64136 Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Rules and Regulations

1 5 U.S.C. 553 (1994).

2 5 U.S.C. 601 et seq. (1994).

3 47 FR 18618, 18618–18621 (April 30, 1982).

4 Id. at 18618–18620.

5 7 U.S.C. 4a and 12a (1994).

Use maximum force including a combined

effort of both pilots, if required to free and

center the rudder pedals.

If rudder pedal position or movement is

not normal and the condition is not the result

of rudder trim:

SYSTEM B FLIGHT CONTROL SWITCH:

STBY RUD.

A slight rudder deflection may remain, but

continued rudder pedal pressure may help

maintain an in-trim condition.

Sufficient directional control is available

on landing using differential braking and

nose wheel steering.

Crosswind capability may be reduced.

Do not use autobrakes.

Consider checking rudder freedom of

movement at a safe altitude using slow

rudder inputs while in the landing

configuration and at approach speed.

If condition was the result of rudder trim

or environmental factors:

YAW DAMPER SWITCH: ON.

Accomplish the normal DESCENT—

APPROACH and LANDING checklists.’’

(c) It is acceptable to modify the format of

the above procedure to reflect the format

used by individual carriers. However, the

procedural sequence, memory items, and/or

associated text may not be modified, except

by submitting a request for an alternative

method of compliance (AMOC) as specified

in paragraph (d) of this AD.

Alternative Methods of Compliance

(d) An AMOC or adjustment of the

compliance time that provides an acceptable

level of safety may be used if approved by

the Manager, Seattle Aircraft Certification

Office (ACO), FAA. Operators shall submit

their requests through an appropriate FAA

Principal Operations Inspector, who may add

comments and then send it to the Manager,

Seattle ACO.

Note 1: Information concerning the

existence of approved alternative methods of

compliance with this AD, if any, may be

obtained from the Seattle ACO.

Special Flight Permits

(e) Special flight permits may be issued in

accordance with sections 21.197 and 21.199

of the Federal Aviation Regulations (14 CFR

21.197 and 21.199) to operate the airplane to

a location where the requirements of this AD

can be accomplished.

Effective Date

(f) This amendment becomes effective on

November 13, 2000.

Issued in Renton, Washington, on October

20, 2000.

John J. Hickey,

Manager, Transport Airplane Directorate,

Aircraft Certification Service.

[FR Doc. 00–27508 Filed 10–25–00; 8:45 am]

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 140

Delegation of Authority to Disclose

and Request Information

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rules.

SUMMARY: The Commodity Futures

Trading Commission (Commission) is

amending certain provisions of its part

140 regulations to add the Director and

Deputy Director of the Commission’s

Office of International Affairs as persons

to whom certain authorities are

delegated.

EFFECTIVE DATE: October 26, 2000.

FOR FURTHER INFORMATION CONTACT:

Robert Rosenfeld, Deputy Director,

Office of International Affairs,

Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21st Street, NW., Washington, DC

20581. Telephone: (202) 418–5645.

E-mail: rrosen-field@cftc.gov.

SUPPLEMENTARY INFORMATION:

I. Delegation

Commission regulations have been

amended to add the Director of the

Office of International Affairs (Director)

and, in certain circumstances the

Deputy Director, as persons authorized

in appropriate cases to disclose certain

non-public information to other

governmental, judicial or market

authorities in carrying out his or her

duties. The amendments would affect

the authority to disclose: (1) Information

to a contract market, registered futures

association or self-regulatory

organization (17 CFR 140.72), and (2)

information to United States (U.S.),

States and foreign government agencies

and foreign futures authorities (17 CFR

140.73). This authority will facilitate

OIA’s ability to coordinate and share

information with foreign authorities for

regulatory oversight, fitness inquiries

and other regulatory purposes.

II. Related Matters

A. Administrative Procedure Act

The Commission has determined that

this delegation of authority relates

solely to agency organization, procedure

and practice. Therefore, the provisions

of the Administrative Procedure Act

that generally require notice of proposed

rulemaking and that provide other

opportunities for public participation 1

are not applicable. The Commission

further finds that, because the rules

have no adverse effect upon a member

of the public, there is good cause to

make them effective immediately upon

publication in the Federal Register.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA) 2

requires that agencies, in proposing

rules, consider the impact of those rules

on small businesses. The rules

discussed herein are only an

administrative delegation and will have

no impact on registered entities or other

persons subject to the Commission’s

regulatory authority. The rules solely

authorize the transmission of

information and do not impose any

regulatory burden. Moreover, even

assuming such impact, the Commission

has previously established certain

definitions of ‘‘small entities’’ to be used

by the Commission in evaluating the

impact of its rules on such small entities

in accordance with the RFA, and

determined that contract markets,

futures commission merchants (FCMs)

large traders and commodity pool

operators (CPOs) are not small entities

under the RFA. 3 With respect to

commodity trading advisors (CTAs) and

introducing brokers (IBs), the

Commission stated that it would

evaluate within the context of a

particular proposal whether all or some

affected CTAs and IBs should be

considered small entities and if so, that

it would analyze the economic impact

on them of any rule.4 As noted above,

this rule does not change any

obligations or otherwise impose any

regulatory burdens. Accordingly, the

Chairman, on behalf of the Commission,

hereby certifies, pursuant to 5 U.S.C.

605(b), that these rule amendments will

not have a significant impact on a

substantial number of small entities.

List of Subjects in 17 CFR Part 140

Authority delegations (Government

agencies), Organization and functions

(Government agencies).

In consideration of the foregoing and

pursuant to the authority contained in

the Act and, in particular, Sections 2a

and 8a,5 the Commission is amending

Part 140 of Chapter I of Title 17 of the

Code of Federal Regulations as follows:

PART 140—[AMENDED]

1. The authority citation for Part 140

continues to read as follows:

Authority: 7 U.S.C. 4a and 12a.

Federal Register / Vol. 65, No. 208 / Thursday, October 26, 2000 / Rules and Regulations 64137

1 17 CFR 240.9b–1.

2 15 U.S.C. 78a et seq.

3Securities Exchange Act Release No. 40129

(June 25, 1998), 63 FR 36138 (July 1, 1998)

(‘‘Proposing Release’’).

4The term ‘‘standardized options’’ is defined as

‘‘options contracts trading on a national securities

exchange, an automated quotation system of a

registered securities association, or a foreign

securities exchange which relate to options classes

the terms of which are limited to specific expiration

date and exercise prices, or such other securities as

the Commission may, by order, designate.’’ 17 CFR

240.9b–1(a)(4).

5The term ‘‘options market’’ is defined as ‘‘a

national securities exchange, an automated

quotation system of a registered securities

association or a foreign securities exchange on

which standardized options are traded.’’ 17 CFR

240.9b–1(a)(1).

6See Securities Exchange Act Release Nos. 18836

(June 24, 1982), 47 FR 28688 (July 1, 1982) (‘‘1982

Proposing Release’’) and 19055 (Sept. 16, 1982), 47

FR 41950 (Sept. 23, 1982) (‘‘1982 Adopting

Release’’). 7 1982 Proposing Release, id. at 47 FR 28688. 8Concurrent with the adoption of Rule 9b–1, the

Commission adopted a Form S–20 for the

registration of standardized options under the

Securities Act. 1982 Adopting Release, supra note

6, 47 FR at 41951–2. This Form requires the filing

of information relating to standardized options and

their issuer. The Form must be filed with the

Commission by the issuer and become effective

before an options disclosure document may be

distributed. 17 CFR 240.9b–1(b)(1).

§ 140.72 [Amended]

2. Paragraph (a) of § 140.72 is

amended by removing ‘‘and each of the

Directors of the Market Surveillance

Branches’’ and adding, ‘‘each of the

Directors of the Market Surveillance

Branches, the Director of the Office of

International Affairs and the Deputy

Director of the Office of International

Affairs’’ in its place.

§ 140.73 [Amended]

3. Paragraph (a) of § 140.73 is

amended by adding, ‘‘and the Director

of the Office of International Affairs or,

in his or her absence, the Deputy

Director of the Office of International

Affairs’’ after ‘‘each Deputy Director of

the Division of Trading and Markets.’’

Issued in Washington, DC on October 19,

2000 by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 00–27481 Filed 10–25–00; 8:45 am]

BILLING CODE 6351–01–M

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 240

[Release No. 34–43461, File No. S7–18–98]

RIN 3235–AH30

Amendments to Rule 9b–1 Under the

Securities Exchange Act of 1934

Relating to the Options Disclosure

Document

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule.

SUMMARY: The Securities and Exchange

Commission (‘‘SEC’’ or ‘‘Commission’’)

is adopting amendments to Rule 9b–1

(‘‘Rule’’) under the Securities Exchange

Act of 1934 (‘‘Exchange Act’’). Rule 9b–

1 governs the filing and dissemination

of, and the information to be included

in, an options disclosure document. The

amendments are intended to provide

greater clarity to the Rule’s provisions,

while continuing a regulatory scheme

that fosters investors’ understanding of

the characteristics and risks of

standardized options.

EFFECTIVE DATE: This final rule is

effective November 27, 2000.

FOR FURTHER INFORMATION CONTACT:

Nancy J. Sanow, Assistant Director, at

(202) 942–0796, or Steven Johnston,

Special Counsel, at (202) 942–0795,

Office of Market Supervision, Division

of Market Regulation, 450 Fifth Street,

NW., Washington, DC 20549–1001.

SUPPLEMENTARY INFORMATION: The

Commission is adopting amendments to

Rule 9b–1 1 under the Securities

Exchange Act of 1934 2 to make

technical and clarifying changes to the

Rule to better reflect the disclosure

requirements regarding standardized

options.

I. Introduction

In June 1998, the Commission

published for comment amendments to

Rule 9b–1 under the Exchange Act to

revise certain language in the Rule to

better reflect the disclosure

requirements regarding standardized

options.3 The changes are minor or

technical in nature and do not alter the

basic purpose of the Rule, namely, to

ensure the dissemination of essential

options information to less

sophisticated investors in a manner that

they can easily understand. The changes

should also help to ensure that the Rule

addresses the evolving nature of the

markets for standardized options.4 The

Commission received two comments

supporting the proposal and is adopting

the revisions as proposed.

II. Background

In general, Rule 9b–1: (i) Specifies

when a self-regulatory organization is

required to file an options disclosure

document (‘‘ODD’’) with the

Commission; (ii) itemizes the

information required to be contained in

the ODD; (iii) describes the

Commission’s process of reviewing a

preliminary ODD; and (iv) establishes

the obligations of broker-dealers to

furnish the ODD prior to approving a

customer’s account for trading in

options.

Rule 9b–1 provides that an options

disclosure document containing the

information specified in paragraph (c) of

the Rule must be filed with the

Commission by an options market 5 at

least 60 days prior to the date definitive

copies of the document are furnished to

customers. Rule 9b–1(c) specifies that,

with respect to the options classes

covered by the ODD, the document must

contain, among other things, a

discussion of the mechanics of buying,

writing, and exercising the options; the

risks of trading the options; the market

for the option; and a brief reference to

the transaction costs, margin

requirements, and tax consequences of

options trading. Further, Rule 9b–1(d)

provides that no broker or dealer shall

accept an options order from a

customer, or approve the customer’s

account for the trading of options,

‘‘unless the broker or dealer furnishes or

has furnished to the customer the

options disclosure document.’’

Adopted in 1982, the Rule is intended

to foster better investor understanding

of standardized options trading and to

reduce the costs of issuer compliance

with the registration requirements of the

Securities Act of 1933 (‘‘Securities

Act’’).6 Prior to the Rule’s adoption, it

was necessary for an options issuer to

file a registration statement containing

detailed information about the issuer of

the options and the mechanics of

options trading, to meet the registration

requirements of the Securities Act.

These registration requirements,

however, made the prospectus ‘‘lengthy

and complicated’’ and did not meet the

needs of less sophisticated options

investors.7 Accordingly, the

Commission developed a disclosure

document that contains information

concerning the risks and uses of options

trading and presents the information in

a manner easily understandable by

investors lacking a financial

background. With the adoption of Rule

9b–1, the Commission established a new

disclosure procedure specifically geared

to satisfying the information needs of

investors in standardized options.8

Following the adoption of Rule 9b–1,

an options disclosure document was

prepared jointly by The American Stock

Exchange LLC, the Chicago Board

Options Exchange, Inc. (‘‘CBOE’’), the

Pacific Exchange, Inc., the Philadelphia

Stock Exchange, Inc., and The Options

Clearing Corporation (‘‘OCC’’). The