35918 Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Rules and Regulations 

and R–3601B to assist the USAF in 

fulfilling new high altitude release 

bomb training requirements for fighter 

aircraft and new medium-to-high 

altitude release bomb training 

requirements for bombers (69 FR 

43539). The current altitude structure is 

not sufficient to meet these new training 

requirements. Interested parties were 

invited to participate in the rulemaking 

effort by submitting written comments 

on this proposal to the FAA. The FAA 

received no comments in response to 

the proposal. With the exception of 

editorial changes, this amendment is the 

same as that proposed in the notice. 

Section 73.36 of Title 14 CFR part 73 

was republished in FAA Order 7400.8N, 

dated February 16, 2007. 

The Rule 

This action amends Title 14 Code of 

Federal Regulations (14 CFR) part 73 by 

revising R–3601A and R–3601B at 

Brookville, KS, and changing the using 

agency. Specifically, this action revises 

R–3601A and R–3601B by combining 

their lateral boundaries, expanding the 

ceiling, and re-designating the lower 

portion (surface to but not including FL 

180) as R–3601A and the upper portion 

(FL 180 to FL 230) as R–3601B. The 

FAA is taking this action to assist the 

USAF in meeting new training 

requirements that call for practicing the 

release of bombs from higher altitudes 

than are currently available within the 

existing restricted areas. Additionally, 

this action will change the using agency 

of R–3601A and R–3601B from 

‘‘Commander, Kansas ANG, McConnell 

AFB, KS’’ to ‘‘Air National Guard, 184th 

Air Refueling Wing, Detachment 1, 

Smoky Hill ANG Range, Salina, KS.’’

This action does not change the times of 

use or the controlling agency for R–

3601A and R–3601B. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. Therefore, this regulation: (1) Is 

not a ‘‘significant regulatory action’’

under Executive Order 12866; (2) is not 

a ‘‘significant rule’’ under Department of 

Transportation (DOT) Regulatory 

Policies and Procedures (44 FR 11034; 

February 26, 1979); and (3) does not 

warrant preparation of a regulatory 

evaluation as the anticipated impact is 

so minimal. Since this is a routine 

matter that will only affect air traffic 

procedures and air navigation, it is 

certified that this rule, when 

promulgated, will not have a significant 

economic impact on a substantial 

number of small entities under the 

criteria of the Regulatory Flexibility Act. 

Environmental Review 

The FAA has determined that the 

Final Environmental Assessment (FEA) 

prepared by the Kansas Air National 

Guard for the proposed changes to the 

Smoky, Smokey High, and Bison MOAs 

and Restricted Areas 3601A and 3601B 

meet the criteria for adoption. The FAA 

has also determined that the proposed 

actions are consistent with existing 

national environmental policies and 

objectives as set forth in section 101 of 

the National Environmental Policy Act 

(NEPA) and other applicable 

environmental requirements and will 

not significantly affect the quality of the 

human environment or otherwise 

include any condition requiring 

consultation pursuant to section 

102(2)(c) of NEPA. Therefore, on May 

10, 2007, the FAA adopted the FEA and 

issued a Finding of No Significant 

Impact/Record of Decision in 

accordance with FAA Order 1050.1E, 

Environmental Impacts: Policies and 

Procedures. 

List of Subjects in 14 CFR Part 73 

Airspace, Navigation (air). 

The Adoption of the Amendment 

■ In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR part 73 as follows: 

PART 73—SPECIAL USE AIRSPACE 

■ 1. The authority citation for part 73 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959–

1963 Comp., p. 389. 

§ 73.36 [Amended] 

■ 2. § 73.36 is amended as follows: 

* * * * * 

R–3601A Brookville, KS [Revised] 

By removing the current boundaries, 

designated altitudes, and using agency, and 

substituting the following: 

Boundaries. Beginning at lat. 38°45′20′′ N., 

long. 97°46′01′′ W.; to lat. 38°39′45′′ N., long. 

97°46′01′′ W.; then southwest along the 

Missouri Pacific Railroad Track; to lat. 

38°38′20′′ N., long. 97°47′31′′ W.; to lat. 

38°38′20′′ N., long. 97°50′01′′ W.; to lat. 

38°35′00′′ N., long. 97°50′01′′ W.; to lat. 

38°35′00′′ N., long. 97°56′01′′ W.; to lat. 

38°45′20′′ N., long. 97°56′01′′ W.; to the point 

of beginning. 

Designated altitudes. Surface to but not 

including FL180. 

Using Agency. Air National Guard, 184th 

Air Refueling Wing, Detachment 1, Smoky 

Hill ANG Range, Salina, KS. 

* * * * * 

R–3601B Brookville, KS [Revised] 

By removing the current boundaries, 

designated altitudes, and using agency and 

substituting the following: 

Boundaries. Beginning at lat. 38°45′20′′ N., 

long. 97°46′01′′ W.; to lat. 38°39′45′′ N., long. 

97°46′01′′ W.; then southwest along the 

Missouri Pacific Railroad Track; to lat. 

38°38′20′′ N., long. 97°47′31′′ W.; to lat. 

38°38′20′′ N., long. 97°50′01′′ W.; to lat. 

38°35′00′′ N., long. 97°50′01′′ W.; to lat. 

38°35′00′′ N., long. 97°56′01′′ W.; to lat. 

38°45′20′′ N., long. 97°56′01′′ W.; to the point 

of beginning. 

Designated altitudes. FL180 to FL230. 

Using Agency. Air National Guard, 184th 

Air Refueling Wing, Detachment 1, Smoky 

Hill ANG Range, Salina, KS. 

* * * * * 

Issued in Washington, DC, June 18, 2007. 

Kenneth McElroy, 

Acting Manager, Airspace and Rules Group. 

[FR Doc. E7–12703 Filed 6–29–07; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 3 

RIN 3038–AC37 

Registration of Intermediaries 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) has amended Commission 

Regulation 3.10 to require certain 

registered intermediaries, i.e., futures 

commission merchants (‘‘FCMs’’), 

introducing brokers (‘‘IBs’’), commodity 

pool operators (‘‘CPOs’’), commodity 

trading advisors (‘‘CTAs’’) and leverage 

transaction merchants (‘‘LTMs’’), to 

complete an online annual review of 

their registration information 

maintained with the National Futures 

Association (‘‘NFA’’). This amendment 

is intended to ensure that NFA will 

have accurate and current information 

about such registrants. The Commission 

also has made a technical and 

conforming amendment to Commission 

Regulation 3.33(f) in order to remove an 

unnecessary reference to Regulation 

3.10(d). 

EFFECTIVE DATE: August 1, 2007. 

FOR FURTHER INFORMATION CONTACT: 

Helene D. Schroeder, Special Counsel, 

Compliance and Registration Section, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street, NW., Washington, DC 

20581, telephone number: (202) 418–

5450; facsimile number: (202) 418–5528; 

and electronic mail: 

hschroeder@cftc.gov. 

SUPPLEMENTARY INFORMATION: 


pwalker on PROD1PC71 with RULES
Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Rules and Regulations 35919 

1 17 CFR Part 3. The Commission’s regulations 

can be accessed at http://www.access.gpo.gov/nara/ 

cfr/waisidx_06/17cfrv1_06.html. 

2 7 U.S.C. 1 et seq. (2000). The Act can be 

accessed at http://www.access.gpo.gov/uscode/ 

title7/chapter1_.html. 

3 7 U.S.C. 6f(a)(1). 

4 7 U.S.C. 6n(1). 

5 7 U.S.C. 6c. 

6 7 U.S.C. 23. Commission Regulation 31.5, 17 

CFR 31.5 (2007), was promulgated under this 

provision and along with Regulation 3.10, 17 CFR 

3.10, governs the registration of LTMs. 

7 17 CFR 3.10(a). 

8 17 CFR 3.31(a)(1). 

9For example, NFA requires that any securities 

broker or dealer that is registered with the 

Securities and Exchange Commission that becomes 

a notice-registered FCM or IB must submit a 

hardcopy version of its Form 7–R. 

10See 67 FR 38869 (June 6, 2002). 

11Under the protocol, a firm could modify the 

title given for a particular principal of a firm, but 

it could not identify a new principal, as this would 

require separate application. 

12 72 FR 20788. 

13Paragraph (d) of Regulation 3.10 had been 

reserved. 

14 5 U.S.C. 601 et seq. 

15 47 FR 18618 (Apr. 30, 1982). 

16 47 FR 18618, 18619. 

17 5 U.S.C. 605(b). 

18 7 U.S.C. 19(a). 

I. Background 

Part 3 of the Commission’s regulations 

sets forth the regulations relating to the 

registration of intermediaries and other 

futures industry professionals.1 The 

Commission adopted Part 3 pursuant to 

the authority set forth in Sections 4c, 

4d, 4f(a)(1), 4m, 4n(1) and 19 of the 

Commodity Exchange Act (‘‘Act’’).2

These statutory provisions require the 

registration of firms seeking to act as 

intermediaries for exchange-traded 

futures and commodity options. Section 

4f(a)(1) contains the framework for the 

registration of FCMs and IBs.3 Section 

4n(1) governs the registration of CPOs 

and CTAs.4 Sections 4c 5 and 19 of the 

Act,6 respectively, grant the 

Commission plenary authority, 

including registration authority, over 

commodity options and leverage 

transactions. 

Commission Regulation 3.10(a) 

specifies that an application for 

registration as an FCM, IB, CPO, CTA or 

LTM must be on a Form 7–R, completed 

and filed with NFA in accordance with 

the instructions thereto.7 Commission 

Regulation 3.31(a)(1) requires such 

intermediaries to correct promptly 

deficiencies or inaccuracies contained 

in the person’s Form 7–R or any Form 

8–R filed on behalf of a principal or an 

associated person.8

In 2002, NFA altered its registration 

procedures by shifting from paper-based 

registration to an online or electronic 

registration system. Pursuant to these 

new procedures, NFA requires, with 

limited exceptions,9 that all registration 

(and membership) forms, including the 

completed Form 7–R and 3–R, must be 

filed with NFA electronically through 

NFA’s Online Registration System 

(‘‘ORS’’). Shortly after the new 

procedures were implemented, the 

Commission deleted Regulation 3.10(d), 

pursuant to which intermediary firms 

would conduct an annual review of a 

pre-printed copy of the registrant’s 7–

R.10

II. Proposal 

In order to ensure that the registration 

information it maintains is accurate and 

up-to-date, NFA developed an online 

registration update protocol for firms to 

review and update their registration 

records. In addition to providing an 

updated list of persons authorized to 

enter data in ORS, the protocol would 

require registrants to provide updated 

disciplinary, branch office and firm 

contact information.11

To facilitate NFA’s efforts in 

implementing this new protocol, on 

April 26, 2007, the Commission 

published in the Federal Register a 

proposal to require firms to conduct an 

annual review of registration 

information. (‘‘Proposal’’).12 The 

Proposal, which included a proposed 

new paragraph (d) of Regulation 3.10 

(‘‘Proposed Amendment’’) was designed 

to ensure that NFA would be in 

possession of current and accurate 

information regarding intermediaries.13

Specifically, the Proposed Amendment 

would require that each FCM, IB, CPO, 

CTA and LTM, in accordance with 

procedures established by NFA, 

complete an online annual review of the 

registration information maintained by 

NFA. Pursuant to procedures 

established by NFA, registrants would 

be required to correct any deficiencies 

or inaccuracies contained therein. 

The Proposed Amendment also would 

provide that the failure to complete the 

review and update within 30 days of the 

date established by NFA for completion 

would be deemed to be a request for 

withdrawal from registration. As further 

provided therein, NFA would be 

required to process the request in 

accordance with the existing procedures 

for withdrawal of registration set forth 

in Commission Regulation 3.33(f). 

The Commission’s Proposal also 

included a technical and conforming 

amendment to Commission Regulation 

3.33(f) in order to remove unnecessary 

language that referenced Regulation 

3.10(d). 

III. Comments Regarding the Proposal 

The Commission received only one 

comment letter on its Proposal, and this 

comment, which was from NFA, 

expressed full support for the 

amendment. In light of this fact, and the 

foregoing, the Commission has 

determined to adopt the amendments to 

Regulations 3.10 and 3.33(f) as set forth 

in the Proposal. 

IV. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’) 14 requires that agencies, in 

proposing regulations, consider the 

impact of those regulations on small 

businesses. The amendment to 

Regulation 3.10 will affect persons that 

are registered as FCMs, IBs, CPOs, CTAs 

and LTMs. The Commission has 

previously established certain 

definitions of ‘‘small entities’’ to be used 

by the Commission in evaluating the 

impact of its regulations on such entities 

in accordance with the RFA.15 The 

Commission previously determined that 

registered FCMs, CPOs and LTMs are 

not small entities for the purpose of the 

RFA.16

With respect to the remaining 

persons, CTAs and IBs, the Commission 

stated in the Proposal that it did not 

believe that the economic impact of the 

Proposed Amendment would be 

significant. First, the information that 

would be required under the Proposed 

Amendment already is required to be 

collected under the existing registration 

framework, to wit, Regulation 3.31(a)(1). 

Second, the Proposed Amendment and 

NFA’s new protocol would focus each 

registrant on the specific areas that must 

be reviewed and, if needed, updated. 

Third, the Proposed Amendment would 

permit review and updating via 

electronic means in keeping with the 

current registration procedures. 

Accordingly, in accordance with 

Section 3(a) of the RFA,17 the Chairman, 

on behalf of the Commission, certified 

that the Proposed Amendment would 

not have a significant economic impact 

on a substantial number of small 

entities. 

The Commission invited the public to 

comment regarding its analysis of the 

application of the RFA to the Proposal. 

The Commission did not receive any 

such comments. 

B. Cost-Benefit Analysis 

Section 15(a) of the Act 18 requires the 

Commission to consider the costs and 

benefits of its action before issuing a 

new regulation under the Act. By its 

terms, Section 15(a) does not require the 

Commission to quantify the costs and 


pwalker on PROD1PC71 with RULES
35920 Federal Register / Vol. 72, No. 126 / Monday, July 2, 2007 / Rules and Regulations 

19 44 U.S.C. 3501 et seq. 

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 

costs and benefits 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, in its discretion, may 

choose to give greater weight to any one 

of the five enumerated areas and 

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 Commission 

has evaluated the costs and benefits of 

its Proposal, in particular, new 

Regulation 3.10(d) in light of the 

specific considerations identified in 

Section 15(a) of the Act. 

Regulation 3.10(d) concerns the 

registration of intermediaries, in 

particular, FCMs, IBs, CPOs, CTAs and 

LTMs. Specifically, it will require these 

intermediaries to complete an online 

annual review of their registration 

information, including disciplinary 

information, firm contacts and lists of 

authorized users. By ensuring that NFA, 

the self-regulatory organization that 

oversees the activities of these 

registrants, will have accurate and 

current information regarding 

registrants, Regulation 3.10(d) will 

maximize the protection of market 

participants and the public. 

Such intermediaries already are under 

an ongoing obligation to provide 

updated information to NFA pursuant to 

Commission Regulation 3.31(a)(1). 

Regulation 3.10(d) will require these 

registrants to comply with an online 

review protocol established by NFA. 

This protocol will provide a 

straightforward process for registrants to 

electronically update their registration 

information. It will focus and guide 

registrants on the particular areas that 

need updating. By facilitating NFA’s 

efforts to adopt this protocol, Regulation 

3.10(d) will result in efficiency 

enhancements for registrants and NFA. 

Regulation 3.10(d) also will have no 

effect on the following three enumerated 

areas: (1) Efficiency, competitiveness or 

the financial integrity of futures 

markets; (2) price discovery; and (3) 

sound risk management practices. 

After considering these factors, the 

Commission has determined to adopt 

the amendment to Regulation 3.10 set 

forth below. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) imposes certain obligations on 

federal agencies, including the 

Commission, in connection with their 

conducting or sponsoring any collection 

of information as defined by the PRA.19

In its Proposal, the Commission noted 

that the Proposed Amendment would 

require intermediaries to conduct an 

annual review of their registration 

information maintained with NFA and 

that this information is part of an 

approved collection of information. The 

Commission further noted that the 

Proposed Amendment would not result 

in any material modifications to this 

approved collection. Accordingly, for 

purposes of the PRA, the Commission 

certified that the Proposed Amendment 

did not impose any new reporting or 

recordkeeping requirements. 

The Commission did not receive any 

comments regarding its analysis relative 

to the PRA. 

List of Subjects in 17 CFR Part 3 

Administrative practice and 

procedure, Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements. 

■ For the reasons discussed in the 

preamble, the Commission amends 17 

CFR part 3 as follows: 

PART 3—REGISTRATION 

■ 1. The authority citation for part 3 

continues to read as follows: 

Authority: 5 U.S.C. 522, 522b; 7 U.S.C. 1a, 

2, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 

6n, 6o, 6p, 8, 9, 9a, 12, 12a, 13b, 13c, 16a, 

18, 19, 21, 23. 

■ 2. Section 3.10 is amended by adding 

paragraph (d) to read as follows: 

§ 3.10 Registration of futures commission 

merchants, introducing brokers, commodity 

trading advisors, commodity pool operators 

and leverage transaction merchants. 

* * * * * 

(d) On a date to be established by the 

National Futures Association, and in 

accordance with procedures established 

by the National Futures Association, 

each registrant as a futures commission 

merchant, introducing broker, 

commodity trading advisor, commodity 

pool operator or leverage transaction 

merchant shall, on an annual basis, 

review and update registration 

information maintained with the 

National Futures Association. The 

failure to complete the review and 

update within thirty days following the 

date established by the National Futures 

Association shall be deemed to be a 

request for withdrawal from registration, 

which shall be processed in accordance 

with the provisions of § 3.33(f). 

■ 3. Section 3.33 is amended by revising 

paragraph (f) introductory text to read as 

follows: 

§ 3.33 Withdrawal from registration. 

* * * * * 

(f) A request for withdrawal from 

registration will become effective on the 

thirtieth day after receipt of such 

request by the National Futures 

Association, or earlier upon written 

notice from the National Futures 

Association (with the written 

concurrence of the Commission) of the 

granting of such request, unless prior to 

the effective date: 

* * * * * 

Issued in Washington, DC, on June 26, 

2007, by the Commission. 

Eileen Donovan, 

Acting Secretary of the Commission. 

[FR Doc. E7–12767 Filed 6–29–07; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF JUSTICE 

Drug Enforcement Administration 

21 CFR Parts 1309 and 1310 

[Docket No. DEA–257F] 

RIN 1117–AA93 

Changes in the Regulation of Iodine 

Crystals and Chemical Mixtures 

Containing Over 2.2 Percent Iodine 

AGENCY: Drug Enforcement 

Administration (DEA), Justice. 

ACTION: Final rule. 

SUMMARY: This rulemaking changes the 

regulation of the listed chemical iodine 

under the chemical regulatory 

provisions of the Controlled Substances 

Act (CSA). The Drug Enforcement 

Administration (DEA) believes that this 

action is necessary to remove 

deficiencies in the existing regulatory 

controls, which have been exploited by 

drug traffickers who divert iodine (in 

the form of iodine crystals and iodine 

tincture) for the illicit production of 

methamphetamine in clandestine drug 

laboratories. This rulemaking moves 

iodine from List II to List I; reduces the 

iodine threshold from 0.4 kilograms to 

zero kilograms; adds import and export 

regulatory controls; and controls 


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