Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations; Correction, 44125-44127 [2014-17934]
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Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations
where the protection provider has
sufficient assets against which a
judgment may be attached and enforced;
(7) Requires the protection provider to
make payment to the beneficiary on the
occurrence of a default (as defined in
the guarantee) of the obligated party on
the reference exposure in a timely
manner without the beneficiary first
having to take legal actions to pursue
the obligor for payment;
(8) Does not increase the beneficiary’s
cost of credit protection on the
guarantee in response to deterioration in
the credit quality of the reference
exposure;
(9) Is not provided by an affiliate of
the FDIC-supervised institution, unless
the affiliate is an insured depository
institution, foreign bank, securities
broker or dealer, or insurance company
that:
(i) Does not control the FDICsupervised institution; and
(ii) Is subject to consolidated
supervision and regulation comparable
to that imposed on depository
institutions, U.S. securities brokerdealers, or U.S. insurance companies (as
the case may be); and
(10) For purposes of §§ 324.141
through 324.145 and subpart D of this
part, is provided by an eligible
guarantor.
*
*
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*
Dated: July 15, 2014.
Thomas J. Curry,
Comptroller of the Currency.
By order of the Board of Governors of the
Federal Reserve System, July 23, 2014.
Robert deV. Frierson,
Secretary of the Board.
Dated at Washington, DC, this 15th day of
July, 2014.
By order of the Board of Directors.
Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
[FR Doc. 2014–17858 Filed 7–29–14; 8:45 am]
BILLING CODE P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Parts 1, 30, and 140
pmangrum on DSK3VPTVN1PROD with RULES
RIN 3038–AD88
Enhancing Protections Afforded
Customers and Customer Funds Held
by Futures Commission Merchants
and Derivatives Clearing
Organizations; Correction
Commodity Futures Trading
Commission.
ACTION: Correcting Amendments.
AGENCY:
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14:55 Jul 29, 2014
Jkt 232001
The Commodity Futures
Trading Commission (‘‘CFTC’’) is
correcting final rules published in the
Federal Register of November 14, 2013
(‘‘final rules’’). Those rules, which
adopted new regulations and amended
existing regulations requiring enhanced
customer protections, risk management
programs, internal monitoring and
controls, capital and liquidity standards,
customer disclosures, and auditing and
examination programs for futures
commission merchants, took effect on
January 13, 2014. This correction
amends erroneous cross-references
found in three sections of the final rules.
Additionally, this correction amends
one section of the final rules to insert
language that was in the proposed
rulemaking, and which was stated as
being adopted in the preamble to the
final rules, but was erroneously omitted
from the final rule text.
DATES: Effective on July 30, 2014.
FOR FURTHER INFORMATION CONTACT:
Thomas Smith, Deputy Director, 202–
418–5495, tsmith@cftc.gov, or Mark
Bretscher, Attorney-Advisor, 312–596–
0529, mbretscher@cftc.gov, Division of
Swap Dealer and Intermediary
Oversight, Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW., Washington, DC
20581.
SUPPLEMENTARY INFORMATION: In the
Federal Register of November 14, 2013
(78 FR 68506), the CFTC published final
rules adopting new regulations and
amending existing regulations requiring
enhanced customer protections, risk
management programs, internal
monitoring and controls, capital and
liquidity standards, customer
disclosures, and auditing and
examination programs for futures
commission merchants. Those rules in
17 CFR 1.23(d)(2) and 1.23(d)(3) include
erroneous cross-references to 17 CFR
1.23(c)(1) and 1.23(c)(2), which do not
exist. Instead, the cross-references
should be to 17 CFR 1.23(d)(1) and
1.23(d)(2). Accordingly, the Commission
is making a correcting amendment
which removes the erroneous crossreferences to 17 CFR 1.23(c)(1) and
1.23(c)(2), contained in 17 CFR
1.23(d)(2) and 1.23(d)(3), and replaces
them with corrected cross-references to
17 CFR 1.23(d)(1) and 1.23(d)(2).
Further, the final rules in 17 CFR
30.7(g)(4) include an erroneous crossreference to 17 CFR 30.7(h)(2), which
should reference 17 CFR 30.7(l), and an
erroneous cross-reference to 17 CFR
30.7(g)(2), which should reference 17
CFR 30.7(g)(3). Also, 17 CFR 30.7(g)(5)
contains an erroneous cross-reference to
17 CFR 30.7(c)(1) and 30.7(c)(2), which
SUMMARY:
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44125
should reference 30.7(g)(3) and
30.7(g)(4). Thus, the Commission is
making a correcting amendment to 17
CFR 30.7(g)(4) and 30.7(g)(5) as
discussed above.
Additionally, the final rules in 17 CFR
30.7(d)(1) erroneously omitted language
that was contained in the proposed
rulemaking published on November 14,
2012; 1 and was stated as having been
adopted in the preamble to the final
rules.2 The erroneously omitted
language states that a futures
commission merchant is not required to
obtain an acknowledgment letter from a
derivatives clearing organization
(‘‘DCO’’) if the DCO maintains rules that
have been submitted to the Commission
and that provide for the segregation of
customer funds in accordance with all
relevant provisions of the Commodity
Exchange Act 3 and Commission
regulations. Thus, the Commission is
making a correcting amendment to 17
CFR 30.7(d)(1) to rectify that error.
Finally, the final rules in 17 CFR
140.91(a)(12) include an erroneous
cross-reference to 17 CFR 140.91(a)(8),
which should reference 17 CFR
140.91(a)(12). Thus, the Commission is
making a correcting amendment to 17
CFR 140.91(a)(12) that removes the
erroneous cross-reference to 17 CFR
140.91(a)(8) and replaces it with a crossreference to 17 CFR 140.91(a)(12).
List of Subjects
17 CFR Part 1
Brokers, Commodity futures,
Consumer protection, Reporting and
recordkeeping requirements.
17 CFR Part 30
Commodity futures, Consumer
protection, Currency, Reporting and
recordkeeping requirements.
17 CFR Part 140
Authority delegations (Government
agencies), Organization and functions
(Government agencies).
In consideration of the foregoing, 17
CFR parts 1, 30, and 140 are corrected
by making the following correcting
amendments:
PART 1—GENERAL REGULATIONS
UNDER THE COMMODITY EXCHANGE
ACT
1. The authority citation for part 1
continues to read as follows:
■
Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c,
6d, 6e, 6f, 6g, 6h, 6i, 6k, 6l, 6m, 6n, 6o, 6p,
6r, 6s, 7, 7a–1, 7a–2, 7b, 7b–3, 8, 9, 10a, 12,
1 77
FR 67866 (November 14, 2012).
78 FR 68506 at 68578, fn 592.
3 7 U.S.C. 1 et seq.
2 See
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30JYR1
44126
Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations
12a, 12c, 13a, 13a–1, 16, 16a, 19, 21, 23, and
24, as amended by Title VII of the DoddFrank Wall Street Reform and Consumer
Protection Act, Pub. L. 111–203, 124 Stat.
1376 (2010).
2. In § 1.23, revise paragraph (d)(2)
introductory text, paragraphs (d)(2)(i)
and (d)(2)(v), and paragraph (d)(3)
introductory text to read as follows:
■
§ 1.23 Interest of futures commission
merchant in segregated futures customer
funds; additions and withdrawals.
pmangrum on DSK3VPTVN1PROD with RULES
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(d) * * *
(2) The futures commission merchant
files written notice of the withdrawal or
series of withdrawals, with the
Commission and with its designated
self-regulatory organization immediately
after the chief executive officer, chief
finance officer or other senior official as
described in paragraph (d)(1) of this
section pre-approves the withdrawal or
series of withdrawals. The written
notice must:
(i) Be signed by the chief executive
officer, chief finance officer or other
senior official as described in paragraph
(d)(1) of this section that pre-approved
the withdrawal, and give notice that the
futures commission merchant has
withdrawn or intends to withdraw more
than 25 percent of its residual interest
in segregated accounts holding futures
customer funds;
*
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*
*
(v) Contain a representation by the
chief executive officer, chief finance
officer or other senior official as
described in paragraph (d)(1) of this
section that pre-approved the
withdrawal, or series of withdrawals,
that, after due diligence, to such
person’s knowledge and reasonable
belief, the futures commission merchant
remains in compliance with the
segregation requirements after the
withdrawal. The chief executive officer,
chief finance officer or other senior
official as described in paragraph (d)(1)
of this section must consider the daily
segregation calculation as of the close of
business on the previous business day
and any other factors that may cause a
material change in the futures
commission merchant’s residual interest
since the close of business the previous
business day, including known
unsecured futures customer debits or
deficits, current day market activity and
any other withdrawals made from the
futures accounts; and
*
*
*
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*
(3) After making a withdrawal
requiring the approval and notice
required in paragraphs (d)(1) and (2) of
this section, and before the completion
of its next daily segregated funds
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14:55 Jul 29, 2014
Jkt 232001
calculation, no futures commission
merchant may make any further
withdrawals from accounts holding
futures customer funds, except to or for
the benefit of futures customers,
without, for each withdrawal, obtaining
the approval required under paragraph
(d)(1) of this section and filing a written
notice in the manner specified under
paragraph (d)(2) of this section with the
Commission and its designated selfregulatory organization signed by the
chief executive officer, chief finance
officer, or other senior official. The
written notice must:
*
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*
PART 30—FOREIGN FUTURES AND
FOREIGN OPTIONS TRANSACTIONS
3. The authority citation for part 30
continues to read as follows:
■
Authority: 7 U.S.C. 1a, 2, 6, 6c, and 12a,
unless otherwise noted.
4. In § 30.7, revise paragraph (d)(1),
paragraph (g)(4) introductory text,
paragraph (g)(4)(v), and paragraph (g)(5)
introductory text to read as follows:
■
§ 30.7 Treatment of foreign futures or
foreign options secured amount.
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*
*
*
*
(d) Written acknowledgment from
depositories. (1) A futures commission
merchant must obtain a written
acknowledgment from each depository
prior to or contemporaneously with the
opening of an account by the futures
commission merchant with such
depository; Provided, however, that a
written acknowledgment need not be
obtained from a derivatives clearing
organization that has adopted and
submitted to the Commission rules that
provide for the separate holding of
foreign futures or foreign options
secured amount, in accordance with all
relevant provisions of the Act, this part
and the regulations and orders
promulgated thereunder, of all funds
held on behalf of 30.7 customers and all
instruments purchased with funds set
aside as the foreign futures or foreign
options secured amount as provided for
under paragraph (h) of this section.
*
*
*
*
*
(g) * * *
(4) A futures commission merchant
must file written notice of the
withdrawal or series of withdrawals that
exceed 25 percent of the futures
commission merchant’s residual interest
in 30.7 customer funds as computed
under paragraph (l) of this section with
the Commission and with its designated
self-regulatory organization immediately
after the chief executive officer, chief
finance officer or other senior official as
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Frm 00034
Fmt 4700
Sfmt 4700
described in paragraph (g)(3) of this
section pre-approves the withdrawal or
series of withdrawals. The written
notice must:
*
*
*
*
*
(v) Contain a representation by the
chief executive officer, chief finance
officer or other senior official as
described in paragraph (g)(3) of this
section that pre-approved the
withdrawal, or series of withdrawals,
that to such person’s knowledge and
reasonable belief, the futures
commission merchant remains in
compliance with the secured amount
requirements after the withdrawal. The
chief executive officer, chief finance
officer or other appropriate senior
official as described in paragraph (g)(3)
of this section must consider the daily
30.7 calculation as of the close of
business on the previous business day
and any other factors that may cause a
material change in the futures
commission’s residual interest since the
close of business the previous business
day, including known unsecured
customer debits or deficits, current day
market activity and any other
withdrawals made from the 30.7
customer accounts; and
*
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*
*
*
(5) After making a withdrawal
requiring the approval and notice
required in paragraphs (g)(3) and (4) of
this section, and before the next daily
secured amount calculation, no futures
commission merchant may make any
further withdrawals from accounts
holding 30.7 customer funds, except to
or for the benefit of 30.7 customers,
without, for each withdrawal, obtaining
the approval required under paragraph
(g)(3) of this section and filing a written
notice with the Commission under
paragraph (g)(4)(vi) of this section and
its designated self-regulatory
organization signed by the chief
executive officer, chief finance officer,
or other senior official. The written
notice must:
*
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*
PART 140—ORGANIZATION,
FUNCTIONS, AND PROCEDURES OF
THE COMMISSION
5. The authority citation for part 140
continues to read as follows:
■
Authority: 7 U.S.C. 2(a)(12), 12a, 13(c),
13(d), 13(e), and 16(b).
6. In § 140.91, revise paragraph (a)(12)
to read as follows:
■
E:\FR\FM\30JYR1.SGM
30JYR1
Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations
§ 140.91 Delegation of authority to the
Director of the Division of Clearing and Risk
and to the Director of the Division of Swap
Dealer and Intermediary Oversight.
(a) * * *
(12) All functions reserved to the
Commission in § 41.41 of this chapter.
Any action taken pursuant to the
delegation of authority under this
paragraph (a)(12) shall be made with the
concurrence of the General Counsel or,
in his or her absence, a Deputy General
Counsel.
*
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*
Issued in Washington, DC, on July 25,
2014, by the Commission.
Christopher J. Kirkpatrick,
Acting Secretary of the Commission.
[FR Doc. 2014–17934 Filed 7–29–14; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2014–0646]
RIN 1625–AA00
Safety Zones; Annual Events
Requiring Safety Zones in the Captain
of the Port Lake Michigan Zone—Sister
Bay Marinafest Ski Show
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
the safety zone on Sister Bay in Sister
Bay, WI for the Sister Bay Marinafest
Ski Show. This zone will be enforced
from 1 p.m. until 3:15 p.m. on August
30, 2014. This action is necessary and
intended to ensure the safety of life on
navigable waters during the ski show.
During the aforementioned period, the
Coast Guard will enforce restrictions
upon, and control movement of, vessels
in the safety zone. No person or vessel
may enter the safety zone while it is
being enforced without permission of
the Captain of the Port Lake Michigan.
DATES: The regulations in 33 CFR
165.929 will be enforced for safety zone
(f)(14), Table 165.929, from 1 p.m. until
3:15 p.m. on August 30, 2014.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this document,
call or email MST1 Joseph McCollum,
Prevention Department, Coast Guard
Sector Lake Michigan, Milwaukee, WI at
(414) 747–7148, email
joseph.p.mccollum@uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the Sister Bay
pmangrum on DSK3VPTVN1PROD with RULES
SUMMARY:
VerDate Mar<15>2010
14:55 Jul 29, 2014
Jkt 232001
Marinafest Ski Show safety zone listed
as item (f)(14) in Table 165.929 of 33
CFR 165.929. Section 165.929 lists
many annual events requiring safety
zones in the Captain of the Port Lake
Michigan zone. The Sister Bay
Marinafest Ski Show zone will
encompass all waters of Sister Bay
within an 800-foot radius of position
45°11′35.1″ N, 087°7′23.5″ W (NAD 83).
This zone will be enforced from 1 p.m.
until 3:15 p.m. on August 30, 2014.
All vessels must obtain permission
from the Captain of the Port Lake
Michigan, or the on-scene representative
to enter, move within, or exit the safety
zone. Requests must be made in
advance and approved by the Captain of
the Port before transits will be
authorized. Approvals will be granted
on a case by case basis. Vessels and
persons granted permission to enter the
safety zone must obey all lawful orders
or directions of the Captain of the Port
Lake Michigan or a designated
representative.
This document is issued under
authority of 33 CFR 165.929, Safety
Zones; Annual events requiring safety
zones in the Captain of the Port Lake
Michigan zone and 5 U.S.C. 552(a). In
addition to this publication in the
Federal Register, the Coast Guard will
provide the maritime community with
advance notification of this event via
Broadcast Notice to Mariners or Local
Notice to Mariners that the regulation is
in effect. The Captain of the Port Lake
Michigan or her on-scene representative
may be contacted via Channel 16, VHF–
FM.
Dated: July 17, 2014.
A.B. Cocanour,
Captain, U.S. Coast Guard, Captain of the
Port, Lake Michigan.
[FR Doc. 2014–17968 Filed 7–29–14; 8:45 am]
BILLING CODE 9110–04–P
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2014–0646]
Safety Zones; Annual Events
Requiring Safety Zones in the Captain
of the Port Lake Michigan Zone—Sister
Bay Marinafest Fireworks, Sister Bay,
WI
Coast Guard, DHS.
Notice of enforcement of
regulation.
AGENCY:
ACTION:
The Coast Guard will enforce
the safety zone on Green Bay in Sister
SUMMARY:
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Fmt 4700
Sfmt 4700
44127
Bay, WI for the Sister Bay Marinafest
Fireworks. This zone will be enforced
from 8:30 p.m. until 10:30 p.m. on
August 30, 2014. This action is
necessary and intended to ensure the
safety of life on navigable waters during
a fireworks display. During the
aforementioned periods, the Coast
Guard will enforce restrictions upon,
and control movement of, vessels in the
safety zone. No person or vessel may
enter the safety zone while it is being
enforced without permission of the
Captain of the Port, Lake Michigan.
DATES: The regulations in 33 CFR
165.929 will be enforced for safety zone
(f)(15), Table 165.929, from 8:30 p.m.
until 10:30 p.m. on August 30, 2014.
FOR FURTHER INFORMATION CONTACT: If
you have questions on this document,
call or email MST1 Joseph McCollum,
Prevention Department, Coast Guard
Sector Lake Michigan, Milwaukee, WI at
(414) 747–7148, email
joseph.p.mccollum@uscg.mil.
SUPPLEMENTARY INFORMATION: The Coast
Guard will enforce the Sister Bay
Marinafest Fireworks safety zone listed
as item (f)(15) in Table 165.929 of 33
CFR 165.929. Section 165.929 lists
many annual events requiring safety
zones in the Captain of the Port Lake
Michigan zone. The Sister Bay
Marinafest Fireworks display zone will
encompass all waters of Sister Bay
within an 800-foot radius of the launch
vessel in approximate position
45°11′35.1″ N, 087°7′23.5″ W (NAD 83).
This zone will be enforced from 8:30
p.m. until 10:30 p.m. on August 30,
2014.
All vessels must obtain permission
from the Captain of the Port Lake
Michigan or the on-scene representative
to enter, move within, or exit the safety
zone. Requests must be made in
advance and approved by the Captain of
the Port before transits will be
authorized. Approvals will be granted
on a case by case basis. Vessels and
persons granted permission to enter the
safety zone must obey all lawful orders
or directions of the Captain of the Port
Lake Michigan or a designated
representative.
This document is issued under
authority of 33 CFR 165.929, Safety
Zones; Annual events requiring safety
zones in the Captain of the Port Lake
Michigan zone and 5 U.S.C. 552(a). In
addition to this publication in the
Federal Register, the Coast Guard will
provide the maritime community with
advance notification via Broadcast
Notice to Mariners or Local Notice to
Mariners that the regulation is in effect.
The Captain of the Port Lake Michigan
E:\FR\FM\30JYR1.SGM
30JYR1
]]>Agencies
[Federal Register Volume 79, Number 146 (Wednesday, July 30, 2014)]
[Rules and Regulations]
[Pages 44125-44127]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-17934]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 1, 30, and 140
RIN 3038-AD88
Enhancing Protections Afforded Customers and Customer Funds Held
by Futures Commission Merchants and Derivatives Clearing Organizations;
Correction
AGENCY: Commodity Futures Trading Commission.
ACTION: Correcting Amendments.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (``CFTC'') is
correcting final rules published in the Federal Register of November
14, 2013 (``final rules''). Those rules, which adopted new regulations
and amended existing regulations requiring enhanced customer
protections, risk management programs, internal monitoring and
controls, capital and liquidity standards, customer disclosures, and
auditing and examination programs for futures commission merchants,
took effect on January 13, 2014. This correction amends erroneous
cross-references found in three sections of the final rules.
Additionally, this correction amends one section of the final rules to
insert language that was in the proposed rulemaking, and which was
stated as being adopted in the preamble to the final rules, but was
erroneously omitted from the final rule text.
DATES: Effective on July 30, 2014.
FOR FURTHER INFORMATION CONTACT: Thomas Smith, Deputy Director, 202-
418-5495, tsmith@cftc.gov, or Mark Bretscher, Attorney-Advisor, 312-
596-0529, mbretscher@cftc.gov, Division of Swap Dealer and Intermediary
Oversight, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION: In the Federal Register of November 14, 2013
(78 FR 68506), the CFTC published final rules adopting new regulations
and amending existing regulations requiring enhanced customer
protections, risk management programs, internal monitoring and
controls, capital and liquidity standards, customer disclosures, and
auditing and examination programs for futures commission merchants.
Those rules in 17 CFR 1.23(d)(2) and 1.23(d)(3) include erroneous
cross-references to 17 CFR 1.23(c)(1) and 1.23(c)(2), which do not
exist. Instead, the cross-references should be to 17 CFR 1.23(d)(1) and
1.23(d)(2). Accordingly, the Commission is making a correcting
amendment which removes the erroneous cross-references to 17 CFR
1.23(c)(1) and 1.23(c)(2), contained in 17 CFR 1.23(d)(2) and
1.23(d)(3), and replaces them with corrected cross-references to 17 CFR
1.23(d)(1) and 1.23(d)(2).
Further, the final rules in 17 CFR 30.7(g)(4) include an erroneous
cross-reference to 17 CFR 30.7(h)(2), which should reference 17 CFR
30.7(l), and an erroneous cross-reference to 17 CFR 30.7(g)(2), which
should reference 17 CFR 30.7(g)(3). Also, 17 CFR 30.7(g)(5) contains an
erroneous cross-reference to 17 CFR 30.7(c)(1) and 30.7(c)(2), which
should reference 30.7(g)(3) and 30.7(g)(4). Thus, the Commission is
making a correcting amendment to 17 CFR 30.7(g)(4) and 30.7(g)(5) as
discussed above.
Additionally, the final rules in 17 CFR 30.7(d)(1) erroneously
omitted language that was contained in the proposed rulemaking
published on November 14, 2012; \1\ and was stated as having been
adopted in the preamble to the final rules.\2\ The erroneously omitted
language states that a futures commission merchant is not required to
obtain an acknowledgment letter from a derivatives clearing
organization (``DCO'') if the DCO maintains rules that have been
submitted to the Commission and that provide for the segregation of
customer funds in accordance with all relevant provisions of the
Commodity Exchange Act \3\ and Commission regulations. Thus, the
Commission is making a correcting amendment to 17 CFR 30.7(d)(1) to
rectify that error.
---------------------------------------------------------------------------
\1\ 77 FR 67866 (November 14, 2012).
\2\ See 78 FR 68506 at 68578, fn 592.
\3\ 7 U.S.C. 1 et seq.
---------------------------------------------------------------------------
Finally, the final rules in 17 CFR 140.91(a)(12) include an
erroneous cross-reference to 17 CFR 140.91(a)(8), which should
reference 17 CFR 140.91(a)(12). Thus, the Commission is making a
correcting amendment to 17 CFR 140.91(a)(12) that removes the erroneous
cross-reference to 17 CFR 140.91(a)(8) and replaces it with a cross-
reference to 17 CFR 140.91(a)(12).
List of Subjects
17 CFR Part 1
Brokers, Commodity futures, Consumer protection, Reporting and
recordkeeping requirements.
17 CFR Part 30
Commodity futures, Consumer protection, Currency, Reporting and
recordkeeping requirements.
17 CFR Part 140
Authority delegations (Government agencies), Organization and
functions (Government agencies).
In consideration of the foregoing, 17 CFR parts 1, 30, and 140 are
corrected by making the following correcting amendments:
PART 1--GENERAL REGULATIONS UNDER THE COMMODITY EXCHANGE ACT
0
1. The authority citation for part 1 continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g,
6h, 6i, 6k, 6l, 6m, 6n, 6o, 6p, 6r, 6s, 7, 7a-1, 7a-2, 7b, 7b-3, 8,
9, 10a, 12,
[[Page 44126]]
12a, 12c, 13a, 13a-1, 16, 16a, 19, 21, 23, and 24, as amended by
Title VII of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, Pub. L. 111-203, 124 Stat. 1376 (2010).
0
2. In Sec. 1.23, revise paragraph (d)(2) introductory text, paragraphs
(d)(2)(i) and (d)(2)(v), and paragraph (d)(3) introductory text to read
as follows:
Sec. 1.23 Interest of futures commission merchant in segregated
futures customer funds; additions and withdrawals.
* * * * *
(d) * * *
(2) The futures commission merchant files written notice of the
withdrawal or series of withdrawals, with the Commission and with its
designated self-regulatory organization immediately after the chief
executive officer, chief finance officer or other senior official as
described in paragraph (d)(1) of this section pre-approves the
withdrawal or series of withdrawals. The written notice must:
(i) Be signed by the chief executive officer, chief finance officer
or other senior official as described in paragraph (d)(1) of this
section that pre-approved the withdrawal, and give notice that the
futures commission merchant has withdrawn or intends to withdraw more
than 25 percent of its residual interest in segregated accounts holding
futures customer funds;
* * * * *
(v) Contain a representation by the chief executive officer, chief
finance officer or other senior official as described in paragraph
(d)(1) of this section that pre-approved the withdrawal, or series of
withdrawals, that, after due diligence, to such person's knowledge and
reasonable belief, the futures commission merchant remains in
compliance with the segregation requirements after the withdrawal. The
chief executive officer, chief finance officer or other senior official
as described in paragraph (d)(1) of this section must consider the
daily segregation calculation as of the close of business on the
previous business day and any other factors that may cause a material
change in the futures commission merchant's residual interest since the
close of business the previous business day, including known unsecured
futures customer debits or deficits, current day market activity and
any other withdrawals made from the futures accounts; and
* * * * *
(3) After making a withdrawal requiring the approval and notice
required in paragraphs (d)(1) and (2) of this section, and before the
completion of its next daily segregated funds calculation, no futures
commission merchant may make any further withdrawals from accounts
holding futures customer funds, except to or for the benefit of futures
customers, without, for each withdrawal, obtaining the approval
required under paragraph (d)(1) of this section and filing a written
notice in the manner specified under paragraph (d)(2) of this section
with the Commission and its designated self-regulatory organization
signed by the chief executive officer, chief finance officer, or other
senior official. The written notice must:
* * * * *
PART 30--FOREIGN FUTURES AND FOREIGN OPTIONS TRANSACTIONS
0
3. The authority citation for part 30 continues to read as follows:
Authority: 7 U.S.C. 1a, 2, 6, 6c, and 12a, unless otherwise
noted.
0
4. In Sec. 30.7, revise paragraph (d)(1), paragraph (g)(4)
introductory text, paragraph (g)(4)(v), and paragraph (g)(5)
introductory text to read as follows:
Sec. 30.7 Treatment of foreign futures or foreign options secured
amount.
* * * * *
(d) Written acknowledgment from depositories. (1) A futures
commission merchant must obtain a written acknowledgment from each
depository prior to or contemporaneously with the opening of an account
by the futures commission merchant with such depository; Provided,
however, that a written acknowledgment need not be obtained from a
derivatives clearing organization that has adopted and submitted to the
Commission rules that provide for the separate holding of foreign
futures or foreign options secured amount, in accordance with all
relevant provisions of the Act, this part and the regulations and
orders promulgated thereunder, of all funds held on behalf of 30.7
customers and all instruments purchased with funds set aside as the
foreign futures or foreign options secured amount as provided for under
paragraph (h) of this section.
* * * * *
(g) * * *
(4) A futures commission merchant must file written notice of the
withdrawal or series of withdrawals that exceed 25 percent of the
futures commission merchant's residual interest in 30.7 customer funds
as computed under paragraph (l) of this section with the Commission and
with its designated self-regulatory organization immediately after the
chief executive officer, chief finance officer or other senior official
as described in paragraph (g)(3) of this section pre-approves the
withdrawal or series of withdrawals. The written notice must:
* * * * *
(v) Contain a representation by the chief executive officer, chief
finance officer or other senior official as described in paragraph
(g)(3) of this section that pre-approved the withdrawal, or series of
withdrawals, that to such person's knowledge and reasonable belief, the
futures commission merchant remains in compliance with the secured
amount requirements after the withdrawal. The chief executive officer,
chief finance officer or other appropriate senior official as described
in paragraph (g)(3) of this section must consider the daily 30.7
calculation as of the close of business on the previous business day
and any other factors that may cause a material change in the futures
commission's residual interest since the close of business the previous
business day, including known unsecured customer debits or deficits,
current day market activity and any other withdrawals made from the
30.7 customer accounts; and
* * * * *
(5) After making a withdrawal requiring the approval and notice
required in paragraphs (g)(3) and (4) of this section, and before the
next daily secured amount calculation, no futures commission merchant
may make any further withdrawals from accounts holding 30.7 customer
funds, except to or for the benefit of 30.7 customers, without, for
each withdrawal, obtaining the approval required under paragraph (g)(3)
of this section and filing a written notice with the Commission under
paragraph (g)(4)(vi) of this section and its designated self-regulatory
organization signed by the chief executive officer, chief finance
officer, or other senior official. The written notice must:
* * * * *
PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION
0
5. The authority citation for part 140 continues to read as follows:
Authority: 7 U.S.C. 2(a)(12), 12a, 13(c), 13(d), 13(e), and
16(b).
0
6. In Sec. 140.91, revise paragraph (a)(12) to read as follows:
[[Page 44127]]
Sec. 140.91 Delegation of authority to the Director of the Division
of Clearing and Risk and to the Director of the Division of Swap Dealer
and Intermediary Oversight.
(a) * * *
(12) All functions reserved to the Commission in Sec. 41.41 of
this chapter. Any action taken pursuant to the delegation of authority
under this paragraph (a)(12) shall be made with the concurrence of the
General Counsel or, in his or her absence, a Deputy General Counsel.
* * * * *
Issued in Washington, DC, on July 25, 2014, by the Commission.
Christopher J. Kirkpatrick,
Acting Secretary of the Commission.
[FR Doc. 2014-17934 Filed 7-29-14; 8:45 am]
BILLING CODE 6351-01-P
