/Vol. 78, No. 140/Monday, July 22, 2013/Rules and Regulations
17 CFR 145.9.
5 U.S.C. 551,
5 U.S.C. 552.
Dodd-Frank Wall Street Reform andConsumer Protection Act, Public Law 111–203, 124Stat. 1376 (July 21, 2010).
7 U.S.C. 1
7 U.S.C. 2(i).
7 U.S.C. 6s.
Examples of section 4s implementing rules that become effective for SDs and MSPs at the time of their registration include requirements relating toswap data reporting (Commission regulation23.204) and conflicts of interest (Commissionregulation 23.605(c)–(d)). The chief complianceofficer requirement (Commission regulations 3.1and 3.3) is an example of those rules that havespecific compliance dates. The compliance datesare summarized on the Compliance Dates page of the Commission’s Web site. (
).The Commission’s regulations arecodified at 17 CFR Ch. 1.
These include rules under CEA section 4s(e),7U.S.C. 6s(e) (governing capital and marginrequirements for SDs and MSPs), and CEA section4s(l), 7 U.S.C. 6s(l) (governing segregationrequirements for uncleared swaps).
Cross-Border Application of Certain SwapsProvisions of the Commodity Exchange Act, 77 FR41214 (Jul. 12, 2012) (‘‘Proposed Guidance’’).
7 U.S.C. 1a(49) (defining the term ‘‘swapdealer’’).
COMMODITY FUTURES TRADINGCOMMISSION17 CFR Chapter I
Exemptive Order RegardingCompliance With Certain SwapRegulations
Commodity Futures TradingCommission.
Exemptive order; request forcomments.
On January 7, 2013, theCommodity Futures TradingCommission (‘‘Commission’’ or‘‘CFTC’’) issued a final order (‘‘JanuaryOrder’’) that granted market participantstemporary conditional relief fromcertain provisions of the CommodityExchange Act (‘‘CEA’’), as amended byTitle VII of the Dodd-Frank Wall StreetReform and Consumer Protection Act(‘‘Dodd-Frank Act’’ or ‘‘Dodd-Frank’’)(and Commission regulationsthereunder). The January Order expireson July 12, 2013. In this ExemptiveOrder (‘‘Exemptive Order’’), theCommission provides temporaryconditional relief effective upon theexpiration of the January Order in orderto facilitate transition to the Dodd-Frankswaps regime.
The Exemptive Order is effective July 13, 2013, and will expire December21, 2013, or such earlier date specifiedin the Exemptive Order.
You may submit comments,identified by RIN number 3038–AE05, by any of the following methods:
The agency’s Web site:
Follow theinstructions for submitting commentsthrough the Web site.
Melissa D. Jurgens, Secretaryof the Commission, Commodity FuturesTrading Commission, Three LafayetteCentre, 1155 21st Street NW.,Washington, DC 20581.
Same asmail above.
Follow theinstructions for submitting comments.Please submit your comments usingonly one method.All comments must be submitted inEnglish, or if not, accompanied by anEnglish translation. Comments will beposted as received to
Youshould submit only information thatyou wish to make available publicly. If you wish the Commission to considerinformation that you believe is exemptfrom disclosure under the Freedom of Information Act, a petition forconfidential treatment of the exemptinformation may be submitted accordingto the procedures established in §145.9of the Commission’s regulations.
The Commission reserves the right, but shall have no obligation, to review,pre-screen, filter, redact, refuse orremove any or all of your submissionfrom
that it may deem to be inappropriate for publication, such asobscene language. All submissions thathave been redacted or removed thatcontain comments on the merits of theproposal will be retained in the publiccomment file and will be considered asrequired under the AdministrativeProcedure Act
and other applicablelaws, and may be accessible under theFreedom of Information Act.
FOR FURTHER INFORMATION CONTACT
GaryBarnett, Director, Division of SwapDealer and Intermediary Oversight,(202) 418–5977,
Sarah E. Josephson, Director, Office of International Affairs, (202) 418–5684,
Mark Fajfar,Assistant General Counsel, Office of General Counsel, (202) 418–6636,
Laura B. Badian,Counsel, Office of General Counsel,(202) 418–5969,
EvanH. Winerman, Attorney-Advisor, Officeof General Counsel, (202) 418–5674,
CommodityFutures Trading Commission, ThreeLafayette Centre, 1155 21st Street NW.,Washington, DC 20581.
On July 21, 2010, President Obamasigned the Dodd-Frank Act,
whichamended the CEA
to establish a newregulatory framework for swaps. Thelegislation was enacted to reducesystemic risk, increase transparency,and promote market integrity within thefinancial system by, among other things:(1) Providing for the registration andcomprehensive regulation of swapdealers (‘‘SDs’’) and major swapparticipants (‘‘MSPs’’); (2) imposingclearing and trade executionrequirements on standardized derivativeproducts; (3) creating rigorousrecordkeeping and data reportingregimes with respect to swaps,including real-time public reporting;and (4) enhancing the Commission’srulemaking and enforcement authoritiesover all registered entities,intermediaries, and swap counterpartiessubject to the Commission’s oversight.Section 722(d) of the Dodd-Frank Actalso amended the CEA to add section2(i), which provides that the swapsprovisions of the CEA apply to cross- border activities when certainconditions are met, namely, when suchactivities have a ‘‘direct and significantconnection with activities in, or effecton, commerce of the United States’’ orwhen they contravene a Commissionrulemaking.
In the nearly three years since itsenactment, the Commission hasfinalized 69 actions to implement TitleVII of the Dodd-Frank Act. The finalizedactions include rules promulgatedunder CEA section 4s,
which addressregistration of SDs and MSPs and othersubstantive requirements applicable toSDs and MSPs. Notably, many section4s requirements applicable to SDs andMSPs are tied to the date on which aperson is required to register, unless alater compliance date is specified.
Anumber of other rules specificallyapplicable to SDs and MSPs have beenproposed but are not finalized.
Further, the Commission publishedfor public comment the ProposedGuidance,
which set forth the mannerin which it proposed to interpret section2(i) of the CEA as it applies to therequirements under the Dodd-Frank Actand the Commission’s regulationspromulgated thereunder regardingcross-border swaps activities.Specifically, in the Proposed Guidance,the Commission described the generalmanner in which it proposed toconsider: (1) Whether a non-U.S.person’s swap dealing activities aresufficient to require registration as a‘‘swap dealer,’’
as further defined in ajoint release adopted by the Commission
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