Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Rules and Regulations 5923

1 65 FR 77993 at 78013 (December 13, 2000).

2 65 FR 82272 (December 28, 2000).

3 66 FR 45221 at 45226 (August 28, 2001) 

(proposed rules) and 66 FR 53510 at 53513 (October 

23, 2001) (final rules).

4The Commission took a similar approach when 

it amended Rule 1.55 as well as Rule 1.33 

concerning electronic transmission of customer 

account statements. See 66 FR 53517 (Oct. 23, 

2001).

5Commodity Exchange Act § 4b(a)(2)(iv) 

(‘‘unlawful * * * to fill such order by offset against 

the order or orders of any other person, or willfully 

and knowingly and without the prior consent of 

such person to become the buyer in respect to any 

selling order of such person, or become the seller 

in respect to any buying order of such person’’), 7 

U.S.C. 4b(2)(C)(iv) (2003).

6Comment letter of Goldman Sachs & Co., 

December 9, 2004 at p. 2.

Alternative Methods of Compliance 

(AMOCs) 

(i) The Manager, Los Angeles Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested in accordance with the procedures 

found in 14 CFR 39.19. 

Material Incorporated by Reference 

(j) You must use Boeing Alert Service 

Bulletin MD90–24A074, excluding 

Appendix, Revision 02, dated June 3, 2003, 

to perform the actions that are required by 

this AD, unless the AD specifies otherwise. 

The Director of the Federal Register approved 

the incorporation by reference of this 

document in accordance with 5 U.S.C. 552(a) 

and 1 CFR part 51. For copies of the service 

information, contact Boeing Commercial 

Airplanes, Long Beach Division, 3855 

Lakewood Boulevard, Long Beach, California 

90846; Attention: Data and Service 

Management, Dept. C1–L5A (D800–0024). 

You can review copies at the Docket 

Management Facility office, U.S. Department 

of Transportation, 400 Seventh Street SW., 

room PL–401, Nassif Building, Washington, 

DC; or at the National Archives and Records 

Administration (NARA). For information on 

the availability of this material at NARA, call 

(202) 741–6030, or go to http://

www.archives.gov/federal_register/

code_of_federal_regulations/

ibr_locations.html.

Issued in Renton, Washington, on January 

26, 2005. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service.

[FR Doc. 05–1931 Filed 2–3–05; 8:45 am] 

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1 and 155

RIN 3038–AC16

Distribution of ‘‘Risk Disclosure 

Statement’’ by Futures Commission 

Merchants and Introducing Brokers

AGENCY: Commodity Futures Trading 

Commission.

ACTION: Final rule.

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is amending Rule 1.55 to 

provide that non-institutional customers 

may indicate with a single signature, in 

addition to the acknowledgment of 

receipt of various disclosures and the 

making of certain elections, the consent 

referenced in Rules 155.3(b)(2) and 

155.4(b)(2) and 155.4(b)(2) concerning 

customer permission for futures 

commission merchants (‘‘FCMs’’) and 

introducing brokers (‘‘IBs’’) to take the 

opposite side of an order. The 

Commission is also amending Rule 

1.55(f) to specify that the 

acknowledgments required by Rules 

155.3(b)(2) and 155.4(b)(2) are not 

required of institutional customers 

when they open an account.

DATES: Effective March 7, 2005.

FOR FURTHER INFORMATION CONTACT:

Lawrence B. Patent, Deputy Director, or 

Susan A. Elliott, 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: (202) 418–5439 or 

(202) 418–5464, or electronic mail: 

lpatent@cftc.gov or selliott@cftc.gov.

SUPPLEMENTARY INFORMATION: 

I. Background 

On November 9, 2004 (69 FR 64873), 

the commission published a proposed 

amendment to Rule 1.55 to provide that 

the single signature by which noninstitutional customers acknowledge 

receipt of basic risk disclosures of 

futures and option trading, and elect 

how hedging positions shall be handled 

in the event of a commodity broker 

bankruptcy, may also reflect the consent 

referenced in Rules 155.3(b)(2) and 

155.4(b)(2) concerning customer 

permission for FCMs and IBs to take the 

opposite side of an order. The 

Commission adopted a similar rule 

amendment in November 2000,1 but 

withdrew it the following month upon 

passage of the Commodity Futures 

Modernization Act of 2000.2 Most of the 

rules adopted and withdrawn in 2000 

were reproposed and re-adopted in 

2001,3 but this one was not. Because 

Commission staff received an inquiry 

about this issue, the Commission 

reproposed the rule amendment and 

sought comments.

II. Rule Amendments 

Three comments were received, from 

the National Futures Association 

(‘‘NFA’’), the Futures Industry 

Association (‘‘FIA’’) and an FCM, 

Goldman Sachs & Co. All comments 

supported adoption of the proposed 

amendment to Rule 1.55(d)(1). In 

addition, the three commenters were 

unanimous in their recommendation 

that the Commission adopt another rule 

amendment that clarifies, in Rule 

1.55(f), that acknowledgment to consent 

for an FCM or IB to take the opposite 

side of an order is not required of 

institutional customers when they open 

an account. 

The commenters requested that Rule 

1.55(f) also be amended to add the 

consent required under Commission 

Rules 115.3(b)(2) and 155.4(b)(2) to the 

prescribed disclosures, consents and 

elections that institutional customers 

are not required to acknowledge in 

opening an account with an FCM. The 

Commission believes that such a further 

amendment is consistent with the 

proposal and with the general structure 

of Rule 1.55 and that it is appropriate to 

clarify Rule 1.55(f) as the commenters 

suggest. The Commission emphasizes 

the point by cross-referencing Rule 1.55 

in Rules 1.55.3 and 155.4.4

As the Commission emphasized in its 

proposal, the single signature 

acknowledgment format was first 

adopted in 1993 based on a rationale of 

customer sophistication. If, with the 

Commission’s proposed rule 

amendment, non-institutional 

customers are now deemed sufficiently 

sophisticated to have their consents 

acknowledged with a single signature, it 

is certainly appropriate to assume that 

more sophisticated institutional 

customers understand that they are 

consenting to the trade practices 

described in Rule 155.3(b)(2) and 

155.4(b)(2) without a separate 

acknowledgment when an account is 

opened. 

Section 4b of the Act 5 nonetheless 

requires intermediaries to have the prior 

consent of the customer before 

knowingly taking, directly or indirectly, 

the opposite side of a customer’s order. 

Thus, as one of the commenters pointed 

out, it is still the responsibility of the 

entity opening the account to ensure 

that prospective customers give ‘‘the 

consent required under this rule,’’ even 

when the customer is an institutional 

customer.6 The amendment of Rule 

1.55(f) permits an entity to choose the 

most appropriate means to accomplish 

that objective. Finally, Rules 155.3(b)(2) 

and 155.4(b)(2) are amended to crossreference Rule 1.55(d)(1).

5924 Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Rules and Regulations 

7 47 FR 18618–18621 (April 30, 1982).

8 Id.

9Pub. L. 104–13 (May 13, 1995).

10See 66 FR 45221, 45228 (August 28, 2001).

III. Related Matters 

A. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’), 5 U.S.C. 601–611, requires that 

agencies, in proposing rules, consider 

the impact of those rules on small 

business. The Commission has 

previously established certain 

definitions of ‘‘small entities’’ to be used 

by the Commission in evaluating the 

impact of its rules on such entities in 

accordance with the RFA.7 The 

Commission previously has determined 

that, based upon the fiduciary nature of 

the FCM/customer relationships, as well 

as the requirement that FCMs meet 

minimum financial requirements. FCMs 

should be excluded from the definition 

of small entities. With respect to IBs, the 

CFTC has stated that it is appropriate to 

evaluate within the context of a 

particular rule proposal whether some 

or all of the affected entities should be 

considered small entities and, if so, to 

analyze the economic impact on them of 

any rule.8 In the regard, the amendment 

to Rule 1.55(d)(1) adopted herein does 

not require any IB to change its current 

method of doing business, and in fact 

eases a regulatory burden by permitting 

a single signature of the customer to 

represent an additional consent required 

by Commission regulations. The 

amendments to Rules 1.55(f) and 

155.3(b)(2) and 155.4(b)(2) clarify 

existing rules. No comments were 

received on this issue.

B. Paperwork Reduction Act 

The Paperwork Reduction Act of 

1995 9 imposes certain requirements on 

federal agencies (including the 

Commission) in connection with their 

conducting or sponsoring any collection 

of information as defined by the 

Paperwork Reduction Act (‘‘PRA’’). The 

amendments to Rules 1.55(d) and 155(f) 

that are the subject of this rulemaking 

do not alter the paperwork burden 

associated with the OMB Collection of 

Information submission, OMB Control 

Number 3038–0022, Rules Pertaining to 

Contract Markets and Their Members, 

where the Commission most recently 

described the paperwork burden 

associated with the 2001 rulemaking 

amendments.10 Thus, there is no need 

for an additional submission pursuant 

to the PRA.

List of Subjects 

17 CFR Part 1

Brokers, Commodity futures, 

Consumer protection, Disclosure, 

Reporting and recordkeeping 

requirements. 

17 CFR Part 155

Brokers, Commodity futures, 

Reporting and recordkeeping 

requirements.

■ In consideration of the foregoing, and 

pursuant to the authority contained in 

the Commodity Exchange Act and, in 

particular, Sections 4b, 4c(b), and 8a(5) 

thereof, 7 U.S.C. 6b, 6c(b), and 12a(5) 

(2000), and pursuant to the authority 

contained in 5 U.S.C. 552 and 552b 

(2003), the Commission hereby amends 

Chapter I of Title 17 of the Code of 

Federal Regulations as follows:

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT

■ 1. The authority citation for part 1 

continues to read as follows:

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

6d, 6e, 6f, 6g, 6h, 6i, 6j, 6k, 6l, 6m, 6n, 6o, 

6p, 7, 7a, 7b, 8, 9, 12, 12a, 12c, 13a, 13a–1, 

16, 16a, 19, 21, 23, and 24, as amended by 

the Commodity Futures Modernization Act of 

2000, appendix E of Pub. L. 106–554, 114 

Stat. 2763 (2000).

■ 2. Section 1.55 is amended by revising 

paragraphs (d)(1) and (f) to read as 

follows:

§ 1.55 Distribution of ‘‘Risk Disclosure 

Statement’’ by futures commission 

merchants and introducing brokers.

* * * * *

(d) * * *

(1) Prior to the opening of such 

account, the futures commission 

merchant or introducing broker obtains 

an acknowledgement from the customer, 

which may consist of a single signature 

at the end of the futures commission 

merchant’s or introducing broker’s 

customer account agreement, or on a 

separate page, of the disclosure 

statements, consents and elections 

specified in this section and § 1.33(g), 

and in §§ 33.7, § 155.3(b)(2), 

§ 155.4(b)(2), and § 190.06 of this 

chapter, and which may include 

authorization for the transfer of funds 

from a segregated customer account to 

another account of such customer, as 

listed directly above the signature line, 

provided the customer has 

acknowledged by check or other 

indication next to a description of each 

specified disclosure statement, consent 

or election that the customer has 

received and understood such 

disclosure statement or made such 

consent or election; and 

***

(f) A futures commission merchant or, 

in the case of an introduced account, an 

introducing broker, may open a 

commodity futures account for an 

‘‘institutional customer’’ as defined in 

§ 1.3(b) without furnishing such 

institutional customer the disclosure 

statements or obtaining the 

acknowledgments required under 

paragraph (a) of this section, §§ 1.33(g) 

and 1.65(a)(3), and §§ 30.6(a), 33.7(a), 

155.3(b)(2), 155.4(b)(2) and 190.10(c) of 

this chapter.

* * * * *

PART 155—TRADING STANDARDS

■ 3. The authority citation for part 155 

continues to read as follows:

Authority: U.S.C. 6b, 6c, 6g, 6j and 12a, 

unless otherwise noted.

■ 4. Section 155.3 is amended by 

revising paragraph (b)(2) as follows:

§ 155.3 Trading standards for futures 

commission merchants.

* * * * *

(b) * * *

(2)(i) Knowingly take, directly or 

indirectly, the other side of any order of 

another person revealed to the futures 

commission merchant or any of its 

affiliated persons by reason of their 

relationship to such other person, 

except with such other person’s prior 

consent and in conformity with contract 

market rules approved by or certified to 

the Commission. 

(ii) In the case of a customer who does 

not qualify as an ‘‘institutional 

customer’’ as defined in § 1.3(g) of this 

chapter, a futures commission merchant 

must obtain the customer’s prior 

consent through a signed 

acknowledgment, which may be 

accomplished in accordance with 

§ 1.55(d) of this chapter.

* * * * *

■ 5. Section 155.4 is amended by 

revising paragraph (b)(2) as follows:

§ 155.4 Trading standards for introducing 

brokers.

* * * * *

(b) * * *

(2)(i) Knowingly take, directly or 

indirectly, the other side of any order of 

another person revealed to the 

introducing broker or any of its 

affiliated persons by reason of their 

relationship to such other person, 

except with such other persons’s prior 

consent and in conformity with contract 

market rules approved by or certified to 

the Commission. 

Federal Register / Vol. 70, No. 23 / Friday, February 4, 2005 / Rules and Regulations 5925

(ii) In the case of a customer who does 

not qualify as an ‘‘institutional 

customer’’ as defined in § 1.3(g) of this 

chapter, an introducing broker must 

obtain the customer’s prior consent 

through a signed acknowledgment, 

which may be accomplished in 

accordance with § 1.55(d) of this 

chapter.

* * * * *

Dated: January 27, 2005.

By the Commission. 

Jean A. Webb, 

Secretary of the Commission.

[FR Doc. 05–1906 Filed 2–3–05; 8:45 am] 

BILLING CODE 6351–01–M

DEPARTMENT OF JUSTICE

Drug Enforcement Administration 

21 CFR Parts 1310 and 1313 

[Docket No. DEA–137N] 

RIN 1117–AA31 

Chemical Mixtures; Temporary Waiver 

of Import/Export Requirements

AGENCY: Drug Enforcement 

Administration (DEA), Justice.

ACTION: Temporary waiver of import/

export requirements. 

SUMMARY: On December 15, 2004, the 

Drug Enforcement Administration 

(DEA) published a final rule that 

implemented regulations pertaining to 

chemical mixtures that contain any of 

27 listed chemicals regulated under the 

Controlled Substances Act (21 U.S.C. 

801 et seq.). That rulemaking became 

effective on January 14, 2005. 

Following publication of the final 

rule, certain segments of the chemical 

industry expressed concerns to DEA 

regarding difficulty in fully complying 

with DEA import/export notification 

requirements as specified in 21 CFR part 

1313 by this deadline. Therefore, in 

order to avoid interruption of legitimate 

import/export distributions, DEA is 

providing a waiver of the import/export 

reporting requirements as specified in 

21 CFR part 1313 until May 14, 2005. 

As such, regulated persons will 

temporarily not be required to submit 

advance notification for import, export 

and transshipment transactions for 

chemical mixtures regulated solely due 

to the presence of these 27 listed 

chemicals until May 14, 2005. This 

temporary waiver applies only to 

import, export and transshipment 

notification requirements; all other 

chemical control requirements set forth 

in the final rulemaking published on 

December 15, 2004, shall remain in full 

force and effect.

DATES: Effective February 4, 2005. The 

new deadline for providing import, 

export and transshipment notification 

for regulated chemical mixtures 

containing these 27 listed chemicals 

will be May 14, 2005.

FOR FURTHER INFORMATION CONTACT:

Christine A. Sannerud, Ph.D., Chief, 

Drug & Chemical Evaluation Section, 

Office of Diversion Control, Drug 

Enforcement Administration, 

Washington, DC 20537, telephone (202) 

307–7183

SUPPLEMENTARY INFORMATION: On 

December 15, 2004, the Drug 

Enforcement Administration (DEA) 

published a final rule (69 FR 74957) that 

implemented regulations pertaining to 

chemical mixtures that contain any of 

27 listed chemicals regulated under the 

Controlled Substances Act (CSA). That 

rulemaking became effective on January 

14, 2005. 

Following publication of the final rule 

concerns were raised by various 

segments of the chemical industry 

regarding their difficulty in fully 

complying with DEA import/export 

notification requirements as specified in 

21 CFR part 1313 by this deadline. DEA 

received correspondence from two 

national chemical associations and from 

one major chemical producer. 

Additionally, DEA received verbal 

communication from industry that 

expressed concerns regarding the large 

number of potentially affected mixtures 

and the difficulty industry was having 

in meeting deadlines for submitting 

import/export notification. After 

carefully considering the concerns 

expressed by industry, DEA has decided 

to postpone the implementation of the 

import/export notification requirements 

as specified in 21 CFR part 1313 until 

May 14, 2005. This temporary waiver 

shall apply only to chemical mixtures 

which became regulated under the 

December 15, 2004 final rule (69 FR 

74957). 

While the submission of import, 

export and transshipment information 

to DEA is an important provision in 

countering the potential diversion of 

these materials, this temporary waiver is 

being provided to allow industry ample 

time to ensure their full compliance 

with CSA import/export regulatory 

requirements as specified in 21 CFR part 

1313. As such, DEA will be temporarily 

waiving the requirement for regulated 

persons to submit advance notification 

for import, export and transshipment 

transactions for chemical mixtures 

which are regulated solely due to the 

presence of the 27 listed chemicals 

which were the subject of the December 

15, 2004 final rule. This temporary 

waiver applies only to import, export 

and transshipment notification 

requirements. All other chemical 

control requirements set forth in the 

final rulemaking published on 

December 15, 2004 (69 FR 74957) shall 

remain in full force and effect. 

The new deadline for providing 

import, export and transshipment 

notification for regulated chemical 

mixtures containing these 27 listed 

chemicals will be May 14, 2005. 

Provisions of December 15, 2004 Final 

Rule (69 FR 74957) Which Do Not 

Change 

For any person distributing, 

importing, or exporting any amount of 

a regulated mixture containing a List I 

chemical, the CSA requires that person 

to obtain a DEA registration. DEA 

recognizes that it is not possible for 

persons who are subject to the 

registration requirement to immediately 

complete and submit an application for 

registration and for DEA to immediately 

issue registrations for those activities. 

Therefore, in order to allow continued 

legitimate commerce in regulated 

mixtures, the December 15, 2004 final 

rule established a temporary exemption 

from the registration requirement (in 21 

CFR 1310.09) for persons desiring to 

engage in activities with regulated 

mixtures that are subject to registration 

requirements, provided that DEA 

receives a properly completed 

application for registration or an 

application for exemption (pursuant to 

21 CFR 1310.13) for their chemical 

mixture(s) on or before February 14, 

2005. The temporary exemption from 

registration for such persons will remain 

in effect until DEA takes final action on 

their application(s). 

Any person whose application for 

exemption is subsequently rejected by 

DEA must obtain a registration with 

DEA. A temporary exemption from the 

registration requirement will also be 

provided for these persons, if DEA 

receives a properly completed 

application for registration on or before 

30 days following the date of official 

DEA notification that the application for 

exemption has not been approved. The 

deadline for submission of an 

application for registration, or an 

application for exemption, remains 

February 14, 2005 in order to obtain the 

temporary exemption from registration. 

None of the temporary exemptions 

discussed in this rulemaking suspend 

applicable federal criminal laws relating 

to the regulated mixtures, nor does it 

supersede state or local laws or 

regulations. All handlers of a regulated