Capital Requirements of Swap Dealers and Major Swap Participants, 13971-13972 [2017-05277]
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13971
Proposed Rules
Federal Register
Vol. 82, No. 50
Thursday, March 16, 2017
This section of the FEDERAL REGISTER
contains notices to the public of the proposed
issuance of rules and regulations. The
purpose of these notices is to give interested
persons an opportunity to participate in the
rule making prior to the adoption of the final
rules.
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Parts 1, 23, and 40
RIN 3038–AD54
Capital Requirements of Swap Dealers
and Major Swap Participants
Commodity Futures Trading
Commission.
ACTION: Notice of proposed rulemaking;
extension of comment period.
AGENCY:
On December 16, 2016, the
Commodity Futures Trading
Commission (Commission or CFTC)
published in the Federal Register a
notice of proposed rulemaking
(Proposal) to adopt new regulations and
to amend existing regulations to
implement sections 4s(e) and (f) of the
Commodity Exchange Act (CEA), as
added by section 731 of the Wall Street
Reform and Consumer Protection Act
(Dodd-Frank Act). Section 4s(e) requires
the Commission to adopt capital
requirements for swap dealers (SDs) and
major swap participants (MSPs) that are
not subject to capital rules of a
prudential regulator. Section 4s(f)
requires the Commission to adopt
financial reporting and recordkeeping
requirements for SDs and MSPs. The
Commission also proposed to amend
existing capital rules for futures
commission merchants (FCMs),
providing specific capital deductions for
market risk and credit risk for swaps
and security-based swaps entered into
by an FCM. The Commission further
proposed several technical amendments
to the regulations. As is explained
below, the Commission is extending for
60 days the comment period for the
Proposal.
jstallworth on DSK7TPTVN1PROD with PROPOSALS
SUMMARY:
The comment period for the
Proposal published on December 16,
2016, at 81 FR 91252, is extended until
May 15, 2017.
ADDRESSES: You may submit comments,
identified by RIN 3038–AD54 and
‘‘Capital Requirements for Swap Dealers
DATES:
VerDate Sep<11>2014
14:20 Mar 15, 2017
Jkt 241001
and Major Swap Participants’’, by any of
the following methods:
• CFTC Web site, via its Comments
Online process: https://
comments.cftc.gov. Follow the
instructions for submitting comments
through the Web site.
• Mail: Send to Chris Kirkpatrick,
Secretary, Commodity Futures Trading
Commission, 1155 21st Street NW.,
Washington, DC 20581.
• Hand delivery/Courier: Same as
Mail above.
• Federal eRulemaking Portal: https://
www.regulations.gov. Follow the
instructions for submitting comments.
Please submit your comments using
only one of these methods.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments will be
posted as received to https://
www.cftc.gov. You should submit only
information that you wish to make
available publicly. If you wish the
Commission to consider information
that is 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 set forth in Regulation
145.9 of the Commission’s regulations.1
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://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:
Eileen T. Flaherty, Director, Division of
Swap Dealer and Intermediary
Oversight, 202–418–5326, eflaherty@
cftc.gov; Thomas Smith, Deputy
Director, Division of Swap Dealer and
Intermediary Oversight, 202–418–5495,
tsmith@cftc.gov; Jennifer C.P. Bauer,
Special Counsel, Division of Swap
Dealer and Intermediary Oversight, 202–
418–5472, jbauer@cftc.gov; Joshua
1 Commission
regulations referred to herein are
found at 17 CFR chapter 1. Commission regulations
are accessible on the Commission’s Web site, https://
www.cftc.gov.
PO 00000
Frm 00001
Fmt 4702
Sfmt 4702
Beale, Special Counsel, Division of
Swap Dealer and Intermediary
Oversight, 202–418–5446, jbeale@
cftc.gov; Rafael Martinez, Senior
Financial Risk Analyst, Division of
Swap Dealer and Intermediary
Oversight, 202–418–5462, rmartinez@
cftc.gov; Paul Schlichting, Assistant
General Counsel, Office of the General
Counsel, 202–418–5884, pschlichting@
cftc.gov; or Lihong McPhail, Research
Economist, 202–418–5722, lmcphail@
cftc.gov, Office of the Chief Economist;
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW., Washington, DC
20581.
SUPPLEMENTARY INFORMATION:
I. Background
Section 731 of the Dodd-Frank Act
amended the CEA by adding sections
4s(e) and 4s(f). Section 4s(e) requires
that the Commission adopt rules
establishing capital requirements for
SDs and MSPs to help ensure the safety
and soundness of the SDs and MSPs.
Section 4s(f), among other things,
requires that the Commission adopt
regulations related to financial reporting
and recordkeeping by SDs and MSPs.
The Proposal would adopt new
regulations and amend existing
regulations to implement the
requirements of these CEA sections.2
The Proposal generally permits the
application of three alternative
approaches to the treatment of capital
based upon existing U.S. bank
regulators’ capital requirements or the
CFTC’s future commission merchant
and the Securities and Exchange
Commission’s broker-dealer net liquid
asset capital requirements. The Proposal
further provides that SDs predominantly
engaged in non-financial activities and
MSPs may elect minimum capital
requirements based upon the tangible
net worth of the entities. SDs may use
internal models for purposes of
computing their regulatory capital,
subject to prior approval by either the
Commission or the National Futures
Association. The Proposal would also
require certain SDs and MSPs to satisfy
defined liquidity and funding
requirements and would place certain
2 The Commission previously proposed capital
and financial reporting rules for SDs and MSPs in
2011. See Capital Requirements of Swap Dealers
and Major Swap Participants, 76 FR 27802 (May 12,
2011).
E:\FR\FM\16MRP1.SGM
16MRP1
13972
Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Proposed Rules
limitations on the withdrawal of capital
from SDs as part of the SD capital
requirements.
In implementing the provisions of
Section 4s(f) of the CEA, the Proposal
includes recordkeeping, reporting and
notification requirements for SDs and
MSPs relative to their respective capital
requirements. The Proposal would also
allow foreign SDs to comply with
comparable capital requirements in the
home jurisdiction under a program of
substituted compliance.
In addition to proposing minimum
capital and financial reporting
requirements for SDs and MSPs, the
Proposal would also amend existing
capital requirements for FCMs to
establish specific capital requirements
for FCMs that engage in swaps or
security-based swaps that are not
cleared by a clearing organization. The
Proposal also includes certain technical
amendments to several regulations as
part of the proposed capital and
financial recordkeeping and reporting
requirements.
jstallworth on DSK7TPTVN1PROD with PROPOSALS
II. Extension of Comment Period
The comment period for the Proposal
is due to expire on March 16, 2017. By
letters dated February 24, 2017 and
March 2, 2017, respectively, the
Securities Industry and Financial
Markets Association (SIFMA) and The
Futures Industry Association (FIA),
membership organizations representing
many firms that would be affected by
the Proposal, requested a 60-day
extension of the comment period. In
support of their requests, SIFMA and
FIA explained that firms have extensive
work to do in order to calculate the
effect on their activities of the different
types of proposed capital requirements.
SIFMA further explained that the initial
comment period overlaps with firms’
year-end accounting and reporting
cycles as well as with the deadline for
firms’ compliance with the
Commission’s uncleared swaps margin
rules, resulting in a significant drain on
VerDate Sep<11>2014
14:20 Mar 15, 2017
Jkt 241001
their resources. SIFMA and FIA noted
that given the complexity of the
Proposal it will require significant time
beyond the Commission’s initial March
16 comment deadline to fully assess the
potential impact of the Proposal on
firms’ operations.
In light of the foregoing, and in
response to the SIFMA and FIA
requests, by this Federal Register
release the Commission is extending the
comment period for the Proposal for 60
days, until May 15, 2017.
Issued in Washington, DC, on March 13,
2017, by the Commission.
Robert N. Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Capital Requirements of
Swap Dealers and Major Swap
Participants—Commission Voting
Summary
On this matter, Acting Chairman Giancarlo
and Commissioner Bowen voted in the
affirmative. No Commissioner voted in the
negative.
[FR Doc. 2017–05277 Filed 3–15–17; 8:45 am]
BILLING CODE 6351–01–P
FEDERAL COMMUNICATIONS
COMMISSION
47 CFR Parts 6, 7, 14, 20, 64, and 67
[CG Docket No. 16–145 and GN Docket No.
15–178; DA 17–197]
Petition for Clarification, or in the
Alternative Reconsideration of Action
in Rulemaking Proceeding
Federal Communications
Commission.
ACTION: Petition for clarification or
reconsideration.
AGENCY:
A Petition for Clarification, or
in the Alternative Reconsideration
(Petition) has been filed in the
SUMMARY:
PO 00000
Frm 00002
Fmt 4702
Sfmt 9990
Commission’s rulemaking proceeding
by T-Mobile USA, Inc.
Comments to the Petition must
be filed on or before March 31, 2017.
Reply Comments must be filed on or
before April 10, 2017.
DATES:
Federal Communications
Commission, 445 12th Street SW.,
Washington, DC 20554.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Michael Scott, Consumer and
Governmental Affairs Bureau, email:
Michael.Scott@fcc.gov; phone: (202)
418–1264.
This is a
summary of the Commission’s
document DA 17–197, released
February 27, 2017. The full text of the
Petition is available for viewing and
copying at the FCC Reference
Information Center, 445 12th Street SW.,
Room CY–A257, Washington, DC 20554
or may be accessed online via the
Commission’s Electronic Comment
Filing System at: https://ecfsapi.fcc.gov
/file/102231846629100/T-Mobile%20RT
T%20Petition%20for%20Clarification
%20(2-22-17)%20FINAL.pdf. The
Commission will not send a copy of this
document pursuant to the Congressional
Review Act, 5 U.S.C. 801(a)(1)(A),
because this document does not have an
impact on any rules of particular
applicability.
Subject: Transition from TTY to RealTime Text Technology, FCC 16–169,
published at 82 FR 7699, January 23,
2017 in CG Docket No. 16–145 and GN
Docket No. 15–178. This document is
being published pursuant to 47 CFR
1.429(e). See also 47 CFR 1.4(b)(1) and
1.429(f), (g).
Number of Petitions Filed: 1.
SUPPLEMENTARY INFORMATION:
Federal Communications Commission.
Karen Peltz Strauss,
Deputy Chief, Consumer and Governmental
Affairs Bureau.
[FR Doc. 2017–05191 Filed 3–15–17; 8:45 am]
BILLING CODE 6712–01–P
E:\FR\FM\16MRP1.SGM
16MRP1
Agencies
[Federal Register Volume 82, Number 50 (Thursday, March 16, 2017)]
[Proposed Rules]
[Pages 13971-13972]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-05277]
========================================================================
Proposed Rules
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains notices to the public of
the proposed issuance of rules and regulations. The purpose of these
notices is to give interested persons an opportunity to participate in
the rule making prior to the adoption of the final rules.
========================================================================
Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 /
Proposed Rules
[[Page 13971]]
COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 1, 23, and 40
RIN 3038-AD54
Capital Requirements of Swap Dealers and Major Swap Participants
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed rulemaking; extension of comment period.
-----------------------------------------------------------------------
SUMMARY: On December 16, 2016, the Commodity Futures Trading Commission
(Commission or CFTC) published in the Federal Register a notice of
proposed rulemaking (Proposal) to adopt new regulations and to amend
existing regulations to implement sections 4s(e) and (f) of the
Commodity Exchange Act (CEA), as added by section 731 of the Wall
Street Reform and Consumer Protection Act (Dodd-Frank Act). Section
4s(e) requires the Commission to adopt capital requirements for swap
dealers (SDs) and major swap participants (MSPs) that are not subject
to capital rules of a prudential regulator. Section 4s(f) requires the
Commission to adopt financial reporting and recordkeeping requirements
for SDs and MSPs. The Commission also proposed to amend existing
capital rules for futures commission merchants (FCMs), providing
specific capital deductions for market risk and credit risk for swaps
and security-based swaps entered into by an FCM. The Commission further
proposed several technical amendments to the regulations. As is
explained below, the Commission is extending for 60 days the comment
period for the Proposal.
DATES: The comment period for the Proposal published on December 16,
2016, at 81 FR 91252, is extended until May 15, 2017.
ADDRESSES: You may submit comments, identified by RIN 3038-AD54 and
``Capital Requirements for Swap Dealers and Major Swap Participants'',
by any of the following methods:
CFTC Web site, via its Comments Online process: https://comments.cftc.gov. Follow the instructions for submitting comments
through the Web site.
Mail: Send to Chris Kirkpatrick, Secretary, Commodity
Futures Trading Commission, 1155 21st Street NW., Washington, DC 20581.
Hand delivery/Courier: Same as Mail above.
Federal eRulemaking Portal: https://www.regulations.gov.
Follow the instructions for submitting comments.
Please submit your comments using only one of these methods.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
https://www.cftc.gov. You should submit only information that you wish
to make available publicly. If you wish the Commission to consider
information that is 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 set forth in
Regulation 145.9 of the Commission's regulations.\1\
---------------------------------------------------------------------------
\1\ Commission regulations referred to herein are found at 17
CFR chapter 1. Commission regulations are accessible on the
Commission's Web site, https://www.cftc.gov.
---------------------------------------------------------------------------
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://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: Eileen T. Flaherty, Director, Division
of Swap Dealer and Intermediary Oversight, 202-418-5326,
eflaherty@cftc.gov; Thomas Smith, Deputy Director, Division of Swap
Dealer and Intermediary Oversight, 202-418-5495, tsmith@cftc.gov;
Jennifer C.P. Bauer, Special Counsel, Division of Swap Dealer and
Intermediary Oversight, 202-418-5472, jbauer@cftc.gov; Joshua Beale,
Special Counsel, Division of Swap Dealer and Intermediary Oversight,
202-418-5446, jbeale@cftc.gov; Rafael Martinez, Senior Financial Risk
Analyst, Division of Swap Dealer and Intermediary Oversight, 202-418-
5462, rmartinez@cftc.gov; Paul Schlichting, Assistant General Counsel,
Office of the General Counsel, 202-418-5884, pschlichting@cftc.gov; or
Lihong McPhail, Research Economist, 202-418-5722, lmcphail@cftc.gov,
Office of the Chief Economist; Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
Section 731 of the Dodd-Frank Act amended the CEA by adding
sections 4s(e) and 4s(f). Section 4s(e) requires that the Commission
adopt rules establishing capital requirements for SDs and MSPs to help
ensure the safety and soundness of the SDs and MSPs. Section 4s(f),
among other things, requires that the Commission adopt regulations
related to financial reporting and recordkeeping by SDs and MSPs. The
Proposal would adopt new regulations and amend existing regulations to
implement the requirements of these CEA sections.\2\
---------------------------------------------------------------------------
\2\ The Commission previously proposed capital and financial
reporting rules for SDs and MSPs in 2011. See Capital Requirements
of Swap Dealers and Major Swap Participants, 76 FR 27802 (May 12,
2011).
---------------------------------------------------------------------------
The Proposal generally permits the application of three alternative
approaches to the treatment of capital based upon existing U.S. bank
regulators' capital requirements or the CFTC's future commission
merchant and the Securities and Exchange Commission's broker-dealer net
liquid asset capital requirements. The Proposal further provides that
SDs predominantly engaged in non-financial activities and MSPs may
elect minimum capital requirements based upon the tangible net worth of
the entities. SDs may use internal models for purposes of computing
their regulatory capital, subject to prior approval by either the
Commission or the National Futures Association. The Proposal would also
require certain SDs and MSPs to satisfy defined liquidity and funding
requirements and would place certain
[[Page 13972]]
limitations on the withdrawal of capital from SDs as part of the SD
capital requirements.
In implementing the provisions of Section 4s(f) of the CEA, the
Proposal includes recordkeeping, reporting and notification
requirements for SDs and MSPs relative to their respective capital
requirements. The Proposal would also allow foreign SDs to comply with
comparable capital requirements in the home jurisdiction under a
program of substituted compliance.
In addition to proposing minimum capital and financial reporting
requirements for SDs and MSPs, the Proposal would also amend existing
capital requirements for FCMs to establish specific capital
requirements for FCMs that engage in swaps or security-based swaps that
are not cleared by a clearing organization. The Proposal also includes
certain technical amendments to several regulations as part of the
proposed capital and financial recordkeeping and reporting
requirements.
II. Extension of Comment Period
The comment period for the Proposal is due to expire on March 16,
2017. By letters dated February 24, 2017 and March 2, 2017,
respectively, the Securities Industry and Financial Markets Association
(SIFMA) and The Futures Industry Association (FIA), membership
organizations representing many firms that would be affected by the
Proposal, requested a 60-day extension of the comment period. In
support of their requests, SIFMA and FIA explained that firms have
extensive work to do in order to calculate the effect on their
activities of the different types of proposed capital requirements.
SIFMA further explained that the initial comment period overlaps with
firms' year-end accounting and reporting cycles as well as with the
deadline for firms' compliance with the Commission's uncleared swaps
margin rules, resulting in a significant drain on their resources.
SIFMA and FIA noted that given the complexity of the Proposal it will
require significant time beyond the Commission's initial March 16
comment deadline to fully assess the potential impact of the Proposal
on firms' operations.
In light of the foregoing, and in response to the SIFMA and FIA
requests, by this Federal Register release the Commission is extending
the comment period for the Proposal for 60 days, until May 15, 2017.
Issued in Washington, DC, on March 13, 2017, by the Commission.
Robert N. Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Capital Requirements of Swap Dealers and Major Swap
Participants--Commission Voting Summary
On this matter, Acting Chairman Giancarlo and Commissioner Bowen
voted in the affirmative. No Commissioner voted in the negative.
[FR Doc. 2017-05277 Filed 3-15-17; 8:45 am]
BILLING CODE 6351-01-P