Applications for New Awards; Training of Interpreters for Individuals Who Are Deaf or Hard of Hearing and Individuals Who Are Deaf-Blind Program; Correction, 53475-53476 [2016-19269]
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Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices
potentially ending up in bankruptcy. In
addition, clearinghouses could not liquidate
investments in the Reserve Fund. And there
could have easily been a widespread run on
money market funds, but for the emergency
actions taken by the U.S. government.
As a result of the crisis, as well as the
collapse of MF Global, the CFTC and our selfregulatory organizations took a number of
actions to better protect customer funds. We
required customer funds to be strictly
segregated and limited the ways they can be
invested. We enhanced accounting and
auditing procedures at FCMs, including by
requiring daily verification from depositories
of the amounts deposited by FCMs.
Today, CFTC rules require that customer
funds be invested in highly liquid assets and
be convertible into cash within one business
day without a material discount in value. Our
rules also require that clearinghouses invest
initial margin deposits in a manner that
allows them to promptly liquidate any such
investment.
Over the last few years, the Securities and
Exchange Commission (SEC) has also taken
action in response to the lessons of the
financial crisis, by adopting a number of
measures to address the potential
vulnerabilities of money market funds. One
such recent reform, which takes effect in
October of this year, sets forth the
circumstances where prime money market
funds are permitted, or in some
circumstances required, to suspend
redemptions in order to prevent the risk of
investor runs.
While we recognize the benefit of the SEC’s
new rule in preventing investor runs, a
suspension of redemptions by a money
market fund would mean investments in
such funds are not accessible and cannot be
promptly liquidated. Such an event could
result in customers, FCMs, and
clearinghouses being unable to access the
funds necessary to satisfy margin obligations.
Therefore, CFTC staff is today providing
guidance making clear that Commission rules
prohibit a clearing member from investing
customer funds, or a clearinghouse from
investing amounts deposited as initial
margin, in such money market funds.
Some industry participants have suggested
we should interpret or revise our rules to
permit investments of at least some customer
monies in such money market funds unless
and until redemptions are suspended. We
have declined to do so, as it would be too late
to protect customers at that point. Moreover,
there are alternatives to prime funds,
including certain government money markets
funds or Treasury securities. In fact,
investments in prime money market funds
represent a relatively small portion of the
total customer funds on deposit and the total
initial margin deposits at clearinghouses.
Some of our clearinghouses and FCMs do not
have any investments in prime funds.
Staff has been careful not to be overly
restrictive, and therefore has issued no-action
relief to allow FCMs to invest certain
‘‘excess’’ proprietary funds held in customer
accounts in these money market funds. That
is, our existing rules require FCMs to deposit
their own funds (i.e., targeted residual
interest) into customer accounts to make sure
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that there are sufficient funds in the
segregated customer accounts to cover all
obligations due to customers. FCMs
frequently deposit an amount of their own
funds that is in excess of the targeted residual
interest amount required under our rules,
and that excess amount can be withdrawn at
any time. Indeed, if an FCM should default,
customers—and the system as a whole—are
better off if excess funds are on deposit, and
we do not wish to incentivize FCMs to
withdraw such excess funds from the
segregated account. Therefore, the no action
relief makes clear that FCMs can continue to
invest their own funds in excess of their
targeted residual interest in such money
market funds, even though they cannot invest
the customer funds—or any proprietary
funds they are required to deposit—in this
manner.
Finally, the Commission is taking action
today that will further ensure the safety of
customer funds. We are issuing an order that
will help make it possible for systemically
important clearinghouses to deposit customer
funds at Federal Reserve Banks. Our order
makes clear that a Federal Reserve Bank that
opens such an account would be subject to
the same standards of liability that generally
apply to it as a depository, rather than any
potentially conflicting standard under the
commodity laws.
Although Federal Reserve accounts for
customer funds held by systemically
important clearinghouses do not exist today,
they are allowed under the Dodd-Frank Act,
and we have been working with the Board of
Governors to facilitate them. The two
clearinghouses designated as systemically
important in our markets have been approved
to open Federal Reserve Bank accounts for
their proprietary funds. We hope that with
today’s action, accounts for customer funds
can be opened soon. Doing so will help
protect customer funds and enhance the
resiliency of clearinghouses.
I thank the dedicated CFTC staff and my
fellow Commissioners for their work on these
matters.
Appendix 3—Concurring Statement of
Commissioner Sharon Y. Bowen
I am pleased to concur with the two
Commission actions: The ‘‘Order Exempting
the Federal Reserve Banks from Sections 4d
and 22 of the Commodity Exchange Act’’ and
‘‘Written Acknowledgment of Customer
Funds from Federal Reserve Banks.’’ I have
long believed that, in order to protect
customer funds, we need to keep that money
at our central bank. In the event of a major
market event, I, and I believe the rest of the
American people, would feel much better
knowing that investors’ money is at the
Federal Reserve instead of at multiple central
counterparties. I am glad that our agency and
the Federal Reserve have come to an
agreement on an effective way to accomplish
this.
I am similarly pleased with the Division of
Clearing and Risk’s (DCR) ‘‘Staff
Interpretation Regarding CFTC Part 39 In
Light Of Revised SEC Rule 2a–7,’’ which
clearly outlines the staff’s understanding
that, given the limitations that the Securities
and Exchange Commission (SEC) has
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imposed on redemptions for prime money
market funds, that they are no longer
considered Rule 1.25 assets. This is the
correct interpretation. The key feature in a
Rule 1.25 asset is that it must be available
quickly in times of crisis or illiquidity. And
we know that funds are more likely to close
the gates on redemptions when market
dislocation happens. That is just the time
when futures commission merchants (FCMs)
and customers would need access to their
money, and a multi-day delay can mean
catastrophe for some businesses.
For that very reason, I have concerns about
the Division of Swap Dealer and
Intermediary Oversight’s (DSIO) ‘‘No-Action
Relief With Respect to CFTC Regulation 1.25
Regarding Money Market Funds.’’ While the
4(c) exemption and the DCR interpretation
are clearly customer protection initiatives,
the DSIO no action letter is not. This no
action letter would allow FCMs to keep
money in segregated customer accounts that
actually would not be readily available in a
crisis. Thus, while it may appear that an FCM
had considerable funds available to settle
customer accounts during a market
dislocation, in fact that would be only be an
illusion; a portion of those funds could be
locked down behind the prime money market
funds’ gates and therefore not actually be
available when needed.
I do not think that the staff of the
Commission should be supporting this kind
of ‘‘window dressing’’—giving the
impression of greater security than there
actually is. If the funds are not suitable
investments for customer funds, then they
are not suitable for the additional capital that
the FCMs put in those accounts to protect
against potential shortfalls. Having lived
through bankruptcies, such as MF Global and
Peregrine, I have a healthy respect for the
importance of having strong clearing
members with a large cushion of funds that
can be accessed when needed. This no action
letter undermines that effort. Given the
importance of this topic to the general public,
we should at least have asked for comments
or even held a roundtable before making this
change. I therefore hope to reexamine this
subject in the near future.
[FR Doc. 2016–19210 Filed 8–11–16; 8:45 am]
BILLING CODE 6351–01–P
DEPARTMENT OF EDUCATION
Applications for New Awards; Training
of Interpreters for Individuals Who Are
Deaf or Hard of Hearing and
Individuals Who Are Deaf-Blind
Program; Correction
Catalog of Federal Domestic Assistance
(CFDA) Number: 84.160C.
Office of Special Education and
Rehabilitative Services, Department of
Education.
ACTION: Notice; correction.
AGENCY:
On July 25, 2016, we
published in the Federal Register
(81 FR 48409) a notice inviting
SUMMARY:
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Federal Register / Vol. 81, No. 156 / Friday, August 12, 2016 / Notices
applications (NIA) for new awards for
fiscal year (FY) 2016 for the Training of
Interpreters for Individuals Who Are
Deaf or Hard of Hearing and Individuals
Who Are Deaf-blind program. That
notice incorrectly stated that match in
the amount of 10 percent was required
in order for applicants to meet the
required cost match. This document
corrects the error.
FOR FURTHER INFORMATION CONTACT:
Kristen Rhinehart-Fernandez, U.S.
Department of Education, 400 Maryland
Avenue SW., Room 5062, Potomac
Center Plaza, Washington, DC 20202–
2800. Telephone: (202) 245–6103 or by
email: Kristen.Rhinehart@ed.gov.
If you use a telecommunications
device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay
Service, toll free, at 1–800–877–8339.
SUPPLEMENTARY INFORMATION: This
document corrects the percentage of the
required cost match. All other
requirements and conditions stated in
the NIA remain the same.
mstockstill on DSK3G9T082PROD with NOTICES
Corrections
In the Federal Register of July 25,
2016 (81 FR 48409), on page 48409, in
the third column, we revise the section
‘‘2. Cost Sharing or Matching’’ to read as
follows: ‘‘2. Cost Sharing or Matching:
The Commissioner may award grants to
public or private nonprofit agencies or
organizations to pay part of the costs for
interpreter training programs (section
302(f)(1)(A) of the Rehabilitation Act of
1973). Therefore, in order to be
considered for funding, applicants must
identify in the application budget and
budget narrative a percentage of match
towards the total cost of the project. It
is up to the applicant to determine an
appropriate percentage for the match
contribution. To calculate match,
applicants may use the match-calculator
available at: https://rsa.ed.gov/matchcalculator.cfm.’’
Program Authority: 29 U.S.C. 772(f).
Accessible Format: Individuals with
disabilities can obtain this document
and a copy of the application package in
an accessible format (e.g., braille, large
print, audiotape, or compact disc) on
request to the program contact person
listed under FOR FURTHER INFORMATION
CONTACT.
Electronic Access to This Document:
The official version of this document is
the document published in the Federal
Register. Free Internet access to the
official edition of the Federal Register
and the Code of Federal Regulations is
available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you
can view this document, as well as all
other documents of this Department
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published in the Federal Register, in
text or Portable Document Format
(PDF). To use PDF you must have
Adobe Acrobat Reader, which is
available free at the site.
You may also access documents of the
Department published in the Federal
Register by using the article search
feature at: www.federalregister.gov.
Specifically, through the advanced
search feature at this site, you can limit
your search to documents published by
the Department.
Dated: August 9, 2016.
Sue Swenson,
Acting Assistant Secretary for Special
Education and Rehabilitative Services.
[FR Doc. 2016–19269 Filed 8–11–16; 8:45 am]
BILLING CODE 4000–01–P
DEPARTMENT OF EDUCATION
Applications for New Awards; Training
of Interpreters for Individuals Who Are
Deaf or Hard of Hearing and
Individuals Who Are Deaf-Blind
Program
Office of Special Education and
Rehabilitative Services, Department of
Education.
ACTION: Notice.
AGENCY:
Overview Information
Training of Interpreters for
Individuals Who Are Deaf or Hard of
Hearing and Individuals Who Are DeafBlind Program Notice inviting
applications for new awards for fiscal
year (FY) 2016.
Catalog of Federal Domestic Assistance
(CFDA) Number: 84.160D.
DATES
Applications Available: August 12,
2016.
Deadline for Transmittal of
Applications: September 12, 2016.
using spoken, visual, and tactile modes
of communication; ensure the
maintenance of the interpreting skills of
qualified interpreters; and provide
opportunities for interpreters to improve
their skills in order to meet both the
highest standards approved by
certifying associations and the
communication needs of individuals
who are deaf or hard of hearing and
individuals who are deaf-blind.
Priority: This priority is from the
notice of final priority for this program
(NFP) published elsewhere in this issue
of the Federal Register.
Absolute Priority: For FY 2016, this
priority is an absolute priority. Under 34
CFR 75.105(c)(3), we consider only
applications that meet this priority.
This priority is:
Interpreter Training in Specialized
Areas
Program Authority: 29 U.S.C. 772(f).
Applicable Regulations: (a) The
Education Department General
Administrative Regulations (EDGAR) in
34 CFR parts 75, 77, 79, 81, 82, 84, 86,
and 99. (b) The Office of Management
and Budget Guidelines to Agencies on
Governmentwide Debarment and
Suspension (Nonprocurement) in 2 CFR
part 180, as adopted and amended as
regulations of the Department in 2 CFR
part 3485. (c) The Uniform
Administrative Requirements, Cost
Principles, and Audit Requirements for
Federal Awards in 2 CFR part 200, as
adopted and amended as regulations of
the Department in 2 CFR part 3474. (d)
The regulations for this program in 34
CFR part 396. (e) The NFP.
Note: The regulations in 34 CFR part 79
apply to all applicants except federally
recognized American Indian tribes.
Note: The regulations in 34 CFR part 86
apply to institutions of higher education
only.
Full Text of Announcement
II. Award Information
I. Funding Opportunity Description
Type of Award: Discretionary grants.
Estimated Available Funds:
$1,600,000.
Contingent upon availability of funds
and the quality of applications, we may
make additional awards in FY 2017 and
FY 2018 from the list of unfunded
applications from this competition.
Estimated Range of Awards:
$375,000–$400,000.
Estimated Average Size of Awards:
$385,000.
Maximum Award Amount: We will
reject any application that proposes a
budget exceeding $400,000 for a single
budget period of 12 months.
Estimated Number of Awards: 4.
Purpose of Program: Under the
Rehabilitation Act of 1973
(Rehabilitation Act), as amended by the
Workforce Innovation and Opportunity
Act, the Rehabilitation Services
Administration (RSA) makes grants to
public and private nonprofit agencies
and organizations, including
institutions of higher education (IHE), to
establish interpreter training programs
or to provide financial assistance for
ongoing interpreter training programs to
train a sufficient number of qualified
interpreters throughout the country. The
grants are designed to train interpreters
to effectively interpret and transliterate
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Agencies
[Federal Register Volume 81, Number 156 (Friday, August 12, 2016)]
[Notices]
[Pages 53475-53476]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-19269]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF EDUCATION
Applications for New Awards; Training of Interpreters for
Individuals Who Are Deaf or Hard of Hearing and Individuals Who Are
Deaf-Blind Program; Correction
Catalog of Federal Domestic Assistance (CFDA) Number: 84.160C.
AGENCY: Office of Special Education and Rehabilitative Services,
Department of Education.
ACTION: Notice; correction.
-----------------------------------------------------------------------
SUMMARY: On July 25, 2016, we published in the Federal Register (81 FR
48409) a notice inviting
[[Page 53476]]
applications (NIA) for new awards for fiscal year (FY) 2016 for the
Training of Interpreters for Individuals Who Are Deaf or Hard of
Hearing and Individuals Who Are Deaf-blind program. That notice
incorrectly stated that match in the amount of 10 percent was required
in order for applicants to meet the required cost match. This document
corrects the error.
FOR FURTHER INFORMATION CONTACT: Kristen Rhinehart-Fernandez, U.S.
Department of Education, 400 Maryland Avenue SW., Room 5062, Potomac
Center Plaza, Washington, DC 20202-2800. Telephone: (202) 245-6103 or
by email: Kristen.Rhinehart@ed.gov.
If you use a telecommunications device for the deaf (TDD) or a text
telephone (TTY), call the Federal Relay Service, toll free, at 1-800-
877-8339.
SUPPLEMENTARY INFORMATION: This document corrects the percentage of the
required cost match. All other requirements and conditions stated in
the NIA remain the same.
Corrections
In the Federal Register of July 25, 2016 (81 FR 48409), on page
48409, in the third column, we revise the section ``2. Cost Sharing or
Matching'' to read as follows: ``2. Cost Sharing or Matching: The
Commissioner may award grants to public or private nonprofit agencies
or organizations to pay part of the costs for interpreter training
programs (section 302(f)(1)(A) of the Rehabilitation Act of 1973).
Therefore, in order to be considered for funding, applicants must
identify in the application budget and budget narrative a percentage of
match towards the total cost of the project. It is up to the applicant
to determine an appropriate percentage for the match contribution. To
calculate match, applicants may use the match-calculator available at:
https://rsa.ed.gov/match-calculator.cfm.''
Program Authority: 29 U.S.C. 772(f).
Accessible Format: Individuals with disabilities can obtain this
document and a copy of the application package in an accessible format
(e.g., braille, large print, audiotape, or compact disc) on request to
the program contact person listed under FOR FURTHER INFORMATION
CONTACT.
Electronic Access to This Document: The official version of this
document is the document published in the Federal Register. Free
Internet access to the official edition of the Federal Register and the
Code of Federal Regulations is available via the Federal Digital System
at: www.gpo.gov/fdsys. At this site you can view this document, as well
as all other documents of this Department published in the Federal
Register, in text or Portable Document Format (PDF). To use PDF you
must have Adobe Acrobat Reader, which is available free at the site.
You may also access documents of the Department published in the
Federal Register by using the article search feature at:
www.federalregister.gov. Specifically, through the advanced search
feature at this site, you can limit your search to documents published
by the Department.
Dated: August 9, 2016.
Sue Swenson,
Acting Assistant Secretary for Special Education and Rehabilitative
Services.
[FR Doc. 2016-19269 Filed 8-11-16; 8:45 am]
BILLING CODE 4000-01-P