Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds-Customer Confirmation Reporting Requirement Threshold Amount, 76150-76151 [E6-21668]

Download as PDF 76150 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Rules and Regulations monetary system, in the event that precipitous speculation or recycling causes a shortage of one-cent or 5-cent coins, is not insubstantial. Cf. Mobil Oil Corp., 728 F.2d at 1492. For these reasons, it has also been determined that, pursuant to 5 U.S.C. 553(d)(3), good cause exists to make this interim rule effective immediately. Although the Secretary of the Treasury has determined that it is necessary to make this interim rule effective immediately, the Department is interested in obtaining input from the public on this matter. The public therefore is invited to submit written comments concerning this interim rule. Within 120 days, the Department of the Treasury will evaluate the public comments and consider other relevant factors before deciding whether to issue a final rule extending or modifying the provisions of this interim rule, or allowing the interim rule to expire without extension. List of Subjects in 31 CFR Part 82 Administrative practice and procedure, Currency, Penalties. Authority and Issuance For the reasons set forth, Chapter 1 of Subtitle B of title 31 of the Code of Federal Regulations is amended by adding part 82 to read as follows: I PART 82—5-CENT AND ONE-CENT COIN REGULATIONS Sec. 82.1 82.2 82.3 82.4 Prohibitions. Exceptions. Definitions. Penalties. Authority: 31 U.S.C. 5111(d). § 82.1 Prohibitions. Except as specifically authorized by the Secretary of the Treasury (or designee) or as otherwise provided in this part, no person shall export, melt, or treat: (a) Any 5-cent coin of the United States; or (b) Any one-cent coin of the United States. rwilkins on PROD1PC63 with RULES § 82.2 Exceptions. (a) The prohibition contained in § 82.1 against the exportation of 5-cent coins and one-cent coins of the United States shall not apply to: (1) The exportation in any one shipment of 5-cent coins and one-cent coins having an aggregate face value of not more than $100 that are to be legitimately used as money or for numismatic purposes. Nothing in this paragraph shall be construed to authorize export for the purpose of sale VerDate Aug<31>2005 17:07 Dec 19, 2006 Jkt 211001 or resale of coins for melting or treatment by any person. (2) The exportation of 5-cent coins and one-cent coins having an aggregate face value amount of not more than $5 carried on an individual, or in the personal effects of an individual, departing from a place subject to the jurisdiction of the United States. (b) The prohibition contained in § 82.1 against the treatment of 5-cent coins and one-cent coins shall not apply to the treatment of these coins for educational, amusement, novelty, jewelry, and similar purposes as long as the volumes treated and the nature of the treatment makes it clear that such treatment is not intended as a means by which to profit solely from the value of the metal content of the coins. (c)(1) The prohibition contained in § 82.1 against exportation, melting, or treatment of 5-cent coins and one-cent coins of the United States shall not apply to coins exported, melted, or treated under a written license issued by the Secretary of the Treasury (or designee). (2) Applications for licenses should be transmitted to the Director, United States Mint, 801 9th Street, NW., Washington, DC 20220. § 82.3 Definitions. (a) ‘‘5-cent coin of the United States’’ means a 5-cent coin minted and issued by the Secretary of the Treasury pursuant to 31 U.S.C. 5112(a)(5). (b) ‘‘One-cent coin of the United States’’ means a one-cent coin minted and issued by the Secretary of the Treasury pursuant to 31 U.S.C. 5112(a)(6). (c) ‘‘Export’’ means to remove, send, ship, or carry, or to take any action with the intent to facilitate a person’s removing, sending, shipping, or carrying, from the United States or any place subject to the jurisdiction thereof, to any place outside of the United States or to any place not subject to the jurisdiction thereof. (d) ‘‘Person’’ means any individual, partnership, association, corporation, or other organization, but does not include an agency of the Government of the United States. (e) ‘‘Treat’’ or ‘‘treatment’’ means to smelt, refine, or otherwise treat by heating, or by a chemical, electrical, or mechanical process. § 82.4 Penalties. (a) Any person who exports, melts, or treats 5-cent coins or one-cent coins of the United States in violation of § 82.1 shall be subject to the penalties specified in 31 U.S.C. 5111(d), including a fine of not more than PO 00000 Frm 00040 Fmt 4700 Sfmt 4700 $10,000 and/or imprisonment of not more than 5 years. (b) In addition to the penalties prescribed by 31 U.S.C. 5111(d), a person violating the prohibitions of this part may be subject to other penalties provided by law, including 18 U.S.C. 1001(a). Dated: December 12, 2006. Edmund C. Moy, Director, United States Mint. [FR Doc. 06–9777 Filed 12–15–06; 12:41 pm] BILLING CODE 4810–02–P DEPARTMENT OF THE TREASURY Fiscal Service 31 CFR Part 356 [Docket No. BPD GSRS 06–02] Sale and Issue of Marketable BookEntry Treasury Bills, Notes, and Bonds—Customer Confirmation Reporting Requirement Threshold Amount Bureau of the Public Debt, Fiscal Service, Treasury. ACTION: Final rule. AGENCY: SUMMARY: The Department of the Treasury (‘‘Treasury,’’ ‘‘We,’’ or ‘‘Us’’) is issuing in final form an amendment to 31 CFR part 356 (Uniform Offering Circular for the Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, and Bonds) that raises the customer confirmation reporting requirement threshold amount from $500 million to $750 million. Beginning on December 31, 2006, any customer awarded a par amount of $750 million or more in a Treasury marketable securities auction must send us a confirmation of its awarded bid(s) by 10 a.m. on the day following the auction. This final rule also clarifies that customer confirmations may now be sent by e-mail as well as by fax or hand delivery. DATES: Effective Date: January 1, 2007. ADDRESSES: You may download this final rule from the Bureau of the Public Debt’s Web site at http:// www.treasurydirect.gov or from the Electronic Code of Federal Regulations (e-CFR) Web site at http:// www.gpoaccess.gov/ecfr. It is also available for public inspection and copying at the Treasury Department Library, Room 1428, Main Treasury Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. To visit the library, call (202) 622–0990 for an appointment. E:\FR\FM\20DER1.SGM 20DER1 Federal Register / Vol. 71, No. 244 / Wednesday, December 20, 2006 / Rules and Regulations Lori Santamorena (Executive Director) or Chuck Andreatta (Associate Director), Bureau of the Public Debt, Government Securities Regulations Staff, (202) 504– 3632 or e-mail us at govsecreg@bpd.treas.gov. FOR FURTHER INFORMATION CONTACT: The Uniform Offering Circular (UOC), in conjunction with the announcement for each auction, provides the terms and conditions for the sale and issuance in an auction to the public of marketable Treasury bills, notes and bonds.1 Since 1992 Treasury has required customers 2 awarded a par amount of $500 million or more in a Treasury marketable securities auction to provide a written confirmation of their awarded bids, including the name of the submitter that submitted the bids on their behalf.3 The confirmation must also include a statement with certain information related to the customer’s net long position.4 The confirmation must be sent no later than 10 a.m. on the day following the auction. According to the UOC, the confirmation must be in writing and signed by the customer or by an authorized representative.5 In addition, since November 2005, we have permitted customers to e-mail us their confirmations. SUPPLEMENTARY INFORMATION: rwilkins on PROD1PC63 with RULES The customer confirmation requirement helps prevent large, false (unauthorized) customer bids from being awarded securities in an auction. On May 3, 2006, Treasury announced that it was contemplating changes to the customer confirmation requirement and cited the fact that the reporting threshold has never been changed despite changes in average auction sizes 1 The Uniform Offering Circular was published as a final rule on January 5, 1993 (58 FR 412). The circular, as amended, is codified at 31 CFR part 356. A final rule converting the UOC to plain language and making certain other minor changes was published in the Federal Register on July 28, 2004 (69 FR 45202). 2 ‘‘Customer’’ is defined in the UOC as a bidder that directs a depository institution or dealer to submit or forward a bid for a specific amount of securities in a specific auction on the bidder’s behalf. See § 356.2. 3 Department of the Treasury, Securities and Exchange Commission and Board of Governors of the Federal Reserve System Joint Report on the Government Securities Market, pp. 7–8. (January 1992). See also § 356.24(d). 4 See § 356.24(d)(2). 5 If an authorized representative signs the confirmation, it must include the capacity in which the representative is acting. VerDate Aug<31>2005 17:07 Dec 19, 2006 Jkt 211001 and transaction volumes.6 On August 2, 2006, Treasury announced that, beginning on December 31, 2006, the customer confirmation reporting requirement threshold amount will be raised from $500 million or more to $750 million or more.7 We are raising the threshold amount to reduce the regulatory burden on customers complying with this requirement, since auction offering amounts, on average, are substantially higher than they were when the requirement was first implemented. We are also adding e-mail into the UOC as an acceptable method for customers to send confirmations. This addition supports our goal of allowing securities auction transactions to be conducted with us electronically whenever possible. We are not making any changes to the requirement that a submitter or intermediary submitting bids for a customer notify the customer of the confirmation requirement if its auction awards are equal to or greater than the threshold. Also, no change is being made to the information that is required on the confirmation and the deadline for us to receive it. This final rule will be effective for all marketable Treasury securities auctions occurring after December 31, 2006. Procedural Requirements This final rule is not a significant regulatory action for purposes of Executive Order 12866. The notice and public procedures requirements of the Administrative Procedure Act do not apply, under 5 U.S.C. 553(a)(2). Since a notice of proposed rulemaking is not required, the provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do not apply. The Office of Management and Budget previously approved the collections of information in this final amendment in accordance with the Paperwork Reduction Act under control number 1535–0112. We are not making substantive changes to these requirements that would impose additional burdens on auction bidders. List of Subjects in 31 CFR Part 356 Bonds, Federal Reserve System, Government securities, Securities. 6 See Quarterly Refunding Statement by Emil W. Henry, Jr., Assistant Secretary for Financial Institutions (May 2006). 7 See Quarterly Refunding Statement by Emil W. Henry, Jr., Assistant Secretary for Financial Institutions (August 2006). PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 76151 For the reasons stated in the preamble, 31 CFR part 356 is amended as follows: I PART 356—SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT SERIES NO. 1–93) 1. The authority citation for part 356 continues to read as follows: I Authority: 5 U.S.C. 301; 31 U.S.C. 3102 et seq.; 12 U.S.C. 391. 2. Revise § 356.24 (d) to read as follows: I § 356.24 Will I be notified directly of my awards and, if I am submitting bids for others, do I have to provide confirmations? * * * * * (d) Customer confirmation. Any customer awarded a par amount of $750 million or more in an auction must send us a confirmation in written form or via e-mail containing the information in paragraphs (d)(1) and (2) of this section. The confirmation must be sent no later than 10 a.m. on the day following the auction. If sent in written form, the confirmation must be signed by the customer or authorized representative. Confirmations sent by e-mail must be sent by the customer or authorized representative. Confirmations signed or sent by an authorized representative must include the capacity in which the representative is acting. A submitter or intermediary submitting or forwarding bids for a customer must notify the customer of this reporting requirement if we award the customer $750 million or more as a result of those bids. The information the customer must provide is: (1) A confirmation of the awarded bid(s), including the name of the submitter that submitted the bid(s) on the customer’s behalf, and (2) A statement indicating whether the customer had a reportable net long position as defined in § 356.13. If a position had to be reported, the statement must provide the amount of the position and the name of the submitter that the customer requested to report the position. Dated: December 12, 2006. Donald V. Hammond, Fiscal Assistant Secretary. [FR Doc. E6–21668 Filed 12–19–06; 8:45 am] BILLING CODE 4810–39–P E:\FR\FM\20DER1.SGM 20DER1

Agencies

[Federal Register Volume 71, Number 244 (Wednesday, December 20, 2006)]
[Rules and Regulations]
[Pages 76150-76151]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E6-21668]


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DEPARTMENT OF THE TREASURY

Fiscal Service

31 CFR Part 356

[Docket No. BPD GSRS 06-02]


Sale and Issue of Marketable Book-Entry Treasury Bills, Notes, 
and Bonds--Customer Confirmation Reporting Requirement Threshold Amount

AGENCY: Bureau of the Public Debt, Fiscal Service, Treasury.

ACTION: Final rule.

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

SUMMARY: The Department of the Treasury (``Treasury,'' ``We,'' or 
``Us'') is issuing in final form an amendment to 31 CFR part 356 
(Uniform Offering Circular for the Sale and Issue of Marketable Book-
Entry Treasury Bills, Notes, and Bonds) that raises the customer 
confirmation reporting requirement threshold amount from $500 million 
to $750 million. Beginning on December 31, 2006, any customer awarded a 
par amount of $750 million or more in a Treasury marketable securities 
auction must send us a confirmation of its awarded bid(s) by 10 a.m. on 
the day following the auction. This final rule also clarifies that 
customer confirmations may now be sent by e-mail as well as by fax or 
hand delivery.

DATES: Effective Date: January 1, 2007.

ADDRESSES: You may download this final rule from the Bureau of the 
Public Debt's Web site at http://www.treasurydirect.gov or from the 
Electronic Code of Federal Regulations (e-CFR) Web site at http://
www.gpoaccess.gov/ecfr. It is also available for public inspection and 
copying at the Treasury Department Library, Room 1428, Main Treasury 
Building, 1500 Pennsylvania Avenue, NW., Washington, DC 20220. To visit 
the library, call (202) 622-0990 for an appointment.

[[Page 76151]]


FOR FURTHER INFORMATION CONTACT: Lori Santamorena (Executive Director) 
or Chuck Andreatta (Associate Director), Bureau of the Public Debt, 
Government Securities Regulations Staff, (202) 504-3632 or e-mail us at 
govsecreg@bpd.treas.gov.

SUPPLEMENTARY INFORMATION: The Uniform Offering Circular (UOC), in 
conjunction with the announcement for each auction, provides the terms 
and conditions for the sale and issuance in an auction to the public of 
marketable Treasury bills, notes and bonds.\1\ Since 1992 Treasury has 
required customers \2\ awarded a par amount of $500 million or more in 
a Treasury marketable securities auction to provide a written 
confirmation of their awarded bids, including the name of the submitter 
that submitted the bids on their behalf.\3\ The confirmation must also 
include a statement with certain information related to the customer's 
net long position.\4\ The confirmation must be sent no later than 10 
a.m. on the day following the auction. According to the UOC, the 
confirmation must be in writing and signed by the customer or by an 
authorized representative.\5\ In addition, since November 2005, we have 
permitted customers to e-mail us their confirmations.
---------------------------------------------------------------------------

    \1\ The Uniform Offering Circular was published as a final rule 
on January 5, 1993 (58 FR 412). The circular, as amended, is 
codified at 31 CFR part 356. A final rule converting the UOC to 
plain language and making certain other minor changes was published 
in the Federal Register on July 28, 2004 (69 FR 45202).
    \2\ ``Customer'' is defined in the UOC as a bidder that directs 
a depository institution or dealer to submit or forward a bid for a 
specific amount of securities in a specific auction on the bidder's 
behalf. See Sec.  356.2.
    \3\ Department of the Treasury, Securities and Exchange 
Commission and Board of Governors of the Federal Reserve System 
Joint Report on the Government Securities Market, pp. 7-8. (January 
1992). See also Sec.  356.24(d).
    \4\ See Sec.  356.24(d)(2).
    \5\ If an authorized representative signs the confirmation, it 
must include the capacity in which the representative is acting.
---------------------------------------------------------------------------

    The customer confirmation requirement helps prevent large, false 
(unauthorized) customer bids from being awarded securities in an 
auction. On May 3, 2006, Treasury announced that it was contemplating 
changes to the customer confirmation requirement and cited the fact 
that the reporting threshold has never been changed despite changes in 
average auction sizes and transaction volumes.\6\ On August 2, 2006, 
Treasury announced that, beginning on December 31, 2006, the customer 
confirmation reporting requirement threshold amount will be raised from 
$500 million or more to $750 million or more.\7\ We are raising the 
threshold amount to reduce the regulatory burden on customers complying 
with this requirement, since auction offering amounts, on average, are 
substantially higher than they were when the requirement was first 
implemented.
---------------------------------------------------------------------------

    \6\ See Quarterly Refunding Statement by Emil W. Henry, Jr., 
Assistant Secretary for Financial Institutions (May 2006).
    \7\ See Quarterly Refunding Statement by Emil W. Henry, Jr., 
Assistant Secretary for Financial Institutions (August 2006).
---------------------------------------------------------------------------

    We are also adding e-mail into the UOC as an acceptable method for 
customers to send confirmations. This addition supports our goal of 
allowing securities auction transactions to be conducted with us 
electronically whenever possible.
    We are not making any changes to the requirement that a submitter 
or intermediary submitting bids for a customer notify the customer of 
the confirmation requirement if its auction awards are equal to or 
greater than the threshold. Also, no change is being made to the 
information that is required on the confirmation and the deadline for 
us to receive it.
    This final rule will be effective for all marketable Treasury 
securities auctions occurring after December 31, 2006.

Procedural Requirements

    This final rule is not a significant regulatory action for purposes 
of Executive Order 12866. The notice and public procedures requirements 
of the Administrative Procedure Act do not apply, under 5 U.S.C. 
553(a)(2).
    Since a notice of proposed rulemaking is not required, the 
provisions of the Regulatory Flexibility Act (5 U.S.C. 601 et seq.) do 
not apply.
    The Office of Management and Budget previously approved the 
collections of information in this final amendment in accordance with 
the Paperwork Reduction Act under control number 1535-0112. We are not 
making substantive changes to these requirements that would impose 
additional burdens on auction bidders.

List of Subjects in 31 CFR Part 356

    Bonds, Federal Reserve System, Government securities, Securities.

0
For the reasons stated in the preamble, 31 CFR part 356 is amended as 
follows:

PART 356--SALE AND ISSUE OF MARKETABLE BOOK-ENTRY TREASURY BILLS, 
NOTES, AND BONDS (DEPARTMENT OF THE TREASURY CIRCULAR, PUBLIC DEBT 
SERIES NO. 1-93)

0
1. The authority citation for part 356 continues to read as follows:

    Authority: 5 U.S.C. 301; 31 U.S.C. 3102 et seq.; 12 U.S.C. 391.


0
2. Revise Sec.  356.24 (d) to read as follows:


Sec.  356.24  Will I be notified directly of my awards and, if I am 
submitting bids for others, do I have to provide confirmations?

* * * * *
    (d) Customer confirmation. Any customer awarded a par amount of 
$750 million or more in an auction must send us a confirmation in 
written form or via e-mail containing the information in paragraphs 
(d)(1) and (2) of this section. The confirmation must be sent no later 
than 10 a.m. on the day following the auction. If sent in written form, 
the confirmation must be signed by the customer or authorized 
representative. Confirmations sent by e-mail must be sent by the 
customer or authorized representative. Confirmations signed or sent by 
an authorized representative must include the capacity in which the 
representative is acting. A submitter or intermediary submitting or 
forwarding bids for a customer must notify the customer of this 
reporting requirement if we award the customer $750 million or more as 
a result of those bids. The information the customer must provide is:
    (1) A confirmation of the awarded bid(s), including the name of the 
submitter that submitted the bid(s) on the customer's behalf, and
    (2) A statement indicating whether the customer had a reportable 
net long position as defined in Sec.  356.13. If a position had to be 
reported, the statement must provide the amount of the position and the 
name of the submitter that the customer requested to report the 
position.

    Dated: December 12, 2006.
Donald V. Hammond,
Fiscal Assistant Secretary.
 [FR Doc. E6-21668 Filed 12-19-06; 8:45 am]
BILLING CODE 4810-39-P