financial reports as under 

the current regulation. This would 

enable FCMs to electronically file, for 

example, an election to use a fiscal year 

other than a calendar year under 

Regulation 1.10(e) or a request for an 

extension of time to file uncertified 

financial reports under Regulation 

1.10(f). As amended, Regulation 

1.10(c)(2)(i) would provide that ‘‘[except 

with respect to the filing of certified 

financial reports which must be filed in 

paper form], all filings or other notices 

or applications prepared by a futures 

commission merchant pursuant to 

[Regulation 1.10] may be submitted to 

the Commission in electronic form 

using a form of user authentication 

assigned in accordance with procedures 

established by or approved by the 

Commission, and otherwise in 

accordance with instruction issued by 

or approved by the Commission, if the 

futures commission merchant or a 

designated self-regulatory organization 

has provided the Commission with the 

means necessary to read and to process 

the information contained in such 

report.’’ The Commission also would 

revise the instructions to Form 1–FR– 

FCM to reflect this change. Regulation 

1.10(c)(2)(ii) would provide that 

‘‘[except with respect to the filing of 

certified FOCUS reports by a registered 

broker or dealer with the SEC], all 

filings or other notices or applications 

prepared by an introducing broker or 

applicant for registration as an 

introducing broker or futures 

commission merchant * * * must be 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
52436 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

8See footnote 4, above. 

9 IBs file notices under Regulation 1.12 with NFA 

pursuant to NFA rules. NFA has indicated that it 

intends to make changes to the EasyFile system 

and/or NFA rules, as may be necessary to facilitate 

the electronic filing by IBs of notices or other 

information permitted to be submitted 

electronically by the Proposal but currently filed 

with NFA in paper form. 

10Non-clearing broker-dealers file FOCUS, 

including the statement of income (loss), on a 

quarterly basis. 

11Under SEC Regulation 17a–5 and rules of 

applicable self-regulatory organizations, certain 

securities brokers or dealers may include as part of 

their quarterly FOCUS report filings a consolidated 

Statement of Income (Loss) for the relevant quarter 

rather than a Statement of Income (Loss) for the 

month for which the report is being filed (i.e., 

March, June, September or December). Such brokerdealers that also are registered as FCMs would file 

these same reports with the Commission. The 

Commission wishes to make clear that an otherwise 

complete FOCUS report filing made with the 

Commission that includes such a consolidated 

Statement of Income (Loss) would be deemed an 

acceptable filing in accordance with Commission 

Regulation 1.10(h). 

filed electronically in accordance with 

electronic filing procedures established 

by the National Futures Association 

* * *.’’ 

Regulation 1.10(d)(4)(iii) provides that 

with respect to the electronic 

submission of a Form 1–FR, the 

transmission must be accompanied by 

the PIN or other user authentication 

assigned to the authorized signer under 

procedures established or approved by 

the Commission, and the use of such 

PIN or other user authentication will 

substitute for the manual signature of 

the authorized signer for the purposes of 

making the oath or affirmation required 

to accompany the filing of Form 1–FR. 

In light of the amendments to 

Regulation 1.10 discussed above related 

to user authentication procedures, the 

Proposal would delete from Regulation 

1.10(d)(4)(iii) references to the use of a 

PIN. 

Commission Regulation 1.12 requires 

FCMs, IBs and applicants for 

registration thereof to provide notice of 

a variety of predefined events as or 

before they occur.8 The regulation 

generally requires such notices to be 

provided in writing by facsimile and, in 

certain cases, written notice must be 

preceded by immediate telephonic 

notice. Regulation 1.12(i) provides the 

procedures for filing notices under 

Regulation 1.12. In light of the 

anticipated changes to the 

WinJammer TM application, the 

successful implementation in the past of 

the electronic filing of Form 1–FR with 

the Commission and the potential 

benefits in terms of efficiency and paper 

reduction, the Commission is proposing 

to amend Regulation 1.12(i) to allow 

FCMs and IBs to submit electronically 

filings otherwise required to be 

submitted in writing via facsimile under 

Regulation 1.12.9 The Proposal would 

add new subparagraph 1.12(i)(3) which 

would provide that ‘‘[e]very notice or 

report required to be provided in 

writing under [Regulation 1.12] may, in 

lieu of facsimile, be filed via electronic 

transmission using a form of user 

authentication assigned in accordance 

with procedures established by or 

approved by the Commission, and 

otherwise in accordance with 

instructions issued by or approved by 

the Commission.’’ An electronic 

submission would be required to clearly 

indicate the registrant or applicant on 

whose behalf such filing is made and 

the use of such user authentication in 

submitting such filing would constitute 

and become a substitute for the manual 

signature of the authorized signer. 

B. Income Statement Filing Requirement 

Commission Regulation 1.10(d) sets 

forth the content requirements for 

financial reports filed with the 

Commission: Regulation 1.10(d)(2) 

applies to certified financial reports and 

Regulation 1.10(d)(1) applies to noncertified financial reports. 

Certified financial reports are required 

to include, among other things, 

‘‘statements of income (loss)’’ pursuant 

to Regulation 1.10(d)(2)(ii). This 

requirement is not currently included as 

part of Regulation 1.10(d)(1) in 

connection with the filing of noncertified financial reports. In practice, 

however, FCMs and IBs typically 

include such statements with all 

financial report filings made with the 

Commission, whether or not such 

reports are required to be certified. 

FCMs that are also registered with the 

SEC as broker-dealers and that carry or 

clear customer accounts already are 

required to file with their designated 

examining authority an income 

statement as part of their monthly 

FOCUS filing.10 Other FCMs and IBs, 

while not necessarily required to file 

these statements, must nonetheless 

compute the firm’s income and loss on 

a monthly basis (or semiannual basis in 

the case of IBs) in order to appropriately 

complete other relevant portions of 

Form 1–FR or FOCUS. Both Form 1–FR 

and FOCUS already are formatted to 

accept the reporting of income and loss 

data electronically. 

The income statement is an integral 

part of the financial report that the 

Commission believes should be 

available for review along with other 

relevant financial data filed on an 

interim basis. Additionally, requiring 

the filing of such statements should not 

add any additional burden to 

registrants. In fact, as mentioned, 

substantially all FCMs and IBs already 

include such statements as part of their 

non-certified financial reports filed with 

the Commission. Accordingly, the 

Commission is proposing to amend 

Regulation 1.10(d)(1)(ii) to require 

‘‘statements of income (loss)’’ to be 

included as part of FCM and IB noncertified financial report filings. By 

requiring that firms file an income 

statement with their non-certified 

financial reports as well as with their 

annual certified report, the amended 

rule would ensure that Commission staff 

receive more current information and 

have the ability to review this 

information relating to a firm’s financial 

health more than once a year. This 

amendment would not affect the ability 

of a broker-dealer to file with the 

Commission in accordance with 

Regulation 1.10(h) the FOCUS report 

under the Securities and Exchange Act 

of 1934, including the income statement 

currently provided in that report.11

Further, as is true of such statements 

filed as part of a certified financial 

report, income statements included as 

part of a non-certified 1–FR or FOCUS 

filing would be afforded nonpublic 

treatment pursuant to Commission 

Regulation 1.10(g). 

C. Net Capital Undercapitalization 

Documentation 

The Commission is proposing to 

amend Regulations 1.12(a)(2) and (a)(3) 

to require more immediate, but less 

prescriptive, reporting to the 

Commission when a registrant or 

applicant falls below its minimum net 

capital requirement. Regulation 1.12(a) 

requires a registrant or applicant for 

registration as an FCM or IB that knows 

or should have known that its adjusted 

net capital is less than the minimum 

required by the Commission or by its 

designated self-regulatory organization 

(‘‘DSRO’’) to provide notice of such 

event immediately by telephone and 

confirm such telephonic notice in 

writing by facsimile. Regulation 

1.12(a)(2) further requires that, within 

24 hours thereafter, the registrant (or 

applicant) must file certain financial 

records with the Commission. 

Specifically, an FCM (or applicant) is 

required to file: (1) A statement of 

financial condition; (2) a statement of 

the computation of its minimum capital 

requirements; (3) the statements of 

segregation requirements and funds in 

segregation for customers trading on 

U.S. commodity exchanges and for 

customers’ dealer options accounts; and 

(4) the statement of secured amounts 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 52437 

12This amendment is consistent with SEC 

Regulation 17a–11 which requires a broker or dealer 

whose net capital falls below its required minimum 

to give notice of the deficiency that same day, 

specifying the broker or dealer’s net capital 

requirement and its current amount of net capital. 

13Regulation 1.10(b)(4) already provides that 

representatives of the Commission may upon 

written notice require Form 1–FR or other financial 

information at such times as specified by the 

representative. 

14The Commission order delegating to NFA the 

registration function for IB applicants is published 

at 48 FR 35158 (August 3, 1983), and the order 

delegating the registration function for FCM 

applicants is published at 49 FR 39593 (October 9, 

1984). 

and funds held in separate accounts for 

foreign futures and foreign options 

customers. Regulation 1.12(a)(3) 

requires an IB (or applicant) to file a 

statement of financial condition and a 

statement of the computation of its 

minimum capital requirements. All 

statements under Regulations 1.12(a)(2) 

and (a)(3) must be prepared as of the 

date the registrant’s or applicant’s 

adjusted net capital was below its 

minimum requirement. 

When a firm falls below its minimum 

adjusted net capital requirement, the 

Commission’s interest is to understand 

fully the circumstances that gave rise to 

the reduction in capital and to ensure 

that there are no imminent concerns 

regarding the firm’s ability to meet its 

obligations to the market or customers, 

or to otherwise continue normal 

business operations. The statements 

required by the current regulation help 

provide a picture of a firm’s financial 

position as of the time such statements 

are prepared. The regulations, however, 

currently allow up to 24 hours from the 

receipt of original notice of a net capital 

deficiency for such documentation to be 

provided. In practice, firms that notify 

the Commission of a fall below 

minimum net capital under Regulation 

1.12(a) often simultaneously provide 

written information to the Commission 

sufficient to evidence the firm’s thencurrent capital condition. Such 

information has not always taken the 

specific form prescribed in the 

regulation, however. Upon receipt of 

information from a registrant, 

Commission staff members have 

requested further information as 

determined appropriate and necessary 

in the circumstances. Firms generally 

have been prompt in providing such 

data. 

The Commission has found that 

receiving more immediate information 

regarding a firm’s capital condition 

better satisfies the Commission’s 

interests and typically is of greater 

benefit than obtaining documentation in 

the specific form currently prescribed at 

the expense of a time delay. 

Accordingly, the Commission is 

proposing to amend Regulation 1.12(a) 

consistent with this practice. Under the 

Proposal, a firm must continue to 

provide immediate telephonic notice, 

confirmed in writing, in the event that 

its adjusted net capital falls below its 

required minimum. Paragraph 1.12(a)(2) 

would be amended to require that 

together with such initial telephonic 

notice and written confirmation, a firm 

must provide ‘‘documentation in such 

form as necessary to adequately reflect 

the firm’s capital condition as of any 

date such person’s adjusted net capital 

is less than the minimum required.’’ 12

Thus, a firm would be required to 

provide documentation regarding its 

capital condition at the same time as it 

provides its notice and confirmation of 

a capital deficiency to the Commission. 

The amended regulation would, 

however, provide greater flexibility with 

respect to the form such documentation 

must take, allowing any documentation 

that adequately reflects the firm’s 

capital condition. The Commission 

envisions that such adequate 

documentation would at a minimum 

specify the firm’s adjusted net capital 

requirement and actual adjusted net 

capital for any date during which the 

firm fell below its regulatory 

requirement. By requiring 

documentation as of ‘‘any’’ date that 

adjusted net capital is less than the 

required minimum, the amended 

regulation makes clear that where a firm 

is undercapitalized on more than one 

day, documentation related to all such 

time must be provided. The amended 

regulation also would require a firm to 

provide similar documentation to that 

initially provided for any other days the 

Commission may request.13 Regulation 

1.12(a)(3), which provides 

supplementary documentation 

requirements for IBs, would be deleted 

because amended Regulation 1.12(a)(2) 

would subsume this section. 

As a corollary to the amendment to 

Regulation 1.12(a)(2), the Commission is 

proposing to amend Regulation 

1.12(i)(1). This section addresses the 

process for filing notices under 

Regulation 1.12 and currently requires, 

among other things, that the 

documentation required under 

Regulations 1.12(a)(2) and (a)(3) be filed 

in accordance with the provisions of 

section 1.10(d), which specifies the 

required content of financial reports. 

This requirement is no longer necessary 

as the specific financial statements 

currently referenced in Regulation 

1.12(i)(1) would no longer be required 

under the Proposal. Accordingly, the 

Proposal would delete this requirement. 

Documentation required to be provided 

under amended Regulation 1.12(a)(2) 

would be submitted either by facsimile 

or electronically pursuant to amended 

Regulation 1.12(i)(3). 

D. Miscellaneous Amendments to 

Regulations 

The Commission is proposing several 

minor amendments to Regulations 1.10 

and 1.12 to correct certain outdated 

references and to otherwise clarify 

existing regulations. Regulation 

1.10(c)(1) states generally that reports 

filed by IBs pursuant to paragraph 

(b)(2)(i) or (b)(2)(ii) (i.e., the filing 

provisions for non-certified and 

certified reports by registered IBs) are 

filed only with NFA. Other reports are 

generally required to be filed with the 

relevant regional office of the 

Commission and the registrant’s SRO, 

except that an applicant for registration 

is required to file reports with the 

relevant regional office of the 

Commission and NFA. The Commission 

has issued orders delegating to NFA the 

processing of application requests by 

FCMs and IBs, and in practice almost all 

financial reports from applicants for 

registration as FCMs or IBs are filed 

with the NFA only.14 Accordingly, the 

Commission is proposing to amend the 

language of Regulation 1.10(c)(1) to 

delete reference to an applicant’s need 

to file financial reports with a regional 

office of the Commission. 

Similarly, Regulation 1.12(i)(1) 

currently indicates that an applicant for 

registration as an FCM must file any 

notices required under Regulation 1.12 

with, among others, the regional office 

of the Commission that has jurisdiction 

over the state in which the applicant’s 

principal place of business is located 

and with the Commission’s principal 

office in Washington, DC. The proposed, 

amended language in Regulation 

1.12(i)(1) would make clear that an 

applicant for registration as an FCM 

would file such notices only with NFA 

and that such notices need not be filed 

with the Commission. The amended 

regulation would also make clear that 

any notice or report filed with the 

National Futures Association will be 

deemed to be filed with, and to be the 

official record of, the Commission. 

The Commission also is proposing the 

following minor wording changes to 

Regulation 1.10(c)(1) for the purposes of 

consistency with other provisions of the 

regulations and/or general clarification 

as follows: (1) The reference to ‘‘[a] 

report filed by an [IB] pursuant to 

paragraph (b)(2)(i) or (b)(2)(ii)’’ would 

be amended to clarify that ‘‘a report’’ in 

this context is meant to refer to Form 1– 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
52438 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

15See 48 FR 35248 (Aug. 3, 1983) (adopting 

registration requirements and procedures for IBs, 

among others). 

16See 48 FR 35248, 35275–78 (Aug. 3, 1983). 17See Commission Regulations 1.10(b)(2) and 

1.10(h) (requiring IBs to file with the Commission 

Form 1–FR–FCM or, as an alternative in the case 

of a registered broker or dealer with the SEC, the 

FOCUS report). 18 44 U.S.C. 3507(d). 

FR; (2) the reference to subparagraphs 

(b)(2)(i) and (b)(2)(ii) would be amended 

for simplicity to refer only to paragraph 

(b)(2) in general; and (3) the language of 

paragraph 1.10(c)(1) would be amended 

to make clear that it is intended to cover 

not only ‘‘reports’’ but all reports and 

other ‘‘information.’’ The Commission, 

NFA and SROs are permitted under 

Regulation 1.10(b)(4) to make a written 

request of an FCM or IB for information 

as they may determine is necessary. The 

proposed amendment would clarify that 

the guidance provided in Regulation 

1.10(c)(1) regarding with whom filings 

should be made would govern the filing 

of such requested information. 

Regulation 1.10(b)(2)(i) provides 

generally that an IB must file a Form 1– 

FR–IB semiannually as of the middle 

and close of each fiscal year ‘‘unless the 

[IB] elects * * * to file a Form 1–FR– 

IB semiannually as of the middle and 

close of each calendar year.’’ Regulation 

1.10(b)(2)(ii) generally states further that 

an IB must file a certified 1–FR–IB as of 

the close of its fiscal year ‘‘(even if it 

files semiannual reports on a calendar 

year basis).’’ Prior to 1993, Commission 

regulations required IBs to file Form 

1–FR on a quarterly rather than a 

semiannual basis, unless the IB’s SRO 

permitted semiannual filing. The 

regulations also allowed IBs to elect to 

file reports on a calendar year basis 

rather than on a fiscal year basis.15 This 

election was separate from the election 

to use a fiscal year other than a calendar 

year, which is still permitted to be made 

under Regulation 1.10(e)(1). The 

Commission’s regulations no longer 

provide a separate option to elect to file 

on a calendar year rather than a fiscal 

year basis and, accordingly, the 

Commission is proposing to delete the 

language quoted above referencing such 

an election. 

Regulation 1.10(b)(3) provides 

generally that an FCM or IB can satisfy 

the 1–FR filing requirements applicable 

to them set forth in Regulations 

1.10(b)(1) and (2), respectively, if the 

FCM or IB is a member of a DSRO and 

satisfies the minimum financial 

standards and reporting requirements 

established by rules of the DSRO which 

have been approved ‘‘after the effective 

date of these regulations by the 

Commission * * *.’’ The language 

‘‘after the effective date of these 

regulations’’ is no longer relevant and, 

accordingly, the Commission is 

proposing to delete the language. 

Finally, for purposes of clarification 

and consistency with the Commission’s 

regulations the Commission is 

proposing to amend language within 

regulation 1.10(h) that references 

‘‘NFA’’ by spelling out ‘‘National 

Futures Association.’’ 

III. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601 et seq., requires 

that agencies, in proposing regulations, 

consider the impact of those regulations 

on small businesses. The amendments 

proposed herein would affect FCMs and 

IBs. The Commission has previously 

determined that, based upon the 

fiduciary nature of FCM/customer 

relationships, as well as the requirement 

that FCMs meet minimum financial 

requirements, FCMs should be excluded 

from the definition of small entity. 

With respect to IBs, the Commission 

stated that it is appropriate to evaluate 

within the context of a particular rule 

proposal whether some or all IBs should 

be considered to be small entities and, 

if so, to analyze the economic impact on 

such entities at that time.16 The 

Proposal will not place any additional 

burdens on IBs that are small businesses 

because all such parties, if any, already 

are subject to the financial reporting and 

notice requirements under Regulations 

1.10 and 1.12 and already file financial 

reports through NFA’s electronic filing 

system. Additionally, although the 

Commission is proposing to add a 

requirement to include statements of 

income and loss as part of non-certified 

financial report filings, substantially all 

IBs already are filing this data in 

practice and, in any event, must 

compute the relevant income and loss 

data (although not currently required to 

be provided in a separate income 

statement) in order to complete 

Commission Form 1–FR or the SEC 

FOCUS report, as applicable, under the 

Commission’s regulations.17

Accordingly, pursuant to Section 3(a) of 

the RFA, 5 U.S.C. 605(b), the Chairman, 

on behalf of the Commission, certifies 

that these proposed rule amendments 

will not have a significant economic 

impact on a substantial number of small 

entities. However, the Commission 

invites the public to comment on this 

finding. 

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) 18 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 

Proposal does not require a new 

collection of information on the part of 

any entities subject to the proposed 

amendments. The amendments would, 

if adopted in final form, provide FCMs 

and IBs with an alternative method for 

submitting certain data. The 

amendments proposed under Regulation 

1.12(a)(2) would provide FCMs and IBs 

with a more flexible approach to 

providing documentation if a 

registrant’s adjusted net capital fell 

below its minimum requirement, but 

would not require a new collection or 

affect the collection burden, as 

discussed below. Additionally, although 

the Commission is proposing to add a 

requirement to include statements of 

income and loss as part of non-certified 

financial report filings, substantially all 

registrants that file financial reports 

with the Commission already are filing 

this data. 

Collection of Information 

(Regulations and Forms Pertaining to 

the Financial Integrity of the 

Marketplace, OMB Control Number 

3038–0024). Although the amendments 

if promulgated in final form would alter 

the method of collection of some of the 

information required in the above 

referenced collection, would provide a 

simpler approach of documenting 

compliance with certain regulatory 

obligations, and would add a 

requirement to include an additional 

statement as part of non-certified 

financial report filings, the estimated 

burden associated with this collection is 

not expected to increase or decrease as 

a result. The Commission is proposing 

to add a requirement for certain 

registrants to include statements of 

income and loss as part of their monthly 

non-certified financial report filings 

with the Commission. Substantially all 

registrants that file financial reports 

with the Commission already are filing 

this data in practice, however. 

Additionally, to the extent a firm did 

not already file this report with the 

Commission monthly, it would, 

nonetheless, need to have this 

information computed and available in 

order to file other currently required 

reports. Filing the information with the 

Commission would require nothing 

more than inputting a few extra data 

items into a form already required to be 

filed. Accordingly, the burden 

associated with such a filing already is 

included in the estimated burden for 

this collection. With respect to proposed 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 52439 

rule amendments that would permit 

certain entities to file electronically 

reports and notices that currently are 

filed in paper form, all such affected 

entities currently must complete these 

same reports and notices. The 

amendments would simply substitute 

electronic submission for the mailing of 

a paper filing. With respect to rule 

amendments concerning the 

documentation required of FCMs and 

IBs that fall below their required net 

capital requirements, these amendments 

would provide registrants with more 

flexibility in choosing the form 

documentation will take when 

providing the Commission with 

required information. The Commission 

believes, however, that the burden 

associated with preparing such 

documentation would be equivalent to 

that required under current regulations. 

Additionally, although the amendments 

allow the Commission to request 

registrants to provide additional 

documentation on request, this is 

simply a clarification of, rather than a 

change to, current regulations and 

practice and would not affect the 

collection burden. Accordingly, for 

purposes of the PRA, the Commission 

certifies that the proposed rule 

amendments, if promulgated in final 

form, would not impact the total annual 

reporting or recordkeeping burden 

associated with the above-referenced 

collection of information, which has 

been approved previously by the Office 

of Management and Budget (‘‘OMB’’). 

Pursuant to the PRA, the Commission 

has submitted a copy of this section to 

OMB for its review. 

The Commission considers comments 

by the public on this proposed 

collection of information in— 

Evaluating whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the Commission, including 

whether the information will have a 

practical use; 

Evaluating the accuracy of the 

Commission’s estimate of the burden of 

the proposed collection of information, 

including the validity of the 

methodology and assumptions used; 

Enhancing the quality, utility, and 

clarity of the information to be 

collected; and 

Minimizing the burden of the 

collection of information on those who 

are to respond, including through the 

use of appropriate automated, 

electronic, mechanical, or other 

technological collection techniques or 

other forms of information technology, 

e.g., permitting electronic submission of 

responses. 

Organizations and individuals 

desiring to submit comments on the 

information collection should contact 

the Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10235, New Executive 

Office Building, Washington, DC 20503, 

Attn: Desk Officer of the Commodity 

Futures Commission. OMB is required 

to make a decision concerning the 

collection of information contained in 

these proposed regulations between 30 

and 90 days after publication of this 

document in the Federal Register. 

Therefore, a comment to OMB is best 

assured of having its full effect if OMB 

receives it within 30 days of 

publication. This does not affect the 

deadline for the public to comment to 

the Commission on the proposed 

regulations. Copies of the information 

collection submission to OMB are 

available from the CFTC Clearance 

Officer, 1155 21st Street, NW., 

Washington, DC 20581 or (202) 418– 

5160. 

C. Cost-Benefit Analysis 

Section 15(a) of the Act, as amended 

by Section 119 of the Commodity 

Futures Modernization 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) as amended 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) 

simply requires the Commission to 

‘‘consider the costs and benefits’’ of its 

action. 

Section 15(a) further specifies that 

costs and benefits shall be evaluated in 

light of five broad areas of market and 

public concern: protection of market 

participants and the public; efficiency, 

competitiveness, and financial integrity 

of futures markets; price discovery; 

sound risk management practices; and 

other public interest considerations. The 

Commission, in its discretion, can 

choose to give greater weight to any one 

of the five enumerated areas and 

determine that, notwithstanding its 

costs, a particular regulation 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 has considered the 

costs and benefits of this proposed 

regulation in light of the specific 

provisions of Section 15(a) of the Act, as 

follows: 

1. Protection of market participants 

and the public. The proposed 

amendments should not affect the 

protection of market participants and 

the public as they generally provide an 

alternate method of delivery of 

information contained in certain reports 

and notice filings currently required or 

permitted by Commission regulations 

but do not substantively alter the 

character of such information. 

2. Efficiency and competition. The 

Commission anticipates that the 

proposed amendments will benefit 

efficiency by permitting the 

Commission and NFA to streamline 

their processes for receiving financial 

reports and various notice filings from 

FCMs and IBs and providing greater 

flexibility to registrants in providing 

certain required documentation to the 

Commission. The proposed 

amendments are considered by the 

Commission as benefiting efficiency and 

not impacting competition. 

3. Financial integrity of futures 

markets and price discovery. The 

proposed amendments should have no 

effect, from the standpoint of imposing 

costs or creating benefits, on the 

financial integrity of futures markets or 

the price discovery function of such 

markets. 

4. Sound risk management practices. 

The proposed amendment should have 

no effect, from the standpoint of 

imposing costs or creating benefits, on 

sound risk management practices. 

5. Other public interest 

considerations. The Commission 

believes that the proposed regulations 

are beneficial in that they should 

encourage improvements to future 

systems of electronic authorization and 

streamline the timeliness of delivery 

and electronic accessibility of notices to 

and by the Commission and NFA as 

well as allow the Commission and NFA 

to retain such reports in a more 

streamlined manner. 

After considering these factors, the 

Commission has determined to propose 

the amendments discussed above. The 

Commission invites public comment on 

its application of the cost-benefit 

provision. Commenters also are invited 

to submit any data that they may have 

quantifying the costs and benefits of the 

proposal with their comment letters. 

List of Subjects in 17 CFR Part 1 

Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements. 

In consideration of the foregoing and 

pursuant to the authority contained in 

the Commodity Exchange Act and, in 

particular, Sections 4f, 4g and 8a(5) 

thereof, 7 U.S.C. 6f, 6g and 12a(5), the 

Commission hereby proposes to amend 

17 CFR part 1 as follows: 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
52440 Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT 

1. The authority citation for Part 1 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 

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

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

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

the Commodity Futures Modernization Act of 

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

Stat. 2763 (2000). 

2. Section 1.10 is amended by 

removing paragraph (b)(2)(iii) and 

revising paragraphs (b)(2)(i), 

(b)(2)(ii)(A), (b)(3), (c)(1) and (c)(2), 

(d)(1)(ii), (d)(4)(iii), and (h) to read as 

follows: 

§ 1.10 Minimum financial requirements for 

futures commission merchants and 

introducing brokers. 

* * * * * 

(b) * * * 

(2)(i) Except as provided in 

paragraphs (b)(3) and (h) of this section, 

and except for an introducing broker 

operating pursuant to a guarantee 

agreement which is not also a securities 

broker or dealer, each person registered 

as an introducing broker must file a 

Form 1–FR–IB semiannually as of the 

middle and the close of each fiscal year. 

Each Form 1–FR–IB must be filed no 

later than 17 business days after the date 

for which the report is made. 

(ii)(A) In addition to the financial 

reports required by paragraph (b)(2)(i) of 

this section, each person registered as 

an introducing broker must file a Form 

1–FR–IB as of the close of its fiscal year 

which must be certified by an 

independent public accountant in 

accordance with § 1.16 no later than 90 

days after the close of each introducing 

broker’s fiscal year: Provided, however, 

that a registrant which is registered with 

the Securities and Exchange 

Commission as a securities broker or 

dealer must file this report not later than 

the time permitted for filing an annual 

audit report under § 240.17a–5(d)(5) of 

this title. 

* * * * * 

(3) The provisions of paragraphs (b)(1) 

and (b)(2) of this section may be met by 

any person registered as a futures 

commission merchant or as an 

introducing broker who is a member of 

a designated self-regulatory organization 

and conforms to minimum financial 

standards and related reporting 

requirements set by such designated 

self-regulatory organization in its 

bylaws, rules, regulations, or resolutions 

and approved by the Commission 

pursuant to Section 4f(b) of the Act and 

§ 1.52: Provided, however, That each 

such registrant shall promptly file with 

the Commission a true and exact copy 

of each financial report which it files 

with such designated self-regulatory 

organization. 

* * * * * 

(c) Where to file reports. (1) Form 

1–FR filed by an introducing broker 

pursuant to paragraph (b)(2) of this 

section need be filed only with, and will 

be considered filed when received by, 

the National Futures Association. Other 

reports or information provided for in 

this section will be considered filed 

when received by the regional office of 

the Commission with jurisdiction over 

the state in which the registrant’s 

principal place of business is located 

and by the designated self-regulatory 

organization, if any; and reports or other 

information required to be filed by this 

section by an applicant for registration 

will be considered filed when received 

by the National Futures Association. 

Any report or information filed with the 

National Futures Association pursuant 

to this paragraph shall be deemed for all 

purposes to be filed with, and to be the 

official record of, the Commission. 

(2)(i) Except as provided in the last 

sentence of this subparagraph, all filings 

or other notices prepared by a futures 

commission merchant pursuant to this 

section may be submitted to the 

Commission in electronic form using a 

form of user authentication assigned in 

accordance with procedures established 

by or approved by the Commission, and 

otherwise in accordance with 

instructions issued by or approved by 

the Commission, if the futures 

commission merchant or a designated 

self-regulatory organization has 

provided the Commission with the 

means necessary to read and to process 

the information contained in such 

report. A Form 1–FR required to be 

certified by an independent public 

accountant in accordance with § 1.16 

which is filed by a futures commission 

merchant must be filed in paper form 

and may not be filed electronically. 

(ii) Except as provided in paragraph 

(h) of this section, all filings or other 

notices or applications prepared by an 

introducing broker or applicant for 

registration as an introducing broker or 

futures commission merchant pursuant 

to this section must be filed 

electronically in accordance with 

electronic filing procedures established 

by the National Futures Association. In 

the case of a Form 1–FR–IB that is 

required to be certified by an 

independent public accountant in 

accordance with § 1.16, a paper copy of 

any such filing with the original 

manually signed certification must be 

maintained by the introducing broker or 

applicant for registration as an 

introducing broker in accordance with 

§ 1.31. 

* * * * * 

(d) * * * 

(1) * * * 

(ii) Statements of income (loss) and a 

statement of changes in ownership 

equity for the period between the date 

of the most recent statement of financial 

condition filed with the Commission 

and the date for which the report is 

made; 

* * * * * 

(4) * * * 

(iii) In the case of a Form 1–FR filed 

via electronic transmission in 

accordance with procedures established 

by or approved by the Commission, 

such transmission must be accompanied 

by the user authentication assigned to 

the authorized signer under such 

procedures, and the use of such user 

authentication will constitute and 

become a substitute for the manual 

signature of the authorized signer for the 

purpose of making the oath or 

affirmation referred to in this paragraph. 

* * * * * 

(h) Filing option available to a futures 

commission merchant or an introducing 

broker that is also a securities broker or 

dealer. Any applicant or registrant 

which is registered with the Securities 

and Exchange Commission as a 

securities broker or dealer may comply 

with the requirements of this section by 

filing (in accordance with paragraphs 

(a), (b), (c), and (j) of this section) a copy 

of its Financial and Operational 

Combined Uniform Single Report under 

the Securities Exchange Act of 1934, 

Part II, Part IIA, or Part II CSE (FOCUS 

Report), in lieu of Form 1–FR; Provided, 

however, That all information which is 

required to be furnished on and 

submitted with Form 1–FR is provided 

with such FOCUS Report; and Provided, 

further, That a certified FOCUS Report 

filed by an introducing broker or 

applicant for registration as an 

introducing broker in lieu of a certified 

Form 1–FR–IB must be filed according 

to National Futures Association rules, 

either in paper form or electronically, in 

accordance with procedures established 

by the National Futures Association, 

and if filed electronically, a paper copy 

of such filing with the original manually 

signed certification must be maintained 

by such introducing broker or applicant 

in accordance with § 1.31. 

* * * * * 

3. Section 1.12 is amended by: 

a. Revising paragraphs (a)(2) and 

(i)(1); 

b. Removing paragraph (a)(3); and 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS
Federal Register / Vol. 74, No. 196 / Tuesday, October 13, 2009 / Proposed Rules 52441 

c. Adding paragraph (i)(3). 

The revisions and addition read as 

follows: 

§ 1.12 Maintenance of minimum financial 

requirements by futures commission 

merchants and introducing brokers. 

(a) * * * 

(2) Provide together with such notice 

documentation in such form as 

necessary to adequately reflect the 

applicant’s or registrant’s capital 

condition as of any date such person’s 

adjusted net capital is less than the 

minimum required. The applicant or 

registrant must provide similar 

documentation for other days as the 

Commission may request. 

* * * * * 

(i)(1) Every notice and written report 

required to be given or filed by this 

section (except for notices required by 

paragraph (f) of this section) by a futures 

commission merchant or a selfregulatory organization must be filed 

with the regional office of the 

Commission with jurisdiction over the 

state in which the registrant’s principal 

place of business is located, with the 

principal office of the Commission in 

Washington, DC, with the designated 

self-regulatory organization, if any, and 

with the Securities and Exchange 

Commission, if such registrant is a 

securities broker or dealer. Every notice 

and written report required to be given 

or filed by this section by an applicant 

for registration as a futures commission 

merchant must be filed with the 

National Futures Association (on behalf 

of the Commission), with the designated 

self-regulatory organization, if any, and 

with the Securities and Exchange 

Commission, if such applicant is a 

securities broker or dealer. Any notice 

or report filed with the National Futures 

Association pursuant to this paragraph 

shall be deemed for all purposes to be 

filed with, and to be the official record 

of, the Commission. 

* * * * * 

(3) Every notice or report required to 

be provided in writing to the 

Commission under this section may, in 

lieu of facsimile, be filed via electronic 

transmission using a form of user 

authentication assigned in accordance 

with procedures established by or 

approved by the Commission, and 

otherwise in accordance with 

instructions issued by or approved by 

the Commission. Any such electronic 

submission must clearly indicate the 

registrant or applicant on whose behalf 

such filing is made and the use of such 

user authentication in submitting such 

filing will constitute and become a 

substitute for the manual signature of 

the authorized signer. 

* * * * * 

Issued in Washington, DC on October 6, 

2009 by the Commission. 

David A. Stawick, 

Secretary of the Commission. 

[FR Doc. E9–24480 Filed 10–9–09; 8:45 am] 

BILLING CODE P 

ENVIRONMENTAL PROTECTION 

AGENCY 

40 CFR Part 52 

[EPA–R09–OAR–2009–0620; FRL–8957–1] 

Revisions to the California State 

Implementation Plan, San Diego Air 

Pollution Control District 

AGENCY: Environmental Protection 

Agency (EPA). 

ACTION: Proposed rule. 

SUMMARY: EPA is proposing to approve 

revisions to the San Diego Air Pollution 

Control District portion of the California 

State Implementation Plan (SIP). These 

revisions concern volatile organic 

compound (VOC) emissions from cold 

solvent cleaning and vapor degreasing 

operations. We are proposing to approve 

two local rules to regulate these 

emission sources under the Clean Air 

Act as amended in 1990 (CAA or the 

Act). 

DATES: Any comments on this proposal 

must arrive by November 12, 2009. 

ADDRESSES: Submit comments, 

identified by docket number EPA–R09– 

OAR–2009–0620, by one of the 

following methods: 

1. Federal eRulemaking Portal: http://

www.regulations.gov. Follow the on-line 

instructions. 

2. E-mail: steckel.andrew@epa.gov. 

3. Mail or deliver: Andrew Steckel 

(Air-4), U.S. Environmental Protection 

Agency Region IX, 75 Hawthorne Street, 

San Francisco, CA 94105–3901. 

Instructions: All comments will be 

included in the public docket without 

change and may be made available 

online at http://www.regulations.gov, 

including any personal information 

provided, unless the comment includes 

Confidential Business Information (CBI) 

or other information whose disclosure is 

restricted by statute. Information that 

you consider CBI or otherwise protected 

should be clearly identified as such and 

should not be submitted through http://

www.regulations.gov or e-mail. http:// 

www.regulations.gov is an ‘‘anonymous 

access’’ system, and EPA will not know 

your identity or contact information 

unless you provide it in the body of 

your comment. If you send e-mail 

directly to EPA, your e-mail address 

will be automatically captured and 

included as part of the public comment. 

If EPA cannot read your comment due 

to technical difficulties and cannot 

contact you for clarification, EPA may 

not be able to consider your comment. 

Electronic files should avoid the use of 

special characters, any form of 

encryption, and be free of any defects or 

viruses. 

Docket: The index to the docket for 

this action is available electronically at 

http://www.regulations.gov and in hard 

copy at EPA Region IX, 75 Hawthorne 

Street, San Francisco, California. While 

all documents in the docket are listed in 

the index, some information may be 

publicly available only at the hard copy 

location (e.g., copyrighted material), and 

some may not be publicly available in 

either location (e.g., CBI). To inspect the 

hard copy materials, please schedule an 

appointment during normal business 

hours with the contact listed in the FOR

FURTHER INFORMATION CONTACT section. 

FOR FURTHER INFORMATION CONTACT: 

Nicole Law, EPA Region IX, (415) 947– 

4126, law.nicole@epa.gov. 

SUPPLEMENTARY INFORMATION: This 

proposal addresses the following local 

rules: SDAPCD Rule 67.6.1 and 

SDAPCD Rule 67.6.2. In the Rules and 

Regulations section of this Federal 

Register, we are approving these local 

rules in a direct final action without 

prior proposal because we believe these 

SIP revisions are not controversial. If we 

receive adverse comments, however, we 

will publish a timely withdrawal of the 

direct final rule and address the 

comments in subsequent action based 

on this proposed rule. Please note that 

if we receive adverse comment on an 

amendment, paragraph, or section of 

this rule and if that provision may be 

severed from the remainder of the rule, 

we may adopt as final those provisions 

of the rule that are not the subject of an 

adverse comment. 

We do not plan to open a second 

comment period, so anyone interested 

in commenting should do so at this 

time. If we do not receive adverse 

comments, no further activity is 

planned. For further information, please 

see the direct final action. 

Dated: August 21, 2009. 

Laura Yoshii, 

Acting Regional Administrator, Region IX. 

[FR Doc. E9–24454 Filed 10–9–09; 8:45 am] 

BILLING CODE 6560–50–P 


CPrice-Sewell on DSKGBLS3C1PROD with PROPOSALS