66618 Federal Register / Vol. 65, No. 216 / Tuesday, November 7, 2000 / Rules and Regulations

1An introducing broker (‘‘IB’’) is required to

maintain minimum adjusted net capital of $30,000,

unless the IB has entered into a guarantee

agreement with an FCM in the form prescribed in

the Commission’s rules. The industry has

commonly distinguished between such IBs as

Guaranteed IBs and Independent IBs (‘‘IBIs’’), the

latter being subject to the $30,000 minimum capital

requirement. The rule changes being adopted herein

affect those IBs identified as IBIs.

2 65 FR 52051 (August 28, 2000).

3Commission regulations cited herein may be

found at 17 CFR Ch. I (2000).

4Under Rule 30.10 and Appendix A thereto, the

Commission may exempt a foreign firm from

compliance with certain Commission rules

provided that a comparable regulatory system exists

in the firm’s home country and that certain

safeguards are in place to protect U.S. customers,

including an information-sharing arrangement

between the Commission and the firm’s home

country regulator or self-regulatory organization

(‘‘SRO’’). Once the Commission determines that the

foreign jurisdiction’s regulatory structure offers

comparable regulatory oversight, the Commission

issues an order granting general relief subject to

certain conditions. Foreign firms seeking

confirmation of this relief must make certain

representations set forth in the Rule 30.10 order

issued to the regulator or SRO from the firm’s home

country. Appendix C to Part 30 lists those foreign

regulators and SROs that have been issued a Rule

30.10 order by the Commission.

Rule 30.7(c) sets forth acceptable depositories for

funds deposited by U.S. customers with foreign

brokers for futures and option trading on foreign

boards of trade.

5The specific elements examined in evaluating

whether a particular foreign regulatory program

provides a basis for permitting substituted

compliance for purposes of exemptive relief

pursuant to Rule 30.10 are set forth in Appendix A

to Part 30.

6 47 FR 18618–18621 (April 30, 1982).

Note 3: The subject of this AD is addressed

in Transport Canada (Canada) AD No. CF–

2000–04, dated February 8, 2000.

Issued in Fort Worth, Texas, on October 27,

2000.

Henry A. Armstrong,

Manager, Rotorcraft Directorate, Aircraft

Certification Service.

[FR Doc. 00–28235 Filed 11–6–00; 8:45 am]

BILLING CODE 4910–13–U

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 1

RIN 3038–AB54

Minimum Financial Requirements for

Futures Commission Merchants and

Introducing Brokers; Amendment to

the Capital Charge on Unsecured

Receivables Due From Foreign

Brokers

AGENCY: Commodity Futures Trading

Commission.

ACTION: Final rule.

SUMMARY: The Commodity Futures

Trading Commission. (‘‘Commission’’)

is amending its net capital rule to

expand the exemption from the five

percent capital charge that a futures

commission merchant (‘‘FCM’’) or

introducing broker is required to take

against unsecured foreign broker

receivables in computing its adjusted

net capital.1

EFFECTIVE DATE: December 7, 2000.

FOR FURTHER INFORMATION CONTACT:

Thomas J. Smith, Special Counsel,

Division of Trading and Markets,

Commodity Futures Trading

Commission, Three Lafayette Center,

1155 21st Street, NW, Washington, DC

20581; telephone (202) 418–5495;

electronic mail tsmith@cftc.gov; or

Henry J. Matecki, Financial Audit and

Review Branch, Division of Trading and

Markets, Commodity Futures Trading

Commission, 300 South Riverside Plaza,

Suite 1600 North, Chicago, IL 60606;

telephone (312) 353–6642; electronic

mail hmatecki@cftc.gov.

SUPPLEMENTARY INFORMATION:

I. Rule Amendments

On August 28, 2000, the Commission

published for comment proposed

amendments to Rule 1.17(c)(5)(xiii)

(‘‘proposing release’’).2 The comment

period expired on September 27, 2000.

No comments were received.

Accordingly, the Commission is

adopting the amendments as proposed.

Commission Rule 1.17(c)(5)(xiii)

requires an FCM or IBI, in computing its

adjusted net capital, to take a five

percent capital charge on any unsecured

receivables resulting from commodity

futures and option transactions

executed on foreign boards of trade and

which are due from foreign brokers that

are not registered with the Commission

as FCMs or with the Securities and

Exchange Commission (‘‘SEC’’) as

securities brokers or dealers.3 As more

fully set forth in the proposing release,

Rule 1.17(c)(5)(xiii) currently permits an

FCM or IBI to exclude from the five

percent capital charge that portion of

the unsecured receivable that represents

amounts required to be on deposit to

maintain futures and option positions

transacted on foreign boards of trade.

Deposits in excess of required margin or

performance bond are subject to the

capital charge. In addition, to be exempt

from the capital charge, the receivable

must be due from a foreign broker that

has received confirmation of

‘‘comparability relief’’ in accordance

with a Commission order issued under

Rule 30.10 and the margin deposits

must be held by the foreign broker itself,

another foreign broker that has received

confirmation of Rule 30.10

‘‘comparability relief,’’ or at a

depository that qualifies as a depository

pursuant to Rule 30.7 and which is

located within the same jurisdiction as

either foreign broker.4

The amendments being adopted

herein increase the maximum amount

eligible for exclusion from the five

percent capital charge to the greater of:

150 percent of the amount immediately

required to support futures and option

transactions in an account; or 100

percent of the maximum amount

required to support futures and option

transactions at any time during the

preceding six-month period. The

amendments are intended to provide

FCMs and IBIs with greater flexibility

with respect to their cash and risk

management while also reducing costs

associated with frequent transfers of

excess margin funds out of foreign

brokers in order to avoid the five

percent capital charge.

The amendments also eliminate the

requirement that an FCM or IBI be

responsible for monitoring the ultimate

destination of margin funds deposited

with a Rule 30.10 foreign broker in

order for such funds to qualify for the

exemption from the capital charge. As

set forth in the proposing release, by

granting Rule 30.10 ‘‘comparability

relief’’ to a foreign broker, the

Commission has made a determination

that the foreign broker is subject to a

regulatory structure that is comparable

to the structure imposed on entities that

operate on U.S. futures exchanges. Of

particular relevance is that the

Commission, as part of the Rule 30.10

petition process, assesses the extent to

which a foreign broker is subject to a

regulatory program that imposes bona

fide minimum financial requirements

on its regulatees or members and that

provides for the protection of customers

by the segregation of funds and

bankruptcy rules.5 The Commission’s

determination that these standards and

protections exist and are enforced

supports an easing of the capital charge.

II. Related Matters

A. Regulatory Flexibility Act

The Regulatory Flexibility Act

(‘‘RFA’’), 5 U.S.C. 601–611, requires that

agencies, in adopting rules, consider the

impact of those rules on small

businesses. 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 entities.6 The

Commission previously has determined

Federal Register / Vol. 65, No. 216 / Tuesday, November 7, 2000 / Rules and Regulations 66619

7 47 FR 18619–1820.

8 48 FR 35248, 35275–78 (August 3, 1983).

that registered FCMs are not small

entities for the purposes of the RFA.7

With respect to IBIs, the Commission

stated that it is appropriate to evaluate

within the context of a particular rule

whether some or all introducing broker

should be considered to be small

entities and, if so, to analyze the

economic impact on such entities at that

time.8 The amendments to Rule

1.17(c)(5)(xiii) expanding the amount of

funds that may be excluded from the

foreign brokers receivable capital charge

do not impose additional requirements

on an IBI. Therefore, the Chairman, on

behalf of the Commission, certifies that

these regulations will not have a

significant economic impact on a

substantial number of small entities.

B. Paperwork Reduction Act

The Paperwork Reduction Act of

1995, 44 U.S.C. 3501 et seq. (Supp. I

1995), imposes certain requirements on

federal agencies (including the

Commission) to review rules and rule

amendments to evaluate the information

collection burden that they impose on

the public. The Commission believes

that the amendments to Rule

1.17(c)(5)(xiii) will impose a minimal

information collection burden on the

public, namely those FCMs and IBIs

who wish to take advantage of the

exemption will be required to maintain

a record of the margins required to be

on deposit with a foreign broker over

the preceding six month period.

However, this burden is believed to be

minimal when compared to the capital

savings to be generated by the exclusion

of increased amounts from the capital

charge.

List of Subjects in 17 CFR Part 1

Brokers, Commodity futures.

In consideration of the foregoing and

pursuant to the authority contained in

the Commodity Exchange Act and, in

particular, Sections 4(b), 4f, 4g, and

8a(5) thereof, 7 U.S.C. 6(b), 6d, 6g, and

12a(5), the Commission hereby amends

Chapter I of Title 17 of the Code of

Federal Regulations 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, 2a, 4, 4a, 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.

2. Section 1.17 is amended by revising

paragraph (c)(5)(xiii) to read as follows:

§1.17 Minimum financial requirements for

futures commission merchants and

introducing brokers.

* * * * *

(c) * * *

(5) * * *

(xiii) Five percent of all unsecured

receivables includable under paragraph

(c)(2)(ii)(D) of this section used by the

applicant or registrant in computing

‘‘net capital’’ and which are not due

from:

(A) A registered futures commission

merchant;

(B) A broker or dealer that is

registered as such with the Securities

and Exchange Commission; or

(C) A foreign broker that has been

granted comparability relief pursuant to

§30.10 of this chapter, Provided,

however, that the amount of the

unsecured receivable not subject to the

five percent capital charge is no greater

than 150 percent of the current amount

required to maintain futures and option

positions in accounts with the foreign

broker, or 100 percent of such greater

amount required to maintain futures

and option positions in the accounts at

any time during the previous six-month

period, and Provided, that, in the case

of customer funds, such account is

treated in accordance with the special

requirements of the applicable

Commission order issued under §30.10

of this chapter.

* * * * *

Issued in Washington, DC, on November 1,

2000, by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 00–28492 Filed 11–6–00; 8:45 am]

BILLING CODE 6351–01–M

DEPARTMENT OF HEALTH AND

HUMAN SERVICES

Food and Drug Administration

21 CFR Part 524

Ophthalmic and Topical Dosage Form

New Animal Drugs; Enrofloxacin,

Silver Sulfadiazine Emulsion

AGENCY: Food and Drug Administration,

HHS.

ACTION: Final rule.

SUMMARY: The Food and Drug

Administration (FDA) is amending the

animal drug regulations to reflect

approval of a new animal drug

application (NADA) filed by Bayer

Corp., Agriculture Division, Animal

Health. The NADA provides for

veterinary prescription use of an

enrofloxacin/silver sulfadiazine otic

emulsion to treat otitis externa in dogs.

DATES: This rule is effective November

7, 2000.

FOR FURTHER INFORMATION CONTACT:

Melanie R. Berson, Center for Veterinary

Medicine (HFV–110), Food and Drug

Administration, 7500 Standish Pl.,

Rockville, MD 20855, 301–827–7540.

SUPPLEMENTARY INFORMATION: Bayer

Corp., Agriculture Division, Animal

Health, P.O. Box 390, Shawnee Mission,

KS 66201, filed NADA 141–176 that

provides for veterinary prescription use

of BAYTRIL (0.5 % enrofloxacin/1.0%

silver sulfadiazine) Otic Emulsion for

the treatment of otitis externa in dogs.

The NADA is approved as of September

29, 2000, and the regulations are

amended in 21 CFR part 524 by adding

new section 524.802 to reflect the

approval. The basis of approval is

discussed in the freedom of information

summary.

In accordance with the freedom of

information provisions of 21 CFR part

20 and 514.11(e)(2)(ii), a summary of

safety and effectiveness data and

information submitted to support

approval of this application may be seen

in the Dockets Management Branch

(HFA–305), Food and Drug

Administration, 5630 Fishers Lane, rm.

1061, Rockville, MD 20852, between 9

a.m. and 4 p.m., Monday through

Friday.

Under section 512(c)(2)(F)(ii) of the

Federal Food, Drug, and Cosmetic Act

(21 U.S.C. 360b(c)(2)(F)(ii)), this

approval qualifies for 3 years of

marketing exclusivity beginning

September 29, 2000, because the

application contains substantial

evidence of effectiveness of the drug

involved, or any studies of animal

safety, required for approval of the

application and conducted or sponsored

by the applicant.

The agency has determined under 21

CFR 25.33(d)(1) that this action is of a

type that does not individually or

cumulatively have a significant effect on

the human environment. Therefore,

neither an environmental assessment

nor an environmental impact statement

is required.

This rule does not meet the definition

of ‘‘rule’’ in 5 U.S.C. 804(3)(A) because

it is a rule of ‘‘particular applicability.’’

Therefore, it is not subject to the

congressional review requirements in 5

U.S.C. 801–808.

List of Subjects in 21 CFR Part 524

Animal drugs.