[Federal Register Volume 60, Number 29 (Monday, February 13, 1995)]
[Rules and Regulations]
[Pages 8194-8195]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3455]



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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 140


Delegation of Authority to the Director of the Division of 
Trading and Markets

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rules.

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SUMMARY: The Commodity Futures Trading Commission (``Commission'') is 
delegating to the Director of the Division of Trading and Markets, and 
to such members of the Commission staff acting under the Director's 
direction as the Director may designate from time to time, the 
authority to perform all functions reserved to the Commission under the 
recently adopted risk assessment requirements for holding company 
systems in Secs. 1.14 and 1.15 of the Commission's regulations. The 
delegation should result in more expeditious treatment of exemption 
requests, which will benefit futures commission merchants (``FCMs'') 
and the Commission.

EFFECTIVE DATE: February 13, 1995.

FOR FURTHER INFORMATION CONTACT: Lawrence T. Eckert, Attorney Adviser, 
Division of Trading and Markets, Commodity Futures Trading Commission, 
2033 K Street N.W., Washington D.C. 20581. Telephone (202) 254-8955.

SUPPLEMENTARY INFORMATION:

I. Delegation

    On December 21, 1994, the Commission adopted Rules 1.14 and 1.15 to 
implement the risk assessment authority set forth in Section 4f(c) of 
the Commodity Exchange Act.\1\ These rules generally require FCMs that 
are subject to the rules to maintain and file with the Commission 
certain information concerning their financial activities and the 
activities of their material affiliates.

    \1\59 FR 66674 (December 28, 1994).
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    In promulgating the risk assessment rules, and at the suggestion of 
commenters on the proposed rules, the Commission reserved, in Rules 
1.14(d)(3) and 1.15(c)(3), the authority to exempt any FCM from any of 
the provisions of either Rule 1.14 or Rule 1.15 if the Commission finds 
that the exemption is not contrary to the public interest and the 
purposes of the provisions from which the exemption is sought. 
Additionally, the rules permit the Commission to exempt an FCM 
affiliated with a ``Reporting Futures Commission Merchant'' from the 
recordkeeping and reporting requirements of the rules, and permit the 
Commission to request information to supplement an FCM's filings with 
the Commission if the Commission determines that additional information 
is necessary for a complete understanding of a particular affiliate's 
financial impact on the FCM's organizational structure.\2\

    \2\Rules 1.14(d)(2), 1.15(c)(2) and 1.15(a)(2)(iii). For a 
complete discussion of the recently adopted risk assessment rules, 
see 59 FR 66674.
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    The Commission has determined to codify in Part 140 the delegation 
of its authority under the risk assessment rules to the Director of the 
Division of Trading and Markets.\3\ Accordingly, the Commission is 
hereby amending its delegation of authority to the Director of the 
Division of Trading and Markets set forth in Rule 140.91, which 
currently governs authority to perform functions on behalf of the 
Commission with respect to the minimum financial and related reporting 
requirements for FCMs and introducing brokers under Rules 1.10, 1.12, 
1.16 and 1.17, by adding to it the authority to act on behalf of the 
Commission with respect to all functions reserved to the Commission 
under Rules 1.14 and 1.15. The Commission further notes that paragraph 
(b) of Rule 140.91 will continue to provide that the Director may 
submit any matter delegated under the rule to the Commission for its 
consideration.

    \3\See 59 FR 66674, at 66682, n.35 (Director of Division of 
Trading and Markets is generally delegated the authority to act on 
behalf of the Commission with respect to the risk assessment rules).
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II. Related Matters

A. Administrative Procedure Act

    The Commission has determined that this delegation of authority 
relates solely to agency organization, procedure and practice. 
Therefore, the provisions of the Administrative Procedure Act, 5 U.S.C. 
553, which generally require notice of proposed rule making and which 
provide other opportunities for public participation, are not 
applicable. The Commission further finds that, because the rule has no 
adverse effect upon a member of the public, there is good cause to make 
it effective immediately upon publication in the Federal Register. 
[[Page 8195]] 

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA), 5 U.S.C. 601-611 (1988), 
requires that agencies, in proposing rules, consider the impact of 
those rules on small businesses. The rules discussed herein are only an 
administrative delegation and will have no impact on registered 
entities. Even if these rules were deemed to affect FCMs, the 
Commission already has established certain definitions of ``small 
entities'' to be used by the Commission in evaluating the impact of its 
rules on such small entities in accordance with the RFA and FCMs have 
been determined not to be small entities under the RFA.\4\ Accordingly, 
the Chairman, on behalf of the Commission, hereby certifies, pursuant 
to 5 U.S.C. 605(b), that these rule amendments will not have a 
significant impact on a substantial number of smaller entities.

    \4\47 FR 18618-18621 (April 30, 1982).
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List of Subjects in 17 CFR Part 140

    Authority delegations (Government agencies).

    In consideration of the foregoing, and pursuant to the authority 
contained in the Commodity Exchange Act, and, in particular, sections 
2a and 8a, 7 U.S.C. 4a and 12a, the Commission is amending part 140 of 
Chapter I of Title 17 of the Code of Federal Regulations as follows:

PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION

    1. The authority citation for Part 140 continues to read as 
follows:

    Authority: 7 U.S.C. 4a and 12a.
    2. Section 140.91 is amended by redesignating paragraphs (a)(3) and 
(a)(4) as (a)(5) and (a)(6) and by adding new paragraphs (a)(3) and 
(a)(4) to read as follows:


Sec. 140.91  Delegation of authority to the Director of the Division of 
Trading and Markets.

    (a) * * *
    (3) All functions reserved to the Commission in Sec. 1.14 of this 
chapter;
    (4) All functions reserved to the Commission in Sec. 1.15 of this 
chapter;
* * * * *
    Issued in Washington, D.C. on February 7, 1995, by the 
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 95-3455 Filed 2-10-95; 8:45 am]
BILLING CODE 6351-01-U