February 15, 2019 – Federal Register Recent Federal Regulation Documents

Airworthiness Directives; Airbus SAS Airplanes
Document Number: 2019-02552
Type: Proposed Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We propose to supersede Airworthiness Directive (AD) 2018-19- 18, which applies to certain Airbus SAS Model A300 B4-603, B4-620, and B4-622 airplanes; Model A300 B4-600R series airplanes; Model A300 C4- 605R Variant F airplanes; and Model A300 F4-605R airplanes. AD 2018-19- 18 requires, depending on airplane configuration, a modification of certain angle fitting attachment holes; repetitive inspections for cracking of certain holes of the internal lower angle fitting web, certain holes of the internal lower angle fitting horizontal splicing, the aft bottom panel, and a certain junction area; and related investigative and corrective actions if necessary. Since we issued AD 2018-19-18, we have determined that additional airplanes are affected by the unsafe condition. This proposed AD would retain the actions required by AD 2018-19-18, expand the applicability, and, for certain airplanes, would require repetitive inspections for cracking of certain holes of the center wing box (CWB) lower angle fittings and the CWB lower panel, and corrective actions if necessary. We are proposing this AD to address the unsafe condition on these products.
Air Plan Approval; Kentucky; Regional Haze Plan and Prong 4 (Visibility) for the 1997 Ozone, 2010 NO2
Document Number: 2019-02543
Type: Proposed Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
The Environmental Protection Agency (EPA) is proposing to take the following four actions regarding the Kentucky State Implementation Plan (SIP): Approve Kentucky's November 16, 2018, SIP submittal seeking to change reliance from the Clean Air Interstate Rule (CAIR) to the Cross-State Air Pollution Rule (CSAPR) for certain regional haze requirements; convert EPA's limited approval/limited disapproval of Kentucky's regional haze plan to a full approval; remove EPA's Federal Implementation Plan (FIP) for Kentucky which replaced reliance on CAIR with reliance on CSAPR to address the deficiencies identified in the limited disapproval of Kentucky's regional haze plan; and approve the visibility prong of Kentucky's infrastructure SIP submittals for the 1997 Ozone, 2010 Nitrogen Dioxide (NO2), 2010 Sulfur Dioxide (SO2), and 2012 Fine Particulate Matter (PM2.5) National Ambient Air Quality Standards (NAAQS).
Air Plan Approval; Florida; 2008 8-Hour Ozone Interstate Transport
Document Number: 2019-02542
Type: Proposed Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
The Environmental Protection Agency (EPA) is proposing to approve Florida's October 3, 2017, State Implementation Plan (SIP) submission pertaining to the ``good neighbor'' provision of the Clean Air Act (CAA or Act) for the 2008 8-hour ozone National Ambient Air Quality Standards (NAAQS). The good neighbor provision requires each state's implementation plan to address the interstate transport of air pollution in amounts that contribute significantly to nonattainment, or interfere with maintenance of a NAAQS in any other state. In this action, EPA is proposing to determine that Florida's SIP contains adequate provisions to prohibit emissions within the state from contributing significantly to nonattainment or interfering with maintenance of the 2008 8-hour ozone NAAQS in any other state.
Air Plan Approval and Designation of Areas; FL; Redesignation of the Nassau County 2010 1-Hour Sulfur Dioxide Nonattainment Area to Attainment
Document Number: 2019-02536
Type: Proposed Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
In a letter dated June 7, 2018, the State of Florida, through the Florida Department of Environmental Protection (FDEP), submitted a request for the Environmental Protection Agency (EPA) to redesignate the Nassau County sulfur dioxide (SO2) nonattainment area (hereinafter referred to as the ``Nassau County Area'' or ``Area'') to attainment for the 2010 1-hour SO2 primary national ambient air quality standard (NAAQS) and to approve an accompanying state implementation plan (SIP) revision containing a maintenance plan for the Area. The submittal was received by EPA on June 12, 2018. EPA is proposing to determine that the Nassau County Area attained the 2010 1- hour SO2 NAAQS by its applicable attainment date of October 4, 2018; to approve the SIP revision containing the State's plan for maintaining attainment of the 2010 1-hour SO2 standard and to incorporate the maintenance plan into the SIP; and to redesignate the Nassau County Area to attainment for the 2010 1-hour SO2 NAAQS.
Trifluralin; Pesticide Tolerances
Document Number: 2019-02535
Type: Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
This regulation establishes tolerances for residues of trifluralin in or on rosemary fresh leaves, rosemary dried leaves, and rosemary oil. Interregional Research Project Number 4 (IR-4) requested these tolerances under the Federal Food, Drug, and Cosmetic Act (FFDCA).
Establishment of TRICARE Select and Other TRICARE Reforms
Document Number: 2019-02532
Type: Rule
Date: 2019-02-15
Agency: Department of Defense, Office of the Secretary
This final rule implements the primary features of section 701 and partially implements several other sections of the National Defense Authorization Act for Fiscal Year 2017 (NDAA-17). The law makes significant changes to the TRICARE program, especially to the health maintenance organization (HMO)-like health plan, known as TRICARE Prime; to the preferred provider organization (PPO) health plan, previously known as TRICARE Extra and replaced by TRICARE Select; and to the third health care option, known as TRICARE Standard, which was terminated December 31, 2017, and is also replaced by TRICARE Select. The statute also adopts a new health plan enrollment system under TRICARE and new provisions for access to care, high value services, preventive care, and healthy lifestyles. In implementing the statutory changes, this final rule makes a number of improvements to TRICARE.
Defense Federal Acquisition Regulation Supplement; Appendix A, Armed Services Board of Contract Appeals, Part 1-Charter
Document Number: 2019-02531
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing the updated Charter of the Armed Services Board of Contract Appeals (ASBCA), dated April 9, 2018. The ASBCA is chartered to serve as the authorized representative of the Secretary of Defense and the Secretaries of the Army, Navy, and Air Force in hearing, considering, and determining appeals by contractors from decisions of contracting officers or their authorized representatives or other authorities regarding claims on contracts under the Contract Disputes Act of 1978 or other remedy-granting provisions.
Defense Federal Acquisition Regulation Supplement: Undefinitized Contract Actions (DFARS Case 2018-D008)
Document Number: 2019-02530
Type: Proposed Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is proposing to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2017 and a section of the National Defense Authorization Act for Fiscal Year 2018 to revise requirements for definitizing undefinitized contract actions.
Defense Federal Acquisition Regulation Supplement: Extension of Supply Chain Risk Management Authority (DFARS Case 2018-D072)
Document Number: 2019-02529
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2019.
Defense Federal Acquisition Regulation Supplement: Modification of DFARS Clause “Transportation of Supplies by Sea” (DFARS Case 2018-D028)
Document Number: 2019-02528
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to modify the text of an existing DFARS clause to include the text of another DFARS clause, in order to streamline the instructions to contractors subject to both of these clauses.
Defense Federal Acquisition Regulation Supplement: Amendments Related to General Solicitations (DFARS Case 2018-D021)
Document Number: 2019-02527
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement sections of the National Defense Authorization Act for Fiscal Year 2018, which expand the definition of ``competitive procedures'' in 10 U.S.C. 2302 and extend the term and increase the dollar value under the contract authority for advanced development of initial or additional prototype units.
Defense Federal Acquisition Regulation Supplement: Exemption From Design-Build Selection Procedures (DFARS Case 2018-D011)
Document Number: 2019-02526
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule to amend the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2018 that provides an exemption from design-build selection procedures for contracts that exceed $4 million.
Defense Federal Acquisition Regulation Supplement: Antiterrorism Training Requirements for Contractors (DFARS Case 2017-D034)
Document Number: 2019-02525
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement the requirement for contractors to complete Level I antiterrorism awareness training.
Defense Federal Acquisition Regulation Supplement: Use of Commercial or Non-Government Standards (DFARS Case 2017-D014)
Document Number: 2019-02524
Type: Rule
Date: 2019-02-15
Agency: Defense Acquisition Regulations System, Department of Defense
DoD is issuing a final rule amending the Defense Federal Acquisition Regulation Supplement (DFARS) to implement a section of the National Defense Authorization Act for Fiscal Year 2017 by encouraging offerors to propose commercial or non-Government standards and industry-wide practices that meet the intent of military or Government- unique specifications and standards.
Trifloxystrobin; Pesticide Tolerances
Document Number: 2019-02523
Type: Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
This regulation establishes a tolerance for residues of trifloxystrobin in or on flax seed and amends an existing tolerance for aspirated grain fractions. Bayer CropScience requested these tolerances and amendments under the Federal Food, Drug, and Cosmetic Act (FFDCA).
National Organic Program; Proposed Amendments to the National List of Allowed and Prohibited Substances for April 2018 NOSB Recommendations (Crops and Handling)
Document Number: 2019-02518
Type: Proposed Rule
Date: 2019-02-15
Agency: Agricultural Marketing Service, Department of Agriculture
This proposed rule would amend the National List of Allowed and Prohibited Substances (National List) section of the United States Department of Agriculture's (USDA's) organic regulations to implement recommendations submitted to the Secretary of Agriculture (Secretary) by the National Organic Standards Board (NOSB). This rule proposes to add elemental sulfur for use as a molluscicide in organic crop production, add polyoxin D zinc salt to control fungal diseases in organic crop production, and reclassify magnesium chloride from an allowed synthetic to an allowed nonsynthetic ingredient in organic handling.
Olives Grown in California; Establish Procedures To Meet Via Electronic Communications
Document Number: 2019-02517
Type: Rule
Date: 2019-02-15
Agency: Agricultural Marketing Service, Department of Agriculture
This rule implements a recommendation from the California Olive Committee (Committee) to establish procedures to conduct meetings and voting using electronic means of communication.
Large Financial Institution Rating System; Regulations K and LL; Correction
Document Number: 2019-02516
Type: Rule
Date: 2019-02-15
Agency: Federal Reserve System, Agencies and Commissions
On November 21, 2018, the Board of Governors of the Federal Reserve System (Board) published a final rule in the Federal Register regarding the Large Financial Institution Rating System. That document included two typographical errors in ``Appendix AText of Large Financial Institution Rating System'' relating to the description of the conditionally meets expectation rating. This document corrects those typographical errors.
Marketing Order Regulating the Handling of Spearmint Oil Produced in the Far West; Salable Quantities and Allotment Percentages for the 2019-2020 Marketing Year
Document Number: 2019-02514
Type: Proposed Rule
Date: 2019-02-15
Agency: Agricultural Marketing Service, Department of Agriculture
This proposed rule invites comments on a recommendation from the Far West Spearmint Oil Administrative Committee (Committee) to establish salable quantities and producer allotments of Class 1 (Scotch) and Class 3 (Native) spearmint oil produced in Washington, Idaho, Oregon, and designated parts of Nevada and Utah (the Far West) for the 2019-2020 marketing year. This proposed rule would also remove references to past volume regulation no longer in effect.
List of Approved Spent Fuel Storage Casks: TN Americas LLC Standardized Advanced NUHOMS® System, Certificate of Compliance No. 1029, Amendment No. 4
Document Number: 2019-02492
Type: Rule
Date: 2019-02-15
Agency: Nuclear Regulatory Commission, Agencies and Commissions
The U.S. Nuclear Regulatory Commission (NRC) is confirming the effective date of March 12, 2019, for the direct final rule that was published in the Federal Register on December 27, 2018. This direct final rule amended the NRC's spent fuel storage regulations by revising the ``List of approved spent fuel storage casks'' to include Amendment No. 4 to Certificate of Compliance No. 1029 for the TN Americas LLC Standardized Advanced NUHOMS[supreg] Horizontal Modular Storage System.
Prohibiting Persons With Certain Criminal Convictions From Serving as Representative Payees
Document Number: 2019-02483
Type: Rule
Date: 2019-02-15
Agency: Social Security Administration, Agencies and Commissions
We are finalizing our proposed regulations on conducting background checks to prohibit persons convicted of certain crimes from serving as representative payees under the Social Security Act (Act), as required by the Strengthening Protections for Social Security Beneficiaries Act of 2018.
Special Local Regulation; Chesapeake Bay, Between Sandy Point and Kent Island, MD
Document Number: 2019-02466
Type: Proposed Rule
Date: 2019-02-15
Agency: Coast Guard, Department of Homeland Security
The Coast Guard proposes to establish temporary special local regulations for certain waters of the Chesapeake Bay. This action is necessary to provide for the safety of life on these navigable waters located between Sandy Point, Anne Arundel County, MD, and Kent Island, Queen Anne's County, MD, during a paddling event on June 1, 2019. In the case of inclement weather, the paddling event is scheduled for June 2, 2019. This proposed rulemaking would prohibit persons and vessels from being in the regulated area unless authorized by the Captain of the Port Maryland-National Capital Region or Coast Guard Patrol Commander. We invite your comments on this proposed rulemaking.
Safety Zone for Fireworks Displays; Upper Potomac River, Washington Channel, DC
Document Number: 2019-02465
Type: Rule
Date: 2019-02-15
Agency: Coast Guard, Department of Homeland Security
The Coast Guard is establishing a temporary safety zone for certain waters of the Upper Potomac River. This action is necessary to provide for the safety of life on these navigable waters of the Washington Channel adjacent to The Wharf DC, Washington, DC, for recurring fireworks displays from January 12, 2019, through December 31, 2019. This regulation prohibits persons and vessels from entering the safety zone unless authorized by the Captain of the Port Maryland-National Capital Region or a designated representative.
Airworthiness Directives; Pratt & Whitney Division (PW) Turbofan Engines
Document Number: 2019-02453
Type: Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We are adopting a new airworthiness directive (AD) for certain Pratt & Whitney Division (PW) PW4074, PW4074D, PW4077, PW4077D, PW4084D, PW4090, and PW4090-3 turbofan engines. This AD was prompted by an in-flight failure of a 1st-stage low-pressure compressor (LPC) blade. This AD requires initial and repetitive thermal acoustic imaging (TAI) inspections for cracks in certain 1st-stage LPC blades and removal of those blades that fail inspection. We are issuing this AD to address the unsafe condition on these products.
Fisheries of the Northeastern United States; Northeast Skate Complex; Framework Adjustment 6; Revised 2018-2019 Specifications
Document Number: 2019-02382
Type: Rule
Date: 2019-02-15
Agency: Department of Commerce, National Oceanic and Atmospheric Administration
NMFS approves and implements measures submitted by the New England Fishery Management Council in Framework Adjustment 6 to the Northeast Skate Complex Fishery Management Plan and revises the 2018- 2019 skate fishery specifications. This action is necessary to allow the skate wing total allowable landings to be achieved while minimizing the need to restrict fishing operations through incidental possession limits. This action intends to extend the directed fishing time for both the skate wing and bait fisheries.
Air Plan Disapproval; Wisconsin; Redesignation Request for the Wisconsin Portion of the Chicago-Naperville, Illinois-Indiana-Wisconsin Area to Attainment of the 2008 Ozone Standard
Document Number: 2019-02352
Type: Proposed Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
The Environmental Protection Agency (EPA) is proposing to disapprove an August 15, 2016, request from Wisconsin to redesignate the Wisconsin portion of the Chicago-Naperville, Illinois-Indiana- Wisconsin (IL-IN-WI) ozone nonattainment area (Chicago nonattainment area) to attainment of the 2008 ozone National Ambient Air Quality Standard (NAAQS or standard) because the area is violating the standard with 2015-2017 monitoring data. EPA is also proposing to disapprove Wisconsin's maintenance plans and Motor Vehicle Emissions Budgets (MVEBs), submitted with the State's redesignation request, since approval of these State Implementation Plan (SIP) components is contingent on attainment of the ozone standard. The Chicago area includes Cook, DuPage, Kane, Lake, McHenry and Will Counties, Aux Sable and Goose Lake Townships in Grundy County, and Oswego Township in Kendall County in Illinois; Lake and Porter Counties in Indiana; and the area east of and including the corridor of Interstate 94 in Kenosha County, Wisconsin.
Revision of Sheboygan County, Wisconsin Nonattainment Designation for the 1997 and 2008 Ozone Standards and Clean Data Determination for the 2008 Ozone Standards
Document Number: 2019-02350
Type: Proposed Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
The Environmental Protection Agency (EPA) is proposing to approve a request from Wisconsin to revise the designation for the Sheboygan nonattainment area for the 1997 primary and secondary ozone National Ambient Air Quality Standards (NAAQS) and the 2008 primary and secondary ozone NAAQS, by splitting the existing area into two distinct nonattainment areas that together cover the identical geographic area of the existing nonattainment area. This revised designation is supported by air quality data, emissions and emissions-related data, meteorology, geography/topography, and jurisdictional boundaries. Both areas would retain their nonattainment designation and Moderate classification. In this action, EPA is also proposing to make a clean data determination for one of the two separate areas for the 2008 ozone NAAQS.
Airworthiness Directives; Viking Air Limited (Type Certificate Previously Held by Bombardier, Inc.; Canadair Limited) Airplanes
Document Number: 2019-02162
Type: Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We are superseding Airworthiness Directive (AD) 2013-11-03, which applied to certain Viking Air Limited Model CL-215-1A10 and CL- 215-6B11 (CL-215T Variant) airplanes. AD 2013-11-03 required repetitive detailed inspections for cracking of the left-hand (LH) and right-hand (RH) wing lower skin, and repair if necessary. This AD requires repetitive borescope inspections of the LH and RH wing lower skin and repetitive eddy current inspections of the LH and RH wing front and rear lower spar caps. This AD was prompted by reports of a fractured wing lower rear spar cap and reinforcing strap and a report of cracking of the wing lower skin and rear spar. We are issuing this AD to address the unsafe condition on these products.
Airworthiness Directives; Airbus SAS Airplanes
Document Number: 2019-02161
Type: Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We are adopting a new airworthiness directive (AD) for certain Airbus SAS Model A330-200, -200F, and -300 series airplanes. This AD was prompted by a revision of the airworthiness limitations section (ALS), which provides new and more restrictive maintenance requirements and airworthiness limitations for airplane structures and systems. This AD requires revising the existing maintenance or inspection program to incorporate new maintenance requirements and airworthiness limitations. We are issuing this AD to address the unsafe condition on these products.
Airworthiness Directives; The Boeing Company Airplanes
Document Number: 2019-02160
Type: Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We are adopting a new airworthiness directive (AD) for all The Boeing Company Model 787 series airplanes. This AD was prompted by a report of an uncommanded descent and turn that occurred after an inflight switch to the spare flight management function (FMF). This AD requires an inspection of the flight management system (FMS) to determine if certain operational program software (OPS) is installed and installation of new FMS OPS and a software check if necessary. For certain airplanes, this AD also requires concurrent actions. We are issuing this AD to address the unsafe condition on these products.
Airworthiness Directives; The Boeing Company Airplanes
Document Number: 2019-02159
Type: Rule
Date: 2019-02-15
Agency: Federal Aviation Administration, Department of Transportation
We are adopting a new airworthiness directive (AD) for certain The Boeing Company Model 777-200, -200LR, -300, and -300ER series airplanes. This AD was prompted by a report that showed a non- compliance exists on some in-service galley attendant seat fitting installations. The non-compliance could result in flight attendant seats failing in a high-G crash. This AD requires modifications for galley mounted seat fittings. We are issuing this AD to address the unsafe condition on these products.
Requirement of U.S. Licensed Attorney for Foreign Trademark Applicants and Registrants
Document Number: 2019-02154
Type: Proposed Rule
Date: 2019-02-15
Agency: Department of Commerce, Patent and Trademark Office
The United States Patent and Trademark Office (USPTO or Office) proposes to amend the Rules of Practice in Trademark Cases and the rules regarding Representation of Others Before the United States Patent and Trademark Office to require applicants, registrants, or parties to a proceeding whose domicile or principal place of business is not located within the United States (U.S.) or its territories (hereafter foreign applicants, registrants, or parties) to be represented by an attorney who is an active member in good standing of the bar of the highest court of a state in the U.S. (including the District of Columbia and any Commonwealth or territory of the U.S.). A requirement that such foreign applicants, registrants, or parties be represented by a qualified U.S. attorney will instill greater confidence in the public that U.S. registrations that issue to foreign applicants are not subject to invalidation for reasons such as improper signatures and use claims and enable the USPTO to more effectively use available mechanisms to enforce foreign applicant compliance with statutory and regulatory requirements in trademark matters.
Air Plan Approval; Connecticut; Prevention of Significant Deterioration; Revisions to the Prevention of Significant Deterioration Greenhouse Gas Permitting Authority
Document Number: 2019-02111
Type: Rule
Date: 2019-02-15
Agency: Environmental Protection Agency
The Environmental Protection Agency (EPA) is approving a State Implementation Plan (SIP) revision submitted by the State of Connecticut. This revision affects provisions applicable to greenhouse gases (GHGs) in the EPA's Prevention of Significant Deterioration (PSD) permit program. Connecticut requested the revision in response to the June 23, 2014, U.S. Supreme Court's decision in Utility Air Regulatory Group (UARG) v. EPA and the April 10, 2015, Amended Judgment by the United States Court of Appeals for the District of Columbia Circuit (D.C. Circuit) in Coalition for Responsible Regulation v. EPA. The intended effect of this action is to clarify that the State's PSD rules do not require a source to obtain a permit solely because the source emits or has the potential to emit (PTE) GHGs: Above the PSD applicability thresholds for new major sources or for which there is a significant emissions increase from a modification. This action is being taken in accordance with the Clean Air Act.
VA Claims and Appeals Modernization
Document Number: 2019-01840
Type: Rule
Date: 2019-02-15
Agency: Department of Veterans Affairs
The Department of Veterans Affairs (VA) is correcting a final rule regarding its claims adjudication, appeals, and Rules of Practice of the Board of Veterans' Appeals (Board) regulations. This correction addresses minor technical errors in the published final rule.
Jurisdictional Separations and Referral to the Federal-State Joint Board
Document Number: 2019-01721
Type: Rule
Date: 2019-02-15
Agency: Federal Communications Commission, Agencies and Commissions
In this document, the Commission amends its part 36 jurisdictional separations rules by extending for up to six years the freeze of separations category relationships and allocation factors that it originally adopted in 2001. As a result, the freeze will remain in effect until the earlier of December 31, 2024, or the completion of comprehensive reform of the part 36 jurisdictional separations rules. The Commission also amends its part 36 jurisdictional separations rules by providing rate-of-return carriers that elected to freeze their separations category relationships in 2001 a one-time opportunity to unfreeze and update those relationships so that they can categorize their costs based on current circumstances.
Risk Mitigation Techniques for Uncleared Security-Based Swaps
Document Number: 2018-27979
Type: Proposed Rule
Date: 2019-02-15
Agency: Securities and Exchange Commission, Agencies and Commissions
The Securities and Exchange Commission (``SEC'' or ``Commission'') is proposing rules that would require the application of specific risk mitigation techniques to portfolios of security-based swaps not submitted for clearing. In particular, the proposal would establish requirements for each registered security-based swap dealer (``SBS dealer'') and each registered major security-based swap participant (``major SBS participant'') (each SBS dealer and each major SBS participant hereafter referred to as an ``SBS Entity'' and together referred to as ``SBS Entities'') with respect to, among other things, reconciling outstanding security-based swaps with applicable counterparties on a periodic basis, engaging in certain forms of portfolio compression exercises, as appropriate, and executing written security-based swap trading relationship documentation with each of its counterparties prior to, or contemporaneously with, executing a security-based swap transaction. In addition, the Commission is proposing an interpretation to address the application of the portfolio reconciliation, portfolio compression, and trading relationship documentation requirements to cross-border security-based swap activities and is proposing to amend Rule 3a71-6 to address the potential availability of substituted compliance in connection with those requirements. Moreover, the proposed rules would make corresponding changes to the recordkeeping, reporting, and notification requirements applicable to SBS Entities. Finally, the Commission is requesting comment on how certain aspects of the proposed rules address how a security-based swap data repository (``SDR'') could potentially satisfy its obligation to verify the terms of each security-based swap with both counterparties to the transaction.
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