Commodity Futures Trading Commission April 2013 – Federal Register Recent Federal Regulation Documents

The Commission is amending its regulations to reflect the reassignment of responsibilities, including delegations of authority, resulting from its recent reorganization of Commission staff. Effective October 9, 2011, the Commission abolished the Division of Clearing and Intermediary Oversight and reassigned its staff and responsibilities to the newly established Division of Swap Dealer and Intermediary Oversight and Division of Clearing and Risk.

The Commission is revising its regulations to add to its delegation of authority to staff respecting the disclosure of information to self-regulatory organizations newly established in the Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'') and not previously enumerated in the relevant regulations.

The Commodity Futures Trading Commission (CFTC) is correcting a final rule published in the Federal Register of September 11, 2012 (77 FR 55904). That rule, 17 CFR 23.505, took effect on November 13, 2012. Subsequently, the CFTC published final rules in the Federal Register of December 13, 2012 (77 FR 74284), that re-codified the Commission regulation at 17 CFR 39.6 as a new Commission regulation at 17 CFR 50.50. This correction amends cross-references in 17 CFR 23.505 to conform them with the final rules published on December 13, 2012.

The Office of Consumer Outreach (OCO), Commodity Futures Trading Commission (CFTC), invites public comment on its proposed Information Collection Request (ICR), in compliance with the Paperwork Reduction Act (44 U.S.C. 3501 et seq.), for the Generic Clearance for the Collection of Qualitative Feedback on Agency Service Delivery. The ICR has been submitted to the Office of Management and Budget (OMB) for approval, and describes the nature of the information collection and its expected costs and burden.

The Commodity Futures Trading Commission (Commission or CFTC) is adopting regulations to make clear that each swap dealer (SD), major swap participant (MSP), and other Commission registrant with whom an associated person (AP) is associated is required to supervise the AP and is jointly and severally responsible for the activities of the AP with respect to customers common to it and any other SD, MSP or other Commission registrant.

The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is issuing a final order (``Final Order'') in response to a consolidated petition (``Petition'') \1\ from certain regional transmission organizations (``RTOs'') and independent system operators (``ISOs'') (collectively, ``Requesting Parties'') to exempt specified transactions (``Covered Transactions'') from the provisions of the Commodity Exchange Act (``CEA'' or ``Act''),\2\ and Commission regulations. The Final Order exempts contracts, agreements, and transactions for the purchase or sale of the limited electric energy- related products that are specifically described within the Final Order from the provisions of the CEA and Commission regulations, with the exception of the Commission's general anti-fraud and anti-manipulation authority, and scienter-based prohibitions, under CEA sections 2(a)(1)(B), 4(d), 4b, 4c(b), 4o, 4s(h)(1)(A), 4s(h)(4)(A), 6(c), 6(d), 6(e), 6c, 6d, 8, 9, and 13 of the Act and any implementing regulations promulgated under these sections including, but not limited to Commission regulations 23.410(a) and (b), 32.4, and part 180. To be eligible for the exemption contained in the Final Order, the contract, agreement, or transaction must be offered or entered into in a market administered by a Requesting Party pursuant to that Requesting Party's tariff, rate schedule, or protocol (collectively, ``Tariff''), and the relevant Tariff must have been approved or permitted to have taken effect by either the Federal Energy Regulatory Commission (``FERC'') or the Public Utility Commission of Texas (``PUCT''), as applicable. In addition, the contract, agreement, or transaction must be entered into by persons who are ``appropriate persons,'' as defined in sections 4(c)(3)(A) through (J) of the Act,\3\ ``eligible contract participants,'' as defined in section 1a(18) of the Act and Commission regulations,\4\ or persons who are in the business of: (i) Generating, transmitting, or distributing electric energy, or (ii) providing electric energy services that are necessary to support the reliable operation of the transmission system. The Final Order also extends to any person or class of persons offering, entering into, rendering advice, or rendering other services with respect to the Covered Transactions. Finally, the Final Order is subject to other conditions set forth therein. Authority for issuing the exemption is found in section 4(c)(6) of the Act.\5\