This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

34413 

Vol. 72, No. 120 

Friday, June 22, 2007 

1 7 U.S.C. 5(b) (2006). 

2Section 3(b) of the Act provides in full that it 

is the purpose of this chapter to serve the public 

interests described in subsection (a) of this section 

through a system of effective self-regulation of 

trading facilities, clearing systems, market 

participants and market professionals under the 

oversight of the Commission. To foster these public 

interests, it is further the purpose of this chapter to 

deter and prevent price manipulation or any other 

disruptions to market integrity; to ensure the 

financial integrity of all transactions subject to this 

chapter and the avoidance of systemic risk; to 

protect all market participants from fraudulent or 

other abusive sales practices and misuses of 

customer assets; and to promote responsible 

innovation and fair competition among boards of 

trade, other markets and market participants. 

3 7 U.S.C. 6i (2006). Section 4i of the Act provides 

that it shall be unlawful for any person to make any 

contract 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 if such person shall directly or indirectly 

make such contracts with respect to any commodity 

or any future of such commodity during any one 

day in an amount equal to or in excess of such 

amount as shall be fixed from time to time by the 

Commission, and if such person shall directly or 

indirectly have or obtain a long or short position in 

any commodity or any future of such commodity 

equal to or in excess of such amount as shall be 

fixed from time to time by the Commission, unless 

such person files or causes to be filed with the 

properly designated officer of the Commission such 

reports regarding any transactions or positions 

described in clauses (1) and (2) hereof as the 

Commission may by rule or regulation require and 

unless, in accordance with rules and regulations of 

the Commission, such person shall keep books and 

records of all such transactions and positions and 

transactions and positions in any such commodity 

traded on or subject to the rules of any other board 

of trade, and of cash or spot transactions in, and 

inventories and purchase and sale commitments of 

such commodity. Such books and records shall 

show complete details concerning all such 

transactions, positions, inventories, and 

commitments, including the names and addresses 

of all persons having any interest therein, and shall 

be open at all times to inspection by any 

representative of the Commission or the Department 

of Justice. For the purposes of this section, the 

futures and cash or spot transactions and positions 

of any person shall include such transactions and 

positions of any persons directly or indirectly 

controlled by such person. 

4 7 U.S.C. 12a(5) (2006). 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 18 

RIN 3038–AC22 

Maintenance of Books, Records and 

Reports by Traders 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rules. 

SUMMARY: Commission Regulation 18.05 

requires that a person holding or 

controlling a futures or option position 

in a commodity above a certain level 

(reportable position) on a designated 

contract market or registered derivatives 

transaction execution facility (reporting 

markets) must retain books and records 

and make available to the Commission 

upon request any pertinent information 

with respect to other positions, 

transactions or activities in the 

commodity in which the trader has a 

reportable position. The Commission is 

proposing to amend Regulation 18.05 in 

two respects: To make it explicit that 

persons holding or controlling 

reportable positions on a reporting 

market must retain books and records 

and make available to the Commission 

upon request any pertinent information 

with respect to all other positions and 

transactions in the commodity in which 

the trader has a reportable position, 

including positions held or controlled 

or transactions executed over-thecounter and/or pursuant to Sections 

2(d), 2(g) or 2(h)(1)–(2) of the 

Commodity Exchange Act (Act) or Part 

35 of the Commission’s regulations, on 

exempt commercial markets operating 

pursuant to Sections 2(h)(3)–(5) of the 

Act, on exempt boards of trade 

operating pursuant to Section 5d of the 

Act, and on foreign boards of trade 

(hereinafter referred to collectively as 

non-reporting transactions); and to make 

the regulation clearer and more 

complete with respect to hedging 

activity. The purpose of the 

amendments is to enhance the 

Commission’s ability to deter and 

prevent price manipulation or any other 

disruptions to the integrity of the 

regulated futures markets, to ensure the 

avoidance of systemic risk, and to 

clarify the meaning of the regulation. 

DATES: Comments must be received by 

July 23, 2007. 

ADDRESSES: Comments should be sent to 

the Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, attention: Office of the 

Secretariat. Comments may be sent by 

facsimile to 202–418–5521, or by e-mail 

to secretary@cftc.gov. Reference should 

be made to ‘‘Regulation 18.05.’’ 

Comments may also be submitted to the 

Federal eRulemaking Portal: http:// 

www.regulations.gov. 

FOR FURTHER INFORMATION CONTACT: 

Duane C. Andresen, Special Counsel, 

Division of Market Oversight, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. Telephone 202– 

418–5492; e-mail dandresen@cftc.gov. 

This document is also available at 

www.regulations.gov. 

SUPPLEMENTARY INFORMATION: 

I. Purpose of Regulation 18.05 and 

Statutory Basis 

Section 3(b) of the Commodity 

Exchange Act (Act) 1 declares that the 

purpose of the Act is to, among other 

things, deter and prevent price 

manipulation or any other disruptions 

to market integrity and to ensure the 

financial integrity of all transactions 

subject to the Act and the avoidance of 

systemic risk.2 Section 4i of the Act 3

requires persons holding futures or 

option positions at designated contract 

markets (DCM) or registered derivatives 

transaction execution facilities (DTEF) 

at or above certain levels to keep books 

and records of all: 

(1) Transactions and positions in the 

exchange-traded commodity, 

(2) transactions and positions in any 

such commodity traded on or subject to 

the rules of any other board of trade, 

and 

(3) cash or spot transactions in, and 

inventories and purchase and sale 

commitments of such commodity. 

Such books and records must be open 

at all times for inspection by any 

representative of the Commission or the 

Department of Justice. 

Section 8a(5) of the Act 4 provides 

explicit authority to the Commission to 

make and promulgate such rules and 

regulations as, in the judgment of the 

Commission, are reasonably necessary 

to effectuate any of the provisions or to 

accomplish any of the purposes of the 

Act. In order to accomplish the 

purposes of Sections 3(b) and 4i set 

forth above, the Commission has 

promulgated regulations creating market 

and large trader reporting 


rfrederick on PROD1PC67 with PROPOSALS
34414 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Proposed Rules 

5The Commission’s market and large trader 

reporting rules are contained in Parts 15 through 21 

of the Commission’s regulations. 

6Pursuant to Commission Regulation 15.00(m), a 

reporting market means a designated contract 

market and, unless determined otherwise by the 

Commission with respect to the facility or a specific 

contract listed by the facility, a registered 

derivatives transaction execution facility. 

7Pursuant to Commission Regulation 15.00(l), 

reportable position means: for reports specified in 

parts 17, 18 and § 19.00(a)(2) and (a)(3) of this 

chapter any open contract position that at the close 

of the market on any business day equals or exceeds 

the quantity specified in § 15.03 of this part in 

either: any one future of any commodity on any one 

reporting market, excluding future contracts against 

which notices of delivery have been stopped by a 

trader or issued by the clearing organization of a 

reporting market; or long or short put or call options 

that exercise into the same future of any 

commodity, or long or short put or call options for 

options on physicals that have identical expirations 

and exercise into the same physical, on any one 

reporting market. For the purposes of reports 

specified in § 19.00(a)(1) of this chapter, any 

combined futures and futures-equivalent option 

open contract position as defined in part 150 of this 

chapter in any one month or in all months 

combined, either net long or net short in any 

commodity on any one reporting market, excluding 

futures positions against which notices of delivery 

have been stopped by a trader or issued by the 

clearing organization of a reporting market, which 

at the close of the market on the last business day 

of the week exceeds the net quantity limit in spot, 

single or in all-months fixed in § 150.2 of this 

chapter for the particular commodity and reporting 

market. 

8The Commission also uses large-trader reporting 

information as a means to ensure the avoidance of 

systemic risk in that such information enables 

Commission staff to determine which FCMs 

carrying accounts might have exposure in particular 

markets. 

9Regulation 18.05 states in full that every trader 

who holds or controls a reportable futures or option 

position shall keep books and records showing all 

details concerning all positions and transactions for 

future delivery in the commodity on all reporting 

markets, all positions and transactions in the 

commodity option, and all positions and 

transactions in the cash commodity, its products 

and byproducts and, in addition, commercial 

activities that the trader hedges in the commodity 

underlying the futures contract in which the trader 

is reportable, and shall upon request furnish to the 

Commission any pertinent information concerning 

such positions, transactions or activities. 

10 In describing the requirements of Regulation 

18.05 in 1981, the Commission stated that the 

regulation requires reportable traders to maintain 

books and records of futures positions and 

transactions in the commodity in which they are 

reportable and all positions and transactions in the 

cash commodity and its products and 

byproducts.* * * [T]he Commission wishes to 

underscore its view that the book and 

recordkeeping requirements and inspection 

provision contained therein are essential to 

accomplish the purposes of the Act and within the 

Commission’s authority to adopt pursuant to 

section[s] 4i and 8a(5) of the Act. These 

requirements have always applied to the traders 

who hold or control a reportable position, and have 

not been restricted in any way. ‘‘Reporting 

Requirements for Contract Markets, Futures 

Commission Merchants, Members of Exchanges and 

Large Traders,’’ 46 FR 59,960, 59,963 (December 8, 

1981) (footnote omitted). 

11The Commission currently requests such 

information an average of three times per year. 

12Sections 6(c), 6c, 6(d) and 9(a)(2) of the Act 

authorize the Commission to bring enforcement 

actions against any person who is manipulating or 

attempting to manipulate or has manipulated or 

attempted to manipulate the market price of any 

commodity, in interstate commerce, or for future 

delivery on or subject to the rules of any registered 

entity. 

13For instance, since 1999, Commission staff, 

through foreign terminal no-action letters, has 

allowed 18 FBOTs to make their trading systems 

available by direct access to members and other 

participants in the U.S. without requiring the 

FBOTs to register as DCMs or DTEFs. 

requirements.5 Included among these 

regulations is a requirement that 

persons holding futures or option 

positions at DCMs or DTEFs (reporting 

markets) 6 at or above reportable levels 

(reportable positions) 7 are identified to 

the Commission under the large trader 

reporting system (LTRS). 

The LTRS, which requires that 

clearing members, futures commission 

merchants (FCM) and foreign brokers 

file daily reports with the Commission, 

enables the Commission to assess an 

individual trader’s activities and 

potential market power and to enforce 

the Commission or DCM-set limits on 

speculative positions.8 Once a trader 

holds a reportable position, the trader is 

subject to Commission Regulation 

18.05,9 which requires that the trader 

keep books and records showing all 

details concerning: 

(1) All positions and transactions for 

future delivery in the commodity on all 

reporting markets; 

(2) all positions and transactions in 

the commodity option; 

(3) all positions and transactions in 

the cash commodity, its products and 

byproducts; and 

(4) commercial activities that the 

trader hedges in the commodity 

underlying the futures contract in which 

the trader is reportable.10

A reportable trader is required to 

furnish to the Commission, upon 

request, any pertinent information 

concerning these positions, transactions 

or activities.11 Traders who do not hold 

reportable positions do not have 

obligations under Regulation 18.05. 

II. Proposed Amendments 

A. Introduction 

In order to enhance its ability to 

detect and prevent manipulation of 

regulated markets and products and to 

ensure the avoidance of systemic risk, as 

well as to clarify the meaning of the 

regulation and bring it up to date, the 

Commission proposes, for the reasons 

discussed below, to amend Regulation 

18.05 in the following respects: 

1. To make it explicit that persons 

holding or controlling reportable 

positions on a reporting market must 

retain books and records and make 

available to the Commission upon 

request pertinent information with 

respect to all non-reporting transactions, 

i.e., all positions and transactions in the 

commodity in which the trader is 

reportable, including transactions 

executed over-the-counter and/or 

pursuant to Sections 2(d), 2(g) or 

2(h)(1)–(2) of the Act or Part 35 of the 

Commission’s regulations, on exempt 

commercial markets operating pursuant 

to Sections 2(h)(3)–(5) of the Act (ECM), 

on exempt boards of trade operating 

pursuant to Section 5d of the Act 

(EBOT), and on foreign boards of trade 

(FBOT); and 

2. to make the regulation clearer and 

more complete with respect to hedging 

activity. 

B. Amendments Related to 

Recordkeeping and Reporting 

There is a close relationship among 

transactions conducted on reporting 

markets and non-reporting transactions. 

In view of this, it is sometimes 

necessary to determine all transactions 

and positions with respect to the 

commodity in which the trader is 

reportable in order to more effectively 

detect and prevent manipulation of 

regulated markets and products and to 

ensure the avoidance of systemic risk.12

Just as it is critical that the LTRS 

permits staff to aggregate related 

accounts to assess an individual trader’s 

activities and potential power in a 

market, so is it critical that staff be able 

to assess the reportable trader’s overall 

position in the same commodity in nonreporting transactions in order to see the 

complete picture of the reportable 

trader’s positions in the commodity. 

This is particularly important in light of 

the growing volume of trading on, and 

participation in, the non-reporting 

markets, the close relationship among 

the various products and markets, the 

increasing globalization of the futures 

markets, and the growth of trading on 

electronic exchanges and on foreign 

boards of trade.13

Regulation 18.05 explicitly requires 

that a trader that is reportable because 

of futures or option positions in a 

futures or option contract traded on a 

DCM or DTEF keep books and records 

and provide to the Commission, upon 

request, pertinent information with 

respect to positions and transactions in 

the underlying commodity. For 

example, a reportable trader in the 

Natural Gas futures contract on the New 

York Mercantile Exchange, Inc., 

(NYMEX) must keep books and records 

and provide to the Commission, upon 

request, pertinent information with 

respect to positions and transactions in 


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Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Proposed Rules 34415 

14 ICE Futures is a UK registered investment 

exchange which permits direct access to its trading 

system from the U.S. pursuant to a foreign terminal 

no-action letter issued by Commission staff. CFTC 

Staff Letter No. 99–69 (November 12, 1999), as 

amended, originally issued to the International 

Petroleum Exchange (IPE). 

15Section 1a of the Act defines the term board of 

trade as any organized exchange or other trading 

facility without regard to location. 

16As previously stated, traders who do not hold 

reportable positions on reporting markets do not 

have obligations under Regulation 18.05’s 

recordkeeping and reporting requirements. 17 46 FR 42463, 42466 (August 21, 1981). 

Natural Gas on all DCMs and DTEFs, in 

the commodity option, in the cash 

commodity, its products and 

byproducts, and commercial activities 

that the trader hedges in the commodity 

underlying the Natural Gas futures 

contract. Information with respect to 

positions and transactions in the 

virtually identical Natural Gas contracts 

on the IntercontinentalExchange (ICE), 

an ECM, also is important to the 

Commission’s ability to conduct 

effective market surveillance of the 

NYMEX Natural Gas contracts and to 

determine the degree of a trader’s 

exposure in both the NYMEX and ICE 

natural gas markets. Similarly, if a 

trader is reportable because of futures or 

option positions in the Light Sweet 

Crude Oil contract on the NYMEX, the 

trader’s books and records with respect 

to non-reporting positions and 

transactions in the West Texas 

Intermediate (WTI) Light Sweet Crude 

Oil futures or option contracts on ICE 

Futures,14 a foreign board of trade,15 are 

relevant to effective surveillance and 

supervision of the reporting NYMEX 

market. 

The Act provides ample authority to 

require keeping books and records and 

providing pertinent information with 

respect to non-reporting transactions. 

Section 4i explicitly encompasses nonreporting transactions on ‘‘any other 

board of trade’’ (such as FBOTs, ECMs 

operating pursuant to Sections 2(h)(3)–

(5) of the Act, and EBOTs operating 

pursuant to Section 5d of the Act) and 

in the form of cash or spot transactions, 

inventories, and purchase and sale 

commitments. Further, Section 3(b) of 

the Act declares that the purpose of the 

Act is to, among other things, deter and 

prevent price manipulation or any other 

disruptions to market integrity and to 

ensure the avoidance of systemic risk. 

Section 8a(5) of the Act authorizes the 

Commission to promulgate such 

regulations as, in its judgment, are 

reasonably necessary to accomplish any 

of the purposes of the Act. Making it 

explicit that Regulation 18.05 requires 

the reportable trader to keep books and 

records showing all details concerning 

non-reporting transactions in the 

reportable commodity is reasonably 

necessary to accomplish the purposes of 

Section 3(b) of the Act. 

Although non-reporting transactions 

themselves generally are not subject to 

most regulatory provisions of the Act, 

the futures or option transactions 

executed and maintained on a DCM or 

DTEF that result in a reportable position 

are subject to such provisions and, 

pursuant to Section 3(a) of the Act, are 

affected with a national public interest. 

It is the purpose of the Act pursuant to 

Section 3(b) that the Commission 

prevent price manipulation of all 

commodities traded on these regulated 

markets. To accomplish this purpose, it 

is necessary that the Commission have 

the ability to review all activities in 

commodities traded on these markets, 

regardless of where the transactions are 

executed. By taking a position on a 

regulated market, a trader agrees to 

abide by the rules of the market and the 

Commission, including prohibitions 

against manipulation. To enhance its 

ability to detect and deter manipulation 

and other threats to market integrity, the 

Commission requires persons holding 

reportable positions to maintain books 

and records of transactions that could 

impact the regulated market and related 

cash market, including non-reporting 

transactions.16

Commission staff has interpreted 

Regulation 18.05 to include position 

and transaction data for non-reporting 

transactions and has received such 

information in response to requests 

made pursuant to the Regulation. 

Consistent with the Act and 

Commission practice, the Commission 

is proposing to amend Regulation 18.05 

to make explicit that a trader with a 

reportable position must keep books and 

records showing all details concerning 

all non-reporting transactions in the 

same commodity and provide pertinent 

information to the Commission upon 

request. 

C. Amendments Related to Clarity and 

Completeness 

The Commission notes two issues that 

arise in connection with the Regulation 

18.05 requirement that traders keep 

books and records showing all details 

concerning ‘‘commercial activities that 

the trader hedges in the commodity 

underlying the futures contract in which 

the trader is reportable.’’ First, the 

phrase has led to some confusion. 

Originally inserted into the paragraph as 

‘‘commercial activities that the trader 

hedges in the futures commodity in 

which the trader is reportable,’’ its 

purpose was to require that, ‘‘in 

addition to books and records of 

positions or transactions in a cash 

commodity, a reportable trader must 

also maintain records of commercial 

activities which the trader hedges.’’ 17

Second, reportable positions can be 

option positions, as well as futures 

positions, but it is not clear that the 

current language also addresses 

commercial activities that the trader 

hedges in the commodity underlying 

any option contract in which the trader 

is reportable. 

The Commission proposes to amend 

the regulation to revert to the original 

approach and include hedges in the 

option contract in which the trader is 

reportable. By modifying the phrase to 

read ‘‘commercial activities that the 

trader hedges in the futures or option 

contract in which the trader is 

reportable,’’ Regulation 18.05 would 

capture information with respect to 

hedges in other than the cash 

commodity, its products or byproducts 

(i.e., a trader with a reportable position 

in gold futures that is a hedge of a cash 

position in silver would be required to 

comply with the Regulation 18.05 

requirements with respect to the silver 

position). 

III. Related Matters 

A. Cost Benefit Analysis 

Section 15(a) of the Act requires the 

Commission to consider the costs and 

benefits of its action before issuing a 

new regulation or order under the Act. 

By its terms, Section 15(a) does not 

require the Commission to quantify the 

costs and benefits of a new regulation or 

to determine whether the benefits of the 

proposed regulation outweigh its costs. 

Rather, Section 15(a) simply requires 

the Commission to ‘‘consider the costs 

and benefits’’ of its action. 

Section 15(a) further specifies that the 

costs and benefits of the proposed rule 

or order shall be evaluated in light of 

five broad areas of market and public 

concern: (1) Protection of market 

participants and the public; (2) 

efficiency, competitiveness, and 

financial integrity of futures markets; (3) 

price discovery; (4) sound risk 

management practices; and (5) other 

public interest considerations. 

Accordingly, the Commission may, in 

its discretion, give greater weight to any 

one of the five enumerated areas of 

concern and may, in its discretion, 

determine that, notwithstanding its 

costs, a particular rule or order is 

necessary or appropriate to protect the 

public interest or to effectuate any of the 


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34416 Federal Register / Vol. 72, No. 120 / Friday, June 22, 2007 / Proposed Rules 

18 47 FR 18618, 18618–21 (April 30, 1982). 

19Public Law 104–13 (May 13, 1995). 

provisions or to accomplish any of the 

purposes of the Act. 

The proposed amendments would 

make it explicit that persons holding or 

controlling reportable positions on a 

reporting market must also retain books 

and records and make available to the 

Commission upon request any pertinent 

information with respect to nonreporting transactions in the commodity 

in which the trader is reportable, and 

make the regulation clearer and more 

complete with respect to hedging 

activity. These amendments would 

enable the Commission to better carry 

out its responsibilities under Section 

3(b) of the Act by enhancing the 

Commission’s ability to deter and 

prevent price manipulation or any other 

disruptions to the integrity of the 

regulated futures markets and help to 

ensure the avoidance of systemic risk. 

The Commission believes that the 

proposed amendments would address 

the Section 15(a) enumerated areas of 

market and public concern in that they 

would further protect market 

participants and the public, enhance the 

financial integrity of futures markets, 

and promote sound risk management 

practices. The Commission believes that 

the costs arising from the proposed 

amendments would be of little or no 

consequence for three reasons: (1) The 

amendments to Regulation 18.05 make 

explicit existing Commission practice; 

(2) it is likely that the traders that would 

be affected by the proposed 

amendments’ requirements (traders who 

have reportable positions) already keep 

books and records showing all details 

concerning their non-reporting 

transactions as demonstrated by the fact 

that Commission staff has received such 

information in response to requests 

made pursuant to the Regulation; and 

(3) the Commission anticipates that 

special calls for pertinent information 

relating to non-reporting transactions 

would continue to be made on an 

infrequent basis. 

After considering these factors, the 

Commission has determined to propose 

the revisions to Regulation 18.05 as 

discussed above and set forth below. 

The Commission specifically invites 

public comment on its application of 

the criteria contained in Section 15(a) of 

the Act. Commenters are also invited to 

submit any quantifiable data that they 

may have concerning the costs and 

benefits of the proposed rule with their 

comment letters. 

B. The Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

5 U.S.C. 601 et seq., requires federal 

agencies, in proposing rules, to consider 

the impact of those rules on small 

businesses. The Commission has 

previously determined that exchanges, 

futures commission merchants and large 

traders are not ‘‘small entities’’ for the 

purposes of the RFA.18 The 

requirements related to the proposed 

amendments fall on large traders. 

Accordingly, the Chairman, on behalf of 

the Commission, hereby certifies, 

pursuant to 5 U.S.C. 605(b), that the 

actions proposed to be taken herein will 

not have a significant economic impact 

on a substantial number of small 

entities. 

C. The Paperwork Reduction Act 

When publishing proposed rules, the 

Paperwork Reduction Act (PRA) 19

imposes certain requirements on 

Federal agencies, including the 

Commission, in connection with 

conducting or sponsoring any collection 

of information as defined by the PRA. In 

compliance with the PRA, the 

Commission through these proposed 

rule amendments solicits comments to: 

(1) Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the agency, including the 

validity of the methodology and 

assumptions used; (2) evaluate the 

accuracy of the agency’s estimate of the 

burden of the proposed collection of 

information including the validity of the 

methodology and assumptions used; (3) 

enhance the quality, utility, and clarity 

of the information to be collected; and 

(4) minimize the burden of the 

collection 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. The Commission has 

submitted the proposed rule 

amendments and its associated 

information collection requirements to 

the Office of Management and Budget 

(OMB). The proposed rule amendments 

are a part of an approved collection of 

information. The estimated burden 

associated with and reporting 

obligations for traders with reportable 

positions (OMB Control No. 3038–0009) 

is as follows: 

Average Burden Hour Per Response: 

1.5. 

Number of Respondents: 6. 

Frequency of Response: Upon special 

call. 

Persons wishing to comment on the 

information which would be required 

by the proposed rule amendments 

should contact the Desk Officer, CFTC, 

Office of Management and Budget, 

Room 10202, NEOB, Washington, DC 

20503, 202.395.7340. 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. Copies of the OMBapproved information collection 

package associated with the rulemaking 

may be obtained from the Desk Officer, 

Commodity Futures Trading 

Commission, Office of Management and 

Budget, Room 10202, NEOB, 

Washington, DC 20503, 202.395.7340. 

List of Subjects in 17 CFR Part 18 

Commodity futures, Reporting and 

recordkeeping requirements. 

In consideration of the foregoing, and 

pursuant to the authority contained in 

the Act, and, in particular, sections 3, 4, 

4a, 4c, 4g, 4i, 5, 5a and 8a of the Act, 

the Commission hereby proposes to 

amend Chapter I of Title 17 of the Code 

of Federal Regulations as follows: 

PART 18—REPORTS BY TRADERS 

1. The authority citation for part 18 is 

revised to read as follows: 

Authority: 7 U.S.C. 2, 4, 5, 6a, 6c, 6f, 6g, 

6i, 6k, 6m, 6n, 12a and 19; 5 U.S.C. 552 and 

552(b), unless otherwise noted. 

2. Revise § 18.05 to read as follows: 

§ 18.05 Maintenance of books and records. 

Every trader who holds or controls a 

reportable futures or option position 

shall keep books and records showing 

all details concerning all positions and 

transactions in the commodity on all 

reporting markets, over the counter and/ 

or pursuant to Sections 2(d), 2(g) or 

2(h)(1)–(2) of the Act or Part 35 of this 

chapter, on exempt commercial markets 

operating pursuant to Sections 2(h)(3)–

(5) of the Act, on exempt boards of trade 

operating pursuant to Section 5d of the 

Act, and on foreign boards of trade. 

Every such trader shall also keep books 

and records showing all details 

concerning all positions and 

transactions in the cash commodity, its 

products and byproducts, and all 

commercial activities that the trader 

hedges in the futures or option contract 

in which the trader is reportable. The 

trader shall upon request furnish to the 

Commission any pertinent information 

concerning such positions, transactions 

or activities in a form acceptable to the 

Commission. 

Issued in Washington, DC, this 18th day of 

June, 2007, by the Commission. 

Eileen A. Donovan, 

Acting Secretary of the Commission. 

[FR Doc. E7–12045 Filed 6–21–07; 8:45 am] 

BILLING CODE 6351–01–P 


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