Removal of Certain References to Credit Ratings Under the Securities Exchange Act of 1934, 38451 [2014-15841]
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38451
Rules and Regulations
Federal Register
Vol. 79, No. 130
Tuesday, July 8, 2014
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
DEPARTMENT OF THE TREASURY
The Code of Federal Regulations is sold by
the Superintendent of Documents. Prices of
new books are listed in the first FEDERAL
REGISTER issue of each week.
RIN 1535–AA02
SECURITIES AND EXCHANGE
COMMISSION
RIN 3235–AL14
Removal of Certain References to
Credit Ratings Under the Securities
Exchange Act of 1934
Securities and Exchange
Commission.
AGENCY:
Final rule; correction.
The Securities and Exchange
Commission published a document in
the Federal Register of January 8, 2014
that contained an incorrect instruction.
This correction is being published to
correct instruction 5.b in that document.
SUMMARY:
Effective July 7, 2014.
FOR FURTHER INFORMATION CONTACT:
Carrie A. O’Brien, Special Counsel, at
(202) 551–5640; Office of Financial
Responsibility (Net Capital, Customer
Protection, and Books and Records
Requirements).
SUPPLEMENTARY INFORMATION:
§ 240.15c3–1a
[Corrected]
In the Federal Register of January 8,
2014, in FR Doc. 2013–31426, on page
1549, in the 14th line of the third
column, Instruction 5.b. is corrected to
read as follows:
b. Removing paragraphs (c)(4)(vi)(A)
through (c)(4)(vi)(D);
ehiers on DSK2VPTVN1PROD with RULES
■
Dated: July 2, 2014.
Lynn M. Powalski,
Deputy Secretary.
[FR Doc. 2014–15841 Filed 7–7–14; 8:45 am]
BILLING CODE 8011–01–P
VerDate Mar<15>2010
15:16 Jul 07, 2014
Jkt 232001
Government Securities Act
Regulations; Replacement of
References to Credit Ratings and
Technical Amendments
Office of the Assistant
Secretary for Financial Markets,
Treasury.
ACTION: Final rule.
[Release No. 34–71194A; File No. S7–15–
11]
DATES:
[Docket No. BPD GSRS 11–01]
AGENCY:
17 CFR Parts 240 and 249
ACTION:
17 CFR Parts 400, 401, 402, 403, 405,
420, 449, and 450
The Department of the
Treasury (Treasury) is issuing in final
form an amendment to the regulations
issued under the Government Securities
Act of 1986, as amended (GSA), to
replace references to credit ratings in
the regulations with alternative
requirements. Section 939A of the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank
Act) requires Federal agencies to remove
from their applicable regulations any
reference to or requirement of reliance
on credit ratings and to substitute a
standard of creditworthiness as the
agency determines appropriate for such
regulations. This final rule amendment
provides a substitute standard of
creditworthiness for use in the liquid
capital rule required by GSA
regulations. It also contains several nonsubstantive, technical amendments to
Treasury’s GSA regulations to update
certain information or to delete certain
requirements that are no longer
applicable.
SUMMARY:
The amendments will become
effective August 7, 2014.
ADDRESSES: This final rule is available
on the Bureau of the Fiscal Service’s
Web site at https://
www.treasurydirect.gov. It is also
available for public inspection and
copying at the Treasury Department
Library, 1500 Pennsylvania Avenue
NW., Annex, Room 1020, Washington,
DC, 20220. To visit the library, call (202)
622–0990 for an appointment.
FOR FURTHER INFORMATION CONTACT: Lori
Santamorena, Executive Director, Chuck
Andreatta, Associate Director, or Kevin
Hawkins, Government Securities
Advisor, Department of the Treasury,
Bureau of the Fiscal Service,
DATES:
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
Government Securities Regulations
Staff, (202) 504–3632 or email us at
govsecreg@fiscal.treasury.gov.
SUPPLEMENTARY INFORMATION: We are
amending Treasury’s liquid capital rule
for registered government securities
brokers and dealers under the GSA
regulations at 17 CFR part 402 to
remove references to credit ratings and
substitute a standard of
creditworthiness. We are issuing this
amendment in order to comply with the
requirements of the Dodd-Frank Act.1
We are not narrowing or broadening the
scope of financial instruments that
would qualify for beneficial treatment
under the existing liquid capital rule.
Section 939A(a) of the Dodd-Frank Act
requires that Federal agencies, to the
extent applicable, ‘‘review (1) any
regulation issued by such agency that
requires the use of an assessment of the
credit-worthiness of a security or money
market instrument; and (2) any
references to or requirements in such
regulations regarding credit ratings.’’
Section 939A(b) requires the agency to
modify any regulations identified to
‘‘remove any reference to or requirement
of reliance on credit ratings and to
substitute in such regulations such
standard of credit-worthiness’’ as the
agency determines to be appropriate for
such regulations.2
I. Current Liquid Capital Rule
Treasury’s liquid capital rule (17 CFR
402.2) prescribes minimum regulatory
capital requirements for registered
government securities brokers and
dealers. In general, the liquid capital
rule is a minimum ratio requirement of
liquid capital to risk, as measured using
various ‘‘haircuts,’’ 3 which are designed
to account for the market risk inherent
in a government securities broker’s or
dealer’s securities positions and create a
buffer of liquidity to protect against
other risks associated with its securities
business. Specifically, a government
securities broker or dealer may not
permit its liquid capital to be below an
amount equal to 120 percent of ‘‘total
haircuts,’’ which is the sum of ‘‘credit
risk haircuts’’ and ‘‘market risk
1 Public
Law 111–203, 124 Stat. 1376 (2010).
Section 939A of the Dodd-Frank Act.
3 A ‘‘haircut’’ in the context of Treasury’s liquid
capital rule refers to a deduction in the market
value of securities or other instruments held by a
government securities broker or dealer as part of net
worth for calculating its liquid capital.
2 See
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08JYR1
]]>Agencies
[Federal Register Volume 79, Number 130 (Tuesday, July 8, 2014)]
[Rules and Regulations]
[Page 38451]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-15841]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
Prices of new books are listed in the first FEDERAL REGISTER issue of each
week.
========================================================================
Federal Register / Vol. 79, No. 130 / Tuesday, July 8, 2014 / Rules
and Regulations
[[Page 38451]]
SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 240 and 249
[Release No. 34-71194A; File No. S7-15-11]
RIN 3235-AL14
Removal of Certain References to Credit Ratings Under the
Securities Exchange Act of 1934
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; correction.
-----------------------------------------------------------------------
SUMMARY: The Securities and Exchange Commission published a document in
the Federal Register of January 8, 2014 that contained an incorrect
instruction. This correction is being published to correct instruction
5.b in that document.
DATES: Effective July 7, 2014.
FOR FURTHER INFORMATION CONTACT: Carrie A. O'Brien, Special Counsel, at
(202) 551-5640; Office of Financial Responsibility (Net Capital,
Customer Protection, and Books and Records Requirements).
SUPPLEMENTARY INFORMATION:
Sec. 240.15c3-1a [Corrected]
In the Federal Register of January 8, 2014, in FR Doc. 2013-31426,
on page 1549, in the 14th line of the third column, Instruction 5.b. is
corrected to read as follows:
0
b. Removing paragraphs (c)(4)(vi)(A) through (c)(4)(vi)(D);
Dated: July 2, 2014.
Lynn M. Powalski,
Deputy Secretary.
[FR Doc. 2014-15841 Filed 7-7-14; 8:45 am]
BILLING CODE 8011-01-P
