Federal Register / Vol. 75, No. 231 / Thursday, December 2, 2010 / Proposed Rules 75159 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–1163; Directorate 

Identifier 2009–NM–233–AD] 

RIN 2120–AA64 

Airworthiness Directives; 328 Support 

Services GmbH (Type Certificate 

Previously Held by AvCraft Aerospace 

GmbH; Fairchild Dornier GmbH; 

Dornier Luftfahrt GmbH) Model 328– 

100 and –300 Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), DOT. 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above that would 

supersede an existing AD. This 

proposed AD results from mandatory 

continuing airworthiness information 

(MCAI) originated by an aviation 

authority of another country to identify 

and correct an unsafe condition on an 

aviation product. The MCAI describes 

the unsafe condition as: 

During a routine inspection, cracks have 

been found on an aeroplane at the lower 

wing panel rear trailing edge inboard of flap 

lever arm 1 (rib 5). A subsequent inspection 

of the other aeroplanes in that operator’s fleet 

revealed several more aeroplanes with cracks 

at the same location. This condition, if not 

corrected, could lead to structural failure of 

the affected wing panel, possibly resulting in 

the wing separating from the airplane with 

consequent loss of control. 

* * * * * 

The proposed AD would require 

actions that are intended to address the 

unsafe condition described in the MCAI. 

DATES: We must receive comments on 

this proposed AD by January 18, 2011. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

http://www.regulations.gov. Follow the 

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–140, 1200 New Jersey Avenue, SE., 

Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, M– 

30, West Building Ground Floor, Room 

W12–40, 1200 New Jersey Avenue, SE., 

Washington, DC, between 9 a.m. and 

5 p.m., Monday through Friday, except 

Federal holidays. 

For service information identified in 

this proposed AD, contact 328 Support 

Services GmbH, Global Support Center, 

P.O. Box 1252, D–82231 Wessling, 

Federal Republic of Germany; telephone 

+49 8153 88111 6666; fax +49 8153 

88111 6565; e-mail 

gsc.op@328support.de; Internet http:// 

www.328support.de. You may review 

copies of the referenced service 

information at the FAA, Transport 

Airplane Directorate, 1601 Lind 

Avenue, SW., Renton, Washington. For 

information on the availability of this 

material at the FAA, call 425–227–1221. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Operations office between 9 a.m. 

and 5 p.m., Monday through Friday, 

except Federal holidays. The AD docket 

contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Operations 

office (telephone (800) 647–5527) is in 

the ADDRESSES section. Comments will 

be available in the AD docket shortly 

after receipt. 

FOR FURTHER INFORMATION CONTACT: Tom 

Rodriguez, Aerospace Engineer, 

International Branch, ANM–116, 

Transport Airplane Directorate, FAA, 

1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone 

(425) 227–1137; fax (425) 227–1149. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2010–1163; Directorate Identifier 

2009–NM–233–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD based on those comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

On June 3, 2008, we issued AD 2008– 

10–51, Amendment 39–15535 (73 FR 

30752, May 29, 2008). That AD required 

actions intended to address an unsafe 

condition on the products listed above. 

Since we issued AD 2008–10–51, 

additional inspections and a 

modification have been developed to 

address the onset of cracks in the 

affected wing panel. The European 

Aviation Safety Agency (EASA), which 

is the Technical Agent for the Member 

States of the European Community, has 

issued Airworthiness Directive 2009– 

0194, dated September 1, 2009 (referred 

to after this as ‘‘the MCAI’’), to correct 

an unsafe condition for the specified 

products. The MCAI states: 

During a routine inspection, cracks have 

been found on an aeroplane at the lower 

wing panel rear trailing edge inboard of flap 

lever arm 1 (rib 5). A subsequent inspection 

of the other aeroplanes in that operator’s fleet 

revealed several more aeroplanes with cracks 

at the same location. This condition, if not 

corrected, could lead to structural failure of 

the affected wing panel, possibly resulting in 

the wing separating from the airplane with 

consequent loss of control. 

To correct this unsafe condition, EASA 

issued Emergency AD 2008–0087–E [dated 

May 8, 2008] to require detailed visual 

inspections (DVI) of both the left (LH) and 

right (RH) wing panel rear trailing edge 

around rib 3 and rib 5 and a subsequent Eddy 

Current inspection (NDI) [non-destructive 

inspection] of the same area to detect cracks, 

follow-up repair actions when cracks are 

found, and the reporting of all findings. The 

TC [type certificate] holder has now 

developed a modification, consisting of the 

cold expansion of the former lower wing 

panel CAMLOC holes together with the 

installation of new attachment material that 

will prevent the onset of cracks in the 

affected wing panel. 

For the reasons described above, this 

[EASA] AD retains the inspection and repair 

requirements of AD 2008–0087–E, which is 

superseded, adds repetitive inspections and 

a requirement to modify both the LH and RH 

wing panel rear trailing edges from rib 3 to 

rib 9. Modification does not constitute 

terminating action for the new repetitive 

inspection requirements of this AD. 

The new inspections are repetitive 

eddy current inspections. The 

modification includes cold expansion of 

the former lower wing panel CAMLOC 

holes and installation of new 

attachment material. You may obtain 

further information by examining the 

MCAI in the AD docket. 

Relevant Service Information 

328 Support Services GmbH has 

issued Alert Service Bulletins ASB– 

328–57–037 and ASB–328J–57–015, 

both Revision 2, both dated May 20, 

2008. 328 Support Services GmbH has 

also issued Service Bulletins SB–328– 

57–481 and SB–328J–57–230, both 

Revision 1, both dated October 15, 2009. 

The actions described in this service 

information are intended to correct the 

unsafe condition identified in the 

MCAI. 

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75160 Federal Register / Vol. 75, No. 231 / Thursday, December 2, 2010 / Proposed Rules 

FAA’s Determination and Requirements 

of This Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with the State of 

Design Authority, we have been notified 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all pertinent 

information and determined an unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Differences Between This AD and the 

MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have proposed 

different actions in this AD from those 

in the MCAI in order to follow FAA 

policies. Any such differences are 

highlighted in a NOTE within the 

proposed AD. 

Costs of Compliance 

Based on the service information, we 

estimate that this proposed AD would 

affect about 49 products of U.S. registry. 

The actions that are required by AD 

2008–10–51 and retained in this 

proposed AD take about 2 work-hours 

per product, at an average labor rate of 

$85 per work hour. Required parts cost 

about $0 per product. Based on these 

figures, the estimated cost of the 

currently required actions is $170 per 

product. 

We estimate that it would take about 

8 work-hours per product to comply 

with the new basic requirements of this 

proposed AD. The average labor rate is 

$85 per work-hour. Required parts 

would cost about $11,600 per product. 

Where the service information lists 

required parts costs that are covered 

under warranty, we have assumed that 

there will be no charge for these costs. 

As we do not control warranty coverage 

for affected parties, some parties may 

incur costs higher than estimated here. 

Based on these figures, we estimate the 

cost of the proposed AD on U.S. 

operators to be $601,720, or $12,280 per 

product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

2. Is not a ‘‘significant rule’’ under the 

DOT Regulatory Policies and Procedures 

(44 FR 11034, February 26, 1979); and 

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

Authority: 49 U.S.C. 106(g), 40113, 44701. 

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by 

removing Amendment 39–15535 (73 FR 

30752, May 29, 2008) and adding the 

following new AD: 

328 Support Services GmbH (Type 

Certificate Previously Held by AvCraft 

Aerospace GmbH; Fairchild Dornier 

GmbH; Dornier Luftfahrt GmbH): Docket 

No. FAA–2010–1163; Directorate 

Identifier 2009–NM–233–AD. 

Comments Due Date 

(a) We must receive comments by January 

18, 2011. 

Affected ADs 

(b) This AD supersedes AD 2008–10–51, 

Amendment 39–15535. 

Applicability 

(c) This AD applies to 328 Support 

Services GmbH (Type Certificate previously 

held by AvCraft Aerospace GmbH; Fairchild 

Dornier GmbH; Dornier Luftfahrt GmbH) 

Model 328–100 and –300 airplanes; all serial 

numbers; certificated in any category. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 57: Wings. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

During a routine inspection, cracks have 

been found on an aeroplane at the lower 

wing panel rear trailing edge inboard of flap 

lever arm 1 (rib 5). A subsequent inspection 

of the other aeroplanes in that operator’s fleet 

revealed several more aeroplanes with cracks 

at the same location. This condition, if not 

corrected, could lead to structural failure of 

the affected wing panel, possibly resulting in 

the wing separating from the airplane with 

consequent loss of control. 

* * * * * 

The new inspections are repetitive eddy 

current inspections. The modification 

includes cold expansion of the former lower 

wing panel CAMLOC holes and installation 

of new attachment material. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Restatement of Requirements of AD 2008– 

10–51 With Updated Service Information 

Repetitive Detailed Visual Inspections for 

Cracks 

(g) Within 10 flight cycles, or 10 flight 

hours, or 7 days, whichever occurs first, after 

June 3, 2008 (the effective date of AD 2008– 

10–51): Accomplish a detailed visual 

inspection of both the left-hand (LH) and 

right-hand (RH) lower wing panel inboard 

and outboard of flap lever arm 1 (rib 5) for 

cracks, in accordance with the 

Accomplishment Instructions of Dornier 

Alert Service Bulletin ASB–328J–57–015 or 

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Federal Register / Vol. 75, No. 231 / Thursday, December 2, 2010 / Proposed Rules 75161 

ASB–328–57–037, both Revision 1, both 

dated May 8, 2008, as applicable; or 328 

Support Services Alert Service Bulletin ASB– 

328J–57–015 or ASB–328–57–037, both 

Revision 2, both dated May 20, 2008; as 

applicable. After the effective date of this AD, 

use only 328 Support Services Alert Service 

Bulletin ASB–328J–57–015 or ASB–328–57– 

037, both Revision 2, both dated May 20, 

2008. If no crack is detected, repeat the 

detailed visual inspection thereafter at 

intervals not to exceed 50 flight hours. If any 

crack is detected, before further flight, do an 

eddy current inspection in accordance with 

paragraph (h) of this AD. 

Repetitive Eddy Current Inspections for 

Cracks 

(h) Within 400 flight hours or 3 months 

after June 3, 2008, whichever occurs first: 

Accomplish an eddy current inspection of 

both the LH and RH lower wing panel in the 

vicinity of rib 3 and inboard and outboard of 

flap lever arm 1 (rib 5) for cracks, in 

accordance with the Accomplishment 

Instructions of Dornier Alert Service Bulletin 

ASB–328J–57–015 or ASB–328–57–037, both 

Revision 1, both dated May 8, 2008; or 328 

Support Services Alert Service Bulletin ASB– 

328J–57–015 or ASB–328–57–037, both 

Revision 2, both dated May 20, 2008; as 

applicable. After the effective date of this AD, 

use only 328 Support Services Alert Service 

Bulletin ASB–328J–57–015 or ASB–328–57– 

037, both Revision 2, both dated May 20, 

2008. Repeat the eddy current inspection 

thereafter at intervals not to exceed 400 flight 

cycles until the inspection required by 

paragraph (i) of this AD is accomplished. 

Accomplishment of the eddy current 

inspection terminates the detailed visual 

inspection required by paragraph (g) of this 

AD. 

New Requirements of This AD 

New Repetitive Intervals for Eddy Current 

Inspections 

(i) Within 800 flight cycles after the last 

eddy current inspection required in 

paragraph (h) of this AD is done, or within 

60 days after the effective date of this AD, 

whichever occurs later, do an eddy current 

inspection for cracking of the lower wing 

panel (outside) around the flap lever arm 1 

(rib 5); in accordance with the 

Accomplishment Instructions of 328 Support 

Services Alert Service Bulletin ASB–328–57– 

037 (for Model 328–100 airplanes) or ASB– 

328J–57–015 (for Model 328–300 airplanes), 

both Revision 2, both dated May 20, 2008. 

Repeat the inspection thereafter at intervals 

not to exceed 800 flight cycles. Doing this 

inspection terminates the repetitive 

inspection requirements of paragraph (h) of 

this AD. 

Inspection and Modification of Lower Wing 

Panel 

(j) Within 24 months after the effective date 

of this AD, do an eddy current inspection of 

the lower wing panel (outside) around the 

flap lever arm 1 (rib 5). If no cracking is 

found, modify the lower wing panel by doing 

a cold expansion of the CAMLOC holes and 

installing new attachment material from rib 

9 LH to rib 9 RH. Do all actions required by 

this paragraph in accordance with the 

Accomplishment Instructions of 328 Support 

Services Service Bulletin SB–328–57–481 

(for Model 328–100 airplanes) or SB–328J– 

57–230 (for Model 328–300 airplanes), both 

Revision 1, both dated October 15, 2009. 

Doing the modification does not end the 

repetitive inspection requirements of 

paragraph (i) of this AD. 

Repair 

(k) If any cracking is found during any 

inspection required by this AD, before further 

flight contact 328 Support Services GmbH for 

repair instructions and do the repair using a 

method approved by either the Manager, 

International Branch, ANM 116, Transport 

Airplane Directorate, FAA; or European 

Aviation Safety Agency (EASA) (or its 

delegated agent). 

Inspections Accomplished According to 

Previous Issues of Service Bulletins 

(l) Inspections accomplished before the 

effective date of this AD according to Dornier 

Alert Service Bulletin ASB–328–57–037 or 

Dornier Alert Service Bulletin ASB 328J–57– 

015, both Revision 1, both dated May 8, 2008, 

as applicable, are considered acceptable for 

compliance with the inspection requirements 

of paragraphs (i) and (j) of this AD. 

Report 

(m) At the applicable time specified in 

paragraph (m)(1) and (m)(2) of this AD: Send 

328 Support Services GmbH a report of 

findings (both positive and negative) found 

during each inspection required by 

paragraphs (g), (h), and (i) of this AD. The 

report must include the inspection results, a 

description of any cracks found, the airplane 

serial number, and the number of landings 

and flight hours on the airplane. Send the 

report to 328 Support Services GmbH, Global 

Support Center, P.O. Box 1252, D–82231 

Wessling, Federal Republic of Germany; 

Telephone +49 8153 88111 6666; fax 49 8153 

88111 6565; e-mail: gsc.op@328support.de. 

(1) For any inspection done after the 

effective date of this AD: Within 30 days after 

the inspection. 

(2) For any inspection done before the 

effective date of this AD: Within 30 days after 

the effective date of this AD. 

FAA AD Differences 

Note 1: This AD differs from the MCAI 

and/or service information as follows: 

EASA AD 2009–0194 gives credit for eddy 

current inspections conducted in accordance 

with the maintenance review board tasks. We 

are not giving credit for those inspections. 

Other FAA AD Provisions 

(n) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, International 

Branch, ANM–116, Transport Airplane 

Directorate, FAA, has the authority to 

approve AMOCs for this AD, if requested 

using the procedures found in 14 CFR 39.19. 

Send information to ATTN: Tom Rodriguez, 

Aerospace Engineer, International Branch, 

ANM–116, Transport Airplane Directorate, 

FAA, 1601 Lind Avenue, SW., Renton, 

Washington 98057–3356; telephone (425) 

227–1137; fax (425) 227–1149. Before using 

any approved AMOC on any airplane to 

which the AMOC applies, notify your 

principal maintenance inspector (PMI) or 

principal avionics inspector (PAI), as 

appropriate, or lacking a principal inspector, 

your local Flight Standards District Office. 

The AMOC approval letter must specifically 

reference this AD. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: A Federal 

agency may not conduct or sponsor, and a 

person is not required to respond to, nor 

shall a 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 of information displays a current 

valid OMB Control Number. The OMB 

Control Number for this information 

collection is 2120–0056. Public reporting for 

this collection of information is estimated to 

be approximately 5 minutes per response, 

including the time for reviewing instructions, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Comments 

concerning the accuracy of this burden and 

suggestions for reducing the burden should 

be directed to the FAA at: 800 Independence 

Ave., SW., Washington, DC 20591, Attn: 

Information Collection Clearance Officer, 

AES–200. 

(4) Special Flight Permits: Special flight 

permits may be issued in accordance with 

sections 21.197 and 21.199 of the Federal 

Aviation Regulations (14 CFR 21.197 and 

21.199) to operate the airplane to a location 

where the requirements of paragraphs (g), (h), 

and (i) of this AD can be done if the 

following conditions are met: 

(i) The initial inspection required by 

paragraph (g) of this AD must be 

accomplished. 

(ii) If a crack indication exceeds 12.5 mm 

(0.49 inch), the Manager, International 

Branch, ANM–116, concurs with issuance of 

the special flight permits. 

Related Information 

(o) Refer to MCAI EASA Airworthiness 

Directive 2009–0194, dated September 1, 

2009, and the service bulletins listed in Table 

1 of this AD, for related information. 

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75162 Federal Register / Vol. 75, No. 231 / Thursday, December 2, 2010 / Proposed Rules 

1 7 U.S.C. 6d(a). 

2 7 U.S.C. 6d(f)(2). 

3Section 4d(f)(3)(A) of the CEA provides an 

exception permitting commingling ‘‘for 

convenience.’’ 

4 7 U.S.C. 6d(f)(6) (emphasis added). This section 

was added by Section 724(a) of Dodd-Frank, Public 

Law 111–203, 124 Stat. 1376. 

5Section 4d(a)(2) provides a similar exception 

permitting commingling ‘‘for convenience.’’. 

TABLE 1—SERVICE BULLETINS

Service Bulletin Revision Date 

328 Support Services Alert Service Bulletin ASB–328–57–037 .............................................................................. 2 May 20, 2008. 

328 Support Services Alert Service Bulletin ASB–328J–57–015 ............................................................................ 2 May 20, 2008. 

328 Support Services Service Bulletin SB–328–57–481 ......................................................................................... 1 October 15, 2009. 

328 Support Services GmbH Service Bulletin SB–328J–57–230 ............................................................................ 1 October 15, 2009. 

Issued in Renton, Washington on 

November 22, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–30282 Filed 12–1–10; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 190 

RIN 3038–AD99 

Protection of Cleared Swaps 

Customers Before and After 

Commodity Broker Bankruptcies 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Advanced notice of proposed 

rulemaking; request for comments. 

SUMMARY: The Commodity Futures 

Trading Commission (the ‘‘CFTC’’ or 

‘‘Commission’’) seeks comment on 

possible models for implementing new 

statutory provisions enacted by Title VII 

of the Dodd-Frank Wall Street Reform 

and Consumer Protection Act (‘‘DoddFrank’’) concerning the protection of 

collateral posted by customers clearing 

swaps. 

DATES: Submit comments on or before 

January 18, 2011. 

ADDRESSES: You may submit comments, 

identified by RIN number 3038–AD99, 

by any of the following methods: 

• Agency Web site, via its Comments 

Online process: http:// 

comments.cftc.gov. Follow the 

instructions for submitting comments 

through the Web site. 

• Mail: David A. Stawick, Secretary of 

the Commission, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

• Hand Delivery/Courier: same as 

mail above. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

Please submit your comments by only 

one method. 

All comments must be submitted in 

English, or if not, accompanied by an 

English translation. Comments will be 

posted as received to http:// 

www.cftc.gov. You should submit only 

information that you wish to make 

available publicly. If you wish the 

Commission to consider information 

that you believe is exempt from 

disclosure under the Freedom of 

Information Act, a petition for 

confidential treatment of the exempt 

information may be submitted according 

to the procedures established in CFTC 

Regulation 145.9, 17 CFR 145.9. 

The Commission reserves the right, 

but shall have no obligation, to review, 

pre-screen, filter, redact, refuse or 

remove any or all of your submission 

from www.cftc.gov that it may deem to 

be inappropriate for publication, such as 

obscene language. All submissions that 

have been redacted or removed that 

contain comments on the merits of the 

rulemaking will be retained in the 

public comment file and will be 

considered as required under the 

Administrative Procedure Act and other 

applicable laws, and may be accessible 

under the Freedom of Information Act. 

FOR FURTHER INFORMATION CONTACT: 

Robert B. Wasserman, Associate 

Director, Division of Clearing and 

Intermediary Oversight (DCIO), at 202– 

418–5092 or rwasserman@cftc.gov; 

Martin White, Assistant General 

Counsel, at 202–418–5129 or 

mwhite@cftc.gov; or Nancy Liao 

Schnabel, Special Counsel, DCIO, at 

202–418–5344 or nschnabel@cftc.gov. in 

each case, also at the Commodity 

Futures Trading Commission, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

This Advanced Notice of Proposed 

Rulemaking (‘‘ANPR’’) is intended to 

obtain comment from interested parties 

concerning the appropriate model for 

protecting the margin collateral posted 

by customers clearing swaps 

transactions. As discussed in more 

detail below, the statutory language in 

Dodd-Frank concerning the protection 

of swaps customer margin is 

substantially similar, though not 

identical, to analogous provisions in 

Section 4d(a) of the Commodity 

Exchange Act (‘‘CEA’’) 1 applicable to the 

protection of collateral posted by 

customers with respect to exchangetraded futures. The Commission 

therefore is seeking comment on 

whether to adopt a similar model to 

protect the margin collateral posted by 

customers clearing swaps transactions 

as it currently employs with respect to 

exchange-traded futures, or whether 

another model is appropriate. 

Section 4d(f)(2) of the CEA,2 as added 

by Section 724 of Dodd-Frank, provides 

that ‘‘property of a swaps customer 

[received to margin a swap]* * * shall 

not be commingled with the funds of 

the futures commission merchant or be 

used to margin, secure or guarantee any 

trades or contracts of any swaps 

customer or person other than the 

person for whom the same are held.3

Section 4d(f)(6) of the CEA makes it 

unlawful for a depository, including a 

derivatives clearing organization 

(‘‘DCO’’), that has received such swaps 

customer property ‘‘to hold, dispose of, 

or use any such * * * property as 

belonging to * * * any person other 

than the swaps customer of the futures 

commission merchant.’’ 4

The provisions applicable to the 

margin posted by exchange-traded 

futures customers are similar, but not 

identical. Section 4d(a)(2) provides that 

‘‘property received [by a futures 

commission merchant] to margin, 

guarantee or secure the [exchangetraded] contracts of any customer of 

such [futures commission merchant] 

* * * shall not be commingled with the 

funds of such commission merchant or 

be used to guarantee the trades or 

contracts * * * of any person other 

than the one for whom the same are 

held.’’ 5 Section 4d(b) makes it unlawful 

for a DCO that has received such 

customer property ‘‘to hold, dispose of, 

or use any such * * * property as 

belonging to * * * any person other 

WReier-Aviles on DSKGBLS3C1PROD with PROPOSALS