The Division of Market Oversight (DMO) is issuing a no-action letter that provides additional time for reporting parties to comply with certain reporting requirements of the ownership and control final rule (the OCR F...

Summary: The Division of Market Oversight (DMO) is issuing a no-action letter that provides additional time for reporting parties to comply with certain reporting requirements of the ownership and control final rule (the OCR Final Rule), which was published in the Federal Register on November 18, 2013. This no-action letter replaces a previous DMO no-action letter on the OCR Final Rule (CFTC Letter No. 14-95).

U.S. COMMODITY FUTURES TRADING COMMISSION

Three Lafayette Centre

1155 21st Street, NW

Washington, DC 20581

Telephone: (202) 418-5000

Facsimile: (202) 418-5521

D ivision of

Market Oversight

CFTC Letter No. 15-03

No-Action

February 10, 2015

Division of Market Oversight

Conditional Time-Limited No-Action Relief from

Certain Ownership and Control (OCR) Data Reporting Requirements

Under Parts 17, 18 and 20 of the Commission’s Regulations:

Replaces CFTC No-Action Letter No. 14-95

February 10, 2015

Allison Lurton

Senior Vice President and General Counsel

The Futures Industry Association

2001 Pennsylvania Avenue NW

Suite 600

Washington, DC 20006

Dear Ms. Lurton:

This letter is in response to your request dated January 22, 2015 (the “2015 FIA Letter”), to the

Division of Market Oversight (“DMO” or “Division”) of the Commodity Futures Trading

Commission (“Commission”), on behalf of the members of the Futures Industry Association

(“FIA”) that are required to submit certain reports under Parts 15, 17, 18 and 20 of the

Commission’s regulations. In the 2015 FIA Letter, you requested no-action relief from certain

data reporting requirements of Parts 17, 18 and 20 of the Commission’s regulations that were

implemented pursuant to the OCR Final Rule (as defined in section A below)

members of the Futures Industry Association

(“FIA”) that are required to submit certain reports under Parts 15, 17, 18 and 20 of the

Commission’s regulations. In the 2015 FIA Letter, you requested no-action relief from certain

data reporting requirements of Parts 17, 18 and 20 of the Commission’s regulations that were

implemented pursuant to the OCR Final Rule (as defined in section A below).

As discussed below, in July 2014, the Division provided time-limited no-action relief from

several regulations implemented by the OCR Final Rule, in response to a previous request for

no-action relief from the FIA.1 This no-action letter replaces that 2014 no-action letter, CFTC

Letter No. 14-95 (“2014 CFTC NAL”), to extend the time period for relief from certain reporting

1 See CFTC Letter No. 14-95, dated July 23, 2014.

obligations under the OCR Final Rule. The no-action relief described in this letter may be relied

upon by all parties that are obligated to report pursuant to the OCR Final Rule on any of New

Form 102A, New Form 102B, New Form 102S, New Form 40/40S and New Form 71

(collectively, “Reporting Parties”), as such terms are defined below.

A. Background; OCR Final Rule

On November 18, 2013, the Commission adopted new rules and related forms to enhance its

identification of futures and swap market participants (the “OCR Final Rule”).2 The OCR Final

Rule expands upon the Commission’s pre-existing position and transaction reporting programs

by requiring the electronic submission of trader identification and market participant data on

updated Form 102 (“New Form 102”) and Form 40 (“New Form 40”), and on entirely new Form

71 (“New Form 71”)

nce its

identification of futures and swap market participants (the “OCR Final Rule”).2 The OCR Final

Rule expands upon the Commission’s pre-existing position and transaction reporting programs

by requiring the electronic submission of trader identification and market participant data on

updated Form 102 (“New Form 102”) and Form 40 (“New Form 40”), and on entirely new Form

71 (“New Form 71”). New Form 102 is subdivided into three parts (“New Form 102A,” “New

Form 102B,” and “New Form 102S”).3 New Form 102B is an entirely new form, introduced by

the OCR Final Rule. Among other fields, the new and updated forms require the reporting of the

following information:

• New Form 102A: a position-based reporting form, which requires the reporting of both

special accounts and the trading accounts that comprise special accounts.

• New Form 102B: requires the reporting of trading accounts that exceed a stated volume

threshold during a single trading day (“volume threshold accounts”), regardless of

whether these positions remain open at the end of the day.

• New Form 102S: facilitates the electronic submission of 102S filings, and requires

position-based reporting of consolidated accounts in the swaps market.

• New Form 40/40S: sent by the Commission to reporting traders via special call to collect

identifying information regarding traders.

• New Form 71: sent by the Commission via special call to collect additional information

on omnibus volume threshold accounts identified on New Form 102B.

The OCR Final Rule also amends Commission regulation § 18.054 to impose additional

recordkeeping obligations upon certain categories of persons required by the rule to submit data

to the Commission.

As discussed in the OCR Final Rule, the Commission has developed both a web-based portal and

a secure FTP transmission method through which Reporting Parties will submit and update their

reporting forms

Final Rule also amends Commission regulation § 18.054 to impose additional

recordkeeping obligations upon certain categories of persons required by the rule to submit data

to the Commission.

As discussed in the OCR Final Rule, the Commission has developed both a web-based portal and

a secure FTP transmission method through which Reporting Parties will submit and update their

reporting forms. The OCR Final Rule provides that Reporting Parties may submit the required

2 Commission, Ownership and Control Reports, Forms 102/102S, 40/40S, and 71; Final Rule, 78 FR

69178 (November 18, 2013) (hereinafter, “OCR Final Rule”). Terms not otherwise defined in this no-

action letter shall have the meaning assigned to them in the OCR Final Rule or in the Commission’s

regulations.

3 Forms 102 and 40 (including 102S and 40S Filings) as they existed prior to the OCR Final Rule are

referred to herein as “Legacy” forms and filings—i.e., Legacy Form 102, Legacy 102S Filing, Legacy

Form 40, and Legacy 40S Filing.

4 17 CFR § 18.05.

2

information through either electronic submission method. The original compliance date of the

OCR Final Rule was August 15, 2014.

Commission staff has undertaken a number of measures since the publication of the OCR Final

Rule in November 2013 to assist reporting parties in implementing its requirements. Division

staff has held bi-weekly calls with reporting parties since January 22, 2014 to discuss technical

questions related to the OCR Final Rule.5 Staff of the Commission’s Office of Data and

Technology (“ODT”) began accepting OCR test files from reporting parties on May 7, 2014, and

continues to work with Reporting Parties to address technical issues related to the OCR

submission process

Division

staff has held bi-weekly calls with reporting parties since January 22, 2014 to discuss technical

questions related to the OCR Final Rule.5 Staff of the Commission’s Office of Data and

Technology (“ODT”) began accepting OCR test files from reporting parties on May 7, 2014, and

continues to work with Reporting Parties to address technical issues related to the OCR

submission process. Finally, as discussed in the section below, the Division granted time-limited

no-action relief from certain reporting obligations under the OCR Final Rule via the 2014 CFTC

NAL.

B. Summary of FIA Requests

2014 Request for No-Action Relief. By letter to the Division dated June 6, 2014, the FIA first

requested no-action relief from certain data reporting requirements of Parts 17, 18 and 20 of the

Commission’s regulations implemented pursuant to the OCR Final Rule (the “2014 FIA Letter”).

In the 2014 FIA Letter, the FIA represented that reporting firms were undertaking a number of

tasks to build a secure, efficient and reliable technology infrastructure to house and deliver the

data required by the OCR Final Rule. These undertakings by reporting firms included: (a)

building a database to house the customer information resident in various systems within firms,

as well as data not previously collected; and (b) expanding the data collection to include an

entirely new class of reportable accounts triggered by the 102B volume threshold, among other

tasks. The FIA further represented in the 2014 FIA Letter that the industry needed more time to

educate clients of FIA member firms with reporting obligations and collect the new data required

for OCR reporting. The FIA represented that questions raised by client representatives during

the first half of 2014 indicated that the client community was not ready to supply information

regarding account ownership and control required under the OCR Final Rule

at the industry needed more time to

educate clients of FIA member firms with reporting obligations and collect the new data required

for OCR reporting. The FIA represented that questions raised by client representatives during

the first half of 2014 indicated that the client community was not ready to supply information

regarding account ownership and control required under the OCR Final Rule.

In response to the 2014 FIA Letter, the Division issued the 2014 CFTC NAL granting time-

limited no-action relief from certain reporting obligations under the OCR Final Rule. More

specifically, the 2014 CFTC NAL, subject to certain terms and conditions, granted no-action

relief from: (a) electronically reporting via New Form 102A and New Form 102S until February

11, 2015; (b) electronically reporting via New Form 102B until March 11, 2015; and (c)

electronically reporting via New Form 40/40S and New Form 71 until February 11, 2016.

2015 Request for No-Action Relief. In the 2015 FIA Letter, you represented that,

notwithstanding the no-action relief provided by the 2014 CFTC NAL, the industry needs

additional time to educate clients of FIA member firms with reporting obligations and collect the

5 Calls with Reporting Parties are ongoing. The call schedule and other important information related to

the implementation of the OCR Final Rule are available on the Commission’s website at:

http://www.cftc.gov/Forms/OCR

3

g the no-action relief provided by the 2014 CFTC NAL, the industry needs

additional time to educate clients of FIA member firms with reporting obligations and collect the

5 Calls with Reporting Parties are ongoing. The call schedule and other important information related to

the implementation of the OCR Final Rule are available on the Commission’s website at:

http://www.cftc.gov/Forms/OCR

3

new data required for OCR reporting. You further represented that reporting parties need

additional time to explain the concepts of ownership and control to customers/counterparties.

In addition, you noted that New Form 102B reporting requires clearing members to aggregate

instruments with the same product identifier in connection with their trading activity on both

designated contract markets (DCMs) and swap execution facilities (SEFs).6 You stated that

although FIA has engaged in preliminary discussions with certain SEFs regarding setting product

identifiers for swaps, product identifiers are not yet available on SEFs. You further represented

that even after SEFs create product identifiers for swaps, a clearing member will need to expend

significant time and resources to develop systems that recognize and collate each SEF product

identifier.

Based on your representations in the 2015 FIA Letter, you requested that the Commission grant

no-action relief permitting reporting parties to report to the Commission via Legacy Form 102

and the Legacy 102S Filing (in lieu of electronically reporting via New Form 102A and New

Form 102S) until February 11, 2016, provided that parties simultaneously submit test data to the

Commission according to a staggered testing schedule

n the 2015 FIA Letter, you requested that the Commission grant

no-action relief permitting reporting parties to report to the Commission via Legacy Form 102

and the Legacy 102S Filing (in lieu of electronically reporting via New Form 102A and New

Form 102S) until February 11, 2016, provided that parties simultaneously submit test data to the

Commission according to a staggered testing schedule. You further requested no-action relief

from the requirement to report DCM volume threshold accounts via New Form 102B until

February 11, 2016.7 Finally, you requested that clearing members should be permitted to

exclude swaps traded on a SEF from the reportable trading volume in connection with New

Form 102B until 120 days after SEFs, at the direction of the Commission, define product

identifiers in connection with volume threshold accounts.

C. Division Response to 2015 FIA Letter

Based on your representations in the 2015 FIA Letter, the Division believes that some extension

of the time-limited no-action relief now in place under the 2014 CFTC NAL is warranted for

certain reporting obligations under the OCR Final Rule. However, the Division does not believe

it is appropriate to grant no-action relief from the requirement to report via New Form 102A,

New Form 102B (with respect to DCM volume threshold accounts) and New Form 102S until

February 11, 2016. Instead, the Division is granting no-action relief from the requirement to

report via New Form 102A, New Form 102B (with respect to DCM volume threshold accounts)

and New Form 102S until September 30, 2015, subject to certain conditions more fully

described below.

The Division is extending no-action relief until September 30, 2015 for the reporting obligations

described in the preceding paragraph, rather than February 11, 2016, for several reasons. The

OCR Final Rule was first published in the Federal Register on November 18, 2013, which has

given reporting parties over a year to review and implement the required electronic reporting

methods

ed below.

The Division is extending no-action relief until September 30, 2015 for the reporting obligations

described in the preceding paragraph, rather than February 11, 2016, for several reasons. The

OCR Final Rule was first published in the Federal Register on November 18, 2013, which has

given reporting parties over a year to review and implement the required electronic reporting

methods. In addition, Division staff has been holding bi-weekly calls with reporting parties

regarding technical implementation of the OCR Final Rule since January 22, 2014. ODT staff

6 See the definition of “reportable trading volume level” applicable to New Form102B reporting in

regulation § 15.04, 17 CFR §15.04.

7 See section C (1) below for the definition of “DCM volume threshold accounts” and “SEF volume

threshold accounts.”

4

began accepting OCR test files from reporting parties on May 7, 2014. Finally, under the 2014

CFTC NAL the Division has already provided no-action relief from certain reporting

requirements in the OCR Final Rule, and extended the reporting deadline from the original

compliance date of August 15, 2014 to dates ranging between February 11, 2015 and February

11, 2016.8 The Division believes that the additional time granted pursuant to this no-action letter

will offer reporting parties ample time to complete the process of collecting ownership and

control information from customers and other parties.

The Division is also granting no-action relief from the requirement to report via New Form

40/40S and New Form 71 until February 11, 2016 and the requirement to report via New Form

102B (with respect to SEF volume threshold accounts) until February 13, 2017, subject to

certain conditions more fully described below.

1. Summary of No-Action Relief

information from customers and other parties.

The Division is also granting no-action relief from the requirement to report via New Form

40/40S and New Form 71 until February 11, 2016 and the requirement to report via New Form

102B (with respect to SEF volume threshold accounts) until February 13, 2017, subject to

certain conditions more fully described below.

1. Summary of No-Action Relief.

This no-action letter replaces the 2014 CFTC NAL. Based on the representations provided in the

2015 FIA Letter, the Division believes that the following time-limited no-action relief is

warranted:

• Relief from electronically reporting via New Form 102A until September 30, 2015

(see section D below);

• Relief from electronically reporting via New Form 102S until September 30, 2015

(see section F below);

• Relief from electronically reporting DCM volume threshold accounts9 via New

Form 102B until September 30, 2015 (see section G below); and

• Relief from electronically reporting SEF volume threshold accounts10 via New Form

102B until February 13, 2017 (see section H below).

This no-action letter also provides the following time-limited no-action relief with respect to the

obligation to report via New Form 40/40S and New Form 71. This relief is unchanged from the

2014 CFTC NAL:

• Relief from electronically reporting via New Form 40/40S and New Form 71 until

February 11, 2016 (see section I below).

As further described below, among other conditions, the no-action relief described above is

subject to Reporting Parties continuing to report to the Commission via Legacy Form 102, the

Legacy 102S Filing, Legacy Form 40 and the Legacy 40S Filing in accordance with the reporting

requirements in place prior to the implementation of the OCR Final Rule.

8 See the discussion of the 2014 CFTC NAL above

rther described below, among other conditions, the no-action relief described above is

subject to Reporting Parties continuing to report to the Commission via Legacy Form 102, the

Legacy 102S Filing, Legacy Form 40 and the Legacy 40S Filing in accordance with the reporting

requirements in place prior to the implementation of the OCR Final Rule.

8 See the discussion of the 2014 CFTC NAL above.

9 As used herein, “DCM volume threshold accounts” means volume threshold accounts on or subject to

the rules of a reporting market that is a board of trade designated as a contract market under section 5 of

the Commodity Exchange Act (the “Act”).

10 As used herein, “SEF volume threshold accounts” means volume threshold accounts on or subject to

the rules of a reporting market that is a swap execution facility registered under section 5h of the Act.

5

Notwithstanding the no-action relief provided herein, the Division is not providing relief for the

additional recordkeeping obligations imposed by regulation § 18.05, as amended by the OCR

Final Rule.11 The compliance date under the amended regulation for these obligations occurred

on August 15, 2014.

The remainder of this no-action letter describes the time-limited no-action relief provided in

response to the 2015 FIA Letter in more detail.

D. Conditional No-action Relief from Submitting Information via New Form 102A

Until 11:59 p.m. Eastern Time on September 30, 2015

Summary of Relief Granted: The Division is providing relief from electronically reporting via

New Form 102A until 11:59 p.m

he remainder of this no-action letter describes the time-limited no-action relief provided in

response to the 2015 FIA Letter in more detail.

D. Conditional No-action Relief from Submitting Information via New Form 102A

Until 11:59 p.m. Eastern Time on September 30, 2015

Summary of Relief Granted: The Division is providing relief from electronically reporting via

New Form 102A until 11:59 p.m. Eastern Time on September 30, 2015, provided that Reporting

Parties comply with the reporting practice that was in place prior to the implementation of the

OCR Final Rule, by reporting via Legacy Form 102 (as such term is defined below) until 11:59

p.m. Eastern Time on September 30, 2015, or such earlier date that the Division may determine.

The Division believes that time-limited no-action relief is warranted for certain reporting

obligations under Part 17 of the Commission’s regulations that were implemented by the OCR

Final Rule. Subject to the conditions below, the Division will not recommend that the

Commission commence an enforcement action against a Reporting Party for failure to report via

New Form 102A, as required by Part 17, 12 until 11:59 p.m. Eastern Time on September 30,

2015.

The no-action relief described in this section D is subject to Reporting Parties reporting via

Legacy Form 102 until 11:59 p.m. Eastern Time on September 30, 2015, or such earlier date that

the Division may determine. Such reporting must be consistent in all respects with the time,

form and manner of the Legacy Form 102 reporting practice. In particular, the no-action relief

described in this section D is subject to Reporting Parties reporting via Legacy Form 102 in

accordance with the following conditions and Appendix A hereto:13

• Report via Legacy Form 102

o As used herein, “Legacy Form 102” refers to the Form 102 required prior to the

implementation of the OCR Final Rule, which is available on the Commission’s

11 17 CFR §18.05.

12 See 17 CFR §§ 17.01(a), 17.01(d), 17.01(e) and 17.02(b)

subject to Reporting Parties reporting via Legacy Form 102 in

accordance with the following conditions and Appendix A hereto:13

• Report via Legacy Form 102

o As used herein, “Legacy Form 102” refers to the Form 102 required prior to the

implementation of the OCR Final Rule, which is available on the Commission’s

11 17 CFR §18.05.

12 See 17 CFR §§ 17.01(a), 17.01(d), 17.01(e) and 17.02(b).

13 When submitting either Legacy Form 102 or New Form 102A, Reporting Parties should report special

accounts pursuant to Commission regulation § 17.00 and on the applicable 102 form on a disaggregated

basis, if the parties have been so instructed by the Commission or its designee. All Reporting Parties

should provide position reporting on the applicable 102 form based on control of a special account. As an

example, if a special account is controlled by one Reporting Party but owned by another, such account

should be reported only by the Reporting Party that controls the special account. See discussion in OCR

Final Rule, 78 FR at 69184.

6

website.14 See Appendix A hereto for additional instructions for completing

Legacy Form 102 in accordance with the legacy reporting practice.

o Within three business days of the first day that a special account is reported to the

Commission pursuant to § 17.00(a) by a futures commission merchant, clearing

member, or foreign broker, in accordance with instructions by the Commission or

its designee, such party must submit Legacy Form 102 to the Commission in

accordance with instructions by the Commission or its designee, showing the

information in paragraphs (a) through (f) of Appendix A hereto

ccount is reported to the

Commission pursuant to § 17.00(a) by a futures commission merchant, clearing

member, or foreign broker, in accordance with instructions by the Commission or

its designee, such party must submit Legacy Form 102 to the Commission in

accordance with instructions by the Commission or its designee, showing the

information in paragraphs (a) through (f) of Appendix A hereto.

o On call by the Commission or its designee, a futures commission merchant,

clearing member, or foreign broker must identify the type of special account

specified by items 1(a), 1(b), or 1(c) of Legacy Form 102, and the name and

location of the person to be identified in item 1(d) on Legacy Form 102, and

submit such information by facsimile or telephone, in accordance with

instructions by the Commission or its designee, on the same day that the special

account in question is first reported to the Commission by such party.

o Legacy Form 102 updates. If, at the time an account is in special account status

and a Legacy 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 paragraph (b) of Appendix A to this no-

action letter since the previous filing, the futures commission merchant, clearing

member, or foreign broker must file an updated Legacy Form 102 with the

Commission within three business days after such change occurs.

o Exclusively self-cleared contracts. Unless determined otherwise by the

Commission, reporting markets that list exclusively self-cleared contracts must

submit and update Legacy Form 102, as the requirement to submit and update

Legacy Form 102 applies to trading in such contracts by all clearing members, on

behalf of all clearing members

n within three business days after such change occurs.

o Exclusively self-cleared contracts. Unless determined otherwise by the

Commission, reporting markets that list exclusively self-cleared contracts must

submit and update Legacy Form 102, as the requirement to submit and update

Legacy Form 102 applies to trading in such contracts by all clearing members, on

behalf of all clearing members.

o The Legacy Form 102 reporting practice described above and on Appendix A is

referred to herein as the “Legacy Form 102 reporting practice.”

The no-action relief described in this section D is also subject to the following condition in

section E:

E. Testing of Electronic Reporting Methods

Prior to the implementation of electronic reporting on the dates described in this no-action letter,

Reporting Parties are expected to cooperate with ODT staff as requested to test and implement

any information technology standards or systems associated with the OCR Final Rule as

contemplated in that rulemaking.15 During this testing period, Reporting Parties are expected to

14 See the link below to the Commission’s website for a copy of Legacy Form 102:

http://www.cftc.gov/Forms/ssLINK/cftcform102

15 OCR Final Rule at 69188-69189.

7

provide “Production Grade” test data16 and any other form filings requested by ODT staff,17 in

the form and manner described on the OCR testing page of the CFTC website.18 The Division

advises Reporting Parties to check the OCR testing page on a regular basis to review testing

requirements.

ODT staff will divide the testing period for each form filing into several testing phases. During

each phase, Reporting Parties are expected to submit an increasing number of data points on the

form filings

nd manner described on the OCR testing page of the CFTC website.18 The Division

advises Reporting Parties to check the OCR testing page on a regular basis to review testing

requirements.

ODT staff will divide the testing period for each form filing into several testing phases. During

each phase, Reporting Parties are expected to submit an increasing number of data points on the

form filings. By the end of each phase, Reporting Parties are expected to demonstrate their

ability to submit all of the data points that are required for that phase. By the end of the final

testing phase for a particular form, which will conclude prior to the date on which no-action

relief expires for such form, Reporting Parties are expected to demonstrate their ability to submit

all of the data points (using Production Grade data) that are required on the form. Finally,

Reporting Parties are expected to provide status reports on their implementation efforts upon

request by ODT.

F. Conditional No-action Relief from Submitting Information via New Form 102S

Until 11:59 p.m. Eastern Time on September 30, 2015

Summary of Relief Granted: The Division is providing relief from electronically reporting via

New Form 102S until 11:59 p.m. Eastern Time on September 30, 2015, provided that Reporting

Parties comply with the reporting practice that was in place prior to the implementation of the

OCR Final Rule, by reporting via the Legacy 102S Filing (as such term is defined below) until

11:59 p.m. Eastern Time on September 30, 2015, or such earlier date that the Division may

determine.

The Division believes that time-limited no-action relief is warranted for certain reporting

obligations under Part 20 of the Commission’s regulations that were implemented by the OCR

Final Rule

f the

OCR Final Rule, by reporting via the Legacy 102S Filing (as such term is defined below) until

11:59 p.m. Eastern Time on September 30, 2015, or such earlier date that the Division may

determine.

The Division believes that time-limited no-action relief is warranted for certain reporting

obligations under Part 20 of the Commission’s regulations that were implemented by the OCR

Final Rule. Subject to the conditions below, the Division will not recommend that the

Commission commence an enforcement action against a Reporting Party for failure to report via

16 “Production Grade” data means (a) in the context of New Form 102A testing, data that, to the extent it

overlaps, is identical to data submitted pursuant to Part 17 of the Commission’s regulations (Large Trader

data and Trader Capture Report data); (b) in the context of New Form 102S testing, data that, to the extent

it overlaps, is identical to data submitted pursuant to Part 20 of the Commission’s regulations

(Commodity Swaps data); and (c) in the context of New Form 102B testing, data that is equivalent to the

data that the Commission will receive following the implementation of electronic reporting on New Form

102B. Production Grade data will be used by the Commission only for testing purposes.

17 The Commission will protect proprietary information consistent with the Freedom of Information Act,

5 U.S.C. 552, and 17 CFR part 145, “Commission Records and Information.” In addition, § 8(a)(1) of the

Commodity Exchange Act, 7 U.S.C. §12(a)(1), strictly prohibits the Commission, unless specifically

authorized by the Act, from making public “data and information that would separately disclose the

business transactions or market positions of any person and trade secrets or names of customers.” The

Commission is also required to protect certain information contained in a government system of records

according to the Privacy Act of 1974, 5 U.S.C. 552a.

18 See http://www.cftc.gov/Forms/OCR

8

uthorized by the Act, from making public “data and information that would separately disclose the

business transactions or market positions of any person and trade secrets or names of customers.” The

Commission is also required to protect certain information contained in a government system of records

according to the Privacy Act of 1974, 5 U.S.C. 552a.

18 See http://www.cftc.gov/Forms/OCR

8

New Form 102S, as required by Part 20, 19 until 11:59 p.m. Eastern Time on September 30,

2015.

The no-action relief described in this section F is subject to Reporting Parties reporting via the

Legacy 102S Filing until 11:59 p.m. Eastern Time on September 30, 2015, or such earlier date

that the Division may determine. Such reporting must be consistent in all respects with the time,

form and manner of the Legacy 102S reporting practice. In particular, the no-action relief

described in this section F is subject to Reporting Parties reporting via the Legacy 102S Filing in

accordance with the following conditions:

• Report via Legacy 102S Filings

o Within three days following the first day that a counterparty consolidated account

first becomes reportable, or at such time as instructed by the Commission upon

special call, a reporting entity20 must submit a 102S filing, which must consist of

the name, address, and contact information of the counterparty and a brief

description of the nature of such person’s paired swaps and swaptions market

activity (the “Legacy 102S Filing”).21

o A reporting entity may submit a Legacy 102S Filing only once for each

counterparty, even if such persons at various times have multiple reportable

positions in the same or different paired swaps or swaptions

me, address, and contact information of the counterparty and a brief

description of the nature of such person’s paired swaps and swaptions market

activity (the “Legacy 102S Filing”).21

o A reporting entity may submit a Legacy 102S Filing only once for each

counterparty, even if such persons at various times have multiple reportable

positions in the same or different paired swaps or swaptions. However, reporting

entities must update a Legacy 102S Filing if the information provided is no longer

accurate.

o The 102S reporting practice described above is referred to herein as the “Legacy

102S reporting practice.”

The no-action relief described in this section F is also subject to Reporting Parties complying

with the electronic reporting testing condition set out in section E above. Furthermore,

Reporting Parties submitting New Form 102S during the testing period are expected to provide,

in addition to the data fields required on New Form 102S, the name, address, and contact

information of the reportable counterparty. ODT staff will provide additional information on the

OCR testing page regarding the time and manner for reporting such counterparty information

during the testing period for New Form 102S.

G. Conditional No-action Relief from Submitting Information Regarding DCM

Volume Threshold Accounts via New Form 102B Until 11:59 p.m. Eastern Time on

September 30, 2015

19 See 17 CFR §§ 20.5(a)(1), 20.5(a)(2), 20.5(a)(4) and 20.5(a)(5).

20 See § 20.1 of the Commission’s regulations for the definition of “reporting entity.” 17 CFR § 20.1.

21 Reporting Parties should submit a Legacy 102S Filing in accordance with the specifications set forth in

the Large Trader Reporting for Physical Commodity Swaps: Division of Market Oversight Guidebook for

Part 20 Reports (as amended from time to time, the “102S Guidebook”). The current version of the 102S

Guidebook is available at the link below:

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/ltrguidebook053112.pdf

9

102S Filing in accordance with the specifications set forth in

the Large Trader Reporting for Physical Commodity Swaps: Division of Market Oversight Guidebook for

Part 20 Reports (as amended from time to time, the “102S Guidebook”). The current version of the 102S

Guidebook is available at the link below:

http://www.cftc.gov/ucm/groups/public/@newsroom/documents/file/ltrguidebook053112.pdf

9

Summary of Relief Granted: The Division is providing relief from electronically reporting DCM

Volume Threshold Accounts via New Form 102B until 11:59 p.m. Eastern Time on September

30, 2015, provided that Reporting Parties comply with the reporting practice that was in place

prior to the implementation of the OCR Final Rule, by reporting via Legacy Form 102 and the

Legacy 102S Filing until 11:59 p.m. Eastern Time on September 30, 2015, or such earlier date

that the Division may determine.22

The Division believes that time-limited no-action relief is warranted for certain reporting

obligations under Part 17 of the Commission’s regulations that were implemented by the OCR

Final Rule. Subject to the conditions in sections D (102A Submission), E (Testing

Requirements) and F (102S Submission) above, the Division will not recommend that the

Commission commence an enforcement action against a Reporting Party for failure to report

DCM Volume Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m.

Eastern Time on September 30, 2015. 23

H. Conditional No-action Relief from Submitting Information Regarding SEF Volume

Threshold Accounts via New Form 102B Until 11:59 p.m

, the Division will not recommend that the

Commission commence an enforcement action against a Reporting Party for failure to report

DCM Volume Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m.

Eastern Time on September 30, 2015. 23

H. Conditional No-action Relief from Submitting Information Regarding SEF Volume

Threshold Accounts via New Form 102B Until 11:59 p.m. Eastern Time on

February 13, 2017

Summary of Relief Granted: The Division is providing relief from electronically reporting SEF

Volume Threshold Accounts via New Form 102B until 11:59 p.m. Eastern Time on February 13,

2017, provided that Reporting Parties comply with the reporting practice that was in place prior

to the implementation of the OCR Final Rule, by reporting via Legacy Form 102 and the Legacy

102S Filing until 11:59 p.m. Eastern Time on September 30, 2015, or such earlier date that the

Division may determine.24

The Division believes that time-limited no-action relief is warranted for certain reporting

obligations under Part 17 of the Commission’s regulations that were implemented by the OCR

Final Rule. In particular, Division staff is aware of practical limitations regarding the reportable

trading volume level, as defined in regulation § 15.04, for SEF Volume Threshold Accounts

reported via New Form 102B. In light of these concerns regarding § 15.04 as it applies to SEFs,

the Division believes that no-action relief extending for a period of two years is warranted with

respect to this reporting obligation. Subject to the conditions in sections D (102A Submission)

and F (102S Submission) above, the Division will not recommend that the Commission

22 As noted in sections D and F above, the transition from Legacy Form 102 and the Legacy Form 102S

filing to New Form 102A and New Form 102S will occur at 11:59 p.m. eastern time on September 30,

2015, or such earlier date that the Division may determine

Subject to the conditions in sections D (102A Submission)

and F (102S Submission) above, the Division will not recommend that the Commission

22 As noted in sections D and F above, the transition from Legacy Form 102 and the Legacy Form 102S

filing to New Form 102A and New Form 102S will occur at 11:59 p.m. eastern time on September 30,

2015, or such earlier date that the Division may determine.

23 The reporting requirements with respect to New Form 102B were implemented by the OCR Final Rule,

and arise under regulations §§ 17.01(b), 17.01(d), 17.01(e) and 17.02(c). 17 CFR §§ 17.01(b), 17.01(d),

17.01(e) and 17.02(c). As noted above, New Form 102B is an entirely new form introduced by the OCR

Final Rule, and as a result there is no legacy Form 102B reporting method.

24 As noted in sections D and F above, the transition from Legacy Form 102 and the Legacy Form 102S

filing to New Form 102A and New Form 102S will occur at 11:59 p.m. eastern time on September 30,

2015, or such earlier date that the Division may determine.

10

commence an enforcement action against a Reporting Party for failure to report SEF Volume

Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m. Eastern Time

on February 13, 2017

commence an enforcement action against a Reporting Party for failure to report SEF Volume

Threshold Accounts via New Form 102B, as required by Part 17, until 11:59 p.m. Eastern Time

on February 13, 2017. 25

The no-action relief described in this section H is also subject to the following condition:

• Reporting Party Cooperation with ODT Staff to Test and Implement Electronic Reporting

Methods

o Prior to the implementation of electronic reporting of SEF Volume Threshold

Accounts via New Form 102B on February 13, 2017, Reporting Parties are

expected to cooperate with ODT staff as requested to test and implement any

information technology standards or systems associated with the OCR Final Rule

as contemplated in the rulemaking.26 During this testing period leading up to the

February 13, 2017 implementation, Reporting Parties are expected to provide all

test data or form filings requested by ODT staff, in the form and manner described

on the OCR testing page of the CFTC website.27

I. Conditional No-action Relief from Submitting Information via New Form 40/40S

and New Form 71 Until 11:59 p.m. Eastern Time on February 11, 2016

Summary of Relief Granted: The Division is providing relief from electronically reporting via

New Form 40/40S and New Form 71 until 11:59 p.m. Eastern Time on February 11, 2016,

provided that Reporting Parties comply with the Form 40/40S reporting practice that was in

place prior to the implementation of the OCR Final Rule, by reporting via Legacy Form 40 and

the Legacy 40S Filing (as such terms are defined below) until 11:59 p.m. Eastern Time on

February 11, 2016, or such earlier date that the Division may determine

until 11:59 p.m. Eastern Time on February 11, 2016,

provided that Reporting Parties comply with the Form 40/40S reporting practice that was in

place prior to the implementation of the OCR Final Rule, by reporting via Legacy Form 40 and

the Legacy 40S Filing (as such terms are defined below) until 11:59 p.m. Eastern Time on

February 11, 2016, or such earlier date that the Division may determine.

The Division believes that time-limited no-action relief is warranted for certain additional

reporting obligations under Parts 17 and 18 of the Commission’s regulations that were

implemented by the OCR Final Rule. Subject to the conditions below, the Division will not

recommend that the Commission commence an enforcement action against a Reporting Trader28

for failure to report via New Form 40, as required by Part 18. In addition, the Division will not

recommend that the Commission commence an enforcement action against a Reporting Party for

failure to report via New Form 71, as required by Part 17.29 The no-action relief with respect to

25 The reporting requirements with respect to New Form 102B were implemented by the OCR Final Rule,

and arise under regulations §§ 17.01(b), 17.01(d), 17.01(e) and 17.02(c). 17 CFR §§ 17.01(b), 17.01(d),

17.01(e) and 17.02(c). As noted above, New Form 102B is an entirely new form introduced by the OCR

Final Rule, and as a result there is no legacy Form 102B reporting method.

26 OCR Final Rule at 69188-69189.

27 See http://www.cftc.gov/Forms/OCR/Testing

28 As used herein, “Reporting Traders” means parties that are obligated to report pursuant to the OCR

Final Rule on New Form 40/40S. See regulations §§18.04 and 20.5. 17 CFR §§ 18.04 and 20.5.

11

an entirely new form introduced by the OCR

Final Rule, and as a result there is no legacy Form 102B reporting method.

26 OCR Final Rule at 69188-69189.

27 See http://www.cftc.gov/Forms/OCR/Testing

28 As used herein, “Reporting Traders” means parties that are obligated to report pursuant to the OCR

Final Rule on New Form 40/40S. See regulations §§18.04 and 20.5. 17 CFR §§ 18.04 and 20.5.

11

New Form 40 and New Form 71 described in this paragraph ends in each case at 11:59 p.m.

Eastern Time on February 11, 2016.

The no-action relief described above with respect to New Form 40 is subject to Reporting

Traders reporting via Legacy Form 40 until 11:59 p.m. Eastern Time on February 11, 2016, or

such earlier date that the Division may determine. Such reporting must be consistent in all

respects with the time, form and manner of the Legacy Form 40 reporting practice. In particular,

this no-action relief is subject to Reporting Traders reporting via Legacy Form 40 in accordance

with the following condition:

• Report via Legacy Form 40

o As used herein, “Legacy Form 40” refers to the Form 40 required prior to the

implementation of the OCR Final Rule, which is available on the Commission’s

website.30 See Appendix B hereto for additional instructions for completing

Legacy Form 40 in accordance with the legacy reporting practice.

o Every trader who holds or controls a reportable futures and option position must,

after a special call upon such trader by the Commission or its designee, file with

the Commission a “Statement of Reporting Trader” on Legacy Form 40, at such

time and place as directed in the call

reto for additional instructions for completing

Legacy Form 40 in accordance with the legacy reporting practice.

o Every trader who holds or controls a reportable futures and option position must,

after a special call upon such trader by the Commission or its designee, file with

the Commission a “Statement of Reporting Trader” on Legacy Form 40, at such

time and place as directed in the call.

o The Legacy Form 40 reporting practice described above and on Appendix B is

referred to herein as the “Legacy Form 40 reporting practice.”

The no-action relief described in this section is also subject to the following condition:

• Reporting Party Cooperation with ODT Staff to Test and Implement Electronic Reporting

Methods

o Prior to the implementation of electronic reporting via New Form 40 and New

Form 71 on February 11, 2016, Reporting Parties are expected to cooperate with

ODT staff as requested to test and implement any information technology

standards or systems associated with the OCR Final Rule as contemplated in the

rulemaking.31 During this testing period leading up to the February 11, 2016

implementation, Reporting Parties are expected to provide all test data or form

filings requested by ODT staff, in the form and manner described on the OCR

testing page of the CFTC website.32

29 The reporting requirements with respect to New Form 40 and New Form 71 were implemented by the

OCR Final Rule, and arise under regulations §§ 18.04 (New Form 40), 17.01(c), and 17.01(e) (New Form

71). 17 CFR §§ 18.04, 17.01(c), and 17.01(e). As noted above, New Form 71 is an entirely new form

introduced by the OCR Final Rule, and as a result there is no legacy Form 71 reporting method.

30 See the link below to the Commission’s website for a copy of Legacy Form 40:

http://www.cftc.gov/Forms/ssLINK/cftcform40

31 OCR Final Rule at 69188-69189.

32 See http://www.cftc.gov/Forms/OCR/Testing

12

17 CFR §§ 18.04, 17.01(c), and 17.01(e). As noted above, New Form 71 is an entirely new form

introduced by the OCR Final Rule, and as a result there is no legacy Form 71 reporting method.

30 See the link below to the Commission’s website for a copy of Legacy Form 40:

http://www.cftc.gov/Forms/ssLINK/cftcform40

31 OCR Final Rule at 69188-69189.

32 See http://www.cftc.gov/Forms/OCR/Testing

12

For the avoidance of doubt, the no-action relief and conditions described in this section I with

respect to New Form 40 also apply to the obligation to submit New Form 40S pursuant to

regulation § 20.5(b).33 As a result, all references in this section I to New Form 40 and Legacy

Form 40, including the no-action relief and conditions described in this section I, shall apply

equally to New Form 40S and the legacy 40S filing (the “Legacy 40S Filing”) required by

regulation § 20.5(b). The reporting practice by which parties submit the Legacy 40S Filing in

accordance with regulation § 20.5(b) is referred to herein as the “Legacy 40S reporting practice.”

J. Conclusion

The no-action relief provided in this no-action letter is time-limited, and ends in all respects as

follows:

• The no-action relief provided in section D (102A Submission) of this no-action letter

ends at 11:59 p.m. Eastern Time on September 30, 2015;

• The no-action relief provided in section F (102S Submission) of this no-action letter ends

at 11:59 p.m. Eastern Time on September 30, 2015;

• The no-action relief provided in section G (102B Submission- DCM Volume Threshold

Accounts) of this no-action letter ends at 11:59 p.m. Eastern Time on September 30,

2015;

• The no-action relief provided in section H (102B Submission- SEF Volume Threshold

Accounts) of this no-action letter ends at 11:59 p.m

) of this no-action letter ends

at 11:59 p.m. Eastern Time on September 30, 2015;

• The no-action relief provided in section G (102B Submission- DCM Volume Threshold

Accounts) of this no-action letter ends at 11:59 p.m. Eastern Time on September 30,

2015;

• The no-action relief provided in section H (102B Submission- SEF Volume Threshold

Accounts) of this no-action letter ends at 11:59 p.m. Eastern Time on February 13,

2017; and

• The no-action relief provided in section I (40/40S and 71 Submission) of this no-action

letter ends at 11:59 p.m. Eastern Time on February 11, 2016.

33 17 CFR § 20.5(b).

13

_______________________________

This letter, and the no-action position taken herein, which is based on your representations,

represents the views of the Division only, and does not necessarily represent the position or

views of the Commission or of any other division or office of the Commission’s staff. The no-

action position taken herein does not excuse affected persons from compliance with any other

applicable requirements of the Commodity Exchange Act or the regulations thereunder. As with

all no-action letters, the Division retains the authority to, in its discretion, further condition,

modify, suspend, terminate or otherwise restrict the terms of the no-action relief provided herein.

If you have any questions concerning this correspondence, please contact Sebastian Pujol Schott,

Associate Director, DMO, at (202) 418-5641, or Mark Schlegel, Special Counsel, DMO, at (202)

418-5055.

Sincerely yours,

Vincent McGonagle

Director

Division of Market Oversight

14

er condition,

modify, suspend, terminate or otherwise restrict the terms of the no-action relief provided herein.

If you have any questions concerning this correspondence, please contact Sebastian Pujol Schott,

Associate Director, DMO, at (202) 418-5641, or Mark Schlegel, Special Counsel, DMO, at (202)

418-5055.

Sincerely yours,

Vincent McGonagle

Director

Division of Market Oversight

14

Appendix A34

Detailed Instructions on Submitting Legacy Form 10235

Special account designation and identification.

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 on Legacy Form 102, in

the form and manner specified in section D of this no-action letter, showing the information in

paragraphs (a) through (f) of this Appendix A.

(a) Special account designator. A unique identifier for the account, provided, that the same

designator is assigned for option and futures reporting, and the designator is not changed or

assigned to another account without prior approval of the Commission or its designee.

(b) Special account identification. The name, address, business phone, and for individuals, the

person’s job title and employer for the following:

(1) The person originating the account, if the special account is a house omnibus or customer

omnibus account; or

(2) 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:

ndividuals, the

person’s job title and employer for the following:

(1) The person originating the account, if the special account is a house omnibus or customer

omnibus account; or

(2) 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:

(i) The registration status of the person as a commodity trading advisor or a securities

investment advisor;

(ii) The legal organization of the person and the person’s principal business or occupation;

(iii) Account numbers and account names included in the special account, if different than

supplied in paragraph (b)(2) of this Appendix A;

(iv) The name and location of all persons not identified in paragraph (b)(2) of this Appendix A

having a ten percent or more financial interest in the special account, indicating those having

discretionary trading over the account; and

(v) 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)(2)

or (b)(2)(iv) of this Appendix A; or

(3) The account controller, if trading of the special account is controlled by a person or legal

entity who is an independent account controller for the account owners as defined in § 150.1(e)

of the Commission’s regulations. And, in addition:

e names and

locations of all persons with trading authority that have not been identified in paragraphs (b)(2)

or (b)(2)(iv) of this Appendix A; or

(3) The account controller, if trading of the special account is controlled by a person or legal

entity who is an independent account controller for the account owners as defined in § 150.1(e)

of the Commission’s regulations. And, in addition:

(i) The registration status of the person as a commodity trading advisor or a securities

investment advisor;

(ii) [Reserved]

34 See the link below to the Commission’s website for general information on submitting forms to the

Commission:

http://www.cftc.gov/Forms/index.htm

35 See the link below to the Commission’s website for a copy of Legacy Form 102:

http://www.cftc.gov/Forms/ssLINK/cftcform102

15

(iii) If fewer than ten accounts are under control of the independent advisor, for each account

the account number and the name and location of each person having a ten percent or more

financial interest in the account; and

(iv) On call by the Commission or its designee, for each account controlled by the independent

advisor, the account number and account name and the name and location of each person having

a ten percent or more financial interest in the account.

(c) [Reserved]

(d) Commercial use. 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).

or more financial interest in the account.

(c) [Reserved]

(d) Commercial use. 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).

(e) Account executive. 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.

(f) Reporting firms. The name and address of the futures commission merchant, clearing

member, or foreign broker carrying the account, and the name, title and business phone of the

authorized representative of the firm filing the Legacy Form 102 and the date of the Legacy

Form 102. The authorized representative shall sign the Legacy Form 102 or satisfy such other

requirements for authenticating the report as instructed in writing by the Commission or its

designee.

16

Appendix B

Detailed Instructions on Submitting Legacy Form 4036

Every trader who holds or controls a reportable futures and option position shall after a special

call upon such trader by the Commission or its designee file with the Commission a “Statement

of Reporting Trader” on the Legacy Form 40 at such time and place as directed in the call. All

traders shall complete part A of the Legacy Form 40 and, in addition, shall complete:

Part B--If the trader is an individual, a partnership or a joint tenant

es and option position shall after a special

call upon such trader by the Commission or its designee file with the Commission a “Statement

of Reporting Trader” on the Legacy Form 40 at such time and place as directed in the call. All

traders shall complete part A of the Legacy Form 40 and, in addition, shall complete:

Part B--If the trader is an individual, a partnership or a joint tenant.

Part C--If the trader is a corporation or type of trader other than an individual, partnership, or

joint tenant.

(a) Information to be furnished by all traders in part A of the Legacy Form 40 shall include:

(1) Name and address of reporting trader.

(2) Principal business and occupation of the reporting trader and, in addition, whether

transactions are made for, on behalf of, or in association with, a customer trading program of a

futures commission merchant, a commodity pool, a producer cooperative, any business

activities in which the trader is commercially engaged, or for personal use.

(3) Type of trader.

(4) Registration status with the Commission, if any.

(5) The name and address of each person whose option or futures trading is controlled by the

reporting trader. Provided that if the reporting trader is a customer trading program, or the

commodity trading advisor thereof, that is a managed or guided account program in which

ten or more persons participate, the information furnished may be limited to the name of any

commodity pool which participates in the program and the name and address of the CPO.

(6) The name, address and business phone of each person who controls the trading of the

reporting trader.

ng program, or the

commodity trading advisor thereof, that is a managed or guided account program in which

ten or more persons participate, the information furnished may be limited to the name of any

commodity pool which participates in the program and the name and address of the CPO.

(6) The name, address and business phone of each person who controls the trading of the

reporting trader.

(7) The names and locations of all futures commission merchants, clearing members,

introducing brokers, and foreign brokers through whom accounts owned or controlled by the

reporting trader are carried or introduced at the time of filing a Legacy Form 40, if such accounts

are carried through more than one futures commission merchant, clearing member or foreign

broker or carried through more than one office of the same futures commission merchant,

clearing member or foreign broker, or introduced by more than one introducing broker clearing

accounts through the same futures commission merchant, and the name of the reporting trader’s

account executive at each firm or office of the firm.

(8) The names and locations (city and state) of persons who guarantee the futures or option

trading accounts of the reporting trader or who have a financial interest of 10 percent or more in

the reporting trader or the accounts of the reporting trader.

(9) The following information concerning other option or futures trading accounts which the

reporting trader guarantees or other futures or option traders or accounts in which the reporting

trader has a financial interest of 10 percent or more:

nts of the reporting trader or who have a financial interest of 10 percent or more in

the reporting trader or the accounts of the reporting trader.

(9) The following information concerning other option or futures trading accounts which the

reporting trader guarantees or other futures or option traders or accounts in which the reporting

trader has a financial interest of 10 percent or more:

(i) The names of traders for whom the reporting trader guarantees accounts or in which the

reporting trader has a financial interest;

36 See the link below to the Commission’s website for a copy of Legacy Form 40:

http://www.cftc.gov/Forms/ssLINK/cftcform40

17

(ii) The names of the accounts that the reporting trader guarantees or in which the reporting

trader has a financial interest; and

(iii) The names and locations of the brokerage firms at which the accounts are carried.

(10) Information concerning ownership or control by a foreign government, agent of a foreign

government entity specially acknowledged by a statute or regulation of a foreign jurisdiction or

entity financed by a foreign government either through ownership of capital assets or provision

of operating expenses.

(11) Signature of the trader and date of signing the report. If the reporting trader is an

organization, the signature must be that of a partner, officer or trustee authorized to sign on

behalf of that organization.

by a statute or regulation of a foreign jurisdiction or

entity financed by a foreign government either through ownership of capital assets or provision

of operating expenses.

(11) Signature of the trader and date of signing the report. If the reporting trader is an

organization, the signature must be that of a partner, officer or trustee authorized to sign on

behalf of that organization.

(b) Information to be furnished in part B of the Legacy Form 40 shall include:

(1) Business telephone number of the reporting trader.

(2) Employer and job title if the reporting trader is an individual.

(3) The following information if a trader makes transactions or holds positions in a futures or

option contract where such transactions or positions normally represent a substitute for

transactions to be made or positions to be taken at a later time in a physical marketing

channel, and the transactions or positions are economically appropriate to the reduction of risks

in the conduct and management of a commercial enterprise:

(i) Commercial activity associated with use of the option or futures market (such as and

including production, merchandising or processing of a cash commodity, asset or liability risk

management by depository institutions, or security portfolio risk management).

(ii) Physical commodities underlying use of the futures or option markets.

(iii) Futures or option markets used.

(4) The name, address, and type of any organization in which the reporting trader participates

in the management if such organization holds another futures or option trading account.

(5) If the reporting trader is a partnership or joint tenant, the name and address of each partner

(excluding limited partners in commodity pools) or joint tenant and the name of the partner or

joint tenant who ordinarily places orders.

ype of any organization in which the reporting trader participates

in the management if such organization holds another futures or option trading account.

(5) If the reporting trader is a partnership or joint tenant, the name and address of each partner

(excluding limited partners in commodity pools) or joint tenant and the name of the partner or

joint tenant who ordinarily places orders.

(c) Information to be furnished in part C of the Legacy Form 40 shall include:

(1) Whether or not the reporting trader is organized under the laws of any state (including the

District of Columbia) or territory or possession of the United States or under the laws of any

foreign jurisdiction. Reporting traders organized outside the jurisdiction of the United States

must indicate the country of origin.

(2) The names of parent firms and whether or not they are organized under the laws of any

state (including the District of Columbia) or territory of possession of the United States and the

location of each headquarter’s office.

(3) Names and locations of all subsidiary firms that trade in commodity futures or options and

whether or not the subsidiary firms are organized under the law of any state (including the

District of Columbia) or territory or possession of the United States.

(4) Name, address, and business telephone number of person(s) actually controlling the trading

and, if different persons are responsible for different commodities or options, the commodities or

options for which each controller has responsibility.

(5) Name, office address and business telephone number of person or persons to contact

regarding trading.

18

ssession of the United States.

(4) Name, address, and business telephone number of person(s) actually controlling the trading

and, if different persons are responsible for different commodities or options, the commodities or

options for which each controller has responsibility.

(5) Name, office address and business telephone number of person or persons to contact

regarding trading.

18

(6) The following information if a trader makes transactions or holds positions in a futures or

option contract where such transactions or positions normally represent a substitute for

transactions to be made or positions to be taken at a later time in a physical marketing channel

and the transactions or positions are economically appropriate to the reduction of risks in the

conduct and management of a commercial enterprise:

(i) Commercial activity associated with use of the option or futures market (e.g., production,

merchandising or processing of a cash commodity, asset/liability risk management by depository

institutions, security portfolio risk management, etc.)

(ii) Physical commodities underlying use of the futures or option markets.

(iii) Futures or option markets used.

19