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[Federal Register Volume 76, Number 86 (Wednesday, May 4, 2011)]
[Proposed Rules]
[Pages 25274-25277]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-10884]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Chapter I

Reopening and Extension of Comment Periods for Rulemakings 
Implementing the Dodd-Frank Wall Street Reform and Consumer Protection 
Act

AGENCY: Commodity Futures Trading Commission.

ACTION: Reopening and extension of comment periods.

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SUMMARY: Since the enactment of the Wall Street Reform and Consumer 
Protection Act (the ``Dodd-Frank Act'') on July 21, 2010, the Commodity 
Futures Trading Commission (``Commission'') has published in the 
Federal Register a significant number of notices of proposed rulemaking 
to implement the provisions of the Dodd-Frank Act that establish a 
comprehensive new framework for the regulation of swaps. In order to 
provide interested parties with an additional opportunity to 
participate in these Dodd-Frank Act rulemakings and comment on the 
proposed new regulatory framework, the Commission is reopening or 
extending the comment period for many of its proposed rulemakings. The 
Commission is also requesting comment on the order in which it should 
consider final rulemakings made under the Dodd-Frank Act.

DATES: For those rulemakings listed herein for which the comment period 
has closed at the time of publication of this notice, the comment 
period is re-opened until June 3, 2011. For those rulemakings listed 
herein for which the comment period closes during the extension's 
comment period, the comment period is extended until June 3, 2011. The 
comment period of any rulemaking subject of this extension that closes 
after the extension's comment period shall remain open until the 
originally published closing date. All comments that were received 
after the close of the originally established comment period of each of 
the reopened rulemakings will be treated as if they were received 
during the reopened comment periods and need not be resubmitted.
    The comment period regarding the order in which the Commission 
should consider final rules will be open until June 3, 2011.

ADDRESSES: Comments may be submitted by any of the following methods:
     Agency Web site, via its Comments Online process at http://comments.cftc.gov. Follow the instructions for submitting comments 
through the Web site, and submit all comments through the ``submit 
comment'' link associated with this extension.
     Mail: Send to David A. Stawick, Secretary, Commodity 
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street, 
NW., Washington, DC 20581.
     Hand Delivery/Courier: Same as mail above.
    Please submit your comments using only one method. You may submit 
comments on individual rulemakings subject of this extension, on the 
intersection of more than one rulemaking, or on the proposed 
rulemakings from a global perspective. Comments may be submitted on any 
individual rulemaking, on any combination of rulemakings, or on the 
order and timing of the Commission's final rulemakings, including the 
effective and compliance dates that may be appropriate for the various 
rulemakings.
    To ensure that your comments are considered to the fullest extent 
possible by the Commission, you should identify each of the proposed 
rulemakings to which your comment applies by providing the name and RIN 
number associated with each rulemaking. Rulemaking RIN numbers may be 
found on the Commission's Web site at http://comments.cftc.gov/PublicComments/ReleasesWithComments.aspx. Comments that address the 
rulemakings from a global perspective should be identified with the 
phrase ``global comment'' in the subject line. Additionally, as 
provided above, all comments submitted through the Commission's 
Comments Online process should be transmitted via the ``submit 
comment'' link associated with this rulemaking. You need not, and to 
ensure that all comments addressing more than one rulemaking are

[[Page 25275]]

considered fully by the Commission you should not, submit comments 
addressing more than one rulemaking to any of the individual 
rulemakings listed on the Commission's ``public comments'' or ``open 
comment periods'' Web pages.
    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 may be 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 
Sec.  145.9 of the Commission's regulations, 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 http://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: On this release, Beverly E. Loew, 
Assistant General Counsel, Office of the General Counsel, Commodity 
Futures Trading Commission, 1155 21st Street, NW., Washington, DC 
20581; 202-418-5648; or bloew@cftc.gov. On any particular rulemaking, 
the Commission staff members listed in the associated notice of 
proposed rulemaking.

SUPPLEMENTARY INFORMATION: 

I. Background

    President Obama signed the Dodd-Frank Act on July 21, 2010.\1\ 
Title VII of the Dodd-Frank Act \2\ amended the Commodity Exchange Act 
(``CEA'') \3\ to establish a comprehensive new regulatory framework for 
swaps and security-based swaps. The legislation was enacted to reduce 
risk, increase transparency, and promote market integrity within the 
financial system by, among other things: (1) Providing for the 
registration and comprehensive regulation of swap dealers and major 
swap participants; (2) imposing clearing and trade execution 
requirements on standardized derivative products; (3) creating robust 
recordkeeping and real-time reporting regimes; and (4) enhancing the 
Commission's rulemaking and enforcement authorities with respect to, 
among others, all registered entities and intermediaries subject to the 
Commission's oversight.
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    \1\ See Dodd-Frank Wall Street Reform and Consumer Protection 
Act, Public Law 111-203, 124 Stat. 1376 (2010). The text of the 
Dodd-Frank Act may be accessed at http://www.cftc.gov./
LawRegulation/OTCDERIVATIVES/index.htm.
    \2\ Pursuant to section 701 of the Dodd-Frank Act, title VII may 
be cited as the ``Wall Street Transparency and Accountability Act of 
2010.''
    \3\ 7 U.S.C. 1 et seq.
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    Over the past several months the Commission has proposed a number 
of rulemakings to implement the Dodd-Frank Act. With respect to these 
rulemakings, the Commission has consulted and coordinated with the 
Securities and Exchange Commission and other Federal regulators, held 
hundreds of meetings with market participants and other members of the 
public interested in the proposed rulemakings, and received thousands 
of comments on these proposed rulemakings. At this point, the 
regulatory requirements that have been proposed by the Commission 
present a substantially complete mosaic of the Commission's proposed 
regulatory framework for swaps under the Dodd-Frank Act.

II. Reopening and Extension of Comment Periods and Request for Comment

    In light of this substantially complete mosaic, the Commission is 
reopening or extending the comment period of many of its proposed 
rulemakings in order to provide the public with an additional 
opportunity to comment on the proposed new regulatory framework for 
swaps, either in part or as a whole.
    The Commission also specifically seeks comments on the costs and 
benefits of the proposed rulemakings, individually, in combination, or 
globally. In particular, the Commission reiterates its request for 
additional quantitative or qualitative information relating to the 
costs and benefits of the proposed rules.
    The comment periods for the following rulemakings are being 
extended:

------------------------------------------------------------------------
          Proposed               Title of rulemaking          Closed
------------------------------------------------------------------------
10/14/2010.................  Financial Resources              12/13/2010
                              Requirements for
                              Derivatives Clearing
                              Organizations.
10/18/2010.................  Requirements for                 11/17/2010
                              Derivatives Clearing
                              Organizations, Designated
                              Contract Markets, and Swap
                              Execution Facilities
                              Regarding the Mitigation
                              of Conflicts of Interest.
10/26/2010.................  Agricultural Commodity           11/26/2010
                              Definition.
11/2/2010..................  Process for Review of Swaps        1/3/2011
                              for Mandatory Clearing.
11/3/2010..................  Investment of Customer            12/3/2010
                              Funds and Funds Held in an
                              Account for Foreign
                              Futures and Foreign
                              Options Transactions.
11/17/2010.................  Implementation of Conflicts       1/18/2011
                              of Interest Policies and
                              Procedures by Futures
                              Commission Merchants and
                              Introducing Brokers.
11/19/2010.................  Registration of Foreign           1/18/2011
                              Boards of Trade.
11/19/2010.................  Designation of a Chief            1/18/2011
                              Compliance Officer;
                              Required Compliance
                              Policies; and Annual
                              Report of a Futures
                              Commission Merchant, Swap
                              Dealer, or Major Swap
                              Participant.
11/23/2010.................  Regulations Establishing          1/24/2011
                              and Governing the Duties
                              of Swap Dealers and Major
                              Swap Participants.
11/23/2010.................  Implementation of Conflicts       1/24/2011
                              of Interest Policies and
                              Procedures by Swap Dealers
                              and Major Swap
                              Participants.
11/23/2010.................  Registration of Swap              1/24/2011
                              Dealers and Major Swap
                              Participants.
12/3/2010..................  Protection of Collateral of        2/1/2011
                              Counterparties to
                              Uncleared Swaps; Treatment
                              of Securities in a
                              Portfolio Margining
                              Account in a Commodity
                              Broker Bankruptcy.
12/7/2010..................  Real-Time Public Reporting         2/7/2011
                              of Swap Transaction Data.
12/8/2010..................  Swap Data Recordkeeping and        2/7/2011
                              Reporting Requirements.
12/9/2010..................  Reporting, Recordkeeping,          2/7/2011
                              and Daily Trading Records
                              Requirements for Swap
                              Dealers and Major Swap
                              Participants.
12/13/2010.................  General Regulations and           2/11/2011
                              Derivatives Clearing
                              Organizations.
12/15/2010.................  Information Management            2/14/2011
                              Requirements for
                              Derivatives Clearing
                              Organizations.

[[Page 25276]]

 
12/21/2010.................  17 CFR Part 1 Securities          2/22/2011
                              and Exchange Commission 17
                              CFR Part 240 Further
                              Definition of ``Swap
                              Dealer,'' ``Security-Based
                              Swap Dealer,'' ``Major
                              Swap Participant,''
                              ``Major Security-Based
                              Swap Participant'' and
                              ``Eligible Contract
                              Participant''.
12/22/2010.................  Business Conduct Standards        2/22/2011
                              for Swap Dealers and Major
                              Swap Participants With
                              Counterparties.
12/22/2010.................  Core Principles and Other         4/18/2011
                              Requirements for
                              Designated Contract
                              Markets.
12/23/2010.................  Swap Data Repositories.....       2/22/2011
12/23/2010.................  End-User Exception to             2/22/2011
                              Mandatory Clearing of
                              Swaps.
12/28/2010.................  Confirmation, Portfolio           2/28/2011
                              Reconciliation, and
                              Portfolio Compression
                              Requirements for Swap
                              Dealers and Major Swap
                              Participants.
1/6/2011...................  Governance Requirements for        3/7/2011
                              Derivatives Clearing
                              Organizations, Designated
                              Contract Markets, and Swap
                              Execution Facilities;
                              Additional Requirements
                              Regarding the Mitigation
                              of Conflicts of Interest.
1/7/2011...................  Core Principles and Other          3/8/2011
                              Requirements for Swap
                              Execution Facilities.
1/20/2011..................  Risk Management                   4/25/2011
                              Requirements for
                              Derivatives Clearing
                              Organizations.
2/3/2011...................  Commodity Options and              4/4/2011
                              Agricultural Swaps.
2/8/2011...................  Swap Trading Relationship         4/11/2011
                              Documentation Requirements
                              for Swap Dealers and Major
                              Swap Participants.
2/8/2011...................  Orderly Liquidation               4/11/2011
                              Termination Provision in
                              Swap Trading Relationship
                              Documentation for Swap
                              Dealers and Major Swap
                              Participants.
3/3/2011...................  Amendments to Commodity            5/2/2011
                              Pool Operator and
                              Commodity Trading Advisor
                              Regulations Resulting From
                              the Dodd-Frank Act.
3/9/2011...................  Registration of                    5/9/2011
                              Intermediaries.
3/10/2011..................  Requirements for                  4/11/2011
                              Processing, Clearing, and
                              Transfer of Customer
                              Positions.
------------------------------------------------------------------------

    Notwithstanding the foregoing, commenters may submit, and the 
Commission will consider, comments on any aspects of the rulemakings, 
including comments on individual rulemakings subject of this extension, 
on the intersection of any combination of these rulemakings, or on the 
proposed rulemakings from a global perspective. All comments that were 
received after the close of the originally established comment period 
of each of the reopened rulemakings will be treated as if they were 
received during the reopened comment periods and need not be 
resubmitted.
    Finally, the Commission is requesting comment on the order in which 
it should consider the Dodd-Frank final rulemakings.

    Issued in Washington, DC, this 27th day of April 2010, by the 
Commission.
David A. Stawick,
Secretary of the Commission.

Appendices to Reopening and Extension of Comment Periods for 
Rulemakings Implementing the Dodd-Frank Wall Street Reform and Consumer 
Protection Act--Commission Voting Summary and Statements of 
Commissioners

    Note:  The following appendices will not appear in the Code of 
Federal Regulations.

Appendix 1--Commission Voting Summary

    On this matter, Chairman Gensler and Commissioners Dunn, Chilton 
and O'Malia voted in the affirmative; Commissioner Sommers voted in 
the negative.

Appendix 2--Statement of Commissioner Scott D. O'Malia

    I concur with the Commission's proposal to re-open the comment 
period for certain proposed rulemakings made under the Dodd-Frank 
Act and to request comment on the sequencing of the Commission's 
consideration of final rules. Following careful consideration of 
comments regarding the sequencing, the Commission should publish in 
the Federal Register the order in which it intends to take up 
consideration of the Dodd-Frank final rules. Doing so will help 
ensure that our processes are fully transparent and well informed.
    Similarly, I strongly urge the Commission to propose a full 
implementation schedule, request comment and publish an adopted 
schedule in the Federal Register so that the market and public will 
have the certainty they need to make budgeting, investment and 
hiring decisions. Commenters should urge the Commission to publish a 
full implementation schedule by submitting comments to this 
rulemaking.
    In order to facilitate debate, I have proposed the following 
sequencing of the Commission's consideration of final rules. I 
strongly recommend that the public comment on this proposal or 
recommend an alternative.

Phase I

 Federal Energy Regulatory Commission (FERC) Memorandums of 
Understanding
 Whistleblower
 Fair Credit Reporting Act (FCRA) Rules
 Reliance on Credit Ratings

Swap Data Repository

 Data Recordkeeping
 Large Trader reporting
 Investment advisor reporting
 Pre-enactment & Transition swaps
 Governance of SDRs
 Process to define a clearable swap

Phase II

Swap Dealer (SD)/Major Swap Participant (MSP)

 End-User Exemption
 SD/MSP Registration
 Small Bank Exemption Rule
 Business Conduct Standards for SD/MSP
    Internal business conduct
     Documentation
     Conflicts of Interest
     Capital and Margin
    External Business conduct
 Inter-Affiliate Transactions

Products Rules

 Agricultural Swaps
 Swaps
 Agricultural commodity definition

Phase III

 Position Limits
 Clearing
    Designated Clearing Organization (DCO) Core Principles
    Systemically Important Designated Clearing Organizations 
(SIDCOs)
    Governance of DCO
 Execution
    Real-time Reporting
    Swaps Execution Facility (SEF) & Block Trade Rule
    Designated Contract Market (DCM)
    Foreign Board of Trade (FBOT)
    Part 40 Rule Certification
    Governance of SEFs & DCMs

Phase IV

 Clearing
    Rule 1.25
    Segregation and Bankruptcy
    Portfolio Margining
 Anti-Manipulation
 Disruptive Trading
 Volker Rule 619
 Commodity Pool Operator (CPO)/
Commodity Trading Adviser (CTA) Registration & conduct rules

[[Page 25277]]

 All Conforming Rules

[FR Doc. 2011-10884 Filed 5-3-11; 8:45 am]
BILLING CODE 6351-01-P
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