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Federal Register/Vol. 67, No. 49/Wednesday, March 13, 2002

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Federal Register/Vol. 67, No. 49/Wednesday, March 13, 2002 Federal Register / Vol. 67, No. 49 / Wednesday, March 13, 2002 / Rules and Regulations 11223 that the performance of the requirements of COMMODITY FUTURES TRADING and DTFs.1 In addition, Title II of the this AD is affected, the owner/operator must COMMISSION CFMA repeals the longstanding ban on request approval for an alternative method of single stock futures and directs the compliance in accordance with paragraph (e) 17 CFR Parts 37, 38, 41, and 155 Commission and the Securities and of this AD. The request should include an Exchange Commission (‘‘SEC’’) to assessment of the effect of the modification, RIN 3038–AB83 implement a joint regulatory framework alteration, or repair on the unsafe condition for security futures products. addressed by this AD; and, if you have not Regulation To Restrict Dual Trading in On July 11, 2001, the Commission eliminated the unsafe condition, specific Security Futures Products published proposed regulation 41.27 actions you propose to address it. AGENCY: Commodity Futures Trading (‘‘proposing release’’), which generally (f) Where can I get information about any Commission. restricts floor brokers from dual trading already-approved alternative methods of security futures products through open ACTION: Final rulemaking. compliance? Contact Gregory J. Michalik, outcry during the same trading session, Aerospace Engineer, FAA, Chicago ACO, SUMMARY: The Commodity Futures in accordance with the statutory 2300 East Devon Avenue, Des Plaines, IL Trading Commission (‘‘Commission’’) mandate of section 4j(a) of the Act, as 60018; telephone: (847) 294–7135; facsimile: hereby adopts regulation 41.27 that amended by section 251(c) of the 2 (847) 294–7834. restricts dual trading by floor brokers in CFMA. Section 4j(a), as amended, also (g) What if I need to fly the airplane to security futures products. Under the requires that the Commission permit another location to comply with this AD? The regulation, the dual trading restriction exceptions to the dual trading FAA can issue a special flight permit under affects floor brokers that trade security restriction in order to ensure fairness sections 21.197 and 21.199 of the Federal futures products through open outcry on and orderly trading in security futures 3 Aviation Regulations (14 CFR 21.197 and the trading floor of a designated contract product markets. Moreover, section 21.199) to operate your airplane to a location market (‘‘DCM’’) or registered 2(a)(D)(i) of the Act sets forth listing where you can accomplish the requirements derivatives transaction execution standards for security futures products of this AD provided you comply with the facility (‘‘DTF’’). The regulation traded on a DCM or DTF. In particular, following: provides for certain exceptions to the section 2(a)(D)(i)(VI) requires that (1) The aircraft is operated in Visual Flight restriction, including provisions for the security futures products be subject to Rules (VFR) conditions only; and correction of errors, customer consent, the dual trading restriction of section 4j (2) The aircraft is operated during daytime spread transactions, market of the Act and the regulations hours only. thereunder or section 11(a) of the emergencies, and unique or special (h) Are any service bulletins incorporated Securities Exchange Act of 1934 (‘‘ ’34 characteristics of an agreement, into this AD by reference? Actions required Act’’) and the regulations thereunder.4 by this AD must be done in accordance with contract, or transaction, or of the DCM Section 5f of the Act provides that any Ballistic Recovery Systems Inc. Service or DTF. board of trade that is registered with the Bulletin SBA 95–01, Issued: February 25, EFFECTIVE DATE: April 12, 2002. SEC as a national securities exchange or 2002, as specified in Cirrus Alert Service ADDRESSES: Commodity Futures Trading as a national securities association, or as Bulletin SBA 20–95–01, Issued: February 25, Commission, Three Lafayette Centre, an alternative trading system, shall be 2002, and Cirrus Alert Service Bulletin A22– 1155 21st Street, NW., Washington, DC considered a DCM in security futures 95–01, Issued: February 25, 2002. The 20581, Attention: Office of the products, provided that certain Director of the Federal Register approved this Secretariat. Comments may be sent by enumerated requirements are satisfied incorporation by reference under 5 U.S.C. facsimile transmission to (202) 418– upon filing a notice with the 552(a) and 1 CFR part 51. You can get copies 5521 or by e-mail to [email protected]. Commission. Section 5f(b)(1)(B), from Cirrus Design Corporation, 4515 Taylor Reference should be made to however, specifically exempts such Circle, Duluth, MN 55811; telephone: (218) ‘‘Restriction of Dual Trading in Security notice-registered entities from section 4j 727–2737; or electronically at the following Futures Products by Floor Brokers.’’ of the Act. Similarly, section 6(g) of the address: www.cirrusdesign.com/sb. You may FOR FURTHER INFORMATION CONTACT: ’34 Act, as amended by section 202(a) of view this information at FAA, Central Stephen Braverman, Associate Director, Region, Office of the Regional Counsel, 901 1 or Rachel Berdansky, Special Counsel, Appendix E of Pub. L. 106–554, 114 Stat. 2763 Locust, Room 506, Kansas City, Missouri, or (2000). Prior to its recent amendment, the Act at the Office of the Federal Register, 800 Division of Trading and Markets, referred to ‘‘designated contract markets’’ as North Capitol Street, NW., suite 700, Commodity Futures Trading Commission-approved products traded on a board Commission, Three Lafayette Centre, of trade. The Act, as amended, however, uses the Washington, DC. term ‘‘designated contract market’’ to refer to the (i) When does this amendment become 1155 21st Street, NW., Washington, DC approved or licensed market on which futures effective? This amendment becomes effective 20581, (202) 418–5490, Electronic mail: contracts and commodity options are traded. on March 19, 2002. [email protected] or Regulation 41.27 refers to DCMs in this sense. [email protected]. 2 See Proposed Regulation to Restrict Dual Issued in Kansas City, Missouri, on March Trading in Security Futures Products, 66 FR 36218. 5, 2002. SUPPLEMENTARY INFORMATION: 3 Section 4j of the Act, as amended, is different in scope than its predecessor and the Commission James E. Jackson, I. Introduction regulation promulgated thereunder. Commission Acting Manager, Small Airplane Directorate, On December 15, 2000, Congress regulation 155.5 restricted dual trading in any Aircraft Certification Service. contract market that exceeded certain volume passed the Commodity Futures thresholds unless an exchange requested, and the [FR Doc. 02–5703 Filed 3–12–02; 8:45 am] Modernization Act of 2000 (‘‘CFMA’’), Commission granted, a dual trading exemption. As BILLING CODE 4910–13–U which was signed by the President and part of this rulemaking, the Commission is became effective on December 21, 2000. removing regulation 155.5. 4 With certain enumerated exceptions, section Among other things, the CFMA, which 11(a)(1) of the ’34 Act and SEC rule 11a–1 make it substantially amended the Commodity unlawful for any member of a national securities Exchange Act (‘‘Act’’), establishes two exchange to effect any transaction for his or her own account, the account of an associated person, categories of markets subject to or an account with respect to which it or an Commission regulatory oversight, DCMs associated person has discretion. VerDate 11<MAY>2000 17:44 Mar 12, 2002 Jkt 197001 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\13MRR1.SGM pfrm07 PsN: 13MRR1 11224 Federal Register / Vol. 67, No. 49 / Wednesday, March 13, 2002 / Rules and Regulations the CFMA, provides that any board of an account in which such floor broker security futures product for his or her trade that has been designated as a has any interest.’’ 7 own account and non-customer contract market by the Commission or CBOT and NYBOT commented accounts enumerated under regulation has registered with the Commission as regarding the proposed definition of 41.27(a)(4)(i)–(v) during the same a DTF may register with the SEC as a ‘‘customer’’ in § 41.27(a)(4). NYBOT trading session. national securities exchange by filing commented that proposed Additionally, the Commission notice with the SEC solely for the § 41.27(a)(4)(iv) and (v) included two requested comment as to whether purposes of trading security futures categories of non-customer accounts, a accounts for clearing members other products, provided that certain house account for a floor broker’s than the house account of a floor enumerated requirements are satisfied. clearing member, and an account for broker’s clearing member and members DCMs and DTFs that notice register another member present on the floor of not present on the floor should be with the SEC for the purpose of trading a DCM or DTF or an account controlled considered non-customer accounts for security futures products are exempt by such other member, that were not the purpose of regulation 41.27(a)(4). By from section 11(a)(1) of the ’34 Act. considered non-customer accounts defining these accounts as non-customer under regulation 155.5.8 Specifically, accounts, a floor broker would be The Commission received four NYBOT believes that regulation 155.5 permitted to trade for these accounts comment letters on a variety of issues permitted a floor broker to trade security and the floor broker’s personal account regarding the proposing release.5 CME futures products for a
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