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[Federal Register: February 2, 1998 (Volume 63, Number 21)]

[Rules and Regulations]

[Page 5232-5233]

From the Federal Register Online via GPO Access [wais.access.gpo.gov]

[DOCID:fr02fe98-14]



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COMMODITY FUTURES TRADING COMMISSION



17 CFR Part 11





Delegation of Authority to Conduct Investigations in Assistance

of Foreign Futures Authorities; Correction



AGENCY: Commodity Futures Trading Commission.



ACTION: Final rules; correction.



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SUMMARY: On April 11, 1997, the Commission published in the Federal

Register (62 FR 17702) final rules amending certain provisions of the

Commission's Rules to formalize the authority of the Director of the

Division of Enforcement to conduct investigations in assistance of

foreign futures authorities. The purpose of the amendments was to add

language to the existing rules in the interest of setting forth agency

procedure with respect to conducting such investigations. However, text

from the existing rules was inadvertently omitted in the publication of

the amendments. This correction serves as a clarification of the

inadvertent omissions.



DATES: Effective: February 2, 1998.



FOR FURTHER INFORMATION CONTACT: Ethiopis Tafara, Senior International

Counsel, Division of Enforcement, US Commodity Futures Trading

Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington,

DC 20581. Telephone (202) 418-5362.



SUPPLEMENTARY INFORMATION: The Commission is correcting inadvertent

omissions in the publication of the final rules amending Secs. 11.1 and

11.2(a) of the Commission's Rules. The amendments expanded the scope of

17 CFR Part 11 and authorized formally the Director of the Division of

Enforcement to conduct investigations in assistance of foreign futures

authorities. As the Supplementary Information accompanying the

amendments made clear, no other change in Secs. 11.1 and 11.2(a) of the

Commission's Rules was being made.\1\ However, certain existing

language in Secs. 11.1 and 11.2(a) of the Commission's Rules relating

to agency practice was not republished at that time. The omitted

language serves as an elaboration of the scope of 17 CFR Part 11 as set

forth in the first sentence of Sec. 11.1 and of the authority delegated

to the Director of the Division of Enforcement as recited in the first

sentence of Sec. 11.2(a). Part of the omitted language also describes

agency practice with respect to certain investigatory activities

conducted by the Director of



[[Page 5233]]



the Division of Trading and Markets and the Chief Economist and

Director of the Division of Economic Analysis. So as to avoid any

confusion of the public, and to ensure its inclusion in this year's

edition of the Code of Federal Regulations, this correction sets out

the language relating to agency procedure that was not included with

the original amendments. Consequently, the Commission is not seeking

public comment. Similarly, the Commission finds good cause to make this

correction clarifying the omissions effective immediately.

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    \1\ See 62 FR 17702.

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    In final rule, FR Doc. 97-9399, published on April 11, 1997 (62 FR

17702) make the following corrections:



PART 11--[CORRECTED]



    1. On page 17702, in the second column, Sec. 11.1 is corrected to

read as follows:





Sec. 11.1  Scope and applicability of rules.



    The rules of this part apply to investigatory proceedings conducted

by the Commission or its staff pursuant to Sections 6(c) and 8 and

12(f) of the Commodity Exchange Act, as amended, 7 U.S.C. 9 and 15 and

12 and 16(f) (Supp. IV, 1974), to determine whether there have been

violations of that Act, or the rules, regulations or orders adopted

thereunder, or, in accordance with the provisions of Section 12(f) of

the Act, whether there have been violations of the laws, rules or

regulations relating to futures or options matters administered or

enforced by a foreign futures authority, or whether an application for

designation or registration under the Act should be denied. Except as

otherwise specified herein, the rules will apply to the conduct of

investigation whether or not the Commission has authorized the use of

subpoenas in the particular matter to compel the production of

evidence.

    2. On page 17702, in the third column, Sec. 11.2, paragraph (a) is

corrected to read as follows:





Sec. 11.2  Authority to conduct investigations.



* * * * *

    (a) The Director of the Division of Enforcement and members of the

Commission staff acting pursuant to his authority and under his

direction may conduct such investigations as he deems appropriate to

determine whether any persons have violated, are violating, or are

about to violate the provisions of the Commodity Exchange Act, as

amended, or the rules, regulations or orders adopted by the Commission

pursuant to that Act, or, in accordance with the provisions of Section

12(f) of the Act, whether any persons have violated, are violating or

are about to violate the laws, rules or regulations relating to futures

or options matters administered or enforced by a foreign futures

authority, or whether an applicant for registration or designation

meets the requisite statutory criteria. For this purpose, the Director

may obtain evidence through voluntary statements and submissions,

through exercise of inspection powers over boards of trade, reporting

traders, and persons required by law to register with the Commission,

or when authorized by order of the Commission, through the issuance of

subpoenas. The Director shall report to the Commission the results of

his investigations and recommend to the Commission such enforcement

action as he deems appropriate. In particular matters the Director of

the Division of Trading and Markets and the Chief Economist and

Director of the Division of Economic Analysis, and members of their

staffs acting within the scope of their respective responsibilities,

are also authorized to investigate, report and recommend to the

Commission in accordance with these rules.

* * * * *

    Issued in Washington, DC on January 27, 1998, by the Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 98-2470 Filed 1-30-98; 8:45 am]

BILLING CODE 6351-01-M
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