Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 8599 

1 66 FR 42256 (August 10, 2001). 

2Pub. L. 106–554, 114 Stat. 2763 (December 21, 

2000). 

3 17 CFR parts 36 and 40, Amendments Pertinent 

to Registered Entities and Exempt Commercial 

Markets, 72 FR 45185 (August 13, 2007). 4 7 U.S.C. 2(h)(3). 

5 7 U.S.C. 2(h)(4). 

6 7 U.S.C. 2(h)(5)(B)(iii). 

7 69 FR 43285 (July 20, 2004). 

8 Id. at 43289. 9The persons to whom the authority to issue 

special calls may be designated is not restricted by 

regulation. Nonetheless, pursuant to Commission 

practice, the persons who have been so designated 

by the Division Directors of DMO and DCIO have 

been limited to Deputy Directors, Associate 

Directors, Branch Chiefs and Chief Counsels of 

those Divisions. 

10Letter from Johnathan H. Short, Senior Vice 

President and General Counsel, ICE, to the 

Commission’s Office of the Secretariat (September 

12, 2007) (on file with the Commission), available 

at http://www.cftc.gov/stellent/groups/public/ 

@lrfederalregister/documents/frcomment/07–

010c001.pdf. 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 36 and 40 

RIN 3038–AC39 

Amendments Pertinent to Registered 

Entities and Exempt Commercial 

Markets 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rules. 

SUMMARY: The Commission is adopting 

final regulations that effectuate the 

following amendments to the 

Commission’s regulations. The 

amendments delegate the Commission’s 

authority to issue special calls to 

exempt commercial markets to the 

Director of the Division of Enforcement 

and that Director’s designees. The 

amendments clarify the process for 

listing, clearing, or implementing 

products or rules, including dormant 

products and rules, and amend the 

definition of emergency to clarify that 

persons other than persons comprising 

a registered entity’s full governing board 

may declare an emergency on behalf of 

the governing board. The amendments 

also amend the approval period for 

designated contract market rules that 

may change a material term or condition 

of an enumerated agricultural futures or 

options contract. Lastly, the 

amendments clarify how far in advance 

of implementation registered entities 

must submit self-certified contracts and 

rules to the Commission, and identify 

three additional categories of rules that 

may be implemented without 

certification or Commission approval. 

EFFECTIVE DATE: February 14, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Bruce Fekrat, Special Counsel, Office of 

the Director (telephone 202.418.5578, 

e-mail bfekrat@cftc.gov), Division of 

Market Oversight, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

The Commission published initial 

comprehensive final regulations for 

trading facilities on August 10, 2001 1 to 

implement amendments introduced to 

the Commodity Exchange Act (CEA or 

Act) by the Commodity Futures 

Modernization Act of 2000 (CFMA).2

The final regulations codified the 

procedural provisions common to 

exempt boards of trade and exempt 

commercial markets (ECM) operating 

pursuant to sections 5d and 2(h)(3) 

through (5) of the Act, respectively, in 

part 36 of the Commission’s regulations. 

The final regulations also codified the 

procedural provisions common to 

designated contract markets (DCM), 

derivatives transaction execution 

facilities (DTEF), and derivatives 

clearing organizations (DCO) in part 40 

of the Commission’s regulations, and 

further established the regulatory 

framework necessary to implement and 

interpret the provisions of the CEA, as 

amended by the CFMA, pertinent to 

trading facilities. 

The Commission recently proposed 

additional amendments to parts 36 and 

40 of the Commission’s regulations that, 

based upon its experience in 

administering the Act, will better 

implement certain provisions of the Act 

and provide clearer direction as to the 

Commission’s regulatory requirements 

thereunder (August 2007 notice of 

proposed rulemaking).3 The 

Commission received two comment 

letters in response to the Federal 

Register publication of the August 2007 

notice of proposed rulemaking. The 

material issues raised in each comment 

letter are addressed in the following 

discussion of the final amendments. 

II. Exempt Commercial Markets 

ECMs are electronic trading facilities 

that offer a platform for executing or 

trading principal-to-principal 

transactions involving exempt 

commodities solely between persons 

that are eligible commercial entities 

(ECM transactions).4 ECM transactions, 

pursuant to section 2(h)(3) of the Act, as 

amended by the CFMA, are subject to a 

qualified exemption from the Act that 

reserves the applicability of the Act’s 

fraud and manipulation provisions as 

well as the Commission’s regulations 

thereunder to such contracts.5 In accord 

with this reservation of applicability, 

the CEA specifically authorizes the 

Commission’s issuance of special calls 

for information to ECMs in order to, 

among other things, enforce the Act’s 

antifraud and antimanipulation 

provisions.6

In July 2004, the Commission 

amended regulation 36.3(b), which 

governs the Commission’s access to 

ECM transaction data, to improve the 

quality of accessible information 

relevant to its antifraud and 

antimanipulation authority.7 In that 

rulemaking, the Commission stated that 

aberrant price behavior on ECMs may 

require further Commission 

investigation and the eventual use of 

special calls to identify wrongful 

conduct.8 The authority to issue special 

calls to ECMs currently is delegated 

only to the Directors of the Division of 

Market Oversight (DMO) and the 

Division of Clearing and Intermediary 

Oversight (DCIO) or their designees.9

Given that the Division of Enforcement 

is directly charged with the 

responsibility to enforce the provisions 

of the Act that apply to ECMs, and the 

importance of the authority to issue 

special calls to the Commission’s ability 

to enforce its reserved antifraud and 

antimanipulation authority, the 

Commission is amending, as proposed, 

regulation 36.3 to expand the set of 

persons with delegated authority to 

issue ECM special calls to include the 

Director of the Division of Enforcement 

or that Director’s designees. 

In its comment letter submitted in 

response to the Commission’s 

publication of the August 2007 notice of 

proposed rulemaking, the 

IntercontinentalExchange, Inc. (ICE), a 

Delaware corporation that, among other 

things, operates an ECM that 

predominantly lists energy commodities 

derivative contracts, emphasized that 

information subject to special calls may 

include confidential details of 

transactions that often reflect the 

proprietary trading activities of market 

participants.10 Citing its prior 

experience providing information to the 

Division of Enforcement and the 

potential sensitive nature of the 

information that may be submitted, ICE 

requested that the exercise of ECM 

special call authority, by regulation, be 

restricted to certain senior Enforcement 

staff, or in the alternative, be subject to 

consideration and review by a restricted 

group of senior Enforcement staff. ICE 

argued that such restrictions would 

develop channels of communication 

between ECMs and staff from the 

Division of Enforcement that would be 


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8600 Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 

11 7 U.S.C. 12(a)(1). 

12The Commission defines a dormant contract as 

a contract or product without open interest that, 

after the expiration of a thirty-six month 

development period following initial certification 

or approval, has not traded in the preceding twelve 

consecutive calendar months. 17 CFR 40.1(b). The 

Commission defines a dormant rule as a rule that 

has remained unimplemented for twelve 

consecutive calendar months following the rule’s 

initial certification with, or approval by, the 

Commission. 17 CFR 40.1(f). 

13This alignment of procedural requirements is 

based, in part, on the premise that certain contracts 

and rules, which have remained inactive or 

unimplemented for a significant period of time, 

may contain terms that are no longer consistent 

with the Commission’s regulations or prevailing 

market conditions. 67 FR 62783, 62784 (October 9, 

2002). 

14The Commission’s regulations do not require a 

DTEF to either certify or submit for Commission 

approval a product or rule prior to listing or 

implementation. However, a DTEF, which is 

generally subject to notice filing requirements, may 

choose to self-certify products or rules or submit 

them for Commission approval pursuant to the 

procedures established in part 40 of the 

Commission’s regulations. See 17 CFR 37.7. 

15Registered entities may voluntarily seek the 

Commission’s approval for products, rules, and rule 

amendments. DCM rules that will materially change 

a term or condition of a contract with open interest 

that is based on an agricultural commodity 

enumerated in section 1a(4) of the Act, however, 

must be approved by the Commission prior to 

implementation. 7 U.S.C. 7a–2(c)(2)(B). 

16See 17 CFR 40.1. 

17See 47 FR 29515 (July 7, 1982). 

18See 71 FR 1953, 1960 (January 12, 2006). 

19The term ‘‘rule’’ is defined to include any 

registered entity (DCM, DTEF, or DCO) ‘‘* * * rule, 

regulation, resolution, interpretation, stated policy, 

term and condition * * * in whatever form 

adopted, and any amendment or addition thereto or 

repeal thereof * * *’’ 17 CFR 40.1(h). 

particularly familiar with the type and 

working value of callable information. 

According to ICE, these procedural 

restrictions would facilitate the timely 

and efficient production of information 

by, for example, reducing the time spent 

on specifying the scope of particular 

productions. 

The CEA specifically recognizes the 

value and sensitive nature of transaction 

data and expressly prohibits, with 

limited exceptions, the Commission’s 

public disclosure of ‘‘information that 

would separately disclose the business 

transactions or market positions of any 

person * * *’’ 11 The Commission 

appreciates and will remain aware of 

the concerns raised by ICE. The 

Commission, however, will not adopt 

ICE’s recommendation that special call 

authority be restricted by regulation 

because adequate controls are in place 

to ensure the effective and proper use of 

delegated authority. 

The issuance of an ECM special call 

by Enforcement staff will be an agency 

action undertaken pursuant to delegated 

authority to act on behalf of the 

Commission. The exercise of the 

authority to issue or assign the authority 

to issue special calls under Commission 

regulation 36.3 will be the product of 

deliberation and substantial internal 

process and will involve the 

participation of the Division Director 

prior to the issuance of a special call. 

Pursuant to Commission practice with 

respect to the other divisions, Division 

of Enforcement staff that would be 

designated by the Director to exercise 

special calls should be limited to the 

Division’s Deputy Directors, Associate 

Directors and Chief Counsel. Restricting, 

by regulation, the Division of 

Enforcement’s authority to issue ECM 

special calls to certain senior 

Enforcement staff, or in the alternative, 

requiring that issuances be subject to 

consideration and review by a restricted 

group of senior Enforcement staff, in the 

judgment of the Commission, will not 

substantially facilitate the efficiencies 

referenced by ICE. Accordingly, the 

Commission is amending Commission 

regulation 36.3, as proposed, to expand 

the set of persons with delegated 

authority to issue ECM special calls to 

include the Director of the Division of 

Enforcement or that Director’s 

designees. 

III. Amendments to Part 40 of the 

Commission’s Regulations 

A. Self-Certification, Approval, and 

Dormancy 

The Commission applies the 

procedural requirements for listing, 

clearing or implementing initial 

submissions of contracts and rules 

(including rule amendments) to 

dormant contracts and rules, and with 

certain exceptions, requires DCMs and 

DCOs to certify or submit for 

Commission approval all products and 

rules prior to listing or 

implementation.12 Part 40 of the 

Commission’s regulations, however, 

currently does not clearly indicate that 

the procedural requirements for listing, 

clearing or implementing dormant 

contracts and rules are identical to the 

requirements established for initial 

submissions of contracts and rules that 

have never been certified with, or 

approved by, the Commission.13

Furthermore, the current product and 

rule filing provisions of part 40 do not 

clearly indicate that DCMs and DCOs, in 

general, must choose either to comply 

with the approval process established in 

part 40, or in the alternative, the 

certification process established in part 

40, prior to listing, clearing, or 

implementing any product or rule, 

including any product or rule that has 

become dormant.14

The Commission is herein adopting 

several amendments to address these 

matters. The Commission is amending 

regulations 40.2(a), 40.3(a), 40.4(a), 

40.5(a) and 40.6(a) to clarify that the 

procedural requirements for listing, 

clearing or implementing dormant 

contracts and rules are identical to the 

requirements established for 

submissions of contracts and rules 

(including rule amendments) that have 

never been certified with, or approved 

by, the Commission. The Commission is 

also amending the above referenced 

regulations to clarify that a DCM or DCO 

in general must choose either to list, 

clear, or implement a product or rule, 

including any dormant product or rule, 

pursuant to the self-certification 

provisions of part 40 or, in the 

alternative, pursuant to the process 

established in part 40 for receiving the 

Commission’s prior approval.15

B. Dormant Registered Entities, 

Contracts, and Rules 

The Commission has applied the 

concept of dormancy to registered 

entities by defining a dormant market or 

clearing organization as a registered 

entity that has been designated by, or 

registered with, the Commission for a 

period of thirty-six months or more but 

has not served as a facility for the 

trading or clearing of transactions for a 

period of twelve consecutive calendar 

months.16 The Commission recognizes 

that a significant period of inactivity can 

potentially have a negative impact on a 

registered entity’s ability to implement 

rules and list and clear contracts in a 

manner that remains consistent with 

current market conditions, the 

Commission’s regulations, and selfregulatory best practices.17 Accordingly, 

the Commission has deemed that upon 

a registered entity becoming dormant, 

its rules and contracts also become 

dormant.18

In contrast to this view, the current 

language of the Commission’s 

regulations implies that the earliest 

possible time that a rule can become 

dormant, regardless of whether a 

registered entity has entered into 

dormancy, is at the end of a twelve 

month rule implementation period.19

Similarly, the current language of the 

Commission’s regulations implies that 

the earliest possible time that a contract 

can become dormant, regardless of 

whether a registered entity has entered 

into dormancy and absent affirmative 


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Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 8601 

20The final amendments also clarify that only 

registered DCOs can be dormant. 

21See 17 CFR 40.6(a)(2). 

22See 17 CFR 40.1(g). 

23See letter from James A. Newsome, President, 

NYMEX, to Jean A. Webb, Secretary of the 

Commission (September 26, 2005) (on file with the 

Commission), available at http://www.cftc.gov/foia/ 

comment05/foi05-004_1page2.htm. 

24See letter from Craig S. Donohue, Chief 

Executive Officer, CME Group, to David A. Stawick, 

Secretary of the Commission (September 12, 2007) 

(on file with the Commission), available at http:// 

www.cftc.gov/stellent/groups/public/ 

@lrfederalregister/documents/frcomment/07- 

010c002.pdf. 

25 17 CFR 40.1(g). 

26The Commission is further adopting, as 

proposed, amendments to the definition of 

emergency in Commission regulation 40.1(g) to 

clarify the definition’s applicability to all registered 

entities, including DCOs. 

27 7 U.S.C. 7a–2(c). 

28 Id. 

29See 17 CFR 40.4(b) and 40.5(b). 

30August 2007 notice of proposed rulemaking, at 

45187. 

action on the part of the registered 

entity, is at the end of a thirty-six month 

contract development period. The 

Commission therefore is revising the 

definition of a dormant product or 

contract, dormant rule, and dormant 

DCM, DTEF, and DCO in Commission 

regulation 40.1 to clearly establish that 

the dormancy of a registered entity will 

automatically and separately trigger the 

dormancy of that entity’s contracts and 

rules.20

C. Definition of Emergency 

The Commission’s regulations give 

registered entities the ability to 

implement emergency rules in response 

to market disruptions without certifying 

or receiving the Commission’s approval 

prior to implementation.21 The current 

definition of emergency implies that the 

full governing board of a registered 

entity must determine whether 

particular developments constitute an 

emergency before the registered entity 

may operate under emergency 

procedures.22 The Commission, in its 

August 2007 notice of proposed 

rulemaking, proposed to amend the 

definition of emergency in regulation 

40.1(g) to clarify that certain persons 

other than persons that comprise a 

registered entity’s full governing board 

may properly issue an emergency 

determination on behalf of the 

governing board. The proposed revision 

was precipitated by a New York 

Mercantile Exchange (NYMEX) 

comment letter (submitted in response 

to the publication of a procedurally 

unrelated notice of proposed 

rulemaking) that suggested that the full 

governing board of an exchange, under 

emergency conditions, may not be able 

to issue a determination in a timely 

manner to address emergency 

conditions.23

The Commission received one 

comment in response to its proposal to 

amend the definition of emergency. In 

its comment letter, the CME Group Inc., 

a DCM formed by the 2007 merger of the 

Chicago Mercantile Exchange Inc. and 

the Board of Trade of the City of 

Chicago, expressed its support for the 

proposed clarification.24 CME Group 

based its support on the premise that an 

authorized committee or an exchange 

official may be better able to respond in 

the first instance to market disruptions 

that may quickly evolve into 

emergencies. 

The Commission agrees with CME 

Group and NYMEX, and pursuant to a 

broader interpretation of the definition 

of emergency, has previously approved 

registered entity rules that delegate the 

authority to make an emergency 

determination to persons other than 

persons that comprise the full governing 

board. Accordingly, the Commission 

herein revises the definition of 

emergency in regulation 40.1(g) to 

clarify that duly authorized persons may 

determine whether a particular 

occurrence or circumstance is an 

emergency that ‘‘requires immediate 

action and threatens or may threaten 

such things as the fair and orderly 

trading in, or the liquidation of or 

delivery pursuant to, any agreements, 

contracts or transactions * * *’’ 25 The 

final amendments to the definition of 

emergency require, as proposed, that the 

authorization to act on behalf of the 

governing board be derived from 

registered entity rules that specify in 

detail: (1) The persons authorized to 

issue an emergency opinion on behalf of 

the governing board; and (2) the 

procedures for the exercise of such 

authority.26

D. Commission Review and Approval of 

Registered Entity Rules 

In contrast to other registered entity 

rules that may be implemented pursuant 

to the self-certification process 

established in part 40, DCM rules that, 

as determined by the Commission, 

materially change a term or condition of 

a contract with open interest that is 

based on an agricultural commodity 

enumerated in section 1a(4) of the Act 

must be approved by the Commission 

prior to implementation.27 Since a 

finding of materiality is by statute at the 

reasonable discretion of the 

Commission, part 40 currently affords 

DCMs the opportunity to request a 

materiality opinion from the 

Commission for rules that a submitting 

DCM characterizes as non-material. 

Upon request, the Commission will 

determine whether a DCM rule 

submitted under regulation 40.4(b)(9) at 

least ten business days prior to 

implementation is material within the 

meaning of section 5c(c) of the Act.28

DCMs often simultaneously request 

that agricultural rule changes be 

reviewed for materiality, and if found to 

be material, approved by the 

Commission. Commission regulation 

40.5 does not specify when the approval 

period commences with respect to rules 

submitted for materiality review under 

the process framed by Commission 

regulation 40.4(b)(9).29 To establish 

certainty, the Commission is amending 

regulation 40.5 to commence the rule 

approval period at the conclusion of the 

10-day materiality review period under 

regulation 40.4(b)(9). As stated in the 

August 2007 notice of proposed 

rulemaking, the commencement of the 

approval period at this point is 

appropriate because determining a 

rule’s consistency with the Act and the 

Commission’s regulations thereunder 

requires an analysis that is qualitatively 

different from the analysis required to 

determine the materiality of the same 

rule within the meaning of section 5c(c) 

of the Act.30

E. Listing of Products and the 

Implementation of Registered Entity 

Rules 

1. The Timing of Submissions 

The Commission understands that 

there may be some confusion as to how 

far in advance of implementation 

registered entities must submit selfcertified products and rules to the 

Commission. Commission regulations 

40.2(a) and 40.6(a) provide that such 

submissions must be filed electronically 

with the Commission at or before the 

close of business on the business day 

preceding implementation. Questions 

have arisen as to whether these 

provisions refer to the Commission’s 

business day or the business day of the 

submitting registered entity. 

The Commission is adopting 

regulations to clarify that the specified 

date is the Commission’s business day. 

For clarity and in order to ensure proper 

notice of certified products and rules, 

the Commission is defining business 

day in part 40 and adding language to 

Commission regulations 40.2(a) and 

40.6(a) to expressly require the filing of 

certified submissions with the 

Commission at least one full 

Commission business day prior to 


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8602 Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 

31These amendments are consistent with other 

Commission regulations that exclude the day on 

which a notice is given or an event occurs in 

computing time periods that begin upon the 

occurrence of that notice or event. See 17 CFR 

1.3(b) and 10.5. 32See 17 CFR 40.6(a). 33 17 CFR 40.6(c)(2). 

34Commission regulation 40.4(b)(2) identifies 

rules that are changes in lists of approved delivery 

facilities as immaterial. In conformance with the 

amendments to Commission regulation 40.6(c)(2), 

the Commission is amending regulation 40.4(b)(2) 

to identify rules that are changes to lists of 

approved delivery service providers as immaterial. 

35The language of the final regulations for 

delivery months is different from the language that 

was proposed by the Commission in its August 

2007 notice of proposed rulemaking. The final 

regulations discard redundant references to open 

interest and the delisting and relisting of trading 

months. The substantive effect of the final 

regulations, that is, allowing the initial listing of 

trading months (trading months that cannot have 

open interest or be delisted or relisted trading 

months) within the currently established cycle of 

trading months without prior certification or 

Commission approval, is equivalent to the 

substantive effect of the regulations and 

amendments proposed in the August 2007 notice of 

proposed rulemaking. See August 2007 notice of 

proposed rulemaking, at 45187 to 45188. 

36See 17 CFR part 40, Appendix A (Application 

for Designation of Physical Delivery Futures 

Contracts). 

37Registered entities must be able to cite clearly 

identifiable registered entity rules that establish the 

applicable enabling standards and criteria in any 

such submission made under Commission 

regulation 40.6(c)(2). 

38 17 CFR 40.6(c)(iv). 

39See 17 CFR part 16. 

40 17 CFR 16.01(b). 

41See CFTC Staff Letter 06–01 (January 9, 2006). 

42 In July of 2006, the Commission adopted final 

rules to permit the trading of futures contracts 

based on corporate debt securities. 71 FR 39541 

(July 13, 2006) (Debt Futures Release). The 

Commission herein adopts, as proposed, a technical 

amendment that conforms regulation 40.6(c)(2)(iii) 

to the adoption of the Debt Futures Release by 

implementation.31 In addition, to ensure 

that the appropriate operating divisions 

of the Commission have the ability to 

access electronic copies of submissions 

at the time of filing, the Commission is 

amending the mandatory recipients of 

electronic submissions filed under 

regulations 40.2(a)(1) and 40.6(a)(2) to 

include the Secretary of the Commission 

at submissions@cftc.gov, the relevant 

branch chief at the regional office 

having local jurisdiction over the 

registered entity, and, for filings 

submitted by a designated contract 

market or registered derivatives 

transaction execution facility, DMO at 

DMOSubmissions@cftc.gov. 

2. Implementing Registered Entity Rules 

Without Certification 

a. Additional Rule Categories 

The Commission’s regulations 

generally permit a registered entity to 

implement a new or dormant rule 

without seeking prior Commission 

approval by certifying to the 

Commission that the rule complies with 

the Act and the Commission’s 

regulations thereunder on the business 

day preceding implementation.32

Registered entities, however, are not 

required to file certified submissions 

prior to implementing several categories 

of registered entity rules that are 

enumerated in Commission regulation 

40.6(c)(2).33 Registered entity rules that 

come within these categories typically 

are limited in scope and are 

implemented under enabling rules that 

have already been approved by, or 

certified with, the Commission. In order 

to lessen the burden placed on 

registered entities as well as better 

utilize Commission resources, the 

Commission is codifying several 

additional categories of registered entity 

rules that may be implemented without 

prior certification or Commission 

approval if subsequently included in a 

weekly notification of rule changes 

under regulation 40.6(c)(2). The 

categories of rules enumerated in 

Commission regulation 40.6(c)(2) are 

amended to include: (1) The initial 

listing of trading months that are 

consistent with previously approved or 

certified standards; (2) changes in lists 

of producers’ brands or markings that 

are made pursuant to previously 

approved or certified standards or 

criteria relating to quality specifications; 

and (3) for existing delivery locations, 

changes in lists of approved delivery 

facilities and delivery service providers 

that are made pursuant to previously 

approved or certified standards or 

criteria.34

A registered entity’s ability to notice 

file changes that relate to trading 

months under amended regulation 

40.6(c)(2) only extends to trading 

months within currently established 

cycles of trading months and does not 

extend to the delisting or relisting of 

trading months. By way of example, 

assume that the currently established 

cycle of trading months for a particular 

contract is December, March, May, July 

and September. Under the final 

amendments, the listing of a new 

trading month, such as November, 

would not qualify for notice filing under 

regulation 40.6(c) while an earlier than 

anticipated (or delayed) listing of a July 

contract could properly be notice 

filed.35 With respect to producer’s 

brands or markings and delivery 

facilities and service providers, the 

Commission reviews the relevant 

enabling standards and criteria to 

ensure their consistency with cash 

market practices and to ensure that their 

terms do not unreasonably restrain trade 

by inappropriately prohibiting the open 

participation of certain producers, 

facilities or service providers.36 The 

identification of producers’ brands and 

enumerated delivery facilities and 

service providers at an existing delivery 

location does not alter certified or 

Commission approved qualifying 

standards or criteria, nor does it change 

exchange procedures that verify 

compliance with those standards or 

criteria. The final regulations will 

therefore require that the Commission 

be kept apprised of changes in lists of 

approved producers’ brands or 

markings, changes in lists of delivery 

location delivery facilities and service 

providers, and the initial listing of 

trading months that are consistent with 

previously certified or approved 

standards through weekly notices of 

rule changes filed under regulation 

40.6(c)(2) as opposed to requiring that 

such changes be certified with or 

approved by the Commission prior to 

implementation.37

b. Implementing Rules Without 

Notification 

Rule changes that may appear in a 

weekly notification pursuant to 

Commission regulation 40.6(c)(2)(iv) 

also include ‘‘[c]hanges to option 

contract rules relating to the strike price 

listing procedures, strike price intervals, 

and the listing of strike prices on a 

discretionary basis.’’ 38 The Commission 

currently receives substantially the 

same information under part 16 of the 

Commission’s regulations, which 

specifies the daily reporting 

requirements that apply to DCMs.39 In 

particular, regulation 16.01(b) stipulates 

that each reporting market must submit 

to the Commission on a daily basis 

various trade data, including trade 

volume, open interest and price 

information for all listed option strike 

prices, including discretionary prices.40

In January 2006, DMO staff granted 

no-action relief to permit DCMs to 

satisfy the regulation 40.6(c)(2)(iv) 

notification requirement by complying 

with the daily reporting requirements of 

regulation 16.01 of the Commission’s 

regulations.41 In order to codify the noaction relief granted by DMO and avoid 

duplicative regulatory requirements, the 

Commission is amending regulation 

40.6(c)(2)(iv) and adding paragraph (G) 

to regulation 40.6(c)(3)(ii) to allow 

registered entities that are in 

compliance with regulation 16.01(b) to 

implement the specified changes 

relating to option contract strike prices 

without either prior approval, 

certification or inclusion in a weekly 

notification to the Commission.42


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Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 8603 

replacing that regulation’s reference to stock 

indexes with a reference to securities indexes, a 

general term that includes both equity and debt 

securities. Final Commission regulation 

40.6(c)(2)(iii) also includes a reference to regulation 

40.6(c)(3)(ii)(F) to alert registered entities that 

certain rule changes relating to securities indexes 

may be implemented pursuant to notification or 

without such notice if implemented under 

regulation 40.6(c)(3). 

43The Commission is amending the heading of 

regulation 40.6, and that provision’s references to 

DCMs and DCOs, to clarify its potential 

applicability to all registered entities, including 

DTEFs. 

44 In its comment letter, CME Group stated that 

permitting DCMs that comply with the reporting 

requirements of Commission regulations 16.01(a) 

and (b) to implement changes in the listing of 

trading months within currently established cycles 

of trading months and changes to certain option 

contract rules relating to strike prices, without 

certification or prior Commission approval, will 

avoid duplicative requirements and will facilitate 

the efficient use of Commission resources. 

The Commission is making a similar 

amendment for registered entity rules 

denoting changes to contract trading 

months within currently established 

cycles of trading months that may be 

implemented pursuant to a regulation 

40.6(c)(2) notification filing.43 As with 

rules that are changes to option contract 

strike prices, the Commission currently 

receives adequate notification of the 

same information under regulation 

16.01(a). In order to avoid duplicative 

regulatory requirements, the 

Commission is adding paragraph (H) to 

regulation 40.6(c)(3)(ii) to provide that 

registered entities that are in 

compliance with regulation 16.01(a) 

may effect the initial listing of contract 

trading months within the currently 

established cycle of trading months 

without prior approval, certification or 

inclusion in a weekly notification to the 

Commission.44

V. Related Matters 

A. Cost Benefit Analysis 

Section 15(a) of the Act requires the 

Commission to consider the costs and 

benefits of its actions before issuing new 

regulations under the Act. Section 15(a) 

does not require the Commission to 

quantify the costs and benefits of new 

regulations or to determine whether the 

benefits of adopted regulations 

outweigh their costs. Rather, section 

15(a) requires the Commission to 

consider the cost and benefits of the 

subject regulations. Section 15(a) further 

specifies that the costs and benefits of 

the regulations 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. 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 

regulation is necessary or appropriate to 

protect the public interest or to 

effectuate any of the provisions or to 

accomplish any of the purposes of the 

Act. 

The final regulations expand the set of 

persons delegated by the Commission 

with the authority to issue ECM special 

calls to include the Director of the 

Division of Enforcement and that 

Director’s designees. The final 

regulations do not expand the basis for 

issuing ECM special calls; rather, they 

simply expand the set of persons 

authorized to issue such special calls. 

There are no regulatory costs imposed 

by this extension of delegated special 

call authority. 

The final regulations clarify that a 

DCM or DCO must generally choose 

either to comply with the rule approval 

process established in part 40 of the 

Commission’s regulations or, in the 

alternative, the certification process 

established in part 40, prior to listing or 

clearing any product, or implementing 

any rule, including any product or rule 

that has become dormant. The final 

regulations also clearly establish that 

the dormancy of a registered entity will 

automatically and separately trigger the 

dormancy of that entity’s contracts and 

rules. These clarifications are consistent 

with current Commission practice, do 

not impose any regulatory cost, and 

serve the public interest by facilitating 

regulatory certainty for persons subject 

to the Act and the Commission’s 

regulations thereunder. 

The final regulations clarify that the 

definition of emergency allows persons 

other than persons comprising the full 

governing board of a registered entity to 

declare an emergency on behalf of the 

governing board. The final regulations 

expressly recognize that the full 

governing board of an exchange under 

emergency conditions may not be able 

to issue an opinion in a timely manner 

to address an emergency. Accordingly, 

the Commission’s final definition of 

emergency in part 40 clearly permits 

duly authorized persons to determine 

whether a particular occurrence or 

circumstance is an emergency. The final 

regulations facilitate the ability of 

registered entities to undertake timely 

action in response to emergency events 

and thereby better protect market 

participants and the financial integrity 

of transactions executed and cleared on 

registered entities. The final regulations 

also limit the potential costs that may 

arise from any misuse of authority by 

requiring registered entities to adopt 

detailed procedural rules to effectuate 

the exercise of this delegated authority. 

The final regulations clearly set forth 

the duration of the rule approval period 

for DCM rules that may change a 

material term or condition of a contract 

based on the agricultural commodities 

enumerated in section 1a(4) of the Act 

by commencing the rule approval 

period at the conclusion of the 10-day 

materiality review period under 

Commission regulation 40.4(b)(9). 

Commencing the approval period at this 

point gives the Commission time to 

effectively discharge its separate 

regulatory responsibilities to review 

registered entity rule changes for their 

impact on contracts with open interest 

and to determine whether such changes 

are consistent with the Act and the 

Commission’s regulations thereunder. 

The amended review period is 

consistent with current Commission 

regulatory practice and should not place 

any additional cost or burden on 

submitting DCMs. 

The final regulations address how far 

in advance of implementation registered 

entities must submit self-certified 

contracts and rules to the Commission 

pursuant to regulations 40.2(a) and 

40.6(a) by clarifying that the date 

specified in those regulations refers to 

the Commission’s business day. The 

final regulations ensure that there is at 

least one full Commission business day 

between the submission of a certified 

product or rule and such product or 

rule’s listing or implementation. The 

final regulations provide regulatory 

clarity and impose no additional cost or 

burden. 

The final regulations lessen the 

burden placed on registered entities as 

well as better utilize Commission 

resources by codifying several 

additional rule categories that may be 

implemented without prior certification 

or Commission approval if noticed to 

the Commission through other required 

filings or disclosure requirements or 

subsequently included in a weekly 

notification of rule changes to the 

Commission under regulation 40.6(c)(2). 

The final regulations add lists of 

approved producers’ brands or 

markings, changes in lists of approved 

delivery facilities and delivery service 

providers, certain changes in contract 

trading months, and certain specified 

changes to option contract strike prices 

to the categories of rules may be 

implemented without prior certification 

or Commission approval, or as 

applicable, notification. Registered 

entity rules that come within these 

categories typically are limited in scope 


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8604 Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 

45See 47 FR 18618 (April 30, 1982). 

and are implemented under enabling 

rules that have already been certified 

with, or approved by, the Commission. 

Permitting their implementation 

without certification or approval, or as 

applicable, notification, avoids 

unnecessary or duplicative regulatory 

requirements and better utilizes the 

Commission’s resources. 

The Commission’s August 2007 notice 

of proposed rulemaking analyzed the 

aforementioned costs and benefits. No 

relevant comments were received with 

respect to the Commission’s analysis. 

After considering these factors, the 

Commission has determined to amend 

parts 36 and 40 of the Commission’s 

regulations as set forth below. 

B. The Regulatory Flexibility Act 

The Regulatory Flexibility Act (RFA), 

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

agencies consider the impact of their 

regulations on small businesses. The 

requirements related to the final 

amendments fall mainly on registered 

entities. The Commission has 

previously determined that registered 

entities are not ‘‘small entities’’ for the 

purposes of the RFA.45 In addition, 

these final regulations, collectively, tend 

to relieve regulatory burdens. 

Accordingly, the Chairman, on behalf of 

the Commission, hereby certifies, 

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

actions to be taken herein will not have 

a significant economic impact on a 

substantial number of small entities. 

C. Paperwork Reduction Act 

When publicizing final regulations, 

the Paperwork Reduction Act (PRA) of 

1995 (44 U.S.C. 3501 et seq.) imposes 

certain requirements on Federal 

agencies (including the Commission) in 

connection with their conducting or 

sponsoring any collection of 

information as defined by the PRA. The 

information collection requirements 

associated with the final regulations are 

administered under Office of 

Management and Budget control 

numbers 3038–0022 and 3038–0054. 

These final amendments to parts 36 and 

40 of the Commission’s regulations 

would not impose any new or 

additional recordkeeping or information 

collection requirement that would 

require the approval of the Office of 

Management and Budget under 44 

U.S.C. 3501, et seq. 

List of Subjects 

17 CFR Part 36 

Commodity futures. 

17 CFR Part 40 

Commodity futures, Reporting and 

recordkeeping requirements. 

■ In consideration of the foregoing, and 

pursuant to the authority contained in 

the Act, and, in particular, sections 2, 4, 

5, 5a, 5b, 5c, 5d and 8a of the Act, the 

Commission hereby amends Chapter I of 

Title 17 of the Code of Federal 

Regulations as follows: 

PART 36—EXEMPT MARKETS 

■ 1. The authority citation for part 36 

continues to read as follows: 

Authority: 7 U.S.C. 2, 5, 6, 6c, and 12a, as 

amended by the Commodity Futures 

Modernization Act of 2000, Appendix E of 

Public Law 106–554, 114 Stat. 2763 (2000). 

■ 2. In § 36.3, revise paragraphs (b)(3)(ii) 

to read as follows: 

§ 36.3 Exempt commercial markets. 

* * * * * 

(b) * * * 

(3) * * * 

(ii) The Commission hereby delegates, 

until the Commission orders otherwise, 

the authority to make special calls as set 

forth in Section 2(h)(5)(B)(iii) of the Act 

to the Directors of the Divisions of 

Market Oversight, the Division of 

Clearing and Intermediary Oversight, 

and the Division of Enforcement to be 

exercised by each such Director or by 

such other employee or employees as 

the Director may designate. The 

Directors may submit to the 

Commission for its consideration any 

matter that has been delegated in this 

paragraph. Nothing in this paragraph 

prohibits the Commission, at its 

election, from exercising the authority 

delegated in this paragraph. 

* * * * * 

PART 40—PROVISIONS COMMON TO 

CONTRACT MARKETS, DERIVATIVES 

TRANSACTION EXECUTION 

FACILITIES AND DERIVATIVES 

CLEARING ORGANIZATIONS 

■ 3. The authority citation for part 40 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 5, 6, 6c, 7, 7a, 

8 and 12a, as amended by appendix E of Pub. 

L. 106–554, 114 Stat. 2763A–365. 

■ 4. In § 40.1, revise paragraph (a) 

through (g) to read as follows: 

§ 40.1 Definitions. 

* * * * * 

(a) Business day means the intraday 

period of time starting at the business 

hour of 8:15 a.m. and ending at the 

business hour of 4:45 p.m.; business 

hour means any hour between 8:15 a.m. 

and 4:45 p.m., Eastern Standard Time or 

Eastern Daylight Savings Time, 

whichever is currently in effect in 

Washington, DC, on all days except 

Saturdays, Sundays and federal 

holidays in Washington, DC. 

(b) Dormant contract or dormant 

product means: 

(1) Any agreement, contract, 

transaction, or instrument, or any 

commodity futures or option contract 

with respect to all future or option 

expiries that has no open interest and in 

which no trading has occurred for a 

period of twelve complete calendar 

months following a certification with, or 

approval by, the Commission; provided, 

however, that no contract or instrument 

under this paragraph (b)(1) initially and 

originally certified with, or approved 

by, the Commission within the 

preceding 36 complete calendar months 

shall be considered to be dormant; or 

(2) Any commodity futures or option 

contract or other agreement, contract, 

transaction or instrument of a dormant 

registered entity; or 

(3) Any commodity futures or option 

contract or other agreement, contract, 

transaction or instrument not otherwise 

dormant that a registered entity selfdeclares through certification to be 

dormant. 

(c) Dormant designated contract 

market means any designated contract 

market on which no trading has 

occurred for a period of twelve complete 

calendar months; provided, however, no 

designated contract market shall be 

considered to be dormant if its initial 

and original Commission order of 

designation was issued within the 

preceding 36 complete calendar months. 

(d) Dormant derivatives clearing 

organization means any derivatives 

clearing organization registered 

pursuant to Section 5b of the Act that 

has not accepted for clearing any 

agreement, contract or transaction that 

is required or permitted to be cleared by 

a derivatives clearing organization 

under Sections 5b(a) and 5b(b) of the 

Act, respectively, for a period of twelve 

complete calendar months; provided, 

however, no derivatives clearing 

organization shall be considered to be 

dormant if its initial and original 

Commission order of registration was 

issued within the preceding 36 

complete calendar months. 

(e) Dormant derivatives transaction 

execution facility means any derivatives 

transaction execution facility on which 

no trading has occurred for a period of 

twelve complete calendar months; 

provided, however, no derivatives 

transaction execution facility shall be 

considered to be dormant if its initial 

and original Commission order of 


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Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 8605 

designation was issued within the 

preceding 36 complete calendar months. 

(f) Dormant rule means: 

(1) Any registered entity rule which 

remains unimplemented for twelve 

complete calendar months following a 

certification with, or an approval by, the 

Commission; or 

(2) Any rule or rule amendment of a 

dormant registered entity. 

(g) Emergency means any occurrence 

or circumstance that, in the opinion of 

the governing board of a registered 

entity, or a person or persons duly 

authorized to issue such an opinion on 

behalf of the governing board of a 

registered entity under circumstances 

and pursuant to procedures that are 

specified by rule, requires immediate 

action and threatens or may threaten 

such things as the fair and orderly 

trading in, or the liquidation of or 

delivery pursuant to, any agreements, 

contracts or transactions, including: 

(1) Any manipulative or attempted 

manipulative activity; 

(2) Any actual, attempted, or 

threatened corner, squeeze, congestion, 

or undue concentration of positions; 

(3) Any circumstances which may 

materially affect the performance of 

agreements, contracts or transactions, 

including failure of the payment system 

or the bankruptcy or insolvency of any 

participant; 

(4) Any action taken by any 

governmental body, or any other 

registered entity, board of trade, market 

or facility which may have a direct 

impact on trading; and 

(5) Any other circumstance which 

may have a severe, adverse effect upon 

the functioning of a registered entity. 

* * * * * 

■ 5. In § 40.2, revise the heading and 

paragraphs (a) introductory text, (a)(1) 

and (a)(2) to read as follows: 

§ 40.2 Listing and accepting products for 

trading or clearing by certification. 

(a) Unless permitted otherwise by 

§ 37.7 of this chapter, a designated 

contract market or a registered 

derivatives transaction execution 

facility must comply with the 

submission requirements of this section 

prior to listing a product for trading that 

has not been approved under § 40.3 of 

this chapter or that remains dormant 

subsequent to being submitted under 

this section or approved under § 40.3 of 

this chapter. A registered derivatives 

clearing organization must comply with 

the submission requirements of this 

section prior to accepting for clearing a 

product that is not traded on a 

registered entity and has not been 

approved for clearing under § 40.5 of 

this chapter or that remains dormant 

subsequent to being submitted under 

this section or approved under § 40.5 of 

this chapter. A submission shall comply 

with the following conditions: 

(1) The registered entity has filed its 

submission electronically in a format 

specified by the Secretary of the 

Commission with the Secretary of the 

Commission at submissions@cftc.gov, 

the relevant branch chief at the regional 

office having local jurisdiction over the 

registered entity, and, for filings 

submitted by a designated contract 

market or registered derivatives 

transaction execution facility, the 

Division of Market Oversight at 

DMOSubmissions@cftc.gov; 

(2) The Commission has received the 

submission at its headquarters by the 

open of business on the business day 

preceding the product’s listing or 

acceptance for clearing; and 

* * * * * 

■ 6. In § 40.3, revise paragraph (a) 

introductory text to read as follows: 

§ 40.3 Voluntary submission of new 

products for Commission review and 

approval. 

(a) Request for approval. Pursuant to 

Section 5c(c) of the Act and §§ 37.7 and 

38.4 of this chapter, a designated 

contract market or registered derivatives 

transaction execution facility may 

request that the Commission approve a 

new or dormant product prior to listing 

the product for trading, or if initially 

submitted under § 40.2 of this chapter, 

subsequent to listing the product for 

trading. A submission requesting 

approval shall: 

* * * * * 

■ 7. In § 40.4, revise paragraph (a) and 

(b)(2) to read as follows: 

§ 40.4 Amendments to terms or conditions 

of enumerated agricultural contracts. 

(a) Notwithstanding the provisions of 

this part, a designated contract market 

must submit for Commission approval 

under the procedures of § 40.5, prior to 

its implementation, any rule or dormant 

rule that, for a delivery month having 

open interest, would materially change 

a term or condition, as defined in 

§ 40.1(i), of a contract for future delivery 

in an agricultural commodity 

enumerated in Section 1a(4) of the Act, 

or of an option on such a contract or 

commodity. 

* * * * * 

(b) * * * 

(2) For each delivery location, 

changes in lists of approved delivery 

facilities and delivery service providers, 

including weighmasters and inspectors, 

pursuant to previously set standards or 

criteria; 

* * * * * 

■ 8. In § 40.5, revise paragraphs (a) 

introductory text and (c) introductory 

text to read as follows: 

§ 40.5 Voluntary submission of rules for 

Commission review and approval. 

(a) Request for approval of rules. 

Pursuant to Section 5c(c) of the Act and 

§§ 37.7, 38.4 and 39.4 of this chapter, a 

registered entity may request that the 

Commission approve a new or dormant 

rule prior to implementation, or if 

initially submitted under §§ 40.2 or 40.6 

of this chapter, subsequent to 

implementation. A submission 

requesting approval shall: 

* * * * * 

(c) Commencement and extension of 

time for review. The Commission shall 

commence the review period in 

paragraph (b) of this section for a 

compliant submission under § 40.4(b)(9) 

ten business days after its receipt and 

further may extend the review period in 

paragraph (b) of this section for any 

approval request for: 

* * * * * 

■ 9. Amend § 40.6 as follows: 

A. Remove the term ‘‘designated 

contract market or registered derivatives 

clearing organization’’ and add in its 

place the term ‘‘registered entity’’ in 

paragraphs (a)(2), (c)(1), and (c)(3)(i); 

B. Remove the term ‘‘designated 

contract market or a registered 

derivatives clearing organization’’ and 

add in its place the term ‘‘registered 

entity’’ in paragraph (c) introductory 

text; 

C. Remove the term ‘‘designated 

contract markets and registered 

derivatives clearing organizations’’ and 

add in its place the term ‘‘registered 

entities’’ in paragraph (c)(3) 

introductory text; 

D. Remove the term ‘‘contract market 

or a derivatives clearing organization’s’’

and add in its place the term ‘‘registered 

entity’’ in paragraph (c)(3)(ii)(B); and 

E. In addition, revise the heading and 

paragraphs (a) introductory text, (a)(2), 

(c)(2)(iii), and (c)(2)(iv), and add 

paragraphs (c)(2)(vii) through (c)(2)(ix), 

(c)(3)(ii)(G) and (c)(3)(ii)(H) to read as 

follows: 

§ 40.6 Self-certification of rules. 

(a) Required certification. Unless 

permitted otherwise by § 37.7 of this 

chapter, a registered entity must comply 

with the following conditions prior to 

the implementation of any rule that has 

not obtained Commission approval 

under § 40.5 of this chapter or that 

remains dormant subsequent to being 


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8606 Federal Register / Vol. 73, No. 31 / Thursday, February 14, 2008 / Rules and Regulations 

submitted under this section or 

approved under § 40.5 of this chapter: 

(1) * * * 

(2) The registered entity has filed its 

submission electronically in a format 

specified by the Secretary of the 

Commission with the Secretary of the 

Commission at submissions@cftc.gov, 

the relevant branch chief at the regional 

office having local jurisdiction over the 

registered entity, and, for filings 

submitted by a designated contract 

market or registered derivatives 

transaction execution facility, the 

Division of Market Oversight at 

DMOSubmissions@cftc.gov, and the 

Commission has received the 

submission at its headquarters by the 

open of business on the business day 

preceding implementation of the rule; 

provided, however, rules or rule 

amendments implemented under 

procedures of the governing board to 

respond to an emergency as defined in 

§ 40.1, shall, if practicable, be filed with 

the Commission prior to the 

implementation or, if not practicable, be 

filed with the Commission at the earliest 

possible time after implementation, but 

in no event more than twenty-four hours 

after implementation; and 

* * * * * 

(c) * * * 

(2) * * * 

(iii) Index products. Routine changes 

in the composition, computation, or 

method of selection of component 

entities of an index (other than routine 

changes to securities indexes to the 

extent that such changes are not 

described in paragraph (c)(3)(ii)(F) of 

this section) referenced and defined in 

the product’s terms, that do not affect 

the pricing basis of the index, which are 

made by an independent third party 

whose business relates to the collection 

or dissemination of price information 

and which was not formed solely for the 

purpose of compiling an index for use 

in connection with a futures or option 

product; 

(iv) Option contract terms. Changes to 

option contract rules, which may 

qualify for implementation without 

notice pursuant to paragraph (c)(3)(ii)(G) 

of this section, relating to the strike 

price listing procedures, strike price 

intervals, and the listing of strike prices 

on a discretionary basis; 

* * * * * 

(vii) Approved brands. Changes in 

lists of approved brands or markings 

pursuant to previously certified or 

Commission approved standards or 

criteria; 

(viii) Delivery facilities and delivery 

service providers. Changes in lists of 

approved delivery facilities and delivery 

service providers (including 

weighmasters, assayers, and inspectors) 

at a delivery location, pursuant to 

previously certified or Commission 

approved standards or criteria; or 

(ix) Trading Months. The initial 

listing of trading months, which may 

qualify for implementation without 

notice pursuant to (c)(3)(ii)(H) of this 

section, within the currently established 

cycle of trading months. 

(3) * * * 

(ii) * * * 

(G) Option contract terms. For 

registered entities that are in 

compliance with the daily reporting 

requirements of § 16.01(b) of this 

chapter, changes to option contract rules 

relating to the strike price listing 

procedures, strike price intervals, and 

the listing of strike prices on a 

discretionary basis. 

(H) Trading Months. For registered 

entities that are in compliance with the 

daily reporting requirements of 

§ 16.01(a) of this chapter, the initial 

listing of trading months which are 

within the currently established cycle of 

trading months. 

Issued in Washington, DC, on February 6, 

2008, by the Commission. 

David A. Stawik, 

Secretary of the Commission. 

[FR Doc. E8–2580 Filed 2–13–08; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF HEALTH AND 

HUMAN SERVICES 

Food and Drug Administration 

21 CFR Part 184 

[Docket No. FDA–2008–N–0068] 

Generally Recognized As Safe 

Substances; Technical Amendments 

AGENCY: Food and Drug Administration, 

HHS. 

ACTION: Final rule; technical 

amendments. 

SUMMARY: The Food and Drug 

Administration (FDA) is amending 

certain regulations regarding generally 

recognized as safe (GRAS) substances to 

remove references to FDA development 

of food-grade specifications in 

cooperation with the National Academy 

of Sciences (NAS, now the National 

Academies). This action is editorial in 

nature and is intended to ensure the 

accuracy of the agency’s regulations. 

DATES: This rule is effective February 

14, 2008. 

FOR FURTHER INFORMATION CONTACT: 

Daniel E. Folmer, Center for Food Safety 

and Applied Nutrition (HFS–265), Food 

and Drug Administration, 5100 Paint 

Branch Pkwy., College Park, MD 20740–

3835, 301–436–1274. 

SUPPLEMENTARY INFORMATION: FDA is 

amending its regulations in part 184 (21 

CFR part 184). Several sections in part 

184 state that FDA is developing foodgrade specifications in cooperation with 

the National Academy of Sciences 

(NAS, now the National Academies). 

However, the National Academies is no 

longer developing food-grade 

specifications for food additives and 

ingredients. Therefore, this rule removes 

the obsolete information. 

The final rule contains no collection 

of information. Therefore, clearance by 

the Office of Management and Budget 

under the Paperwork Reduction Act of 

1995 is not required. 

Publication of this document 

constitutes final action on these changes 

under the Administrative Procedure Act 

(5 U.S.C. 553). These amendments 

remove obsolete information and are 

nonsubstantive. FDA therefore, for good 

cause, finds under 5 U.S.C. 553(b)(3)(B) 

and (d)(3) that notice and public 

comment are unnecessary. 

List of Subjects in 21 CFR Part 184 

Food additives. 

■ Therefore, under the Federal Food, 

Drug, and Cosmetic Act and under 

authority delegated to the Commissioner 

of Food and Drugs, 21 CFR part 184 is 

amended as follows: 

PART 184—DIRECT FOOD 

SUBSTANCES AFFIRMED AS 

GENERALLY RECOGNIZED AS SAFE 

■ 1. The authority citation for 21 CFR 

part 184 continues to read as follows: 

Authority: 21 U.S.C. 321, 342, 348, 371. 

■ 2. Section 184.1065 is amended by 

revising paragraph (b) to read as follows: 

§ 184.1065 Linoleic acid. 

* * * * * 

(b) The ingredient must be of a purity 

suitable for its intended use. The 

ingredient must also meet the 

specifications in § 172.860(b) of this 

chapter. 

* * * * * 

■ 3. Section 184.1140 is amended by 

revising paragraph (b) to read as follows: 

§ 184.1140 Ammonium citrate, dibasic. 

* * * * * 

(b) The ingredient must be of a purity 

suitable for its intended use. 

* * * * * 

■ 4. Section 184.1155 is amended by 

revising paragraph (b) to read as follows: 


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