Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations; Correction, 44125-44127 [2014-17934]

Download as PDF 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. * * * * * 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: VerDate Mar<15>2010 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: PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 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 E:\FR\FM\30JYR1.SGM 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 * * * * * (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 VerDate Mar<15>2010 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: * * * * * 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. * * * * * (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 PO 00000 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 * * * * * (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 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. * * * * * 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: PO 00000 Frm 00035 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]


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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