Self-Regulatory Organizations; Financial Industry Regulatory Authority, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Extend the Implementation of FINRA Rule 4240 (Margin Requirements for Credit Default Swaps), 31931-31933 [2015-13612]
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Federal Register / Vol. 80, No. 107 / Thursday, June 4, 2015 / Notices
B. Submitting Comments
Please include Docket ID NRC–2015–
0136 in the subject line of your
comment submission, in order to ensure
that the NRC is able to make your
comment submission available to the
public in this docket.
The NRC cautions you not to include
identifying or contact information in
comment submissions that you do not
want to be publicly disclosed in your
comment submission. The NRC will
post all comment submissions at
https://www.regulations.gov as well as
enter the comment submissions into
ADAMS, and the NRC does not
routinely edit comment submissions to
remove identifying or contact
information.
If you are requesting or aggregating
comments from other persons for
submission to the NRC, then you should
inform those persons not to include
identifying or contact information that
they do not want to be publicly
disclosed in their comment submission.
Your request should state that the NRC
does not routinely edit comment
submissions to remove such information
before making the comment
submissions available to the public or
entering the comment into ADAMS.
wreier-aviles on DSK5TPTVN1PROD with NOTICES
II. Background
In accordance with the Paperwork
Reduction Act of 1995 (44 U.S.C.
Chapter 35), the NRC is requesting
public comment on its intention to
request the OMB’s approval for the
information collection summarized
below.
1. The title of the information
collection: NRC Generic Letter 2015–
XX, ‘‘Monitoring of Neutron-Absorbing
Materials in Spent Fuel Pools’’.
2. OMB approval number: An OMB
control number has not yet been
assigned to this proposed information
collection.
3. Type of submission: New.
4. The form number, if applicable:
Not applicable.
5. How often is the collection required
or requested: One-time.
6. Who will be required or asked to
respond: All nuclear power reactors
with a license issued under Title 10 of
the Code of Federal Regulations (10
CFR) Part 50, ‘‘Domestic Licensing of
Production and Utilization Facilities,’’
except those that have permanently
ceased operations with all reactor fuel
removed from on-site spent fuel pool
storage; all holders of an operating
license for a non-power reactor
(research reactor, test reactor, or critical
assembly) under 10 CFR part 50 who
have a reactorpool, fuel storage pool, or
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15:33 Jun 03, 2015
Jkt 235001
other wet locations designed for the
purpose of fuel storage, except those
who have permanently ceased
operations with all reactor fuel removed
from on-site wet storage.
7. The estimated number of annual
responses: 112.
8. The estimated number of annual
respondents: 112.
9. The estimated number of hours
needed annually to comply with the
information collection requirement or
request: 12,900 hours.
10. Abstract: Neutron-absorbing
materials installed in the spent fuel pool
that are credited for maintaining
subcriticality must be able to perform
their neutron-absorbing safety function
during both normal operating
conditions and design basis events.
Monitoring of neutron-absorbing
materials is intended to identify when
degradation may affect the ability to
perform the neutron-absorbing safety
function, so that appropriate corrective
action can be taken. The NRC is
requesting information to determine if
(1) addressees have adequate neutronabsorbing material monitoring programs
in place to ensure compliance with the
regulations, and (2) the agency should
take additional regulatory action. The
NRC is required by the Atomic Energy
Act to verify that licensees are in
compliance with the regulations and
license conditions. Compliance with the
regulations provides reasonable
assurance of public health and safety.
The NRC has authority to collect this
type of information pursuant to Title 10
of the Code of Federal (10 CFR) 50.54(f).
The NRC staff may at any time require
a licensee to submit additional
information to enable the Commission
to determine if the license to operate a
nuclear facility needs to be modified,
revoked, or suspended. The
Commission uses the information
collected to verify that licensees meet
the NRC regulations and requirements
of their license.
III. Specific Requests for Comments
The NRC is seeking comments that
address the following questions:
1. Is the proposed collection of
information necessary for the NRC to
properly perform its functions? Does the
information have practical utility?
2. Is the estimate of the burden of the
information collection accurate?
3. Is there a way to enhance the
quality, utility, and clarity of the
information to be collected?
4. How can the burden of the
information collection on respondents
be minimized, including the use of
automated collection techniques or
other forms of information technology?
PO 00000
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31931
Dated at Rockville, Maryland, this 29th day
of May 2015.
For the Nuclear Regulatory Commission.
Tremaine Donnell,
NRC Clearance Officer, Office of Information
Services.
[FR Doc. 2015–13631 Filed 6–3–15; 8:45 am]
BILLING CODE 7590–01–P
OVERSEAS PRIVATE INVESTMENT
CORPORATION
Sunshine Act Meeting
Cancellation Notice—OPIC June 3, 2015
Public Hearing
OPIC’s Sunshine Act notice of its
Public Hearing in Conjunction with
each Board meeting was published in
the Federal Register (Volume 80,
Number 91, Pages 87204 and 27205) on
May 12, 2015. No requests were
received to provide testimony or submit
written statements for the record;
therefore, OPIC’s public hearing
scheduled for 2 p.m., June 3, 2015 in
conjunction with OPIC’s June 11, 2015
Board of Directors meeting has been
cancelled.
CONTACT PERSON FOR INFORMATION:
Information on the hearing cancellation
may be obtained from Catherine F. I.
Andrade at (202) 336–8768, or via email
at Catherine.Andrade@opic.gov.
Dated: June 1, 2015.
Catherine F. I. Andrade,
OPIC Corporate Secretary.
[FR Doc. 2015–13763 Filed 6–2–15; 11:15 am]
BILLING CODE 3210–01–P
SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–75069; File No. SR–FINRA–
2015–013]
Self-Regulatory Organizations;
Financial Industry Regulatory
Authority, Inc.; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Extend the
Implementation of FINRA Rule 4240
(Margin Requirements for Credit
Default Swaps)
May 29, 2015.
Pursuant to section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on May 20,
2015, Financial Industry Regulatory
Authority, Inc. (‘‘FINRA’’) filed with the
Securities and Exchange Commission
1 15
2 17
E:\FR\FM\04JNN1.SGM
U.S.C. 78s(b)(1).
CFR 240.19b–4.
04JNN1
31932
Federal Register / Vol. 80, No. 107 / Thursday, June 4, 2015 / Notices
(‘‘SEC’’ or ‘‘Commission’’) the proposed
rule change as described in Items I and
II below, which Items have been
prepared by FINRA. FINRA has
designated the proposed rule change as
constituting a ‘‘non-controversial’’ rule
change under paragraph (f)(6) of Rule
19b–4 under the Act,3 which renders
the proposal effective upon receipt of
this filing by the Commission. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
FINRA is proposing to extend to July
18, 2016 the implementation of FINRA
Rule 4240 (Margin Requirements for
Credit Default Swaps). FINRA Rule 4240
implements an interim pilot program
with respect to margin requirements for
certain transactions in credit default
swaps that are security-based swaps.
The text of the proposed rule change
is available on FINRA’s Web site at
https://www.finra.org, at the principal
office of FINRA and at the
Commission’s Public Reference Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission,
FINRA included statements concerning
the purpose of and basis for the
proposed rule change and discussed any
comments it received on the proposed
rule change. The text of these statements
may be examined at the places specified
in Item IV below. FINRA has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
wreier-aviles on DSK5TPTVN1PROD with NOTICES
1. Purpose
On May 22, 2009, the Commission
approved FINRA Rule 4240,4 which
implements an interim pilot program
(the ‘‘Interim Pilot Program’’) with
respect to margin requirements for
certain transactions in credit default
swaps (‘‘CDS’’).5 On June 23, 2014,
3 17
CFR 240.19b–4(f)(6).
Securities Exchange Act Release No. 59955
(May 22, 2009), 74 FR 25586 (May 28, 2009) (Order
Approving File No. SR–FINRA–2009–012)
(‘‘Approval Order’’).
5 In March 2012, the SEC approved amendments
to FINRA Rule 4240 that, among other things, limit
at this time the rule’s application to credit default
swaps that are security-based swaps. See Securities
Exchange Act Release No. 66527 (March 7, 2012),
4 See
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15:33 Jun 03, 2015
Jkt 235001
FINRA filed a proposed rule change for
immediate effectiveness extending the
implementation of FINRA Rule 4240 to
July 17, 2015.6
As explained in the Approval Order,
FINRA Rule 4240, coterminous with
certain Commission actions, was
intended to address concerns arising
from systemic risk posed by CDS,
including, among other things, risks to
the financial system arising from the
lack of a central clearing counterparty to
clear and settle CDS.7 On July 21, 2010,
President Obama signed into law the
Dodd-Frank Wall Street Reform and
Consumer Protection Act (the ‘‘DoddFrank Act’’),8 Title VII of which
established a comprehensive new
regulatory framework for swaps and
security-based swaps,9 including certain
CDS. The new legislation was intended,
among other things, to enhance the
authority of regulators to implement
new rules designed to reduce risk,
increase transparency, and promote
market integrity with respect to such
products.
Pursuant to Title VII of the DoddFrank Act, the CFTC and the
Commission are engaged in ongoing
rulemaking with respect to swaps and
security-based swaps.10 The
Commission has, among other things,
proposed rules with respect to capital,
margin and segregation requirements for
security-based swap dealers and major
security-based swap participants and
77 FR 14850 (March 13, 2012) (Order Approving
File No. SR–FINRA–2012–015).
6 See Securities Exchange Act Release No. 72522
(July 2, 2014), 79 FR 39031 (July 9, 2014) (Notice
of Filing and Immediate Effectiveness of File No.
SR–FINRA–2014–029).
7 See Approval Order, 74 FR at 25588–89.
8 See Dodd-Frank Wall Street Reform and
Consumer Protection Act, Public Law 111–203, 124
Stat. 1376 (2010).
9 The terms ‘‘swap’’ and ‘‘security-based swap’’
are defined in Sections 721 and 761 of the DoddFrank Act. The Commodity Futures Trading
Commission (‘‘CFTC’’) and the Commission jointly
have approved rules to further define these terms.
See Securities Exchange Act Release No. 67453
(July 18, 2012), 77 FR 48208 (August 13, 2012)
(Joint Final Rule; Interpretations; Request for
Comment on an Interpretation: Further Definition of
‘‘Swap,’’ ‘‘Security-Based Swap,’’ and ‘‘SecurityBased Swap Agreement’’; Mixed Swaps; SecurityBased Swap Agreement Recordkeeping). See also
Securities Exchange Act Release No. 66868 (April
27, 2012), 77 FR 30596 (May 23, 2012) (Joint Final
Rule; Joint Interim Final Rule; Interpretations:
Further Definition of ‘‘Swap Dealer,’’ ‘‘SecurityBased Swap Dealer,’’ ‘‘Major Swap Participant,’’
‘‘Major Security-Based Swap Participant’’ and
‘‘Eligible Contract Participant’’).
10 See, e.g., Securities Exchange Act Release No.
67177 (June 11, 2012), 77 FR 35625 (June 14, 2012)
(Notice of Statement of General Policy with Request
for Public Comment: Statement of General Policy on
the Sequencing of the Compliance Dates for Final
Rules Applicable to Security-Based Swaps Adopted
Pursuant to the Securities Exchange Act of 1934
and the Dodd-Frank Wall Street Reform and
Consumer Protection Act).
PO 00000
Frm 00047
Fmt 4703
Sfmt 4703
capital requirements for brokerdealers.11 FINRA believes it is
appropriate to extend the Interim Pilot
Program for a limited period, to July 18,
2016, in light of the continuing
development of the CDS business
within the framework of the Dodd-Frank
Act and pending the final
implementation of new CFTC and SEC
rules pursuant to Title VII of that
legislation. FINRA is considering
proposing additional amendments to the
Interim Pilot Program.
FINRA has filed the proposed rule
change for immediate effectiveness.
FINRA is proposing that the
implementation date of the proposed
rule change will be July 17, 2015. The
proposed rule change will expire on
July 18, 2016.
2. Statutory Basis
FINRA believes that the proposed rule
change is consistent with the provisions
of section 15A(b)(6) of the Act,12 which
requires, among other things, that
FINRA rules must be designed to
prevent fraudulent and manipulative
acts and practices, to promote just and
equitable principles of trade, and, in
general, to protect investors and the
public interest. FINRA believes that the
proposed rule change is consistent with
the Act because, in light of the
continuing development of the CDS
business within the framework of the
Dodd-Frank Act and pending the final
implementation of new CFTC and SEC
rules pursuant to Title VII of that
legislation, extending the
implementation of the margin
requirements as set forth by FINRA Rule
4240 will help to stabilize the financial
markets.
B. Self-Regulatory Organization’s
Statement on Burden on Competition
FINRA does not believe that the
proposed rule change will result in any
burden on competition that is not
necessary or appropriate in furtherance
of the purposes of the Act. FINRA
believes that extending the
implementation of FINRA Rule 4240 for
a limited period, to July 18, 2016, in
light of the continuing development of
11 See Securities Exchange Act Release No. 68071
(October 18, 2012), 77 FR 70214 (November 23,
2012) (Proposed Rule: Capital, Margin, and
Segregation Requirements for Security-Based Swap
Dealers and Major Security-Based Swap
Participants and Capital Requirements for BrokerDealers). See also Securities Exchange Act Release
No. 71958 (April 17, 2014), 79 FR 25194 (May 2,
2014) (Proposed Rule: Recordkeeping and Reporting
Requirements for Security-Based Swap Dealers,
Major Security-Based Swap Participants, and
Broker-Dealers; Capital Rule for Certain SecurityBased Swap Dealers).
12 15 U.S.C. 78o–3(b)(6).
E:\FR\FM\04JNN1.SGM
04JNN1
Federal Register / Vol. 80, No. 107 / Thursday, June 4, 2015 / Notices
the CDS business within the framework
of the Dodd-Frank Act and pending the
final implementation of new CFTC and
SEC rules pursuant to Title VII of that
legislation, helps to promote stability in
the financial markets and regulatory
certainty for members.
C. Self-Regulatory Organization’s
Statement on Comments on the
Proposed Rule Change Received From
Members, Participants, or Others
Written comments were neither
solicited nor received.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule
change does not: (i) Significantly affect
the protection of investors or the public
interest; (ii) impose any significant
burden on competition; and (iii) become
operative for 30 days from the date on
which it was filed, or such shorter time
as the Commission may designate, it has
become effective pursuant to section
19(b)(3)(A) of the Act 13 and Rule 19b–
4(f)(6) thereunder.14
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Paper Comments
• Send paper comments in triplicate
to Brent J. Fields, Secretary, Securities
and Exchange Commission, 100 F Street
NE., Washington, DC 20549–1090.
All submissions should refer to File
Number SR–FINRA–2015–013. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
Internet Web site (https://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for Web site viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE.,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of FINRA. All comments received
will be posted without change; the
Commission does not edit personal
identifying information from
submissions. You should submit only
information that you wish to make
available publicly. All submissions
should refer to File Number SR–FINRA–
2015–013 and should be submitted on
or before June 25, 2015.
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.15
Brent J. Fields,
Secretary.
Electronic Comments
BILLING CODE 8011–01–P
wreier-aviles on DSK5TPTVN1PROD with NOTICES
• Use the Commission’s Internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
FINRA–2015–013 on the subject line.
13 15
U.S.C. 78s(b)(3)(A).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
provide the Commission with written notice of its
intent to file the proposed rule change, along with
a brief description and text of the proposed rule
change, at least five business days prior to the date
of filing of the proposed rule change, or such
shorter time as designated by the Commission.
FINRA has fulfilled this requirement.
14 17
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15:33 Jun 03, 2015
Jkt 235001
[FR Doc. 2015–13612 Filed 6–3–15; 08:45 am]
SECURITIES AND EXCHANGE
COMMISSION
Order of Suspension of Trading; In the
Matter of Anticus International Corp.,
China Marketing Media Holdings, Inc.,
Cigma Metals Corp., and LL&E Royalty
Trust; File No. 500–1
June 2, 2015.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
15 17
PO 00000
CFR 200.30–3(a)(12).
Frm 00048
Fmt 4703
Sfmt 4703
31933
concerning the securities of Anticus
International Corp. (CIK No. 1192494), a
revoked Nevada corporation with its
principal place of business listed as
Montreal, Quebec, Canada, with stock
quoted on OTC Link (previously, ‘‘Pink
Sheets’’) operated by OTC Markets
Group, Inc. (‘‘OTC Link’’) under the
ticker symbol ATCI, because it has not
filed any periodic reports since the
period ended March 31, 2011. On July
5, 2013, Anticus International received
a delinquency letter sent by the Division
of Corporation Finance requesting
compliance with their periodic filing
obligations.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of China
Marketing Media Holdings, Inc. (CIK
No. 1353307), a forfeited Texas
corporation with its principal place of
business listed as Beijing, China, with
stock quoted on OTC Link under the
ticker symbol CMKM, because it has not
filed any periodic reports since the
period ended September 30, 2012. On
April 15, 2014, the Division of
Corporation Finance sent China
Marketing Media Holdings a
delinquency letter requesting
compliance with its periodic filing
obligations, but the letter was returned
because of China Marketing Media
Holdings’ failure to maintain a valid
address on file with the Commission.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of Cigma
Metals Corp. (CIK No. 1083410), a
dissolved Florida corporation with its
principal place of business listed as
Madrid, Spain, with stock quoted on
OTC Link under the ticker symbol
CGMX, because it has not filed any
periodic reports since the period ended
September 30, 2012. A delinquency
letter sent to Cigma Metals by the
Division of Corporation Finance
requesting compliance with their
periodic filing obligations was returned,
but a letter sent to the company’s
registered agent was delivered on
August 17, 2012.
It appears to the Securities and
Exchange Commission that there is a
lack of current and accurate information
concerning the securities of LL&E
Royalty Trust (CIK No. 721765), a
Michigan trust with its principal place
of business listed as Troy, Michigan,
with units of interest quoted on OTC
Link under the ticker symbol LRTR,
because it has not filed any periodic
reports since the period ended
September 30, 2011. On August 30,
2013, LL&E Royalty received a
E:\FR\FM\04JNN1.SGM
04JNN1
]]>Agencies
[Federal Register Volume 80, Number 107 (Thursday, June 4, 2015)]
[Notices]
[Pages 31931-31933]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-13612]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-75069; File No. SR-FINRA-2015-013]
Self-Regulatory Organizations; Financial Industry Regulatory
Authority, Inc.; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Extend the Implementation of FINRA Rule 4240
(Margin Requirements for Credit Default Swaps)
May 29, 2015.
Pursuant to section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that
on May 20, 2015, Financial Industry Regulatory Authority, Inc.
(``FINRA'') filed with the Securities and Exchange Commission
[[Page 31932]]
(``SEC'' or ``Commission'') the proposed rule change as described in
Items I and II below, which Items have been prepared by FINRA. FINRA
has designated the proposed rule change as constituting a ``non-
controversial'' rule change under paragraph (f)(6) of Rule 19b-4 under
the Act,\3\ which renders the proposal effective upon receipt of this
filing by the Commission. The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 17 CFR 240.19b-4(f)(6).
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
FINRA is proposing to extend to July 18, 2016 the implementation of
FINRA Rule 4240 (Margin Requirements for Credit Default Swaps). FINRA
Rule 4240 implements an interim pilot program with respect to margin
requirements for certain transactions in credit default swaps that are
security-based swaps.
The text of the proposed rule change is available on FINRA's Web
site at https://www.finra.org, at the principal office of FINRA and at
the Commission's Public Reference Room.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, FINRA included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. FINRA has prepared summaries, set forth in sections A,
B, and C below, of the most significant aspects of such statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
On May 22, 2009, the Commission approved FINRA Rule 4240,\4\ which
implements an interim pilot program (the ``Interim Pilot Program'')
with respect to margin requirements for certain transactions in credit
default swaps (``CDS'').\5\ On June 23, 2014, FINRA filed a proposed
rule change for immediate effectiveness extending the implementation of
FINRA Rule 4240 to July 17, 2015.\6\
---------------------------------------------------------------------------
\4\ See Securities Exchange Act Release No. 59955 (May 22,
2009), 74 FR 25586 (May 28, 2009) (Order Approving File No. SR-
FINRA-2009-012) (``Approval Order'').
\5\ In March 2012, the SEC approved amendments to FINRA Rule
4240 that, among other things, limit at this time the rule's
application to credit default swaps that are security-based swaps.
See Securities Exchange Act Release No. 66527 (March 7, 2012), 77 FR
14850 (March 13, 2012) (Order Approving File No. SR-FINRA-2012-015).
\6\ See Securities Exchange Act Release No. 72522 (July 2,
2014), 79 FR 39031 (July 9, 2014) (Notice of Filing and Immediate
Effectiveness of File No. SR-FINRA-2014-029).
---------------------------------------------------------------------------
As explained in the Approval Order, FINRA Rule 4240, coterminous
with certain Commission actions, was intended to address concerns
arising from systemic risk posed by CDS, including, among other things,
risks to the financial system arising from the lack of a central
clearing counterparty to clear and settle CDS.\7\ On July 21, 2010,
President Obama signed into law the Dodd-Frank Wall Street Reform and
Consumer Protection Act (the ``Dodd-Frank Act''),\8\ Title VII of which
established a comprehensive new regulatory framework for swaps and
security-based swaps,\9\ including certain CDS. The new legislation was
intended, among other things, to enhance the authority of regulators to
implement new rules designed to reduce risk, increase transparency, and
promote market integrity with respect to such products.
---------------------------------------------------------------------------
\7\ See Approval Order, 74 FR at 25588-89.
\8\ See Dodd-Frank Wall Street Reform and Consumer Protection
Act, Public Law 111-203, 124 Stat. 1376 (2010).
\9\ The terms ``swap'' and ``security-based swap'' are defined
in Sections 721 and 761 of the Dodd-Frank Act. The Commodity Futures
Trading Commission (``CFTC'') and the Commission jointly have
approved rules to further define these terms. See Securities
Exchange Act Release No. 67453 (July 18, 2012), 77 FR 48208 (August
13, 2012) (Joint Final Rule; Interpretations; Request for Comment on
an Interpretation: Further Definition of ``Swap,'' ``Security-Based
Swap,'' and ``Security-Based Swap Agreement''; Mixed Swaps;
Security-Based Swap Agreement Recordkeeping). See also Securities
Exchange Act Release No. 66868 (April 27, 2012), 77 FR 30596 (May
23, 2012) (Joint Final Rule; Joint Interim Final Rule;
Interpretations: Further Definition of ``Swap Dealer,'' ``Security-
Based Swap Dealer,'' ``Major Swap Participant,'' ``Major Security-
Based Swap Participant'' and ``Eligible Contract Participant'').
---------------------------------------------------------------------------
Pursuant to Title VII of the Dodd-Frank Act, the CFTC and the
Commission are engaged in ongoing rulemaking with respect to swaps and
security-based swaps.\10\ The Commission has, among other things,
proposed rules with respect to capital, margin and segregation
requirements for security-based swap dealers and major security-based
swap participants and capital requirements for broker-dealers.\11\
FINRA believes it is appropriate to extend the Interim Pilot Program
for a limited period, to July 18, 2016, in light of the continuing
development of the CDS business within the framework of the Dodd-Frank
Act and pending the final implementation of new CFTC and SEC rules
pursuant to Title VII of that legislation. FINRA is considering
proposing additional amendments to the Interim Pilot Program.
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\10\ See, e.g., Securities Exchange Act Release No. 67177 (June
11, 2012), 77 FR 35625 (June 14, 2012) (Notice of Statement of
General Policy with Request for Public Comment: Statement of General
Policy on the Sequencing of the Compliance Dates for Final Rules
Applicable to Security-Based Swaps Adopted Pursuant to the
Securities Exchange Act of 1934 and the Dodd-Frank Wall Street
Reform and Consumer Protection Act).
\11\ See Securities Exchange Act Release No. 68071 (October 18,
2012), 77 FR 70214 (November 23, 2012) (Proposed Rule: Capital,
Margin, and Segregation Requirements for Security-Based Swap Dealers
and Major Security-Based Swap Participants and Capital Requirements
for Broker-Dealers). See also Securities Exchange Act Release No.
71958 (April 17, 2014), 79 FR 25194 (May 2, 2014) (Proposed Rule:
Recordkeeping and Reporting Requirements for Security-Based Swap
Dealers, Major Security-Based Swap Participants, and Broker-Dealers;
Capital Rule for Certain Security-Based Swap Dealers).
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FINRA has filed the proposed rule change for immediate
effectiveness. FINRA is proposing that the implementation date of the
proposed rule change will be July 17, 2015. The proposed rule change
will expire on July 18, 2016.
2. Statutory Basis
FINRA believes that the proposed rule change is consistent with the
provisions of section 15A(b)(6) of the Act,\12\ which requires, among
other things, that FINRA rules must be designed to prevent fraudulent
and manipulative acts and practices, to promote just and equitable
principles of trade, and, in general, to protect investors and the
public interest. FINRA believes that the proposed rule change is
consistent with the Act because, in light of the continuing development
of the CDS business within the framework of the Dodd-Frank Act and
pending the final implementation of new CFTC and SEC rules pursuant to
Title VII of that legislation, extending the implementation of the
margin requirements as set forth by FINRA Rule 4240 will help to
stabilize the financial markets.
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\12\ 15 U.S.C. 78o-3(b)(6).
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B. Self-Regulatory Organization's Statement on Burden on Competition
FINRA does not believe that the proposed rule change will result in
any burden on competition that is not necessary or appropriate in
furtherance of the purposes of the Act. FINRA believes that extending
the implementation of FINRA Rule 4240 for a limited period, to July 18,
2016, in light of the continuing development of
[[Page 31933]]
the CDS business within the framework of the Dodd-Frank Act and pending
the final implementation of new CFTC and SEC rules pursuant to Title
VII of that legislation, helps to promote stability in the financial
markets and regulatory certainty for members.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
Significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to section 19(b)(3)(A) of the Act \13\ and Rule 19b-
4(f)(6) thereunder.\14\
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to provide the Commission
with written notice of its intent to file the proposed rule change,
along with a brief description and text of the proposed rule change,
at least five business days prior to the date of filing of the
proposed rule change, or such shorter time as designated by the
Commission. FINRA has fulfilled this requirement.
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At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's Internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to rule-comments@sec.gov. Please include
File Number SR-FINRA-2015-013 on the subject line.
Paper Comments
Send paper comments in triplicate to Brent J. Fields,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number SR-FINRA-2015-013. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's Internet Web site (https://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments, all
written statements with respect to the proposed rule change that are
filed with the Commission, and all written communications relating to
the proposed rule change between the Commission and any person, other
than those that may be withheld from the public in accordance with the
provisions of 5 U.S.C. 552, will be available for Web site viewing and
printing in the Commission's Public Reference Room, 100 F Street NE.,
Washington, DC 20549, on official business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such filing also will be available
for inspection and copying at the principal office of FINRA. All
comments received will be posted without change; the Commission does
not edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-FINRA-2015-013 and should be
submitted on or before June 25, 2015.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\15\
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\15\ 17 CFR 200.30-3(a)(12).
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Brent J. Fields,
Secretary.
[FR Doc. 2015-13612 Filed 6-3-15; 08:45 am]
BILLING CODE 8011-01-P
