[Federal Register: August 2, 2006 (Volume 71, Number 148)]
[Proposed Rules]
[Page 43681]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr02au06-20]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 38
RIN 3038-AC28
Conflicts of Interest in Self-Regulation and Self-Regulatory
Organizations
AGENCY: Commodity Futures Trading Commission (``Commission'').
ACTION: Extension of comment period.
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SUMMARY: On July 7, 2006, the Commission published proposed Acceptable
Practices for section 5(d)(15) of the Commodity Exchange Act
(``Act'').\1\ Comments on the proposal were originally due by August 7,
2006. Now, at the request of interested parties, the Commission is
extending the comment period to September 7, 2006.
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\1\ 71 FR 38740 (July 7, 2006).
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DATES: Comments must be received by September 7, 2006.
ADDRESSES: Written comments should be sent to Eileen A. Donovan, Acting
Secretary, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street, NW., Washington, DC 20581. Comments may also
be submitted via E-mail at secretary@cftc.gov. ``Regulatory
Governance'' must be in the subject field of responses submitted via E-
mail, and clearly indicated in written submissions. Comments may also
be submitted to the Federal eRulemaking Portal: http://www.regulations.gov
.
FOR FURTHER INFORMATION CONTACT: Rachel F. Berdansky, Acting Deputy
Director for Market Compliance, (202) 418-5429; or Sebastian Pujol
Schott, Special Counsel, (202) 418-5641. Division of Market Oversight,
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street, NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION: On July 7, 2006, the Commission published
and sought public comment on proposed Acceptable Practices for Section
5(d)(15) of the Act (``Core Principle 15''). The proposed Acceptable
Practices would provide designated contract markets (``DCMs'') with a
safe harbor for compliance with selected aspects of Core Principle 15's
requirement that they minimize conflicts of interest in their decision-
making. The Commission's proposal contains four parts. First, the Board
Composition Acceptable Practice proposes that DCMs minimize potential
conflicts of interest by maintaining governing boards composed of at
least fifty percent ``public'' directors. Second, the proposed
Regulatory Oversight Committee Acceptable Practice calls upon DCMs to
establish board-level Regulatory Oversight Committees, composed solely
of public directors, to oversee regulatory functions. Third, the
Disciplinary Panel Acceptable Practice proposes that each disciplinary
panel at all DCMs include at least one public participant, and that no
panel be dominated by any group or class of exchange members. Finally,
the proposed Acceptable Practices provide a definition of ``public''
for DCM directors and for members of disciplinary panels.
By letters dated July 14 and July 17, 2006, the Chicago Board of
Trade (``CBOT'') and Chicago Mercantile Exchange (``CME''),
respectively, requested that the original comment period be extended.
CBOT requested an extension to at least September 6, and CME requested
an extension to at least September 7. Recognizing the significance of
the issues raised in the proposed Acceptable Practices, and to
encourage the submission of meaningful comments, the Commission has
decided to grant the requests. The comment period for the Commission's
proposed Acceptable Practices for Section 5(d)(15) of the Act is hereby
extended to September 7, 2006.
Issued in Washington, DC, on July 28, 2006, by the Commission.
Maria C. Alvarez-Kouns,
Paralegal Specialist.
[FR Doc. E6-12448 Filed 8-1-06; 8:45 am]
BILLING CODE 6351-01-P