having local jurisdiction over the contract market.

(3) Notwithstanding the provisions of this paragraph (d), a contract market may submit any such rule to the Commission for its approval pursuant to the provisions of section 5a(12) of the Act and paragraph (b) of this section.

(4) The Commission may remit to the contract market, with an appropriate explanation where practicable, and not accept pursuant to this paragraph any rule which the Commission determines to be a rule that is not exempt from the provisions of section 5a(12) of the Act and paragraphs (b) or (c) of this section.

(e) Membership changes. Each contract market shall promptly furnish the Commission with written notification of any changes in its membership. One copy of such notification shall be furnished to the Commission at its Washington, D.C., headquarters, and one copy shall be transmitted to the regional office of the Commission having local jurisdiction over the contract market.

(f) Temporary emergency rules. In the event of an emergency, a contract market, by a two-thirds vote of its governing board, may place into immediate effect a temporary emergency rule to deal with the emergency without prior Commission approval, and without compliance with the ten-day notice requirement pursuant to section 5a(12) of the Act and paragraphs (b) and (c) of this section, respectively, subject to the following provisions:

(1) A temporary emergency rule, including any modification thereof, may not extend beyond the duration of the emergency, as determined by the contract market; but in no event shall a temporary emergency rule, or any modification thereof, continue, without express Commission authorization, beyond 30 days after the temporary emergency rule is first put into effect. In no event shall a temporary emergency rule, or any modification thereof, remain in effect for more than 90 days after the temporary emergency rule is first put into effect.

(2) The contract market shall notify the Commission at its Washington, D.C., headquarters of the adoption,

modification and termination of a temporary emergency rule by the fastest available means of communication. A written copy of each such temporary emergency rule, and any modification and termination thereof, shall promptly thereafter be furnished to the Commission at its Washington, D.C., headquarters, along with a complete explanation of the emergency and the action taken to meet the emergency; two additional such copies shall also be promptly furnished by the contract market to the regional office of the Commission having local jurisdiction over the contract market.

(3) A temporary emergency rule may provide for, or may authorize the contract market, or the governing board thereof or any committee thereof, to undertake actions necessary or appropriate to meet the emergency, including, but not limited to, such actions as:

(i) Limiting trading to liquidation only, in whole or in part, or limiting trading to liquidation only except for new sales by parties who have the commodity to deliver pursuant to such sales;

(ii) Extending or shortening the expiration date for trading in contracts; (iii) Extending the time of delivery; (iv) Changing delivery points; (v) Ordering the liquidation of contracts, the fixing of a settlement price or the reduction in positions;

(vi) Ordering the transfer of contracts, and the money, securities, and property securing such contracts, held on behalf of customers by a member of the contract market to another member, or other members, of the contract market willing to assume such contracts or obligated to do so;

(vii) Extending, limiting or changing hours of trading;

(viii) Suspending trading; and

(ix) Modifying or suspending any provision of the rules of the contract market.

(g) Physical emergencies. In the event the physical functions of a contract market are, or are threatened to be, severely and adversely affected by a "physical emergency," such as fire or other casualty, bomb threats, substantial inclement weather, power failures, communications breakdowns, or transportation breakdowns, a contract

market official, duly authorized to take such action for and on behalf of the contract market with respect to such a "physical emergency" pursuant to a rule of the contract market that has been approved by the Commission or has become effective pursuant to section 5a(12) of the Act and these regulations, may take any action authorized by such rule necessary or appropriate to deal with the emergency, including, but not limited to, suspending trading on the contract market. In no event, however, shall suspension of trading on the contract market by such a designated official continue in effect for more than five (5) days. If so authorized by such a rule of the contract market, the designated official may also order restoration of trading on the contract market, or removal of other restrictions imposed by the official as permitted by this paragraph (g), in the absence of action by the governing board of the contract market, upon a determination by such official that the "physical emergency" has sufficiently abated to permit the physical functions of the contract market to continue in an orderly

manner.

(h) Stock index contracts. (1) Notwithstanding the provisions of paragraph (b) of this section, all changes in the composition, computation, or method of stock selection of a stock index in which a contract market is designated to trade futures contracts, or options on such futures contracts, shall be deemed approved by the Commission at the time such changes are adopted by a contract market if:

(i) The index is compiled for commercial purposes by an independent third party;

(ii) The change is consistent with a rule of the contract market which has been approved by the Commission for this purpose which specifically defines, or establishes standards governing, the composition of the stock index upon which the designated futures are authorized to trade; and

(iii) The contract market provides the Commission with written notice of the change within five days after the change is adopted by the contract market; and

(iv) The contract market labels the written notice as being submitted pursuant to paragraph (h) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of a change in the composition, computation, or method of stock selection of a stock index, notify the contract market making that submission if it appears that the change is not consistent with the definition of the composition of, or standards governing, the stock index which has been approved by the Commission. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section. (i) Other index contracts. (1) Notwithstanding the provisions of paragraph (b) of this section, all changes in the composition, computation, or method of selection of an index other than a stock index in which a contract market is designated to trade futures or option contracts shall be deemed approved by the Commission at the time such changes are adopted by a contract market if:

(i) The index is compiled by an independent third party whose business relates to the collection or dissemination of price information and which was not formed solely for the purpose of compiling an index for use in connection with a futures or option contract;

(ii) The change is consistent with a rule of the contract market which has been approved by the Commission for this purpose, which specifically defines or establishes standards governing the composition of the index upon which designated futures or commodity options are authorized to trade;

(iii) The contract market provides the Commission with written notice of the change within five days after the change is adopted by the contract market; and

(iv) The contract market labels the written notice as being submitted pursuant to paragraph (i) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of a change in the composition, computation, or method of selection of an index, notify the contract market making the submission if it ap

pears that the change is not consistent with the provisions of this paragraph. Upon such notificatior: by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section. (j) Survey lists. (1) Notwithstanding the provisions of paragraph (b) of this section, all changes in lists of banks, brokers, dealers or other entities which provide price or cash market information to a contract market for purposes of computing cash settlement prices or a cash price series, or for defining deliverable supply, shall be deemed approved by the Commission at the time such changes are adopted by a contract market if:

(i) The change is consistent with a rule of the contract market which has been approved by the Commission for this purpose and which establishes standards or criteria for the persons or entities which qualify for the list;

(ii) The contract market provides the Commission with written notice of the change within three days after the change is adopted by the contract market; and

(iii) The contract market labels the written notice as being submitted pursuant to paragraph (j) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of a change in such a list, notify the contract market making the submission if it appears that the change is not consistent with the provisions of this paragraph. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section.sono add (k) Trading hours. (1) Notwithstanding the provisions of paragraph (b) of this section, all changes in trading hours which do not permit trading to open before 7:00 a.m. or close after 6:00 p.m. local time in the city where the contract market is located shall be deemed approved by the Commission at the close of business one business day after written notice of such a change is received by the Commission if:

(i) The change is not inconsistent with any provision of the Act or the Commission's regulations; and

(ii) The contract market labels the written notice as being submitted pursuant to paragraph (k) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of a change in trading hours, notify the contract market making the submission if it appears that the change is not consistent with some provision of the Act or the Commission's regulations. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section.

(1) Trading months. (1) Notwithstanding the provisions of paragraph (b) of this section, all changes in trading months shall be deemed approved by the Commission ten days after written notice of such a change is received by the Commission if:

(i) The change is consistent with a rule of the contract market governing the listing of trading months which has been approved by the Commission;

(ii) The change does not provide for the listing of a trading month more than 18 months in the future;

(iii) The change does not provide for the listing of a trading month -utside the currently established cycle of trading months; and

(iv) The contract market labels the written notice as being submitted pursuant to paragraph (1) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of a change in the listing of trading months, notify the contract market making the submission if it appears that the change is not consistent with the provisions of this paragraph. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section.

(m) Contract terms established by independent third parties. (1) Notwithstanding the provisions of paragraph (b) of this section, changes in grades or standards of commodities on which futures or options contracts are based, which are established, selected or cal

culated by independent third parties and which are incorporated by reference as terms of a contract, shall be deemed approved by the Commission ten days after written notice of such a change is received by the Commission if:

(i) The grade or standard is established, selected or calculated by an independent third party for purposes other than solely for use in connection with a futures or options contract;

(ii) The change is consistent with a rule of the contract market which has been approved by the Commission for this purpose, and with the Act and the Commission's regulations; and

(iii) The contract market labels the written notice as being submitted pursuant to paragraph (m) of this section.

(2) The Commission will, within ten days after receipt by the Commission of notice of such a change, notify the contract market making the submission if it appears that the change is not consistent with the provisions of this paragraph. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section.

(n) Other changes. (1) Notwithstanding the provisions of paragraph (b) of this section, changes in the terms and conditions of a futures or option contract other than those changes specified in paragraphs (h)-(m) of this section shall be deemed approved by the Commission at such time as the Commission shall specify if:

(i) The Commission notifies the contract market in writing, at the time of contract market designation, or such other time as the Commission may deem appropriate, that certain changes in terms and conditions may be submitted pursuant to the provisions of this paragraph;

(ii) The change is consistent with standards established by the Commission in its notification to the contract market of the applicability of this paragraph, and with the Act and the Commission's regulations; and

(iii) The contract market labels the written notice as being submitted pursuant to paragraph (n) of this section.

(2) The Commission will within ten days after receipt by the Commission of notice of a change submitted pursuant to this paragraph, notify the contract market making the submission if it appears that the change is not consistent with standards established by the Commission. Upon such notification by the Commission to the contract market, the change will be subject to the usual procedures under section 5a(12) of the Act and paragraph (b) of this section.

(3) The Commission may at any time alter or revoke the applicability of this paragraph to any particular contract. (Approved by the Office of Management and Budget under control numbers 30380007 and 3038-0022)

[41 FR 40098, Sept. 17, 1976, as amended at 46 FR 54523, Nov. 3, 1981; 46 FR 63035, Dec. 30, 1981; 48 FR 4259, Jan. 28, 1983; 48 FR 49008, Oct. 24, 1983; 50 FR 30138, July 24, 1985; 50 FR 31839, Aug. 7, 1985]

§ 1.41a Delegation of authority to the Directors of the Division of Trading and Markets and the Division of Economic Analysis to process certain contract market rules.

(a) The Commission hereby delegates, until the Commission orders otherwise, the following authority to the Director of the Division of Trading and Markets and to the Director of the Division of Economic Analysis, to be exercised by either of such Directors or by such other employee or employees of the Commission under the supervision of such Directors as may be designated from time to time by the Directors:

(1) Pursuant to § 1.41(b) or § 1.41(c), to determine whether to remit to a contract market and not accept for review any rule submitted pursuant to section 5a(12) of the Act and § 1.41(b) or § 1.41(c), where the Director determines that such rule submission does not comply with the form and content requirements set forth in § 1.41(b);

(2) Pursuant to § 1.41(b), to notify a contract market that a rule submitted pursuant to section 5a(12) of the Act and § 1.41(c) relates to terms and conditions, as defined in § 1.41(a)(2);

(3) Pursuant to § 1.41(c), to determine that rules submitted under § 1.41(c) do not require prior Commis

sion approval under section 5a(12) of the Act and § 1.41(b) and that such rules may become effective prior to the expiration of the ten day period following the receipt of such rules by the Commission; and

(4) Pursuant to § 1.41(d), to determine whether to remit to a contract market any rule submitted pursuant to section 5a(1) of the Act and § 1.41(d), where the Director determines that such rule submission is not exempt from the provisions of section 5a(12) of the Act and § 1.41(b) or § 1.41(c).

(5) Pursuant to § 1.41(h)—(n) to determine whether contract market rules submitted pursuant to section 5a(12) of the Act and the provisions of § 1.41(h)-(n) comply with the provisions of § 1.41(h)-(n), as applicable, and, if not, to notify the submitting contract market that such rules are therefore subject to the procedures specified in section 5a(12) of the Act and § 1.41(b).

(b) The Director of the Division of Trading and Markets or the Director of the Division of Economic Analysis may submit to the Commission for its consideration any matter which has been delegated pursuant to paragraph (a) of this section.

(c) Nothing in this section shall be deemed to prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets and the Director of the Division of Economic Analysis under this section. [48 FR 49009, Oct. 24, 1983, as amended at 50 FR 30140, July 24, 1985]

§ 1.41b Delegation of Authority to the Director of the Division of Trading and Markets and Director of the Division of Economic Analysis.

(a) The Commission hereby delegates, until the Commission orders otherwise, to the Director of the Division of Trading and Markets and the Director of the Division of Economic Analysis, with the concurrence of the General Counsel or his or her delegee, to be exercised by either of such Directors or by such other employee or employees of the Commission under the supervision of such Directors as may be designated from time to time

by the Directors, the authority to approve, pursuant to section 5a(12) of the Act and § 1.41(b), contract market rules that relate to terms and conditions and that:

(1) Do not materially change the quantity, quality, or other delivery specifications, procedures or obligations under a contract designated for trading by the Commission (such as, but not limited to, rules affecting procedures for inspecting, grading or weighing a commodity, the costs of such procedures, notice deadlines, payment procedures, the content of delivery forms and other similar procedures); or

(2) Reflect routine modifications that are expressly required or anticipated by the specific terms of a contract market rule (such as the specification of delivery grades, growths or differentials, the listing of trading months or the modification of trading hours).

(3) [Reserved]

(4) Are substantially identical to a rule of another contract market which has been approved previously by the Commission pursuant to section 5a(12) of the Act; or

(5) Are consistent with a specific, stated policy, or interpretation of the Commission.

(b) The Director of the Division of Trading and Markets or the Director of the Division of Economic Analysis may submit to the Commission for its consideration any matter which has been delegated pursuant to paragraph (a) of this section.

(c) Nothing in this section shall be deemed to prohibit the Commission, at its election, from exercising the authority delegated to the Director of the Division of Trading and Markets and the Director of the Division of Economic Analysis under this section.

[49 FR 25426, June 21, 1984, as amended at 50 FR 30141, July 24, 1985; 52 FR 779, Jan. 9, 1987]

§ 1.42 Delivery notice; filing of copy.

(a) Upon special call from the Commission or its designee, each contract market shall furnish or cause to be furnished promptly to the Commission for the futures or option contracts