Position Limits for Derivatives and Aggregation of Positions, 37973-37974 [2014-15618]
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Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Proposed Rules
In addition, we encourage written or
electronic comments. Written or
electronic comments will be accepted
until October 31, 2014. Please note that
all comments should be restricted to the
topics covered by the workshop, as
described in this Announcement.
Dated: June 25, 2014.
Todd A. Stevenson,
Secretary, U.S. Consumer Product Safety
Commission.
[FR Doc. 2014–15241 Filed 7–2–14; 8:45 am]
BILLING CODE 6355–01–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Parts 1, 15, 17, 19, 32, 37, 38,
140, and 150
RIN 3038–AD99; 3038–AD82
Position Limits for Derivatives and
Aggregation of Positions
Commodity Futures Trading
Commission.
ACTION: Notice of proposed rulemaking;
extension of comment periods.
AGENCY:
On December 12, 2013, the
Commodity Futures Trading
Commission (‘‘Commission’’) published
in the Federal Register a notice of
proposed rulemaking (the ‘‘Position
Limits Proposal’’) to establish
speculative position limits for 28
exempt and agricultural commodity
futures and options contracts and the
physical commodity swaps that are
economically equivalent to such
contracts. On November 15, 2013, the
Commission published in the Federal
Register a notice of proposed
rulemaking (the ‘‘Aggregation
Proposal’’) to amend existing
regulations setting out the Commission’s
policy for aggregation under its position
limits regime. In addition, the
Commission directed staff to hold a
public roundtable on June 19, 2014, to
consider certain issues regarding
position limits for physical commodity
derivatives. In order to provide
interested parties with an opportunity to
comment on the issues to be discussed
at the roundtable, the Commission
published notice in the Federal Register
on May 29, 2014, that the comment
periods for the Position Limits Proposal
and the Aggregation Proposal were
reopened, starting June 12, 2014 (one
week before the roundtable) and ending
July 3, 2014 (two weeks following the
roundtable). To provide commenters
with a sufficient period of time to
respond to questions raised and points
made at the roundtable, the Commission
ehiers on DSK2VPTVN1PROD with PROPOSALS
SUMMARY:
VerDate Mar<15>2010
13:51 Jul 02, 2014
Jkt 232001
is now further extending the comment
period. Comments should be limited to
the issues of hedges of a physical
commodity by a commercial enterprise,
including gross hedging, crosscommodity hedging, anticipatory
hedging, and the process for obtaining a
non-enumerated exemption; the setting
of spot month limits in physicaldelivery and cash-settled contracts and
a conditional spot-month limit
exemption; the setting of non-spot limits
for wheat contracts; the aggregation
exemption for certain ownership
interests of greater than 50 percent in an
owned entity; and aggregation based on
substantially identical trading strategies.
DATES: The comment periods for the
Aggregation Proposal published
November 15, 2013, at 78 FR 68946, and
for the Position Limits Proposal
published December 12, 2013, at 78 FR
75680, will close on August 4, 2014.
ADDRESSES: You may submit comments,
identified by RIN 3038–AD99 for the
Position Limits Proposal or RIN 3038–
AD82 for the Aggregation Proposal, by
any of the following methods:
• Agency Web site: http://
comments.cftc.gov;
• Mail: 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; or
• Federal eRulemaking Portal: http://
www.regulations.gov. Follow
instructions for submitting comments.
Please submit your comments using
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
http://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,
a petition for confidential treatment of
the exempt information may be
submitted under § 145.9 of the
Commission’s regulations (17 CFR
145.9).
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 http://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
PO 00000
Frm 00011
Fmt 4702
Sfmt 4702
37973
Administrative Procedure Act and other
applicable laws, and may be accessible
under the Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT:
Stephen Sherrod, Senior Economist,
Division of Market Oversight, (202) 418–
5452, ssherrod@cftc.gov; or Riva Spear
Adriance, Senior Special Counsel,
Division of Market Oversight, (202) 418–
5494, radriance@cftc.gov; Commodity
Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW.,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission has long established
and enforced speculative position limits
for futures and options contracts on
various agricultural commodities as
authorized by the Commodity Exchange
Act (‘‘CEA’’).1 The part 150 position
limits regime 2 generally includes three
components: (1) The level of the limits,
which set a threshold that restricts the
number of speculative positions that a
person may hold in the spot-month,
individual month, and all months
combined,3 (2) exemptions for positions
that constitute bona fide hedging
transactions and certain other types of
transactions,4 and (3) rules to determine
which accounts and positions a person
must aggregate for the purpose of
determining compliance with the
position limit levels.5 The Position
Limits Proposal generally sets out
proposed changes to the first and
second component of the position limits
regime and would establish speculative
position limits for 28 exempt and
agricultural commodity futures and
option contracts, and physical
commodity swaps that are
‘‘economically equivalent’’ to such
contracts (as such term is used in CEA
section 4a(a)(5)).6 The Aggregation
Proposal generally sets out proposed
changes to the third component of the
position limits regime.7
In order to provide interested parties
with an opportunity to comment on the
Aggregation Proposal during the
comment period on the Position Limits
Proposal, the Commission extended the
comment period for the Aggregation
Proposal to February 10, 2014, the same
17
U.S.C. 1 et seq.
17 CFR part 150. Part 150 of the
Commission’s regulations establishes federal
position limits on futures and option contracts in
nine enumerated agricultural commodities.
3 See 17 CFR 150.2.
4 See 17 CFR 150.3.
5 See 17 CFR 150.4.
6 See Position Limits for Derivatives, 78 FR 75680
(Dec. 12, 2013).
7 See Aggregation of Positions, 78 FR 68946 (Nov.
15, 2013).
2 See
E:\FR\FM\03JYP1.SGM
03JYP1
37974
Federal Register / Vol. 79, No. 128 / Thursday, July 3, 2014 / Proposed Rules
end date as the comment period for the
Position Limits Proposal.8
Comment letters received on the
Position Limits Proposal are available at
http://comments.cftc.gov/
PublicComments/
CommentList.aspx?id=1436. Comment
letters received on the Aggregation
Proposal are available at http://
comments.cftc.gov/PublicComments/
CommentList.aspx?id=1427.
II. Extension of Comment Period
Subsequent to publication of the
Position Limits Proposal and the
Aggregation Proposal, Commission
directed staff to schedule a June 19,
2014, public roundtable to consider
certain issues regarding position limits
for physical commodity derivatives. The
roundtable focused on hedges of a
physical commodity by a commercial
enterprise, including gross hedging,
cross-commodity hedging, anticipatory
hedging, and the process for obtaining a
non-enumerated exemption. Discussion
included the setting of spot month
limits in physical-delivery and cashsettled contracts and a conditional spotmonth limit exemption. Further, the
roundtable included discussion of: the
aggregation exemption for certain
ownership interests of greater than 50
percent in an owned entity; and
aggregation based on substantially
identical trading strategies. As well, the
Commission invited comment on
whether to provide parity for wheat
contracts in non-spot month limits. In
conjunction with the roundtable, staff
questions regarding these topics were
posted on the Commission’s Web site.
To provide commenters with a
sufficient period of time to respond to
questions raised and points made at the
roundtable, the Commission is further
extending the comment periods for the
Position Limit Proposal and the
Aggregation Proposal. Thus, both
comment periods will end on August 4,
2014.
Issued in Washington, DC, on June 27,
2014, by the Commission.
Christopher J. Kirkpatrick,
Acting Secretary of the Commission.
ehiers on DSK2VPTVN1PROD with PROPOSALS
Note: The following appendix will not
appear in the Code of Federal Regulations.
Appendix to Position Limits for
Derivatives and Aggregation of
Positions Extension of Comment
Periods—Commission Voting Summary
On this matter, Chairman Massad and
Commissioners O’Malia, Wetjen, and
Giancarlo voted in the affirmative. No
Commissioner voted in the negative.
8 See
79 FR 2394 (Jan. 14, 2014).
VerDate Mar<15>2010
13:51 Jul 02, 2014
Jkt 232001
Commissioner Bowen did not
participate in this matter.
[FR Doc. 2014–15618 Filed 7–2–14; 8:45 am]
BILLING CODE 6351–01–P
ENVIRONMENTAL PROTECTION
AGENCY
40 CFR Part 35
[EPA–R09–0AR–2014–0203; FRL–9913–10–
Region–9]
Clean Air Act Grant: Santa Barbara
County Air Pollution Control District;
Opportunity for Public Hearing
Environmental Protection
Agency (EPA).
ACTION: Proposed action; Determination
with request for comments and notice of
opportunity for public hearing.
AGENCY:
The Environmental Protection
Agency (EPA) has made a proposed
determination that the reduction in
expenditures of non-Federal funds for
the Santa Barbara County Air Pollution
Control District (SBCAPCD) in support
of its continuing air program under
section 105 of the Clean Air Act (CAA),
for the calendar year 2013 is a result of
non-selective reductions in
expenditures. This determination, when
final, will permit the SBCAPCD to
receive grant funding for FY2014 from
the EPA under section 105 of the Clean
Air Act.
DATES: Comments and/or requests for a
public hearing must be received by EPA
at the address stated below by August 4,
2014.
ADDRESSES: Submit comments,
identified by docket ID No. EPA–R09–
OAR–2014–0203, by one of the
following methods:
1. Federal Portal:
www.regulations.gov. Follow the online
instructions.
2. Email to: bartholomew.sara@
epa.gov or
3. Mail to: Sara Bartholomew (Air-8),
U.S. Environmental Protection Agency
Region IX, 75 Hawthorne Street, San
Francisco, CA 94105–3901.
FOR FURTHER INFORMATION CONTACT: Sara
Bartholomew, EPA Region IX, Grants &
Program Integration Office, Air Division,
75 Hawthorne Street, San Francisco, CA
94105; phone: (415) 947–4100, fax: (415)
947–3579 or email address at
bartholomew.sara@epa.gov.
SUPPLEMENTARY INFORMATION: Section
105 of the Clean Air Act (CAA), 42
U.S.C. 7405, provides grant support for
the continuing air programs of eligible
state, local, and tribal agencies. In
accordance with CAA section
SUMMARY:
PO 00000
Frm 00012
Fmt 4702
Sfmt 4702
105(a)(1)(A) and 40 CFR 35.145(a), the
Regional Administrator may provide air
pollution control agencies up to threefifths of the approved costs of
implementing programs for the
prevention and control of air pollution.
Section 105 contains two cost-sharing
provisions which recipients must meet
to qualify for a CAA section 105 grant.
An eligible entity must meet a minimum
40% match. In addition, to remain
eligible for section 105 funds, an eligible
entity must continue to meet the
minimum match requirement as well as
meet a maintenance of effort (MOE)
requirement under section 105(c)(1) of
the CAA and 40 CFR 35.146.
Program activities relevant to the
match consist of both recurring and
non-recurring expenses. The MOE
provision requires that a state or local
agency spend at least the same dollar
level of funds as it did in the previous
grant year, but only for the costs of
recurring activities. Specifically, section
105(c)(1) provides that ‘‘no agency shall
receive any grant under this section
during any fiscal year when its
expenditures of non-Federal funds for
recurrent expenditures for air pollution
control programs will be less than its
expenditures were for such programs
during the preceding fiscal year.’’
Pursuant to CAA section 105(c)(2),
however, EPA may still award a grant to
an agency not meeting the requirements
of section 105(c)(1), ‘‘if the
Administrator, after notice and
opportunity for public hearing,
determines that a reduction in
expenditures is attributable to a nonselective reduction in the expenditures
in the programs of all Executive branch
agencies of the applicable unit of
Government.’’ These statutory
requirements are repeated in EPA’s
implementing regulations at 40 CFR
35.140–35.148. EPA issued additional
guidance to recipients on what
constitutes a nonselective reduction on
September 30, 2011. In consideration of
legislative history, the guidance
clarified that a non-selective reduction
does not necessarily mean that each
Executive branch agency need be
reduced in equal proportion. However,
it must be clear to EPA, from the weight
of evidence, that a recipient’s CAArelated air program is not being
disproportionately impacted or singled
out for a reduction.
A section 105 recipient must submit
a final financial status report no later
than 90 days from the close of its grant
period that documents all of its federal
and non-federal expenditures for the
completed period. The recipient seeking
an adjustment to its MOE for that period
must provide the rationale and the
E:\FR\FM\03JYP1.SGM
03JYP1
Agencies
[Federal Register Volume 79, Number 128 (Thursday, July 3, 2014)]
[Proposed Rules]
[Pages 37973-37974]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15618]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 1, 15, 17, 19, 32, 37, 38, 140, and 150
RIN 3038-AD99; 3038-AD82
Position Limits for Derivatives and Aggregation of Positions
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of proposed rulemaking; extension of comment periods.
-----------------------------------------------------------------------
SUMMARY: On December 12, 2013, the Commodity Futures Trading Commission
(``Commission'') published in the Federal Register a notice of proposed
rulemaking (the ``Position Limits Proposal'') to establish speculative
position limits for 28 exempt and agricultural commodity futures and
options contracts and the physical commodity swaps that are
economically equivalent to such contracts. On November 15, 2013, the
Commission published in the Federal Register a notice of proposed
rulemaking (the ``Aggregation Proposal'') to amend existing regulations
setting out the Commission's policy for aggregation under its position
limits regime. In addition, the Commission directed staff to hold a
public roundtable on June 19, 2014, to consider certain issues
regarding position limits for physical commodity derivatives. In order
to provide interested parties with an opportunity to comment on the
issues to be discussed at the roundtable, the Commission published
notice in the Federal Register on May 29, 2014, that the comment
periods for the Position Limits Proposal and the Aggregation Proposal
were reopened, starting June 12, 2014 (one week before the roundtable)
and ending July 3, 2014 (two weeks following the roundtable). To
provide commenters with a sufficient period of time to respond to
questions raised and points made at the roundtable, the Commission is
now further extending the comment period. Comments should be limited to
the issues of hedges of a physical commodity by a commercial
enterprise, including gross hedging, cross-commodity hedging,
anticipatory hedging, and the process for obtaining a non-enumerated
exemption; the setting of spot month limits in physical-delivery and
cash-settled contracts and a conditional spot-month limit exemption;
the setting of non-spot limits for wheat contracts; the aggregation
exemption for certain ownership interests of greater than 50 percent in
an owned entity; and aggregation based on substantially identical
trading strategies.
DATES: The comment periods for the Aggregation Proposal published
November 15, 2013, at 78 FR 68946, and for the Position Limits Proposal
published December 12, 2013, at 78 FR 75680, will close on August 4,
2014.
ADDRESSES: You may submit comments, identified by RIN 3038-AD99 for the
Position Limits Proposal or RIN 3038-AD82 for the Aggregation Proposal,
by any of the following methods:
Agency Web site: http://comments.cftc.gov;
Mail: 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; or
Federal eRulemaking Portal: http://www.regulations.gov.
Follow instructions for submitting comments.
Please submit your comments using 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 http://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, a petition for confidential treatment of the exempt information
may be submitted under Sec. 145.9 of the Commission's regulations (17
CFR 145.9).
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 http://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: Stephen Sherrod, Senior Economist,
Division of Market Oversight, (202) 418-5452, ssherrod@cftc.gov; or
Riva Spear Adriance, Senior Special Counsel, Division of Market
Oversight, (202) 418-5494, radriance@cftc.gov; Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street NW.,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Commission has long established and enforced speculative
position limits for futures and options contracts on various
agricultural commodities as authorized by the Commodity Exchange Act
(``CEA'').\1\ The part 150 position limits regime \2\ generally
includes three components: (1) The level of the limits, which set a
threshold that restricts the number of speculative positions that a
person may hold in the spot-month, individual month, and all months
combined,\3\ (2) exemptions for positions that constitute bona fide
hedging transactions and certain other types of transactions,\4\ and
(3) rules to determine which accounts and positions a person must
aggregate for the purpose of determining compliance with the position
limit levels.\5\ The Position Limits Proposal generally sets out
proposed changes to the first and second component of the position
limits regime and would establish speculative position limits for 28
exempt and agricultural commodity futures and option contracts, and
physical commodity swaps that are ``economically equivalent'' to such
contracts (as such term is used in CEA section 4a(a)(5)).\6\ The
Aggregation Proposal generally sets out proposed changes to the third
component of the position limits regime.\7\
---------------------------------------------------------------------------
\1\ 7 U.S.C. 1 et seq.
\2\ See 17 CFR part 150. Part 150 of the Commission's
regulations establishes federal position limits on futures and
option contracts in nine enumerated agricultural commodities.
\3\ See 17 CFR 150.2.
\4\ See 17 CFR 150.3.
\5\ See 17 CFR 150.4.
\6\ See Position Limits for Derivatives, 78 FR 75680 (Dec. 12,
2013).
\7\ See Aggregation of Positions, 78 FR 68946 (Nov. 15, 2013).
---------------------------------------------------------------------------
In order to provide interested parties with an opportunity to
comment on the Aggregation Proposal during the comment period on the
Position Limits Proposal, the Commission extended the comment period
for the Aggregation Proposal to February 10, 2014, the same
[[Page 37974]]
end date as the comment period for the Position Limits Proposal.\8\
---------------------------------------------------------------------------
\8\ See 79 FR 2394 (Jan. 14, 2014).
---------------------------------------------------------------------------
Comment letters received on the Position Limits Proposal are
available at http://comments.cftc.gov/PublicComments/CommentList.aspx?id=1436. Comment letters received on the Aggregation
Proposal are available at http://comments.cftc.gov/PublicComments/CommentList.aspx?id=1427.
II. Extension of Comment Period
Subsequent to publication of the Position Limits Proposal and the
Aggregation Proposal, Commission directed staff to schedule a June 19,
2014, public roundtable to consider certain issues regarding position
limits for physical commodity derivatives. The roundtable focused on
hedges of a physical commodity by a commercial enterprise, including
gross hedging, cross-commodity hedging, anticipatory hedging, and the
process for obtaining a non-enumerated exemption. Discussion included
the setting of spot month limits in physical-delivery and cash-settled
contracts and a conditional spot-month limit exemption. Further, the
roundtable included discussion of: the aggregation exemption for
certain ownership interests of greater than 50 percent in an owned
entity; and aggregation based on substantially identical trading
strategies. As well, the Commission invited comment on whether to
provide parity for wheat contracts in non-spot month limits. In
conjunction with the roundtable, staff questions regarding these topics
were posted on the Commission's Web site.
To provide commenters with a sufficient period of time to respond
to questions raised and points made at the roundtable, the Commission
is further extending the comment periods for the Position Limit
Proposal and the Aggregation Proposal. Thus, both comment periods will
end on August 4, 2014.
Issued in Washington, DC, on June 27, 2014, by the Commission.
Christopher J. Kirkpatrick,
Acting Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Position Limits for Derivatives and Aggregation of
Positions Extension of Comment Periods--Commission Voting Summary
On this matter, Chairman Massad and Commissioners O'Malia, Wetjen,
and Giancarlo voted in the affirmative. No Commissioner voted in the
negative. Commissioner Bowen did not participate in this matter.
[FR Doc. 2014-15618 Filed 7-2-14; 8:45 am]
BILLING CODE 6351-01-P