27476 Federal Register / Vol. 66, No. 96 / Thursday, May 17, 2001 / Proposed Rules

Engines Service Bulletin (GEAE SB)

CF6–80C2 S/B 72–1006, dated April 11,

2001 and GEAE SB CF60–50 S/B 72–

1170, dated May 7, 1999, that specify

part numbers and procedures for the

removal and replacement of the

shrouds.

FAA’s Determination of an Unsafe

Condition and Proposed Actions

Since an unsafe condition has been

identified that is likely to exist or

develop on other General Electric

Company CF6–50 and CF6–80C2

turbofan engines of the same type

design, the proposed AD would require

replacement of certain existing CF6–50

and CF6–80C2 shrouds with new design

shrouds at the next shroud piece part

exposure, but no later than December

31, 2006. The actions would be required

to be accomplished in accordance with

the service bulletins described

previously.

Economic Impact

There are approximately 5,055 GE

CF6–50 and CF6–80C2 turbofan engines

of the affected design in the worldwide

fleet. The FAA estimates that 1,106

engines installed on airplanes of U.S.

registry would be affected by this

proposed AD. Because this proposal

calls for the replacement of shrouds at

piece part exposure, the FAA does not

expect that additional labor costs will be

accrued beyond that normally required

to remove the existing shroud. New

shrouds will cost approximately

$63,250 for the CF6–50 engines, and

$87,020 for the CF6–80C2 engines.

Based on these figures, the total cost to

retrofit all installed US registered

engines is estimated to be $85,096,038

over a five year period, or $17,019,207

annually.

Regulatory Impact

This proposed rule does not have

federalism implications, as defined in

Executive Order 13132, because it

would not have a substantial direct

effect on the States, on the relationship

between the national government and

the States, or on the distribution of

power and responsibilities among the

various levels of government.

Accordingly, the FAA has not consulted

with state authorities prior to

publication of this proposed rule.

For the reasons discussed above, I

certify that this proposed regulation (1)

Is not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not

a ‘‘significant rule’’ under the DOT

Regulatory Policies and Procedures (44

FR 11034, February 26, 1979); and (3) if

promulgated, will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act. A copy of the draft

regulatory evaluation prepared for this

action is contained in the Rules Docket.

A copy of it may be obtained by

contacting the Rules Docket at the

location provided under the caption

ADDRESSES.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Safety.

The Proposed Amendment

Accordingly, pursuant to the

authority delegated to me by the

Administrator, the Federal Aviation

Administration proposes to amend part

39 of the Federal Aviation Regulations

(14 CFR part 39) as follows:

PART 39—AIRWORTHINESS

DIRECTIVES

1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

2. Section 39.13 is amended by

adding the following new airworthiness

directive:

General Electric Company: Docket No. 2001–

NE–19–AD.

Applicability: This airworthiness directive

(AD) is applicable to General Electric

Company (GE) CF6–50 and CF6–80C2

turbofan engines These engines are installed

on, but not limited to DC–10–15, DC–10–30,

MD11, 747, 767, A300 and A310 airplanes.

Note 1: This AD applies to each engine

identified in the preceding applicability

provision, regardless of whether it has been

modified, altered, or repaired in the area

subject to the requirements of this AD. For

engines that have been modified, altered, or

repaired so that the performance of the

requirements of this AD is affected, the

owner/operator must request approval for an

alternative method of compliance in

accordance with paragraph (c) of this AD.

The request should include an assessment of

the effect of the modification, alteration, or

repair on the unsafe condition addressed by

this AD; and, if the unsafe condition has not

been eliminated, the request should include

specific proposed actions to address it.

Compliance: Compliance with this AD is

required as indicated, unless already done.

To prevent uncontained engine failure and

possible airplane damage, do the following:

(a) Remove existing Stage 2, 3 and 4 low

pressure turbine (LPT) CF6–80C2 shrouds

and replace with new design part numbers

(P/N’s) 2083M12G01, 2083M13G01, and

2083M14G01, respectively, in accordance

with GE Aircraft Engines Service Bulletin

(GEAE SB) CF6–80C2 S/B 72–1006, dated

April 11, 2001, at the next shroud piece part

exposure, but no later than December 31,

2006.

(b) Remove existing Stage 1, 2, 3 and 4 LPT

CF6–50 shrouds and replace with new design

P/N’s 1822M35G01, 1822M36G01,

1822M36G02, and 1822M37G01,

respectively, in accordance with GEAE SB

CF6–50 S/B 72–1170, dated May 7, 1999, at

the next shroud piece part exposure, but no

later than December 31, 2006.

Alternative Methods of Compliance

(c) An alternative method of compliance or

adjustment of the compliance time that

provides an acceptable level of safety may be

used if approved by the Manager, Engine

Certification Office (ECO). Operators shall

submit their request through an appropriate

FAA Principal Maintenance Inspector, who

may add comments and then send it to the

Manager, ECO.

Note 2: Information concerning the

existence of approved alternative methods of

compliance with this airworthiness directive,

if any, may be obtained from the ECO.

(d) Special flight permits may be issued in

accordance §§ 21.197 and 21.199 of the

Federal Aviation Regulations (14 CFR 21.197

and 21.199) to operate the airplane to a

location where the requirements of this AD

can be accomplished.

Issued in Burlington, Massachusetts, on

May 11, 2001.

Francis A. Favara,

Acting Manager, Engine and Propeller

Directorate, Aircraft Certification Service.

[FR Doc. 01–12425 Filed 5–16–01; 8:45 am]

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Parts 3 and 170

RIN Number: 3038–AB84

Notice Registration as a Futures

Commission Merchant or Introducing

Broker for Certain Securities Brokers

or Dealers

AGENCY: Commodity Futures Trading

Commission.

ACTION: Proposed rules.

SUMMARY: In accordance with certain

provisions of the Commodity Futures

Modernization Act of 2000 (‘‘CFMA’’),

the Commodity Futures Trading

Commission (‘‘Commission’’) is

proposing to amend Rule 3.10, which

specifies the information that various

applicants for registration must file. The

amendment would provide for notice

registration as a futures commission

merchant (‘‘FCM’’) or introducing

broker (‘‘IB’’), as applicable, in the case

of a broker or dealer (‘‘BD’’) registered

with the Securities and Exchange

Commission (‘‘SEC’’) that, among other

things, limits its involvement with

commodity futures contracts to security

futures products. In accordance with

Federal Register / Vol. 66, No. 96 / Thursday, May 17, 2001 / Proposed Rules 27477

1Pub. L. No. 106–554, 114 Stat. 2763. The text of

the CFMA may be accessed on the Internet at http:/

/agriculture.house.gov/txt5660.pdf.

2See Section 251(a) of the CFMA. This trading

previously had been prohibited by Section

2(a)(1)(B)(v) of the CEA.

3The term ‘‘security futures product’’ is defined

in Section 1a(32) of the CEA to mean ‘‘a security

future or any put, call, straddle, option, or privilege

on any security future.’’ The term ‘‘security future’’

is defined in Section 1a(31) of the CEA. Because the

CFMA also provides that options on security

futures cannot be traded until at least December 21,

2003, security futures are the only security futures

product that may be available for trading during the

next 31 months.

4The CFMA also specifically prescribes certain

dates on which security futures trading can

commence. Specifically, principal-to-principal

transactions between institutions cannot commence

until August 21, 2001 and retail transactions cannot

commence until December 21, 2001. Both starting

dates are conditioned upon the registration of a

futures association (i.e., National Futures

Association (‘‘NFA’’)) as a national securities

association under the Securities Exchange Act of

1934 (‘‘ ‘34 Act’’). Section 202(a) of the CFMA;

Section 6(g)(5) of the ’34 Act.

5See Sections 1a(20) and (23) of the CEA, which

define the terms ‘‘futures commission merchant’’

and ‘‘introducing broker,’’ respectively.

6Prior to the enactment of the CFMA, this

provision was found in Section 4f(a) of the CEA.

The CFMA amended Section 4(f) by redesignating

paragraph (a) as paragraph (a)(1) and by adding new

paragraphs (a)(2) and (a)(3) (Section 252(b)(2) of the

CFMA) and (a)(4) (Section 252(c) of the CFMA).

7Rule 3.10(a)(1)(i). The Form 7–R, which requires

general information such as a list of the applicant’s

principals and the applicant’s disciplinary history,

must be completed and filed with NFA in

accordance with the instructions thereto. NFA is

registered with the Commission as a registered

futures association pursuant to Section 17 of the

CEA. By Rule 3.2 and various orders issued by the

Commission, the Commission has delegated to NFA

the authority to register, among other persons,

FCMs and IBs. Commission rules referred to herein

are found at 17 CFR Ch. I (2001).

8Rule 3.10(a)(1)(ii). The Form 1–FR (–FCM or

–IB) includes detailed financial statements and

schedules that display the applicant’s financial

condition. Where the applicant is registered with

the SEC as a BD, it may accompany its Form 7–R

with a copy of its Financial and Operational

Combined Uniform Single Report under the ’34 Act,

Part II or Part IIA. See Rule 1.10(h).

9Because the CFMA speaks in terms of a ‘‘broker

or dealer,’’ the term ‘‘BD’’ as used in this release

applies equally to a broker, a dealer or a person

registered as both a broker and a dealer.

10Section 4k(1) of the CEA generally requires

each person who is an associated person (‘‘AP’’) of

an FCM or IB to register as such. Rule 3.12 generally

requires an applicant for registration as an AP to file

a Form 8–R, which requires basic biographical

information, along with a sponsor’s certification. It

is not necessary for the Commission to similarly

propose notice registration under Rule 3.12 for the

APs of those FCMs and IBs who would be subject

to the proposed notice registration under Rule 3.10,

because the CFMA exempts these APs from

registration altogether. Specifically, Section 252(d)

of the CFMA amends Section 4(k) of the CEA to

provide that:

Any associated person of a broker or dealer that

is registered with the Securities and Exchange

Commission, and who limits its solicitation of

orders, acceptance of orders, or execution of orders,

or placing of orders on behalf of others involving

any contracts of sale of any commodity for future

delivery or any options on such a contract, on or

subject to the rules of any contract market or

registered derivatives transaction execution facility

to security futures products, shall be exempt from

[Section 4k(1)] of this Act and the rules thereunder.

certain other provisions of the CFMA,

the Commission is proposing to amend

Rule 170.15, which requires each

registered FCM to be a member of a

registered futures association. The

amendment would exempt noticeregistered BDs from this requirement.

DATES: Comments must be received by

June 18, 2001.

ADDRESSES: Comments on the proposed

rule amendments may be sent to Jean A.

Webb, Secretary of the Commission,

Commodity Futures Trading

Commission, Three Lafayette Centre,

1155 21st Street, NW., Washington, DC

20581. In addition, comments may be

sent by facsimile transmission to (202)

418–5521, or by electronic mail to

secretary@cftc.gov. Reference should be

made to ‘‘Notice Registration as a

Futures Commission Merchant or

Introducing Broker for Certain

Securities Brokers or Dealers.’’

FOR FURTHER INFORMATION CONTACT:

Barbara S. Gold, Assistant Chief

Counsel, or Lawrence B. Patent,

Associate Chief Counsel, Division of

Trading and Markets, Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street NW.,

Washington, DC 20581, (202) 418–5450,

electronic mail: bgold@cftc.gov, or

lpatent@cftc.gov.

SUPPLEMENTARY INFORMATION:

I. Background

On December 21, 2000, the CFMA

was signed into law.1 Among other

things, the CFMA removed the

restriction in the Commodity Exchange

Act (‘‘CEA’’) on the trading of futures

contracts on individual equity securities

and narrow-based indices of equity

securities.2 Under the revised law,

security futures products 3 may be

traded on a designated contract market

or on a registered derivatives transaction

execution facility.4

Section 4d of the CEA provides that

any person who engages in soliciting or

accepting orders for the purchase or sale

of any commodity for future delivery on

or subject to the rules of any contract

market or derivatives transaction

execution facility—e.g., for a security

futures product—must be registered

with the Commission as (1) an FCM, if

it also accepts any money, securities, or

property, or extends credit in lieu

thereof, to margin, guarantee, or secure

contracts, or (2) otherwise as an IB.5

Section 4f(a)(1) of the CEA provides that

application for registration as an FCM or

IB ‘‘shall be made in such form and

manner as prescribed by the

Commission.’’ 6 Pursuant to this

authority, the Commission adopted Rule

3.10, which currently requires that an

applicant for registration as an FCM or

IB file a Form 7–R7 along with a Form

1–FR–FCM or Form 1–FR–IB, as

applicable.8 In addition, Rule 170.15

requires that each person required to

register as an FCM must become and

remain a member of at least one

registered futures association (i.e.,

NFA).

However, as a result of the CFMA,

new Section 4f(a)(2) of the CEA now

provides that notwithstanding Section

4f(a)(1), any BD that is registered with

the SEC9 shall be registered as an FCM

or IB, as applicable, ‘‘effective

contemporaneously with the submission

of notice,’’ if—

(A) the broker or dealer limits its

solicitation of orders, acceptance of orders, or

execution of orders, or placing of orders on

behalf of others involving any contracts of

sale of any commodity for future delivery, on

or subject to the rules of any contract market

or registered derivatives transaction

execution facility to security futures

products;

(B) the broker or dealer files written notice

with the Commission in such form as the

Commission, by rule, may prescribe

containing such information as the

Commission, by rule, may prescribe as

necessary or appropriate in the public

interest or for the protection of investors;

(C) the registration of the broker or dealer

is not suspended pursuant to an order of the

Securities and Exchange Commission; and

(D) the broker or dealer is a member of a

national securities association registered

pursuant to section 15A(a) of the Securities

Exchange Act of 1934.

Moreover, new Section 4f(a)(4)(C)(i) of

the CEA provides that a BD that is

registered as an FCM pursuant to notice

registration shall not be required to

become a member of a registered futures

association. Accordingly, by this

Federal Register release, the

Commission is proposing to amend Rule

3.10 to provide for FCM and IB notice

registration thereunder and to amend

Rule 170.15 to exclude from its scope

BDs notice-registered as FCMs.10

II. Proposed Amendments

A. Rule 3.10

Rule 3.10 currently is structured as

follows: paragraph (a), ‘‘Application for

registration,’’ contains the information

that an application for registration

under the rule must contain; paragraph

(b), ‘‘Duration of registration,’’ generally

provides that registration under

paragraph (a) will continue until

withdrawal or revocation; paragraph (c),

27478 Federal Register / Vol. 66, No. 96 / Thursday, May 17, 2001 / Proposed Rules

11Section 252(c) of the CFMA; Section 4f(a)(4)(C)

of the CEA.

12See Section 17(o)(1) of the CEA.

13Sections 8a(10) and 17(o)(2) of the CEA.

14NFA is the only registered futures association.

15 47 FR at 18618–21 (April 30, 1982).

16 47 FR at 18619–20.

17 47 FR at 18618, 18620.

18 44 U.S.C. 3501 et seq.

‘‘Exemption from registration for certain

persons,’’ provides an exemption from

registration as an FCM for certain

persons; and paragraph (d), ‘‘Annual

filing,’’ prescribes an annual review of

a printout of registration information on

file with NFA for persons registered

pursuant to paragraph (a).

The Commission is proposing to

amend Rule 3.10 in several ways. First,

paragraph (a)(1)(i) would be revised to

alert applicants for registration that

there is an alternative registration

procedure under new Rule 3.10(a)(3).

Second, paragraph (a)(3) would be

added. Captioned ‘‘Notice registration as

a futures commission merchant or

introducing broker for certain securities

brokers or dealers,’’ it would add an

exception to the FCM and IB registration

requirements of Rule 3.10(a) for BDs

who meet the criteria of new Section

4f(a)(2) of the CEA. Registration under

paragraph (a)(3) would be made ‘‘by

following such procedures for notice

registration as may be specified’’ by

NFA. This registration would be

effective upon the filing of the notice

prescribed by NFA, as mandated by

Section 252(b)(2) of the CFMA. Finally,

paragraph (d) would be amended to

relieve these notice registrants from the

annual update requirement.

The Commission’s proposal is

consistent with the Commission’s

previous delegation of registration

authority to NFA under Rule 3.2 and

through various Commission orders.

The Commission believes that its

proposal is also consistent with Section

125 of the CFMA, which requires the

Commission to report to Congress later

this year on a study of the CEA and the

Commission’s rules, regulations and

orders governing the conduct of persons

required to be registered under the CEA.

One area that the study must identify is

‘‘the regulatory functions the

Commission currently performs that can

be delegated to a registered futures

association * * * and the regulatory

functions that the Commission has

determined must be retained and the

reasoning therefor.’’

As referred to above, notice registrant

FCMs and IBs are exempt from NFA

membership.11 Although the

Commission cannot require NFA to

perform registration functions for

persons that are not NFA members,12

the Commission may authorize NFA to

perform any registration function.13

Commission staff have discussed this

matter with NFA, and NFA has agreed

to undertake the function of processing

notice registrations for BDs as discussed

herein. If the Commission adopts these

amendments to Rule 3.10, it expects to

issue an order authorizing NFA to

perform this function.

B. Rule 170.15

Section 17(m) of the CEA states that—

[n]otwithstanding any other provision of law,

the Commission may approve rules of futures

associations that, directly or indirectly,

require persons eligible for membership in

such associations to become members of at

least one such association upon a

determination by the Commission that such

rules are necessary or appropriate to achieve

the purposes and objectives of [the CEA].

Pursuant to this provision, the

Commission adopted Rule 170.15,

which provides that each person

required to register as an FCM must

become and remain a member of at least

one registered futures association.14

However, and as noted above, because

new section 4f(a)(4)(C)(i) of the CFMA

exempts BDs who notice-register as

FCMs from the requirement to become

a member of a registered futures

association, the Commission is

proposing to amend Rule 170.15. The

amendment would add a provision to

exempt FCMs registered in accordance

with Rule 3.10(a)(3) from the

requirement to become and remain a

member of a registered futures

association.

III. Related Matters

A. Regulatory Flexibility Act

The Regulatory Flexibility Act

(‘‘RFA’’), 5 U.S.C. 601–611 (1994),

requires that agencies, in proposing

rules, consider the impact of those rules

on small businesses. The rule

amendments discussed herein would

affect persons seeking to be registered

under notice registration procedures as

an FCM or IB pursuant to new Section

4f(a)(2). The Commission has previously

established certain definitions of ‘‘small

entities’’ to be used by the Commission

in evaluating the impact of its rules on

such entities in accordance with the

RFA.15 The Commission previously

determined that registered FCMs are not

small entities for the purpose of the

RFA.16 With respect to IBs, the

Commission has stated that it would

evaluate within the context of a

particular rule proposal whether all or

some affected IBs would be considered

to be small entities and, if so, the

economic impact on them of any rule.17

These amendments would provide

exemptive relief from provisions of the

Commission’s regulations that otherwise

would be applicable to such persons.

Consequently, the Commission believes

that the adoption of these rule

amendments would reduce the burden

of compliance by persons seeking to be

registered as an FCM or IB. Accordingly,

the Acting Chairman of the Commission

hereby certifies, pursuant to 5 U.S.C.

605(b), that the proposed rule will not

have a significant economic impact on

a substantial number of small entities.

Nonetheless, the Commission

specifically requests comment on the

impact this proposed rule may have on

small entities.

B. Paperwork Reduction Act

This proposed rulemaking contains

information collection requirements

within the meaning of the Paperwork

Reduction Act of 1995 (‘‘PRA’’).18 The

Commission has submitted a copy of

this part to the Office of Management

and Budget (‘‘OMB’’) for its review.

Collection of Information

Registration of future commission

merchants, introducing brokers,

commodity trading advisors, commodity

pool operators and leverage transaction

merchants, OMB Control Number 3038–

0023.

The burden associated with the

proposed addition of Rule 3.10(a)(3) is

estimated to be 1,000 hours, which will

result from the notice registration as an

FCM or IB of various persons who

currently are registered as BDs with the

SEC.

The estimated burden of the proposed

new rule was calculated as follows:

Estimated number of respondents:

5,000.

Reports annually by each respondent:

1.

Total annual Responses: 5,000.

Estimated average Number of Hours

Per Response: 2.

Estimated Total Number of Hours of

Annual Burden in Fiscal Year: 1,000.

There are no paperwork burdens

associated with the proposed

amendments to Rule 3.10(d), which

would clarify that the annual filing

prescribed therein does not apply to

notice-registered BDs, or to Rule 170.15,

which would exclude notice-registered

BDs from the requirement that each

registered FCM must become and

remain a member of NFA.

Organizations and individuals

desiring to submit comments on the

Federal Register / Vol. 66, No. 96 / Thursday, May 17, 2001 / Proposed Rules 27479

19These considerations include: (A) protection of

market participants and the public; (B) efficiency,

competitiveness, and financial integrity of futures

markets; (C) price discovery; (D) sound risk

management practices; and (E) other public interest

considerations.

information collection requirements

should direct them to the Office of

Information and Regulatory Affairs,

OMB, Room 10235 New Executive

Building, Washington, DC 20503,

Attention: Desk Officer for the

Commodity Futures Trading

Commission.

The Commission considers comments

by the public on this proposed

collection of information in—

• Evaluating whether the proposed

collection of information is necessary

for the proper performance of the

functions of the Commission, including

whether the information will have a

practical use;

• Evaluating the accuracy of the

Commission’s estimate of the burden of

the proposed collection of information,

including the validity of the

methodology and assumptions used;

• Enhancing the quality, usefulness,

and clarity of the information to be

collected; and

• Minimizing the burden of collection

of 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.

OMB is required to make a decision

concerning the collection of information

contained in these proposed regulations

between 30 and 60 days after

publication of this document in the

Federal Register. A comment to OMB is

best assured of having its full effect if

OMB receives it within 30 days of

publication. This does not affect the

deadline for the public to comment to

the Commission on the proposed

regulations.

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.

C. Cost-Benefit Analysis

Section 119 of the CFMA amended

Section 15 of the CEA to require that the

Commission, before promulgating a

regulation under the CEA or issuing an

order, consider the costs and benefits of

the Commission’s action in light of five

criteria.19 The main considerations

relevant to this proposal are the first two

considerations set forth in the CEA,

‘‘protection of market participants and

the public’’ and ‘‘efficiency,

competitiveness and financial integrity

of the futures markets.’’ The

Commission believes that persons who

are registered as BDs with the SEC are

appropriate subjects for notice

registration where their futures-related

activity is restricted to security futures

products. The Commission also believes

that these additional registrants may

promote the efficiency and

competitiveness of those futures

markets on which security future

products may be traded and that their

presence as intermediaries in these

markets may serve to promote the

financial integrity of those markets. The

Commission further notes that the

CFMA specifically mandates that

registered BDs be noticed-registered

with the Commission as an FCM or IB.

List of Subjects

17 CFR Part 3

Brokers, Commodity futures,

Reporting and recordkeeping

requirements.

17 CFR Part 170

Authority delegations (Government

agencies), Commodity futures.

For the reasons discussed in the

preamble, the Commission hereby

proposes to amend Chapter I of Title 17

of the Code of Federal Regulations as

follows:

PART 3—REGISTRATION

1. The authority citation for part 3

continues to read as follows:

Authority: 5 U.S.C. 552, 552b; 7 U.S.C. 1a,

2, 4, 4a, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i,

6k, 6m, 6o, 6p, 8, 9, 9a, 12, 12a, 13b, 13c,

16a, 18, 19, 21, 23.

2. Section 3.10 is amended by revising

paragraph (a)(1)(i), by adding a new

paragraph (a)(3) and by revising the first

sentence of paragraph (d), to read as

follows:

§ 3.10 Registration of futures commission

merchants, introducing brokers, commodity

trading advisors, commodity pool operators

and leverage transaction merchants.

(a) Application for registration. (1)(i)

Except as provided in paragraph (a)(3)

of this section, application for

registration as a futures commission

merchant, introducing broker,

commodity trading advisor, commodity

pool operator or leverage transaction

merchant must be on Form 7–R,

completed and filed with the National

Futures Association in accordance with

the instructions thereto.

* * * * *

(3) Notice registration as a futures

commission merchant or introducing

broker for certain securities brokers or

dealers. (i) Any broker or dealer that is

registered with the Securities and

Exchange Commission may be

registered as a futures commission

merchant or introducing broker, as

applicable, by following such

procedures for notice registration as

may be specified by the National

Futures Association, if—

(A) The broker or dealer limits its

solicitation of orders, acceptance of

orders, or execution of orders, or placing

of orders on behalf of others involving

any contracts of sale of any commodity

for future delivery, on or subject to the

rules of any contract market or

registered derivatives transaction

execution facility, to security futures

products as defined in section 1a(32) of

the Act;

(B) The registration of the broker or

dealer is not suspended pursuant to an

order of the Securities and Exchange

Commission; and

(C) The broker or dealer is a member

of a national securities association

registered pursuant to section 15A(a) of

the Securities Exchange Act of 1934.

(ii) The registration will be effective

upon the filing of the notice prescribed

by the National Futures Association in

accordance with the instructions

thereto.

* * * * *

(d) Annual filing. Any person

registered as a futures commission

merchant, introducing broker,

commodity trading advisor, commodity

pool operator or leverage transaction

merchant in accordance with paragraph

(a)(1) and (a)(2) of this section must file

with the National Futures Association a

Form 7–R, completed in accordance

with the instructions thereto, annually

on a date specified by the National

Futures Association. * * *

PART 170—REGISTERED FUTURES

ASSOCIATIONS

3. The authority citation for part 170

continues to read as follows:

Authority: 7 U.S.C. 6p, 12a and 21, unless

otherwise noted.

Subpart C—Membership in a

Registered Futures Association

4. Section 170.15 is revised to read as

follows:

§ 170.15 Futures commission merchants.

(a) Except as provided in paragraph

(b) of this section, each person required

to register as a futures commission

merchant must become and remain a

member of at least one futures

27480 Federal Register / Vol. 66, No. 96 / Thursday, May 17, 2001 / Proposed Rules

association which is registered under

section 17 of the Act and which

provides for the membership therein of

such futures commission merchant,

unless no such futures association is so

registered.

(b) The requirements of paragraph (a)

of this section shall not apply to a

futures commission merchant registered

in accordance with § 3.10(a)(3) of this

chapter.

Issued in Washington, DC on May 14, 2001

by the Commission.

Edward W. Colbert,

Deputy Secretary of the Commission.

[FR Doc. 01–12489 Filed 5–16–01; 8:45 am]

BILLING CODE 6351–01–P

DEPARTMENT OF TRANSPORTATION

Federal Highway Administration

23 CFR Part 655

[FHWA Docket No. FHWA–2001–8846]

RIN 2125–AE83

Revision of the Manual on Uniform

Traffic Control Devices; General

Provisions, Markings, and Signals

AGENCY: Federal Highway

Administration (FHWA), DOT.

ACTION: Notice of proposed amendments

to the Manual on Uniform Traffic

Control Devices (MUTCD); request for

comments.

SUMMARY: The MUTCD is incorporated

by reference in 23 CFR part 655, subpart

F, approved by the Federal Highway

Administration, and recognized as the

national standard for traffic control

devices on all public roads. The purpose

of this notice is to propose revised

wording on the design and installation

of traffic control devices, specifically

accessible pedestrian signals, in the

MUTCD.

This document proposes new text for

the MUTCD in Part 1—General and Part

4—Signals. The proposed changes

included herein are intended to revise

supporting information and guidance

relating to the decisionmaking process

concerning accessible pedestrian

signals.

DATES: Comments must be received on

or before June 18, 2001.

ADDRESSES: Mail or hand deliver

comments with the docket number that

appears in the heading of this document

to the U.S. Department of

Transportation, Dockets Management

Facility, Room PL–401, 400 Seventh

Street, SW., Washington, DC 20590 or

submit electronically at http://

dmes.dot.gov/submit. All comments

should include the docket number that

appears in the heading of this

document. All comments received will

be available for examination and

copying at the above address between 9

a.m. and 5 p.m., e.t., Monday through

Friday, except Federal holidays. Those

desiring notification of receipt of

comments must include a selfaddressed, stamped postcard or you

may print the acknowledgment page

that appears after submitting comments

electronically.

FOR FURTHER INFORMATION CONTACT: For

information regarding the notice of

proposed amendments contact Mr.

Ernest Huckaby, Office of

Transportation Operations, Room 3408,

(202) 366–9064, or Mr. Raymond

Cuprill, Office of the Chief Counsel,

Room 4230, (202) 366–0791, U.S.

Department of Transportation, Federal

Highway Administration, 400 Seventh

Street, SW., Washington, DC 20590.

SUPPLEMENTARY INFORMATION:

Electronic Access

Internet users may access all

comments received by the U.S. DOT

Dockets, Room PL 401, by using the

universal resource locator (URL): http:/

/dms.dot.gov. It is available 24 hours

each day, 365 days each year. Please

follow the instructions online for more

information and help. An electronic

copy of this notice of proposed

amendment may be downloaded using a

modem and suitable communications

software from the Government Printing

Office’s Electronic Bulletin Board

Service at (202) 512–1661. Internet users

may reach the Office of the Federal

Register’s home page at: http://

www.nara.gov/fedreg and the

Government Printing Office’s database

at: http://www.access.gpo.gov/nara.

Background

The MUTCD is available for

inspection and copying as prescribed in

49 CFR part 7 on the FHWA’s website

at http://mutcd.fhwa.dot.gov. This

notice is being issued to provide an

opportunity for public comment on the

desirability of proposed amendments to

Section 1A.11 and to Section 4E.06

concerning accessible pedestrian

signals. Based on the comments

received and its own experience, the

FHWA may issue a final rule concerning

the proposed changes included in this

notice.

This notice of proposed amendment is

being published in response to several

letters received by the U.S. Department

of Transportation objecting to language

in the text of the MUTCD summarized

in the final rule published at 65 FR

78923 on December 18, 2000. The letters

received by the U.S. Department of

Transportation were written by the

American Council of the Blind, the

Association for Education and

Rehabilitation of the Blind and Visually

Impaired Division Nine—Orientation

and Mobility, the National Committee

on Uniform Traffic Control Devices, and

Accessible Design for the Blind.

The letter from the National

Committee on Uniform Traffic Control

Devices (NCUTCD) discusses a meeting

it held in January 2001 with

representatives of various organizations

that represent individuals with visual

disabilities. During the meeting the

attendees drafted text they believe

would be more acceptable to

pedestrians with visual disabilities and

the organizations that represent them.

However, the NCUTCD recommended

one sentence of the draft text be deleted

because it believed it may encourage a

‘‘do nothing’’ response by a traffic

agency as opposed to conducting an

engineering study of the request to

install a traffic control device at a

location.

The FHWA agrees with this position

as Federal, State, and local agencies are

required to comply with the Americans

with Disabilities Act of 1990 (ADA) (42

U.S.C. 1201 et seq.). Title II of the ADA

of 1990 requires that public entites not

discriminate against people with

disabilities. Subject to the provisions of

Title II, no qualified individual with a

disability shall, by reason of such

disability, be excluded from

participation in or be denied the

benefits of the services, programs, or

activities of a public entity, or be

subjected to discrimination by any such

entity. The FHWA believes that a traffic

agency should review a request for

pedestrian signals accessible to visually

impaired persons in the same manner as

it does all other requests to install a

traffic control device. Also, the FHWA

has the added requirement under the

Rehabilitation Act of 1973 (29 U.S.C.

701 et seq.) and the ADA of 1990 of

overseeing that recipients of Federal-aid

funding comply with the laws and do

not discriminate against people with

disabilities.

The FHWA invites comments on the

proposed new text for the last paragraph

of the MUTCD Section 1A.11 and the

first six paragraphs of the MUTCD

Section 4E.06. The proposed changes

are included in the following

discussion: