Antidisruptive Practices Authority, 14826-14827 [2011-6399]

Download as PDF 14826 Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Proposed Rules You may submit comments, identified by RIN number, by any of the following methods: • Agency Web site, via its Comments Online process: https:// comments.cftc.gov. Follow the instructions for submitting comments through the Web site. • Mail: David A. Stawick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 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 comments by only one method. 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 may be 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 § 145.9 of the Commission’s regulations.1 The Commission reserves the right, but shall have no obligation, to review, prescreen, 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 FOIA. FOR FURTHER INFORMATION CONTACT: Nancy Markowitz, Assistant Deputy Director, 202–418–5453, nmarkowitz@cftc.gov, or Nadia Zakir, Attorney-Advisor, 202–418–5720, nzakir@cftc.gov, Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION: On December 22, 2010, the Commission published in the Federal Register a notice of proposed rulemaking, in jlentini on DSKJ8SOYB1PROD with PROPOSALS ADDRESSES: 1 Commission regulations referred to herein are found at 17 CFR Ch. 1 (2010). They are accessible on the Commission’s Web site at https:// www.cftc.gov. VerDate Mar<15>2010 15:53 Mar 17, 2011 Jkt 223001 which it proposed rules, guidance, and acceptable practices, to be applicable to the designation and operation of contract markets, as well as the listing, trading, and execution of swaps on designated contract markets.2 The notice of proposed rulemaking would implement certain provisions of sections 723, 733, and 735 of the Wall Street Reform and Consumer Protection Act (the ‘‘Dodd-Frank Act’’). The comment period for the proposed rulemaking closed on February 22, 2011. Since the close of the proposed rulemaking, data has been made publicly available to support the rulemaking, in particular, proposed § 38.502(a), the proposed ‘‘minimum centralized market trading percentage requirement.’’ Discussion of this proposed requirement is available in the notice of proposed rulemaking at pages 80588 and 80589 of the Federal Register publication. The data has been made available on the Commission’s Web site at https://comments.cftc.gov/ FederalRegister/Proposed.aspx?Type= ListAll&Year=2010, the same location as the Commission’s notice of proposed rulemaking. All persons wishing to comment on proposed regulation 38.502(a) (‘‘Minimum Centralized Market Trading Percentage Requirement’’), in light of the data that has been made available may do so by submitting comments using one of the methods provided above through April 18, 2011. Issued in Washington, DC, on March 14, 2011, by the Commission. David A. Stawick, Secretary of the Commission. [FR Doc. 2011–6382 Filed 3–17–11; 8:45 am] BILLING CODE 6351–01–P COMMODITY FUTURES TRADING COMMISSION 17 CFR Chapter I RIN 3038–AD26 Antidisruptive Practices Authority Commodity Futures Trading Commission. ACTION: Advance notice of proposed rulemaking; notice of termination. AGENCY: On November 2, 2010, the Commodity Futures Trading Commission (‘‘Commission’’) issued in the Federal Register an advance notice of proposed rulemaking (‘‘ANPR’’). In this ANPR, the Commission requested public comment to assist it with promulgating rules and regulations to implement the disruptive practices set forth in section 4c(a) of the Commodity Exchange Act (‘‘CEA’’), as amended by section 747 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’). After considering the comments that were submitted in response to the ANPR, the Commission decided not to issue any regulations at this time relating to new section 4c(a). Instead, the Commission is publishing today elsewhere in the Federal Register a proposed order interpreting new section 4c(a)(5). The Commission is also terminating the ANPR issued on November 2, 2010. DATES: Effective March 18, 2011. FOR FURTHER INFORMATION CONTACT: Robert Pease, Counsel to the Director of Enforcement, 202–418–5863, rpease@cftc.gov; Steven E. Seitz, Attorney, Office of the General Counsel, 202–418–5615, sseitz@cftc.gov; or Mark D. Higgins, Counsel to the Director of Enforcement, 202–418–5864, mhiggins@cftc.gov, Commodity Futures Trading Commission, Three Lafayette Centre, 1151 21st Street, NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION: On July 21, 2010, President Obama signed the Dodd-Frank Act.1 Title VII of the DoddFrank Act 2 amended the Commodity Exchange Act (‘‘CEA’’) 3 to establish a comprehensive new regulatory framework for swaps and security-based swaps. The legislation was enacted to reduce risk, increase transparency, and promote market integrity within the financial system by, among other things: (1) Providing for the registration and comprehensive regulation of swap dealers and major swap participants; (2) imposing clearing and trade execution requirements on standardized derivative products; (3) creating robust recordkeeping and real-time reporting regimes; and (4) enhancing the Commission’s rulemaking and enforcement authorities with respect to, among others, all registered entities and intermediaries subject to the Commission’s oversight. Section 747 of the Dodd-Frank Act amends section 4c(a) of the CEA to add a new section entitled ‘‘Disruptive Practices.’’ SUMMARY: 2 See Core Principles and Other Requirements for Designated Contract Markets, 75 FR 80572, 80588– 89, Dec. 22, 2010. PO 00000 Frm 00008 Fmt 4702 Sfmt 4702 1 See Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111–203, 124 Stat. 1376 (2010). The text of the Dodd-Frank Act may be accessed at https://www.cftc.gov./ LawRegulation/OTCDERIVATIVES/index.htm. 2 Pursuant to Section 701 of the Dodd-Frank Act, Title VII may be cited as the ‘‘Wall Street Transparency and Accountability Act of 2010.’’ 3 7 U.S.C. 1 et seq. (2006). E:\FR\FM\18MRP1.SGM 18MRP1 Federal Register / Vol. 76, No. 53 / Friday, March 18, 2011 / Proposed Rules New section 4c(a) expressly prohibits certain trading practices that are disruptive of fair and equitable trading. New section 4c(a) of the CEA makes it unlawful for any person to engage in any trading, practice, or conduct on or subject to the rules of a registered entity that— DEPARTMENT OF THE TREASURY (A) Violates bids or offers; (B) Demonstrates intentional or reckless disregard for the orderly execution of transactions during the closing period; or (C) Is, is of the character of, or is commonly known to the trade as, ‘‘spoofing’’ (bidding or offering with the intent to cancel the bid or offer before execution). Disclosure of Returns and Return Information to Designee of Taxpayer Section 747 of the Dodd-Frank Act also amended section 4c(a) by granting the Commission authority to promulgate such ‘‘rules and regulations as, in the judgment of the Commission, are reasonably necessary to prohibit the trading practices’’ enumerated in section 747 ‘‘and any other trading practice that is disruptive of fair and equitable trading.’’ The prohibition on the disruptive practices specified in new section 4c(a) will become effective 360 days after the enactment of the DoddFrank Act. On November 2, 2010, the Commission issued an ANPR inviting public comment on all aspects of section 747 of the Dodd-Frank Act.4 After reviewing the ANPR comments that were submitted, the Commission determined that it should address the disruptive practices by issuing a proposed order interpreting new CEA section 4c(a). Accordingly, this document terminates the ANPR issued on November 2, 2010. The proposed interpretive order referenced above, which incorporates the ANPR comments, is being published today elsewhere in the notice section of the Federal Register. This proposed interpretive order will provide market participants and the public with guidance on the scope of the three statutory disruptive practices set forth in new CEA section 4c(a). jlentini on DSKJ8SOYB1PROD with PROPOSALS Issued in Washington, DC, on March 14, 2011, by the Commission. David A. Stawick, Secretary of the Commission. [FR Doc. 2011–6399 Filed 3–17–11; 8:45 am] BILLING CODE 6351–01–P 4 Anti-Disruptive Trading Practices Authority Contained in the Dodd-Frank Wall Street Reform and Consumer Protection Act, 75 FR 211, Nov. 2, 2010. VerDate Mar<15>2010 15:53 Mar 17, 2011 Jkt 223001 Internal Revenue Service 26 CFR Part 301 [REG–153338–09] RIN 1545–BJ19 Internal Revenue Service (IRS), Treasury. ACTION: Notice of proposed rulemaking and notice of public hearing. AGENCY: This document contains a proposed regulation pertaining to the period for submission to the IRS of taxpayer authorizations permitting disclosure of returns and return information to third-party designees. Specifically, the proposed regulation extends from 60 days to 120 days the period within which a signed and dated authorization must be received by the IRS (or an agent or contractor of the IRS) in order for it to be effective. The proposed regulation extends the period as some institutions charged with assisting taxpayers in their financial dealings have encountered difficulty in obtaining written authorizations and submitting the authorizations within the 60-day period allowed by the existing regulations. The proposed regulation will affect taxpayers who submit authorizations permitting disclosure of returns and return information to thirdparty designees. This document also provides notice of a public hearing on the proposed regulation. DATES: Written or electronic comments must be received by May 17, 2011. Outlines of topics to be discussed at the public hearing scheduled for Thursday, June 9, 2011 at 10 a.m. must be received by Wednesday, May 18, 2011. ADDRESSES: Send submissions to CC:PA:LPD:PR (REG–153338–09), room 5205, Internal Revenue Service, P.O. Box 7604, Ben Franklin Station, Washington, DC 20044. Submissions may be hand delivered Monday through Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG–153338– 09), Courier’s Desk, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC, or sent electronically via the Federal eRulemaking Portal at www.regulations.gov (IRS REG–153338– 09). The public hearing will be held in Auditorium, Internal Revenue Service, 1111 Constitution Avenue, NW., Washington, DC. FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulation, SUMMARY: PO 00000 Frm 00009 Fmt 4702 Sfmt 4702 14827 contact Amy Mielke, (202) 622–4570; concerning submissions of comments, the hearing, or to be placed on the building access list to attend the hearing, Oluwafunmilayo Taylor, (202) 622–7180 (not toll-free numbers). SUPPLEMENTARY INFORMATION: Paperwork Reduction Act The collection of information contained in this proposed regulation has been previously approved by the Office of Management and Budget in accordance with the Paperwork Reduction Act of 1995 (44 U.S.C. 3507(d)) under control number 1545–1816. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget. Books and records relating to the collection of information must be retained as long as their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by section 6103. Background This document contains proposed amendments to the Procedure and Administration Regulations (26 CFR part 301). Section 6103(c) of the Internal Revenue Code (Code) authorizes the IRS (or an agent or contractor of the IRS) to disclose returns and return information to such person or persons as the taxpayer may designate in a request for or consent to disclosure. The proposed regulation amends § 301.6103(c)–1 by extending the period for submission to the IRS of taxpayer authorizations permitting disclosure of returns and return information to designees of a taxpayer. Specifically, the proposed regulation extends from 60 days to 120 days the period within which a signed and dated authorization must be received by the IRS (or an agent or contractor of the IRS) in order for it to be effective. On December 18, 2009, the IRS published Notice 2010–8, 2010–3 IRB 297, which announced an intention to amend the regulation under § 301.6103(c)–1 to expand the time frame for submission of section 6103(c) authorizations. The notice additionally announced interim rules extending from 60 days to 120 days the period within which section 6103(c) authorizations must be received in order to be effective. The interim rules apply to authorizations signed and dated on or after October 19, 2009. Per Notice 2010– E:\FR\FM\18MRP1.SGM 18MRP1

Agencies

[Federal Register Volume 76, Number 53 (Friday, March 18, 2011)]
[Proposed Rules]
[Pages 14826-14827]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6399]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Chapter I

RIN 3038-AD26


Antidisruptive Practices Authority

AGENCY: Commodity Futures Trading Commission.

ACTION: Advance notice of proposed rulemaking; notice of termination.

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SUMMARY: On November 2, 2010, the Commodity Futures Trading Commission 
(``Commission'') issued in the Federal Register an advance notice of 
proposed rulemaking (``ANPR''). In this ANPR, the Commission requested 
public comment to assist it with promulgating rules and regulations to 
implement the disruptive practices set forth in section 4c(a) of the 
Commodity Exchange Act (``CEA''), as amended by section 747 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank 
Act''). After considering the comments that were submitted in response 
to the ANPR, the Commission decided not to issue any regulations at 
this time relating to new section 4c(a). Instead, the Commission is 
publishing today elsewhere in the Federal Register a proposed order 
interpreting new section 4c(a)(5). The Commission is also terminating 
the ANPR issued on November 2, 2010.

DATES: Effective March 18, 2011.

FOR FURTHER INFORMATION CONTACT: Robert Pease, Counsel to the Director 
of Enforcement, 202-418-5863, rpease@cftc.gov; Steven E. Seitz, 
Attorney, Office of the General Counsel, 202-418-5615, sseitz@cftc.gov; 
or Mark D. Higgins, Counsel to the Director of Enforcement, 202-418-
5864, mhiggins@cftc.gov, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1151 21st Street, NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On July 21, 2010, President Obama signed the 
Dodd-Frank Act.\1\ Title VII of the Dodd-Frank Act \2\ amended the 
Commodity Exchange Act (``CEA'') \3\ to establish a comprehensive new 
regulatory framework for swaps and security-based swaps. The 
legislation was enacted to reduce risk, increase transparency, and 
promote market integrity within the financial system by, among other 
things: (1) Providing for the registration and comprehensive regulation 
of swap dealers and major swap participants; (2) imposing clearing and 
trade execution requirements on standardized derivative products; (3) 
creating robust recordkeeping and real-time reporting regimes; and (4) 
enhancing the Commission's rulemaking and enforcement authorities with 
respect to, among others, all registered entities and intermediaries 
subject to the Commission's oversight. Section 747 of the Dodd-Frank 
Act amends section 4c(a) of the CEA to add a new section entitled 
``Disruptive Practices.''
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    \1\ See Dodd-Frank Wall Street Reform and Consumer Protection 
Act, Public Law 111-203, 124 Stat. 1376 (2010). The text of the 
Dodd-Frank Act may be accessed at https://www.cftc.gov./
LawRegulation/OTCDERIVATIVES/index.htm.
    \2\ Pursuant to Section 701 of the Dodd-Frank Act, Title VII may 
be cited as the ``Wall Street Transparency and Accountability Act of 
2010.''
    \3\ 7 U.S.C. 1 et seq. (2006).

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[[Page 14827]]

    New section 4c(a) expressly prohibits certain trading practices 
that are disruptive of fair and equitable trading. New section 4c(a) of 
the CEA makes it unlawful for any person to engage in any trading, 
practice, or conduct on or subject to the rules of a registered entity 
---------------------------------------------------------------------------
that--

(A) Violates bids or offers;
(B) Demonstrates intentional or reckless disregard for the orderly 
execution of transactions during the closing period; or
(C) Is, is of the character of, or is commonly known to the trade 
as, ``spoofing'' (bidding or offering with the intent to cancel the 
bid or offer before execution).

    Section 747 of the Dodd-Frank Act also amended section 4c(a) by 
granting the Commission authority to promulgate such ``rules and 
regulations as, in the judgment of the Commission, are reasonably 
necessary to prohibit the trading practices'' enumerated in section 747 
``and any other trading practice that is disruptive of fair and 
equitable trading.'' The prohibition on the disruptive practices 
specified in new section 4c(a) will become effective 360 days after the 
enactment of the Dodd-Frank Act.
    On November 2, 2010, the Commission issued an ANPR inviting public 
comment on all aspects of section 747 of the Dodd-Frank Act.\4\ After 
reviewing the ANPR comments that were submitted, the Commission 
determined that it should address the disruptive practices by issuing a 
proposed order interpreting new CEA section 4c(a). Accordingly, this 
document terminates the ANPR issued on November 2, 2010. The proposed 
interpretive order referenced above, which incorporates the ANPR 
comments, is being published today elsewhere in the notice section of 
the Federal Register.
---------------------------------------------------------------------------

    \4\ Anti-Disruptive Trading Practices Authority Contained in the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, 75 FR 
211, Nov. 2, 2010.
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    This proposed interpretive order will provide market participants 
and the public with guidance on the scope of the three statutory 
disruptive practices set forth in new CEA section 4c(a).

    Issued in Washington, DC, on March 14, 2011, by the Commission.
David A. Stawick,
Secretary of the Commission.
[FR Doc. 2011-6399 Filed 3-17-11; 8:45 am]
BILLING CODE 6351-01-P
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