Federal Register / Vol. 65, No. 74 / Monday, April 17, 2000 / Proposed Rules 20403

the end of each reporting period, a

report with respect to each pool under

its control. Each such report shall

contain the name and address of the

reporting person, the name of the pool

with respect to which the report is being

filed, and the following information:

(1) Financial information:

(i) A statement of financial condition

as of the end of the reporting period;

(ii) A statement of income or loss for

the reporting period;

(iii) A statement of changes in

financial position for the reporting

period; and

(iv) A statement of changes in net

asset value over the reporting period

which shall be prepared in accordance

with § 4.22(a)(2).

(2) Risk information:

(i) The highest, lowest, and last VAR

for the pool during the reporting period

at each confidence level and holding

period for which it was calculated by

the reporting person; provided that VAR

calculated for confidence intervals in

excess of 99.6% need not be reported;

(ii) (A) For each holding period for

which the reporting person calculated

VAR, the number of occasions, if any,

on which losses exceeded the

corresponding VAR calculated for that

holding period at the greatest

confidence interval, not in excess of

99.6%, for which VAR was calculated

by the reporting person and

(B) The dollar amount of the greatest

loss during the reporting period,

whether or not it exceeded the

corresponding VAR;

(iii) A brief discussion of whether,

during the quarter, stress tests were

performed with respect to the pool’s

positions and, if so, whether the results

thereof were reported to senior

management and the governing

authority; and

(iv) Any additional information which

the reporting person wishes to present

to supplement the information in

paragraph (d)(2) of this section.

(3) Changes in risk management

practices: If, for any pool controlled by

the reporting person, there is any

material change to the information

provided pursuant to paragraph (c) of

this section, as modified by previous

submissions pursuant to this paragraph

(d)(3) concerning that pool, the

reporting person shall submit a revised

set of responses pursuant to paragraph

(c) of this section.

(4) All financial information shall be

reported in accordance with generally

accepted accounting principles

consistently applied.

(e) Filing requirements. Each report

required to be filed with the

Commission under this section shall:

(1) Be signed in accordance with the

requirements of § 4.22(h); and

(2) Be sent via first-class mail, postage

prepaid, to: Commodity Futures Trading

Commission, Three Lafayette Centre,

1155—21st Street, NW., Washington, DC

20581, Attention: Managed Funds

Branch, and by attachment to an e-mail

message addressed and sent to

hfreport@cftc.gov with electronic

confirmation of delivery activated.

(3) Copies of reports shall be retained

in accordance with § 1.31.

(f) Public records. Reports filed

pursuant to this section shall be

considered Public Records as defined in

§ 145.0 of this chapter.

* * * * *

Issued in Washington, DC, on April 11,

2000 by the Commission.

Jean A. Webb,

Secretary of the Commission,

Dissenting Remarks of Commissioner

Barbara Pedersen Holum, Proposed Rule

4.27;Reporting by Operators of Certain Large

Commodity Pools

In April 1999, the President’s Working

Group on Financial Markets issued a report

entitled ‘‘Hedge Funds, Leverage, and the

Lessons of Long-Term Capital Management’’

(the ‘‘PWG Report’’). Among other things, the

PWG Report recommended (i) that registered

CPOs operating large funds begin filing with

the Commission quarterly, (ii) that the

reports include more comprehensive

information on market risk, and (iii) that

information in the reports be published.

These recommendations respond to events

occurring twenty months ago. However,

market developments since then call into

question whether a specific prescriptive rule,

such as proposed Rule 4.27, is the

appropriate response at this time.

In my judgement, and in light of the

recommendations of the CFTC staff task force

report entitled ‘‘A New Regulatory

Framework,’’ the Commission should seek

comment on whether the specific

recommendations of the PWG Report remain

current and, if so, how best to achieve them.

For these reasons, I respectfully dissent from

the Commission’s issuance of proposed Rule

4.27.

Commissioner Barbara Pedersen Holum

Date: April 7, 2000.

Concurring Statement of Commissioner

Erickson

I concur with the Commission’s

publication of the proposed rules that would

require commodity pool operators (CPOs) of

the largest commodity pools to file quarterly

reports with the Commission. Given that the

proposed rules are intended to respond to the

events surrounding the near-collapse of

Long-Term Capital Management (LTCM),

comments from the public and especially

from the industry will be instructive in the

Commission’s efforts to craft an approach

that is indeed effective. In addition to

comments limited to the proposed rule, I am

interested in comments that will inform the

Commission about how the industry has

addressed the potential risks posed by certain

highly leveraged institutions since the LTCM

episode. Moreover, I encourage the

submission of comments that provide input

on the following issues:

1. The proposed rules envision a reporting

system whereby the Commission is

essentially a conduit for the public

dissemination of quarterly reports without

any further review by any federal financial

regulator. Is publication alone sufficient?

2. It is not clear that reporting on a

quarterly basis would have been sufficient to

address the events precipitating the private

rescue of LTCM. Assuming that reporting

alone is an adequate response, would

quarterly reporting be effective?

3. The April 1999 report of the President’s

Working Group on Financial Markets

concluded that the ‘‘central public policy

issue raised by the LTCM episode is how to

constrain excessive leverage more

effectively.’’ One possible way to address

leverage concerns would be to require CPOs

to provide the Commission with a

confidential early warning notification

structured similar to the Commission’s

existing notification requirement with

respect to net capital requirements for futures

commission merchants. Such an approach

may address publicly expressed concerns

about the quantity and quality of the

information available to federal financial

regulators in the weeks preceding LTCM.

What are the public policy implications of

such an approach—either in addition to or in

lieu of quarterly reports?

[FR Doc. 00–9463 Filed 4–14–00; 8:45 am]

BILLING CODE 6351–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 1

[REG–116048–99]

RIN 1545–AX63

Stock Transfer Rules: Supplemental

Rules; Hearing Cancellation

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Cancellation of notice of public

hearing on proposed rulemaking.

SUMMARY: This document provides

notice of cancellation of a public

hearing on proposed regulations relating

to supplemental rules for stock

transfers.

DATES: The public hearing originally

scheduled for Thursday, April 20, 2000,

at 10 a.m., is canceled.

FOR FURTHER INFORMATION CONTACT: Guy

Traynor of the Regulations Unit,

Assistant Chief Counsel (Corporate),

(202) 622–7180 (not a toll-free number).

SUPPLEMENTARY INFORMATION: A notice

of proposed rulemaking and notice of

20404 Federal Register / Vol. 65, No. 74 / Monday, April 17, 2000 / Proposed Rules

public hearing that appeared in the

Federal Register on January 24, 2000,

(65 FR 3629), announced that a public

hearing was scheduled for April 20,

2000 at 10 a.m., in room 2615, Internal

Revenue Building, 1111 Constitution

Avenue NW., Washington, DC. The

subject of the public hearing is proposed

regulations under section 367(b), of the

Internal Revenue Code. The deadline for

requests to speak and outlines of oral

comments expired on March 31, 2000.

The notice of proposed rulemaking

and notice of public hearing, instructed

those interested in testifying at the

public hearing to submit a request to

speak and an outline of the topics to be

addressed. As of April 11, 2000, no one

has requested to speak. Therefore, the

public hearing scheduled for April 20,

2000, is cancelled.

Cynthia E. Grigsby,

Chief, Regulations Unit, Assistant Chief

Counsel (Corporate).

[FR Doc. 00–9409 Filed 4–14–00; 8:45 am]

BILLING CODE 4830–01–P

ENVIRONMENTAL PROTECTION

AGENCY

40 CFR Part 52

[IL196–1; MO–097–1097; FRL–6578–2]

Approval and Promulgation of

Implementation Plans; Illinois and

Missouri; Ozone

AGENCY: Environmental Protection

Agency.

ACTION: Proposed rule.

SUMMARY: The Environmental Protection

Agency (EPA) is proposing to approve

the Illinois and Missouri 1-hour ozone

attainment demonstration State

Implementation Plans (SIPs) for the St.

Louis moderate ozone nonattainment

area. The attainment demonstration SIPs

are addressed in Illinois Environmental

Protection Agency (IEPA) submittals

dated November 15, 1999 and February

10, 2000 and in Missouri Department of

Natural Resources (MDNR) submittals

dated November 10, 1999 and January

19, 2000. In the alternative, the EPA is

proposing to disapprove the attainment

demonstration if: Illinois and Missouri

do not revise the attainment

demonstration modeling and analyses to

incorporate corrections to the 1996 base

year emissions inventory and

successfully demonstrate attainment of

the 1-hour standard based on the

revised modeling; Illinois or Missouri

do not submit proposed regional Oxides

of Nitrogen (NOX) emission control

regulations for Electric Generating Units

(EGUs) by June 2000 and final adopted

regional (NOX) emission control

regulations for EGUs by December 2000;

or Missouri does not submit a proposed

motor vehicle emissions budget by June

30, 2000. The EPA is proposing to:

approve an exemption from (NOX)

emission control requirements for

Reasonably Available Control

Technology (RACT) for the Illinois

portion of the St. Louis ozone

nonattainment area; extend the ozone

attainment date for the entire St. Louis

ozone nonattainment area to November

15, 2003 while retaining the area’s

current classification as a moderate

ozone nonattainment area; and approve

the transportation conformity motor

vehicle emissions budget submitted by

Illinois for the Illinois portion of the St.

Louis ozone nonattainment area. The

final approvals of the extension of the

ozone attainment date and the motor

vehicle emissions budgets are

contingent on the final approval of the

ozone attainment demonstration. The

final approval of the attainment

demonstration is contingent on the final

approval of the regional (NOX) emission

control regulations and on the submittal

of adequate motor vehicle emissions

budgets. The final approval of the (NOX)

RACT exemption for Illinois is

contingent on the final approval of an

attainment demonstration that does not

rely on (NOX) emission reductions

resulting from (NOX) RACT

implementation in the Illinois portion of

the St. Louis nonattainment area. The

EPA is proposing to disapprove Illinois’

request for exemption from (NOX)

requirements for New Source Review

(NSR) and general conformity.

DATES: Written comments must be

received on or before June 16, 2000.

ADDRESSES: Written comments should

be sent to: Jay Bortzer, Chief, Regulation

Development Section, Air Programs

Branch (AR-18J), U.S. Environmental

Protection Agency, 77 West Jackson

Boulevard, Chicago, Illinois 60604; or

Wayne Leidwanger, Chief, Air Planning

and Development Branch, U.S.

Environmental Protection Agency, 901

North 5th Street, Kansas City, Kansas

66101.

Copies of the States’ submittals and

EPA’s Technical Support Document

(TSD) for this proposed rule, and other

relevant materials are available for

public inspection during normal

business hours at the following

addresses: United States Environmental

Protection Agency, Region 5, Air and

Radiation Division, 77 West Jackson

Boulevard, Chicago, Illinois 60604

(please telephone Mark Palermo at (312)

886–6082 before visiting the Region 5

office); United States Environmental

Protection Agency, Region 7, Air,

Radiation, and Toxics Division, 901

North 5th Street, Kansas City, Kansas

66101.

FOR FURTHER INFORMATION CONTACT:

Edward Doty, Regulation Development

Section, Air Programs Branch (AR–18J),

U.S. Environmental Protection Agency,

Region 5, 77 West Jackson Boulevard,

Chicago, Illinois 60604, Telephone

Number (312) 886-6057, E-Mail

Address: doty.edward@epamail.epa.gov;

or Aaron Worstell, Air Planning and

Development Branch, U.S.

Environmental Protection Agency,

Region 7, 901 North 5th Street, Kansas

City, Kansas 66101, Telephone Number

(913) 551–7787, E-Mail Address:

worstell.aaron@epa.gov.

SUPPLEMENTARY INFORMATION:

Table of Contents

I. Background

A. Basis for the States’ Attainment

Demonstration SIPs

B. Components of a Modeled Attainment

Demonstration

C. Framework for Proposing Action on the

Attainment Demonstration SIP

D. Criteria for Attainment Date Extensions

E. Criteria for (NOX) Control Exemptions

II. Technical Review of the Submittals

A. Summary of the State Submittals

1. General Information

2. Modeling Procedures and Input Data

3. Modeling Results

4. Emission Control Strategies

5. Transportation Conformity

6. Petition for NOx Control Exemption

B. Environmental Protection Agency

Review of the Submittals

1. Adequacy of the States’ Demonstrations

of Attainment

2. Adequacy of the Emissions Control

Strategies

3. Adequacy of the Request for Extension

of the Attainment Date

4. Adequacy of the NOx Control Exemption

Request

III. Proposed Action

IV. Administrative Requirements

A. Executive Order 12866

B. Executive Order 13045

C. Executive Order 13084

D. Executive Order 13132

E. Regulatory Flexibility

F. Unfunded Mandates

I. Background

A. Basis for the States’ Attainment

Demonstration SIPs

What are the Relevant Clean Air Act

Requirements?

The Clean Air Act (Act) requires the

EPA to establish National Ambient Air

Quality Standards (NAAQS) for certain

widespread pollutants that cause or

contribute to air pollution that is

reasonably anticipated to endanger

public health or welfare. Clean Air Act