[Federal Register Volume 63, Number 189 (Wednesday, September 30, 1998)]
[Rules and Regulations]
[Pages 52156-52157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-26078]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 1
Distribution of Risk Disclosure Statements by Futures Commission
Merchants and Introducing Brokers; Correction
AGENCY: Commodity Futures Trading Commission.
ACTION: Correcting amendment.
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SUMMARY: This document contains corrections to the final rules
published in the Federal Register of Friday, February 20, 1998 (63 FR
8566). These final rules amended requirements of the Commodity Futures
Trading Commission (``Commission'') related to risk disclosures that
must be provided by future commission merchants (``FCMs'') and
introducing brokers (``IBs'') to customers.
DATES: Effective on April 21, 1998.
FOR FURTHER INFORMATION CONTACT: Thomas E. Joseph, Attorney Adviser,
Division of Trading and Markets, Commodity Futures Trading Commission,
1155 21st Street, N.W., Washington, D.C. 20581. Telephone (202) 418-
5430.
SUPPLEMENTARY INFORMATION:
Background
The final rules that are the subject of this correction amended the
Commission's disclosure requirements in order to relieve FCMs and IBs
of the obligations to provide certain specifically defined customers
with Commission-mandated risk disclosure statements and to receive from
such customers a signed acknowledgement of receipt of such statements.
Need for Correction
The instructions to revise Rule 1.55 did not contain a reference to
the ``introductory text'' of paragraph (a)(1) of that section when they
were published in the Federal Register on February 20, 1998. As a
result, 17 CFR 1.55(a)(1) (1998) fails to include language that the
Commission did not intend to amend or remove by the February 1998 rule
change. This
[[Page 52157]]
correcting amendment provides the complete language for 17 CFR
1.55(a)(1).
List of Subjects in 17 CFR Part 1
Commodity futures, Customer protection, Risk disclosure statements.
Accordingly, 17 CFR Part 1 is corrected by making the following
correcting amendment:
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, 8, 9, 12, 12a, 12c,
13a, 13a-1, 16, 16a, 19, 21, 23, 24.
2. In Sec. 1.55, paragraph (a)(1) should be correctly revised to
read as follows:
Sec. 1.55 Distribution of ``Risk Disclosure Statement'' by futures
commission merchants and introducing brokers.
(a)(1) Except as provided in 1.65, no futures commission merchant,
or in the case of an introduced account no introducing broker, may open
a commodity futures account for a customer, other than for a customer
specified in paragraph (f) of this section, unless the futures
commission merchant or introducing broker first:
(i) Furnishes the customer with a separate written disclosure
statement containing only the language set forth in paragraph (b) of
this section (except for nonsubstantive additions such as captions) or
as otherwise approved under paragraph (c) of this section; Provided,
however, that the disclosure statement may be attached to other
documents as the cover page or the first page of such documents and as
the only material on such page; and
(ii) Receives from the customer an acknowledgment signed and dated
by the customer that he received and understood the disclosure
statement.
* * * * *
Issued in Washington, D.C. on September 24, 1998 by the
Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 98-26078 Filed 9-29-98; 8:45 am]
BILLING CODE 6351-01-M
