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[Federal Register: October 22, 1996 (Volume 61, Number 205)]
[Rules and Regulations]
[Page 54731-54732]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr22oc96-4]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 4


Interpretation Regarding Use of Electronic Media by Commodity
Pool Operators and Commodity Trading Advisors

AGENCY: Commodity Futures Trading Commission.

ACTION: Extension of comment period and effective date of
interpretation.

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[[Page 54732]]

SUMMARY: On August 8, 1996, the Commodity Futures Trading Commission
(``Commission'') issued an Interpretation Regarding Use of Electronic
Media by Commodity Pool Operators and Commodity Trading Advisors, 61 FR
42146 (August 14, 1996). The deadline for the submission of comments
and the effective date was originally October 15, 1996. The Commission
has determined to extend the period for public comment for thirty days,
or until November 14, 1996. In addition, the Commission has determined
to delay the effective date for a period of sixty days, or until
December 16, 1996, to allow the Commission sufficient time to consider
any additional comments that may be received during the extended
comment period. The Pilot Program for electronic filing of commodity
pool operator and commodity trading advisor disclosure documents will
commence on October 15, 1996, as originally provided.

DATES: The Interpretative Release referenced herein is effective on
December 16, 1996. Written comments must be received on or before
November 14, 1996.

ADDRESSES: Comments should be submitted to Jean A. Webb, Secretary of
the Commission, Commodity Futures Trading Commission, 1155 21st Street,
N.W., Washington, D.C. 20581. In addition, comments may be sent by
facsimile transmission to facsimile number (202) 418-5521, or by
electronic mail to secretarycftc.gov.

FOR FURTHER INFORMATION CONTACT:
Susan C. Ervin, Deputy Director/Chief Counsel, or Gary L. Goldsholle,
Attorney/Advisor, Division of Trading and Markets, Commodity Futures
Trading Commission, 1155 21st Street, N.W., Washington, D.C. 20581.
Telephone number: (202) 418-5450. Facsimile number: (202) 418-5536.
Electronic mail: tmcftc.gov.

SUPPLEMENTARY INFORMATION: On August 8, 1996, the Commission issued an
Interpretation Regarding Use of Electronic Media by Commodity Pool
Operators and Commodity Trading Advisors (``Interpretative Release'' or
``Release''). The Interpretative Release was designed to provide
commodity pool operators (``CPOs''), commodity trading advisors
(``CTAs''), and associated persons (``AP'') thereof, with guidance
concerning the application of the Commodity Exchange Act and
regulations thereunder to activities involving electronic media. The
Commission sought comment on all issues discussed in the release, and
any related issues, and provided that the effective date of the
Interpretative Release would be October 15, 1996 and that comments
should be received on or before that date. On October 7, 1996, the
Managed Futures Association requested that the Commission postpone the
effective date of the Interpretative Release until the Commission has
completed its review of all comments received on the Release. The
Commission has also received a second request to extend the comment
period and the effective date.

    The Commission has determined to extend the comment period on the
Interpretative Release for an additional thirty days and the effective
date of the release for an additional sixty days. These postponements
will provide additional time both for public comment on relevant issues
and for the Commission's review of such comments prior to the effective
date of the Release. The Commission emphasizes, however, that this
deferment does not affect the statutory and regulatory requirements
applicable to persons acting as CPOs and CTAs, whether by means of
electronic media or otherwise. As noted in the Interpretative Release,
``persons using electronic media are subject to the same statutory and
regulatory requirements under the Commission's regulatory framework as
persons employing other modes of communication.'' 61 FR at 42150. The
Commission sought to assist such persons in the use of electronic media
by publishing guidance as to specific applications of existing
requirements in the Interpretative Release. The Commission also sought
comment in various sections as to whether alternative methodologies
would be acceptable.\1\ The Commission also notes that the Commission
staff letters and advisories cited in the Release, as stated therein,
``represent interpretations by the Commission's staff and do not
necessarily represent interpretations by the Commission.'' 61 FR at
42149 n.24. These staff statements provide relevant precedent and
guidance.
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    \1\ For example, with respect to the use of personal
identification numbers to substitute for manually signed
acknowledgments, the Commission welcomed comment ``concerning other
procedures for electronic acknowledgment that are consistent with
the objectives stated above.'' 61 FR at 42160.
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    Finally, although the Commission is delaying the effective date of
the Interpretative Release pending the receipt and review of additional
comments, CPOs and CTAs may continue to rely on the positions stated
therein as ``safe harbor'' positions to aid CTAs and CPOs making use of
electronic media pending further statements of the Commission's views.
Additionally, the Pilot Program for electronic filing of CPO and CTA
disclosure documents will commence on October 15, 1996, as originally
proposed and is not affected by these extensions.

    Issued in Washington, D.C. on October 15, 1996, by the
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 96-26949 Filed 10-21-96; 8: 45am]
BILLING CODE 6351-01-M
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