6112 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations

1A reportable position is any open position held

or controlled by a trader at the close of business in

any one futures contract of a commodity traded on

any one contract market that is equal to or in excess

of the quantities fixed by the Commission in § 15.03

of the regulations, 17 CFR § 15.03 (1996).

SUPPLEMENTARY INFORMATION: On

December 13, 1996, FSIS published

‘‘Fee Increase for Inspection Services’’

(61 FR 65459). Although the preamble

discussion of the fee changes was

correct, the regulatory amendments

were incorrect. The regulation continues

to list the old fees. This notice corrects

this oversight.

List of Subjects in 9 CFR Part 391

Fees and charges, Meat inspection,

Poultry products inspection.

PART 391—FEES AND CHARGES FOR

INSPECTION SERVICES

Accordingly, 9 CFR 391 is corrected

by making the following correcting

amendments:

1. The authority citation for part 391

continues to read as follows:

Authority: 7 U.S.C. 138f; 7 U.S.C. 394,

1622, and 1624; 21 U.S.C. 451 et seq.; 21

U.S.C. 601–695; 7 CFR 2.18 and 2.53.

2. Sections 391.2, 391.3, and 391.4 are

revised to read as follows:

§ 391.2 Base time rate.

The base time rate for inspection

services provided pursuant to §§ 350.7,

351.8, 351.9, 352.5, 354.101, 355.12, and

362.5 shall be $32.88 per hour, per

program employee.

§ 391.3 Overtime and holiday rate.

The overtime and holiday rate for

inspection services provided pursuant

to §§ 307.5, 350.7, 351.8, 351.9, 352.5,

354.101, 355.12, 362.5, and 381.38 shall

be $33.76 per hour, per program

employee.

§ 391.4 Laboratory services rate.

The rate for laboratory services

provided pursuant to §§ 350.7, 351.9,

352.5, 354.101, 355.12, and 362.5 shall

be $48.56 per hour, per program

employee.

Done at Washington, DC, on February 5,

1997.

Thomas J. Billy,

Administrator.

[FR Doc. 97–3371 Filed 2–10–97; 8:45 am]

BILLING CODE 3410–DM–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Parts 15, 18 and 19

Reports by Large Traders; Cash

Position Reports in Grains (including

Soybeans) and Cotton

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rulemaking.

SUMMARY: The Commodity Futures

Trading Commission (Commission) is

amending Parts 15, 18 and 19 of the

regulations under the Commodity

Exchange Act (‘‘Act’’), 17 CFR Parts 15,

18 and 19 (1996). The amendments to

Part 18 require that traders who hold

reportable futures or option positions

file the CFTC Form 40, ‘‘Statement of

Reporting Trader,’’ only upon request by

the Commission or its designee. The

amendments to Parts 15 and 19 provide

that monthly cash position reports are

required only if a trader’s net long or net

short combined futures and futures

equivalent options position exceeds the

levels specified in rule 150.2. The

proposal to amend Parts 15, 18 and 19

was included with a number of other

proposed amendments that primarily

concerned option large trader reports.

The Commission has determined to

proceed with the changes to Parts 15, 18

and 19 immediately and will consider

the remaining changes separately at a

later time. Consideration of final rules

on those changes relating to options

reporting are dependent, in part, on the

completion of upgrades to the

Commission’s computer system.

EFFECTIVE DATE: April 14, 1997.

FOR FURTHER INFORMATION CONTACT:

Lamont Reese, Commodity Futures

Trading Commission, Division of

Economic Analysis, Three Lafayette

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

Washington, D.C. 20581.

SUPPLEMENTARY INFORMATION:

I. Background

On July 18, 1996, the Commission

published a notice of proposed

rulemaking in the Federal Register that

affects reports from large traders filed

pursuant to rules 18.04 and 19.01(a)(1).

See 61 FR 37409 (July 18, 1996). The

amendments to Parts 18 and 19 were

included with a number of other

proposed amendments to the

Commission’s reporting rules that

primarily concerned options large trader

reports. Consideration of final rules

with respect to option reporting is

dependent, in part, on implementation

of certain upgrades to the Commission’s

computer system.

Under Commission rule 18.04, traders

who become reportable in futures must

file a CFTC Form 40, ‘‘Statement of

Reporting Trader,’’ within ten business

days following the day that the trader’s

position equals or exceeds specified

levels.1 Additional filings are required

to be made annually as specified in rule

18.04(d). 17 CFR 18.04 (1996). Traders

who become reportable in options are

required to file the Form 40 only in

response to a special call by the

Commission. The Form 40 requires the

disclosure of information about

ownership and control of futures and

option positions held by the reporting

trader as well as the trader’s use of the

markets for hedging.

As explained in the Notice of

Proposed Rulemaking, when an account

first becomes reportable in futures, the

futures commission merchant, clearing

member or foreign broker reporting the

account files a CFTC Form 102 that

identifies all persons having a ten

percent or more financial interest in the

account and those persons who control

the trading of the account. Although all

persons named on the Form 102 may be

considered a ‘‘trader’’ according to the

Commission’s definition, as a matter of

administrative practice Commission

staff has not initiated requests for initial

and updated Form 40s from all such

traders. Generally staff has taken action

against traders only if the traders had

failed to respond to the staff’s written

request. 61 FR 37414 (July 18, 1996). In

view of this, the Commission proposed

to amend rule 18.04 to codify this

practice by requiring that traders file

Form 40s only in response to a special

call and to delegate the authority to

make these calls to the Director of the

Division of Economic Analysis.

With regard to Part 19, the

Commission requires that persons

owning or controlling futures positions

in commodities for which the

Commission has established speculative

limits file reports concerning their long

and short cash positions, i.e., stocks of

the commodities owned and the

quantity of their fixed-price purchase

and sale commitments. See 17 CFR Part

19 (1996). These commodities include

the grains, the soybean complex and

cotton. See 17 CFR Part 150 (1996). The

primary purpose for these reports is to

determine if the futures and option

positions of traders that exceed the

Commission’s speculative limits qualify

as hedging as defined in section 1.3(z)

of the Commission’s regulations.

Although the speculative limits set forth

in rule 150.2 apply to the net long or net

short combined futures and futures

equivalent option position of a trader,

the Commission’s definition of a

reportable position contained in rule

15.00 considers only the futures

position to determine if a trader is

reportable for purposes of reports filed
Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations 6113

2Commission rules 150.1(f)–(h) define futures

equivalent long and short positions as follows:

(f) Futures-equivalent means an option contract

which has been adjusted by the previous day’s risk

factor, or delta coefficient, for that option which has

been calculated at the close of trading and

published by the applicable exchange under § 16.01

of this chapter.

(g) Long positions means a long call option, a

short put option or a long underlying futures

contract.

(h) Short positions means a short call option, a

long put option or a short underlying futures

contract.

3Conforming amendments were proposed to rule

15.01(d). See 17 CFR 15.01(d) (1996). These

amendments are adopted as proposed.

pursuant to rule 19.01(a)(1).2 The

Commission proposed amendments to

rules 15.00 and 19.00 so that a trader’s

net futures and futures-equivalent

option position would be considered in

determining whether the subject reports

must be filed.3

II. Review of Comments

The Commission received eight

comment letters concerning its

proposals published in the July 18, 1996

Federal Register. Most comments

addressed that part of the Commission’s

proposed rulemaking concerning

options large trader reporting. Three

commentors addressed the proposed

changes to Parts 15, 18 and 19. One

commentor supported adoption of the

amendments as proposed, and the

others had no objection to their

adoption. In view of this, the

Commission is adopting the

amendments as proposed.

III. Related Matters

A. The Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA),

5 U.S.C. §§ 601 et seq., requires that

agencies consider the impact of these

rules on small businesses. The

Commission has previously determined

that large traders and futures

commission merchants are not ‘‘small

entities’’ for purposes of the Regulatory

Flexibility Act, 47 FR 18618–18621

(April 30, 1982). Therefore, the

Chairperson, on behalf of the

Commission, hereby certifies, pursuant

to 5 U.S.C. § 605(b), that the action

taken herein will not have a significant

economic impact on a substantial

number of small entities.

B. Paperwork Reduction Act (PRA)

When publishing final rules, the

Paperwork Reduction Act of 1995, Pub.

L. 104–13 (May 13, 1995), imposes

certain requirements on Federal

agencies (including the Commission) in

connection with their conducting or

sponsoring any collection of

information as defined by the

Paperwork Reduction Act. In

compliance with the Act, these final

rules and/or their associated

information collection requirements

inform the public of:

1. The reasons the information is

planned to be and/or has been collected;

(2) the way such information is planned

to be and/or has been used to further the

proper performance of the functions of

the agency; (3) an estimate, to the extent

practicable, of the average burden of the

collection (together with a request that

the public direct to the agency any

comments concerning the accuracy of

this burden); (4) whether responses to

the collection of information are

voluntary, required to obtain or retain a

benefit, or mandatory; (5) the nature and

extent of confidentiality to be provided,

if any; and (6) the fact that an agency

may not conduct or sponsor, and a

person is not required to respond to, a

collection of information unless it

displays a currently valid OMB control

number.

The Commission previously

submitted these rules in proposed form

and their associated information

collection requirements to the Office of

Management and Budget. The Office of

Management and Budget approved the

collection of information associated

with these rules on November 26, 1996,

and assigned OMB control number

3038–0009 to these rules. The burden

associated with this entire collection,

including these final rules is as follows:

Average burden hours per response:

.3607 hour.

Number of Respondents: 6181.

Frequency of response: Daily.

The burden associated with these

specific final rules, is as follows:

Average burden hours per response:

.5991 hour.

Number of Respondents: 5399.

Frequency of response: On occasion.

Persons wishing to comment on the

information required by these final rules

should contact the Desk Officer, CFTC,

Office of Management and Budget,

Room 10202, NEOP, Washington, DC

20503, (202) 395–7340. 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.

List of Subjects

17 CFR Part 15

Brokers, Reporting and recordkeeping

requirements.

17 CFR Part 18

Brokers, Commodity futures,

Reporting and recordkeeping

requirements.

17 CFR Part 19

Brokers, Commodity futures,

Reporting and recordkeeping

requirements.

In consideration of the foregoing, and

pursuant to the authority contained in

the Commodity Exchange Act (Act), and

in particular, sections 4g, 4i, 5 and 8a

of the Act, 7 U.S.C. §§ 6g, 6i, 7 and 12a

(1994), the Commission hereby amends

chapter I of Title 17 of the Code of

Federal Regulations as follows:

PART 15—REPORTS—GENERAL

PROVISIONS

1. The authority citation for part 15

continues to read as follows:

Authority: 7 U.S.C. 2, 4, 5, 6a, 6c(a)–(d), 6f,

6g, 6i, 6k, 6m, 6n, 7, 9, 12a, 19 and 21; 5

U.S.C. 552 and 552(b).

2. Section 15.00 is amended by

revising paragraph (b)(1)(ii) to read as

follows:

§ 15.00 Definitions of terms used in parts

15 to 21 of this chapter.

* * * * *

(b) * * *

(l) * * *

(ii) For the purposes of reports

specified in § 19.00(a)(1) of this chapter,

any combined futures and futuresequivalent option open contract

position as defined in part 150 of this

chapter in any one month or in all

months combined, either net long or net

short in any commodity on any one

contract market, excluding futures

positions against which notices of

delivery have been stopped by a trader

or issued by the clearing organization of

a contract market, which at the close of

the market on the last business day of

the week exceeds the net quantity limit

in spot, in single or in all-months fixed

in § 150.2 of this chapter for the

particular commodity and contract

market.

* * * * *

3. Section 15.01 is amended by

revising paragraph (d) to read as

follows:

15.01 Persons required to report.

* * * * *

(d) Persons, as specified in part 19 of

this chapter, either:

(1) Who hold or control futures and

option and positions that exceed the

amounts set forth in § 150.2 of this

chapter for the commodities enumerated

in that section, any part of which

constitutes bona fide hedging positions

(as defined in § 1.3(z) of this chapter); or

(2) Who are merchants or dealers of

cotton holding or controlling positions

for future delivery in cotton that equal
6114 Federal Register / Vol. 62, No. 28 / Tuesday, February 11, 1997 / Rules and Regulations

or exceed the amount set forth in

§ 15.03.

PART 18—REPORTS BY TRADERS

4. The authority citation for part 18

continues to read as follows:

Authority: 7 U.S.C. 2, 4, 6a, 6c, 6f, 6g, 6i,

6k, 6m, 6n, 12a, and 19; 5 U.S.C. 552 and

552(b) unless otherwise noted.

5. Part 18 is amended by adding a

new § 18.03 as follows:

§ 18.03 Delegation of authority to the

Director of the Division of Economic

Analysis.

The Commission hereby delegates,

until the Commission orders otherwise,

the authority to make special calls on

traders for information as set forth in

§§ 18.00, 18.04 and 18.05 to the Director

of the Division of Economic Analysis to

be exercised by the Director or by such

other employee or employees of the

Director as may be designated from time

to time by the Director. The Director of

the Division of Economic Analysis may

submit to the Commission for its

consideration any matter which has

been delegated in this paragraph.

Nothing in this paragraph prohibits the

Commission, at its election, from

exercising the authority delegated in

this paragraph.

6. Section 18.04 is amended by

removing paragraph (d) and by revising

the introductory text to read as follows:

§ 18.04 Statement of reporting trader.

Every trader who holds or controls a

reportable options or futures position

shall after a special call upon such

trader by the Commission or its

designee file with the Commission a

‘‘Statement of Reporting Trader’’ on the

Form 40 at such time and place as

directed in the call. All traders shall

complete part A of the Form 40 and, in

addition, shall complete:

Part B—If the trader is an individual, a

partnership or a joint tenant.

Part C—If the trader is a corporation or

type of trader other than an individual,

partnership, or joint tenant.

* * * * *

PART 19—REPORTS BY PERSONS

HOLDING BONA FIDE HEDGE

POSITIONS PURSUANT TO § 1.3(z) OF

THIS CHAPTER AND BY MERCHANTS

AND DEALERS IN COTTON

7. The authority section for part 19

continues to read as follows:

Authority: U.S.C. 6g(a), 6i, and 12a(5),

unless otherwise noted.

8. Section 19.00 is amended by

revising paragraph (a)(1) to read as

follows:

§ 19.00 General provisions.

(a) * * *

(1) All persons holding or controlling

options or futures positions that are

reportable pursuant to § 15.00(b)(1)(ii) of

this chapter and any part of which

constitute bona fide hedging positions

as defined in § 1.3(z) of this chapter,

* * * * *

Issued in Washington, D.C., January 31,

1997 by the Commission.

Catherine D. Dixon,

Assistant to the Secretary of the Commission.

[FR Doc. 97–3395 Filed 2–10–97; 8:45 am]

BILLING CODE 6351–01–P

SOCIAL SECURITY ADMINISTRATION

20 CFR Part 404

RIN 0960–AE31

Cycling Payment of Social Security

Benefits

AGENCY: Social Security Administration

(SSA).

ACTION: Final rules.

SUMMARY: Historically, Social Security

benefits generally have been paid on the

3rd of each month. As a result of our

ongoing efforts to improve service to our

customers, we are establishing

additional days throughout the month

on which Social Security benefits will

be paid. Current beneficiaries are not

affected.

EFFECTIVE DATE: These final rules are

effective May 1, 1997.

FOR FURTHER INFORMATION CONTACT: Lois

Berg, Legal Assistant, Division of

Regulations and Rulings, Social Security

Administration, 6401 Security

Boulevard, Baltimore, MD 21235, (410)

965–1713. For information on

eligibility, claiming benefits, or coverage

of earnings, call our national toll-free

number, 1–800–772–1213.

SUPPLEMENTARY INFORMATION:

Background

The second phase of the National

Performance Review (NPR), the Federal

Reinventing Government effort, was

announced by the President and Vice

President on December 19, 1994. It was

designed to focus attention on what

each agency does, examining its mission

and looking at its programs and

functions to see if there are ways to

provide better service to the public and,

at the same time, do business in a more

cost-effective manner, i.e., ‘‘make

government work better and cost less.’’

Each agency was asked to assemble a

team to review its own programs and

functions. SSA’s team worked closely

with a team of representatives from NPR

and the Office of Management and

Budget (OMB) to develop

recommendations for the Vice

President’s consideration.

On April 11, 1995, the White House

formally approved SSA’s reinvention

proposals and officially announced

them the next day. One of these

proposals was to cycle the payment of

benefits.

Recipients of Old-Age, Survivors and

Disability Insurance (OASDI) benefits

and Supplemental Security Income

(SSI) payments currently are paid in the

first few days of each month. While

these specific payment days have never

been required by the Social Security Act

(the Act), which in §§ 205(i) and

1631(a)(1) commits the time for making

benefit payments to the discretion of the

Commissioner of Social Security, it has

been our longstanding administrative

practice to make payment on these days.

Monthly benefits are paid to all OASDI

beneficiaries on the same day (generally

the 3rd day of each month for the

preceding month) and to all SSI

beneficiaries on the same day (generally

the 1st day of each month for which the

payment is due).

Over the years, a trend has developed

that has resulted in deterioration of

services we provide face-to-face or over

the telephone on and around our

payment days. This phenomenon is

described fully below and is of

particular concern to us in light of the

Agency’s commitment to provide

‘‘world class’’ service to our

beneficiaries and customers.

Executive Order 12862, issued on

September 11, 1993, mandates that the

standard of quality for services provided

to the public for all government

agencies shall be ‘‘customer service

equal to the best in the business.’’ This

standard has been incorporated into

SSA’s goal of providing ‘‘world class’’

public service. For example, when you

conduct business with us, we have set

as goals that:

• When you make an appointment to

talk with someone at one of our field

offices, we will serve you within 10

minutes to the scheduled time.

• When you call our toll-free 800

number, you will get through to it

within 5 minutes of your first try.

SSA’s current practice of paying 47

million beneficiaries within the first 3

days of each month results in a large

surge of work during the first week of

each month. This surge includes a large

number of visitors to field offices and

calls to our toll-free 800 number to

report nonreceipt of a check, question

the amount paid, or ask about other

payment-related issues. Approximately