Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations 42397

Document No. Pages Revision Date

72–588 ............................................................................... 1–12 ....... Original ........ February 17, 1997.

38 ........... Original ........ February 17, 1997.

NDIP–899 ........................................................................... 1–23 ....... Original ........ February 16, 1997.

Total pages: 36

ASB No. PW2000

A72–592 ............................................................................. 1–16 ....... Original ........ March 18, 1997.

Total pages: 16

This incorporation by reference was

approved by the Director of the Federal

Register in accordance with 5 U.S.C.

552(a) and 1 CFR part 51. Copies may

be obtained from Pratt & Whitney, 400

Main St., East Hartford, CT 06108;

telephone (860) 565–6600, fax (860)

565–4503. Copies may be inspected at

the FAA, New England Region, Office of

the Assistant Chief Counsel, 12 New

England Executive Park, Burlington,

MA; or at the Office of the Federal

Register, 800 North Capitol Street, NW.,

suite 700, Washington, DC.

(o) This amendment becomes effective

on August 7, 1997.

Issued in Burlington, Massachusetts, on

July 25, 1997.

Jay J. Pardee,

Manager, Engine and Propeller Directorate,

Aircraft Certification Service.

[FR Doc. 97–20784 Filed 8–6–97; 8:45 am]

BILLING CODE 4910–13–M

CONSUMER PRODUCT SAFETY

COMMISSION

16 CFR Part 1033

Display of Control Numbers for

Collections of Information Under the

Paperwork Reduction Act

AGENCY: Consumer Product Safety

Commission.

ACTION: Final rule.

SUMMARY: The Paperwork Reduction Act

of 1995 requires the Commission to

display the control numbers assigned by

the Office of Management and Budget to

standards and regulations containing

‘‘collections of information.’’ As used in

the Paperwork Reduction Act, a

‘‘collection of information’’ includes

any requirement for recordkeeping,

reporting, or providing information to

the public. The Commission is

amending Part 1033 to include the

control numbers for all currently

approved collections of information in

standards and regulations enforced by

the Commission.

DATES: This amendment shall become

effective on August 7, 1997.

FOR FURTHER INFORMATION CONTACT:

Allen F. Brauninger, Attorney, Office of

the General Counsel, Consumer Product

Safety Commission, Washington, DC

20207; telephone (301) 504–0980,

extension 2216.

SUPPLEMENTARY INFORMATION: The

Consumer Product Safety Commission

enforces many standards and

regulations that require manufacturers

and importers to compile and maintain

records, to report information to the

Commission, or to make information

available to the public. These

requirements are ‘‘collections of

information’’ as that term is used in the

Paperwork Reduction Act of 1995 (PRA)

at 44 U.S.C. 3502(3).

The PRA requires the Commission to

obtain approval from the Office of

Management and Budget (OMB) of all

collections of information and to

display the control number assigned by

OMB for each collection of information.

See 44 U.S.C. 3506.

In 1983, the Commission issued Part

1033 to display the control numbers

assigned by OMB for each regulation

enforced by the Commission containing

a collection of information. Since 1983,

the Commission has issued several

standards and regulations containing

collections of information that have

been approved by OMB. For this reason,

the Commission is amending Part 1033

to list all regulations containing

collections of information currently

approved by OMB and the control

numbers for those regulations.

The amendment issued below is a

rule of agency organization, procedure,

or practice, and for that reason is not

subject to provisions of the

Administrative Procedure Act (APA), 5

U.S.C. 553(b) and (c), requiring

publication of a notice of proposed

rulemaking and opportunity for public

comment. This amendment is not a

substantive rule, and for that reason the

requirements of section 553(d) of the

APA, 5 U.S.C. 553(d), for a delayed

effective date of at least 30 days are not

applicable. Consequently, this

amendment shall become effective on

the date of publication in the Federal

Register.

List of Subjects in 16 CFR Part 1033

Reporting and recordkeeping

requirements.

Conclusion

Therefore, pursuant to the authority of

section 3506(c)(1) of the Paperwork

Reduction Act of 1995, 44 U.S.C.

3506(c)(1) the Commission hereby

amends title 16 of the Code of Federal

Regulations, Chapter II, Subchapter A,

Part 1033 to read as follows:

PART 1033—DISPLAY OF CONTROL

NUMBERS FOR COLLECTION OF

INFORMATION REQUIREMENTS

UNDER THE PAPERWORK

REDUCTION ACT

1. The authority for part 1033 is

revised to read as follows:

Authority: 44 U.S.C. 3506(c)(1); 5 U.S.C.

553.

2. Section 1033.2 is revised to read as

follows:

§ 1033.2 Display of control numbers.

The following rules enforced by the

Consumer Product Safety Commission

containing collections of information

are listed with the control numbers

assigned by the Office of Management

and Budget:

Part or section of title 16 Code

of Federal Regulations

Currently

assigned

OMB control No.

Part 1019 .................................. 3041–0003

Part 1204 .................................. 3041–0006

Part 1509 .................................. 3041–0012

Part 1508 .................................. 3041–0013

Part 1632 .................................. 3041–0014

Part 1210 .................................. 3041–0016

Part 1630, 1631 ........................ 3041–0017

Sections 1500.18(a)(6),

1500.86(a)(4) ......................... 3041–0019

Part 1209 .................................. 3041–0022

Parts 1610, 1611 ...................... 3041–0024

Parts 1615, 1616 ...................... 3041–0027

Part 1505 .................................. 3041–0035

Part 1406 .................................. 3041–0040

Part 1205 .................................. 3041–0091

Part 1211 .................................. 3041–0125
42398 Federal Register / Vol. 62, No. 152 / Thursday, August 7, 1997 / Rules and Regulations

1See 62 FR 13564 (March 21, 1997).

2 JAC is comprised of representatives from each

commodity exchange and National Futures

Association which coordinate the industry’s audit

and ongoing surveillance activities to promote a

uniform framework of self-regulation.

(44 U.S.C. 3506(c)(1); 5 U.S.C. 553)

Dated: August 1, 1997.

Sadye E. Dunn,

Secretary, Consumer Product Safety

Commission.

[FR Doc. 97–20725 Filed 8–6–97; 8:45 am]

BILLING CODE 6355–01–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 1

Securities Representing Investment of

Customer Funds Held in Segregated

Accounts by Futures Commission

Merchants

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final Rules.

SUMMARY: The Commodity Futures

Trading Commission (’’Commission’’) is

amending Rules 1.23 and 1.25 to allow

futures commission merchants

(‘‘FCMs’’) to make direct transfers into

segregated accounts of permissible,

unencumbered securities of the types

set forth in Section 4d(2) of the

Commodity Exchange Act (‘‘Act’’) and

Rule 1.25 promulgated thereunder. This

will provide FCMs a more efficient

means to increase or decrease their

residual interest in funds segregated for

the benefit of commodity customers

than heretofore permitted. In addition,

the revised rules will permit FCMs to

deposit the proceeds from the sale or

maturity of any such investments

directly into a nonsegregated bank

account, provided that the FCM

maintains a sufficient residual financial

interest in the funds segregated for

commodity customers to assure that all

of an FCM’s obligations to its customers

are covered. The Commission’s

expectation is that these rule changes

will reduce the number of transactions

required to manage an FCM’s segregated

cash and securities balances, thus

reducing operating costs for the

industry. To assure that there will be a

clear audit trail for the increased types

of permitted transactions, Rule 1.27 also

is being amended to require that the

description of the investment securities,

required by the rule, includes the

security identification number

developed by the Committee on

Uniform Security Identification

Procedures (‘‘CUSIP Number’’). Also,

Rule 1.25 is being amended to require

identification, in the record of

investments required to be maintained

by Rule 1.27, of the manner in which

the proceeds from the sale or maturity

of any segregated securities are disposed

of.

EFFECTIVE DATE: September 8, 1997.

FOR FURTHER INFORMATION CONTACT: Paul

H. Bjarnason, Jr., Chief Accountant, or

Lawrence B. Patent, Associate Chief

Counsel, Division of Trading and

Markets (‘‘Division’’), Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street, N.W.,

Washington, D.C. 20581. Telephone

(202) 418–5430.

SUPPLEMENTARY INFORMATION:

I. Investment of Customers’ Segregated

Funds

At all times, an FCM is required to

have sufficient funds in segregation to

meet its obligations to customers. As a

consequence, to protect against a

customer account going into deficit, an

FCM must deposit funds of its own to

cover any customer account deficits,

and such funds must remain in

segregation until more funds are

remitted to the FCM by the customers

who hold such deficit accounts. Thus,

maintaining an adequate cushion of its

own in segregation is a part of routine

FCM funds management operations.

FCM operational funding needs often

dictate that any unneeded excess funds

in segregation be moved so that they can

be used in other aspects of the firm’s

operations. Therefore, prudent and

efficient funds management typically

requires an FCM to make frequent

transfers of funds into and out of

segregation.

Prior to these rule changes, FCMs

were only allowed to increase or

decrease their interest in customers’

segregated funds by direct transfers of

cash. That is, securities owned by the

FCM and held in a non-segregated

account could not be transferred to a

segregated account. Moreover, to assure

an audit trail, if an FCM wished to move

funds represented by securities into

segregation, the securities had to be sold

and the cash proceeds transferred into a

segregated account. The FCM could,

then, use the segregated cash to

purchase more securities that would be

held in segregation. The effect of these

requirements was that any segregated

securities, except for securities

purchased and specifically owned and

deposited by individual customers,

always had to be purchased with cash

from a segregated cash account.

Likewise, the proceeds from any sale of

segregated securities always had to be

deposited into a segregated account,

even if there was no longer a need for

the funds to be in segregation. That is,

such funds could only be moved to a

non-segregated account after the

securities were converted to cash and

the cash had been deposited into a

segregated account.

On March 21, 1997, the Commission

published for comment proposed

amendments to Rules 1.23, 1.25, and

1.27.1 The proposed changes would

permit FCMs to transfer their own

unencumbered securities from a nonsegregated account directly into a

customer segregated safekeeping

account. This would enable an FCM to

increase the amount of funds segregated

for the benefit of commodity customers

more quickly and economically. To be

eligible for direct transfer, such

securities were required to be

unencumbered and to qualify as

permitted investments of customer

funds under Rule 1.25. The proposed

rule amendments also would permit an

FCM to transfer such securities from a

segregated customer safekeeping

account directly to the FCM’s own nonsegregated account, to the extent the

FCM had excess funds available in

segregation. The 30-day public comment

period on the proposed rule changes

expired on April 21, 1997. The

Commission received one written

comment letter on this proposal from

the Joint Audit Committee (‘‘JAC’’).2

The JAC raised two issues.

First, JAC suggested that Rule 1.25 be

amended by removing the requirement

contained in the rule that the proceeds

from any sale of segregated securities be

redeposited into a segregated account.

JAC indicated that by eliminating this

restriction, FCMs would be able to sell

segregated securities directly out of the

segregated account and deposit the

funds to a non-segregated account.

Since it was the Commission’s aim to

permit cash and securities to be treated

the same way, thus reducing the number

of transactions required to administer

segregated funds and reduce transaction

costs, the Commission agrees with this

suggestion. Therefore, to adopt the JAC’s

suggestion, Rule 1.25 is further

amended in two respects: 1) the

requirement to deposit the proceeds

from the sale of segregated securities to

a segregated account is eliminated; and

2) a requirement to identify, in the

record of investments required to be

maintained by Rule 1.27, the manner in

which the proceeds from the sale or

maturity of any segregated securities are

disposed of, is added to the rule. That

is, if proceeds are not redeposited in a

segregated account, the record must