Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations 44125 

1 77 FR 67866 (November 14, 2012). 

2See 78 FR 68506 at 68578, fn 592. 

3 7 U.S.C. 1 et seq. 

where the protection provider has 

sufficient assets against which a 

judgment may be attached and enforced; 

(7) Requires the protection provider to 

make payment to the beneficiary on the 

occurrence of a default (as defined in 

the guarantee) of the obligated party on 

the reference exposure in a timely 

manner without the beneficiary first 

having to take legal actions to pursue 

the obligor for payment; 

(8) Does not increase the beneficiary’s 

cost of credit protection on the 

guarantee in response to deterioration in 

the credit quality of the reference 

exposure; 

(9) Is not provided by an affiliate of 

the FDIC-supervised institution, unless 

the affiliate is an insured depository 

institution, foreign bank, securities 

broker or dealer, or insurance company 

that: 

(i) Does not control the FDICsupervised institution; and 

(ii) Is subject to consolidated 

supervision and regulation comparable 

to that imposed on depository 

institutions, U.S. securities brokerdealers, or U.S. insurance companies (as 

the case may be); and 

(10) For purposes of §§ 324.141 

through 324.145 and subpart D of this 

part, is provided by an eligible 

guarantor. 

* * * * * 

Dated: July 15, 2014. 

Thomas J. Curry, 

Comptroller of the Currency. 

By order of the Board of Governors of the 

Federal Reserve System, July 23, 2014. 

Robert deV. Frierson, 

Secretary of the Board. 

Dated at Washington, DC, this 15th day of 

July, 2014. 

By order of the Board of Directors. 

Federal Deposit Insurance Corporation. 

Robert E. Feldman, 

Executive Secretary. 

[FR Doc. 2014–17858 Filed 7–29–14; 8:45 am] 

BILLING CODE P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1, 30, and 140 

RIN 3038–AD88 

Enhancing Protections Afforded 

Customers and Customer Funds Held 

by Futures Commission Merchants 

and Derivatives Clearing 

Organizations; Correction 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Correcting Amendments. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘CFTC’’) is 

correcting final rules published in the 

Federal Register of November 14, 2013 

(‘‘final rules’’). Those rules, which 

adopted new regulations and amended 

existing regulations requiring enhanced 

customer protections, risk management 

programs, internal monitoring and 

controls, capital and liquidity standards, 

customer disclosures, and auditing and 

examination programs for futures 

commission merchants, took effect on 

January 13, 2014. This correction 

amends erroneous cross-references 

found in three sections of the final rules. 

Additionally, this correction amends 

one section of the final rules to insert 

language that was in the proposed 

rulemaking, and which was stated as 

being adopted in the preamble to the 

final rules, but was erroneously omitted 

from the final rule text. 

DATES: Effective on July 30, 2014. 

FOR FURTHER INFORMATION CONTACT: 

Thomas Smith, Deputy Director, 202– 

418–5495, tsmith@cftc.gov, or Mark 

Bretscher, Attorney-Advisor, 312–596– 

0529, mbretscher@cftc.gov, Division of 

Swap Dealer and Intermediary 

Oversight, Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: In the 

Federal Register of November 14, 2013 

(78 FR 68506), the CFTC published final 

rules adopting new regulations and 

amending existing regulations requiring 

enhanced customer protections, risk 

management programs, internal 

monitoring and controls, capital and 

liquidity standards, customer 

disclosures, and auditing and 

examination programs for futures 

commission merchants. Those rules in 

17 CFR 1.23(d)(2) and 1.23(d)(3) include 

erroneous cross-references to 17 CFR 

1.23(c)(1) and 1.23(c)(2), which do not 

exist. Instead, the cross-references 

should be to 17 CFR 1.23(d)(1) and 

1.23(d)(2). Accordingly, the Commission 

is making a correcting amendment 

which removes the erroneous crossreferences to 17 CFR 1.23(c)(1) and 

1.23(c)(2), contained in 17 CFR 

1.23(d)(2) and 1.23(d)(3), and replaces 

them with corrected cross-references to 

17 CFR 1.23(d)(1) and 1.23(d)(2). 

Further, the final rules in 17 CFR 

30.7(g)(4) include an erroneous crossreference to 17 CFR 30.7(h)(2), which 

should reference 17 CFR 30.7(l), and an 

erroneous cross-reference to 17 CFR 

30.7(g)(2), which should reference 17 

CFR 30.7(g)(3). Also, 17 CFR 30.7(g)(5) 

contains an erroneous cross-reference to 

17 CFR 30.7(c)(1) and 30.7(c)(2), which 

should reference 30.7(g)(3) and 

30.7(g)(4). Thus, the Commission is 

making a correcting amendment to 17 

CFR 30.7(g)(4) and 30.7(g)(5) as 

discussed above. 

Additionally, the final rules in 17 CFR 

30.7(d)(1) erroneously omitted language 

that was contained in the proposed 

rulemaking published on November 14, 

2012; 1 and was stated as having been 

adopted in the preamble to the final 

rules.2 The erroneously omitted 

language states that a futures 

commission merchant is not required to 

obtain an acknowledgment letter from a 

derivatives clearing organization 

(‘‘DCO’’) if the DCO maintains rules that 

have been submitted to the Commission 

and that provide for the segregation of 

customer funds in accordance with all 

relevant provisions of the Commodity 

Exchange Act 3 and Commission 

regulations. Thus, the Commission is 

making a correcting amendment to 17 

CFR 30.7(d)(1) to rectify that error. 

Finally, the final rules in 17 CFR 

140.91(a)(12) include an erroneous 

cross-reference to 17 CFR 140.91(a)(8), 

which should reference 17 CFR 

140.91(a)(12). Thus, the Commission is 

making a correcting amendment to 17 

CFR 140.91(a)(12) that removes the 

erroneous cross-reference to 17 CFR 

140.91(a)(8) and replaces it with a crossreference to 17 CFR 140.91(a)(12). 

List of Subjects 

17 CFR Part 1 

Brokers, Commodity futures, 

Consumer protection, Reporting and 

recordkeeping requirements. 

17 CFR Part 30 

Commodity futures, Consumer 

protection, Currency, Reporting and 

recordkeeping requirements. 

17 CFR Part 140 

Authority delegations (Government 

agencies), Organization and functions 

(Government agencies). 

In consideration of the foregoing, 17 

CFR parts 1, 30, and 140 are corrected 

by making the following correcting 

amendments: 

PART 1—GENERAL REGULATIONS 

UNDER THE COMMODITY EXCHANGE 

ACT 

■ 1. The authority citation for part 1 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6b, 6c, 

6d, 6e, 6f, 6g, 6h, 6i, 6k, 6l, 6m, 6n, 6o, 6p, 

6r, 6s, 7, 7a–1, 7a–2, 7b, 7b–3, 8, 9, 10a, 12, 


pmangrum on DSK3VPTVN1PROD with RULES
44126 Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations 

12a, 12c, 13a, 13a–1, 16, 16a, 19, 21, 23, and 

24, as amended by Title VII of the DoddFrank Wall Street Reform and Consumer 

Protection Act, Pub. L. 111–203, 124 Stat. 

1376 (2010). 

■ 2. In § 1.23, revise paragraph (d)(2) 

introductory text, paragraphs (d)(2)(i) 

and (d)(2)(v), and paragraph (d)(3) 

introductory text to read as follows: 

§ 1.23 Interest of futures commission 

merchant in segregated futures customer 

funds; additions and withdrawals. 

* * * * * 

(d) * * * 

(2) The futures commission merchant 

files written notice of the withdrawal or 

series of withdrawals, with the 

Commission and with its designated 

self-regulatory organization immediately 

after the chief executive officer, chief 

finance officer or other senior official as 

described in paragraph (d)(1) of this 

section pre-approves the withdrawal or 

series of withdrawals. The written 

notice must: 

(i) Be signed by the chief executive 

officer, chief finance officer or other 

senior official as described in paragraph 

(d)(1) of this section that pre-approved 

the withdrawal, and give notice that the 

futures commission merchant has 

withdrawn or intends to withdraw more 

than 25 percent of its residual interest 

in segregated accounts holding futures 

customer funds; 

* * * * * 

(v) Contain a representation by the 

chief executive officer, chief finance 

officer or other senior official as 

described in paragraph (d)(1) of this 

section that pre-approved the 

withdrawal, or series of withdrawals, 

that, after due diligence, to such 

person’s knowledge and reasonable 

belief, the futures commission merchant 

remains in compliance with the 

segregation requirements after the 

withdrawal. The chief executive officer, 

chief finance officer or other senior 

official as described in paragraph (d)(1) 

of this section must consider the daily 

segregation calculation as of the close of 

business on the previous business day 

and any other factors that may cause a 

material change in the futures 

commission merchant’s residual interest 

since the close of business the previous 

business day, including known 

unsecured futures customer debits or 

deficits, current day market activity and 

any other withdrawals made from the 

futures accounts; and 

* * * * * 

(3) After making a withdrawal 

requiring the approval and notice 

required in paragraphs (d)(1) and (2) of 

this section, and before the completion 

of its next daily segregated funds 

calculation, no futures commission 

merchant may make any further 

withdrawals from accounts holding 

futures customer funds, except to or for 

the benefit of futures customers, 

without, for each withdrawal, obtaining 

the approval required under paragraph 

(d)(1) of this section and filing a written 

notice in the manner specified under 

paragraph (d)(2) of this section with the 

Commission and its designated selfregulatory organization signed by the 

chief executive officer, chief finance 

officer, or other senior official. The 

written notice must: 

* * * * * 

PART 30—FOREIGN FUTURES AND 

FOREIGN OPTIONS TRANSACTIONS 

■ 3. The authority citation for part 30 

continues to read as follows: 

Authority: 7 U.S.C. 1a, 2, 6, 6c, and 12a, 

unless otherwise noted. 

■ 4. In § 30.7, revise paragraph (d)(1), 

paragraph (g)(4) introductory text, 

paragraph (g)(4)(v), and paragraph (g)(5) 

introductory text to read as follows: 

§ 30.7 Treatment of foreign futures or 

foreign options secured amount. 

* * * * * 

(d) Written acknowledgment from 

depositories. (1) A futures commission 

merchant must obtain a written 

acknowledgment from each depository 

prior to or contemporaneously with the 

opening of an account by the futures 

commission merchant with such 

depository; Provided, however, that a 

written acknowledgment need not be 

obtained from a derivatives clearing 

organization that has adopted and 

submitted to the Commission rules that 

provide for the separate holding of 

foreign futures or foreign options 

secured amount, in accordance with all 

relevant provisions of the Act, this part 

and the regulations and orders 

promulgated thereunder, of all funds 

held on behalf of 30.7 customers and all 

instruments purchased with funds set 

aside as the foreign futures or foreign 

options secured amount as provided for 

under paragraph (h) of this section. 

* * * * * 

(g) * * * 

(4) A futures commission merchant 

must file written notice of the 

withdrawal or series of withdrawals that 

exceed 25 percent of the futures 

commission merchant’s residual interest 

in 30.7 customer funds as computed 

under paragraph (l) of this section with 

the Commission and with its designated 

self-regulatory organization immediately 

after the chief executive officer, chief 

finance officer or other senior official as 

described in paragraph (g)(3) of this 

section pre-approves the withdrawal or 

series of withdrawals. The written 

notice must: 

* * * * * 

(v) Contain a representation by the 

chief executive officer, chief finance 

officer or other senior official as 

described in paragraph (g)(3) of this 

section that pre-approved the 

withdrawal, or series of withdrawals, 

that to such person’s knowledge and 

reasonable belief, the futures 

commission merchant remains in 

compliance with the secured amount 

requirements after the withdrawal. The 

chief executive officer, chief finance 

officer or other appropriate senior 

official as described in paragraph (g)(3) 

of this section must consider the daily 

30.7 calculation as of the close of 

business on the previous business day 

and any other factors that may cause a 

material change in the futures 

commission’s residual interest since the 

close of business the previous business 

day, including known unsecured 

customer debits or deficits, current day 

market activity and any other 

withdrawals made from the 30.7 

customer accounts; and 

* * * * * 

(5) After making a withdrawal 

requiring the approval and notice 

required in paragraphs (g)(3) and (4) of 

this section, and before the next daily 

secured amount calculation, no futures 

commission merchant may make any 

further withdrawals from accounts 

holding 30.7 customer funds, except to 

or for the benefit of 30.7 customers, 

without, for each withdrawal, obtaining 

the approval required under paragraph 

(g)(3) of this section and filing a written 

notice with the Commission under 

paragraph (g)(4)(vi) of this section and 

its designated self-regulatory 

organization signed by the chief 

executive officer, chief finance officer, 

or other senior official. The written 

notice must: 

* * * * * 

PART 140—ORGANIZATION, 

FUNCTIONS, AND PROCEDURES OF 

THE COMMISSION 

■ 5. The authority citation for part 140 

continues to read as follows: 

Authority: 7 U.S.C. 2(a)(12), 12a, 13(c), 

13(d), 13(e), and 16(b). 

■ 6. In § 140.91, revise paragraph (a)(12) 

to read as follows: 


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Federal Register / Vol. 79, No. 146 / Wednesday, July 30, 2014 / Rules and Regulations 44127 

§ 140.91 Delegation of authority to the 

Director of the Division of Clearing and Risk 

and to the Director of the Division of Swap 

Dealer and Intermediary Oversight. 

(a) * * * 

(12) All functions reserved to the 

Commission in § 41.41 of this chapter. 

Any action taken pursuant to the 

delegation of authority under this 

paragraph (a)(12) shall be made with the 

concurrence of the General Counsel or, 

in his or her absence, a Deputy General 

Counsel. 

* * * * * 

Issued in Washington, DC, on July 25, 

2014, by the Commission. 

Christopher J. Kirkpatrick, 

Acting Secretary of the Commission. 

[FR Doc. 2014–17934 Filed 7–29–14; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2014–0646] 

RIN 1625–AA00 

Safety Zones; Annual Events 

Requiring Safety Zones in the Captain 

of the Port Lake Michigan Zone—Sister 

Bay Marinafest Ski Show 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

the safety zone on Sister Bay in Sister 

Bay, WI for the Sister Bay Marinafest 

Ski Show. This zone will be enforced 

from 1 p.m. until 3:15 p.m. on August 

30, 2014. This action is necessary and 

intended to ensure the safety of life on 

navigable waters during the ski show. 

During the aforementioned period, the 

Coast Guard will enforce restrictions 

upon, and control movement of, vessels 

in the safety zone. No person or vessel 

may enter the safety zone while it is 

being enforced without permission of 

the Captain of the Port Lake Michigan. 

DATES: The regulations in 33 CFR 

165.929 will be enforced for safety zone 

(f)(14), Table 165.929, from 1 p.m. until 

3:15 p.m. on August 30, 2014. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this document, 

call or email MST1 Joseph McCollum, 

Prevention Department, Coast Guard 

Sector Lake Michigan, Milwaukee, WI at 

(414) 747–7148, email 

joseph.p.mccollum@uscg.mil. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce the Sister Bay 

Marinafest Ski Show safety zone listed 

as item (f)(14) in Table 165.929 of 33 

CFR 165.929. Section 165.929 lists 

many annual events requiring safety 

zones in the Captain of the Port Lake 

Michigan zone. The Sister Bay 

Marinafest Ski Show zone will 

encompass all waters of Sister Bay 

within an 800-foot radius of position 

45°11′35.1′′ N, 087°7′23.5′′ W (NAD 83). 

This zone will be enforced from 1 p.m. 

until 3:15 p.m. on August 30, 2014. 

All vessels must obtain permission 

from the Captain of the Port Lake 

Michigan, or the on-scene representative 

to enter, move within, or exit the safety 

zone. Requests must be made in 

advance and approved by the Captain of 

the Port before transits will be 

authorized. Approvals will be granted 

on a case by case basis. Vessels and 

persons granted permission to enter the 

safety zone must obey all lawful orders 

or directions of the Captain of the Port 

Lake Michigan or a designated 

representative. 

This document is issued under 

authority of 33 CFR 165.929, Safety 

Zones; Annual events requiring safety 

zones in the Captain of the Port Lake 

Michigan zone and 5 U.S.C. 552(a). In 

addition to this publication in the 

Federal Register, the Coast Guard will 

provide the maritime community with 

advance notification of this event via 

Broadcast Notice to Mariners or Local 

Notice to Mariners that the regulation is 

in effect. The Captain of the Port Lake 

Michigan or her on-scene representative 

may be contacted via Channel 16, VHF– 

FM. 

Dated: July 17, 2014. 

A.B. Cocanour, 

Captain, U.S. Coast Guard, Captain of the 

Port, Lake Michigan. 

[FR Doc. 2014–17968 Filed 7–29–14; 8:45 am] 

BILLING CODE 9110–04–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2014–0646] 

Safety Zones; Annual Events 

Requiring Safety Zones in the Captain 

of the Port Lake Michigan Zone—Sister 

Bay Marinafest Fireworks, Sister Bay, 

WI 

AGENCY: Coast Guard, DHS. 

ACTION: Notice of enforcement of 

regulation. 

SUMMARY: The Coast Guard will enforce 

the safety zone on Green Bay in Sister 

Bay, WI for the Sister Bay Marinafest 

Fireworks. This zone will be enforced 

from 8:30 p.m. until 10:30 p.m. on 

August 30, 2014. This action is 

necessary and intended to ensure the 

safety of life on navigable waters during 

a fireworks display. During the 

aforementioned periods, the Coast 

Guard will enforce restrictions upon, 

and control movement of, vessels in the 

safety zone. No person or vessel may 

enter the safety zone while it is being 

enforced without permission of the 

Captain of the Port, Lake Michigan. 

DATES: The regulations in 33 CFR 

165.929 will be enforced for safety zone 

(f)(15), Table 165.929, from 8:30 p.m. 

until 10:30 p.m. on August 30, 2014. 

FOR FURTHER INFORMATION CONTACT: If 

you have questions on this document, 

call or email MST1 Joseph McCollum, 

Prevention Department, Coast Guard 

Sector Lake Michigan, Milwaukee, WI at 

(414) 747–7148, email 

joseph.p.mccollum@uscg.mil. 

SUPPLEMENTARY INFORMATION: The Coast 

Guard will enforce the Sister Bay 

Marinafest Fireworks safety zone listed 

as item (f)(15) in Table 165.929 of 33 

CFR 165.929. Section 165.929 lists 

many annual events requiring safety 

zones in the Captain of the Port Lake 

Michigan zone. The Sister Bay 

Marinafest Fireworks display zone will 

encompass all waters of Sister Bay 

within an 800-foot radius of the launch 

vessel in approximate position 

45°11′35.1′′ N, 087°7′23.5′′ W (NAD 83). 

This zone will be enforced from 8:30 

p.m. until 10:30 p.m. on August 30, 

2014. 

All vessels must obtain permission 

from the Captain of the Port Lake 

Michigan or the on-scene representative 

to enter, move within, or exit the safety 

zone. Requests must be made in 

advance and approved by the Captain of 

the Port before transits will be 

authorized. Approvals will be granted 

on a case by case basis. Vessels and 

persons granted permission to enter the 

safety zone must obey all lawful orders 

or directions of the Captain of the Port 

Lake Michigan or a designated 

representative. 

This document is issued under 

authority of 33 CFR 165.929, Safety 

Zones; Annual events requiring safety 

zones in the Captain of the Port Lake 

Michigan zone and 5 U.S.C. 552(a). In 

addition to this publication in the 

Federal Register, the Coast Guard will 

provide the maritime community with 

advance notification via Broadcast 

Notice to Mariners or Local Notice to 

Mariners that the regulation is in effect. 

The Captain of the Port Lake Michigan 


pmangrum on DSK3VPTVN1PROD with RULES