[Federal Register Volume 59, Number 143 (Wednesday, July 27, 1994)]
[Unknown Section]
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From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18159]
[[Page Unknown]]
[Federal Register: July 27, 1994]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 1
Risk Disclosure by Futures Commission Merchants, Introducing
Brokers, Commodity Pool Operators and Commodity Trading Advisors to
Customers
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
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SUMMARY: The Commodity Futures Trading Commission (``Commission'' or
``CFTC'') is amending Appendix A of CFTC rule 1.55(c) adopted by the
Commission on June 28, 1994, to identify the United Kingdom and Ireland
as additional jurisdictions whose relevant regulatory authorities have
adopted the generic risk disclosure statement for specified products.
This order is issued pursuant to the Commission's recent rulemaking
amending, among other provisions, CFTC rule 1.55(c), 59 FR 34376 (July
5, 1994), to permit registrants to deliver to customers a two-page
generic risk disclosure statement that may be used to satisfy the
CFTC's risk disclosure requirements applicable to domestic and foreign
commodity futures and commodity options, and which also is intended to
satisfy the risk disclosure requirements of certain foreign
jurisdictions. The Commission noted that it would on a periodic basis,
update the listing of those jurisdictions that accept the generic risk
disclosure document as meeting specified disclosure requirements.
EFFECTIVE DATE: July 27, 1994.
FOR FURTHER INFORMATION CONTACT: Jane C. Kang, Esq., Division of
Trading and Markets, Commodity Futures Trading Commission, 2033 K
Street, NW, Washington, D.C. 20581; telephone (202) 254-8955.
SUPPLEMENTARY INFORMATION:
Background
On June 28, 1994 the Commission amended rules 1.55(c), 33.7(a) and
190.10(c) to permit registrants to deliver to customers a generic risk
disclosure statement contained in new Appendix A of CFTC rule 1.55(c),
which satisfies risk disclosure statement requirements contained in
CFTC rules 1.55(b), 33.7(b) and 190.10(c) as well as the special
disclosure requirement related to futures-style margining of the
options premium permitted on certain foreign exchanges. As the generic
statement was developed in cooperation with various international
regulators and is intended to satisfy the risk disclosure requirements
of certain foreign jurisdictions who have implemented the language of
this risk disclosure statement in their jurisdictions in accordance
with their domestic law, Appendix A specifies those jurisdictions that
permit the use of the generic risk disclosure statement and the
products for which the statement may be used. The CFTC noted that it
would amend Appendix A on a periodic basis to provide updated
information in this regard.
Subsequent to the publication of the generic risk disclosure
statement in the Federal Register, the United Kingdom Securities and
Futures Authority (``SFA'') and the Central Bank of Ireland (``CBI'')
on July 11, 1994 confirmed the conclusion of applicable national
procedures to permit the statement to be used to satisfy relevant risk
disclosure obligations within their jurisdictions. The generic risk
disclosure statement addresses, in the case of members of the United
Kingdom SFA, commodity futures, options on commodity futures, options
on commodities and options on securities, and in the case of members of
exchanges whose rules have been approved by the CBI, financial futures
and options on financial futures. Accordingly, the CFTC is amending
Appendix A to reflect the addition of the United Kingdom and Republic
of Ireland as jurisdictions in which the generic risk disclosure
statement may be used to satisfy relevant risk disclosure requirements
for the products specified.
Finally, the Commission is clarifying the entry for the United
States in Appendix A to conform the text in the entry to the text of
the Federal Register preamble.
List of Subjects in 17 CFR Part 1
Commodity futures, Domestic exchange-traded commodity option
transactions.
Accordingly, 17 CFR Part 1 is amended as set forth below:
PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT
1. 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,
6g, 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.
2. Appendix A to Sec. 1.55(c) is amended by revising the entry for
the ``United States'' which follows the text of the generic risk
disclosure statement to read as set forth below, and by adding the
following entries, after the ``United States'' entry:
Sec. 1.55 Distribution of ``Risk Disclosure Statement'' by futures
commission merchants and introducing brokers.
* * * * *
(c) * * *
Appendix A to CFTC Rule 1.55(c)--Generic Risk Disclosure Statement
Risk Disclosure Statement for Futures and Options.
* * * * *
United States: commodity futures, options on commodity futures
and options on commodities subject to the Commodity Exchange Act.
United Kingdom: futures, options on futures, options on
commodities and options on equities traded by members of the United
Kingdom Securities and Futures Authority pursuant to the Financial
Services Act, 1986.
Ireland: financial futures and options on financial futures
traded by members of futures exchanges on exchanges whose rules have
been approved by the Central Bank of Ireland under Chapter VIII of
the Central Bank Act, 1989.
* * * * *
Issued in Washington, D.C. on July 20, 1994 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 94-18159 Filed 7-26-94; 8:45 am]
BILLING CODE 6351-01-P
