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00-14915 Rules Relating to Intermediaries of Commodity Interest Transactions Proposed Rule On February 22, 2000, a staff task force of the Commodity Futures Trading Commission ("CFTC" or "Commission") submitted a report to the CFTC's Congressional oversight committees entitled A New Regulatory Framework. To further the regulatory reform process, the Commission is proposing to revise its rules relating to intermediation of commodity futures and commodity options ("commodity interest") transactions. The proposed new rules would provide greater flexibility in several areas. To ease barriers to entry for persons seeking registration as futures commission merchants ("FCMs") or introducing brokers ("IBs"), the Commission would: Provide a simplified registration procedure for those persons wishing to operate as FCMs or IBs only on recognized derivatives transaction facilities "DTFs" for institutional customers, and who are regulated by other federal financial regulatory agencies; and eliminate the requirement to submit a certified financial report as part of the standard registration application for FCMs and IBs. For all registrants, the Commission would eliminate its rule requiring ethics training, replacing it with a Statement of Acceptable Practices. In addition, the Commission would respond favorably to a rule change of the National Futures Association ("NFA") that would relieve sales personnel dealing only with institutional customers of the requirement to pass a proficiency test. The Commission is also proposing to amend the definition of the term "principal" in Rule 3.1(a), mainly to eliminate inclusion of certain types of officers of a firm, and to make conforming amendments to other rules. Account opening procedures would be simplified to allow for all required disclosures (with the exception of arbitration agreements) to be acknowledged with a single signature, which may be an electronic signature. The obligation for FCMs and IBs to provide a specific disclosure statement would also be eliminated for a greater number of spohisticated customers. Electronic transmission of account statements would also be permitted, and the Commission's rules as to close-out of offsetting positions would be streamlined to allow for customer choice. Further, the Commission proposes to expand the range of instruments in which FCMs may invest customer funds. The Commission also requests comment concerning whether customers should be allowed to "opt out" of the rules requiring segregation of customer funds, and whether FCMs should be allowed to maintain, in the same customer segregated account, funds used for the purpose of securing or margining instruments other than those currently permitted. Finally, the Commission is considering the issuance of a separate order revising its previous pronouncements regarding the treatment of customer funds on deposit with FCMs for the purpose of trading on foreign markets. 2000-06-22 2000 6 https://www.federalregister.gov/documents/2000/06/22/00-14915/rules-relating-to-intermediaries-of-commodity-interest-transactions https://www.govinfo.gov/content/pkg/FR-2000-06-22/pdf/00-14915.pdf Commodity Futures Trading Commission 77 On February 22, 2000, a staff task force of the Commodity Futures Trading Commission ("CFTC" or "Commission") submitted a report to the CFTC's Congressional oversight committees entitled A New Regulatory Framework. To further the regulatory reform...

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