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[Federal Register: October 28, 1999 (Volume 64, Number 208)]
[Notices]
[Page 58036-58037]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28oc99-40]

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COMMODITY FUTURES TRADING COMMISSION


Notice of Establishment of the Technology Advisory Committee

SUMMARY: The Commodity Futures Trading Commission has determined to
establish the ``Technology Advisory Committee'' As required by Section
9(a)(2) of the Federal Advisory Committee Act 5 U.S.C. app. 2,
Sec. 9(a)(2) and 41 CFR 101-6.1007, the Commission has consulted with
the Committee Management Secretariat of the General Services
Administration. The Commission certifies that the creation of this
advisory committee is necessary and is in the public interest in
connection with the performance of duties imposed on the Commission by
the Commodity Exchange Act, 7 U.S.C. 1 et seq., as amended. This notice
is published pursuant to Section 9(a)(2) of the Federal Advisory
Committee Act, 5 U.S.C. app. 2, Sec. 9(a)(2) and 41 CFR 101-6.1015.

FOR FURTHER INFORMATION CONTACT: Elizabeth Fox, Legal Counsel to
Commissioner James E. Newsome, at 202-418-5052, or Marcia K. Blase,
Committee Management Officer, at 202-418-5138. Written comments should
be

[[Page 58037]]

submitted to Jean A. Webb, Secretary, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street, NW, Washington,
DC 20581.

SUPPLEMENTARY INFORMATION: Sophisticated communication technology has
expanded access to markets and market users. The rise of electronic
screen-based trading is changing the face of the financial services
industry and along with it, the regulatory concerns of the Commission,
of other regulators and of the United States Congress. As electronic
trading platforms become more prevalent and in some markets, directly
compete with or displace traditional open-outcry trading pits, it is
imperative that the Commission keep informed of the ever evolving
technological environment, the impact of technology on our markets,
market professionals and other market participants, and to consider
regulatory reform as appropriate.
    The Technology Advisory Committee's charter directs the committee
to assist the Commission in: (1) Reviewing emerging technologists
utilized by financial services and commodity markets and their
participants, (2) identifying technology providers for the financial
services and commodity markets, (3) analyzing the impact of emerging
technologies on financial services and commodity markets, as well as on
market professionals and market users, particularly in the areas of
system capacities and readiness, order flow practices, and clearing and
payment activities, (4) reviewing the Commodity Exchange Act and the
regulations promulgated thereunder to assess their applicability to
electronic issues and to ensure the Commission's ability to exercise
appropriate fraud and manipulation authority, and (5) examining ways
that the Commission may respond to the increasing use of technology in
financial services and commodity markets through appropriate
legislative proposals and/or regulatory reform.
    The Commission anticipates that the Technology Advisory Committee
will provide a valuable forum for information exchange and advice on
these matters. The reports, recommendations and general advice from the
committee will enable the Commission to assess more effectively the
need for possible statutory, regulatory, policy or programmatic
initiatives to address the challenges posed by a technology driven
marketplace. The committee's membership will include representatives of
those markets, firms and market users most directly involved in and
affected by the technological evolution of the industry and will be
balanced in terms of points of view represented. Toward that end, the
Commission is considering for membership a broad cross-section of
persons representing technology providers, exchanges, regulatory
organizations, financial intermediaries, end-users, traders and
academics.
    The Commission has found that advice on such specialized matters is
best obtained through the advisory committee framework rather than
through other more costly, less flexible and less efficient means of
assembling persons from all sectors of the financial services industry.
The Commission has also found that the Technology Advisory Committee
will not duplicate the functions of the Commission, another existing
advisory committee, or other means such as public hearings. The
Commission has concluded, therefore, that the creation of the
Technology Advisory Committee is essential to the accomplishment of its
mission and is in the public interest.
    Fifteen days after publication of this notice in the Federal
Register, a copy of the charter of the Technology Advisory Committee
will be filed with the Chairman of the Commission, the Senate Committee
on Agriculture, Nutrition and Forestry, and the House Committee on
Agriculture. A copy of the charter will be furnished to the Library of
Congress and the Committee Management Secretariat and will be posted on
the Commission's website at http://www.cftc.gov.

    Issued in Washington, DC, on October 20, 1999, by the
Commission.
Jean W. Webb,
Secretary of the Commission.
[FR Doc. 99-28105 Filed 10-27-99; 8:45 am]
BILLING CODE 6351-01-M
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