2024-02234

[Federal Register Volume 89, Number 25 (Tuesday, February 6, 2024)]
[Proposed Rules]
[Pages 8111-8112]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-02234]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 39

RIN 3038-AF39


Protection of Clearing Member Funds Held by Derivatives Clearing 
Organizations

AGENCY: Commodity Futures Trading Commission.

ACTION: Extension of comment period.

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SUMMARY: On January 3, 2024, the Commodity Futures Trading Commission 
(Commission) published, in the Federal Register, a notice of proposed 
rulemaking (NPRM) titled Protection of Clearing Member Funds Held by 
Derivatives Clearing Organizations. The comment period for the NPRM was 
to close on February 16, 2024. The Commission is extending the comment 
period for this NPRM by an additional 31 days.

DATES: The comment period for the NPRM titled Protection of Clearing 
Member Funds Held by Derivatives Clearing Organizations, published 
January 3, 2024 (89 FR 286), is

[[Page 8112]]

extended. Comments are due March 18, 2024.

ADDRESSES: You may submit comments, identified by RIN number 3038-AF39, 
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. 
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\
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    \1\ 17 CFR 145.9.
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    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 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: Eileen A. Donovan, Deputy Director, 
(202) 418-5096, [email protected]; August A. Imholtz III, Special 
Counsel, (202) 418-5140, [email protected]; or Gavin Young, Special 
Counsel, (202) 418-5976, [email protected]; Division of Clearing and 
Risk, Commodity Futures Trading Commission, Three Lafayette Centre, 
1155 21st Street NW, Washington, DC 20581; or Theodore Z. Polley III, 
Associate Director, (312) 596-0551, [email protected]; Division of 
Clearing and Risk, Commodity Futures Trading Commission, 77 West 
Jackson Boulevard, Suite 800, Chicago, Illinois 60604.

SUPPLEMENTARY INFORMATION: On January 3, 2024, the Commission published 
in the Federal Register an NPRM proposing amendments to its regulations 
that would ensure clearing member funds and assets receive the proper 
treatment in the event the derivatives clearing organization (DCO) 
enters bankruptcy by requiring, among other things, that clearing 
member funds be segregated from the DCO's own funds and held in a 
depository that acknowledges in writing that the funds belong to 
clearing members, not the DCO.\2\ In addition, the Commission also 
proposed to permit DCOs to hold customer and clearing member funds at 
foreign central banks subject to certain requirements. Finally, the 
Commission proposed to require DCOs to conduct a daily calculation and 
reconciliation of the amount of funds owed to customers and clearing 
members and the amount actually held for customers and clearing 
members. The comment period for the NPRM was to close on February 16, 
2024. In response to a request by commenters, the Commission is 
extending the comment period for this NPRM by an additional 31 days.\3\ 
This extension of the comment period will allow interested persons 
additional time to analyze the proposal and prepare their comments.
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    \2\ Protection of Clearing Member Funds Held by Derivatives 
Clearing Organizations, 89 FR 286 (January 3, 2024).
    \3\ Letter from Teo Floor, Chief Executive Officer, The Global 
Association of Central Counterparties, dated January 11, 2024. 
Available at https://comments.cftc.gov/PublicComments/ViewComment.aspx?id=73229. The requested extension was 30 days. The 
Commission is extending the comment period by 31 days to avoid 
having the extended closing date fall on a weekend.

    Issued in Washington, DC, on January 31, 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 Protection of Clearing Member Funds Held by Derivatives 
Clearing Organizations--Commission Voting Summary

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

[FR Doc. 2024-02234 Filed 2-5-24; 8:45 am]
BILLING CODE 6351-01-P