32260 Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Proposed Rules 

4 Under Commission Rule 4.3(a), the 15-day 

comment period begins on Monday, June 9, 2008, 

the first business day after the date on which the 

comment period is currently scheduled to end. 16 

CFR 4.3(a). 

1Revision of Federal Speculative Position Limits, 

72 FR 65483 (November 21, 2007). 

secure.commentworks.com/ftcmarketmanipulationANPR/)(and 

following the instructions on the webbased form). To ensure that the 

Commission considers an electronic 

comment, you must file it on the webbased form at the weblink (https:// 

secure.commentworks.com/ftcmarketmanipulationANPR/). If this 

notice appears at http:// 

www.regulations.gov, you may also file 

an electronic comment through that 

website. The Commission will consider 

all comments that regulations.gov 

forwards to it. You may also visit the 

FTC website at (http://www.ftc.gov/opa/ 

index.shtml)to read the ANPR and the 

news release describing it. 

A comment filed in paper form 

should include the ‘‘Market 

Manipulation Rulemaking, P082900’’

reference both in the text and on the 

envelope, and should be mailed to the 

following address: Federal Trade 

Commission, Market Manipulation 

Rulemaking, P.O. Box 2846, Fairfax, VA 

22031-0846. This address does not 

accept courier or overnight deliveries. 

Courier or overnight deliveries should 

be delivered to: Federal Trade 

Commission/Office of the Secretary, 

Room H-135 (Annex G), 600 

Pennsylvania Avenue, NW, Washington, 

DC 20580. 

The FTC Act and other laws the 

Commission administers permit the 

collection of public comments to 

consider and use in this proceeding as 

appropriate. The Commission will 

consider all timely and responsive 

public comments that it receives, 

whether filed in paper or electronic 

form. Comments received will be 

available to the public on the FTC 

website, to the extent practicable, at 

http://www.ftc.gov. As a matter of 

discretion, the FTC makes every effort to 

remove home contact information for 

individuals from the public comments it 

receives before placing those comments 

on the FTC website. More information, 

including routine uses permitted by the 

Privacy Act, may be found in the FTC’s 

privacy policy, at (http://www.ftc.gov/ 

ftc/privacy.htm). 

FOR FURTHER INFORMATION CONTACT: 

James Mongoven, Deputy Assistant 

Director of Policy & Coordination, 

Bureau of Competition, Federal Trade 

Commission, Market Manipulation 

Rulemaking, P.O. Box 2846, Fairfax, VA 

22031-0846, (202) 326-3772. 

SUPPLEMENTARY INFORMATION: On May 7, 

2008, the Commission published an 

ANPR pursuant to the authority granted 

to it in Section 811 of the EISA to 

promulgate regulations prohibiting 

‘‘market manipulation’’ in the 

petroleum industry. In that Notice, the 

Commission solicited comment on a 

variety of topics including the scope of 

a proposed Rule; the impact of other 

agencies’ extant rules against market 

manipulation on a proposed Rule; and 

the effectiveness of monetary penalties 

in curbing behavior proscribed by a 

proposed Rule. The ANPR stated that 

the period for submitting initial 

comments would close on June 6, 2008. 

On May 19, 2008, the Commission 

received a letter from counsel for the 

American Petroleum Institute (‘‘API’’) 

requesting that the Commission extend 

the comment deadline in the ANPR 

proceeding for an additional 60 days, 

resulting in a 90-day comment period. 

In its request, API advances three 

arguments in support of an extension of 

the comment period. First, API argues 

that additional time is needed to 

canvass its more than 400 members and 

to ‘‘consolidate and present that 

information for the Commission’s 

consideration.’’ Second, API contends 

that the extension is necessary to ensure 

that there is ‘‘sufficient time for 

thoughtful deliberation’’ about the 

‘‘many novel and complex issues’’

addressed in the ANPR. Third, API 

opines that ‘‘defining ‘manipulation’ is 

inherently difficult and not within the 

Commission’s traditional antitrust or 

consumer protection experience,’’ and 

thus providing additional time to 

commenters will yield more carefully 

considered comments, which will be 

beneficial to the Commission as it 

proceeds. 

The Commission is sympathetic to the 

concerns raised by API. The 

Commission, however, is not persuaded 

that a full 60-day extension—which 

would triple the time allocated by the 

Commission for the receipt of 

comments—is necessary to ensure that 

interested parties have an adequate 

opportunity to prepare and submit 

thoughtful responses at this stage in the 

proceeding. The Commission believes 

that a 15-day extension of the initial 30- 

day comment period should be 

sufficient to enable API and all other 

commenters to finalize and submit 

comments in response to the ANPR 

while avoiding unnecessary delay. 

Further, in the event that the 

Commission determines to issue a 

Notice of Proposed Rulemaking in this 

proceeding, interested parties will be 

afforded an additional period of time in 

which to submit comments in response 

to a proposed Rule. Accordingly, the 

Commission has determined to extend 

the comment period set forth in the 

ANPR until June 23, 2008.4

By direction of the Commission. 

Donald S. Clark, 

Secretary. 

[FR Doc. E8–12739 Filed 6–5–08: 8:45 am] 

[BILLING CODE 6750–01–S] 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 150 

RIN 3038–AC140 

Revision of Federal Speculative 

Position Limits 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rules; withdrawal. 

SUMMARY: On November 21, 2007, the 

Commodity Futures Trading 

Commission (Commission or CFTC) 

published a proposed rulemaking to 

increase the Federal speculative 

position limits for certain agricultural 

commodity contracts set out in 

Commission regulation 150.2 (proposed 

rulemaking).1 The proposed rulemaking 

would have increased the single-month 

and all-months-combined position 

limits for all contracts except contracts 

based on oats in accordance with the 

formula set out in Commission 

regulation 150.5(c). The proposed 

rulemaking would have also required 

the aggregation of traders’ positions in 

contracts that share substantially 

identical terms with regulation 150.2- 

enumerated contracts, regardless of 

whether such contracts were 

specifically delineated in that 

regulation, for the purposes of 

ascertaining compliance with the 

Federal speculative position limits. For 

the reasons provided below, the 

Commission has determined to 

withdraw the proposed rulemaking. 

FOR FURTHER INFORMATION CONTACT: 

Donald Heitman, Senior Special 

Counsel, Division of Market Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, telephone (202) 418–5041, 

facsimile number (202) 418–5507, email dheitman@cftc.gov; or Martin 

Murray, Economist, Division of Market 

Oversight, telephone (202) 418–5276, 


dwashington3 on PRODPC61 with PROPOSALS
Federal Register / Vol. 73, No. 110 / Friday, June 6, 2008 / Proposed Rules 32261 

2Commission regulation 150.2 imposes three 

types of position limits for each specified contract: 

a spot month limit, a single-month limit, and an allmonths-combined limit. The Commission most 

recently adopted amendments to levels for Federal 

speculative position limits in 2005. See 70 FR 

24705 (May 11, 2005). 

3The New York Board of Trade was acquired by 

ICE Futures U.S. in January, 2007. 

4 72 FR 74213 (December 31, 2007). 

5Federal Register Comment File 07–014, 

available at http://www.cftc.gov/lawandregulation/

federalregister/federalregistercomments/2007/07– 

014.html. 

6Risk Management Exemption from Federal 

Speculative Position Limits, 72 FR 66097 

(November 27, 2007) (to be withdrawn). 

1Risk Management Exemption from Federal 

Speculative Position Limits, 72 FR 66097 

(November 27, 2007). 

facsimile number (202) 418–5507, email mmurray@cftc.gov. 

SUPPLEMENTARY INFORMATION: The 

Commission has long established and 

enforced speculative position limits for 

futures contracts on various agricultural 

commodities. The Commission 

periodically reviews these Federal 

speculative position limits, which are 

set out in Commission regulation 

150.2.2 On November 21, 2007, the 

Commission published its proposed 

rulemaking to increase Federal 

speculative position limits for all singlemonth and all-months-combined 

positions in all commodity markets 

enumerated in Commission regulation 

150.2, except Chicago Board of Trade 

(CBT) Oats, based on the formula set out 

in Commission regulation 150.5(c). The 

rulemaking proposed to increase levels 

for single-month and all-monthscombined positions for CBT Corn, 

Soybeans, Wheat, Soybean Oil, and 

Soybean Meal; Minneapolis Grain 

Exchange Hard Red Spring Wheat; 

Kansas City Board of Trade Hard Winter 

Wheat; and New York Board of Trade 3

Cotton No. 2. In addition, the 

rulemaking proposed to require the 

aggregation of positions in contracts that 

share substantially identical terms with 

regulation 150.2-enumerated contracts, 

regardless of whether such contracts 

were specifically delineated in that 

regulation, for the purposes of 

ascertaining traders’ compliance with 

the Federal speculative position limits. 

The Commission requested public 

comment by December 21, 2007. On 

December 31, 2007, the Commission 

extended the initial comment period to 

January 21, 2008 to give interested 

parties additional opportunity to 

comment.4 The Commission received a 

total of 40 comment letters in response 

to its Federal Register publication.5 Six 

letters generally favored the proposed 

regulations and 34 letters were generally 

opposed to their adoption. An 

Agricultural Forum held by the 

Commission on April 22, 2008 served as 

an additional venue for the presentation 

of views with respect to the proposed 

rulemaking and a related Commission 

proposal to adopt a risk management 

exemption from the Federal speculative 

position limits.6

Collectively, the comments received 

in response to the proposed rulemaking 

and at the Commission’s April 22 

Agricultural Forum reflected differing 

perspectives on a wide range of issues 

of substantive import to the proposed 

rulemaking. The issues covered by the 

commenters, both in favor and opposed 

to the Commission’s proposal to revise 

the Federal speculative position limits, 

included product margin requirements, 

the convergence of cash and futures 

transaction prices, the impact of 

commodity-linked instruments traded 

on national securities exchanges on 

CFTC regulated transactions, the degree 

of transparency for market participation, 

and the quantification of the impact of 

speculative trading on market volatility. 

In light of the wide range of divergent 

positions that have been put forth by 

interested parties, the current market 

conditions for the contracts that would 

be affected by the proposed rulemaking, 

and in order to determine whether 

further consensus among the affected 

parties should be sought, the 

Commission has determined to 

withdraw the proposed rulemaking 

pending further consideration of the 

relevant issues. 

Issued by the Commission this June 2, 

2008, in Washington, DC. 

David Stawick, 

Secretary of the Commission. 

[FR Doc. E8–12728 Filed 6–5–08; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 150 

RIN 3038–AC40 

Risk Management Exemption From 

Federal Speculative Position Limits 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rules; withdrawal. 

SUMMARY: On November 27, 2007, the 

Commodity Futures Trading 

Commission (Commission or CFTC) 

published proposed rules to create a 

‘‘risk management exemption’’ from 

Federal speculative position limits—the 

limits on the size of speculative 

positions that traders may hold or 

control in futures and futures equivalent 

option contracts on certain designated 

agricultural commodities. The 

Commission has determined to 

withdraw these proposed rules. 

FOR FURTHER INFORMATION CONTACT: 

Donald Heitman, Senior Special 

Counsel, Division of Market Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, telephone (202) 418–5041, 

facsimile number (202) 418–5507, 

electronic mail dheitman@cftc.gov; or 

John Fenton, Director of Surveillance, 

Division of Market Oversight, telephone 

(202) 418–5298, facsimile number (202) 

418–5507, electronic mail 

jfenton@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

Commission regulation 150.2 imposes 

limits on the size of speculative 

positions that traders may hold or 

control in futures and futures equivalent 

option contracts on certain designated 

agricultural commodities named 

therein. Commission regulation 150.3 

lists certain types of positions that may 

be exempted from these Federal 

speculative position limits. 

On November 27, 2007, the 

Commission published proposed 

amendments that would provide an 

additional exemption from Federal 

speculative position limits for ‘‘risk 

management positions’’ (proposed 

rulemaking).1 The proposal defined a 

risk management position as a futures or 

futures equivalent position, held as part 

of a broadly diversified portfolio of 

long-only or short-only futures or 

futures equivalent positions, that is 

based upon either: (1) A fiduciary 

obligation to match or track the results 

of a broadly diversified index that 

includes the same commodity markets 

in fundamentally the same proportions 

as the futures or futures equivalent 

position; or (2) a portfolio 

diversification plan that has, among 

other substantial asset classes, an 

exposure to a broadly diversified index 

that includes the same commodity 

markets in fundamentally the same 

proportions as the futures or futures 

equivalent position. The exemption, as 

proposed, would have been subject to 

certain conditions, including that the 

positions be passively managed, 

unleveraged, and not carried into the 

spot month. 

The Commission requested public 

comment by January 28, 2008. The 

Commission received a total of 10 

comment letters in response to its 


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