[Federal Register Volume 63, Number 14 (Thursday, January 22, 1998)]
[Proposed Rules]
[Pages 3285-3289]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-1138]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 140


Requests for Exemptive, No-Action and Interpretative Letters

AGENCY: Commodity Futures Trading Commission.

ACTION: Proposed rule.

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SUMMARY: The Commodity Futures Trading Commission (``Commission'') is 
proposing new regulations to establish procedures for the filing of 
requests for the issuance of exemptive, no-action and interpretative 
letters from the Commission's staff.

DATES: Comments on the proposed rule must be received on or before 
March 23, 1998.

ADDRESSES: Comments on the proposed rule should be sent to Jean A. 
Webb, Secretary, Commodity Futures Trading Commission, Three Lafayette 
Center, 1155 21st Street, N.W., Washington, D.C. 20581. Comments may be 
sent by facsimile transmission to (202) 418-5528, or by e-mail to 
<a href="/cdn-cgi/l/email-protection#cab9afa9b8afbeabb8b38aa9acbea9e4ada5bc"><span class="__cf_email__" data-cfemail="1e6d7b7d6c7b6a7f6c675e7d786a7d30797168">[email protected]</span></a>. Reference should be made to ``Rule Proposal Re: 
Requests for Exemptive, No-Action, and Interpretative Letters.''

FOR FURTHER INFORMATION CONTACT: Christopher W. Cummings, Special 
Counsel, or Helene D. Schroeder, Attorney-Adviser, Division of Trading 
and Markets, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street, N.W., Washington, D.C., 20581. Telephone: 
(202) 418-5450.

SUPPLEMENTARY INFORMATION:

I. Requests for Exemptive, No-Action and Interpretative Letters

A. Background

    In the course of administering the Commodity Exchange Act (``Act'') 
\1\ and the rules, regulations and orders promulgated thereunder by the 
Commission,\2\ Commission staff receive written requests for advice on 
or interpretation of particular provisions of the Act or Commission 
rules to proposed conduct or transactions. If appropriate, Commission 
staff provide the advice or guidance sought through the issuance of 
exemptive, no-action or interpretative letters (``Letters'').\3\ 
Currently, there are no Commission rules setting forth procedures for 
requests for Letters.\4\
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    \1\ 7 U.S.C. Sec. 1 et seq. (1994).
    \2\ Commission regulations are found at 17 C.F.R. Ch. I et seq.
    \3\ These types of letters are proposed to be defined in Rule 
140.99 (a)(1), (a)(2), and (a)(3), respectively, and each is 
discussed in Part b, below.
    \4\ By contrast, since 1971, the Securities and Exchange 
Commission (``SEC'') has required conformity with certain procedures 
by persons submitting requests for no-action or interpretative 
letters. See Securities Act Release No. 5127, 36 FR 2600 (Jan. 25, 
1971) (prescribed procedures for requests under the Securities Act 
of 1933, Securities Exchange Act of 1934, Public Utility Holding 
Company Act of 1935, Trust Indenture Act of 1939, Investment Company 
Act of 1940 and Investment Advisers Act of 1940). Some of these 
procedures have been modified or supplemented by SEC staff. See, 
e.g., Securities Act Release No. 6253, 45 FR 72644 (Oct. 28, 1980) 
(institution of abbreviated response procedures by Division of 
Corporation Finance); and Securities Act Release No. 6269 (Dec. 5, 
1980) (institution of seven-copy requirement for requests to 
Division of Corporation Finance).
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    The Commission is of the view that establishment of uniform 
procedural rules governing these requests will significantly assist the 
Commission and its staff by assuring a focused presentation of the 
guidance sought, the issues raised thereby, and relevant precedent. The 
Commission is therefore now proposing uniform procedures for the filing 
of requests for exemptive, no-action or interpretative letters. These 
procedures are intended to elicit from the outset the information that 
staff will need to evaluate a request, and to minimize staff resources 
expended in seeking additional information.
    Letters generally should be requested from (and, if appropriate, 
issued by) Commission staff in instances where the need for guidance or 
clarification of a rule's applicability arises from relatively routine 
circumstances. The Commission believes that the best mechanism for 
handling novel or complex issues, significant gaps in regulatory 
coverage, relief from regulatory requirements or initiatives for 
regulatory reform generally is the notice and comment rulemaking 
process or, where appropriate, exemptive action by the Commission 
itself after notice and public comment. This is especially true where a 
perceived issue is likely to affect a large number of persons or 
entities. Accordingly, the Commission reminds registrants, counsel and 
the public that it is receptive to public and industry input 
(including, for example, petitions for rulemaking actions and petitions 
for Commission exemptive action or other orders) in the continuing 
process of adapting its regulatory frame-work to changing market 
circumstances. The Commission also notes that, notwithstanding the 
requirements for Letters set forth herein, registrants, other industry 
participants, counsel and members of the public should feel free to 
seek information from Commission staff in those situations where they 
do not require no-action relief, or a formal interpretation of 
statutory or regulatory provisions.
    Although not required to do so (see II. Related Matters, below), 
the Commission invites public comment on this proposal.

B. The Proposed Rule

1. Definitions
    Paragraph (a) of the proposed rule sets forth definitions for 
exemptive, no-action and interpretative letters. The term ``exemptive'' 
letter is defined as a written grant of relief to a specified person 
from the applicability of a specific provision of the Act or a 
Commission rule, regulation or order. Exemptive letters may be issued 
by Commission staff only in those situations where: (a) the Commission 
itself has exemptive authority; and (b) that authority has been 
delegated to staff.\5\
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    \5\ The proposed rule governs requests submitted to and 
processed by Commission staff. In certain circumstances, however, 
requests must be submitted to and processed by the Commission 
itself. For example, where exemptive authority has not been 
delegated to the staff, exemptive relief must be granted by 
Commission order (e.g., under Section 4(c) of the Act, 7 U.S.C. 
Sec. 6(c) (1994)). The Commission intends that persons making 
exemption requests of it should comply with the requirements of the 
applicable section of the Act or Commission rules, regulations or 
orders, although paragraphs (b), (c), (f) and (h) of the proposed 
rule provide some useful guidance for such requests.
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    A ``no-action'' letter is defined as a written statement that staff 
of a specific division will not recommend enforcement action to the 
Commission if a proposed transaction is undertaken or a proposed 
activity is conducted. A no-action letter represents the position of 
only the division issuing it and is binding only upon that division and 
not

[[Page 3286]]

on the Commission or other divisions. Further, a no-action letter is 
only effective with respect to the person or persons to whom it was 
issued.
    An ``interpretative'' letter refers to written advice or guidance 
with respect to the interpretation of a specific provision of the Act 
or a specific Commission rule, regulation or order, which advice or 
guidance is provided in the context of a proposed transaction or 
activity. These letters are usually issued by the staff of a particular 
division of the Commission or the Office of the General Counsel and, 
unless otherwise noted, reflect only the views of the division or the 
Office of the General Counsel.\6\ Unlike no-action letters (or 
exemptive letters), an interpretative letter can be relied upon by 
persons other than those to whom the letter was issued, but it is 
binding only upon the Commission staff unit issuing it, and not upon 
the Commission itself.
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    \6\ Statutory interpretations are issued by staff of the Office 
of the General Counsel. Requests for interpretations of rule 
provisions will be assigned on a case-by-case basis to staff of the 
Division of Trading and Markets, the Division of Economic Analysis 
or the Office of the General Counsel.
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    Issuance of Letters is entirely within the discretion of Commission 
staff. A request may be denied, or staff may refuse to consider a 
request, without explanation. See paragraph (b)(1) of the proposed 
rule.
2. General Requirements
    Paragraph (b) of the proposed rule sets forth the general 
requirements for requests for Letters. All requests must relate to a 
specific proposed activity or transaction and must set forth as 
completely as possible the particular facts and circumstances giving 
rise to the request.\7\ The proposed rule codifies the policy adhered 
to by Commission staff of not providing responses to requests based on 
hypothetical situations. The request may be submitted by the person 
seeking a Letter or by that person's authorized representative. In any 
case, the person on whose behalf a Letter is sought must be identified. 
Consistent with current practice, Commission staff will not respond to 
requests submitted on behalf of unnamed persons.
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    \7\ Where charts or diagrams are likely to facilitate the 
staff's understanding of the relevant facts, requesters are 
encouraged to submit such materials with their initial 
correspondence.
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    If the Commission were to adopt the proposed rule, Commission staff 
would expect all requests for Letters to comply with the rule's 
requirements. A request that does not comply with the rule as adopted 
may be rejected by Commission staff without further analysis.\8\
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    \8\ In proposing to codify the authority of its staff to reject 
non-conforming requests, the Commission is not proposing to alter 
the staff's current practice of declining to respond to requests in 
other circumstances, such as when legal, policy or practical 
considerations make it inappropriate to respond to the merits of a 
request. See paragraph (b)(1).
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3. Information Requirements
    Requests for Letters should contain the information set forth in 
paragraph (c). Specifically, each request should identify the 
requester's name, main business address, telephone number, and if 
applicable, National Futures Association registration identification 
number as well as corresponding information concerning any other 
persons on whose behalf the Letter is being sought. The request must 
also provide the name, address and telephone number of a contact person 
from whom Commission staff may obtain additional information if 
necessary.
    Paragraph (c)(2) of the proposed rule requires that the specific 
section number of the Act and/or Commission rule, regulation or order 
to which the request relates be set forth in the upper right-hand 
corner of the first page of the request. This requirement will 
facilitate the proper routing of the request within the Commission.
    Paragraph (c)(3) requires that all requests for exemptive, no-
action or interpretative letters be accompanied by a certification that 
the representations contained in the request are true and accurate, 
along with an undertaking to supplement the request in the event any 
material fact changes or ceases to be true. The requester must make a 
complete and reliable presentation of the facts relevant to a request. 
A certification requirement is intended to assure that requesters fully 
review the facts and keep Commission staff advised of changed 
circumstances, without the need for repeated requests by staff for 
supplemental information.
    Paragraph (c)(4) of the proposed rule requires that each request 
specify the particular type of Letter being sought along with a 
discussion of the reasons why the requester needs a Letter. In this 
regard, the request should identify not only the specific concerns 
underlying the proposed transaction or activity giving rise to the 
request, but also the legal or public policy reasons for granting the 
request. Failure to frame an identifiable issue or problem and a 
reasonable justification for the relief or interpretation sought will 
be grounds for rejection of a request.
    Paragraph (c)(5) of the proposed rule requires that requests make 
reference to all relevant authority, including the Act, Commission 
rules, regulations and orders, relevant case law, and any 
administrative decisions on the issue. In this regard, the request must 
identify and distinguish all adverse authority.
    If Commission staff have previously issued a Letter in 
circumstances similar to those set forth in the request, paragraph 
(c)(6) requires that the request identify the prior Letter along with 
the conditions, if any, that were imposed by the division issuing the 
Letter. Requesters and their counsel must exercise due diligence in 
identifying and assembling the relevant authorities, including prior 
Letters of Commission staff.
    Under paragraph (c)(7) of the proposed rule, it would be 
appropriate in a request Letter to ask for alternative relief if the 
primary relief requested is denied.
4. Filing Requirements
    Paragraph (d) of the proposed rule establishes the procedures for 
filing requests for Letters. Specifically, paragraph (d)(1) requires 
that each request be made in writing and signed. ``Draft'' requests for 
Letters will not be considered.
    Pursuant to paragraph (d)(2), the request must be filed with the 
Director of the Division of Trading and Markets, who will then forward 
the request to the appropriate division within the Commission. Under 
ordinary circumstances the Division of Trading and Markets and the 
Division of Economic Analysis will issue no-action letters, and the 
Office of the General Counsel will issue statutory interpretations. 
Interpretative letters concerning rules or regulations will be referred 
either to one of the Divisions or to the Office of the General Counsel 
depending upon the issue to be addressed.
    The requirement that all requests be in writing codifies current 
agency practice. Oral requests for Letters will not be recognized.
    Commenters specifically are requested to address whether the rule 
should permit requests to be filed electronically.
5. Form of Staff Response
    Paragraph (e) of the proposed rule provides Commission staff with 
flexibility as to the level of detail necessary for a staff response to 
a request for a Letter. Paragraph (e) affords Commission staff the 
option of providing a responsive letter in an abbreviated or 
endorsement format that

[[Page 3287]]

merely sets forth the staff's position and does not contain a detailed 
recitation of the facts. In such cases, the Letter would provide that 
it is based on the facts and representations set forth in the request 
and thus would incorporate by reference those facts and 
representations. Use of this abbreviated format, where appropriate, may 
lessen the burden on Commission staff in responding to requests for 
Letters.\9\ The Commission requests public comment on whether and in 
what circumstances it should utilize this abbreviated procedure.
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    \9\ This procedure is followed by the SEC's Divisions of 
Corporation Finance and Investment Management. The abbreviated 
procedure as adopted by the Division of Corporation Finance is set 
forth in Securities Act Release No. 6253, supra note 4.
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    As set forth in paragraph (e), no grant of any request governed by 
the proposed rule shall be effective unless it is in writing signed by 
responsible Commission staff and has been transmitted in final form to 
the requester. Oral indications from staff are not binding and should 
not be relied on.\10\ Likewise, it is highly inappropriate for a 
requester to state in a request letter that the requester will assume 
relief has been granted and will proceed with the proposed transaction 
if the requester does not receive a negative response from Commission 
staff by a certain date. Failure by staff to respond to a request for a 
Letter does not constitute staff approval of the request.\11\
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    \10\ Commission staff field numerous telephone inquiries from 
the public and provide information and guidance as appropriate. 
These proposed rules are not intended to alter this practice. 
However, while statements made during those conversations are 
intended to be helpful, they are not binding on the staff or the 
Commission.
    \11\ See Precious Metals Associates, Inc. v. CFTC, 620 F.2d 900 
(1st Cir. 1980).
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6. Withdrawal of Requests
    Paragraph (f) of the proposed rule makes clear that any withdrawal 
of a request for a Letter may be accomplished only if: (1) the 
requester certifies in writing that the person making the request or on 
whose behalf the request has been made has determined not to proceed 
with the contemplated transaction or that intervening events have 
rendered the request moot; \12\ or (2) the requester has sought 
confidential treatment in accordance with Rule 140.98 and Commission 
staff has determined that confidential treatment should not be granted 
(in which case Rule 140.98 permits the requester to withdraw within 30 
days of being so notified). The proposed rule is not intended to modify 
or affect the provisions of Rule 140.98.
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    \12\ For example, a request for relief under Rule 4.7(a) 
notwithstanding participation by a person who is not a qualified 
eligible participant (``QEP'') may become moot if the proposed 
participation becomes able to meet the QEP criteria.
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    In permitting withdrawal in limited circumstances only, the 
proposed rule is intended to eliminate the past practice of certain 
requesters of submitting requests (often in draft form) and then 
withdrawing them if it appeared likely that an adverse response would 
be received.\13\
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    \13\ It is hoped that the provision in paragraph (c)(7) allowing 
for requests for relief in the alternatives should eliminate any 
perceived need for this practice.
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    Although the goal of the proposed rule is that initial requests 
will be as complete and thorough as possible, Commission staff from 
time to time will need to seek additional information from requesters 
in order to process a request. Where Commission staff asks for 
supplemental information or analysis, the requester should respond as 
quickly as practicable. Paragraph (g) of the proposed rule provides 
that an adverse response generally will be issued where the requester 
fails to provide additional information or analysis within 30 days of 
receiving a request for the same from Commission staff, unless an 
extension is granted by Commission staff considering the request.
7. Confidential Treatment
    Paragraph (h) of the proposed rule makes clear that where 
confidential treatment is sought, it must be requested separately, in 
conformity with Rule 140.98 or Rule 145.9 as applicable. These sections 
pertain, respectively, to requests for confidential treatment of: (a) 
the request for a Letter as well as the Letter issued in response; and 
(b) information submitted to the Commission which may be sought under 
the Freedom of Information Act, 5 U.S.C. 552.
8. Applicability to Other Sections
    Paragraph (i) of the proposed rule makes clear that the rule would 
not alter existing provisions of the Act or Commission rules, 
regulations or orders (such as Rules 4.5, 4.7 and 4.12(b)) under which 
specified exemptive relief is available upon the filing of a notice of 
claim of (or eligibility for) the particular exemption.

II. Related Matters

A. Administrative Procedure Act

    The Administrative Procedure Act, 5 U.S.C. 553(b), sets forth an 
exemption from the generally applicable notice-and-comment requirement 
for informal rulemaking where the rules at issue concern agency 
organization, procedure or practice. Although the rule proposed herein 
pertains exclusively to agency procedures and practice, the Commission 
is interested in receiving comment from the public on the proposal and, 
accordingly, is publishing the proposal for notice and public comment.

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (``RFA''), 5 U.S.C. 601 et seq., 
requires each federal agency to consider in the course of proposing 
substantive rules, the effect of those rules on small entities. The 
proposed rule makes clear that requests may be made by any person, 
including those that would constitute ``small entities'' within the 
meaning of the RFA. The uniformity mandated by the rule will provide 
greater certainty to requesters as to the procedures to follow in 
seeking relief or advice and, to this extent, the rule removes a burden 
on all requesters, regardless of their size.
    Additionally, the Commission has built maximum flexibility into the 
operation of the rule by making it clear that Commission staff ``may,'' 
but are not required to, decline to respond to a request that does not 
meet the requirements of the rule. See paragraph (b)(2). When a non-
conforming request is submitted by a person who lacks adequate 
financial resources to retain counsel (or in other circumstances where 
strict application of the rule would be inequitable), Commission staff 
may accommodate the requester by accepting the non-conforming request, 
by providing guidance to the requester in the proper formulation and 
filing of the request, or by other means.
    The Chairperson, on behalf of the Commission, hereby certifies, 
pursuant to 5 U.S.C. Sec. 605(b), that the action taken herein will not 
have a significant economic impact on a substantial number of small 
entities.

C. Paperwork Reduction Act

    When publishing proposed rules, 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 conducting or 
sponsoring any collection of information as defined by the Paperwork 
Reduction Act. In compliance with the Act, the Commission, through this 
rule proposal, solicits comments to:
    (1) Evaluate whether the proposed collection of information is 
necessary for the proper performance of the functions of the agency, 
including the validity of the methodology and

[[Page 3288]]

assumptions used; (2) evaluate the accuracy of the agency's estimate of 
the burden of the proposed collection of information including the 
validity of the methodology and assumptions used; (3) enhance the 
quality, utility and clarity of the information to be collected; and 
(4) minimize the burden of the collection of the information on those 
who are to respond, including through the use of appropriate automated, 
electronic, mechanical or other technological collection techniques or 
other forms of information technology; e.g., permitting electronic 
submission of responses.
    The Commission has submitted this proposed rule and its associated 
information collection requirements to the Office of Management and 
Budget.
    The burden associated with this proposed rule, is as follows:
    Average burden hours per response: 7.
    Number of respondents: 215.
    Frequency of response: 1.3.
    Persons wishing to comment on the information that would be 
required by this proposed/amended rule should contact the Desk Officer, 
CFTC, Office of Management and Budget, Room 10202, NEOB, Washington, DC 
20503 (202) 395-7340. Copies of the information collection submission 
to OMB are available from the CFTC Clearance Officer, 1155 21st Street, 
NW., Washington, DC 20581 (202) 418-5160.

List of Subjects in 7 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 Commodity Exchange Act and in particular section 8(a) 
of the Act, as amended, 7 U.S.C. 12(a), the Commission hereby proposes 
to amend Chapter I of title 17 of the Code of Federal Regulations as 
follows:

PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION

    1. The authority citation for part 140 continues to read as 
follows:

    Authority: 7 U.S.C. 7a(j) and 12a.

    2. Section 140.99 is proposed to be added to read as follows:


Sec. 140.99  Requests for Exemptive, No-Action and Interpretative 
Letters.

    (a) Definitions. For the purpose of this section:
    (1) Exemptive letter means a written grant of relief from the staff 
of a Division of the Commission from the applicability of a specific 
provision of the Act or of a rule, regulation or order issued 
thereunder by the Commission. An exemptive letter may only be issued by 
Commission staff when the Commission itself has exemptive authority and 
that authority has been delegated by the Commission to the Division in 
question.
    (2) No-action letter means a written statement from the staff of a 
Division of the Commission that it will not recommend enforcement 
action to the Commission for failure to comply with a specific 
provision of the Act or of a Commission rule, regulation or order if a 
proposed transaction is completed or a proposed activity is conducted 
by the person or persons who requested such letter. A no-action letter 
represents the position of only the Division that issued it and is 
applicable only with respect to the particular circumstances and 
binding only with respect to parties addressed by the letter. A no-
action letter does not bind the Commission itself or any other division 
thereof.
    (3) Interpretative letter means written advice or guidance from 
Commission staff (binding only upon the staff unit providing the advice 
or guidance and not upon the Commission itself) and may take the form 
of:
    (i) Written advice or guidance from the staff of a particular 
Division of the Commission or the staff of the Office of the General 
Counsel with respect to the interpretation of a specific provision of a 
Commission rule, regulation or order in the context of a proposed 
transaction or a proposed activity; or
    (ii) Written advice or guidance from the staff of the Office of the 
General Counsel with respect to the interpretation of a specific 
provision of the Act.
    (4) Letter means an exemptive, no-action or interpretative letter.
    (5) Division as used in this section means the Division of Trading 
and Markets or the Division of Economic Analysis.
    (b) General requirements--(1) Issuance of Letters is entirely 
within the discretion of Commission staff. A request may be denied, or 
staff may refuse to consider or respond to a request without 
explanation.
    (2) Each request for a Letter must comply with the requirements of 
this section. Commission staff may reject or decline to respond to a 
request that does not comply with the requirements of this section.
    (3) The request must relate to a proposed activity or a proposed 
transaction. Absent extraordinary circumstances, Commission staff will 
not issue a Letter based upon past transactions or activities.
    (4) The request may be made by a person seeking a Letter or by an 
authorized representative of such person. Commission staff will not 
respond to a request for a Letter that is made by or on behalf of an 
unidentified person.
    (5)(i) The request must set forth as completely as possible the 
particular facts and circumstances giving rise to the request.
    (ii) Commission staff will not respond to a request based on a 
hypothetical situation.
    (c) Information requirements. Each request for a Letter must comply 
with the following information requirements:
    (1)(i) A request made by the person seeking a Letter must contain:
    (A) The name, main business address, main telephone number and, as 
applicable, the National Futures Association registration 
identification number of such person; and
    (B) The name and, as applicable, the National Futures Association 
registration identification number of each other person for whom the 
requester is seeking the Letter.
    (ii) When made by an authorized representative of the person 
seeking a Letter, the request must contain:
    (A) The name, main business address and main business telephone 
number of the representative;
    (B) The name and, as applicable, the National Futures Association 
registration identification number of the person seeking a Letter; and
    (C) The name, and as applicable, the National Futures Association 
registration identification number of each other person for whom the 
requester is seeking the Letter.
    (iii) The request must provide the name, address and telephone 
number of a contact person from whom Commission staff may obtain 
additional information if necessary.
    (2) The section numbers of the particular provisions of the Act 
and/or Commission rules, regulations in this chapter, or orders to 
which the request relates must be set forth in the upper right-hand 
corner of the first page of the request.
    (3) The request must be accompanied by:
    (i) A certification by a person with knowledge of the facts that 
the representations made in the request are accurate and complete. The 
following form of certification is sufficient for this purpose:

    I hereby certify that the statements contained in the attached 
letter dated ______________ are true and complete to the best of my 
knowledge.

----------------------------------------------------------------------
(Name and Title)


[[Page 3289]]


and
    (ii) An undertaking by such person on behalf of the person seeking 
a Letter that at such time as any material representation made in the 
request ceases to be accurate and complete, the person who has made the 
request or received the Letter will promptly submit a written 
supplement reflecting all material changed circumstances.
    (4) The request must identify the type of relief requested and 
Letter sought and must clearly state why a Letter is needed. The 
request must identify all relevant legal and factual issues and must 
discuss the legal and public policy bases supporting issuance of the 
Letter.
    (5) The request must contain references to all relevant 
authorities, including the Act, Commission rules, regulations in this 
chapter, and orders, judicial decisions, administrative decisions, 
relevant statutory interpretations and policy statements. Adverse 
authority must be cited and discussed.
    (6) The request must identify prior Letters issued by Commission 
staff in response to circumstances similar to those surrounding the 
request (including adverse Letters), and must identify any conditions 
imposed by prior Letters as prerequisites for the issuance of those 
Letters.
    (7) Requests may ask that, if the primary relief is denied, 
alternative relief be granted.
    (d) Filing requirements. Each request for a Letter must comply with 
the following filing requirements:
    (1) The request must be made in writing and signed.
    (2) The request must be filed with the Director, Division of 
Trading and Markets, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street, N.W., Washington, D.C. 20581. The 
Director will route the request to the appropriate division.
    (e) Form of staff response. No grant of any request governed by 
this section is effective unless it is in writing signed by responsible 
Commission staff and has been transmitted in final form to the 
requester. Failure by Commission staff to respond to a request for a 
Letter does not constitute approval of the request. Nothing in this 
section shall preclude Commission staff from responding to a request 
for a Letter by way of endorsement or any other abbreviated, written 
form of response.
    (f) Withdrawal of requests. Once filed, a request for a Letter may 
only be withdrawn if:
    (1) A request for withdrawal is made in writing and makes the 
following representations, as applicable, together with a certification 
that such representations are true:
    (i) The person on whose behalf the request was made has determined 
not to proceed with the proposed transaction or activity, or
    (ii) Intervening events have rendered the request moot; or
    (2) The request is the subject of a request for confidential 
treatment pursuant to Sec. 140.98 and Commission staff has notified the 
requester that the request for confidential treat-ment will be denied, 
in which event the requester may withdraw the letter within 30 days 
after such notification, as provided in Sec. 140.98.
    (g) Failure to pursue a request. If a requester fails to respond 
within 30 calendar days of the date of a request from Commission staff 
for additional information or analysis, Commission staff generally will 
issue an adverse response, unless an extension of time has been 
granted.
    (h) Confidential treatment. If a requester seeks confidential 
treatment of a request for a Letter that it has filed, such treatment 
must be separately requested in accordance with Sec. 140.98 or 
Sec. 145.9 of this chapter, as applicable.
    (i) Applicability to other sections. The provisions of this section 
shall not affect the requirements of, or otherwise be applicable to, 
notice filings required to be made to claim relief from the Act or from 
a Commission rule, regulation or order including, without limitation, 
Secs. 4.5, 4.7(a), 4.7(b), 4.12(b), 4.13(b) and 4.14(a)(8) of this 
chapter.

    Issued in Washington, D.C. on January 13, 1998 by the 
Commission.
Catherine D. Dixon,
Assistant Secretary of the Commission.
[FR Doc. 98-1138 Filed 1-21-98; 8:45 am]
BILLING CODE 6351-01-P


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