Interpretation Regarding Use of Electronic Media by Commodity Pool Operators and Commodity Trading Advisors

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 4

Interpretation Regarding Use of Electronic Media by Commodity

Pool Operators and Commodity Trading Advisors

AGENCY: Commodity Futures Trading Commission.

ACTION: Delay of effective date of interpretation.

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SUMMARY: On August 8, 1996, the Commodity Futures Trading Commission

(``Commission'') issued an Interpretation Regarding Use of Electronic

Media by Commodity Pool Operators and Commodity Trading Advisors, 61 FR

42146 (August 14, 1996). On October 15, 1996, the Commission extended

the period for public comment until November 14, 1996, while delaying

the effective date until December 16, 1996, 61 FR 54731 (October 22,

1996). The Commission has now determined to delay the effective date

indefinitely. The Pilot Program for electronic filing of commodity pool

operator and commodity trading advisor disclosure documents, which

commenced on October 15, 1996, as originally provided, is not affected.

DATES: The effective date of the Interpretative Release referenced

herein is delayed indefinitely.

FOR FURTHER INFORMATION CONTACT:

Susan C. Ervin, Deputy Director/Chief Counsel, or Gary L. Goldsholle,

Attorney/Advisor, Division of Trading and Markets, Commodity Futures

Trading Commission, 1155 21st Street, NW., Washington, DC 20581.

Telephone number: (202) 418-5450. Facsimile number: (202) 418-5536.

Electronic mail: [email protected].

SUPPLEMENTARY INFORMATION: On August 8, 1996, the Commission issued an

Interpretation Regarding Use of Electronic Media by Commodity Pool

Operators and Commodity Trading Advisors (``Interpretative Release'' or

``Release''). The Interpretative Release was designed to provide

commodity pool operators (``CPOs''), commodity trading advisors

(``CTAs''), and associated persons (``AP'') thereof, with guidance

concerning the application of the Commodity Exchange Act and

regulations thereunder to activities involving electronic media. The

Commission sought comment on all issues discussed in the release, and

any related issues, and provided that the effective date of the

Interpretative Release would be October 15, 1996 and that comments

should be received on or before that date. On October 15, 1996, the

Commission extended the comment period until November 14, 1996, and

delayed the effective date until December 16, 1996.

The Commission has now determined to delay the effective date

indefinitely to permit full review and consideration of the comments

received and issues presented. As with the prior postponement, the

Commission emphasizes that this does not affect the statutory and

regulatory requirements applicable to persons acting as CPOs and CTAs

by means of electronic media, who ``are subject to the same statutory

and regulatory requirements under the Commission's regulatory framework

as persons employing other modes of communication.'' 61 FR at 42150.

The Commission also notes that the Commission staff letters and

advisories cited in the Release, as stated therein, ``represent

interpretations by the Commission's staff and do not

[[Page 65941]]

necessarily represent interpretations by the Commission.'' 61 FR at

42149 n. 24.

Finally, although the Commission is indefinitely delaying the

effective date of the Interpretative Release, CPOs and CTAs may

continue to rely on the positions stated therein as ``safe harbor''

positions to aid CTAs and CPOs making use of electronic media pending

further statements of the Commission's views. Additionally, the Pilot

Program for electronic filing of CPO and CTA disclosure documents,

which commenced on October 15, 1996, as originally proposed, is not

affected.

Issued in Washington, DC, on December 11, 1996, by the

Commission.

Jean A. Webb,

Secretary of the Commission.

[FR Doc. 96-31928 Filed 12-13-96; 8:45 am]

BILLING CODE 6351-01-M