This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents. Prices of

new books are listed in the first FEDERAL

REGISTER issue of each week.

Rules and Regulations Federal Register

35289 

Vol. 75, No. 119 

Tuesday, June 22, 2010 

DEPARTMENT OF COMMERCE 

Bureau of Economic Analysis 

15 CFR Part 801 

[Docket No. 0908131235–0248–02] 

RIN 0691–AA73 

International Services Surveys: BE– 

180, Benchmark Survey of Financial 

Services Transactions Between U.S. 

Financial Services Providers and 

Foreign Persons 

AGENCY: Bureau of Economic Analysis, 

Commerce. 

ACTION: Final rule. 

SUMMARY: This final rule amends 

regulations of the Bureau of Economic 

Analysis, Department of Commerce 

(BEA) to set forth the reporting 

requirements for the BE–180, 

Benchmark Survey of Financial Services 

Transactions between U.S. Financial 

Services Providers and Foreign Persons. 

The BE–180 replaces a similar but more 

limited survey, the BE–80, Benchmark 

Survey of Financial Services 

Transactions Between U.S. Financial 

Services Providers and Unaffiliated 

Foreign Persons. The agency form 

number and survey title are being 

changed because the survey will include 

the collection of data on transactions 

with affiliated foreigners and 

unaffiliated foreigners using the same 

survey instrument. The BE–180 survey 

will be conducted once every five years 

beginning with fiscal year 2009. 

The BE–180 survey covers financial 

services transactions with foreign 

persons. In nonbenchmark years, the 

estimates for these transactions will be 

derived from the sample data reported 

on BEA’s follow-on survey (BE–185, 

Quarterly Survey of Financial Services 

Transactions between U.S. Financial 

Services Providers and Foreign 

Persons). 

The data collected by the BE–180 will 

be used by BEA to estimate the financial 

services component of the U.S. 

International Transactions Accounts 

and other economic accounts compiled 

by BEA. The data also are needed by the 

government to monitor U.S. exports and 

imports of financial services; analyze 

their impact on the U.S. and foreign 

economies; support U.S. international 

trade policy on financial services; and 

assess and promote U.S. 

competitiveness in international trade 

in services. In addition, they will 

improve the ability of U.S. businesses to 

identify and evaluate market 

opportunities. 

DATES: The final rule will be effective 

July 22, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Chris Emond, Chief, Special Surveys 

Branch, Balance of Payments Division 

(BE–50), Bureau of Economic Analysis, 

U.S. Department of Commerce, 

Washington, DC 20230; e-mail 

Christopher.Emond@bea.gov; or phone 

(202) 606–9826. 

SUPPLEMENTARY INFORMATION: In the 

March 9, 2010 Federal Register (75 FR 

10704), BEA published a notice of 

proposed rulemaking to amend 15 CFR 

Part 801 to set forth the reporting 

requirements for the BE–180, 

Benchmark Survey of Financial Services 

Transactions between U.S. Financial 

Services Providers and Foreign Persons. 

No comments were received on the 

proposed rule. Thus, the proposed rule 

is adopted without change. 

Description of Changes 

The BE–180 survey is a mandatory 

survey and will be conducted by BEA 

every five years, with the initial survey 

covering fiscal year 2009, pursuant to 

the authority provided in the 

International Investment and Trade in 

Services Survey Act (22 U.S.C. 3101– 

3108), hereinafter, ‘‘the Act’’ and by 

Section 5408 of the Omnibus Trade and 

Competitiveness Act of 1988 (15 U.S.C. 

4908). For the initial survey, BEA will 

send the survey to potential respondents 

in July of 2010; responses will be due 

September 30, 2010. 

The BE–180 will replace a similar but 

more limited survey, the BE–80, 

Benchmark Survey of Financial Services 

Transactions Between U.S. Financial 

Services Providers and Unaffiliated 

Foreign Persons, unlike the BE–80, the 

BE–180 will include the collection of 

data on transactions with both affiliated 

and unaffiliated foreigners. The BE–180 

survey is intended to capture data on 

financial services transactions with 

foreign persons. In nonbenchmark years, 

the estimates for these transactions 

would be derived from the sample data 

reported on BEA’s follow-on quarterly 

survey (BE–185, Quarterly Survey of 

Financial Services Transactions 

between U.S. Financial Services 

Providers and Foreign Persons). 

The survey will be mandatory for 

those U.S. financial companies that 

engage in the financial services 

transactions in amounts that exceed the 

exemption level. For the BE–180, the 

covered financial services transactions 

are: (1) Brokerage services related to 

equity transactions, and (2) other 

brokerage services; (3) underwriting and 

private placement services; (4) financial 

management services; (5) credit-related 

services, except credit card services, and 

(6) credit card services; (7) financial 

advisory and custody services; (8) 

securities lending services; (9) 

electronic funds transfer services; and 

(10) other financial services. The 

exemption level for the survey is total 

sales or purchases of $3 million during 

the reporting period, for the above ten 

categories combined. Financial 

companies that exceed this threshold 

must supply data on the amount of their 

financial transactions for each category, 

disaggregated by country and by its 

relationship to the foreign transactor 

(foreign affiliate, foreign parent group or 

unaffiliated). In addition, this survey 

will collect the following 

subcomponents of financial 

management receipts at the global level: 

Mutual funds, pension funds, exchangetraded funds, private equity funds, 

corporate portfolio, individual portfolio, 

hedge funds, and trusts. 

U.S. financial companies that are 

exempt from the survey’s reporting 

requirements because they do not meet 

the reporting threshold are requested to 

provide, on a voluntary basis, estimates 

of their covered financial services 

transactions. Any U.S. financial 

company that receives the BE–180 

survey form from BEA, but is not 

required to report data because it is 

exempt under the regulations and 

chooses not to report data voluntarily, 

must file an exemption claim by 

completing pages one through five of 

the survey. This requirement is 

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35290 Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 

necessary to ensure efficient 

administration of the Act by eliminating 

unnecessary follow-up contact. If a U.S. 

financial company does not receive the 

BE–180 survey form and is not 

otherwise required to report under these 

regulations, then the company is not 

required to take any action. 

Survey Background 

The Bureau of Economic Analysis 

(BEA), U.S. Department of Commerce, 

will conduct the survey under the 

International Investment and Trade in 

Services Survey Act (22 U.S.C. 3101– 

3108), and Section 5408 of the Omnibus 

Trade and Competitiveness Act of 1988 

(15 U.S.C. 4908). Section 4(a) of the 

International Investment and Trade in 

Services Survey Act provides that the 

President shall, to the extent he deems 

necessary and feasible, conduct a 

regular data collection program to 

secure current information related to 

international investment and trade in 

services and publish for the use of the 

general public and United States 

Government agencies periodic, regular, 

and comprehensive statistical 

information collected pursuant to this 

subsection. 

In Section 3 of Executive Order 

11961, as amended by Executive Orders 

12318 and 12518, the President 

delegated the responsibilities under the 

Act for performing functions concerning 

international trade in services to the 

Secretary of Commerce, who has 

redelegated them to BEA. 

Data from the survey are needed to 

monitor U.S. exports and imports of 

financial services; analyze their impact 

on the U.S. and foreign economies; 

compile and improve the U.S. 

international transactions, national 

income and product, and input-output 

accounts; support U.S. international 

trade policy on financial services; assess 

and promote U.S. competitiveness in 

international trade in services; and 

improve the ability of U.S. businesses to 

identify and evaluate market 

opportunities. 

Executive Order 12866 

This final rule has been determined to 

be not significant for purposes of E.O. 

12866. 

Executive Order 13132 

This final rule does not contain 

policies with Federalism implications 

sufficient to warrant preparation of a 

Federalism Assessment under E.O. 

13132. 

Paperwork Reduction Act 

The collection-of-information 

requirement in this final rule has been 

approved by the Office of Management 

and Budget (OMB) under control 

number 0608–0062 pursuant to the 

requirements of the Paperwork 

Reduction Act. 

Notwithstanding any other provisions 

of the law, no person is required to 

respond to, nor shall any person be 

subject to a penalty for failure to comply 

with, a collection of information subject 

to the requirements of the Paperwork 

Reduction Act unless that collection 

displays a currently valid Office of 

Management and Budget Control 

Number. The collection will display this 

number. 

The benchmark survey is expected to 

result in the filing of reports from 

approximately 8,000 respondents. 

Approximately 1,000 respondents will 

report mandatory or voluntary data on 

the survey and approximately 7,000 will 

file exemption claims. The respondent 

burden for this collection of information 

will vary from one respondent to 

another, but is estimated to average ten 

hours, including time for reviewing the 

instructions, searching existing data 

sources, gathering and maintaining the 

data needed, and completing and 

reviewing the collection of information 

for the respondents that file mandatory 

or voluntary data, and two hours for 

exemption claim responses. Thus, the 

total respondent burden for the survey 

is estimated at 24,000 hours. 

Written comments regarding the 

burden-hour estimates or other aspects 

of the collection-of-information 

requirements contained in this final rule 

should be sent to: (1) The Bureau of 

Economic Analysis via mail to U.S. 

Department of Commerce, Bureau of 

Economic Analysis, Chris Emond, Chief, 

Special Surveys Branch (BE–50) 

Washington, DC 20230, via e-mail at 

Christopher.Emond@bea.gov, or by FAX 

at 202–606–5318; and (2) the Office of 

Management and Budget, Office of 

Information and Regulatory Affairs, 

Control Number 0608–0062, PRA Desk 

Officer for BEA, via e-mail at 

pbugg@omb.eop.gov, or by FAX at 202– 

395–7245. 

Regulatory Flexibility Act 

The Chief Counsel for Regulation, 

Department of Commerce, has certified 

to the Chief Counsel for Advocacy, 

Small Business Administration, under 

provisions of the Regulatory Flexibility 

Act (5 U.S.C. 605(b)), that this rule will 

not have a significant economic impact 

on a substantial number of small 

entities. The factual basis for this 

certification was published with the 

proposed rule and is not repeated here. 

No comments were received regarding 

the economic impact of this rule. As a 

result, a final regulatory flexibility 

analysis is not required and none was 

prepared. 

List of Subjects in 15 CFR Part 801 

International transactions, Economic 

statistics, Foreign trade, Penalties, 

Reporting and recordkeeping 

requirements. 

Dated: June 2, 2010. 

J. Steven Landefeld, 

Director, Bureau of Economic Analysis. 

■ For the reasons set forth in the 

preamble, BEA amends 15 CFR Part 801, 

as follows: 

PART 801—SURVEY OF 

INTERNATIONAL TRADE IN SERVICES 

BETWEEN U.S. AND FOREIGN 

PERSONS 

■ 1. The authority citation for 15 CFR 

Part 801 continues to read as follows: 

Authority: 5 U.S.C. 301; 15 U.S.C. 4908; 22 

U.S.C. 3101–3108; and E.O. 11961, 3 CFR, 

1977 Comp., p.86, as amended by E.O. 12318, 

3 CFR, 1981 Comp., p. 173, and E.O. 12518, 

3 CFR, 1985 Comp., p 348. 

■ 2. Amend § 801.9 by revising 

paragraph (a) to read as follows: 

§ 801.9 Reports required. 

(a) Benchmark surveys. Section 4(a)(4) 

of the Act (22 U.S.C. 3103) provides that 

benchmark surveys of trade in services 

between U.S. and foreign persons be 

conducted, but not more frequently than 

every 5 years. General reporting 

requirements, exemption levels, and the 

years of coverage for the BE–120 survey 

may be found in § 801.10. General 

reporting requirements, exemption 

levels, and the years of coverage for the 

BE–140 survey may be found in 

§ 801.11. More detailed instructions are 

given on the forms themselves; and 

general reporting requirements, 

exemption levels, and the years for 

coverage for the BE–180 survey may be 

found in § 801.12. 

* * * * * 

§ 801.11 [Removed] 

■ 3. Remove § 801.11. 

§ 801.12 [Redesignated as § 801.11] 

■ 4. Redesignate § 801.12 as § 801.11. 

■ 5. Add new § 801.12 to read as 

follows: 

§ 801.12 Rules and regulations for the BE– 

180, Benchmark Survey of Financial 

Services Transactions between U.S. 

Financial Services Providers and Foreign 

Persons. 

(a) The BE–180, Benchmark Survey of 

Financial Services Transactions 

between U.S. Financial Services 

Providers and Foreign Persons, will be 

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Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 35291 

conducted beginning with fiscal year 

2009 and every fifth year thereafter. 

More detailed instructions are given on 

the report forms and instructions. 

(b) Who must report- (1) Mandatory 

reporting. A report is required from each 

U.S. person that is a financial services 

provider or intermediary, or whose 

consolidated U.S. enterprise includes a 

separately organized subsidiary, or part, 

that is a financial services provider or 

intermediary, and that had transactions 

(either sales or purchases) directly with 

foreign persons in all financial services 

combined in excess of $3,000,000 

during its fiscal year covered by the 

survey on an accrual basis. The 

$3,000,000 threshold should be applied 

to financial services transactions with 

foreign persons by all parts of the 

consolidated U.S. enterprise combined 

that are financial services providers or 

intermediaries. Because the $3,000,000 

threshold applies separately to sales and 

purchases, the mandatory reporting 

requirement may apply only to sales, 

only to purchases, or to both. 

(i) The determination of whether a 

U.S. financial services provider or 

intermediary is subject to this 

mandatory reporting requirement may 

be based on the judgment of 

knowledgeable persons in a company 

who can identify reportable transactions 

on a recall basis, with a reasonable 

degree of certainty, without conducting 

a detailed manual records search. 

(ii) Reporters that file pursuant to this 

mandatory reporting requirement must 

provide data on total sales and/or 

purchases of each of the covered types 

of financial services transactions and 

must disaggregate the totals by country 

and by relationship to the foreign 

transactor (foreign affiliate, foreign 

parent group, or unaffiliated). 

(2) Voluntary reporting. If, during the 

fiscal year covered, sales or purchases of 

financial services by a firm that is a 

financial services provider or 

intermediary, or by a firm’s subsidiaries, 

or parts, combined that are financial 

services providers or intermediaries, are 

$3,000,000 or less, the U.S. person is 

requested to provide an estimate of the 

total for each type of service. However, 

submission of this information is 

voluntary. Because the $3,000,000 

threshold applies separately to sales and 

purchases, this voluntary reporting 

option may apply to sales, to purchases, 

or to both. 

(3) Exemption claims. Entities that 

receive the BE–180 survey but are not 

subject to the mandatory reporting 

requirements and choose not to report 

data voluntarily must file an exemption 

claim by completing pages one through 

five of the BE–180 survey andreturning 

them to BEA. 

(c) BE–180 definition of financial 

services provider. The definition of 

financial services provider used for this 

survey is identical to the definition of 

the term as used in the North American 

Industry Classification System, United 

States, 2007, Sector 52–Finance and 

Insurance, and holding companies that 

own or influence, and are principally 

engaged in making management 

decisions for these firms (part of Sector 

55–Management of Companies and 

Enterprises). For example, companies 

and/or subsidiaries and other separable 

parts of companies in the following 

industries are defined as financial 

services providers: Depository credit 

intermediation and related activities 

(including commercial banking, savings 

institutions, credit unions, and other 

depository credit intermediation); nondepository credit intermediation 

(including credit card issuing, sales 

financing, and other non-depository 

credit intermediation); activities related 

to credit intermediation (including 

mortgage and nonmortgage loan brokers, 

financial transactions processing, 

reserve, and clearinghouse activities, 

and other activities related to credit 

intermediation); securities and 

commodity contracts intermediation 

and brokerage (including investment 

banking and securities dealing, 

securities brokerage, commodity 

contracts and dealing, and commodity 

contracts brokerage); securities and 

commodity exchanges; other financial 

investment activities (including 

miscellaneous intermediation, portfolio 

management, investment advice, and all 

other financial investment activities); 

insurance carriers; insurance agencies, 

brokerages, and other insurance related 

activities; insurance and employee 

benefit funds (including pension funds, 

health and welfare funds, and other 

insurance funds); other investment 

pools and funds (including open-end 

investment funds, trusts, estates, and 

agency accounts, real estate investment 

trusts, and other financial vehicles); and 

holding companies that own, or 

influence the management decisions of, 

firms principally engaged in the 

aforementioned activities. 

(d) Covered types of services. The BE– 

180 survey covers the following types of 

financial services transactions (sales or 

purchases) between U.S. financial 

companies and foreign persons: 

Brokerage services related to equity 

transactions; other brokerage services; 

underwriting and private placement 

services; financial management services; 

credit-related services, except credit 

card services; credit card services; 

financial advisory and custody services; 

securities lending services; electronic 

funds transfer services; and other 

financial services. 

[FR Doc. 2010–14996 Filed 6–21–10; 8:45 am] 

BILLING CODE 3510–06–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 30 

Foreign Futures and Options 

Transactions 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Order. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission or 

CFTC) is granting an exemption to firms 

designated by Bursa Malaysia 

Derivatives Berhad (Bursa Derivatives), 

a subsidiary of Bursa Malaysia Berhad 

(Bursa Malaysia), from the application 

of certain of the Commission’s foreign 

futures and options regulations based 

upon substituted compliance with 

certain comparable regulatory and selfregulatory requirements of a foreign 

regulatory authority consistent with 

conditions specified by the 

Commission, as set forth herein. This 

Order is issued pursuant to Commission 

Regulation 30.10, which permits 

persons to file a petition with the 

Commission for exemption from the 

application of certain of the Regulations 

set forth in Part 30 and authorizes the 

Commission to grant such an exemption 

if such action would not be otherwise 

contrary to the public interest or to the 

purposes of the provision from which 

exemption is sought. 

DATES: Effective Date: June 22, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Andrew V. Chapin., Associate Director 

or Andrea Musalem, Attorney-Advisor, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, 1155 21st Street, NW., 

Washington, DC 20581. Telephone: 

(202) 418–5430 or (202) 418–5167. 

E-mail: achapin@cftc.gov or 

amusalem@cftc.gov. 

SUPPLEMENTARY INFORMATION: The 

Commission has issued the following 

Order: 

Order Under CFTC Regulation 30.10 

Exempting Firms Designated by Bursa 

Malaysia Derivatives (Bursa Derivatives) 

From the Application of Certain of the 

Foreign Futures and Options 

Regulations the Later of the Date of 

Publication of the Order Herein in the 

Federal Register or After Filing of 

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