Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Rules and Regulations 50209 

1Commodity Exchange Act § 3(b), 7 U.S.C. § 5(b). 

2The Commission has recently proposed 

amendments to its definition of the term, ‘‘foreign 

broker.’’ The amended definition would also be 

relocated, from its current location at § 15.00(g) to 

§ 1.3(xx). See 72 FR 15637 (April 2, 2007). If such 

amendments were to be adopted, there would be no 

change in a foreign broker’s obligations to comply 

with the Commission’s large trader or special call 

regulations set forth in 17 CFR Parts 15-21. 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Parts 437 

[Docket No. FAA–2006–24197; Amendment 

Nos. 401–5, 404–4, 405–3, 406–4, 413–9, 

420–3, 431–2, 437–0] 

Experimental Permits for Reusable 

Suborbital Rockets 

AGENCY: Federal Aviation 

Administration, DOT. 

ACTION: Notice of Office of Management 

and Budget Approval for Information 

Collection. 

SUMMARY: This notice announces the 

Office of Management and Budget’s 

(OMB) approval of the information 

collection requirement in the final rule 

published April 6, 2007 (72 FR 17001). 

The sections of the final rule pending 

approval of this information collection 

request are effective on publication of 

this notice. 

DATES: The FAA received OMB 

approval for the information collection 

requirement in the Final Rule published 

on April 6, 2007. The compliance date 

for information collection requirements 

in 14 CFR 437.21, 437.25, 437.27, 

437.29, 437.31, 437.37, 437.41, 437.53, 

437.55, 437.57, 437.59, 437.69, and 

437.89 is Augusst 31, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Randy Repcheck, Office of Commercial 

Space Transportation, Federal Aviation 

Administration, 800 Independence 

Avenue, SW., Washington, DC 20591; 

telephone: (202) 267–8760; facsimile: 

(202) 267–5463; e-mail: 

randy.repcheck@faa.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

On April 6, 2007, the FAA published 

the final rule, ‘‘Experimental Permits for 

Reusable Suborbital Rockets,’’ in the 

Federal Register. The rule established 

application requirements for an operator 

of a manned or unmanned reusable 

suborbital rocket to obtain an 

experimental permit. The FAA also 

established operating requirements and 

restrictions on launch and re-entry of 

reusable suborbital rockets operated 

under a permit. The requirements above 

are in Title 14 of the Code of Federal 

Regulations parts 401, 404, 405, 406, 

413, 415, 420, 431, and 437. 

We noted, in the ‘‘Paperwork 

Reduction Act’’ section of the final rule, 

that affected parties did not need to 

comply with the information collection 

requirements of the rule until the Office 

of Management and Budget (OMB) 

approved the FAA’s request to collect 

the information. 

In accordance with the Paperwork 

Reduction Act, OMB approved the 

FAA’s request for new information 

collection on June 1, 2007, and assigned 

the information collection OMB Control 

Number 2120–0722. The control 

number was not available when the 

final rule was published, thus 

necessitating publication of this notice. 

The FAA request was approved by OMB 

without change and expires on June 30, 

2010. 

49 U.S.C. 106(g), 40113, 40119, 41706, 

44101, 44701–44702, 44705, 44709–

44711, 44713, 44716–44717, 44722, 

46105, grants authority to the 

Administrator to publish this notice. 

The final rule (72 FR 17001) became 

effective on June 5, 2007, and the 

compliance date for information 

collection requirements in 14 CFR 

437.21, 437.25, 437.27, 437.29, 437.31, 

437.37, 437.41, 437.53, 437.55, 437.57, 

437.59, 437.69, and 437.89 is August 31, 

2007. 

Issued in Washington, DC on August 24, 

2007. 

Pamela Hamilton-Powell, 

Director, Office of Rulemaking. 

[FR Doc. E7–17368 Filed 8–30–07; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 21 

Special Calls 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rules. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’) 

has adopted amendments to Part 21 of 

its regulations relating to special calls 

for information. The amendments will: 

Add to the types of information 

specified in § 21.02, which must be 

furnished upon special call, information 

regarding exchanges of futures for 

physical commodities or for derivatives 

positions, and information regarding 

delivery notices issued and stopped; 

and delegate to the Director of the 

Division of Market Oversight and the 

Director’s delegatees, the ability to issue 

special calls pursuant to sections 21.01 

and 21.02. 

EFFECTIVE DATE: August 31, 2007. 

FOR FURTHER INFORMATION CONTACT: Don 

Heitman, Senior Special Counsel 

(telephone 202–418–5041, e-mail 

dheitman@cftc.gov), Division of Market 

Oversight, Commodity Futures Trading 

Commission, Three Lafayette Center, 

1155 21st Street, NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Commodity Exchange Act 

(‘‘Act’’), as amended by the Commodity 

Futures Modernization Act of 2000 

(‘‘CFMA’’), Pub. L. No. 106–554, is 

intended, among other things, to ‘‘deter 

and prevent price manipulation or any 

other disruptions to market integrity.’’ 1

To that end, the Commission, through 

its Division of Market Oversight 

(‘‘Division’’), conducts a comprehensive 

program of market surveillance. A 

centerpiece of this program is the largetrader reporting system, under which all 

large futures and option positions are 

reported to the Commission. Each day, 

for every active futures or option 

market, Division surveillance staff 

monitors the activities of large traders, 

key price relationships, and all relevant 

supply and demand factors in a 

continuous review for potential market 

problems. An essential element of the 

Commission’s market surveillance 

program is the ability to make special 

calls for information from Commission 

registrants and other market 

participants. 

A. Information To Be Furnished Upon 

Special Call 

Part 17 of the Commission’s 

regulations sets forth the routine reports 

that futures commission merchants, 

members of contract markets and 

foreign brokers (collectively, ‘‘reporting 

firms’’) are required to submit to the 

Commission.2 These reports provide the 

information for the Commission’s large 

trader reporting system. The 

Commission uses that information in its 

market surveillance program to detect 

and prevent market manipulation or 

other disruptions to market integrity in 

markets subject to Commission 

oversight. 

By contrast, the purpose of the 

Commission’s special call authority in 

Part 21 of the Commission’s regulations 

is to provide the Commission with 

relevant information that is not 

routinely supplied to the Commission 

pursuant to other parts of the 


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50210 Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Rules and Regulations 

Commission’s regulations such as Part 

17. For example, the Commission may 

need to know about futures positions 

that are below the routine reporting 

levels specified in Part 15 of the 

Commission’s regulations. Among 

possible reasons for such special needs 

for information may be a particular 

market situation that warrants 

unusually close Commission market 

surveillance, or when Commission staff 

is conducting an audit of reporting firms 

to ensure complete and accurate 

reporting. 

The amendments to Part 21 require 

reporting firms to retain and make 

available to the Commission, upon a 

special call, information similar to that 

which they are required to report to the 

Commission pursuant to Part 17 of the 

Commission’s regulations. Specifically, 

the amendments add two additional 

categories of information to the types of 

information specified in § 21.02, which 

must be furnished upon special call. 

The first additional category of 

information subject to special call under 

the amended rules includes information 

regarding futures contracts exchanged 

for physical commodities (‘‘EFPs’’), as 

well as futures contracts exchanged for 

other derivatives contracts, including 

exchanges of futures for options 

(‘‘EFOs’’) and exchanges of futures for 

swaps (‘‘EFSs’’). The second additional 

category of information includes the 

amount of futures contracts where 

actual delivery of the underlying 

commodity has been initiated (i.e., 

delivery notices have been issued or 

received). 

Section 21.02 applies to futures 

commission merchants (‘‘FCMs’’), 

introducing brokers (‘‘IBs’’), members of 

contract markets and foreign brokers. 

However, the first three of the foregoing 

categories are already subject to 

substantial reporting and recordkeeping 

requirements under § 1.35 of the 

Commission’s regulations, which, 

among other things, requires FCMs, IBs 

and contract market members to 

maintain, and produce on request, the 

records that are also the subject of these 

rules. Therefore, as a practical matter, 

the amended rules impose new 

requirements only on foreign brokers 

(who are not subject to § 1.35). 

Foreign brokers and other persons 

receiving a special call pursuant to 

§ 21.02 are required by that regulation to 

furnish the information requested. Since 

such persons cannot comply with the 

legal requirement to furnish information 

pursuant to a special call without 

maintaining records from which to 

generate the information requested, it 

follows that persons subject to special 

calls under § 21.02 are required, by the 

Commission’s regulations, to maintain 

such records. Therefore, such records—

including both those previously listed 

in § 21.02, and those that are added by 

this rule amendment—are subject to the 

five-year record retention requirements 

of § 1.31(a)(1) of the regulations, which 

provides in relevant part that: 

All books and records required to be 

kept by the Act or by these regulations 

shall be kept for a period of five years 

from the date thereof and shall be 

readily accessible during the first two 

years of the five-year period. 

B. Delegation of Authority 

The amendments adopted herein also 

delegate to the Director of the Division 

of Market Oversight, and the Director’s 

delegatees, the power to issue special 

calls pursuant to sections 21.01 and 

21.02. Consistent with other delegations 

of authority to Commission senior staff, 

the delegation of the Part 21 special call 

authority allows the Director to submit 

to the Commission for its consideration 

any matter that has been delegated 

pursuant to the new section. The 

amendment also preserves the 

Commission’s ultimate authority over 

the special calls by providing that, 

‘‘nothing in this section shall be deemed 

to prohibit the Commission, at its 

election, from exercising the authority 

delegated * * * to the Director.’’

C. The Proposed Rules 

These amendments were published 

for comment at 72 FR 34417, June 22, 

2007, with a 30-day comment period. 

No comments were received in response 

to the notice of proposed rulemaking. 

Accordingly, the amendments have 

been adopted as proposed. 

II. Cost Benefit Analysis 

Section 15 of the Act, as amended by 

section 119 of the CFMA, 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, § 15(a) does not require the 

Commission to quantify the costs and 

benefits of its action or to determine 

whether the benefits of the action 

outweigh its costs. Rather, § 15(a) 

simply requires the Commission to 

‘‘consider the costs and benefits’’ of the 

subject rule or order. 

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. 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 provisions or to 

accomplish any of the purposes of the 

Act. 

The amendments supplement the 

Commission’s rules regarding its market 

surveillance program. That program 

supports one of the Commission’s most 

critical statutory responsibilities, 

deterring and preventing price 

manipulation or any other disruptions 

to market integrity. Effective 

surveillance activities are crucial not 

only to protecting market participants 

and the public from price manipulation, 

but also to: Promoting market efficiency, 

competitiveness and financial integrity; 

protecting the futures markets’ price 

discovery function; and promoting 

sound risk management practices. 

In addition, the records that are 

subject to special call under these 

amendments are the type of basic 

transaction records that any foreign 

broker would create as a matter of sound 

business practices. Because these 

records would be created in any event, 

independently of any regulatory 

requirements, the rules impose no 

additional costs on foreign brokers in 

that area. There would be minimal costs 

associated with providing the records in 

answer to a special call, but such costs 

would be far outweighed by the benefits 

of protecting the markets and the public. 

Finally, with respect to the five-year 

record retention requirement that 

applies to these records, the cost of 

retaining the records will be minimal 

because Commission rules allow such 

records to be maintained electronically. 

Those minimal costs would, again, be 

far outweighed by the benefits of 

protecting the marketplace and the 

public. 

The Commission has considered the 

costs and benefits of the amendments to 

Part 21 regarding special calls in light of 

the above-noted specific areas of 

concern identified in section 15. The 

Commission believes that the amended 

rules impose the minimum 

requirements necessary to enable it to 

perform its oversight functions and to 

carry out its mandate to protect the 

public interest in markets that are free 

of fraud, abuse and manipulation. 

After considering these factors, the 

Commission has determined to adopt 

the rule amendments set forth below. 

In the notice of proposed rulemaking, 

the Commission specifically invited 


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Federal Register / Vol. 72, No. 169 / Friday, August 31, 2007 / Rules and Regulations 50211 

3 72 FR 15673 (April 2, 2007). 

4 47 FR 18618, at 18621 (April 30, 1982). 

5 Id. at 18619. 

6Pub. L. 104–13 (May 13, 1995). 

7 72 FR 34417 (June 22, 2007). 

public comment on its application of 

the criteria contained in the Act. 

Commenters were also invited to submit 

any quantifiable data that they might 

have concerning the costs and benefits 

of the proposed rules with their 

comment letter. As noted above, no 

comments were received. 

III. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601 et seq., requires 

federal agencies, in promulgating rules, 

to consider the impact of those rules on 

small entities. The amendment to 

§ 21.02 applies to FCMs, IBs, members 

of contract markets and foreign brokers. 

However, as noted above, the first three 

of these categories are already subject to 

substantial reporting and recordkeeping 

requirements under § 1.35 of the 

Commission’s regulations. Among other 

things, that section requires FCMs, IBs 

and contract market members to 

maintain, and produce on request, the 

records that are also the subject of these 

rules. Therefore, as a practical matter, 

the rules impose new requirements only 

on foreign brokers (who are not subject 

to § 1.35). 

With respect to such foreign brokers, 

the Commission recently published 

proposed rules to exempt from 

registration certain foreign persons 

(including foreign brokers).3 In 

reviewing the applicability of the RFA 

to such foreign persons, the Commission 

noted that it has previously established 

certain definitions of ‘‘small entities’’ to 

be used in evaluating the impact of its 

regulations on such entities in 

accordance with the RFA.4 The 

Commission has previously determined 

that FCMs are not small entities for 

purposes of the RFA because each FCM 

has an underlying fiduciary relationship 

with its customers, regardless of the size 

of the FCM.5 The Commission notes that 

the foreign brokers affected by these 

amendments to the Commission’s 

regulations would be required to be 

registered as FCMs if not for certain 

exemptions provided in Commission 

regulations. As such, they would 

maintain a fiduciary relationship with 

customers similar to the relationship 

maintained by each registered FCM. 

Therefore, in this context foreign 

brokers, like FCMs, are not 

appropriately categorized as small 

entities. Accordingly, the Acting 

Chairman, on behalf of the Commission, 

hereby certifies pursuant to 5 U.S.C. 

605(b) that the rules will not have a 

significant economic impact on a 

substantial number of small entities. 

B. Paperwork Reduction Act 

These rules contain information 

collection requirements. As required by 

the Paperwork Reduction Act of 1995 

(‘‘PRA’’),6 the Commission submitted a 

copy of the rules to the Office of 

Management and Budget (‘‘OMB’’) for 

its review. 

The amended rules have been 

reviewed and approved by OMB 

pursuant to the PRA, under control 

number 3038–0009. An agency may not 

conduct or sponsor, and a person is not 

required to respond to, a collection of 

information unless it displays a valid 

control number. In the Notice of 

Proposed Rulemaking, the Commission 

estimated the paperwork burden that 

could be imposed by the amendments 

and solicited comments thereon.7 No 

comments were received. 

Copies of the information collection 

submission to OMB are available from 

the Commission Clearance Officer, 

Three Lafayette Centre, 1155 21st Street, 

NW., Washington, DC 20581, (202) 418–

5160. 

List of Subjects 

Commodity futures, Commodity 

Futures Trading Commission. 

■ In consideration of the foregoing, and 

pursuant to the authority in the 

Commodity Exchange Act, the 

Commission hereby amends Part 21 of 

Title 17 of the Code of Federal 

Regulations as follows: 

PART 21—SPECIAL CALLS 

■ 1. The authority section for Part 21 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 2a, 4, 6a, 6c, 6f, 

6g, 6i, 6k, 6m, 6n, 7, 7a, 12a, 19 and 21; 5 

U.S.C. 552 and 552(b). 

■ 2. Section 21.02 is amended by 

removing the word, ‘‘and,’’ at the end of 

paragraph (f), by redesignating 

paragraph (g) as paragraph (i), and by 

adding new paragraphs (g) and (h). 

The additions read as follows: 

§ 21.02 Special calls for information on 

open contracts in accounts carried or 

introduced by futures commission 

merchants, members of contract markets, 

introducing brokers, and foreign brokers. 

* * * * * 

(g) The total number of futures 

contracts exchanged for commodities or 

for derivatives positions; 

(h) The total number of futures 

contracts against which delivery notices 

have been issued or received; and 

* * * * * 

■ 3. Section 21.04 is added to read as 

follows: 

§ 21.04 Delegation of authority to the 

Director of the Division of Market Oversight. 

The Commission hereby delegates, 

until the Commission orders otherwise, 

to the Director of the Division of Market 

Oversight, or to the Director’s delegates, 

the authority set forth in section 21.01 

of this Part to make special calls for 

information on controlled accounts from 

futures commission merchants and from 

introducing brokers and the authority 

set forth in section 21.02 of this Part to 

make special calls for information on 

open contracts in accounts carried or 

introduced by futures commission 

merchants, members of contract 

markets, introducing brokers, and 

foreign brokers. The Director may 

submit to the Commission for its 

consideration any matter that has been 

delegated pursuant to this section. 

Nothing in this section shall be deemed 

to prohibit the Commission, at its 

election, from exercising the authority 

delegated in this section to the Director. 

Issued in Washington, DC, on August 23, 

2007, by the Commission. 

David Stawick, 

Secretary of the Commission. 

[FR Doc. E7–17100 Filed 8–30–07; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

26 CFR Parts 53 and 54 

[TD 9334] 

RIN 1545–BG95 

Requirement of Return and Time for 

Filing; Correction 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Correction notice. 

SUMMARY: This document contains a 

correction to final and temporary 

regulations (TD 9334) that were 

published in the Federal Register on 

Friday, July 6, 2007 (72 FR 36871) 

providing guidance relating to the 

requirement of a return to accompany 

payment of excise taxes under section 

4965 of the Internal Revenue Code and 

the time for filing that return. 

DATES: The correction is effective 

August 31, 2007. 


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