Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Rules and Regulations 16687

1Commission rule 30.1(a), 17 CFR 30.1(a), defines

the term ‘‘foreign futures’’ as ‘‘any contract for the

purchase or sale of any commodity for future

delivery made, or to be made, on or subject to the

rules of any foreign board of trade.’’

Commission rule 30.1(b), 17 CFR 30.1(b), defines

the term ‘‘foreign option’’ as ‘‘any transaction or

agreement which is or is held out to be of the

character of, or is commonly known to the trade as,

an ‘‘option,’’ ‘‘privilege,’’ ‘‘indemnity,’’ ‘‘bid,’’

‘‘offer,’’ ‘‘put,’’ ‘‘call,’’ ‘‘advance guaranty,’’ or

‘‘decline guaranty,’’ made on or subject to the rules

of any foreign board of trade.’’

APPENDIX—LIST OF COMMENTERS AND ABBREVIATIONS—Continued

Abbreviation No. Commenter

Wright .......................................................... 259 Wright & Lato, Inc.

Wright’s ........................................................ 69 Wright’s Jewelers.

Wyman ........................................................ 358 Wyman Jewelers, Inc.

Yanke .......................................................... 717 Yanke Designs.

York ............................................................. 756 Christine York.

Zane ............................................................ 542 Zane Design.

Zerbe ........................................................... 293 Zerbe Jewelers Inc.

Zimmer ........................................................ 230 Zimmer Brothers.

Zoltan ........................................................... 134 Zoltan David.

[FR Doc. 97–8942 Filed 4–7–97; 8:45 am]

BILLING CODE 6750–01–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 30

Foreign Futures and Option

Transactions

AGENCY: Commodity Futures Trading

Commission.

ACTION: Order.

SUMMARY: The Commodity Futures

Trading Commission (‘‘Commission’’ or

‘‘CFTC’’), subject to the conditions

specified below, is:

granting an exemption to designated

members of the MEFF Sociedad Rectora de

Productos Financieros Derivados de Renta

Variable (the ‘‘Exchange’’ or ‘‘MEFF Renta

Variable’’) of Spain from the application of

certain of the Commission’s foreign futures

and option rules based on substituted

compliance with certain comparable

regulatory and self-regulatory requirements

of a foreign regulatory authority.

This Order is issued pursuant to

Commission rule 30.10, 17 CFR 30.10,

which allows certain persons to petition

the Commission for exemption from the

application of certain of the rules set

forth in Part 30, and authorizes the

Commission to grant such petition if the

exemption is not otherwise contrary to

the public interest or to the purposes of

the provisions from which exemption is

sought.

EFFECTIVE DATE: May 8, 1997.

FOR FURTHER INFORMATION CONTACT: Jane

C. Kang, Esq., or Robert H. Rosenfeld,

Esq., Division of Trading and Markets,

Commodity Futures Trading

Commission, Three Lafayette Centre,

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

D.C. 20581. Telephone: (202) 418–5430.

SUPPLEMENTARY INFORMATION: On July

23, 1987, the Commission adopted final

rules governing the domestic offer and

sale of commodity futures and option

contracts traded on or subject to the

rules of a foreign board of trade. 52 FR

28980 (August 5, 1987). These rules,

which are codified in Part 30 of the

Commission’s regulations, 17 CFR Part

30, generally extend the Commission’s

existing customer protection regulations

for products offered or sold on contract

markets in the United States to foreign

futures and option products 1 sold to

United States customers by imposing

requirements with respect to

registration, disclosure, capital

adequacy, protection of customer funds,

recordkeeping and reporting, sales

practice and compliance procedures

that are generally comparable to those

applicable to wholly domestic

transactions.

In formulating a regulatory program to

govern the offer and sale of foreign

futures and option products to United

States customers, the Commission,

among other things, considers the

potential extraterritorial impact of such

a program and the desirability of

avoiding duplicative regulation of firms

engaged in international business. Based

upon these considerations, the

Commission, as set forth in Commission

rule 30.10, determined to permit

persons located outside the United

States and subject to a comparable

regulatory structure in the jurisdiction

in which they are located to seek an

exemption from certain of the

requirements imposed by the Part 30

rules based upon substituted

compliance with the comparable

regulatory requirements imposed by the

foreign jurisdiction.

In issuing orders under rule 30.10, the

Commission evaluates whether the

particular foreign regulatory program

provides a basis for permitting

substituted compliance for purposes of

exemptive relief pursuant to

Commission rule 30.10. The specific

elements examined are set forth in

Appendix A to Part 30, ‘‘Interpretative

Statement With Respect to the

Commission’s Exemptive Authority

Under Section 30.10 of Its Rules’’

(‘‘Appendix A’’). 17 CFR Part 30,

Appendix A. These elements include:

(1) Registration, authorization or other

form of licensing, fitness review or

qualification of persons (both

individuals and firms) through which

customer orders are solicited and

accepted; (2) minimum financial

requirements for those persons who

accept customer funds; (3) protection of

customer funds from misapplication; (4)

minimum sales practice standards,

including the disclosure of the risks of

futures transactions; (5) recordkeeping

and reporting requirements; (6)

procedures to audit for compliance

with, and to take action against those

persons who violate, the requirements

of the program; and (7) the existence of

appropriate information-sharing

arrangements. The Commission may

apply additional conditions to ensure

that brokers licensed under other

regulatory regimes are not permitted to

solicit U.S. customers while effectively

evading U.S. requirements, such as

those relative to statutory

disqualification.

Moreover, the Commission

specifically stated in adopting rule

30.10 that no exemption based on

substituted compliance of a general

nature would be granted unless the

persons to whom the exemption is to be

applied: (1) Consent to jurisdiction in

the United States and designate an agent

for service of process in the United

States with respect to transactions

subject to Part 30 by filing a copy of the

relevant agency agreement with the

National Futures Association (‘‘NFA’’);

(2) agree to make their books and

records available in the United States to

Commission and Department of Justice

representatives; and (3) notify NFA of
16688 Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Rules and Regulations

2 52 FR 28980, 28981 and 29002.

3Letter dated July 9, 1995 from Jose Massa,

Director General and C.E.O., MEFF Renta Variable,

to Jane C. Kang, CFTC Division of Trading and

Markets.

4On August 8, 1994 the Commission’s Office of

the General Counsel authorized the offer and sale

in the United States of the MEFF Renta Variable

stock index futures on the IBEX–35. By letter dated

December 4, 1996, the Exchange notified the

Commission’s Office of the General Counsel of

certain modifications to the terms and conditions of

the IBEX–35 contract, which has been renamed the

IBEX–35 Plus (replacing the IBEX–35).

5The Part 30 rules apply solely with respect to

foreign futures and foreign options, which are

defined by reference to the term ‘‘foreign board of

trade.’’ See note 1 above. For purposes of this

Order, the term ‘‘foreign board of trade’’ shall mean

any board of trade, exchange or market located

outside the United States, its territories or

possessions, whether incorporated or

unincorporated, where foreign futures or foreign

options transactions are entered into. Commission

rule 1.3(ss), 17 C.F.R. 1.3(ss). Thus, contracts that

are traded on a market that has been designated as

a contract market pursuant to section 5a of the

Commodity Exchange Act (CEA) are not within the

scope of this Order.

This order granting exemptive relief does not

authorize the offer or sale of any contract beyond

the scope of the Part 30 rules or otherwise

inconsistent with the CEA. Thus, for example, the

grant of rule 30.10 relief does not authorize MEFF

Renta Variable members to offer or sell to U.S.

customers any options on any individual securities

or any options directly on the IBEX–35 Plus Index

which are traded on the Exchange. Nor does this

relief authorize the offer and sale of any stock index

product which has not been the subject of a

Commission staff no-action letter.

6See MEFF Renta Variable, November 26, 1996,

and CNMV, February 29, 1996.

the commencement or termination of

business in the United States.2

By letter dated July 28, 1995,3 the

Exchange requested that the

Commission exempt under Commission

rule 30.10 certain members of the

Exchange from compliance with Part

30’s registration and other requirements

with respect to brokerage activities

undertaken on behalf of customers in

the United States involving futures

products and options thereon

authorized for sale to U.S. customers.

Currently, such products are the IBEX–

35 Plus futures contracts and options

thereon 4 traded on or subject to the

rules of MEFF Renta Variable.5

ORDER: The Commission is hereby

issuing the following order:

ORDER UNDER CFTC RULE 30.10

EXEMPTING DESIGNATED MEMBERS OF

THE MEFF RENTA VARIABLE FROM THE

APPLICATION OF CERTAIN OF THE

FOREIGN FUTURES AND OPTION RULES

THE LATER OF THIRTY DAYS AFTER

PUBLICATION OF THE ORDER HEREIN IN

THE FEDERAL REGISTER OR AFTER THE

FILING OF RELEVANT CONSENTS BY

MEMBERS OF THE EXCHANGE AND

EXCHANGE UNDER THE TERMS AND

CONDITIONS OF THIS ORDER.

The Commission has reviewed the

information and representations

contained in, among other things, the

following submissions:

—Petition dated July 28, 1995;

—Letter dated November 26, 1996 and

attachments from Jose Massa, Director

General and C.E.O., MEFF Renta Variable

(‘‘MEFF Renta Variable, November 26,

1996’’) which specifically incorporates by

reference the following material previously

submitted in connection with the

application of MEFF Renta Fija for rule

30.10 relief and confirming that any

representations or undertakings made in

those documents will apply equally to

MEFF Renta Variable:

—Petition dated May 14, 1993 from MEFF

Renta Fija;

—The Spanish Securities Market Act 24/

1988;

—Royal Decree 1814 Governing Official

Futures and Options Markets;

—Royal Decree 629/1993 of May 3, 1993

‘‘Concerning the Regulations Governing

Participation in the Stock Markets and

Obligatory Registers of Transactions;’’

—MEFF Renta Variable Articles of

Association (1992);

—MEFF Renta Variable Rules and

Regulations;

—Letters dated October 1, 8, and 15, 1993;

December 23, 1993; August 26, 1994;

December 20, 1994; and January 31, 1995,

from Philip McBride Johnson, Skadden,

Arps, Slate, Meagher & Flom, counsel for

the Exchange;

—Letters dated May 19, 1994 and September

28, 1994 from the Comision Nacional del

Mercado de Valores (‘‘CNMV’’); and

—Letter dated January 12, 1995 from MEFF

Renta Fija.

The above letter dated November 26, 1996

further confirmed the accuracy and

application of statements concerning

exchange operations and regulation made in

the Division’s Memorandum dated April 24,

1995 regarding MEFF Renta Fija’s rule 30.10

application to MEFF Renta Variable, and

specifically undertook certain undertakings

with respect to information sharing.

—Letter dated February 29, 1996 and

attachments, from the Comision Nacional

del Mercado de Valores (‘‘CNMV, February

29, 1996’’), specifically confirming the

continued applicability of all

representations previously made by the

CNMV to the Division in connection with

the application of MEFF Renta Fija for rule

30.10 relief to the application of MEFF

Renta Variable.

Based upon its review of the above

supporting materials as set forth in the

Division’s memorandum dated March

24, 1997, the Division’s memorandum

dated April 24, 1995 in connection with

MEFF Renta Fija which, subject to

certain clarifications submitted by

MEFF Renta Variable and the CNMV,

continues to accurately describe the

operation of and regulatory structure

applicable to MEFF Renta Variable,6 and

subject to the conditions set forth below,

the Commission has determined to issue

this Order which will become effective

the later of thirty days after publication

of this Order in the Federal Register or

the filing of consents by members of the

Exchange and the Exchange to the terms

and conditions of the Order herein.

Subject to the conditions set forth

below, the Commission concludes that

the standards for relief set forth in

Commission rule 30.10 and, in

particular, Appendix A thereof, have

generally been satisfied and that

compliance with the SMA, R.D. 1814,

R.D. 629 and MEFF Renta Variable and

CNMV rules may be substituted for

compliance with certain sections of the

Act as more particularly set forth herein.

By this Order, the Commission hereby

exempts, subject to specified conditions,

those firms identified to the

Commission as eligible for the rule

30.10 relief granted herein from

registration with the Commission based

upon substituted compliance by such

firms with the applicable statutes and

relevant Exchange and other rules in

effect in Spain.

This determination to permit

substituted compliance is based on,

among other things, the Commission’s

finding that the regulatory scheme

governing the persons trading on the

Exchange who would be exempted

hereunder provides:

(1) A system of qualification or licensing of

firms and persons who deal in transactions

subject to regulation under Part 30 that

includes, for example, criteria and

procedures for granting, monitoring,

suspending and revoking licenses, and

provisions for requiring and obtaining access

to information about licensees;

(2) Financial requirements for licensees;

(3) A system for the protection of customer

funds that applies to all customers and which

requires the separate accounting for such

funds, augmented by funds designed to

compensate customers who have suffered a

loss as a result of fraud or insolvency or other

failure of an Exchange member;

(4) Recordkeeping and reporting

requirements pertaining to financial and

trade information including, without

limitation, order tickets, trade confirmations,

customer account statements, customers’

deposit records, and accounting records for

customer and proprietary trades;

(5) Sales practice standards for licensees

which include, for example, required

disclosures to prospective customers and

prohibitions on (a) certain representations,

(b) conflicts of interest, and (c) improper

trading activities;

(6) Procedures to audit for compliance

with, and to redress violations of, customer

protection and sales practice requirements

including, without limitation, a surveillance

program and the existence of broad powers

to conduct investigations and to impose

sanctions; and

(7) Mechanisms for sharing information

between the Exchange and the CNMV and

the Commission on an ‘‘as needed’’ basis
Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Rules and Regulations 16689

7The Exchange and its regulator, CNMV, have

provided assurances to the Commission, subject to

certain agreed upon principles, regarding the

availability of information relevant to Part 30 on an

‘‘as needed’’ basis. See MEFF Renta Variable,

November 26, 1996; CNMV, February 29, 1996, and

letter May 19, 1994 from Eudald Canadell, CNMV,

to Andrea M. Corcoran, CFTC (confirming that

information may be shared between the CFTC and

the CNMV pursuant to the Memorandum of

Understanding on Mutual Assistance and Exchange

of Information of October 1992).

8These rules essentially provide that delivery of

a mandated risk disclosure statement does not

eliminate any obligation under the Act to disclose

all material information to existing or prospective

customers even if the information is not specifically

required by the applicable risk disclosure rule.

9All firms operating under rule 30.10 relief may

elect to provide the generic risk disclosure

statement approved by the CFTC in 1994, in lieu

of separately providing the disclosure statements

required by CFTC rules 1.55, 33.7, 190.10(c) and the

special disclosures required for margining of option

premiums. See 59 FR 34376 (July 5, 1994).

including, without limitation, confirmation

data, data necessary to trace funds, position

data, data on firms’ standing to do business

and financial condition, and mechanisms for

cooperating with the Commission in

inquiries, compliance matters, investigations

and enforcement proceedings.7

This Order does not provide an

exemption from any provision of the

Act or regulations thereunder not

specified herein, for example, without

limitation, the antifraud provision in

Commission rule 30.9, 17 CFR 30.9, or

the disclosure provisions of

Commission rules 1.55, 30.6, and 33.7,

17 CFR 1.55, 30.6 and 33.7, including

the requirements of rule 1.55(f), 30.6(e),

and 33.7(f).8 Moreover, the relief granted

is limited to brokerage activities

undertaken on behalf of customers in

the United States with respect to

transactions on or subject to the rules of

MEFF Renta Variable, and which U.S.

customers may trade.

The relief does not extend to rules or

regulations relating to trading, directly

or indirectly, on United States

exchanges. For example, such a firm

trading in United States markets for its

own account would be subject to the

Commission’s large trader reporting

requirements. See, e.g., 17 CFR Part 18.

Similarly, if such a firm were carrying

a position on a United States exchange

on behalf of foreign clients, it would be

subject to the reporting requirements

applicable to foreign brokers. See, e.g.,

17 CFR Parts 17 and 21. The relief

herein does not apply to firms that

solicit United States customers for

transactions on United States markets.

The eligibility of any firm to seek rule

30.10 relief under this exemptive Order

is subject to the following conditions:

(1) The regulatory or self-regulatory

organization responsible for monitoring the

compliance of such firm with the regulatory

requirements described in the rule 30.10

petition must represent in writing to the

CFTC that:

(a) Each firm for which relief is sought is

registered, licensed or authorized, as

appropriate, and is otherwise in good

standing under the standards in place in

Spain; such firm is engaged in business with

customers located in Spain as well as in the

United States; and, such firm would not be

statutorily disqualified from registration

under section 8a(2) of the CEA, 7 U.S.C.

12(a)(2);

(b) It will monitor firms to which relief is

granted for compliance with the regulatory

requirements for which substituted

compliance is accepted and will promptly

notify the Commission or NFA of any change

in status of a firm which would affect its

continued eligibility for the exemption

granted hereunder, including the termination

of its activities in the United States;

(c) All transactions on the Exchange with

respect to customers resident in the United

States will be made on or subject to the rules

of the Exchange and the Commission will

receive prompt notice of all material changes

to MEFF Renta Variable rules, the SMA and

other laws relevant to futures and options

(e.g., Royal Decree 1814 and Royal Decree

629);

(d) Customers resident in the United States

will be provided no less stringent regulatory

protection than Spanish customers under all

relevant provisions of Spanish law; and

(e) It will cooperate with the Commission

with respect to any inquiries concerning any

activity subject to regulation under the Part

30 rules, including sharing the information

specified in Appendix A to the Part 30 rules

on an ‘‘as needed’’ basis in accordance with

the agreed information sharing arrangement

and will use its best efforts to notify the

Commission if it becomes aware of any

information which in its judgment affects the

financial or operational viability of a

Spanish-domiciled firm doing business in the

United States under the exemption granted

by this Order.

(2) Each firm seeking rule 30.10 relief

hereunder must apply in writing

whereby it:

(a) Consents to jurisdiction in the United

States under the Act and files a valid and

binding appointment of an agent in the

United States for service of process in

accordance with the requirements set forth in

Commission rule 30.5, 17 CFR 30.5;

(b) Acknowledges that it can be required by

the Exchange to provide the Exchange

immediate access to its books and records

related to transactions under Part 30 required

to be maintained under the applicable laws

and Exchange rules in effect in Spain and

that the Exchange will cooperate in providing

access to such books and records to the

Commission in accordance with the agreed

upon information sharing arrangement;

(c) Represents that no principal, and no

employee who solicits or accepts orders from

United States customers, would be

disqualified from directly applying to do

business in the United States under section

8a(2) of the CEA, 7 USC 12a(2), and consents

to notify the Commission promptly of any

change in that representation based on a

change in control as generally defined in

Commission rule 3.32, 17 CFR 3.32;

(d) Consents that all futures or options

transactions for customers located in the

United States will be undertaken from a

location in Spain (except as otherwise

permitted by the Commission) solely with

respect to transactions on or subject to the

rules of MEFF Renta Variable, and which

U.S. customers may trade;

(e)(1) If a Clearing Member of the Exchange

which carries the accounts of customers

located in the United States: agrees to

maintain funds equivalent to the aggregate

‘‘secured amount’’ (described in Commission

rule 1.3(rr), 17 CFR 1.3(rr)), for all United

States customers in a separate account as set

forth in Commission rule 30.7, 17 CFR 30.7,

and to treat those funds in the manner

described by that rule;

(e)(2) If a Non-Clearing Member of the

Exchange: agrees to comply with relevant

Spanish laws and Exchange rules prohibiting

them from accepting or otherwise handling

customer funds;

(f) Agrees to provide customers with

account statements on at least a monthly

basis;

(g) Discloses the identity of each subsidiary

or affiliate domiciled in the United States

with a related business (e.g., banks and

broker/dealer affiliates) and provides a brief

description of such subsidiary’s or affiliate’s

principal business in the United States;

(h)(1) Consents to participate in any NFA

arbitration program which offers a procedure

for resolving customer disputes on the papers

where such disputes involve representations

or activities with respect to transactions

under Part 30, and consents to notify

customers resident in the United States of the

availability of such a program: Provided,

however, that the firm may require its

customers resident in the United States to

execute the consent attached hereto as

Exhibit A concerning the exhaustion of

certain mediation procedures made available

by the Exchange prior to bringing an NFA

arbitration proceeding; and Provided further

that the firm must undertake to provide the

customer with information concerning how

to commence such procedures pursuant to

the consent attached hereto as Exhibit A;

(h)(2) Provided, however, that until the

Exchange adopts a procedure for an ‘‘on the

papers’’ hearing applicable to all Exchange

arbitrations, consents to notify such

customers that if they elect Exchange

arbitration, they or their agent could be

required to appear personally at a hearing,

and if the customer elects NFA arbitration,

consents to participate in such proceeding

even in circumstances where the dispute

arises primarily out of delivery, clearing,

settlement or floor practices;

(i) Undertakes to comply with the

applicable provisions of Spanish law and

Exchange and CNMV rules which form the

basis upon which this exemption from

certain provisions of the Act is granted; and

(j) Agrees to provide to any U.S. customers

either the generic risk disclosure statement

approved by the Commission under rule

1.55(c) or, if a generic statement is not used,9

in the alternative the risk disclosure
16690 Federal Register / Vol. 62, No. 67 / Tuesday, April 8, 1997 / Rules and Regulations

10See, e.g., CFTC Advisory No. 90–1 [1987–1990

Transfer Binder] Comm. Fut. L. Rep. (CCH) ¶ 24,597

(disclosure statement related to the deferred

payment of option premiums).

1The Filer Manual originally was adopted on

April 1, 1993, and became effective on April 26,

1993. Release No. 33–6986 (April 1, 1993) [58 FR

18638]. The most recent update to the Filer Manual

was adopted in Release No. 33–7394 (February 21,

1997) [62 FR 8877], and became effective on March

10, 1997. On March 19, 1997, the Commission

issued a release correcting and delaying the

implementation of the EDGAR Filer Manual. See

Release No. 33–7405 (March 19, 1997) 62 FR 13820

(March 24, 1997).

statements mandated by Commission rules

30.6(a) [i.e., 1.55(a)] and 33.7 (see rule

30.6(d)), Commission rule 190.10 (c)(2) and

applicable Commission orders, as

appropriate.10

Upon filing of the notice required

under paragraph (1)(b) as to any such

firm, the rule 30.10 relief granted by this

Order may be suspended immediately

as to that firm. That suspension will

remain in effect pending further notice

by the Commission, or the

Commission’s designee, to the firm and

the Exchange and/or any applicable

regulatory or self-regulatory

organization.

Any material changes or omissions in

the facts and circumstances pursuant to

which this Order is granted might

require the Commission to reconsider its

finding that the standards for issuance

of an order under Commission rule

30.10, including Appendix A of rule

30.10, have generally been satisfied.

Further, if experience demonstrates

that the continued effectiveness of this

Order in general, or with respect to a

particular firm or product, would be

contrary to public policy or the public

interest, or that the systems in place for

the exchange of information or other

circumstances do not warrant

continuation of the exemptive relief

granted herein, the Commission may

condition, modify, suspend, terminate,

withhold as to a specific firm or

product, or otherwise restrict the

exemptive relief granted in this Order,

as appropriate, on its own motion. If

necessary, provisions will be made for

servicing existing client positions.

List of Subjects in 17 CFR Part 30

Commodity futures, Commodity

options, Foreign futures and options.

Accordingly, 17 CFR part 30 is

amended as set forth below:

PART 30—FOREIGN FUTURES AND

FOREIGN OPTIONS TRANSACTIONS

1. The authority citation for part 30

continues to read as follows:

Authority: Secs. 2(a)(1)(A), 4, 4c, and 8a of

the Commodity Exchange Act, 7 U.S.C. 2, 6,

6c, and 12a.

2. Appendix C to part 30 is amended

by adding the following entry to read as

follows:

Appendix C—Foreign Petitioners

Granted Relief From the Application of

Certain of the Part 30 Rules Pursuant to

§ 30.10

* * * * *

Firms designated by the MEFF Sociedad

Rectora de Productos Financieros Derivados

de Renta Variable (‘‘MEFF Renta Variable.’’)

FR date and citation: llllllll,

1997, llllllllFRllllllll.

Issued in Washington, D.C., on April 1,

1997.

Jean A. Webb,

Secretary to the Commission.

Exhibit A—Form of Consent to

Undertake Mediation Prior to NFA

Arbitration

In the event that a dispute arises between

you [name of customer resident in the United

States] and [name of MEFF Renta Variable

member firm] with respect to transactions

subject to Part 30 of the Commodity Futures

Trading Commission’s rules, various forums

may be available for resolving the dispute,

including courts of competent jurisdiction in

the United States and Spain and arbitration

programs made available both in the United

States and Spain.

In the event you wish to initiate an

arbitration proceeding against this firm to

resolve such dispute under the applicable

rules of the National Futures Association

(‘‘NFA’’) in the United States, you hereby

consent that you will first commence

mediation in accordance with such

procedures as may be made available by the

MEFF Sociedad Rectora de Productos

Financieros Derivados de Renta Variable

(‘‘MEFF Renta Variable’’ or ‘‘Exchange’’),

information on which is provided to you

herewith. The outcome of such MEFF Renta

Variable mediation is nonbinding. You may

subsequently accept this resolution, or you

may proceed either to binding arbitration

under the rules of the MEFF Renta Variable

or to binding arbitration in the United States

under the rules of NFA. If you accept the

mediated resolution or elect to proceed to

arbitration, or to any other form of binding

resolution under the rules of the Exchange,

you will be precluded from subsequently

initiating an arbitration proceeding at NFA.

You may initiate an NFA arbitration

proceeding upon receipt of documentation

from MEFF Renta Variable:

(1) Evidencing completion of the mediation

process and reminding you of your right of

access to NFA’s arbitration proceeding; or

(2) Representing that more than nine

months have elapsed since you commenced

the mediation process and that such process

is not yet complete and reminding you of

your right of access to NFA’s arbitration

proceeding.

The documentation referred to above must

be presented to NFA at the time you initiate

the NFA arbitration proceeding. NFA will

exercise its discretion not to accept your

demand for arbitration absent such

documentation.

By signing this consent you are not

waiving any other right to any other legal

remedies available under the law.

lllllllllllllllllllll

Customer

lllllllllllllllllllll

Date

[FR Doc. 97–8872 Filed 4–7–97; 8:45 am]

BILLING CODE 6351–01–P

SECURITIES AND EXCHANGE

COMMISSION

17 CFR Part 232

[Release Nos. 33–7411; 34–38465; 35–

26699; 39–2351; IC–22595]

RIN 3235–AG96

Adoption of Updated EDGAR Filer

Manual; Correction and Further Delay

of Implementation

AGENCY: Securities and Exchange

Commission.

ACTION: Final rule; correction and

further delay of implementation.

SUMMARY: The Commission is

postponing the implementation of an

updated edition of the EDGAR Filer

Manual which was published in the

Federal Register on February 27, 1997

(62 FR 8877) and March 24, 1997 (62 FR

13820) in order to resolve technical

issues, resulting from a power outage,

that delayed system implementation

from March 24, 1997 to April 14, 1997

and is correcting a typographical error

in an instruction to the amendatory

language for § 232.301.

DATES: The correction to § 232.301 is

effective March 10, 1997. The

implementation of the new edition of

the EDGAR Filer Manual is delayed

until April 14, 1997.

FOR FURTHER INFORMATION CONTACT:

In the Office of Information Technology,

David T. Copenhafer at (202) 942–8800;

for questions concerning investment

company filings, Ruth Armfield

Sanders, Senior Counsel, Division of

Investment Management, at (202) 942–

0591; and for questions with respect to

documents subject to review by the

Division of Corporation Finance,

Margaret R. Black at (202) 942–2940.

SUPPLEMENTARY INFORMATION: On

February 21, 1997, the Commission

announced the adoption of an updated

EDGAR Filer Manual (‘‘Filer Manual’’),

which sets forth the technical formatting

requirements governing the preparation

and submission of electronic filings

through the Electronic Data Gathering,

Analysis, and Retrieval (‘‘EDGAR’’)

system.1 Compliance with the

provisions of the Filer Manual is

required in order to assure the timely