65236 Federal Register / Vol. 60, No. 243 / Tuesday, December 19, 1995 / Rules and Regulations

1See 56 FR 66345 (December 23, 1991).

2See 55 FR 23902 (June 13, 1990). Among other

things, this arrangement provides a mechanism

pursuant to which certain option products traded

on the Marche a Terme International de France

(MATIF) may be offered or sold to customers

resident in the United States thirty days after

publication in the Federal Register of a notice

specifying the particular option contracts to be

offered or sold.

3Commission rule 30.3(a), 17 CFR 30.3(a), makes

it unlawful for any person to engage in the offer or

sale of a foreign option product until the

Commission, by order, authorizes such foreign

option to be offered or sold in the United States.

4See letter dated October 24, 1995 from Catherine

Langlais, MATIF, to Jane C. Kang, Esq., Division of

Trading and Markets. See also letter dated

November 6, 1995 from Frederic Perier,

Commission des Operations de Bourse, to Andrea

M. Corcoran, Director, Division of Trading and

Markets.

(f) * * *

(5) * * *

(ii) Unofficial activities. The delegated

State or personnel employed by the

State shall not perform any unofficial

service that is the same as any of the

official services covered by the

delegation.

5. Section 800.196(g)(6)(ii) is revised

to read as follows:

§ 800.196 Delegations

* * * * *

(g) * * *

(6) * * *

(ii) Unofficial activities. The agency or

personnel employed by the agency shall

not perform any unofficial service that

is the same as the official services

covered by the designation.

* * * * *

Dated: December 8, 1995.

James R. Baker,

Administrator.

[FR Doc. 95–30593 Filed 12–18–95; 8:45 am]

BILLING CODE 3410–EN–M

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 30

Foreign Option Transactions

AGENCY: Commodity Futures Trading

Commission.

ACTION: Order.

SUMMARY: The Commodity Futures

Trading Commission (Commission) is

issuing this Order pursuant to which

Option Contracts on a spot foreign

exchange operation between the

Deutsche Mark and the French Franc

(DEM/FRF) traded on the Marche a

Terme International de France (MATIF)

may be offered or sold to persons

located in the United States. This Order

makes it unlawful for any person to

engage in the offer or sale of a foreign

option product until the Commission,

by order, authorizes such foreign option

to be offered or sold in the United States

and the procedures established by the

Mutual Recognition Memorandum of

Understanding (MRMOU) with the

French Commission des Operations de

Bourse.

EFFECTIVE DATE: January 18, 1996.

FOR FURTHER INFORMATION CONTACT:

Warren R. Gorlick, Esq., Division of

Trading and Markets, Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street N.W.,

Washington, D.C. 20581. Telephone:

(202) 418–5435.

SUPPLEMENTARY INFORMATION: The

Commission has issued the following

Order:

United States of America Before the

Commodity Futures Trading

Commission

Order Pursuant to the Mutual Recognition

Memorandum of Understanding with the

French Commission des Operations de

Bourse and Rule 30.3(a) Permitting Option

Contracts on the DEM/FRF Traded on the

Marche a Terme International de France

(MATIF) to Be Offered or Sold to Persons

Located in the United States Thirty Days

After Publication of This Notice in the

Federal Register Absent Further Notice

By Order issued on December 17,

1991 (Initial Order) 1, the Commission

authorized, pursuant to the Mutual

Recognition Memorandum of

Understanding (MRMOU) 2 and

Commission rule 30.3(a),3 certain option

products traded on the MATIF to be

offered or sold in the United States.

By letter dated October 24, 1995,

MATIF notified the Commission that on

October 23, 1995 it would be

introducing Option Contracts based on

the DEM/FRF and requested that the

Commission supplement its Initial

Order authorizing the offer and sale in

the United States of Options on the

Notional Bond, the 3-month PIBOR, the

3-month EURODEM Futures Contracts;

a Supplemental Order, 57 FR 10987

(April 1, 1992), authorizing the offer and

sale in the United States of Options on

the Long-Term ECU Bond Futures

Contracts; a Supplemental Order, 59 FR

22971 (May 4, 1994), authorizing the

offer and sale in the United States of

Options on the USD/DEM and USD/

FRF; and a Supplemental Order, 60 FR

34458 (July 3, 1995), authorizing the

offer and sale in the United States of

Options on the GBP/DEM and the DEM/

ITL by also authorizing the MATIF’s

Option Contracts on the DEM/FRF to be

offered or sold to persons located in the

United States.4 Based upon the

foregoing, and pursuant to the terms of

the MRMOU, the Commission hereby

publishes this Order in the Federal

Register pursuant to which the

particular Option Contracts specified

herein may be offered or sold thirty days

after the publication of this Order.

Accordingly, pursuant to Commission

rule 30.3(a), 17 CFR 30.3(a), and Article

II, paragraph 6(b) and Article V,

paragraph 6 of the MRMOU signed by

the Commission on June 6, 1990 (55 FR

23902 (June 13, 1990)), and subject to

the terms and conditions specified in

the MRMOU, the Commission hereby

issues this Order pursuant to which

Option Contracts based on the DEM/

FRF traded on the MATIF may be

offered or sold to persons located in the

United States thirty days after

publication of this Order in the Federal

Register, unless prior to that date the

Commission receives any comments

which may result in a determination to

delay the effective date of the Order

pending review of such comments.

Under such circumstances the

Commission will provide notice.

Contract Specifications

DEM/FRF Option

Type

European style

Underlying Interest

Spot currency transaction DEM against

FRF

Contract Size

DEM 100,000

Strike Price

Expressed in FRF, with 2 decimals.

Strike price intervals: 1 Centime (3.40–

3.41)

Quotation

Premium in % of the DEM nominal,

with 2 decimals.

Ex: 0.45% stands for 100,000 × 0.45/100

= DEM 450.

In specific cases, premium with 3

decimals.

Tick

Size: 0.01%

Value: 0.01/100 × 100,000 = DEM 10

Expiration

3 monthly + 3 quarterly expirations

from March (H), June (M),

September (U), December (Z)

Last Trading Day

Thursday following the 3rd Wednesday

of expiration month at 9:00 am

(New York time)
Federal Register / Vol. 60, No. 243 / Tuesday, December 19, 1995 / Rules and Regulations 65237

First Trading Day

First business day following an

expiration date

Exercise

After settlement of a spot-fixing on the

expiration date, automatic exercise

of in-the-money options.

Exercise: exchange of underlying

currencies

Trading Hours

Open outcry: 9:15 am to 5:00 pm (Paris

time)

THS (after hours trading): 5:00 pm to

9:15 am

List of Subjects in 17 CFR Part 30

Commodity futures, Commodity

options, Foreign transactions.

Accordingly, 17 CFR part 30 is

amended as set forth below:

PART 30—FOREIGN FUTURES AND

FOREIGN OPTION TRANSACTIONS

1. The authority citation for part 30

continues to read as follows:

Authority: Secs. 2(a)(1)(A), 4, 4c, and 8a of

the Commodity Exchange Act, 7 U.S.C. 2, 6,

6c and 12a.

2. Appendix B to part 30 is amended

by adding the following entry after the

existing entries for the ‘‘Marche a Terme

International de France’’ to read as

follows:

Appendix B to Part 30—Option

Contracts Permitted to be Offered or

Sold in the U.S. Pursuant to § 30.3(a)

Exchange Type of contract FR date and citation

Marche a Terme International de France ......... Option Contracts on the Deutsche Mark and

the French Franc (DEM/FRF).

December 19, 1995; 60 FR 65237

* * * * * * *

Issued in Washington, D.C. on December 6,

1995.

Jean A. Webb,

Secretary to the Commission.

[FR Doc. 95–30361 Filed 12–18–95; 8:45 am]

BILLING CODE 6351–01–P

DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[TD 8634]

RIN 1545–AT12

Withholding on Distributions of Indian

Gaming Profits to Tribal Members

AGENCY: Internal Revenue Service (IRS),

Treasury.

ACTION: Final regulations.

SUMMARY: This document contains final

regulations relating to the income tax

withholding requirement on

distributions of profits from certain

gaming activities made to members of

Indian tribes under section 3402(r) of

the Internal Revenue Code of 1986.

Those affected by the regulations are

persons, including Indian tribes, making

payments to members of Indian tribes

from net revenues of certain gaming

activities conducted or licensed by the

tribes. Also affected are members of

Indian tribes who receive the payments.

DATES: These regulations are effective

December 19, 1995.

For date of applicability, see

§ 31.3402(r)–1(b).

FOR FURTHER INFORMATION CONTACT:

Rebecca Wilson (202) 622–6040 (not a

toll-free number).

SUPPLEMENTARY INFORMATION:

Background

This document contains amendments

to the Employment Tax Regulations (26

CFR part 31) under section 3402(r).

Section 3402(r) was added by section

701 of the Uruguay Round Agreements

Act, which approved the trade

agreements resulting from the Uruguay

Round of multilateral trade negotiations

under the auspices of the General

Agreement on Tariffs and Trade (GATT)

and the Statement of Administrative

Action to implement the Agreements.

On December 22, 1994, temporary

regulations (TD 8574) relating to

withholding on distributions of Indian

gaming profits to tribal members under

section 3402(r) were published in the

Federal Register (59 FR 65939). A

notice of proposed rulemaking (EE–60–

94) cross-referencing the temporary

regulations was published in the

Federal Register for the same day (59

FR 65982). No public hearing was

requested or held.

Also on December 22, 1994, the IRS

mailed a copy of Notice 1026, providing

withholding tables for use in 1995, to

Indian tribes and gaming establishments

listed with the National Indian Gaming

Commission. For 1996 and subsequent

years, tables will be printed in a

supplement to Circular E.

The IRS received written comments

responding to the notice of proposed

rulemaking. After consideration of the

comments, the regulations proposed by

EE–60–94 are adopted as revised by this

Treasury decision, and the

corresponding temporary regulations are

withdrawn. The regulations contain no

substantive changes.

Explanation of Provisions

1. Indian Gaming Regulatory Act. Net

revenue from certain gaming activities

conducted or licensed by an Indian tribe

may be used to make taxable

distributions to members of the Indian

tribe. The tribe must notify its members

of the tax liability at the time the

payments are made. 25 U.S.C. 2710

(b)(3) and (d)(1).

2. Prior law. Prior to the addition of

section 3402(r) in 1994, a tribe was not

required to withhold on these

distributions to tribal members except to

the extent backup withholding rules

applied under section 3406.

3. Code section 3402(r). Section

3402(r) generally requires that, for

payments made after December 31,

1994, persons, including Indian tribes,

making payments to members of Indian

tribes from the net revenues of certain

gaming activities conducted or licensed

by the tribes deduct and withhold

income taxes from those payments.

Section 3402(r) provides that the

withholding amount be calculated

assuming that the taxpayer is single and

has one exemption.

4. Legislative history. The legislative

history of section 3402(r) indicates that

the goal of the new withholding

requirement was to make it easier for

tribal members who receive gaming

distributions to meet their tax

responsibilities:

Distributions of net revenues from gaming

activity by an Indian tribe may result in

significant tax liability to the tribe’s

members. Establishing withholding on such

payments will more closely match estimated

tax payments to ultimate tax liability. For

some tribal members, this change may

eliminate the need to make quarterly