24142 Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 / Proposed Rules

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 1

Trading Hours

AGENCY: Commodity Futures Trading

Commission.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Commodity Futures

Trading Commission (‘‘Commission’’) is

proposing to amend Commission

Regulation 1.41(k) to allow additional

changes in trading hours to be deemed

approved by the Commission one

business day after receipt of written

notice of a change in accordance with

the regulation. The Commission is

publishing notice of the proposed

rulemaking and requesting public

comment.

DATES: Comments on the proposed

rulemaking must be made by May 18,

1998.

ADDRESSES: Comments should be

mailed to Jean A. Webb, Secretary,

Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21 st Street, NW, Washington, D.C.

20581; transmitted by facsimile to (202)

418–5521; or transmitted electronically

to (secretary@cftc.gov).

FOR FURTHER INFORMATION CONTACT:

Lois J, Gregory, Attorney, Contract

Markets, Division of Trading and

Markets, Commodity Futures Trading

Commission, Three Lafayette Center,

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

D.C. 20581. Telephone: (202) 418–5483.

SUPPLEMENTARY INFORMATION:

Regulation 1.41(k) allows a change in

trading hours which does not permit

trading to open before 7:00 a.m. or close

after 6:00 p.m. local time in the city

where the contract market is located to

be deemed approved by the Commission

at the close of business one business day

after properly labeled written notice of

the change is received by the

Commission if the change is not

inconsistent with the Commodity

Exchange Act or the Commission’s other

regulations. Trading hour changes

which do permit trading to open before

7:00 a.m. or close after 6:00 p.m. local

time must be submitted to the

Commission for approval pursuant to

Regulation 1.41(b).

The Commission is proposing to

amend Regulation 1.41(k) to allow

additional changes in trading hours to

be deemed approved by the Commission

one business day after receipt of written

notice of a change in accordance with

the subsection. Specifically, under the

rule as proposed to be amended, if a

contract market had previously received

Commission approval for trading

between 6:00 p.m. and 7:00 a.m. in at

least one of its designated contracts, it

could submit all subsequent changes in

trading hours pursuant to regulation

1.41(k). Thus, under 1.41(k) as proposed

to be revised, the first time a contract

market proposed changing trading hours

for any of its designated contracts to fall

between the hours of 6:00 p.m. and 7:00

a.m., the proposal would have to be

submitted to the Commission for

approval pursuant to Regulation 1.41(b).

The Commission would review such

initial proposal to ensure that adequate

systems and procedures were in place to

accommodate the expanded trading

hours. Matters to be addressed would

include, among other matters, clearing,

margin, market date, and surveillance

programs. Any subsequent change to

trading hours could then be approved

under the expedited procedures of

revised Regulation 1.41(k).

The Commission is proposing to

amend Regulation 1.41(k) in the manner

described as a result of its recent efforts

to modernize and streamline its

regulatory framework. Growth,

technological developments, and

around-the-clock trading have altered

the marketplace. The proposed

amendment to Regulation 1.41(k) is part

of the Commission’s efforts to ensure

that its rules have adapted to these

changes.

With respect to electronic trading, the

proposed amendments to Regulations

1.41(k) contemplate that listing a

contract for trading on an automated

trading system would constitute more

than a change in trading hours. It would

also be a change in the method of

trading. Accordingly, neither the initial

establishment of an electronic trading

system nor the subsequent listing of

additional contracts would be eligible

for treatment under Regulation 1.41(k).

However, changes in the trading hours

of a contract that was already listed on

an electronic system would be eligible

for treatment under revised Regulation

1.41(k).

Related Matters

A. Paperwork Reduction Act

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. While this

proposed regulation has no burden, the

group of regulations (3038–0022), of

which this is a part has the following

burden:

Average burden hours per response.3,546.26

Number of Respondents ....... 10,971

Frequency of response .......... On occasion.

Copies of the OMB approved

information collection package

associated with this regulation may be

obtained from the Desk Officer, CFTC,

Office of Management and Budget,

Room 10202, NEOB, Washington DC

20503, (202) 395–7340.

B. Regulatory Flexibility Act

The Regulatory Flexibility Act (RFA)

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

agencies, in proposing rules, consider

the impact on small businesses. The

only entity this rulemaking would affect

would be contract markets. The

Commission has previously determined

that contract markets are not ‘‘small

entities’’ for purposes of the Regulatory

Flexibility Act, (47 FR 18618 (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 would not

have a significant economic impact on

a substantial number of small entities.

List of Subjects in 17 CFR Part 1

Brokers, Commodity futures,

Consumer protection, Reporting and

recordkeeping requirements,

Segregation requirements.

In consideration of the foregoing and

pursuant to the authority contained in

the Commodity Exchange Act and, in

particular Section 8a thereof, 7 U.S.C.

12a, the Commission hereby proposes to

amend Part 1 of 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 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 1.41 is amended by revising

paragraph (k)(1) to read as follows:

1.41 Contract market rules;

submission of rules of the Commission;

exemption of certain rules.

* * * * *

(k) Trading hours. (1)

Notwithstanding the provisions of

paragraph (b) of this section and except

in connection with an initial listing of

a contract on an automated trading

system, all changes in trading hours

shall be deemed approved by the

Commission at the close of business one
Federal Register / Vol. 63, No. 84 / Friday, May 1, 1998 / Proposed Rules 24143

business day after written notice of such

a change is received by the Commission

if:

(i) The change is not inconsistent with

any provision of the Act or the

Commission’s regulations;

(ii) For a change that permits trading

anytime between 6 p.m. and 7 a.m. local

time in the city where the contract

market is located, the contract market

has previously received Commission

approval for trading between such hours

in at least one of its designated

contracts; and

(iii) The contract market labels the

written notice as being submitted

pursuant to paragraph (k) of this section.

* * * * *

Issued in Washington D.C. on April 28,

1998, by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 98–11655 Filed 4–30–98; 8:45 am]

BILLING CODE 6351–01–M

FEDERAL EMERGENCY

MANAGEMENT AGENCY

44 CFR Part 206

RIN 3067–AC69

Disaster Assistance; Hazard Mitigation

Grant Program

AGENCY: Federal Emergency

Management Agency (FEMA).

ACTION: Proposed rule.

SUMMARY: This proposed rule would

revise the categories of projects

currently eligible for funding under the

Hazard Mitigation Grant Program

(HMGP) by defining eligible mitigation

activities under the HMGP to include

nonstructural flood hazard mitigation

measures and minor flood control

projects that do not duplicate the efforts

and authorities of other Federal

agencies.

DATES: We invite comments on this

proposed rule, which may be submitted

on or before June 30, 1998.

ADDRESSES: Please send any comments

to the Rules Docket Clerk, Office of the

General Counsel, Federal Emergency

Management Agency, 500 C Street SW.,

room 840, Washington, DC 20472,

(facsimile) (202) 646–4536, or (email)

rules@fema.gov.

FOR FURTHER INFORMATION CONTACT:

Robert F. Shea, Mitigation Directorate,

Federal Emergency Management

Agency, 500 C Street SW., Washington,

DC 20472, (202) 646–3619, (facsimile)

(202) 646–3104.

SUPPLEMENTARY INFORMATION:

Background

In December 1993, the President

signed the Hazard Mitigation and

Relocation Assistance Act, which

amended § 404 of the Robert T. Stafford

Disaster Relief and Emergency

Assistance Act (Stafford Act), 42 U.S.C.

5170c. This amendment provides

legislative authority to use the majority

of mitigation funding available from

flood disasters to undertake

nonstructural floodplain management

measures.

Nonstructural Measures

Authorized by § 404 of the Stafford

Act, the HMGP provides States and

local governments financial assistance

to implement measures that

permanently reduce or eliminate future

damages and losses from natural

hazards. In response nonstructural

measures are FEMA’s first priority when

grantees use Hazard Mitigation Grant

Program funds to address a flood

hazard. Our experience with the use of

nonstructural flood hazard mitigation

measures by acquiring, elevating, and

floodproofing high-risk structures

sharply reduces the number of

structures in harm’s way. Advantages of

this approach include substantial

environmental and hydrologic benefits.

This proposed rule would modify the

list of eligible types of projects and

clarify types of activities that are eligible

under the program, and would reflect

FEMA’s multi-hazard program

objectives and priorities. FEMA would

include development and initial

implementation of vegetation

management programs for wildfire

hazard mitigation and erosion hazard

mitigation in the list of eligible

activities. Routine maintenance and

landscaping activities would not be

eligible. Vegetation management can

reduce the volume and continuity of

flammable vegetation in order to slow or

prevent the spread of wildfire from

vegetation to developed properties and

to improve the potential effectiveness of

wildfire suppression activities.

Vegetation management can also reduce

costs associated with erosion from

floods and severe storms.

Vegetation management programs

often require significant regular

maintenance in order to preserve their

hazard mitigation benefits. Such

maintenance would be the

responsibility of the subgrantee. Before

approving a grant FEMA or the State

may require a maintenance plan and

commitment by the subgrantee

accepting responsibility for the

maintenance.

The list of eligible HMGP projects

provided for under subsection (c) is not

all-inclusive, but provides a general

overview of potential project categories

and clarifies that major structural flood

control projects would not be

considered for funding under the

HMGP. Applicants may propose project

types not listed for funding

consideration.

Warning Systems

While ‘‘Development or improvement

of warning systems’’ has been removed

from the list of eligible project type

examples in the rule, FEMA will

continue to entertain applications for

such projects under the Five Percent

Initiative. The five percent initiative

provides the State greater flexibility

over the approval of HMGP projects up

to five percent of the available program

funding. FEMA’s guidance for

implementing the initiative specifically

indicates that warning systems, which

are difficult to evaluate against HMGP

eligibility criteria, are appropriately

funded within the five percent

initiative.

Structural Assistance

FEMA recognizes that dikes, levees,

dams, channelization, channel

widening, stream realignment, seawalls,

groins, and jetties continue to serve as

a means to minimize vulnerability to

hazards under certain circumstances.

These structures fall traditionally under

the water resources design and

construction authorities of the U.S.

Army Corps of Engineers and the

Natural Resources Conservation Service

of the U.S. Department of Agriculture.

Both of those agencies have extensive

experience assisting in the planning,

design, and construction of major

structural projects. FEMA has limited

experience with major structural flood

control projects. Rather than duplicate

assistance available from other Federal

agencies, FEMA limits its flood control

assistance to minor flood control

projects and localized protection of

critical facilities that generally do not

fall under the authority of other Federal

agencies.

Minor Flood Control Projects

The most common activities under

the minor flood control project category

include modification of existing culverts

and bridges; upgrades of storm drainage

systems; installation of floodgates; and

creation of small retention or detention

basins. Based on these types of projects,

the term ‘‘minor flood control projects’’

refers to the limited scope of a project’s

impact upon the floodplain that would

lessen the frequency or severity of