Federal Register / Vol. 71, No. 181 / Tuesday, September 19, 2006 / Proposed Rules 54789 

1 7 U.S.C. 6f(b). 

2The regulations of the Commission cited in this 

release may be found at 17 CFR Ch. I (2006). 

3The Form 1–FR–IB is a financial report that 

includes a statement of financial condition, a 

statement of income or loss, a statement of 

minimum net capital, and appropriate footnote 

disclosures. 

4NFA is a registered futures association under 

Section 17 of the Commodity Exchange Act, 7 

U.S.C. 21, and has been delegated responsibility for 

processing the Commission’s registration function. 

NFA also is a self-regulatory organization, as 

defined in Regulation 1.3(ee). 

Distribution, or Use, 66 FR 28355 (May 

22, 2001) requires preparation and 

submission to OMB of a Statement of 

Energy Effects for significant regulatory 

actions under Executive Order 12866 

that are likely to have a significant 

adverse effect on the supply, 

distribution, or use of energy. A mere 

modification to the replacement fuel 

goal under EPAct 1992 section 502(b)(2) 

does not require fleets, suppliers of 

energy, or distributors of energy to do or 

to refrain from doing anything. 

Consequently, DOE has concluded there 

is no need for a Statement of Energy 

Effects. 

IX. Approval by the Office of the 

Secretary 

The issuance of the proposed rule for 

the replacement fuel goal modification 

has been approved by the Office of the 

Secretary. 

Issued in Washington, DC, on September 6, 

2006. 

Alexander A. Karsner, 

Assistant Secretary, Energy Efficiency and 

Renewable Energy. 

List of Subjects in 10 CFR Part 490 

Administrative practice and 

procedure, Energy conservation, Fuel 

economy, Gasoline, Motor vehicles, 

Natural gas, Penalties, Petroleum, 

Reporting and recordkeeping 

requirements. 

For the reasons set forth in the 

preamble, the Department of Energy is 

proposing to amend Chapter II of title 10 

of the Code of Federal Regulations as set 

forth below: 

PART 490—ALTERNATIVE FUEL 

TRANSPORTATION PROGRAM 

1. The authority citation for part 490 

is revised to read as follows: 

Authority: 42 U.S.C. 7191 et seq.; 42 U.S.C. 

13201, 13211, 13220, 13251 et seq. 

2. In § 490.1 of subpart A, paragraph 

(b) is revised to read as follows: 

§ 490.1 Purpose and Scope. 

* * * * * 

(b) The provisions of this subpart 

cover: 

(1) The definitions applicable 

throughout this part; 

(2) Procedures to obtain an 

interpretive ruling and to petition for a 

generally applicable rule to amend this 

part; and 

(3) The goal of the replacement fuel 

supply and demand program 

established under section 502(a) of the 

Act (42 U.S.C. 13252(a)). 

3. Subpart A is amended by adding 

§ 490.8 to read as follows: 

§ 490.8 Replacement fuel production goal. 

The goal of the replacement fuel 

supply and demand program 

established by section 502(b)(2) of the 

Act (42 U.S.C. 13252(b)(2)) and revised 

by DOE pursuant to section 504(b) of the 

Act (42 U.S.C. 13254(b)) is to achieve a 

production capacity of replacement 

fuels sufficient to replace, on an energy 

equivalent basis, at least 30 percent of 

motor fuel consumption in the United 

States by the year 2030. 

[FR Doc. E6–15516 Filed 9–18–06; 8:45 am] 

BILLING CODE 6450–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 1 

RIN 3038–AC34 

Financial Reporting Requirements for 

Introducing Brokers 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rules. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing to amend 

Commission regulations to require 

introducing brokers (‘‘IBs’’) submitting 

CFTC financial Forms 1–FR–IB that are 

certified by independent public 

accountants to file such financial 

reports electronically with the National 

Futures Association (‘‘NFA’’). The 

proposed amendments also would 

require that certified Financial and 

Operational Combined Uniform Single 

Reports (‘‘FOCUS’’ Reports), submitted 

by IBs registered with the Securities and 

Exchange Commission (‘‘SEC’’) as 

securities brokers or dealers (‘‘B/Ds’’) in 

lieu of Form 1–FR–IB, be filed either 

electronically or in paper form in 

accordance with the rules of the NFA. 

The CFTC also is proposing to amend 

Commission regulations to require that 

with respect to any such electronic 

filing, a paper copy including the 

original signed certification be 

maintained by the IB in its records for 

a period of five years in accordance with 

Commission Regulation 1.31. 

DATES: Comments must be received on 

or before October 19, 2006. 

ADDRESSES: You may submit comments, 

identified by 3038–AC34, by any of the 

following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

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

‘‘Proposed Amendments to Rules 1.10 

and 1.31’’ in the subject line of the 

message. 

• Fax: (202) 418–5521. 

• Mail: Send to Eileen Donovan, 

Acting Secretary of the Commission, 

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: 

Thomas J. Smith, Deputy Director and 

Chief Accountant, at (202) 418–5430 or 

Jennifer C.P. Bauer, Special Counsel, at 

(202) 418–5472, Division of Clearing 

and Intermediary Oversight, Commodity 

Futures Trading Commission, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. Electronic mail: 

(tsmith@cftc.gov) or (jbauer@cftc.gov). 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 4f(b) of the Commodity 

Exchange Act (‘‘Act’’) authorizes the 

Commission to adopt regulations 

imposing minimum financial 

requirements on IBs.1 Commission 

Regulation 1.10(a)(2)(ii)(A) 2 requires 

each person filing an application for 

registration as an IB to file a financial 

Form 1–FR–IB3 certified by an 

independent public accountant 

concurrently with the application. IBs 

that also are registered with the SEC as 

a B/D may file a FOCUS Report in lieu 

of a Form 1–FR–IB. The application for 

registration, and the certified Form 1–

FR–IB or FOCUS Report, must be filed 

with the National Futures Association 

(‘‘NFA’’) in paper form.4

Regulation 1.10(b)(2)(ii)(A) requires 

each registered IB to annually file a 

certified Form 1–FR–IB as of the close 

of the IB’s fiscal year with NFA. IBs that 

are registered with the SEC as B/Ds may 

file an annual FOCUS Report with NFA 

in lieu of the Form 1–FR–IB. Regulation 

1.10(b)(2)(iii) requires that certified 

Forms 1–FR–IB, or FOCUS Reports, 

must be filed in paper form with NFA 

and may not be filed electronically. 

Regulation 1.10(d)(4) requires that 


ycherry on PROD1PC64 with PROPOSALS-1
54790 Federal Register / Vol. 71, No. 181 / Tuesday, September 19, 2006 / Proposed Rules 

5By letter dated June 1, 2004, NFA submitted to 

the Commission for its review and approval, 

pursuant to Section 17(j) of the Act (7 U.S.C. 21(j)), 

amendments to Section 5 of NFA Financial 

Requirements, regarding IB financial requirements, 

which amendments were approved by the 

Commission on an expedited basis and were 

effective June 30, 2004. 

6The firm’s security manager can establish users 

and assign them abilities to enter data and/or 

submit the report in the NFA EasyFile system. This 

‘‘Security Manager’’ procedure is part of NFA’s 

existing electronic system for registration 

processing. 

7 71 FR 8939 (Feb. 22, 2006). 

Forms 1–FR–IB, or FOCUS reports filed 

in lieu thereof, be accompanied by an 

oath or affirmation from specified 

persons that the information in the 

filing is true and correct. 

The Commission previously has 

approved rules submitted by NFA that 

require IBs to submit uncertified Forms 

1–FR–IB, or FOCUS Reports, 

electronically using the NFA EasyFile 

electronic filing system.5 NFA 

implemented electronic filing of the 

uncertified Form 1–FR for IBs beginning 

in 2002 by providing them with the 

WinJammer software utilized by other 

self-regulatory organizations and the 

Commission for the Forms 1–FR and 

FOCUS Reports filed electronically by 

futures commission merchants 

(‘‘FCMs’’). The EasyFile system was 

developed by NFA as a Web-based 

alternative to WinJammer using the 

same security procedure available under 

NFA’s On-line Registration System, or 

ORS.6

Based partly on the successful 

implementation of EasyFile for 

uncertified filings on Form 1–FR–IB, 

NFA petitioned the Commission for rule 

amendments in 2005 to enable NFA to 

implement mandatory electronic filing 

of commodity pool certified annual 

reports using the same Web-based 

structure as the EasyFile system, which 

amendments were adopted by the 

Commission and became effective in 

March 2006.7 As a result of these 

amendments and NFA’s rules, currently 

all certified commodity pool annual 

reports must be received by NFA in 

electronic files in Portable Document 

Format (‘‘.pdf format’’). 

NFA’s current petition to amend 

Commission regulations would permit 

NFA to expand the EasyFile electronic 

1–FR–IB submissions of IBs to include 

the mandatory filing of certified Form 

1–FR–IBs through an electronic file in 

the same .pdf format. However, NFA has 

not requested the amendment of 

regulations to require mandatory 

electronic filing of certified FOCUS 

Reports from IBs that are SEC registered 

B/Ds as NFA currently does not have 

the systems capability through 

WinJammer to accept .pdf files. 

However, as NFA has indicated that it 

will develop a mechanism to receive 

certified FOCUS Reports from IBs 

electronically in the future, the 

amendments proposed herein provide 

that such reports are required to be 

submitted in accordance with NFA 

rules, either electronically in .pdf format 

or in paper form. 

NFA’s electronic filing system for 

certified financial statements from IBs 

would require the IB to submit a PDF 

file version of the entire certified 

statement, including the financial 

information, footnotes, auditors’

statement, and any necessary 

reconciliation of the IB’s certified 

financial statement and most recent 

unaudited 1–FR. Because the IB would 

have already entered the detailed figures 

from the unaudited Form 1–FR–IB into 

the system, the IB would not have to 

enter the figures from the certified 

statement unless that statement includes 

a reconciliation. If it does not include a 

reconciliation, the system would carry 

over the figures from the uncertified 

statement for NFA staff’s use in 

analyzing the certified statement. When 

the IB submits the electronic filing, 

NFA’s system prompts the submitter to 

read and to indicate agreement to an 

electronic oath or affirmation. The 

submitter will have already securely 

accessed NFA’s system through the 

input of a personal identification 

number (PIN). This oath or affirmation 

is made with respect to the PDF file of 

the annual report and any information 

entered into the system from the 

certified statement, and is patterned 

after NFA’s existing EasyFile system for 

IBs’ unaudited financial reports. The 

IB’s Security Manager can establish 

users and assign them abilities to enter 

data and/or submit the report and data 

in the NFA electronic filing system. 

However, only persons duly authorized 

to bind the IB in accordance with Rule 

1.10(d)(4) may submit the data by 

entering a PIN and making the required 

oath or affirmation. The IB is 

responsible for ensuring that only 

persons who are duly authorized to bind 

the IB, in accordance with Rule 

1.10(d)(4), are granted the ability to 

submit the IB’s financial information to 

the NFA. The electronic version of the 

oath or affirmation will appear in dialog 

boxes when reports or data are 

submitted, and completion of the 

submission will require an affirmative 

acceptance of the oath or affirmation by 

a user who has accessed the system with 

a secure PIN number and has been 

granted permission to submit the IB’s 

financial information. 

II. Proposed Amendments 

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

a Form 1–FR certified by an 

independent public accountant which is 

filed by an FCM, IB or applicant for 

registration as an FCM or IB, must be 

filed in paper form and may not be filed 

electronically. The Commission is 

proposing to amend Regulation 

1.10(b)(2)(iii) to provide that a certified 

Form 1–FR required from an IB, or 

applicant for IB registration, must be 

filed electronically with NFA through 

compliance with NFA’s electronic filing 

procedures, and that a paper copy with 

the original, manually signed 

certification must be maintained by the 

IB in accordance with Regulation 1.31. 

The Commission is also proposing to 

amend Regulation 1.10(d)(4)(2)(ii), by 

revising the second sentence and 

redesignating the revised sentence as 

Regulation 1.10(d)(4)(2)(iii). As 

proposed, Regulation 1.10(d)(4)(2)(iii) 

would confirm that in the case of a 

Form 1–FR–IB filed via electronic 

transmission in accordance with NFA 

procedures approved by the 

Commission, such transmission must be 

accompanied by the personal 

identification number assigned under 

NFA procedures to the authorized 

signer, and such personal identification 

number will constitute and become a 

substitute for the manual signature of 

the authorized signer for the purpose of 

making the required oath or affirmation. 

In addition, the Commission is 

proposing to amend Regulation 1.10(h), 

to provide that an IB that is permitted 

to file a copy of its certified FOCUS 

Report in lieu of Form 1–FR, file such 

report either in paper form, or through 

compliance with NFA’s electronic filing 

procedures, according to the rules of 

NFA. The proposed amendment to 

Regulation 1.10(h) also will require that 

a paper copy with the original, 

manually signed certification be 

maintained by the IB in accordance with 

Regulation 1.31 for any IB FOCUS 

Report electronically filed with NFA. 

Lastly, the Commission is proposing to 

amend Regulation 1.31(d) to provide 

that paper copies of electronically filed 

certified Forms 1–FR or FOCUS Reports 

must be retained by the IB in hard copy 

with the original manually signed 

certification. The Commission hereby 

requests comment on the foregoing 

amendments proposed to implement 

electronic filing of certified annual 

reports on Form 1–FR–IB with NFA, 

and to permit electronic filing by IBs of 

certified FOCUS reports as NFA may in 

the future require. 


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Federal Register / Vol. 71, No. 181 / Tuesday, September 19, 2006 / Proposed Rules 54791 

8 47 FR 18618 (April 30, 1982). 

9 44 U.S.C. 3507(d). 

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 Commission 

previously has established certain 

definitions of ‘‘small entities’’ to be used 

by the Commission in evaluating the 

impact of its regulations on such entities 

in accordance with the RFA.8 The 

proposed rule amendments will not 

place any additional burdens upon 

introducing brokers that are small 

businesses since all such parties are 

already subject to the financial reporting 

requirements under Regulation 1.10 and 

already comply with the electronic 

filing of uncertified reports through 

NFA’s electronic filing system. 

Accordingly, the Chairman, on behalf of 

the Commission, hereby certifies, 

pursuant to 5 U.S.C. 605(b) that the 

action proposed to be taken herein 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’’) 9 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 proposed rule amendments do not 

require a new collection of information 

on the part of any entities subject to the 

proposed rule amendments. The 

amendments being proposed would, if 

promulgated in final form, alter the 

method of collection of some of the 

information required for certain 

introducing brokers under Regulation 

1.10. 

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 abovereferenced collection, the estimated 

burden associated with the collection is 

not expected to increase or decrease as 

a result. All such affected entities 

already must comply with and use 

NFA’s electronic filing system, and the 

amendment would simply substitute 

electronic submission for the mailing of 

a paper filing. The paper filing would 

thereafter be required to be retained, but 

the retention of one certified financial 

report per year is not expected to 

increase the estimated recordkeeping 

burden under the collection. 

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 OMB. Pursuant to the 

PRA, the Commission has submitted a 

copy of this section to the Office of 

Management and Budget (‘‘OMB’’) for 

its review. 

Copies of the information collection 

submission to OMB are available from 

the CFTC Clearance Officer, 1155 21st 

Street, NW., Washington, DC 20581 

(202) 418–5160. 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 60 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. 

C. Cost-Benefit Analysis 

Section 15(a) of the Act, as amended 

by Section 119 of the CFMA, 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 Regulation outweigh its 

costs. Rather, Section 15(a) simply 

requires the Commission to ‘‘consider 

the costs and benefits’’ of its action. 

Section 15(a) of the Act 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. Accordingly, the 

Commission could in its discretion give 

greater weight to any one of the five 

enumerated areas and could in its 

discretion determine that, 

notwithstanding its costs, a particular 

regulation was 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 proposed amendments to 

Regulation 1.10 and 1.31 would require 

IBs to electronically file certified Form 

1–FR with NFA and would required IBs 

which file FOCUS Reports in lieu of 

Form 1–FR to file in paper form or 

electronically in accordance with the 

instruction of NFA, with any 

electronically filed certified reports 

required to be maintained by the IB in 

hard copy paper form with the original 

manually signed certification. 

The Commission is considering 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 

amendment should not affect the 

protection of market participants and 

the public as it provides an alternate 

method of delivery of information 

contained in certified annual reports of 

IBs but does not substantively alter the 

character of such information available 

to the Commission and NFA. 

2. Efficiency and competition. The 

Commission anticipates that the 

proposed amendment will benefit 

efficiency by permitting NFA to 

streamline its process for receiving 

certified financial reports from IBs. The 

proposed amendment is considered by 


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54792 Federal Register / Vol. 71, No. 181 / Tuesday, September 19, 2006 / Proposed Rules 

the Commission as benefiting efficiency 

and not impacting competition. 

3. Financial integrity of futures 

markets and price discovery. The 

proposed amendment 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 regulation 

requiring electronic filing for the 

submission by IBs of certified Forms 1–

FR, and the requirement that IBs filing 

certified FOCUS Reports comply with 

NFA instructions as to filing in paper 

form or electronically, is beneficial in 

that it should streamline the timeliness 

of delivery and electronic accessibility 

of such reports, and permit NFA to 

retain such reports in a more 

streamlined and accessible 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. 

Accordingly, 17 CFR part 1 is 

proposed to be amended as follows: 

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT 

1. The authority citation for part 1 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 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 proposed to be 

amended by: 

a. Revising paragraph (b)(2)(iii); 

b. Revising paragraph (d)(4)(ii); 

c. Adding paragraph (d)(4)(iii); and 

d. Revising paragraph (h), to read as 

follows: 

§ 1.10 Financial reports of futures 

commission merchants and introducing 

brokers. 

* * * * * 

(b) * * * 

(2) * * * 

(iii) 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 or applicant for registration as 

a futures commission merchant must be 

filed in paper form and may not be filed 

electronically. A Form 1–FR required to 

be certified by an independent public 

accountant in accordance with § 1.16 

which is filed by an introducing broker 

or applicant for registration as an 

introducing broker must be filed 

electronically in accordance with NFA’s 

electronic filing procedures, and 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. 

* * * * * 

(d) * * * 

(4) * * * 

(ii) If the registrant or applicant is 

registered with the Securities and 

Exchange Commission as a securities 

broker or dealer, the representative 

authorized under § 240.17a–5 of this 

title to file for the securities broker or 

dealer its Financial and Operational 

Combined Uniform Single Report under 

the Securities Exchange Act of 1934, 

Part II, Part IIA, or Part II CSE. 

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

via electronic transmission in 

accordance with procedures established 

or approved by the Commission, such 

transmission must be accompanied by 

the Personal Identification Number 

assigned under such procedures to the 

authorized signer, and such Personal 

Identification Number 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 NFA rules, either in paper form or 

electronically in accordance with NFA 

electronic filing procedures, 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 1.31 is proposed to be 

amended by revising paragraph (d) to 

read as follows: 

§ 1.31 Books and records; keeping and 

inspection. 

* * * * * 

(d) Trading cards, documents on 

which trade information is originally 

recorded in writing, written orders 

required to be kept pursuant to § 1.35(a), 

(a–1)(1), (a–1)(2) and (d), and paper 

copies of electronically filed certified 

Forms 1–FR and FOCUS Reports with 

the original manually signed 

certification must be retained in hardcopy for the required time period. 

* * * * * 

Issued in Washington, DC, on September 

13, 2006 by the Commission. 

Eileen Donovan, 

Acting Secretary of the Commission. 

[FR Doc. 06–7739 Filed 9–18–06; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[USCG–2006–25767; Formerly CGD09–06–

123] 

Safety Zones; U.S. Coast Guard Water 

Training Areas, Great Lakes 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of public meetings. 

SUMMARY: The Coast Guard will meet to 

discuss issues relating to the proposed 

permanent safety zones located in the 

Great Lakes to conduct live gunnery 

training exercises. The meetings will be 

open to the public. 

DATES: The Coast Guard will hold four 

public meetings as follows: Monday, 

October 16, 2006 in Duluth MN; 

Wednesday October 18, in Grand 


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