Proposed Rule2023 | 2022 | 2021 | 2020 | 2019 | Show more years
(Additions are underscored and deletions are stricken through)
PROCEDURES FOR RELIEF REQUESTS
SECTION E1. DEFINITION."Relief request" means a request:
E1-a. Debt-Equity Ratio. Under Section 3 and CFTC Regulation 1.17(d) for exemption from the minimum debt-equity ratio;
E1-b. Withdrawal of Capital. Under Schedule B, Section B2-c and CFTC Regulation 1.17(e) to withdraw equity capital;
E1-c. Consolidation. Under Schedule A, Section A7-b(ii) and CFTC Regulation 1.17(f)(2)(ii) for approval of consolidation;
E1-d. Secured Demand Notes. Under Schedule C, Section C1-a(v)(B) and CFTC Regulation 1.17(h)(1)(v)(B) for approval of terms in a secured demand note relating to the conditions for the making of a demand;
E1-e. Subordinated Borrowings; Prepayment. Under Schedule C, Section C1-b(vii) and CFTC Regulation 1.17(h)(2)(vii) to prepay subordinated borrowings;
E1-f. Emergency Subordination. Under Schedule C, Section C3 and CFTC Regulation 1.17(h)(4) for approval of an emergency subordination;
E1-g. Fiscal-Year Election. Under Schedule D, Section D4-c and either CFTC Regulation 1.10(e) or 4.22(g) for approval of a change in a fiscal-year election;
E1-h. Filing Extension. Under Schedule D, Section D4-d and CFTC Regulations 1.10(f) and 1.16(f) or 4.22(f) for a filing extension; or
E1-i. Uncovered Commodities. Under Schedule A, Section A2-e, for a no-action position regarding the 20 percent charge on "uncovered" commodities deposited as collateral. A no-action position may be taken regarding commodities which are covered, but do not appear as hedged on the books of the Member FCM.
SECTION E2. FILING. A Member FCM or IB that has filed any relief request with its DSRO or any Member CPO that has filed such a request with NFA need not file such request with the CFTC. For the purposes of this Schedule E the term "DSRO" as used in regard to Member CPOs shall mean NFA. The DSRO will promptly advise the CFTC of the request and use its best efforts to provide the CFTC with all pertinent information available to the DSRO.
SECTION E3. GRANT OF RELIEF REQUEST; EFFECT OF. Except where the relief requested is the withdrawal of equity capital or the prepayment of subordinated borrowings (See E2-b and E2-e, above), the DSRO may, in its discretion, grant the relief request without receiving the prior concurrence of the CFTC. Any such grant of relief shall be valid and shall remain in full force and effect unless or until reversed by the CFTC or withdrawn by the DSRO on its own initiative. The Member FCM, IB or CPO shall be deemed in compliance with the applicable provision (See E1, above) of these Financial and Related Reporting Requirements and related CFTC Regulations during the effective period of any such grant. No violation of these Requirements or related CFTC Regulations by the Member FCM, IB or CPO shall occur for having acted in accordance with the decision of the DSRO during its period of effectiveness. The DSRO will promptly advise the Member FCM, IB or CPO of any reversal by the CFTC or withdrawal by the DSRO.
SECTION E4. CFTC Concurrence. The DSRO will not approve any withdrawal of equity capital or prepayment of subordinated borrowings (See E1-b and E1-e, above) without first having received the concurrence of the CFTC. The DSRO will promptly advise the Member FCM, IB or CPO of the determination.
SECTION E5. INQUIRIES. All inquiries concerning the status of relief requests should be directed to the appropriate official of the Member FCM's, IB's or CPO's DSRO (the appropriate NFA official is the Director of Compliance). Every effort will be made to assure the prompt review and disposition of all relief requests.
SECTION E6. FURNISHING ADDITIONAL INFORMATION. In reviewing any relief request, additional information may be required from the Member FCM, IB or CPO. This information should be furnished as promptly as possible, unless the Member FCM, IB or CPO decides to withdraw the request. Failure to furnish the required information in a timely manner may be deemed to be a withdrawal of the relief request.
SECTION E7. COMPLIANCE WITH SCHEDULE; EFFECT OF. Compliance with the procedures set forth in this Schedule is expressly deemed by the CFTC to be satisfactory compliance by a Member FCM, IB or CPO with the provisions of the CFTC Regulations referenced in E1, above.