direct reconsideration of the order on such basis and in accordance with such procedures as it may determine.

(h)(1) The Director or Deputy Director of the Division of Trading and Markets shall give notice under paragraph (a) of this section only with the concurrence of the Director of the Division of Enforcement or his designee. The Executive Director shall give notice under paragraph (b) of this section only with the concurrence of the Director of the Division of Trading and Markets, the Director of the Division of Enforcement and the Deputy General Counsel, or their designees.

(2) For purposes of this section, notice to and service upon the applicant shall be sufficient if mailed first class properly addressed to the applicant at the address shown on his application or any amendment thereto, and shall be complete upon mailing; a record showing the date upon which a document was duly mailed, and by whom, prepared and retained in the normal course of Commission business, shall be adequate proof of service of the document. Documents submitted to the Executive Director or the Director of the Division of Trading and Markets shall be considered filed only upon actual receipt.

(i) The Commission reserves to itself the decision in any case whether to institute a proceeding to determine whether to refuse an applicant's registration for reasons other than the existence of circumstances described in paragraph (a)(1) of this section.

(j) Notwithstanding the provisions of §§ 3.51, 3.55 and 3.60, pending proceedings brought under this section shall continue to completion.

(Secs. 2(a)(1), 4c(a)–(d), 4d, 4f, 4g, 4k, 4m, 4n, 8a, 15 and 17, Commodity Exchange Act (7 U.S.C. 2, 4, 6c(a)-(d), 6f, 6g, 6k, 6m, 6n, 12a, 19 and 21; 5 U.S.C. 552 and 552b); secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 41, 4k, 4m, 4n, 40, 4p, 6, 8, 8a, 14, 15, 17 and 19 of the Commodity Exchange Act, 7 U.S.C. 2 and 4, 6, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m, 6n, 60, 6p, 8, 9, 9a and 13b, 12, 12a, 18, 19, 21 and 23 (1982); 5 U.S.C. 552 and 552b)

[45 FR 80491, Dec. 5, 1980, as amended at 49 FR 5524, Feb. 13, 1984; 49 FR 8218, Mar. 5, 1984]

§ 3.21 Exemption from fingerprinting requirement in certain cases.

(a) Any person who is required by this part to submit a fingerprint card may file, or cause to be filed, in lieu of such card: (1) A legible, accurate and complete photocopy of a fingerprint card which has been submitted to the Federal Bureau of Investigation for identification and appropriate processing and of each report, record, and notation made available by the Federal Bureau of Investigation with respect to that fingerprint card if such identification and processing has been completed satisfactorily by the Federal Bureau of Investigation not more than ninety days prior to the filing with the Commission of the National Futures Association of the photocopy; or (2) a statement that such person's application for initial registration in any ca pacity was granted within the preceding ninety days; Provided, That the provisions of paragraph (a)(2) shall not be applicable to any person who, by Commission rule, regulation, or order, was not required to file a fingerprint card in connection with such application for initial registration.

(b) Each photocopy and statement filed in accordance with the provisions of paragraph (a)(1) or (a)(2) of this section must be signed and dated. Such signature shall constitute a certification by that individual that the photocopy or statement is accurate and complete and must be made by:

(1) With respect to the fingerprints of an associated person. An officer, if the sponsor is a corporation, a general partner, if a partnership, or the sole proprietor, if a sole proprietorship;

(2) With respect to fingerprints of a floor broker. The applicant for registration; or

(3) With respect to the fingerprints of a principal. An officer, if the fu tures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant with which the principal will be affiliated is a corpora tion, a general partner, if a partnership, or the sole proprietor, if a sole proprietorship.

(Secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b)

[48 FR 35297, Aug. 3, 1983, as amended at 49 FR 5525, Feb. 13, 1984]

§ 3.22 Supplemental filings.

Notwithstanding any other provision of this chapter, the Commission or the Director of the Division of Trading and Markets or the Director's designee or the National Futures Association may, at any time, give written notice to any registrant, applicant for registration, or person required to be registered:

(a) That information has come to the attention of the Commission's or the National Futures Association's staff which, if true, could constitute grounds upon which to base a determination that the person is unfit to become, or to remain, registered in accordance with the Act or the regulations thereunder and setting forth such information in the notice, or that the Commission or the National Futures Association has undertaken a routine or periodic review of the registrant's fitness to remain so registered; and

(b) That the person, or any individual who, based upon his relationship with that person is required to file a Form 8-R in accordance with the requirements of this part, as applicable, must, within five days of receipt thereof, or such shorter period of time as the Commission or the National Futures Association may specify, complete and file with the Commission or the National Futures Association a current Form 8-R, in accordance with the instructions thereto, which must be accompanied by that individual's fingerprints on a fingerprint card provided by the Commission or the National Futures Association for that purpose.

(c) Failure to provide the requested information is a violation of the Commission's regulations which itself constitutes grounds upon which to base a determination that the registrant is unfit to become or to remain so registered.

(Approved by the Office of Management and Budget under control number 30380023)

(Secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[45 FR 8049, Dec. 5, 1980, as amended by 47 FR 27551, June 25, 1982; 49 FR 39532, Oct. 9, 1984]

§§ 3.23-3.29 [Reserved]

§ 3.30 Current address for purpose of delivery of communications from the Commission or the National Futures Association.

The address of each registrant, applicant for registration and principal, as submitted on the application for registration (Form 7-R or Form 8-R) or as submitted on the biographical supplement (Form 8-R) shall be deemed to be the address for delivery to the registrant, applicant or principal for any communications from the Commission or the National Futures Association, including any summons, complaint, reparation claim, order, subpoena, special call, request for information, notice, and other written documents or correspondence, unless the registrant, applicant or principal specifies another address for this purpose: Provided, That the Commission or the National Futures Association may address any correspondence relating to a biographical supplement submitted for or on behalf of a principal to the futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant with which the principal is affiliated and may address any correspondence relating to the registration of an associated person to the futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant with which the associated person or the applicant for registration is or will be associated as an associated person. Each registrant, while registered, and each principal, while affiliated with a registrant, must keep current the address on the application for registration, biographical supplement, or other address filed with the Commission or with the National Futures Association for the purpose of

receiving communications from the Commission or the National Futures Association. An order of default or other appropriate relief may be entered in any proceeding, including a reparation proceeding commenced while the registrant is registered or within two years thereafter, for failure to file a required response to any communication sent to the latest such address filed with the Commission or with the National Futures Association. [Secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p, 12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[49 FR 39533, Oct. 9, 1984]

changes, to be reported.

(a) Each applicant or registrant as a futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant must, in accordance with the instructions thereto, promptly correct any deficiency or inaccuracy in Form 7-R or Schedules A, B or C of Form 7-R which no longer renders accurate and current the information contained therein. Each such correction must be made on Form 3-R and must be prepared and filed in accordance with the instructions thereto.

(b) Each applicant or registrant as a floor broker or associated person and each principal of a futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant must, in accordance with the instructions thereto, promptly correct any deficiency or inaccuracy in the Form 8-R or supplemental statement thereto which no longer renders accurate and current the information contained in the Form 8-R or supplemental statement. Each such correction must be made on Form 3-R and must be prepared and filed in accordance with the instructions thereto.

(c)(1) After the filing of a Form 8-R, a Certificate of Special Registration (Form 8-S), or a Form 3-R by or on behalf of any person for the purpose of permitting that person to be an associated person of a futures commis

sion merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant, that futures commission merchant, commodity trading advisor, commodity pool operator, or introducing broker must, within twenty days after the occurrence of either of the following, file a notice thereof with the National Futures Association or, in the case of a leverage transaction merchant, with the Commission, indicating:

(i) The failure of that person to become associated with the futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant, and the reasons therefor; or

(ii) The termination of the association of the associated person with the futures commission merchant, commodity trading advisor, commodity pool operator, introducing broker, or leverage transaction merchant, and the reasons therefor.

(2)(i) Each person registered as, or applying for registration as, a leverage transaction merchant must, within twenty days after the termination of the affiliation of a principal with the registrant or applicant, file a notice thereof with the Commission.

(ii) Each person registered as, or applying for registration as, a futures commission merchant, commodity trading advisor, commodity pool operator or introducing broker must, within twenty days after the termination of the affiliation of a principal with the registrant or applicant, file a notice thereof with the National Futures Association.

(3) Any notice required by paragraph (c) of this section must be filed on Form 8-T or on a Uniform Termination Notice for Securities Industry Registration.

(Approved by the Office of Management and Budget under control number 30380023)

(Secs. 8a(5) and 19 of the Commodity Exchange Act, as amended, 7 U.S.C. 12a(5) and 23 (1982); 5 U.S.C. 552 and 552b; secs. 2(a)(1), 4c, 4d, 4e, 4f, 4k, 4m, 4n, 4p, 8, 8a and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6c, 6d, 6e, 6f, 6k, 6m, 6n, 6p.

12, 12a and 23 (1982)); 5 U.S.C. 552 and 552b)

[45 FR 80491, Dec. 5, 1980, as amended at 47 FR 27551, June 25, 1982; 48 FR 35297, Aug. 3, 1983; 49 FR 5525, Feb. 13, 1984; 49 FR 39533, Oct. 9, 1984]

§ 3.32 Changes requiring new registration; addition of principals.

(a) If the registrant is a futures commission merchant, introducing broker, commodity pool operator, commodity trading advisor or leverage transaction merchant, a new registration is required in the event of a change:

(1) In the form of organization of the registrant;

(2) In the ownership of the business of the registrant in the case of a sole proprietorship;

(3) In the personnel of a partnership resulting from the addition of a general partner; and

(4) In the control of the registrant in the case of a corporation or other form of association.

(b) Application for a new registration required under paragraph (a) of this section must be on Form 7-R, completed and filed with the National Futures Association or, in the case of a leverage transaction merchant, the Commission, in accordance with the instructions thereto.

(c) Notwithstanding any other provision of this part, each Form 7-R filed in accordance with paragraph (b) of this section must be accompanied by a Form 8-R, completed in accordance with the instructions thereto and executed by each natural person who is a principal of the registrant and who was not listed on the registrant's initial application for registration or any amendment thereto. The Form 8-R for each such principal must be accompanied by the fingerprints of that principal on a fingerprint card provided by the National Futures Association or, in the case of a principal of a leverage transaction merchant, the Commission, for that purpose.

(d) For purposes of this section, a change in the control of a corporation shall be deemed to occur whenever a person not listed on the corporate registrant's initial application for registration:

(1) Acquires the right to vote, or becomes the beneficial owner of, ten percent or more of that registrant's voting securities;

(2) Becomes entitled to receive ten percent or more of that registrant's net profits;

(3) Has contributed ten percent or more of that registrant's capital;

(4) Becomes a director of that registrant; or

(5) Becomes the chief executive officer of that registrant or occupies a position of similar status or performs a similar function.

(e)(1) In the event of a change in control as described in paragraphs (d) (4) and (5) of this section, a new registration will not be required if the registrant submits a written notice on Form 3-R to the National Futures Association or, in the case of a leverage transaction merchant, to the Commission, at least 45 days prior to the date of such change in control, and includes with such notice a Form 8-R, completed in accordance with the instructions thereto and executed by each natural person who thus will become a principal of the registrant. The Form 8-R for each such individual must be accompanied by the fingerprints of that individual on a fingerprint card provided by the National Futures Association, or the Commission if the registrant is a leverage transaction merchant, for that purpose: Provided, however, That a fingerprint card need not be provided under this paragraph for any individual who is registered with the Commission as an associated person of the registrant of which the individual intends to become a principal.

(2) No person who submits written notification in accordance with the provisions of paragraph (e)(1) of this section may become a principal of such registrant until that registrant receives a written confirmation from the Commission or the National Futures Association that such affiliation has been approved.

(f) If the registrant is a leverage transaction merchant, all documents submitted pursuant to this section shall be filed with the Commission at its Washington, D.C. office (Attn: Assistant Director for Registration, Divi

sion of Trading and Markets, 2033 K Street, NW., Washington, D.C. 20581). If the registrant is a futures commission merchant, introducing broker, commodity trading advisor or commodity pool operator, all documents shall be filed with the National Futures Association.

(g) Notwithstanding the provisions of §§ 3.12 (a) and (b), 3.16 (a) and (b) and 3.18 (a) and (b), if a new registration is granted under this section, any person who is registered, or who has submitted an application for registration, as an associated person of the registrant on or prior to the date of any event described in paragraph (a) of this section, shall be deemed to be registered, or to have submitted an application for registration, as an associated person of such new registrant.

(h) Except as otherwise provided in this section, within twenty days after any natural person becomes a principal of an applicant of registrant subsequent to the filing of a Form 7-R in accordance with the requirements set forth in §§ 3.10 (a) or (b), 3.13 (a) or (b), 3.14 (a) or (b), 3.15 (a) or (b), or 3.17 (a) or (b) of this chapter, the applicant or registrant must file a Form 8-R with the National Futures Association, or the Commission if the applicant or registrant is a leverage transaction merchant. The Form 8-R must be completed by such principal in accordance with the instructions thereto and must be accompanied by the fingerprints of that principal on a fingerprint card provided by the National Futures Association, or the Commission if the applicant or registrant is a leverage transaction merchant, for that purpose. This filing need not be made for any such principal who has a current Form 8-R or Form 94 on file with the Commission or the National Futures Association: Provided, That the applicant or registrant must notify the National Futures Association, or the Commission if the applicant or registrant is a leverage transaction merchant, within twenty days of the name of such added principal on Form 3-R.

(i)(1) Any person adversely affected by the operation of this section may file a petition with the Secretary of the Commission, which petition must

set forth with particularity the reasons why that person believes that it should be exempted from the requirements of this section and why such an exemption would not be contrary to the public interest and the purposes of this section. The petition will be granted or denied by the Commission on the basis of the papers filed. The Commission may grant such a petition if it finds that the exemption is not contrary to the public interest and the purposes of this section. The petition may be granted subject to such terms and conditions as the Commission may find appropriate.

(2)(i) Until such time as the Commission orders otherwise, the Commission hereby delegates to the Director of the Division of Trading and Markets or the Director's designee the authority to grant or deny petitions filed pursuant to paragraph (i) of this section.

(ii) The Director of the Division of Trading and Markets may submit to the Commission for its consideration any matter which has been delegated to the Director pursuant to paragraph (i)(2)(i) of this section.

(Secs. 2(a)(1), 4, 4b, 4c, 4d, 4e, 4f, 4g, 4h, 4i, 4k, 4m, 4n, 40, 4p, 6, 8, 8a, 14, 15, 17 and 19 of the Commodity Exchange Act (7 U.S.C. 2 and 4, 6, 6b, 6c, 6d, 6e, 6f, 6g, 6h, 6i, 6k, 6m. 6n, 60, 6p, 8, 9, 9a and 13b, 12, 12a, 18, 19, 21 and 23 (1982)); 5 U.S.C. 552 and 552b)

[49 FR 8218, Mar. 5, 1984, as amended at 49 FR 39533, Oct. 9, 1984]

§ 3.33 Withdrawal from registration.

(a) A registrant may request that its registration in one or more capacities be withdrawn prior to expiration in accordance with the requirements of this section if:

(1) The registrant has ceased, or has not commenced, engaging in activities requiring registration in such capacity; (2) The registrant is exempt from registration in such capacity; or

(3) The registrant is excluded from the persons or any class of persons required to be registered in such capacity:

Provided, That the Commission may consider separately each capacity for which withdrawal is requested in acting upon such a request.