2011-10884
Federal Register, Volume 76 Issue 86 (Wednesday, May 4, 2011)[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Proposed Rules]
[Pages 25274-25277]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10884]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Chapter I
Reopening and Extension of Comment Periods for Rulemakings
Implementing the Dodd-Frank Wall Street Reform and Consumer Protection
Act
AGENCY: Commodity Futures Trading Commission.
ACTION: Reopening and extension of comment periods.
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SUMMARY: Since the enactment of the Wall Street Reform and Consumer
Protection Act (the ``Dodd-Frank Act'') on July 21, 2010, the Commodity
Futures Trading Commission (``Commission'') has published in the
Federal Register a significant number of notices of proposed rulemaking
to implement the provisions of the Dodd-Frank Act that establish a
comprehensive new framework for the regulation of swaps. In order to
provide interested parties with an additional opportunity to
participate in these Dodd-Frank Act rulemakings and comment on the
proposed new regulatory framework, the Commission is reopening or
extending the comment period for many of its proposed rulemakings. The
Commission is also requesting comment on the order in which it should
consider final rulemakings made under the Dodd-Frank Act.
DATES: For those rulemakings listed herein for which the comment period
has closed at the time of publication of this notice, the comment
period is re-opened until June 3, 2011. For those rulemakings listed
herein for which the comment period closes during the extension's
comment period, the comment period is extended until June 3, 2011. The
comment period of any rulemaking subject of this extension that closes
after the extension's comment period shall remain open until the
originally published closing date. All comments that were received
after the close of the originally established comment period of each of
the reopened rulemakings will be treated as if they were received
during the reopened comment periods and need not be resubmitted.
The comment period regarding the order in which the Commission
should consider final rules will be open until June 3, 2011.
ADDRESSES: Comments may be submitted by any of the following methods:
Agency Web site, via its Comments Online process at http://comments.cftc.gov. Follow the instructions for submitting comments
through the Web site, and submit all comments through the ``submit
comment'' link associated with this extension.
Mail: Send to David A. Stawick, Secretary, Commodity
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street,
NW., Washington, DC 20581.
Hand Delivery/Courier: Same as mail above.
Please submit your comments using only one method. You may submit
comments on individual rulemakings subject of this extension, on the
intersection of more than one rulemaking, or on the proposed
rulemakings from a global perspective. Comments may be submitted on any
individual rulemaking, on any combination of rulemakings, or on the
order and timing of the Commission's final rulemakings, including the
effective and compliance dates that may be appropriate for the various
rulemakings.
To ensure that your comments are considered to the fullest extent
possible by the Commission, you should identify each of the proposed
rulemakings to which your comment applies by providing the name and RIN
number associated with each rulemaking. Rulemaking RIN numbers may be
found on the Commission's Web site at http://comments.cftc.gov/PublicComments/ReleasesWithComments.aspx. Comments that address the
rulemakings from a global perspective should be identified with the
phrase ``global comment'' in the subject line. Additionally, as
provided above, all comments submitted through the Commission's
Comments Online process should be transmitted via the ``submit
comment'' link associated with this rulemaking. You need not, and to
ensure that all comments addressing more than one rulemaking are
[[Page 25275]]
considered fully by the Commission you should not, submit comments
addressing more than one rulemaking to any of the individual
rulemakings listed on the Commission's ``public comments'' or ``open
comment periods'' Web pages.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
http://www.cftc.gov. You should submit only information that you wish
to make available publicly. If you wish the Commission to consider
information that may be exempt from disclosure under the Freedom of
Information Act, a petition for confidential treatment of the exempt
information may be submitted according to the procedures established in
Sec. 145.9 of the Commission's regulations, 17 CFR 145.9.
The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse or remove any or all of your
submission from http://www.cftc.gov that it may deem to be
inappropriate for publication, such as obscene language. All
submissions that have been redacted or removed that contain comments on
the merits of the rulemaking will be retained in the public comment
file and will be considered as required under the Administrative
Procedure Act and other applicable laws, and may be accessible under
the Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT: On this release, Beverly E. Loew,
Assistant General Counsel, Office of the General Counsel, Commodity
Futures Trading Commission, 1155 21st Street, NW., Washington, DC
20581; 202-418-5648; or [email protected]. On any particular rulemaking,
the Commission staff members listed in the associated notice of
proposed rulemaking.
SUPPLEMENTARY INFORMATION:
I. Background
President Obama signed the Dodd-Frank Act on July 21, 2010.\1\
Title VII of the Dodd-Frank Act \2\ amended the Commodity Exchange Act
(``CEA'') \3\ to establish a comprehensive new regulatory framework for
swaps and security-based swaps. The legislation was enacted to reduce
risk, increase transparency, and promote market integrity within the
financial system by, among other things: (1) Providing for the
registration and comprehensive regulation of swap dealers and major
swap participants; (2) imposing clearing and trade execution
requirements on standardized derivative products; (3) creating robust
recordkeeping and real-time reporting regimes; and (4) enhancing the
Commission's rulemaking and enforcement authorities with respect to,
among others, all registered entities and intermediaries subject to the
Commission's oversight.
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\1\ See Dodd-Frank Wall Street Reform and Consumer Protection
Act, Public Law 111-203, 124 Stat. 1376 (2010). The text of the
Dodd-Frank Act may be accessed at http://www.cftc.gov./
LawRegulation/OTCDERIVATIVES/index.htm.
\2\ Pursuant to section 701 of the Dodd-Frank Act, title VII may
be cited as the ``Wall Street Transparency and Accountability Act of
2010.''
\3\ 7 U.S.C. 1 et seq.
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Over the past several months the Commission has proposed a number
of rulemakings to implement the Dodd-Frank Act. With respect to these
rulemakings, the Commission has consulted and coordinated with the
Securities and Exchange Commission and other Federal regulators, held
hundreds of meetings with market participants and other members of the
public interested in the proposed rulemakings, and received thousands
of comments on these proposed rulemakings. At this point, the
regulatory requirements that have been proposed by the Commission
present a substantially complete mosaic of the Commission's proposed
regulatory framework for swaps under the Dodd-Frank Act.
II. Reopening and Extension of Comment Periods and Request for Comment
In light of this substantially complete mosaic, the Commission is
reopening or extending the comment period of many of its proposed
rulemakings in order to provide the public with an additional
opportunity to comment on the proposed new regulatory framework for
swaps, either in part or as a whole.
The Commission also specifically seeks comments on the costs and
benefits of the proposed rulemakings, individually, in combination, or
globally. In particular, the Commission reiterates its request for
additional quantitative or qualitative information relating to the
costs and benefits of the proposed rules.
The comment periods for the following rulemakings are being
extended:
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Proposed Title of rulemaking Closed
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10/14/2010................. Financial Resources 12/13/2010
Requirements for
Derivatives Clearing
Organizations.
10/18/2010................. Requirements for 11/17/2010
Derivatives Clearing
Organizations, Designated
Contract Markets, and Swap
Execution Facilities
Regarding the Mitigation
of Conflicts of Interest.
10/26/2010................. Agricultural Commodity 11/26/2010
Definition.
11/2/2010.................. Process for Review of Swaps 1/3/2011
for Mandatory Clearing.
11/3/2010.................. Investment of Customer 12/3/2010
Funds and Funds Held in an
Account for Foreign
Futures and Foreign
Options Transactions.
11/17/2010................. Implementation of Conflicts 1/18/2011
of Interest Policies and
Procedures by Futures
Commission Merchants and
Introducing Brokers.
11/19/2010................. Registration of Foreign 1/18/2011
Boards of Trade.
11/19/2010................. Designation of a Chief 1/18/2011
Compliance Officer;
Required Compliance
Policies; and Annual
Report of a Futures
Commission Merchant, Swap
Dealer, or Major Swap
Participant.
11/23/2010................. Regulations Establishing 1/24/2011
and Governing the Duties
of Swap Dealers and Major
Swap Participants.
11/23/2010................. Implementation of Conflicts 1/24/2011
of Interest Policies and
Procedures by Swap Dealers
and Major Swap
Participants.
11/23/2010................. Registration of Swap 1/24/2011
Dealers and Major Swap
Participants.
12/3/2010.................. Protection of Collateral of 2/1/2011
Counterparties to
Uncleared Swaps; Treatment
of Securities in a
Portfolio Margining
Account in a Commodity
Broker Bankruptcy.
12/7/2010.................. Real-Time Public Reporting 2/7/2011
of Swap Transaction Data.
12/8/2010.................. Swap Data Recordkeeping and 2/7/2011
Reporting Requirements.
12/9/2010.................. Reporting, Recordkeeping, 2/7/2011
and Daily Trading Records
Requirements for Swap
Dealers and Major Swap
Participants.
12/13/2010................. General Regulations and 2/11/2011
Derivatives Clearing
Organizations.
12/15/2010................. Information Management 2/14/2011
Requirements for
Derivatives Clearing
Organizations.
[[Page 25276]]
12/21/2010................. 17 CFR Part 1 Securities 2/22/2011
and Exchange Commission 17
CFR Part 240 Further
Definition of ``Swap
Dealer,'' ``Security-Based
Swap Dealer,'' ``Major
Swap Participant,''
``Major Security-Based
Swap Participant'' and
``Eligible Contract
Participant''.
12/22/2010................. Business Conduct Standards 2/22/2011
for Swap Dealers and Major
Swap Participants With
Counterparties.
12/22/2010................. Core Principles and Other 4/18/2011
Requirements for
Designated Contract
Markets.
12/23/2010................. Swap Data Repositories..... 2/22/2011
12/23/2010................. End-User Exception to 2/22/2011
Mandatory Clearing of
Swaps.
12/28/2010................. Confirmation, Portfolio 2/28/2011
Reconciliation, and
Portfolio Compression
Requirements for Swap
Dealers and Major Swap
Participants.
1/6/2011................... Governance Requirements for 3/7/2011
Derivatives Clearing
Organizations, Designated
Contract Markets, and Swap
Execution Facilities;
Additional Requirements
Regarding the Mitigation
of Conflicts of Interest.
1/7/2011................... Core Principles and Other 3/8/2011
Requirements for Swap
Execution Facilities.
1/20/2011.................. Risk Management 4/25/2011
Requirements for
Derivatives Clearing
Organizations.
2/3/2011................... Commodity Options and 4/4/2011
Agricultural Swaps.
2/8/2011................... Swap Trading Relationship 4/11/2011
Documentation Requirements
for Swap Dealers and Major
Swap Participants.
2/8/2011................... Orderly Liquidation 4/11/2011
Termination Provision in
Swap Trading Relationship
Documentation for Swap
Dealers and Major Swap
Participants.
3/3/2011................... Amendments to Commodity 5/2/2011
Pool Operator and
Commodity Trading Advisor
Regulations Resulting From
the Dodd-Frank Act.
3/9/2011................... Registration of 5/9/2011
Intermediaries.
3/10/2011.................. Requirements for 4/11/2011
Processing, Clearing, and
Transfer of Customer
Positions.
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Notwithstanding the foregoing, commenters may submit, and the
Commission will consider, comments on any aspects of the rulemakings,
including comments on individual rulemakings subject of this extension,
on the intersection of any combination of these rulemakings, or on the
proposed rulemakings from a global perspective. All comments that were
received after the close of the originally established comment period
of each of the reopened rulemakings will be treated as if they were
received during the reopened comment periods and need not be
resubmitted.
Finally, the Commission is requesting comment on the order in which
it should consider the Dodd-Frank final rulemakings.
Issued in Washington, DC, this 27th day of April 2010, by the
Commission.
David A. Stawick,
Secretary of the Commission.
Appendices to Reopening and Extension of Comment Periods for
Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer
Protection Act--Commission Voting Summary and Statements of
Commissioners
Note: The following appendices will not appear in the Code of
Federal Regulations.
Appendix 1--Commission Voting Summary
On this matter, Chairman Gensler and Commissioners Dunn, Chilton
and O'Malia voted in the affirmative; Commissioner Sommers voted in
the negative.
Appendix 2--Statement of Commissioner Scott D. O'Malia
I concur with the Commission's proposal to re-open the comment
period for certain proposed rulemakings made under the Dodd-Frank
Act and to request comment on the sequencing of the Commission's
consideration of final rules. Following careful consideration of
comments regarding the sequencing, the Commission should publish in
the Federal Register the order in which it intends to take up
consideration of the Dodd-Frank final rules. Doing so will help
ensure that our processes are fully transparent and well informed.
Similarly, I strongly urge the Commission to propose a full
implementation schedule, request comment and publish an adopted
schedule in the Federal Register so that the market and public will
have the certainty they need to make budgeting, investment and
hiring decisions. Commenters should urge the Commission to publish a
full implementation schedule by submitting comments to this
rulemaking.
In order to facilitate debate, I have proposed the following
sequencing of the Commission's consideration of final rules. I
strongly recommend that the public comment on this proposal or
recommend an alternative.
Phase I
Federal Energy Regulatory Commission (FERC) Memorandums of
Understanding
Whistleblower
Fair Credit Reporting Act (FCRA) Rules
Reliance on Credit Ratings
Swap Data Repository
Data Recordkeeping
Large Trader reporting
Investment advisor reporting
Pre-enactment & Transition swaps
Governance of SDRs
Process to define a clearable swap
Phase II
Swap Dealer (SD)/Major Swap Participant (MSP)
End-User Exemption
SD/MSP Registration
Small Bank Exemption Rule
Business Conduct Standards for SD/MSP
Internal business conduct
Documentation
Conflicts of Interest
Capital and Margin
External Business conduct
Inter-Affiliate Transactions
Products Rules
Agricultural Swaps
Swaps
Agricultural commodity definition
Phase III
Position Limits
Clearing
Designated Clearing Organization (DCO) Core Principles
Systemically Important Designated Clearing Organizations
(SIDCOs)
Governance of DCO
Execution
Real-time Reporting
Swaps Execution Facility (SEF) & Block Trade Rule
Designated Contract Market (DCM)
Foreign Board of Trade (FBOT)
Part 40 Rule Certification
Governance of SEFs & DCMs
Phase IV
Clearing
Rule 1.25
Segregation and Bankruptcy
Portfolio Margining
Anti-Manipulation
Disruptive Trading
Volker Rule 619
Commodity Pool Operator (CPO)/
Commodity Trading Adviser (CTA) Registration & conduct rules
[[Page 25277]]
All Conforming Rules
[FR Doc. 2011-10884 Filed 5-3-11; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: May 4, 2011