42436 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

Items: * * * 

Note: 9B105 does not control wind tunnels 

for speeds of Mach 3 or less with the 

dimension of the ‘test cross section size’ 

equal to or less than 250 mm. 

Technical Notes: 

1. ‘Aerodynamic test facilities’ includes 

wind tunnels and shock tunnels for the study 

of airflow over objects. 

2. ‘Test cross section size’ means the 

diameter of the circle, or the side of the 

square, or the longest side of the rectangle, 

or the major axis of the ellipse at the largest 

‘test cross section’ location. ‘Test cross 

section’ is the section perpendicular to the 

flow direction. 

■ 12. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9D004 is amended: 

■ a. By removing the ‘‘MT’’ paragraph in 

the License Requirements section; and 

■ b. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section to read as follows: 

9D004 Other ‘‘software’’ as follows (see List 

of Items Controlled). 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: See also 9D104. 

* * * * * 

■ 13. In Supplement No. 1 to part 774 

(the Commerce Control List), Category 

9—Aerospace and Propulsion, Export 

Control Classification Number (ECCN) 

9E101 is amended: 

■ a. By revising the heading; and 

■ b. By revising the ‘‘related controls’’ 

paragraph in the List of Items Controlled 

section to read as follows: 

9E101 ‘‘Technology’’ according to the 

General Technology Note for the 

‘‘development,’’ ‘‘production,’’ or ‘‘use’’ 

of commodities or software controlled 

by 9A012 (for MT controlled 

commodities only), 9A101, 9A103 to 

9A111, 9A115 to 9A119, 9C110, 9D101, 

9D103, 9D104 or 9D105. 

* * * * * 

List of Items Controlled 

* * * * * 

Related Controls: ‘‘Technology’’ controlled 

by 9E101 for items in 9A101.b, 9A103 to 

9A111, 9A115 to 9A119, 9D103, and 9D105 

is ‘‘subject to the ITAR’’ (see 22 CFR parts 

120 through 130). 

* * * * * 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2013–16954 Filed 7–15–13; 8:45 am] 

BILLING CODE 3510–33–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 43 

RIN 3038–AD08 

Procedures To Establish Appropriate 

Minimum Block Sizes for Large 

Notional Off-Facility Swaps and Block 

Trades; Correction 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule; correction. 

SUMMARY: The Commodity Futures 

Trading Commission is correcting a 

final rule that appeared in the Federal 

Register of May 31, 2013 (78 FR 32866). 

The final rule adopted regulations, 

under the Dodd-Frank Wall Street 

Reform and Consumer Protection Act, 

defining the criteria for grouping swaps 

into separate swap categories and 

establishing methodologies for setting 

appropriate minimum block sizes for 

each swap category. These corrections 

fix errors in certain contract 

descriptions, block sizes, and block 

units listed in Appendix F to the final 

rule. 

DATES: Effective date: July 30, 2013. 

FOR FURTHER INFORMATION CONTACT: John 

W. Dunfee, Assistant General Counsel, 

Office of the General Counsel, 

Commodity Futures Trading 

Commission, Three Lafayette Center, 

1155 21st Street, NW., Washington, DC 

20581; 202–418–5396; jdunfee@cftc.gov. 

SUPPLEMENTARY INFORMATION: In FR Doc. 

2013–12133 appearing on page 32866 in 

the Federal Register of Friday, May 31, 

2013, the following correction is made: 

Appendix F to Part 43—Initial 

Appropriate Minimum Block Sizes by 

Asset Class for Block Trades and Large 

Notional Off-Facility Swaps [Corrected] 

1. On page 32942, in the third 

column, in Appendix F to Part 43— 

Initial Appropriate Minimum Block 

Sizes by Asset Class for Block Trades 

and Large Notional Off-Facility Swaps, 

correct Appendix F by removing all of 

the tables published on pages 32942 

through 32944 and adding the following 

corrected tables in their place: 

Currency group Currencies 

Super-Major Currencies .............. United States dollar (USD), European Union Euro Area euro (EUR), United Kingdom pound sterling (GBP), 

and Japan yen (JPY). 

Major Currencies ......................... Australia dollar (AUD), Switzerland franc (CHF), Canada dollar (CAD), Republic of South Africa rand (ZAR), 

Republic of Korea won (KRW), Kingdom of Sweden krona (SEK), New Zealand dollar (NZD), Kingdom of 

Norway krone (NOK), and Denmark krone (DKK). 

Non-Major Currencies ................. All other currencies. 

INTEREST RATE SWAPS

Currency group Tenor greater than Tenor less than or equal to 50% Notional 

(in millions) 

Super-Major ................................. ...................................................................... 46 days ........................................................ 6,400 

Super-Major ................................. 46 days ........................................................ Three months (107 days) ............................ 2,100 

Super-Major ................................. Three months (107 days) ............................ Six months (198 days) ................................ 1,200 

Super-Major ................................. Six months (198 days) ................................ One year (381 days) ................................... 1,100 

Super-Major ................................. One year (381 days) ................................... Two years (746 days) ................................. 460 

Super-Major ................................. Two years (746 days) ................................. Five years (1,842 days) .............................. 240 

Super-Major ................................. Five years (1,842 days) .............................. Ten years (3,668 days) ............................... 170 

Super-Major ................................. Ten years (3,668 days) ............................... 30 years (10,973 days) ............................... 120 

Super-Major ................................. 30 years (10,973 days) ............................... ...................................................................... 67 

Major ............................................ ...................................................................... 46 days ........................................................ 2,200 

Major ............................................ 46 days ........................................................ Three months (107 days) ............................ 580 

Major ............................................ Three months (107 days) ............................ Six months (198 days) ................................ 440 

Major ............................................ Six months (198 days) ................................ One year (381 days) ................................... 220 

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Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 42437 

INTEREST RATE SWAPS—Continued 

Currency group Tenor greater than Tenor less than or equal to 50% Notional 

(in millions) 

Major ............................................ One year (381 days) ................................... Two years (746 days) ................................. 130 

Major ............................................ Two years (746 days) ................................. Five years (1,842 days) .............................. 88 

Major ............................................ Five years (1,842 days) .............................. Ten years (3,668 days) ............................... 49 

Major ............................................ Ten years (3,668 days) ............................... 30 years (10,973 days) ............................... 37 

Major ............................................ 30 years (10,973 days) ............................... ...................................................................... 15 

Non-Major .................................... ...................................................................... 46 days ........................................................ 230 

Non-Major .................................... 46 days ........................................................ Three months (107 days) ............................ 230 

Non-Major .................................... Three months (107 days) ............................ Six months (198 days) ................................ 150 

Non-Major .................................... Six months (198 days) ................................ One year (381 days) ................................... 110 

Non-Major .................................... One year (381 days) ................................... Two years (746 days) ................................. 54 

Non-Major .................................... Two years (746 days) ................................. Five years (1,842 days) .............................. 27 

Non-Major .................................... Five years (1,842 days) .............................. Ten years (3,668 days) ............................... 15 

Non-Major .................................... Ten years (3,668 days) ............................... 30 years (10,973 days) ............................... 16 

Non-Major .................................... 30 years (10,973 days) ............................... ...................................................................... 15 

CREDIT SWAPS

Spread group 

(basis points) Traded tenor greater than Traded tenor less than or equal to 50% Notional (in millions) 

Less than or equal to 175 ...................... ................................................................ Two years (746 days) ............................ 320 

Less than or equal to 175 ...................... Two years (746 days) ............................ Four years (1,477 days) ........................ 200 

Less than or equal to 175 ...................... Four years (1,477 days) ........................ Six years (2,207 days) ........................... 110 

Less than or equal to 175 ...................... Six years (2,207 days) ........................... Eight years and six months (3,120 

days).

110 

Less than or equal to 175 ...................... Eight years and six months (3,120 

days).

Twelve years and six months (4,581 

days).

130 

Less than or equal to 175 ...................... Twelve years and six months (4,581 

days).

................................................................ 46 

Greater than 175 and less than or equal 

to 350.

................................................................ Two years (746 days) ............................ 140 

Greater than 175 and less than or equal 

to 350.

Two years (746 days) ............................ Four years (1,477 days) ........................ 82 

Greater than 175 and less than or equal 

to 350.

Four years (1,477 days) ........................ Six years (2,207 days) ........................... 32 

Greater than 175 and less than or equal 

to 350.

Six years (2,207 days) ........................... Eight years and six months (3,120 

days).

20 

Greater than 175 and less than or equal 

to 350.

Eight years and six months (3,120 

days).

Twelve years and six months (4,581 

days).

26 

Greater than 175 and less than or equal 

to 350.

Twelve years and six months (4,581 

days).

................................................................ 63 

Greater than 350 .................................... ................................................................ Two years (746 days) ............................ 66 

Greater than 350 .................................... Two years (746 days) ............................ Four years (1,477 days) ........................ 41 

Greater than 350 .................................... Four years (1,477 days) ........................ Six years (2,207 days) ........................... 26 

Greater than 350 .................................... Six years (2,207 days) ........................... Eight years and six months (3,120 

days).

13 

Greater than 350 .................................... Eight years and six months (3,120 

days).

Twelve years and six months (4,581 

days).

13 

Greater than 350 .................................... Twelve years and six months (4,581 

days).

................................................................ 41 

FOREIGN EXCHANGE SWAPS

Super-major currencies 

EUR 

(Euro) 

GBP 

(British pound) 

JPY 

(Japanese yen) 

USD 

(U.S. dollar) 

Super-major currencies .................................................. EUR .... ............................ 6,250,000 6,250,000 18,750,000 

GBP .... * 6,250,000 ............................ 6,250,000 6,250,000 

JPY ..... * 6,250,000 * 6,250,000 ............................ 1,875,000,000 

USD .... * 18,750,000 * 6,250,000 * 1,875,000,000 ............................

Major currencies ............................................................. AUD .... * 6,250,000 0 10,000,000 10,000,000 

CAD .... * 6,250,000 0 10,000,000 10,000,000 

CHF ..... * 6,250,000 * 6,250,000 12,500,000 12,500,000 

DKK ..... 0 0 0 0 

KRW .... 0 0 0 6,250,000,000 

SEK ..... * 6,250,000 0 0 100,000,000 

NOK .... * 6,250,000 0 0 100,000,000 

NZD ..... 0 0 0 5,000,000 

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42438 Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 

FOREIGN EXCHANGE SWAPS—Continued 

Super-major currencies 

EUR 

(Euro) 

GBP 

(British pound) 

JPY 

(Japanese yen) 

USD 

(U.S. dollar) 

ZAR ..... 0 0 0 25,000,000 

Non-major currencies ..................................................... BRL ..... 0 0 0 5,000,000 

CZK ..... 200,000,000 0 0 200,000,000 

HUF ..... 1,500,000,000 0 0 1,500,000,000 

ILS ....... 0 0 0 50,000,000 

MXN .... 0 0 0 50,000,000 

PLN ..... 25,000,000 0 0 25,000,000 

RMB .... 50,000,000 0 50,000,000 50,000,000 

RUB .... 0 0 0 125,000,000 

TRY ..... * 6,250,000 0 0 * 10,000,000 

All values that do not have an asterisk are denominated in the currency of the left hand side. 

All values that have an asterisk (*) are denominated in the currency indicated on the top of the table. 

OTHER COMMODITY SWAPS

Related futures contract Initial appropriate minimum block size Units 

AB NIT Basis (ICE) ................................................................................................. 62,500 .................................................... MMBtu. 

Brent Crude (ICE and NYMEX) .............................................................................. 25,000 .................................................... bbl. 

Cheese (CME) ......................................................................................................... 400,000 .................................................. lbs. 

Class III Milk (CME) ................................................................................................ NO BLOCKS. 

Cocoa (ICE and NYSE LIFFE and NYMEX) .......................................................... 1,000 ...................................................... metric tons. 

Coffee (ICE and NYMEX) ....................................................................................... 3,750,000 ............................................... lbs. 

Copper (COMEX) .................................................................................................... 625,000 .................................................. lbs. 

Corn (CBOT) ........................................................................................................... NO BLOCKS. ......................................... bushels. 

Cotton No. 2 (ICE and NYMEX) ............................................................................. 5,000,000 ............................................... lbs. 

Distillers’ Dried Grain (CBOT) ................................................................................. 1,000 ...................................................... short tons. 

Dow Jones-UBS Commodity Index (CBOT) ........................................................... 30,000 times index ................................. dollars. 

Ethanol (CBOT) ....................................................................................................... 290,000 .................................................. gallons. 

Feeder Cattle (CME) ............................................................................................... NO BLOCKS. 

Frost Index (CME) ................................................................................................... 200,000 times index ............................... euros. 

Frozen Concentrated Orange Juice (ICE) .............................................................. NO BLOCKS. 

Gold (COMEX and NYSE Liffe) .............................................................................. 2,500 ...................................................... troy oz. 

Goldman Sachs Commodity Index (GSCI), GSCI Excess Return Index (CME) .... 5,000 times index ................................... dollars. 

Gulf Coast Sour Crude Oil (NYMEX) ...................................................................... 5,000 ...................................................... bbl. 

Hard Red Spring Wheat (MGEX) ............................................................................ NO BLOCKS. 

Hard Winter Wheat (KCBT) ..................................................................................... NO BLOCKS. 

Henry Hub Natural Gas (NYMEX) .......................................................................... 500,000 .................................................. MMBtu. 

HSC Basis (ICE and NYMEX) ................................................................................ 62,500 .................................................... MMBtu. 

Hurricane Index (CME) ............................................................................................ 20,000 times index ................................. dollars. 

Chicago Basis (ICE and NYMEX) ........................................................................... 62,500 .................................................... MMBtu. 

Lean Hogs (CME) .................................................................................................... NO BLOCKS. 

Light Sweet Crude Oil (NYMEX) ............................................................................. 50,000 .................................................... bbl. 

Live Cattle (CME) .................................................................................................... NO BLOCKS.

Mid-Columbia Day-Ahead Off-Peak Fixed Price (ICE) ........................................... 625 ......................................................... Mwh. 

Mid-Columbia Day-Ahead Peak Fixed Price (ICE) ................................................. 4,000 ...................................................... Mwh. 

New York Harbor RBOB (Blendstock) Gasoline (NYMEX) .................................... 1,050,000 ............................................... gallons. 

New York Harbor No. 2 Heating Oil (NYMEX) ....................................................... 1,050,000 ............................................... gallons. 

NWP Rockies Basis (ICE and NYMEX) .................................................................. 62,500 .................................................... MMBtu. 

Oats (CBOT) ............................................................................................................ NO BLOCKS. 

Palladium (NYMEX) ................................................................................................. 1,000 ...................................................... troy oz. 

PG&E Citygate Basis (ICE and NYMEX) ................................................................ 62,500 .................................................... MMBtu. 

PJM Western Hub Real Time Off-Peak Fixed Price (ICE) ..................................... 3,900 ...................................................... Mwh. 

PJM Western Hub Real Time Peak Fixed Price (ICE) ........................................... 8,000 ...................................................... Mwh. 

Platinum (NYMEX) .................................................................................................. 500 ......................................................... troy oz. 

Rainfall Index (CME) ............................................................................................... 10,000 times index ................................. dollars. 

Rough Rice (CBOT) ................................................................................................ NO BLOCKS. 

Silver (COMEX and NYSE Liffe) ............................................................................. 125,000 .................................................. troy oz. 

Snowfall Index (CME) .............................................................................................. 10,000 times index ................................. dollars. 

Socal Border Basis (ICE and NYMEX) ................................................................... 62,500 .................................................... MMBtu. 

Soybean (CBOT) ..................................................................................................... NO BLOCKS. 

Soybean Meal (CBOT) ............................................................................................ NO BLOCKS. 

Soybean Oil (CBOT) ............................................................................................... NO BLOCKS. 

SP–15 Day-Ahead Peak Fixed Price (ICE) ............................................................ 4,000 ...................................................... Mwh. 

SP–15 Day-Ahead Off-Peak Fixed Price (ICE) ...................................................... 625 ......................................................... Mwh. 

Sugar #11 (ICE and NYMEX) ................................................................................. 5,000 ...................................................... metric tons. 

Sugar #16 (ICE) ...................................................................................................... NO BLOCKS.

Temperature Index (CME) ....................................................................................... 400 times index ...................................... currency units. 

U.S. Dollar Cash Settled Crude Palm Oil (CME) .................................................... 250 ......................................................... metric tons. 

Waha Basis (ICE and NYMEX) ............................................................................... 62,500 .................................................... MMBtu. 

Wheat (CBOT) ......................................................................................................... NO BLOCKS.

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Federal Register / Vol. 78, No. 136 / Tuesday, July 16, 2013 / Rules and Regulations 42439 

1See, e.g., FINRA Regulatory Notice 08–66 (Retail 

Foreign Currency Exchange) (November 2008) 

available at: http://www.finra.org/web/groups/ 

industry/@ip/@reg/@notice/documents/notices/ 

p117362.pdf (‘‘FINRA Forex Notice’’). 

2See Investor Bulletin: Foreign Currency 

Exchange (Forex) Trading for Individual Investors 

(July 2011), available at http://www.sec.gov/ 

investor/alerts/forextrading.pdf (‘‘Forex Bulletin’’). 

See also Retail Foreign Exchange Transactions, 

Exchange Act Release No. 64874 (July 13, 2011), 76 

FR 41676 (July 15, 2011) (‘‘2011 Interim Rule 

Release’’) at 41677 (noting that media reports have 

highlighted potential abuses). 

3See, e.g., Press Release, Commodities Futures 

Trading Commission (‘‘CFTC’’), CFTC Releases 

Final Rules Regarding Retail Forex Transactions 

(Aug. 30, 2010) (available at http://www.cftc.gov/ 

PressRoom/PressReleases/pr5883-10.html?dbk) 

(noting that retail forex is the largest area of retail 

fraud that the CFTC oversees). 

4See Regulation of Off-Exchange Retail Foreign 

Exchange Transactions and Intermediaries, 75 FR 

3282 (Jan. 20, 2010) (‘‘CFTC Proposing Release’’) for 

a detailed discussion by the CFTC of the 

amendments to the CEA regarding retail forex. 

5See 7 U.S.C. 2(c)(2)(B)(i). 

6See 7 U.S.C. 2(c)(2)(B)(i)(I). 

7See Further Definition of ‘‘Swap,’’ ‘‘SecurityBased Swap,’’ and ‘‘Security/Based Swap 

Agreement’’; Mixed Swaps; Security/Based Swap 

Agreement Recordkeeping; Final Rule, Exchange 

Act Release No. 67453 (July 18, 2012), 77 FR 48207 

(Aug. 13, 2012) (‘‘Products Definitions Release’’). 

8 7 U.S.C. 2(c)(2)(B)(i). 

9See 2011 Interim Rule Release. See also 

Extension of Interim Final Temporary Rule on 

Retail Foreign Exchange Transactions, Exchange 

Act Release No. 67405 (July 11, 2012), 77 FR 41671 

(July 16, 2012) (‘‘2012 Extension Release’’). 

10 7 U.S.C. 2(c)(2)(E). 

11 7 U.S.C. 2(c)(2)(E)(i), as amended by § 742(c) of 

the Dodd-Frank Act, defines a ‘‘Federal regulatory 

agency’’ to mean the CFTC, the Securities and 

Exchange Commission, an appropriate Federal 

banking agency (as defined in section 3(q) of the 

Federal Deposit Insurance Act (12 U.S.C. 1813(q))), 

the National Credit Union Association, and the 

Farm Credit Administration. 

12 7 U.S.C. 2(c)(2)(B)(i)(II). 

13 ‘‘Eligible contract participant’’ is defined in 

CEA section 1a(18), as re-designated and amended 

by section 721 of the Dodd-Frank Act. See Public 

Law 111–203, § 721 (amending CEA section 1a). 

The CEA’s definition of ECP generally comprises 

regulated persons; entities that meet a specified 

total asset test (e.g., a corporation, partnership, 

Continued 

Dated: July 10, 2013. 

Christopher J. Kirkpatrick, 

Deputy Secretary of the Commission. 

[FR Doc. 2013–16938 Filed 7–15–13; 8:45 am] 

BILLING CODE 6351–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 240 

[Release No. 34–69964; File No. S7–30–11] 

RIN 3235–AL19 

Retail Foreign Exchange Transactions 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commission is adopting 

a rule to permit a registered brokerdealer to engage in a retail forex 

business, provided that the brokerdealer complies with the Securities 

Exchange Act of 1934, the rules and 

regulations thereunder, and the rules of 

the self-regulatory organization(s) of 

which the broker-dealer is a member 

insofar as they are applicable to retail 

forex transactions. The Commission is 

adopting Rule 15b12–1 substantially in 

the form previously adopted as an 

interim final temporary rule and is 

providing that the rule will expire on 

July 31, 2016. 

DATES: This rule is effective from July 

16, 2013 through July 31, 2016. 

FOR FURTHER INFORMATION CONTACT: 

Catherine Moore, Senior Special 

Counsel; Shaheen Haji Zuver, Special 

Counsel; or Stephen J. Benham, 

Attorney-Adviser, at (202) 551–5550 or 

Division of Trading and Markets, 

Securities and Exchange Commission, 

100 F Street NE., Washington, DC 

20549–7010. 

SUPPLEMENTARY INFORMATION: The 

Commission is adopting Rule 15b12–1 

under the Exchange Act, to permit a 

registered broker or dealer (‘‘brokerdealer’’) to engage in retail forex 

transactions, as such transactions are 

defined below. Unless the Commission 

acts further, the rule will expire and no 

longer be effective on July 31, 2016. 

I. Background 

A. Retail Foreign Exchange 

The foreign currency exchange 

(‘‘forex’’) market is a large and liquid 

market used by banks, insurance 

companies, large corporations, and 

other large financial institutions to trade 

in risks associated with fluctuations in 

foreign currency rates. In recent years, a 

secondary off-exchange market for forex 

has developed for retail customers.1

Many customers may view forex as a 

possible investment opportunity or 

portfolio risk management strategy. 

However, the Commission, its staff,2

and other regulatory authorities 3 have 

cautioned investors that the forex 

market poses risks for retail customers. 

The regulatory oversight of the retail 

forex market has developed primarily 

through a series of amendments to the 

Commodity Exchange Act (‘‘CEA’’).4

Transactions commonly referred to as 

‘‘retail forex transactions’’ are foreign 

exchange transactions with persons who 

are retail customers (persons who are 

not eligible contract participants 

(‘‘ECPs’’) as defined in the CEA) and 

that settle on a T+3 or greater timeline.5

Significantly, certain types of 

transactions are not ‘‘retail forex 

transactions’’ under the CEA, even 

where one of the counterparties is a 

person that is not an ECP. These 

transactions include: (i) ‘‘spot forex 

transactions’’ where one currency is 

bought for another and the two 

currencies are exchanged within two 

days; (ii) forward contracts that create 

an enforceable obligation to make or 

take delivery, provided that each 

counterparty has the ability to deliver 

and accept delivery in connection with 

its line of business; and (iii) options that 

are executed or traded on a national 

securities exchange registered pursuant 

to section 6(a) of the Exchange Act.6 In 

addition, and as discussed in more 

detail below, conversion trades—trades 

in which a foreign exchange transaction 

facilitates the settlement of a foreign 

security transaction—are spot forex 

transactions and, therefore, are outside 

the scope of the CEA prohibition and 

this rulemaking.7

Only certain regulated entities may 

act as counterparty to foreign exchange 

transactions.8 These approved entities 

include Futures Commission Merchants 

(‘‘FCMs’’), Retail Foreign Exchange 

Dealers (‘‘RFEDs’’) registered with the 

CFTC, banks, and insurance companies, 

as well as broker-dealers registered with 

the Commission. 

The Dodd-Frank Wall Street Reform 

and Consumer Protection Act (‘‘DoddFrank Act’’) further amended the CEA to 

limit potential abuses in the retail forex 

market by prohibiting retail forex 

transactions as of July 16, 2011, in the 

absence of a rulemaking permitting 

retail forex transactions by the relevant 

Federal regulatory agency. The 

prohibition in the CEA applies to retail 

forex transactions with registered 

broker-dealers, and the Commission 

adopted an Interim Final Temporary 

Rule on July 13, 2011 (‘‘Interim Rule’’), 

to allow retail forex transactions with 

broker-dealers under terms and 

conditions prescribed by the 

Commission.9

B. Amendments to the Commodity 

Exchange Act 

As amended by the Dodd-Frank Act,10

the CEA provides that a person for 

which there is a Federal regulatory 

agency,11 including a broker-dealer 

registered under section 15(b) (except 

pursuant to paragraph (11) thereof) or 

15C of the Exchange Act,12 shall not 

enter into, or offer to enter into, a 

transaction described in section 

2(c)(2)(B)(i)(I) of the CEA with a person 

who is not an ECP,13 except pursuant to 

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