Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices 28755 

1 In the Federal Register release proposing new 

Regulations 4.12(c) and 4.13(a)(5), the Commission 

explained the origins and use of the term 

‘‘Commodity ETF’’. 75 FR 54794, at 54795 (Sep. 9, 

2010). 

2 17 CFR 4.13 (2010). Commission regulations 

referred to herein may be accessed through the 

Commission’s Web site at http://www.cftc.gov. 

3 7 U.S.C. 12a(10) (2006). The Act also may be 

accessed through the Commission’s Web site. 

4 7 U.S.C. 21(j) (2006). 

5 7 U.S.C. 21(o)(1) (2006). 

6Letter from Robert K. Wilmouth, President of 

NFA, to Brooksley Born, Chairperson of the 

Commission, dated June 20, 1997. 

7As used in this Notice and Order, the term 

‘‘process’’ generally refers to the review of a notice 

for compliance with applicable requirements and, 

where necessary, advising the CPO of any 

deficiency related thereto. 

8See, e.g., 62 FR 52088 (Oct. 6, 1997), whereby 

the Commission delegated to NFA the authority to 

process various filings made under Part 4. 

9See, e.g., 75 FR 55310 (Sep. 10, 2010); 70 FR 

2621 (Jan. 14, 2005); and 68 FR 12684 (Mar. 17, 

2003). 

There are no capital costs or operating 

and maintenance costs associated with 

this collection. 

This estimate is based on the number 

of written records maintained in the last 

three years. Although the burden varies, 

such records may involve analytical 

work and analysis, as well as multiple 

levels of review. 

Dated: May 12, 2011. 

David A. Stawick, 

Secretary of the Commission. 

[FR Doc. 2011–12185 Filed 5–17–11; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

Performance of Certain Functions by 

National Futures Association With 

Respect to Commodity Pool Operators 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice and Order. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission) is 

authorizing the National Futures 

Association (NFA) to process: (1) Claims 

of exemption from certain Part 4 

requirements for commodity pool 

operators (CPOs) with respect to pools 

whose units are listed and traded on a 

national securities exchange 

(Commodity ETFs); and (2) notices of 

exemption from registration as a CPO 

filed by independent directors or 

trustees of Commodity ETFs. Further, 

the Commission is authorizing NFA to 

maintain and serve as the official 

custodian of certain Commission 

records. 

DATES: Effective Date: June 17, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Christopher W. Cummings, Special 

Counsel, Division of Clearing and 

Intermediary Oversight, or Barbara S. 

Gold, Associate Director, Division of 

Clearing and Intermediary Oversight, 

Commodity Futures Trading 

Commission, 1155 21st Street, NW., 

Washington, DC 20581, telephone 

number: (202) 418–5450; facsimile 

number: (202) 418–5528; and electronic 

mail: ccummings@cftc.gov, or 

bgold@cftc.gov, respectively. 

I. Authority and Background 

In a separate document published 

elsewhere in today’s Federal Register, 

the Commission is announcing adoption 

of new Regulation 4.12(c), which makes 

available to the CPOs of Commodity 

ETFs relief from certain disclosure, 

reporting and recordkeeping 

requirements, and new Regulation 

4.13(a)(5), which makes available relief 

from the requirement to register as a 

CPO for certain independent directors 

and trustees of Commodity ETFs.1 Relief 

under each of the new regulations must 

be claimed by the filing of specified 

notices and in the case of Regulation 

4.13(a)(5), certain additional statements. 

These filings are similar to filings 

currently made with NFA by CPOs 

seeking to claim relief under other 

provisions of Regulation 4.13.2

Section 8a(10) of the Commodity 

Exchange Act 3 (Act) provides that the 

Commission may authorize any person 

to perform any portion of the 

registration functions under the Act, 

notwithstanding any other provision of 

law, in accordance with rules adopted 

by such person and submitted to the 

Commission for approval or, if 

applicable, for review pursuant to 

Section 17(j) of the Act 4 and subject to 

the provisions of the Act applicable to 

registrations granted by the 

Commission. Section 17(o)(1) of the 

Act 5 provides that the Commission may 

require NFA to perform Commission 

registration functions in accordance 

with the Act and NFA rules. In this 

regard, the Commission notes that NFA 

has confirmed its willingness to perform 

certain functions that would otherwise 

be performed by the Commission.6

Upon consideration, the Commission 

has determined to authorize NFA, 90 

days following publication of this 

Notice and Order in the Federal 

Register, to perform the following 

functions: (1) To process 7 notices of 

claim under Regulation 4.12(c) for 

exemption from certain Part 4 

requirements; (2) to process notices of 

exemption pursuant to Rule 4.13(a)(5) 

from registration as a CPO; and (3) to 

maintain and to serve as the official 

custodian of records for such notices of 

claim for exemption. As discussed 

below, these functions involve 

exemption from certain disclosure, 

reporting and recordkeeping 

requirements for CPOs, and exemption 

from CPO registration for certain 

persons. This action is consistent with 

other action the Commission has taken 

with respect to delegating to NFA 

various responsibilities under Part 4 of 

the Commission’s regulations.8

A. Exemption From Certain Part 4 

Requirements for CPOs of Commodity 

ETFs 

Regulation 4.12(c) makes available an 

exemption from certain disclosure, 

reporting and reporting requirements for 

registered CPOs of Commodity ETFs. To 

perfect the exemption, Regulation 

4.12(d) requires eligible CPOs to file a 

notice of claim for exemption with NFA. 

By this Order, NFA is authorized to 

process claims for exemption filed by 

CPOs who meet the requirements set 

forth in Regulation 4.12(c). 

B. Exemption From Registration as a 

CPO for Independent Directors or 

Trustees 

Regulation 4.13(a)(5) makes available 

an exemption from CPO registration 

where a person is a director or trustee 

of a commodity pool solely to comply 

with the requirements under section 

10A of the Securities Exchange Act of 

1934, as amended, and any Securities 

and Exchange Commission rules and 

exchange listing requirements adopted 

pursuant thereto, that the pool have an 

audit committee comprised exclusively 

of independent directors or trustees. To 

perfect the exemption, Regulation 

4.13(b) requires eligible persons to file 

a notice of exemption with NFA. By this 

Order, NFA is authorized to process 

claims for exemption filed by persons 

who meet the requirements set forth in 

Regulation 4.13(a)(5). 

C. Recordkeeping Requirements 

By prior orders, the Commission has 

authorized NFA to maintain various 

other Commission registration records 

and has certified NFA as the official 

custodian of such records for this 

agency.9 The Commission has now 

determined, in accordance with its 

authority under Section 8a(10) of the 

Act, to authorize NFA to maintain and 

to serve as the official custodian of 

records for the claims required for the 

exemptions provided by Regulations 

4.12(c) and 4.13(a)(5). 

In maintaining the Commission’s 

records pursuant to this Order, NFA 

shall be subject to all other requirements 


srobinson on DSKHWCL6B1PROD with NOTICES
28756 Federal Register / Vol. 76, No. 96 / Wednesday, May 18, 2011 / Notices 

10See also, Section 125 of the Commodity 

Futures Modernization Act of 2000, Public Law 

106–554, 114 Stat. 2763, enacted December 21, 

2000, which directed the Commission to report to 

Congress identifying, among other things, ‘‘the 

regulatory functions the Commission currently 

performs that can be delegated to a registered 

futures association.’’ 

11 7 U.S.C. 19(a) (2006). 

and obligations imposed upon it by the 

Commission in existing or future Orders 

or regulations. In this regard, NFA shall 

also implement such additional 

procedures (or modify existing 

procedures) as are acceptable to the 

Commission and as are necessary: to 

ensure the security and integrity of the 

records in NFA’s custody; to facilitate 

prompt access to those records by the 

Commission and its staff, particularly as 

described in other Commission Orders 

or regulations; to facilitate disclosure of 

public or nonpublic information in 

those records when permitted by 

Commission Orders or regulations and 

to keep logs as required by the 

Commission concerning disclosure of 

nonpublic information; and otherwise to 

safeguard the confidentiality of the 

records consistent with Section 8 of the 

Act and the Commission’s regulations 

issued thereunder. 

II. Conclusion and Order 

The Commission has determined, in 

accordance with the provisions of 

Sections 8a(10) and 17(o)(1) of the Act, 

to authorize NFA to perform the 

following functions: 

(1) To process notices of claim under 

Regulation 4.12(c) for exemption from 

compliance with certain Part 4 

requirements, filed under Regulation 

4.12(d) by the registered CPOs of 

Commodity ETFs; 

(2) To process notices of exemption 

pursuant to Regulation 4.13(a)(5) from 

registration as a CPO, filed under 

Regulation 4.13(b) by independent 

directors or trustees of Commodity 

ETFs; and 

(3) To maintain and to serve as the 

official custodian of records for the 

notices required by the regulations 

listed above. 

NFA shall perform these functions in 

accordance with the standards 

established by the Act and Commission 

Orders and regulations promulgated 

thereunder, particularly Part 4 of the 

regulations and Commission Orders 

issued thereunder, and shall provide the 

Commission with such summaries and 

periodic reports as the Commission may 

determine are necessary for effective 

oversight of the functions delegated 

hereby. 

These determinations are based upon 

the Congressional intent expressed in 

Sections 8a(10) and 17(o) of the Act that 

the Commission have the authority to 

delegate to NFA any portion of the 

Commission’s registration 

responsibilities under the Act for 

purposes of carrying out these 

responsibilities in the most efficient and 

cost-effective manner.10

This Order does not, however, 

authorize NFA to render ‘‘no-action’’ 

positions, exemptions or interpretations 

with respect to applicable CPO 

disclosure, reporting, recordkeeping and 

registration requirements. 

Nothing in this Order or in Section 

8a(10) or 17(o) of the Act shall affect the 

Commission’s authority to review NFA’s 

performance of Commission functions 

listed in items (1) through (3) of Section 

II of this Order. 

NFA is authorized to perform all 

functions specified herein until such 

time as the Commission orders 

otherwise. Nothing in this Order shall 

prevent the Commission from exercising 

the authority delegated herein. NFA 

may submit to the Commission for 

decision any specific matters that have 

been delegated to it, and Commission 

staff will be available to discuss with 

NFA staff issues relating to the 

implementation of this Order. Nothing 

in this Order affects the applicability of 

any previous Orders issued by the 

Commission concerning Part 4. 

III. Cost-Benefit Analysis 

Section 15(a) of the Act 11 requires the 

Commission to consider the costs and 

benefits of its actions before 

promulgating regulations under the Act 

or issuing certain orders. By its terms, 

section 15(a) does not require the 

Commission to quantify the costs and 

benefits of a regulation or order, or to 

determine whether the benefits of the 

regulation or order outweigh its costs; 

rather, it requires that the Commission 

‘‘consider’’ the costs and benefits of its 

actions. Section 15(a) further specifies 

that the 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 may in 

its discretion give greater weight to any 

one of the five enumerated areas and 

could in its discretion determine that, 

notwithstanding its costs, a particular 

rule is necessary or appropriate to 

protect the public interest or to 

effectuate any of the provisions or 

accomplish any of the purposes of the 

Act. 

Summary of proposed requirements. 

The Order would delegate to NFA the 

responsibility to process notices 

submitted by persons seeking to claim 

exemption under new provisions of 

Regulations 4.12 and 4.13, and to 

maintain and serve as the official 

custodian of those notices. 

Costs. With respect to costs, the 

Commission has determined that there 

will be no costs to members of the 

public or persons subject to Commission 

regulation. Any costs to NFA will be 

insignificant, inasmuch as NFA is 

already responsible for performing the 

same processing functions with respect 

to existing provisions of the same 

regulations, and it has procedures in 

place to readily accommodate the 

notices to be submitted with respect to 

Regulations 4.12(c) and 4.13(a)(5). 

Benefits. With respect to benefits, the 

Commission has determined that 

persons claiming exemption under new 

Regulations 4.12(c) and 4.13(a)(5) will 

be able to use the same procedure that 

is currently used for the other 

exemptive provisions of Part 4, and the 

Commission will not be required to 

devote any resources to performing 

functions that NFA is already 

performing. 

Issued in Washington, DC, on May 5, 2011 

by the Commission. 

David A. Stawick, 

Secretary of the Commission. 

[FR Doc. 2011–11554 Filed 5–17–11; 8:45 am] 

BILLING CODE P 

CORPORATION FOR NATIONAL AND 

COMMUNITY SERVICE 

Sunshine Act Meeting Notice 

The White House Council for 

Community Solutions gives notice of 

their following meeting: 

DATE AND TIME: Friday, June 3, 2011, 

8:30 a.m.–11:30 a.m. Eastern Daylight 

Time. 

PLACE: The Council will meet in the 

Eisenhower Executive Office Building. 

This meeting will be streamed live for 

public viewing and a link will be 

available on the council’s Web site: 

http://www.serve.gov/ 

communitysolutions. 

PUBLIC COMMENT: The public is invited 

to submit publicly available comments 

through the Council’s Web site. To send 

statements to the Council, please send 

written statements to the Council’s 

electronic mailbox at 

WhiteHouseCouncil@cns.gov. The 


srobinson on DSKHWCL6B1PROD with NOTICES