Real-Time Public Reporting of Swap Transaction Data; Correction, 48060-48061 [2012-19664]

Download as PDF 48060 Federal Register / Vol. 77, No. 156 / Monday, August 13, 2012 / Rules and Regulations parties were invited to participate in this rulemaking effort by submitting written comments on the proposal to the FAA. No comments were received. Class E airspace designations are published in paragraph 6005, of FAA Order 7400.9V dated August 9, 2011, and effective September 15, 2011, which is incorporated by reference in 14 CFR 71.1. The Class E airspace designations listed in this document will be published subsequently in that Order. Order 1050.1E, ‘‘Environmental Impacts: Policies and Procedures,’’ paragraph 311a. This airspace action is not expected to cause any potentially significant environmental impacts, and no extraordinary circumstances exist that warrant preparation of an environmental assessment. Adoption of the Amendment In consideration of the foregoing, the Federal Aviation Administration amends 14 CFR part 71 as follows: History The Rule This action amends Title 14 Code of Federal Regulations (14 CFR) Part 71 by establishing Class E airspace extending upward from 700 feet above the surface, at Fort Morgan Municipal Airport, to accommodate IFR aircraft executing new RNAV (GPS) standard instrument approach procedures at the airport. This action is necessary for the safety and management of IFR operations. The FAA has determined this regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. Therefore, this regulation: (1) Is not a ‘‘significant regulatory action’’ under Executive Order 12866; (2) is not a ‘‘significant rule’’ under DOT Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified this rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act. The FAA’s authority to issue rules regarding aviation safety is found in Title 49 of the U.S. Code. Subtitle 1, Section 106 discusses the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency’s authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority as it establishes controlled airspace at Fort Morgan Municipal Airport, Fort Morgan, CO. On June 7, 2012, the FAA published in the Federal Register a notice of proposed rulemaking (NPRM) to establish controlled airspace at Fort Morgan, CO (77 FR 33687). Interested Environmental Review The FAA has determined that this action qualifies for categorical exclusion under the National Environmental Policy Act in accordance with FAA addition to the requirements of this section, use of the 30-minute power must be limited to no more than 30 minutes per use, and no more than one hour per flight. The use of the 30minute power must also be limited by: (1) The maximum rotational speed, which may not be greater than— (i) The maximum value determined by the rotor design; or (ii) The maximum value demonstrated during the type tests; (2) The maximum allowable gas temperature; and (3) The maximum allowable torque. Kimberly K. Smith, Manager, Rotorcraft Directorate, Aircraft Certification Service. [FR Doc. 2012–19444 Filed 8–10–12; 8:45 am] BILLING CODE 4910–13–P DEPARTMENT OF TRANSPORTATION Federal Aviation Administration 14 CFR Part 71 [Docket No. FAA–2012–0289; Airspace Docket No. 12–ANM–5] Establishment of Class E Airspace; Fort Morgan, CO Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: This action establishes Class E airspace at Fort Morgan, CO, to accommodate aircraft using a new Area Navigation (RNAV) Global Positioning System (GPS) standard instrument approach procedures at Fort Morgan Municipal Airport. This improves the safety and management of Instrument Flight Rules (IFR) operations at the airport. SUMMARY: Effective date, 0901 UTC, November 15, 2012. The Director of the Federal Register approves this incorporation by reference action under 1 CFR part 51, subject to the annual revision of FAA Order 7400.9 and publication of conforming amendments. FOR FURTHER INFORMATION CONTACT: Richard Roberts, Federal Aviation Administration, Operations Support Group, Western Service Center, 1601 Lind Avenue SW., Renton, WA 98057; telephone (425) 203–4517. SUPPLEMENTARY INFORMATION: mstockstill on DSK4VPTVN1PROD with RULES DATES: VerDate Mar<15>2010 15:57 Aug 10, 2012 Jkt 226001 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 List of Subjects in 14 CFR Part 71 Airspace, Incorporation by reference, Navigation (air). PART 71—DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS 1. The authority citation for 14 CFR part 71 continues to read as follows: ■ Authority: 49 U.S.C. 106(g), 40103, 40113, 40120; E. O. 10854, 24 FR 9565, 3 CFR, 1959– 1963 Comp., p. 389. § 71.1 [Amended] 2. The incorporation by reference in 14 CFR 71.1 of the Federal Aviation Administration Order 7400.9V, Airspace Designations and Reporting Points, dated August 9, 2011, and effective September 15, 2011 is amended as follows: Paragraph 6005 Class E airspace areas extending upward from 700 feet or more above the surface of the earth. * * * * * ANM CO E5 Fort Morgan, CO [New] Fort Morgan Municipal Airport, CO (Lat. 40°20′02″ N., Long.103°48′15″ W.) That airspace extending upward from 700 feet above the surface within 7.5-mile radius of the Fort Morgan Municipal Airport. Issued in Seattle, Washington, on August 3, 2012. Robert Henry, Acting Manager, Operations Support Group, Western Service Center. [FR Doc. 2012–19701 Filed 8–10–12; 8:45 am] BILLING CODE 4910–13–P COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 43 RIN 3038–AD08 Real-Time Public Reporting of Swap Transaction Data; Correction Commodity Futures Trading Commission. ACTION: Final rule; correction. AGENCY: E:\FR\FM\13AUR1.SGM 13AUR1 Federal Register / Vol. 77, No. 156 / Monday, August 13, 2012 / Rules and Regulations The Commodity Futures Trading Commission (‘‘CFTC’’ or ‘‘Commission’’) published the RealTime Public Reporting of Swap Transaction Data (‘‘Real-Time Public Reporting’’) rule and an accompanying preamble in the Federal Register on Monday, January 9, 2012 (77 FR 1182). This document makes an editorial correction to language of the preamble that conflicted with the rule text of the final rule. DATES: Effective Date: These corrections are effective August 13, 2012. FOR FURTHER INFORMATION CONTACT: Nancy Markowitz, Deputy Director, 202–418–5453, nmarkowitz@cftc.gov, Laurie Gussow, Attorney-Advisor, 202– 418–7623, lgussow@cftc.gov, Division of Market Oversight, Commodity Futures Trading Commission, Three Lafayette Center, 1155 21st Street NW., Washington, DC 20581. SUPPLEMENTARY INFORMATION: SUMMARY: I. Background The Commission published the final rule entitled Real-Time Public Reporting of Swap Transaction Data (‘‘Final Rule’’) in the Federal Register on January 9, 2012, (77 FR 1182), adopting rules to implement a framework for the real-time public reporting of swap transactions and pricing data for all swap transactions. The final rule, which became effective on March 9, 2012, contains a sentence in a footnote that created an inconsistency as to the type of swap transactions that may be considered ‘‘publicly reportable swap transactions’’ under the Final Rule. The sentence is corrected in this release to eliminate the inconsistent language in the footnote and, thus, make clear that certain, and not all, covered transactions as described in Sections 23A and 23B of the Federal Reserve Act may be considered ‘‘publicly-reportable swap transactions.’’ mstockstill on DSK4VPTVN1PROD with RULES II. Summary of the Correction to the Real-Time Public Reporting Rule The Commission received inquiries whether it considered all ‘‘covered transactions’’ between affiliates, as defined in Sections 23A and 23B of the Federal Reserve Act 1 to be ‘‘publicly 1 Section 608 of the Dodd-Frank Act adds to paragraph 7 of the definition of ‘‘covered transaction’’ in Section 23A of the Federal Reserve Act (12 U.S.C. 371(c)): ‘‘A derivative transaction, as defined in paragraph (3) of section 5200(b) of the Revised Statutes of the United States (12 U.S.C. 84(b)), with an affiliate, to the extent that the transaction causes a member bank or a subsidiary to have credit exposure to the affiliate.’’ Hence, all derivatives transactions will be subjected to Section 23A of the Federal Reserve Act to the extent that they cause the bank to have credit exposure to the affiliate. Section 23B of the Federal Reserve Act VerDate Mar<15>2010 15:57 Aug 10, 2012 Jkt 226001 reportable swap transactions.’’ As published, the last sentence of footnote 44 of the Final Rule reads: ‘‘The Commission considers any covered transaction between affiliates as described in Sections 23A and 23B of the Federal Reserve Act to be publicly reportable swap transactions.’’ This sentence unintentionally conflicts with the text of § 43.2 defining ‘‘publicly reportable swap transaction,’’ and with the preamble of the Final Rule. Section 43.2 defines the term ‘‘publicly reportable swap transaction,’’ and also provides an example of certain swap transactions that do not fall within the definition. Under § 43.2, in paragraph (2)(i) of the definition of ‘‘publicly reportable swap transaction,’’ certain inter-affiliate trades may not be reportable as the rule excludes from the definition of reportable swap transactions: ‘‘Internal swaps between one hundred percent owned subsidiaries of the same parent entity.’’ Paragraph (3) of the definition states that the examples of transactions set forth paragraph (2) of the definition that do not fall within the publicly reportable swap transaction definition ‘‘represent swaps that are not at arm’s length and thus are not publicly reportable swap transactions, notwithstanding that they do result in a corresponding change in the market risk position between two parties.’’ Indeed, there may be covered transactions as defined in Sections 23A and 23B of the Federal Reserve Act that are not at ‘‘arm’s length’’ transactions under Part 43, but which nevertheless result in a corresponding change in market risk between the two parties. Under § 43.2, those types of covered transactions would not be ‘‘publicly reportable swap transactions.’’ Further, correction of the footnote 44 sentence will remove any conflict with the preamble language. The preamble language immediately preceding the footnote states: ‘‘As adopted, the definition of a publicly reportable swap transaction also provides, by way of example, that internal transactions to move risk between wholly-owned subsidiaries of the same parent, without having credit exposure to the other party would not presently require contains an arm’s-length requirement stating that a member bank and its subsidiaries may engage in any covered transaction with an affiliate only ‘‘on terms and under circumstances, including credit standards, that are substantially the same, or at least as favorable to such bank or its subsidiary, as those prevailing at the time for comparable transactions with or involving other nonaffiliated companies, or in the absence of comparable transactions, on terms and under circumstances, including credit standards, that in good faith would be offered to, or would apply to, nonaffiliated companies.’’ PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 48061 public dissemination because such swaps are not arm’s-length transactions.’’ Again, there may be covered transactions as defined in Sections 23A and 23B of the Federal Reserve Act that may be internal transactions to move risk between wholly-owned subsidiaries of the same parent, without having credit exposure to the other party. Those transactions thus do not require public dissemination because they are not arm’s-length transactions. Accordingly, this document revises the language of the last sentence of footnote 44 on page 1187 of the Federal Register to read as follows: ‘‘Certain covered transactions between affiliates as described in Sections 23A and 23B of the Federal Reserve Act may be considered to be publicly reportable swap transactions.’’ For compliance purposes, this correction of the footnote sentence will result in a more accurate reflection of the regulatory language that the determination of whether a covered transaction under Section 23A or 23B of the Federal Reserve Act is a publicly reportable swap transaction should be made by the parties to the swap, rather than the Commission. In turn, the Commission’s review of such determination will be based upon the standards as set forth in § 43.2. III. Correction In FR Doc. 2011–33173 appearing on page 1182 in the Federal Register on Monday, January 9, 2012, the following correction is made: On page 1187, revise the last sentence of footnote 44 to read, ‘‘Certain covered transactions between affiliates as described in Sections 23A and 23B of the Federal Reserve Act may be considered to be publicly reportable swap transactions.’’ Dated: August 7, 2012. Sauntia S. Warfield, Assistant Secretary of the Commission. [FR Doc. 2012–19664 Filed 8–10–12; 8:45 am] BILLING CODE 6351–01–P ENVIRONMENTAL PROTECTION AGENCY 40 CFR Part 52 [EPA–R03–OAR–2012–0002; FRL–9710–7] Approval and Promulgation of Air Quality Implementation Plans; Pennsylvania; Regional Haze State Implementation Plan; Correction Environmental Protection Agency (EPA). AGENCY: E:\FR\FM\13AUR1.SGM 13AUR1

Agencies

[Federal Register Volume 77, Number 156 (Monday, August 13, 2012)]
[Rules and Regulations]
[Pages 48060-48061]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-19664]


=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 43

RIN 3038-AD08


Real-Time Public Reporting of Swap Transaction Data; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule; correction.

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

[[Page 48061]]

SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') published the Real-Time Public Reporting of Swap 
Transaction Data (``Real-Time Public Reporting'') rule and an 
accompanying preamble in the Federal Register on Monday, January 9, 
2012 (77 FR 1182). This document makes an editorial correction to 
language of the preamble that conflicted with the rule text of the 
final rule.

DATES: Effective Date: These corrections are effective August 13, 2012.

FOR FURTHER INFORMATION CONTACT: Nancy Markowitz, Deputy Director, 202-
418-5453, nmarkowitz@cftc.gov, Laurie Gussow, Attorney-Advisor, 202-
418-7623, lgussow@cftc.gov, Division of Market Oversight, Commodity 
Futures Trading Commission, Three Lafayette Center, 1155 21st Street 
NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. Background

    The Commission published the final rule entitled Real-Time Public 
Reporting of Swap Transaction Data (``Final Rule'') in the Federal 
Register on January 9, 2012, (77 FR 1182), adopting rules to implement 
a framework for the real-time public reporting of swap transactions and 
pricing data for all swap transactions. The final rule, which became 
effective on March 9, 2012, contains a sentence in a footnote that 
created an inconsistency as to the type of swap transactions that may 
be considered ``publicly reportable swap transactions'' under the Final 
Rule. The sentence is corrected in this release to eliminate the 
inconsistent language in the footnote and, thus, make clear that 
certain, and not all, covered transactions as described in Sections 23A 
and 23B of the Federal Reserve Act may be considered ``publicly-
reportable swap transactions.''

II. Summary of the Correction to the Real-Time Public Reporting Rule

    The Commission received inquiries whether it considered all 
``covered transactions'' between affiliates, as defined in Sections 23A 
and 23B of the Federal Reserve Act \1\ to be ``publicly reportable swap 
transactions.'' As published, the last sentence of footnote 44 of the 
Final Rule reads: ``The Commission considers any covered transaction 
between affiliates as described in Sections 23A and 23B of the Federal 
Reserve Act to be publicly reportable swap transactions.'' This 
sentence unintentionally conflicts with the text of Sec.  43.2 defining 
``publicly reportable swap transaction,'' and with the preamble of the 
Final Rule.
---------------------------------------------------------------------------

    \1\ Section 608 of the Dodd-Frank Act adds to paragraph 7 of the 
definition of ``covered transaction'' in Section 23A of the Federal 
Reserve Act (12 U.S.C. 371(c)): ``A derivative transaction, as 
defined in paragraph (3) of section 5200(b) of the Revised Statutes 
of the United States (12 U.S.C. 84(b)), with an affiliate, to the 
extent that the transaction causes a member bank or a subsidiary to 
have credit exposure to the affiliate.'' Hence, all derivatives 
transactions will be subjected to Section 23A of the Federal Reserve 
Act to the extent that they cause the bank to have credit exposure 
to the affiliate. Section 23B of the Federal Reserve Act contains an 
arm's-length requirement stating that a member bank and its 
subsidiaries may engage in any covered transaction with an affiliate 
only ``on terms and under circumstances, including credit standards, 
that are substantially the same, or at least as favorable to such 
bank or its subsidiary, as those prevailing at the time for 
comparable transactions with or involving other nonaffiliated 
companies, or in the absence of comparable transactions, on terms 
and under circumstances, including credit standards, that in good 
faith would be offered to, or would apply to, nonaffiliated 
companies.''
---------------------------------------------------------------------------

    Section 43.2 defines the term ``publicly reportable swap 
transaction,'' and also provides an example of certain swap 
transactions that do not fall within the definition. Under Sec.  43.2, 
in paragraph (2)(i) of the definition of ``publicly reportable swap 
transaction,'' certain inter-affiliate trades may not be reportable as 
the rule excludes from the definition of reportable swap transactions: 
``Internal swaps between one hundred percent owned subsidiaries of the 
same parent entity.'' Paragraph (3) of the definition states that the 
examples of transactions set forth paragraph (2) of the definition that 
do not fall within the publicly reportable swap transaction definition 
``represent swaps that are not at arm's length and thus are not 
publicly reportable swap transactions, notwithstanding that they do 
result in a corresponding change in the market risk position between 
two parties.'' Indeed, there may be covered transactions as defined in 
Sections 23A and 23B of the Federal Reserve Act that are not at ``arm's 
length'' transactions under Part 43, but which nevertheless result in a 
corresponding change in market risk between the two parties. Under 
Sec.  43.2, those types of covered transactions would not be ``publicly 
reportable swap transactions.''
    Further, correction of the footnote 44 sentence will remove any 
conflict with the preamble language. The preamble language immediately 
preceding the footnote states: ``As adopted, the definition of a 
publicly reportable swap transaction also provides, by way of example, 
that internal transactions to move risk between wholly-owned 
subsidiaries of the same parent, without having credit exposure to the 
other party would not presently require public dissemination because 
such swaps are not arm's-length transactions.'' Again, there may be 
covered transactions as defined in Sections 23A and 23B of the Federal 
Reserve Act that may be internal transactions to move risk between 
wholly-owned subsidiaries of the same parent, without having credit 
exposure to the other party. Those transactions thus do not require 
public dissemination because they are not arm's-length transactions.
    Accordingly, this document revises the language of the last 
sentence of footnote 44 on page 1187 of the Federal Register to read as 
follows: ``Certain covered transactions between affiliates as described 
in Sections 23A and 23B of the Federal Reserve Act may be considered to 
be publicly reportable swap transactions.''
    For compliance purposes, this correction of the footnote sentence 
will result in a more accurate reflection of the regulatory language 
that the determination of whether a covered transaction under Section 
23A or 23B of the Federal Reserve Act is a publicly reportable swap 
transaction should be made by the parties to the swap, rather than the 
Commission. In turn, the Commission's review of such determination will 
be based upon the standards as set forth in Sec.  43.2.

III. Correction

    In FR Doc. 2011-33173 appearing on page 1182 in the Federal 
Register on Monday, January 9, 2012, the following correction is made:
    On page 1187, revise the last sentence of footnote 44 to read, 
``Certain covered transactions between affiliates as described in 
Sections 23A and 23B of the Federal Reserve Act may be considered to be 
publicly reportable swap transactions.''

    Dated: August 7, 2012.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012-19664 Filed 8-10-12; 8:45 am]
BILLING CODE 6351-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.