2024-08872

[Federal Register Volume 89, Number 81 (Thursday, April 25, 2024)]
[Proposed Rules]
[Pages 31669-31670]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-08872]


=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION

17 CFR Parts 37 and 38

RIN 3038-AF29


Requirements for Designated Contract Markets and Swap Execution 
Facilities Regarding Governance and the Mitigation of Conflicts of 
Interest Impacting Market Regulation Functions

AGENCY: Commodity Futures Trading Commission.

ACTION: Proposed rule; extension of comment period.

-----------------------------------------------------------------------

SUMMARY: On March 19, 2024, the Commodity Futures Trading Commission 
(``Commission'' or ``CFTC'') published in the Federal Register a notice 
of proposed rulemaking (``Proposed Rule'' or ``NPRM'') titled 
Requirements for Designated Contract Markets and Swap Execution 
Facilities Regarding Governance and the Mitigation of Conflicts of 
Interest Impacting Market Regulation Functions. The comment period for 
the Proposed Rule was set to close on April 22, 2024. The Commission is 
extending the comment period for this NPRM by an additional twenty-one 
days.

DATES: The comment period for the NPRM titled Requirements for 
Designated Contract Markets and Swap Execution Facilities Regarding 
Governance and the Mitigation of Conflicts of Interest Impacting Market 
Regulation Functions notice of proposed rulemaking is extended through 
May 13, 2024.

ADDRESSES: You may submit comments, identified by ``Requirements for 
Designated Contract Markets and Swap Execution Facilities Regarding 
Governance and the Mitigation of Conflicts of Interest Impacting Market 
Regulation Functions, RIN 3038-AF29,'' by any of the following methods:
     CFTC Comments Portal: https://comments.cftc.gov/. Select 
the ``Submit Comments'' link for this rulemaking and follow the 
instructions on the Public Comment Form.
     Mail: Send to Christopher Kirkpatrick, Secretary of the 
Commission, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW, Washington, DC 20581.
     Hand Delivery/Courier: Follow the same instructions as for 
Mail above.
    Please submit your comments using only one of these methods. To 
avoid possible delays with mail or in-person deliveries, submissions 
through the CFTC Comments Portal are encouraged.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
https://comments.cftc.gov. You should submit only information that you 
wish to make available publicly. If you wish the Commission to consider 
information that you believe is exempt from disclosure under the 
Freedom of Information Act (``FOIA''), 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.\1\
---------------------------------------------------------------------------

    \1\ 17 CFR 145.9.
---------------------------------------------------------------------------

    The Commission reserves the right, but shall have no obligation, to 
review,

[[Page 31670]]

pre-screen, filter, redact, refuse, or remove any or all of your 
submission from https://comments.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 FOIA.

FOR FURTHER INFORMATION CONTACT: Rachel Berdansky, Deputy Director, 
[email protected], 202-418-5429; Swati Shah, Associate Director, 
[email protected], 202-418-5042; Caitlin Holzem, Special Counsel, 
[email protected], 202-418-5557; Division of Market Oversight, Commodity 
Futures Trading Commission, 1155 21st Street NW, Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On March 19, 2024, the Commission published 
proposed amendments \2\ to Parts 37 and 38 that would: adopt the 
existing standards under the Guidance and Acceptable Practices for DCMs 
implementing Core Principle 15 and Core Principle 16; adopt rules 
implementing SEF Core Principle 12 rules that are consistent with 
existing standards under the Guidance and Acceptable Practices for DCM 
Core Principles 15 and 16; move certain existing conflicts of interest 
and governance requirements from Part 1 to Part 37 for SEFs and Part 38 
for DCMs; adopt Part 38 rules more detailed standards concerning the 
DCM Chief Regulatory Officer; adopt as Parts 37 and 38 more detailed 
standards concerning the Regulatory Oversight Committee (``ROC''); 
amend Part 37 and 38 regulations regarding the notification of a 
transfer of equity interest in a SEF and DCM. The comment period for 
the NPRM closes on April 22, 2024.
---------------------------------------------------------------------------

    \2\ Requirements for Designated Contract Markets and Swap 
Execution Facilities Regarding Governance and the Mitigation of 
Conflicts of Interest Impacting Market Regulation Functions, 89 FR 
19646 (Mar. 19, 2024).
---------------------------------------------------------------------------

    In a March 24, 2024, Request Letter,\3\ commenters express concerns 
that the originally-allotted 60-day comment period is insufficient. The 
Commission is extending the comment period by an additional twenty-one 
days in order to allow interested persons additional time to analyze 
the proposal and prepare their comments.
---------------------------------------------------------------------------

    \3\ See Letter from the Joint Compliance Committee (``JCC''), 
dated March 24, 2024. Available at https://comments.cftc.gov/Handlers/PdfHandler.ashx?id=35300 (the ``Extension Request 
Letter''). The requested extension comment period was through June 
26, 2024.

    Issued in Washington, DC, on April 22, 2024 by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.

    Note: the following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Requirements for Designated Contract Markets and Swap 
Execution Facilities Regarding Governance and the Mitigation of 
Conflicts of Interest Impacting Market Regulation Functions--Commission 
Voting Summary

    On this matter, Chairman Behnam and Commissioners Johnson, 
Goldsmith Romero, and Pham voted in the affirmative. Commissioner 
Mersinger voted to concur. No Commissioner voted in the negative.

[FR Doc. 2024-08872 Filed 4-24-24; 8:45 am]
BILLING CODE 6351-01-P