2614 Federal Register / Vol. 72, No. 13 / Monday, January 22, 2007 / Rules and Regulations 

1 17 CFR 170.15. The Commission’s regulations 

can be accessed at http://www.access.gpo.gov/nara/ 

cfr/waisidx_06/17cfrvl_06.html. 

2 7 U.S.C. 21(p). The Act can be accessed at 

http://www.access.gpo.gov/uscode/title7/

chapter1_.html. 

3See 7 U.S.C. 5(b). 

4 71 FR 64171. 

5Paragraph (b) of the Regulation, which the 

Commission did not propose to amend, provides an 

exception for persons registered as BDs with the 

Securities and Exchange Commission that are 

notice-registered as FCMs in accordance with 

Commission Regulation 3.10(a)(3). 

Other FAA AD Provisions 

(f) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, Attn: Tom Stafford, 

Aerospace Engineer, 1601 Lind Avenue, SW., 

Renton, Washington 98057–3356, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Before using any AMOC approved 

in accordance with § 39.19 on any airplane 

to which the AMOC applies, notify the 

appropriate principal inspector in the FAA 

Flight Standards Certificate Holding District 

Office. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, under the 

provisions of the Paperwork Reduction Act, 

the Office of Management and Budget (OMB) 

has approved the information collection 

requirements and has assigned OMB Control 

Number 2120–0056. 

(4) Special Flight Permits: We are not 

allowing special flight permits, as described 

in Section 21.197 and Section 21.199 of the 

Federal Aviation Regulations (14 CFR 21.197 

and 21.199). 

Related Information 

(g) Refer to MCAI European Aviation 

Safety Agency emergency airworthiness 

directive 2006–0335–E, dated November 3, 

2006, and Airbus Service Bulletin A310–

57A2088, dated November 6, 2006, for 

related information. 

Material Incorporated by Reference 

(h) You must use Airbus Service Bulletin 

A310–57A2088, excluding Appendix 01, 

dated November 6, 2006, to do the actions 

required by this AD, unless the AD specifies 

otherwise. 

(1) The Director of the Federal Register 

approved the incorporation by reference of 

this service information under 5 U.S.C. 

552(a) and 1 CFR part 51. 

(2) For service information identified in 

this AD, contact Airbus, 1 Rond Point 

Maurice Bellonte, 31707 Blagnac Cedex, 

France. 

(3) You may review copies at the FAA, 

Transport Airplane Directorate, 1601 Lind 

Avenue, SW., Renton, Washington 98057–

3356; or at the National Archives and 

Records Administration (NARA). For 

information on the availability of this 

material at NARA, call 202–741–6030, or go 

to: http://www.archives.gov/federal_register/ 

code_of_federal_regulations/ 

ibr_locations.html. 

Issued in Renton, Washington, on 

December 7, 2006. 

Michael J. Kaszycki, 

Acting Manager, Transport Airplane 

Directorate, Aircraft Certification Service. 

[FR Doc. 07–201 Filed 1–19–07; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 170 

RIN 3038–AC29 

Membership in a Registered Futures 

Association 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) has amended its regulations to 

require that all persons registered with 

the Commission as futures commission 

merchants (‘‘FCMs’’), subject to an 

exception for certain notice-registered 

securities brokers or dealers (‘‘BDs’’), 

must become and remain members of at 

least one registered futures association 

(‘‘RFA’’). This action is consistent with 

the regulatory philosophy underlying 

the Commodity Futures Modernization 

Act of 2000 (‘‘CFMA’’). 

DATES: Effective Date: February 21, 

2007. 

FOR FURTHER INFORMATION CONTACT: 

Helene D. Schroeder, Special Counsel, 

Compliance and Registration Section, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, telephone number: (202) 418–

5450; facsimile number: (202) 418–5528; 

and electronic mail: 

hschroeder@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

A. Commission Regulation 170.15 

Commission Regulation 170.15 1

(‘‘Regulation’’) concerns membership by 

FCMs in an RFA. Section 17(p) of the 

Commodity Exchange Act (‘‘Act’’ or 

‘‘CEA’’) requires each RFA to have a 

comprehensive program to audit the 

financial and sales practices of its 

members and their associated persons.2

Section 17(q) of the Act requires each 

RFA to establish such programs ‘‘as 

soon as practicable but not later than 

September 30, 1985.’’ Currently, the 

National Futures Association (‘‘NFA’’) is 

the sole RFA under Section 17(a) of the 

Act, and it is also a self-regulatory 

organization (‘‘SRO’’). 

In adopting the Regulation, the 

Commission found that comprehensive 

and effective self-regulation and the 

avoidance of duplicative regulation 

would be enhanced by adoption of a 

regulation mandating membership in an 

RFA by each person required to be 

registered as an FCM. The Commission 

also found that the need to maintain 

these extensive programs for the 

comparatively small number of persons 

likely to remain subject solely to the 

Commission’s direct regulation would 

be inefficient and duplicative of the selfregulatory functions for which NFA 

would be responsible. 

B. The Commodity Futures 

Modernization Act of 2000 

In December 2000, the CFMA was 

enacted into law. Among other things, it 

revised the supervisory functions of the 

Commission. Specifically, the CFMA 

transformed the role of the CFTC from 

a front-line regulator, with 

responsibility for direct supervision of 

the commodity futures markets and 

their participants and professionals, to 

an oversight agency.3

C. The Proposal 

In light of the Commission’s new 

oversight role and the policies and 

purposes of the Act, including the goals 

of effective self-regulation and the 

avoidance of duplicative regulation, on 

November 1, 2006, the Commission 

published in the Federal Register a 

proposed revision to the Regulation 

(‘‘Proposal’’).4 The Proposal would 

require that all persons that are 

registered with the Commission as an 

FCM, subject to an exception for 

persons that are notice-registered as 

BDs,5 and regardless of whether any 

such person is required to be registered 

as an FCM, must become and remain a 

member of at least one RFA. As the 

Commission explained in the Federal 

Register release announcing the 

Proposal (‘‘Proposing Release’’), the 

purpose of the Proposal was ‘‘to ensure 

that all FCMs would come under direct 


sroberts on PROD1PC70 with RULES
Federal Register / Vol. 72, No. 13 / Monday, January 22, 2007 / Rules and Regulations 2615 

6 71 FR at 64172. 

7See 5 U.S.C. 553(d). 

8 5 U.S.C. 601 et seq. 

9 47 FR 18618 (Apr. 30, 1982). 

10 Id. at 18619. 

11 7 U.S.C. 19(a). 

12 71 FR at 64172–73. 

supervision of at least one SRO.’’ 6 The 

Commission invites interested persons 

to read the Proposing Release for a fuller 

discussion of the purpose of the 

amendment contained in the Proposal. 

D. The Comments on the Proposal 

The Commission received two 

comment letters on the Proposal. One 

was from NFA, which expressed 

support for the amendment. The other 

was from legal counsel representing 

clients who would be affected by the 

Proposal in the event the Commission 

adopted it. This latter commenter 

requested that, in the event the 

Commission adopted the Proposal, the 

Commission make the amendment 

effective 60 days after publication in the 

Federal Register. The additional 30 

days was requested ‘‘in order to provide 

an orderly time for transition and permit 

sufficient time for registrants affected by 

the proposed amendment to determine 

their future course of action if the 

proposed amendment is approved.’’

In response, the Commission notes 

that, as an agency of the Federal 

Government, in adopting regulations, it 

is subject to the provisions of the 

Administrative Procedure Act. Among 

other things, this means that, in the 

absence of certain specified 

circumstances, the Commission may not 

make a substantive regulation effective 

earlier than 30 days before the 

regulation is published in the Federal 

Register.7 Thus, the Commission 

typically makes its substantive 

regulations effective 30 days after the 

date on which the regulation is 

published in the Federal Register. With 

respect to the instant matter, the 

Commission believes that 30 days is 

sufficient time to achieve compliance 

with the amended regulation, given the 

reasons cited by the commenter. 

Accordingly, the Commission has 

determined to adopt the amendment to 

Regulation 170.15(a) as proposed and to 

make the amendment effective 30 days 

after publication in the Federal 

Register. 

II. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 8

requires that agencies, in issuing 

regulations, consider the impact of those 

regulations on small businesses. The 

amended Regulation would affect 

persons that are registered as FCMs, 

even if they are not required to be so 

registered. The Commission has 

previously 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 Regulatory 

Flexibility Act.9 The Commission 

previously determined that registered 

FCMs are not small entities for the 

purpose of the Regulatory Flexibility 

Act.10

The Commission did not receive any 

public comments relative to its analysis 

of the application of the Regulatory 

Flexibility Act to the Proposal. 

B. Cost-Benefit Analysis 

Section 15(a) of the Act 11 requires the 

Commission to consider the costs and 

benefits of its action before issuing a 

new regulation under the Act. By its 

terms, Section 15(a) does not require the 

Commission to quantify the costs and 

benefits of a new regulation or to 

determine whether the benefits of the 

proposed regulation outweigh its costs. 

Rather, Section 15(a) 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: (1) Protection of market 

participants and the public; (2) 

efficiency, competitiveness, and 

financial integrity of futures markets; (3) 

price discovery; (4) sound risk 

management practices; and (5) other 

public interest considerations. The 

Commission, 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 Proposal contained an analysis of 

the Commission’s consideration of these 

costs and benefits and solicited public 

comment thereon.12 The Commission 

did not receive any public comments 

relative to its cost-benefit analysis of the 

Proposal. 

List of Subjects in 17 CFR Part 170 

Authority delegations (Government 

agencies), Commodity futures, 

Reporting and recordkeeping 

requirements. 

■ For the reasons discussed in the 

preamble, the Commission hereby 

amends Chapter I of Title 17 of the Code 

of Federal Regulations as follows: 

PART 170—REGISTERED FUTURES 

ASSOCIATIONS 

■ 1. The authority citation for part 170 

continues to read as follows: 

Authority: 7 U.S.C. 6p, 12a and 21, as 

amended by the Commodity Futures 

Modernization Act of 2000, Appendix E of 

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

■ 2. Section 170.15 is amended by 

revising paragraph (a) to read as follows: 

§ 170.15 Futures commission merchants. 

(a) Except as provided in paragraph 

(b) of this section, each person 

registered as a futures commission 

merchant must become and remain a 

member of at least one futures 

association that is registered under 

section 17 of the Act and that provides 

for the membership therein of such 

futures commission merchant, unless no 

such futures association is so registered. 

* * * * * 

Issued in Washington, DC, on January 16, 

2007, by the Commission. 

Eileen A. Donovan, 

Acting Secretary of the Commission. 

[FR Doc. E7–805 Filed 1–19–07; 8:45 am] 

BILLING CODE 6351–01–P 

PENSION BENEFIT GUARANTY 

CORPORATION 

29 CFR Part 4011 

RIN 1212–AB12 

Disclosure to Participants 

AGENCY: Pension Benefit Guaranty 

Corporation. 

ACTION: Final rule; technical 

amendment. 

SUMMARY: Section 4011 of ERISA 

requires certain underfunded plans to 

notify participants of plan funding 

status and the limits on the PBGC’s 

guarantee. The Pension Protection Act 

of 2006 repealed section 4011 for plan 

years beginning after 2006 and replaced 

the disclosure requirement under that 

section with a disclosure requirement 

under Title I of ERISA. This rule 

amends PBGC’s regulation on 

Disclosure to Participants to reflect that 

statutory change. 

DATES: Effective Date: January 22, 2007. 

FOR FURTHER INFORMATION CONTACT: John 

H. Hanley, Director, Legislative and 

Regulatory Department; or Catherine B. 

Klion, Manager, Regulatory and Policy 

Division, Legislative and Regulatory 

Department, Pension Benefit Guaranty 

Corporation, 1200 K Street, NW., 

Washington DC 20005–4026; 202–326–


sroberts on PROD1PC70 with RULES