Changes in Divisional Structure and Delegations of Authority

AGENCY:

Commodity Futures Trading Commission.

ACTION:

Final rules.

SUMMARY:

The Commission is amending its rules to reflect the reassignment of responsibilities, including delegations of authority, resulting from its recent reorganization of Commission staff. Effective July 1, 2002, the Commission reassigned the responsibilities of the former Division of Trading and Markets and Division of Economic Analysis to the newly established Division of Clearing and Intermediary Oversight, Division of Market Oversight and Office of the Chief Economist. The reorganized divisions will more effectively implement the provisions of the Commodity Futures Modernization Act of 2000 (CFMA).

EFFECTIVE DATE:

October 7, 2002.

FOR FURTHER INFORMATION CONTACT:

Paul M. Architzel, Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. Telephone 202-418-5260. E-mail: [parchitzel@cftc.gov].

SUPPLEMENTARY INFORMATION:

On December 21, 2000, the President signed into law the Commodity Futures Modernization Act of 2000 (“CFMA”) which extensively revises the Commodity Exchange Act (Act) In order to more effectively implement its provisions, the Commission has reorganized its operating divisions. Under the reorganized structure, the Division of Trading and Markets and the Division of Economic Analysis (the former divisions) has been reconfigured into two new divisions, the Division of Clearing and Intermediary Oversight and the Division of Market Oversight (the new divisions), and the Office of the Chief Economist.

The Commission is amending several of its rules in Chapter I of Title 17 of the Code of Federal Regulations to reflect this reorganized structure. Accordingly, as indicated in the chart below, the Commission is deleting from its rules references to the former divisions and replacing them with references to the new divisions. As amended, the rules will reflect the new assignments of responsibilities, including delegated authorities, to the two new divisions.

The Commission is also amending rule 140.99, which governs requests for exemptive, no-action and interpretative letters. Before its amendment, rule 140.99 required all requests to be filed with the Division of Trading and Markets, and thereafter routed to the appropriate office or division. The Commission has determined that it will be more efficient to require the requester to file the request directly with the division with operating responsibility for administering the provision of the Act or of the Commission's regulations from which relief is sought. Accordingly, the Commission is amending rule 140.99 to require that requests relating to certain specific subject matter areas (as enumerated in the amended rule) be filed with the division with operating responsibility for that subject matter area.

The Commission is deleting rule 140.100 which it adopted on July 9, 2002, 67 FR 45299. That rule provided that all delegations of authority from the Commission to the Directors of the former divisions, and their respective designees, as set forth in Chapter I of Title 17 of the Code of Federal Regulations, were delegated jointly to the respective Directors of the new divisions, and their respective designees. Now that the Commission has amended several of its rules to reflect the new agency structure, rule 140.100 is no longer necessary. Finally, the Commission is removing and reserving rules 1.41a, 1.41c and 1.42, which have been superseded by the CFMA

Related Matters

Administrative Procedure Act

The Commission has determined that restructuring of responsibilities, including delegations of authority, relates solely to agency organization, procedure and practice. Therefore, the provisions of the Administrative Procedure Act that generally require notice of proposed rulemaking and that provide other opportunities for public participation are not applicable. The Commission further finds that, because the rules have no adverse effect upon a member of the public, there is good cause to make them effective immediately upon publication in the Federal Register.

List of Subjects

17 CFR Part 1

• Brokers
• Commodity futures
• Reporting and recordkeeping requirements

17 CFR Part 140

• Authority delegations (Government agencies)
• Organization and functions (Government agencies)

In consideration of the foregoing, and pursuant to the authority contained in the Act, and in particular section 2(a)(11) of the Act, 7 U.S.C. 2(a)(11), as amended, the Commission hereby amends Parts 1, 3, 4, 9, 11, 16, 17, 18, 19, 21, 31, 36, 37, 38, 39, 40, 41, 140, 145, 150, 170, 171, and 190 of Chapter I of Title 17 of the Code of Federal Regulations as follows:

17 CFR Parts 1, 3, 4, 9, 11, 16, 17, 18, 19, 21, 31, 36, 37, 38, 39, 40, 41, 140, 145, 150, 170, 171 and 190

1. In the table below, for each section indicated in the left column, remove the words indicated in the middle column from wherever they appear in the section, and add the words indicated in the right column:

PART 1—GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT

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

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

3. Sections 1.4a, 1.41c, and 1.42 are removed and reserved.

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

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

Authority: 7 U.S.C. 2 and 12a.

5. Section 140.99 is amended by revising paragraph (d)(2) to read as follows:

6. Section 140.100 is removed.