[Federal Register Volume 60, Number 50 (Wednesday, March 15, 1995)]
[Rules and Regulations]
[Pages 13901-13902]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-6212]



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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 1


Risk Assessment for Holding Company Systems; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Correction to final rules.

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SUMMARY: This document contains a correction to the final rules which 
were published Wednesday, December 28, 1994 (59 FR 66674). The rules 
implemented the risk assessment authority set forth in Section 4f(c) of 
the Commodity Exchange Act and imposed reporting and recordkeeping 
requirements for certain registered futures commission merchants 
(``FCMs'').

EFFECTIVE DATE: March 15, 1995.

FOR FURTHER INFORMATION CONTACT: Lawrence B. Patent, Associate Chief 
Counsel, or 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:

Background

    On December 28, 1994, the Commission published notice of the 
adoption of Rules 1.14 and 1.15 to implement the risk assessment 
authority set forth in Section 4f(c) of the Commodity Exchange Act. The 
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.
    Rule 1.15(a)(1) required that each FCM subject to the rule file 
copies of its organizational chart and financial, operational and risk 
management policies, procedures and systems ``with the regional office 
with which it files periodic financial reports and with its designated 
self-regulatory organization * * *'' Rule 1.15(a)(2), however, required 
that an FCM's consolidated and consolidating financial statements be 
filed only with ``the regional office with which [the FCM] files 
periodic financial reports * * *'' The inclusion of a filing 
requirement with the FCM's designated self-regulatory organization 
(``DSRO'') in Rule 1.15(a)(1) was inadvertent and is at odds with the 
Commission's intent as discussed in the preamble to the Federal 
Register release accompanying the risk assessment rules. In discussing 
the degree of confidentiality to be afforded information filed by FCMs 
with the Commission under the risk assessment rules, and in particular 
the issue of whether risk assessment information should be made 
available to self-regulatory organizations, the Commission stated that 
``[t]he Commission recognizes the sensitivity of certain information 
required to be reported under these rules [and] * * * plans to make the 
information reported to it available only on an as-needed basis, as 
determined in its sole discretion.''<SUP>1 Because the inclusion of a 
requirement that FCMs file certain information with their DSROs was not 
intended, the Commission is publishing this notice deleting from Rule 
1.15(a)(1) and (a)(4) the references to a filing requirement with FCMs' 
DSROs.

    \1\59 FR 66674, 66687 (December 28, 1994).
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Need for Correction

    As published, the final rules contain errors which may prove to be 
misleading and are in need of clarification.

List of Subjects in 17 CFR Part 1

    Commodity futures consumer protection, Reporting and recordkeeping 
requirements.

Correction of Publication

    Accordingly, the publication on December 28, 1994 of the final 
rules (59 FR 66674) which were the subject of FR Doc. 94-31828, is 
corrected as follows:

PART 1--[CORRECTED]

    On pages 66690 and 66691 paragraphs (a)(1) introductory text and 
(a)(4) of Sec. 1.15 are corrected to read as follows:


Sec. 1.15   Risk assessment reporting requirements for futures 
commission merchants.

    (a) Reporting requirements with respect to information required to 
be maintained by Sec. 1.14. (1) Each futures commission merchant 
registered with the Commission pursuant to Section 4d of the Act, 
unless exempt pursuant to paragraph (c) of this section, shall file the 
following with the regional office with which it files periodic 
financial reports by no later than April 30, 1995, provided that in the 
case of a futures commission merchant whose registration becomes 
effective after December 31, 1994, such futures commission merchant 
shall file the following within 60 calendar days after the effective 
date of such registration, or by April 30, 1995, whichever comes later:
* * * * * [[Page 13902]] 
    (4) The reports required to be filed pursuant to paragraphs (a)(1) 
and (a)(2) of this section shall be considered filed when received by 
the regional office of the Commission with whom the futures commission 
files financial reports pursuant to Sec. 1.10.
* * * * *
    Issued in Washington, D.C. on March 8, 1995, by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 95-6212 Filed 3-14-95; 8:45 am]
BILLING CODE 6351-01-P