Reports by Futures Commission Merchants, Members of Contract Markets and Foreign Brokers

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 17

Reports by Futures Commission Merchants, Members of Contract

Markets and Foreign Brokers

AGENCY: Commodity Futures Trading Commission.

ACTION: Proposed rulemaking.

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SUMMARY: The Commodity Futures Trading Commission (``Commission'' or

``CFTC'') is proposing to amend Rule 17.01 and to modify the Form 102

required to be filed by clearing members, futures commission merchants

(FCMs) and foreign brokers. This form identifies persons having

financial interest in, or control of, special accounts in futures and

options. The proposed amendments clarify the information required on

the Form 102 for various kinds of special accounts reported to the

Commission. The Commission is also proposing to amend Rule 17.02

concerning the time in which a completed Form 102 must be filed. The

proposed rules would require that certain specified identification

information be provided on the first day that a special account is

reported to the Commission and that a completed Form 102 be filed with

the Commission within three business days of that date.

EFFECTIVE DATE: Comments must be received by August 15, 1995.

ADDRESSES: Comments should be sent to the Office of the Secretariat,

Commodity Futures Trading Commission, 2033 K Street NW., Washington, DC

20581 and should make reference to ``Form 102 changes.''

FOR FURTHER INFORMATION CONTACT: Lamont L. Reese, Supervisory

Statistician, Division of Economic Analysis, Commodity Futures Trading

Commission, 2033 K Street NW., Washington, DC 20581, (202) 254-3310.

SUPPLEMENTARY INFORMATION: Part 17 of the Commission's regulations

requires that FCMs, clearing members, and foreign brokers (``firms'')

submit a daily report to the Commission with respect to futures

positions in all special accounts on their books.1 Information

required to be provided to the Commission includes quantities of

reportable futures positions, exchanges of futures for cash, and

delivery notices issued or stopped by each special account.2 For

reporting purposes, futures positions in all accounts controlled by the

same person and those in which a person has a 10 percent or more

financial interest must be combined and treated as if they are held in

a single account. The firm assigns a reporting number to the special

account and reports all information to the Commission using this

number.3

\1\Special account means any commodity futures or option account

in which there is a reportable position, 17 CFR 15.00 (1994). Firms

report futures information to the Commission and option information

to the exchanges.

\2\A reportable position is any open position held or controlled

by a trader at the close of business in any one futures contract of

a commodity traded on any one contract market that is equal to or in

excess of the quantities fixed by the Commission in Sec. 15.03 of

the regulations, 17 CFR 15.03 (1994).

\3\The firm's reporting number may be the account number carried

on its books. However, as noted above, the number may refer to a

collection of accounts that are owned and/or controlled by the same

person.

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In addition to the reporting number and the position and

transaction information mentioned above, the firm must file a CFTC Form

102 showing the information specified under Sec. 17.01 of the

regulations for each special

[[Page 31654]]

account.4 This information identifies persons who have a financial

interest in or trading control of a special account, informs the

Commission of the type of account that is being reported, and gives

preliminary information whether positions and transactions are

commercial or non-commercial in nature.5 The form must be filed

when the account first becomes reportable and updated when information

concerning financial interest in or control of the special account

changes.6 In addition to its use by the Commission, the Form 102

is used by the exchanges to identify accounts reported through their

large trader reporting systems for both futures and options.7

\4\17 CFR 17.01 (1994).

\5\Account types are shown on the CFTC Form 102 as house or

customer omnibus, individual, partnership, corporation, etc.

\6\17 CFR 17.02 (1994).

\7\Part 17 of the regulations requires that firms identify large

traders in options on the Form 102 and transmit the form to the

appropriate exchange in accordance with their rules. Those exchanges

that maintain a futures large trader reporting system also use the

CFTC Form 102 for identifying futures large traders.

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Effective August 16, 1993, the Commission adopted amendments to

part 17 of the regulations which clarified the reporting of futures

positions of commodity pools, certain commodity trading advisors and

accounts controlled by two or more persons.8 These amendments

primarily addressed the reporting of accounts controlled by independent

account controllers for eligible entities, conforming this reporting to

the same method used by the Commission to determine compliance with

speculative limits.9 Although certain amendments were made to Rule

17.01, the Commission did not change its Form 102. Rather, Commission

staff at that time began a review of the Form 102 in relation to the

newly amended Rule 17.01 and to changes in the nature of accounts

carried and reported by firms since the last substantive revision of

the form by the Commission.10

\8\58 FR 33327 (June 17, 1993).

\9\Eligible entities are defined in Commission Rule 150.1 as

commodity pool operators, operators of a trading vehicle which is

excluded or who themselves have qualified for the exclusion from the

definition of the term ``pool'' or ``commodity pool operator,''

respectively, under Sec. 4.5 of this chapter or a commodity trading

advisor.

\10\These changes occurred in September of 1982 when the form

was revised to include instructions for reporting option large

trader information to the exchanges.

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Staff review of this matter concluded that there are generally

three types of special accounts reported to the Commission where

information requirements differ: House and customer omnibus accounts;

accounts controlled by independent account controllers; and accounts

generally owned and controlled by the same entity or an employee of the

entity. The current Form 102 and Rule 17.01 require the same

information for all accounts. Since all of the information is not

pertinent for each of the different types of special accounts, the form

is subject to varying interpretations and may be confusing for both the

persons filing the form and those who receive it.

In view of this, Commission staff interviewed their counterparts at

the exchanges in order to develop a new Form 102 which resolves some of

the ambiguities in the present form making it more useful to both the

exchanges and the Commission. The views of the operations committees of

the Futures Industry Association (``FIA'') were also sought and are

discussed below. Persons on these committees represent the back office

staff of clearing members and FCMs generally responsible for completing

and filing the Form 102.

The proposed, modified Form 102 is included as an attachment to

this notice. The amendments to Rule 17.01 conform the information

required in the proposed regulations to that asked on the form.11

In this respect, the rule amendments will not increase the information

currently required under the rule for various types of accounts.

\11\On a related issue, the Commission is also proposing to

amend Rule 17.01 to require that option and futures accounts be

reported using the same designator. This may be any string of

alphanumeric characters up to the maximum number permitted.

Currently, Rule 17.01 specifies that a designator for a futures

account be numeric while that for an option account can be

alphanumeric. The restrictions on the use of alphanumeric characters

for futures accounts is no longer necessary. Using the same

designator for both types of accounts for the same persons will

reduce the number of Form 102s that firms must file and that the

Commission must process.

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The New Form 102 and Proposed Amendments to Rule 17.01

As noted above, Commission staff have identified three types of

special accounts that firms generally report: Omnibus accounts;

accounts controlled by an independent account advisor; and accounts

owned and controlled by the same entity or employee of the entity.

Item 1 on the proposed Form 102 requires that the firm classify the

special account as one of the three types (Sec. 1(a), 1(b) or 1(c)) and

give identifying information concerning the person or legal entity

holding and/or controlling the account in item 1(d). In addition, if

the account is not an omnibus account, the firm must report whether the

person or legal entity identified in item 1(d) is a Commodity Trading

Advisor (``CTA'') or a Securities Investment Advisor (``SIA''). See

proposed Secs. 17.01(b)(1), (b)(1) (i), (ii), (ii)(A), and (iii)(A).

The reason for identifying SIAs is that many of the participants in

stock index futures are SIAs. Exchanges that trade stock index futures

have created exclusions from certain of their rules for SIAs. The

exchanges therefore believe it is important to identify such persons

for enforcement purposes. The Commission also believes this information

may be important to determine if investigations or studies should be

conducted in cooperation with the Securities and Exchange Commission.

Other information required for each type of special account is

discussed below.12

\12\Items 6 through 12 on the proposed Form 102 must be provided

for all special accounts. This concerns information about the

associated person handling the account and the firm filing the

report.

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Omnibus Accounts

For reporting purposes an omnibus account is considered an account

carried on the books of an FCM (carrying firm) for and in the name of

another FCM, clearing member, or foreign broker (originating firm)

where trading in the account may be conducted for two or more persons

at the originating firm and the traders are not separately identified

to the carrying firm. Since the Commission will contact the originating

firm to file the necessary reports required by part 17 of the

regulations, the carrying firm need only identify the account as a

house or customer omnibus account (question 1(a) on the Form 102) and

provide the identifying information specified in item 1(d) of the form.

See proposed Secs. 17.01(b)(1), and (b)(1)(i).

Accounts Controlled by Independent Account Advisors

In pertinent part, an independent account advisor is a person who

specifically is authorized by an FCM or eligible entity, as defined in

part 150, to control trading decisions on behalf of, but without the

day-to-day direction of, the FCM or eligible entity and over whose

trading the FCM or eligible entity maintains only such minimum control

as is consistent with its fiduciary responsibilities to supervise

diligently the trading done on its behalf.13 As noted above, the

Commission amended Rule 17.00 in 1993 to provide that all accounts

controlled by independent account advisors for FCMs and eligible

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entities would be treated as a single account and reported in the name

of the advisor.14 Changes to the Form 102 specifically provide for

this. See proposed Secs. 17.01(b)(1) and (b)(1)(iii). Certain

additional information must be provided on all accounts included in

this type of special account. If the special account is a customer

trading program and involves 10 or more separate accounts of other

persons, firms need only give the name of the program and identify

those accounts held by commodity pools in item 3(a) on the Form

102.15 Information concerning other controlled accounts is

reported in item 3(b). See proposed Sec. 17.01(b)(1)(iii)(B) and (C).

On the new form, the account numbers of the controlled accounts must

now be reported. This information is helpful to those exchanges using

their large trader systems to identify accounts on the daily trade

register. Additionally, the information will be useful when Commission

or exchange staff contact firms about specific accounts on their

books.16

\13\The Commission has specified other indices of control to

determine if certain accounts should be considered separate from

other accounts owned or controlled by an FCM or eligible entity.

See, for example the Commission's ``Statement of Policy on

Aggregation'' (44 FR 33839, June 13, 1979) and Rule 150.1 (17 CFR

150.1, 1994).

\14\There is one general exception to this manner of reporting.

If an FCM or eligible entity owns an account, the account is

reported in the name of the FCM or eligible entity unless otherwise

directed by the Commission. Reporting accounts in this manner will

alert the Commission when an FCM or eligible entity trades above the

speculative limit levels and that further investigation may be

necessary.

\15\The Commission amended Rules 17.01 (b)(6) and 18.04(a)(5) in

June 1993, to limit the amount of information that is supplied on

Forms 102 and 40 concerning controlled accounts. As the Commission

then noted, participants in customer trading programs tend to be

small traders whose identity for market surveillance purposes is not

needed on a routine basis. The Commission reserved the right to

obtain this information on call (58 FR 33329 June 17, 1993).

\16\For these same reasons, the Commission is requiring that

account numbers be provided in items 2(c) and 4 on the new form.

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The operations committees of the FIA which were interviewed posed a

number of questions concerning accounts controlled by independent

account advisors. First, those surveyed by the Commission suggested

that a distinction be made between managed and guided accounts. The

Commission does not agree. In its 1979 Statement of Policy on

Aggregation the Commission considered differences between managed and

guided account programs.17 The Commission determined then that

there was little difference between managed and guided account programs

since such programs are designed and represented to customers to give

best results by complete or general participation in the trades

generated by the program.

\17\44 FR 33842 (June 13, 1979).

The operations committees also noted that a definition of

``program'' might be helpful and questioned whether the language in

item 3(a) concerning ``programs in which 10 or more accounts

participate'' referred to all accounts parented to an investment

advisor and whether this would include investment partnerships.

Commission Rule 15.00(f) currently defines a customer trading program

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for reporting purposes as:

Any system of trading offered, sponsored, promoted, managed or

in any other way supported by, or affiliated with, a futures

commission merchant, an introducing broker, a commodity pool

operator, or other trader, or any of its officers, partners or

employees, and which by agreement, recommendations, advice or

otherwise directly or indirectly controls trading done and positions

held by any other person.

Generally, this refers to all accounts parented to an investment

advisor.

With respect to investment partnerships, if all partners make

trading decisions for the partnership and share in ownership rights of

the assets of the partnership, then under Sec. 17.00(b)(1)(ii) accounts

of the partnership should be reported in the name of the

partnership.18 In this instance, none of the partners are parented

to the partnership account for reporting. A second type of partnership

involves limited partners. Many commodity pools are organized in this

manner. In this case, if the partnership is traded by an independent

account advisor for an FCM or eligible entity, the partnership is

reported in the name of the independent account advisor.19 If the

partnership trading is conducted by a general partner and there is only

one such person, then the partnership is reported in the name of the

general partner.20

\18\On the new Form 102, as proposed, item 1(b) would be checked

and the partnership identified in item 1(d). This manner of

reporting general partnerships was set forth in the 1993 Federal

Register Notice (58 FR 33328 June 17, 1993). Generally, this would

also apply to joint accounts.

\19\Item 1(c) is checked and information about the advisor is

supplied in item 1(d).

\20\Item 1(b) is checked and information about the general

partner is supplied in item 1(d).

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Those who are required to respond on the Form 102 also suggested

that consideration be given to include instructions or guidelines in

completing the Form 102, especially as it relates to independent

account advisors. Generally, reporting issues and questions arise when

multiple persons have financial interest or control of an account or

control of an account is vested in persons other than those having a

financial interest in the account. In such cases it is possible for

reporting firms to combine and report positions in more than one

manner.21 The Commission has given guidance in

Secs. 17.00(b)(1)(i) and (ii) for reporting the more commonly occurring

types of such situations. Answers to other problems are generally

specific in nature depending on the particular circumstances

surrounding each situation. In view of this, the Commission is

instructing its staff to coordinate with their counterparts at the

exchanges and give answers to reporting questions in writing. These

answers, which will be publicly available, will serve as advisories on

reporting, providing guidance on reporting issues within the context of

those which have already been encountered.

\21\As noted in the June 17, 1993 Federal Register, firms must

report in a manner that avoids duplicate reporting of position data

so that the data is suitable for regulatory analysis and publication

(55 FR 33328).

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Other Special Accounts

This includes accounts owned and controlled by the same person or

entity (or controlled by an officer or employee of the entity) and

general partnership or joint accounts. The information that is required

for special accounts in this category on the new Form 102 is similar to

that requested on the current Form 102. See items 1(d) and 2 on the

Form 102 and proposed Secs. 17.01(b)(1), 17.01(b)(1)(i), and (ii)(A)-

(E). Additional information on the new form includes the names and

locations of all persons authorized to trade an account included in the

special account. Since this identifies employees or officers of

corporations or other entities who conduct the actual trading, the

information can be used to ensure that if persons are suspended from

trading, they are not violating the suspension by masking their trading

in the name of a business. The Commission, however, is limiting the

amount of information that must be supplied. Large corporations may use

multiple accounts and traders, creating a burden for firms to obtain

and report all persons having trading authority for a special account.

Moreover, for large corporations this information is not necessary for

surveillance purposes. In view of this, the Commission is proposing

that the names and locations of account controllers be provided only if

there are five or fewer such traders.22

\22\The remaining information on the proposed Form 102 (items 4-

12) is substantively the same information that is asked on the

current form and does not need further discussion.

During staff interviews, those likely to be responding on the forms

presented a number of other suggestions. Chief among these was a

concern about the

[[Page 31656]]

turn around time for the Form 102 and the accuracy of the information

that can be supplied in such a short time frame. Currently a Form 102

is due at the same time a special account is reportable for the first

time. This is generally the business day following the trade date the

account first exceeds reporting levels.23 Since much of the

required information comes from the sales force, delays in obtaining

the information are not uncommon. Currently in such instances,

Commission staff will accept a filing providing at least the identity

and location of the account owner and/or controller within the first 24

hours with a completed Form 102 filed as soon as possible thereafter.

This is the least amount of information deemed necessary in order to

assign a CFTC trader number to the account. Some exchanges also require

that minimal identifying information be provided immediately allowing

some longer period for firms to complete and return the Form 102.

\23\17 CFR 17.02 (1994).

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In order to obtain more accurate information, the Commission is

proposing that Rule 17.02 be amended to require that firms need only

supply on an immediate basis the information in items 1(a), 1(b), or

1(c) and the name and location of the trader who will be identified in

1(d).24 Receipt of a fully completed and accurate Form 102 will be

required within 3 business days of the date the special account is

first reported.25

\24\Similarly, the Commission is proposing that updates to the

Form 102 be filed within three business days of the subject changes.

The Commission is also proposing to amend Rule 17.02 to require that

hardcopy reports be filed with the Commission by facsimile rather

than mail. Currently, all such reports are filed by facsimile. If

facsimile reporting represents a problem for some firms, the rule

provides that the Commission's designee may specify an alternate

means of reporting.

\25\Other suggestions put forth by the FIA and methods suggested

by Commission staff for addressing these concerns are as follows:

(1) More space should be provided on the form to alleviate the

need for continuation sheets. Since the form will be printed on both

sides of a single page, additional space is not available;

(2) Question 5 concerning contract markets used for hedging

should contain check boxes with possible choices of specific futures

and option markets. Currently, there are over 40 markets which could

be considered highly active. It would be difficult and probably of

little help to list only a few markets; and

(3) Customers should either complete or sign the form since the

filing of a false or fraudulent report may be a basis for

administrative action. The Commission currently receives a Form 40

from customers. Generally, a Form 40 requires the reporting of more

complete information. However, it is not as timely in its filing as

the Form 102. The Commission believes that obtaining information

from both sources on the Forms 102 and 40, respectively, is the best

method for assuring both timely and complete information necessary

for market surveillance.

The Commission requests further comment on the feasibility of

these suggestions and alternative methods of addressing these

concerns.

Exchange Initiatives

Staff of the Chicago Mercantile Exchange (``CME'') have provided

the Commission with proposed record layouts for the electronic

transmission of information on the Form 102. CME staff have inquired

about the feasibility of firms electronically transmitting Form 102

information to the exchange and the exchange then providing the

Commission with the information. The CME indicates that they have had

preliminary talks concerning this matter with a number of firms,

bookkeeping services,26 and staff of the Chicago Board of Trade.

In the meetings concerns were raised about the Commission's role in

this process. Apparently there is concern whether the Commission would

be able to receive transmissions in the prescribed format, whether

multiple transmissions to the exchanges and the Commission would be

necessary and whether the Commission might begin its own development

effort. Commission staff are currently reviewing the proposed format

and have scheduled further discussions with exchange staff. In the

interim, the Commission invites all interested persons to submit

comments concerning the CME's suggestion to electronically transmit

Form 102 data. The Commission is especially interested in the

feasibility of such a proposal, whether and to what extent data

required on the new Form 102 is currently in machine readable form,

potential costs and benefits to firms if the information is transmitted

electroni cally, and any alternate means through which the firms

believe they can reduce the cost of filing Form 102 information.

\26\Bookkeeping services provide software and/or hardware for

firms' operational staff. These services would be responsible for

developing software to transmit Form 102 information.

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Other Related Matters

The Regulatory Flexibility Act (RFA)

The RFA requires that agencies consider the impact of substantive

rules on small businesses. These amendments affect large traders, FCMs,

commodity pools, CTAs and other similar entities such as foreign

brokers and foreign traders. The Commission has defined ``small

entities'' in evaluating the impact of its rule in accordance with the

RFA, 47 FR 18618-18621 (April 30, 1982).

In that statement, the Commission concluded that large traders and

FCMs are not considered to be small entities for purposes of the RFA.

In this regard, the proposed amendments to reporting requirements

relating to the Form 102 fall mainly upon FCMs. Similarly, foreign

brokers and foreign traders report only if carrying or holding

reportable positions, i.e., large positions. Thus, pursuant to section

3(a) of the RFA (5 U.S.C. 605(b)), the Chairman, on behalf of the

Commission, certifies that these proposed rules would not have a

significant economic impact on a substantial number of small entities.

The Commission however, invites comments from any firm which believes

that these rules would have a significant economic impact upon its

operation.

Paperwork Reduction Act (``PRA'')

The PRA of 1980, 44 U.S.C. 3501 et. seq., imposes certain

requirements on Federal agencies (including the Commission) in

connection with their conducting or sponsoring any collection of

information as defined by the PRA. In compliance with the PRA, the

Commission has submitted these rules and their associated information

collection requirements to the Office of Management and Budget.

The burden associated with the entire collection, including this

rule, is as follows:

Average Burden Hours Per Response--.1587 hour

Number of Respondents--3709

Frequency of Response--Daily

The burden associated with this specific proposed rule, is as

follows:

Average Burden Hours Per Response--0.2 hour

Number of Respondents--6,592

Frequency of Response--On occasion

Persons wishing to comment on the information which would be

required by this proposed rule should contact Jeff Hill, Office of

Management and Budget, Room 3228, NEOB, Washington, DC 20503, (202)

395-7340. Copies of the information collection submission to OMB are

available from Joe F. Mink, CFTC Clearance Officer, 2033 K Street NW,

Washington, DC 20581, (202) 254-9735.

List of Subjects in

17 CFR Part 17

Brokers, Commodity Futures, Reporting and recordkeeping

requirements.

In consideration of the foregoing, and pursuant to the authority

contained in the Act and, in particular, sections 4g, 4i, 5 and 8a of

the Act, 7 U.S.C. 6g, 6i, 7 and 12a (1989), the Commission proposes to

amend Chapter I of title 17

[[Page 31657]]

of the Code of Federal Regulations as follows:

PART 17--REPORTS BY FUTURES COMMISSION MERCHANTS, MEMBERS OF

CONTRACT MARKETS AND FOREIGN BROKERS

1. The authority citation for part 17 continues to read as follows:

Authority: 7 U.S.C. 6a, 6d, 6f, 6g, 6i, 7 and 12a.

2. Section 17.01 is proposed to be revised as follows:

Sec. 17.01 Special account designation and identification.

(a) Designation of special account. For the purpose of reporting

futures information to the Commission and option information to a

contract market, each futures commission merchant, clearing member and

foreign broker shall assign a unique designator to each special account

for futures and options and shall report the account only by such

designator. Provided, that the designator for options and futures shall

not be changed or assigned to another account without prior approval of

the Commission.

(b) Identification of special account. When a Special Account is

reported for the first time, the futures commission merchant, clearing

member or foreign broker shall identify the account to the Commission

or to the contract market on Form 102 showing the information requested

thereon, including:

(1) The designator assigned to the account for reporting purposes

and the name, address, business phone and, for individuals, the

person's job title and employer for:

(i) The person originating the account, if the special account is a

house omnibus or customer omnibus account;

(ii) The person (i.e., individual, corporation, partnership etc.)

who owns the special account if such person (or an employee or officer)

also controls the trading of the special account. And in addition:

(A) The registration status of the person as a commodity trading

advisor or a securities investment advisor;

(B) The legal organization of the person and the person's principal

business or occupation;

(C) Account numbers and account names included in the special

account, if different than supplied in paragraph (b)(1) of this

section;

(D) The name and location of all persons not identified in

paragraph (b)(1) of this section having a 10% or more financial

interest in the special account, indicating those having discretionary

trading over the account; and

(E) For special accounts with five or fewer persons having trading

authority, the names and locations of all persons with trading

authority that have not been identified in paragraphs (b)(1) or

(1)(ii)(D) of this section; or

(iii) The account controller, if trading of the special account is

controlled by a person or legal entity who is an independent account

controller of the account owners as defined in Sec. 150.1(e). And, in

addition:

(A) The registration status of the person as a commodity trading

advisor or a securities investment advisor;

(B) For publicly offered managed or guided account programs in

which 10 or more accounts participate, the account number and the name

of each guided or managed account program and of each pool and the name

and address of the commodity pool operator for the pool that

participates in the program;

(C) For each controlled account not participating in a program

identified above, the account number and the name and address of each

person having a 10% or more financial interest in the account. For

commodity pools, provide the account number, name of the pool and name

and address of the commodity pool operator; and

(D) On call by the Commission or its designee the account numbers

and names and locations of each person participating in a program.

(2) For each account not included in the special account that the

person identified in paragraph (b)(1) of this section either controls

or in which such person has a financial interest of 10% or more, the

account number and the name of the account.

(3) For futures or options, commodities in which positions or

transactions in the account are associated with a commercial activity

of the account owner in a related cash commodity or activity (i.e.,

those considered as hedging, risk-reducing, or otherwise off-setting

with respect to the cash commodity or activity).

(4) The name and business telephone number of the associated person

of the futures commission merchant who has solicited and is responsible

for the account or, in the case of an introduced account, the name and

business telephone number of the introducing broker who introduced the

account.

(5) Name and address of the futures commission merchant, clearing

member or foreign broker carrying the account, the signature, title and

business phone of the authorized representative of the firm filing the

report, and the date of signing the Form 102.

(c) Form 102 update. If at the time an account is in special

account status and a Form 102 filed by a futures commission merchant,

clearing member, or foreign broker is then no longer accurate because

there has been a change in the information required under paragraphs

(b)(1)(B)(iv), (b)(1)(C) and (b)(2) of this section since the previous

filing, the futures commission merchant, clearing member, or foreign

broker shall file an updated Form 102 with the Commission or the

contract market, as appropriate, within three business days after such

change occurs.

3. Section 17.02 is proposed to be amended by revising the

introductory text and paragraph (b) and by adding a new paragraph (c)

as follows:

Sec. 17.02 Place and time of filing reports.

Unless otherwise instructed by the Commission or its designee, the

reports required to be filed by futures commission merchants, clearing

members and foreign brokers under Secs. 17.00 and 17.01 shall be filed

at the nearest appropriate Commission office as specified in paragraphs

(a), (b), and (c) of this section, wherein the times stated are eastern

times for information concerning markets located in that time zone and

central time for information concerning all other markets.

(a) * * *

(b) For data submitted in hardcopy form pursuant to Secs. 17.00

(a), or (h) at a Commission office by facsimile or in accordance with

instructions by the Commission or its designee not later than 9:00 a.m.

on the business day following that to which the information pertains.

(c) For data submitted pursuant to Sec. 17.01 on the Form 102;

(1) The type of special account specified in 1(a), 1(b) or 1(c) and

the name and location of the person to be identified in 1(d) on the

Form 102 by facsimile or telephone on the same day that the special

account in question is first reported to the Commission; and

(2) A completed Form 102 within three business days of the first

day that the special account in question is reported to the Commission.

* * * * *

Issued in Washington, DC, this June 12, 1995, by the Commission.

Lynn K. Gilbert,

Deputy Secretary of the Commission.

Note: CFTC Form 102 is being published for informational

purposes only and will not be codified in the Code of Federal

Regulations.

BILLING CODE 6351-01-P

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[GRAPHIC][TIFF OMITTED]TP16JN95.000

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[GRAPHIC][TIFF OMITTED]TP16JN95.001

[FR Doc. 95-14754 Filed 6-15-95; 8:45 am]

BILLING CODE 6351-01-C