Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations 44259 

procedures eliminates the need of 

controlled airspace. Since this action 

eliminates the impact of controlled 

airspace on users of the National 

Airspace System in the vicinity of 

Willow Grove, PA, notice and public 

procedures under 5 U.S.C. 553(b) are 

unnecessary. 

Class D and Class E airspace 

designations are published in 

Paragraphs 5000, 6004, respectively, of 

FAA Order 7400.9U, dated August 15, 

2010, and effective September 15, 2010, 

which is incorporated by reference in 14 

CFR 71.1. The Class D and E airspace 

designations listed in this document 

will be published subsequently in the 

Order. 

The FAA has determined that this 

regulation only involves an established 

body of technical regulations for which 

frequent and routine amendments are 

necessary to keep them operationally 

current. It, therefore, (1) is not a 

‘‘significant regulatory action’’ under 

Executive Order 12866; (2) is not a 

‘‘significant rule’’ under DOT 

Regulatory Policies and Procedures (44 

FR 11034; February 26, 1979); and (3) 

does not warrant preparation of a 

Regulatory Evaluation as the anticipated 

impact is so minimal. Since this is a 

routine matter that will only affect air 

traffic procedures and air navigation, it 

is certified that this rule, when 

promulgated, would not have a 

significant economic impact on a 

substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

The FAA’s authority to issue rules 

regarding aviation safety is found in 

Title 49 of the United States Code. 

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. 

This rulemaking is promulgated 

under the authority described in 

Subtitle VII, Part, A, Subpart I, Section 

40103. Under that section, the FAA is 

charged with prescribing regulations to 

assign the use of airspace necessary to 

ensure the safety of aircraft and the 

efficient use of airspace. This regulation 

is within the scope of that authority as 

it removes controlled airspace at Willow 

Grove, PA. 

Lists of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (air). 

Adoption of the Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

amends 14 CFR Part 71 as follows: 

PART 71—DESIGNATION OF CLASS A, 

B, C, D, AND E AIRSPACE AREAS; AIR 

TRAFFIC SERVICE ROUTES; AND 

REPORTING POINTS 

■ 1. The authority citation for Part 71 

continues to read as follows: 

Authority: 49 U.S.C. 106(g); 40103, 40113, 

40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– 

1963 Comp., p. 389. 

§ 71.1 [Amended] 

■ 2. The incorporation by reference in 

14 CFR 71.1 of Federal Aviation 

Administration Order 7400.9U, 

Airspace Designations and Reporting 

Points, signed August 18, 2010, and 

effective September 15, 2010, is 

amended as follows: 

Paragraph 5000 Class D Airspace 

* * * * * 

AEA PA D Willow Grove, PA [Removed] 

Paragraph 6004 Class E airspace designated 

as an extension to a Class D surface area. 

* * * * * 

AEA PA E4 Willow Grove, PA [Removed] 

Issued in College Park, Georgia, on July 15, 

2011. 

Mark D. Ward, 

Manager, Operations Support Group, Eastern 

Service Center, Air Traffic Organization. 

[FR Doc. 2011–18667 Filed 7–22–11; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF COMMERCE 

Bureau of Industry and Security 

15 CFR Part 744 

[Docket No. 110502273–1368–01] 

RIN 0694–AF21 

Addition of Certain Persons on the 

Entity List: Addition of Persons Acting 

Contrary to the National Security or 

Foreign Policy Interests of the United 

States 

AGENCY: Bureau of Industry and 

Security, Commerce. 

ACTION: Final rule. 

SUMMARY: This rule amends the Export 

Administration Regulations (EAR) by 

adding six persons to the Entity List 

(Supplement No. 4 to Part 744) on the 

basis of section 744.11 of the EAR. The 

persons who are added to the Entity List 

have been determined by the U.S. 

Government to be acting contrary to the 

national security or foreign policy 

interests of the United States. These 

persons will be listed under the 

following two destinations on the Entity 

List: Hong Kong and Lebanon. 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to parties 

identified on the Entity List require a 

license from the Bureau of Industry and 

Security (BIS) and that availability of 

license exceptions in such transactions 

is limited. 

DATES: Effective Date: This rule is 

effective July 25, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Karen Nies-Vogel, Chair, End-User 

Review Committee, Office of the 

Assistant Secretary, Export 

Administration, Bureau of Industry and 

Security, Department of Commerce, 

Phone: (202) 482–5991, Fax: (202) 482– 

3911, E-mail: ERC@bis.doc.gov. 

SUPPLEMENTARY INFORMATION: 

Background 

The Entity List provides notice to the 

public that certain exports, reexports, 

and transfers (in-country) to entities 

identified on the Entity List require a 

license from BIS and that the 

availability of license exceptions in 

such transactions is limited. Entities are 

placed on the Entity List on the basis of 

certain sections of part 744 (Control 

Policy: End-User and End-Use Based) of 

the EAR. 

The End-User Review Committee 

(ERC), composed of representatives of 

the Departments of Commerce (Chair), 

State, Defense, Energy and, when 

appropriate,Treasury, makes all 

decisions regarding additions to, 

removals from, or other changes to the 

Entity List. The ERC makes all decisions 

to add an entry to the Entity List by 

majority vote and all decisions to 

remove or modify an entry by 

unanimous vote. 

ERC Entity List Decisions 

This rule implements the decision of 

the ERC to add six persons to the Entity 

List on the basis of section 744.11 

(License requirements that apply to 

entities acting contrary to the national 

security or foreign policy interests of the 

United States) of the EAR. The six 

entries added to the Entity List consist 

of two persons in Hong Kong and four 

persons in Lebanon. 

The ERC reviewed section 744.11(b) 

(Criteria for revising the Entity List) in 

making the determination to add these 

persons to the Entity List. Under that 

paragraph, persons for which there is 

reasonable cause to believe, based on 

specific and articulable facts, that the 

persons have been involved, are 

involved, or pose a significant risk of 

being or becoming involved in, 

activities that are contrary to the 

national security or foreign policy 


rmajette on DSK89S0YB1PROD with RULES
44260 Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations 

interests of the United States and those 

acting on behalf of such persons may be 

added to the Entity List pursuant to 

section 744.11. Paragraphs (b)(1)–(b)(5) 

include an illustrative list of activities 

that could be contrary to the national 

security or foreign policy interests of the 

United States. 

Pursuant to 15 CFR 744.11(b)(2) and 

15 CFR 744.11(b)(5), the persons are 

being added to the Entity List based on 

evidence that they have engaged in 

actions that could enhance the military 

capability of Iran, a country designated 

by the U.S. Secretary of State as having 

repeatedly provided support for acts of 

international terrorism. These persons 

are also added because their overall 

conduct poses a risk of ongoing EAR 

violations. The six companies are added 

based on evidence that they purchased 

electronic components from U.S. firms 

and then resold the components to 

companies in Iran without the required 

U.S. export license. The same 

components were later found in Iraq in 

unexploded improvised explosive 

devices. 

Additions to the Entity List 

This rule adds six persons to the 

Entity List on the basis of section 744.11 

of the EAR. For all of the six persons 

added to the Entity List, the ERC 

specifies a license requirement for all 

items subject to the EAR and establishes 

a license application review policy of a 

presumption of denial. The license 

requirement applies to any transaction 

in which items are to be exported, 

reexported, or transferred (in-country) to 

such persons or in which such persons 

act as purchaser, intermediate 

consignee, ultimate consignee, or enduser. In addition, no license exceptions 

are available for exports, reexports, or 

transfers (in-country) to those persons 

being added to the Entity List. 

Specifically, this rule adds the following 

six persons to the Entity List: 

Hong Kong 

(1) Biznest, LTD, Room 927 9/F Far 

East Consortium Building, 121 Des 

Voeux Road C, Central District, Hong 

Kong; and 

(2) Yeraz, LTD, Room 927 9/F Far East 

Consortium Building, 121 Des Voeux 

Road C, Central District, Hong Kong. 

Lebanon 

(1) Micro Power Engineering Group, 

a.k.a MPEG, Anwar Street, Abou Karam 

Building, 1st Floor, Jdeidet El Metn, 

Beirut, Lebanon; 

(2) Narinco Micro Sarl, Dedeyan 

Center, Dora Boulevard Street, 

Bauchrieh Metn, Lebanon; 

(3) Serop Elmayan and Sons Lebanon, 

Ground Floor, Aramouni Building, 

Property Number 1731, Fleuve Street, 

Mar Mekhael Sector, Beirut, Lebanon; 

and 

(4) Serpico Offshore Sarl, Ground 

Floor, Aramouni Building, Property 

Number 1731, Fleuve Street, Mar 

Mekhael Sector, Beirut, Lebanon. 

Savings Clause 

Shipments of items removed from 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) as a result of this regulatory 

action that were on dock for loading, on 

lighter, laden aboard an exporting or 

reexporting carrier, or en route aboard a 

carrier to a port of export or reexport, on 

July 25, 2011, pursuant to actual orders 

for export or reexport to a foreign 

destination, may proceed to that 

destination under the previous 

eligibility for a License Exception or 

export or reexport without a license 

(NLR) so long as they are exported or 

reexported before August 9, 2011. Any 

such items not actually exported or 

reexported before midnight, on August 

9, 2011, require a license in accordance 

with the EAR. 

Although the Export Administration 

Act expired on August 20, 2001, the 

President, through Executive Order 

13222 of August 17, 2001, 3 CFR, 2001 

Comp., p. 783 (2002), as extended by the 

Notice of August 12, 2010, 75 FR 50681 

(August 16, 2010), has continued the 

Export Administration Regulations in 

effect under the International 

Emergency Economic Powers Act. 

Rulemaking Requirements 

1. Executive Orders 13563 and 12866 

direct agencies to assess all costs and 

benefits of available regulatory 

alternatives and, if regulation is 

necessary, to select regulatory 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety 

effects, distributive impacts, and 

equity). Executive Order 13563 

emphasizes the importance of 

quantifying both costs and benefits, of 

reducing costs, of harmonizing rules, 

and of promoting flexibility. This rule 

has been determined to be not 

significant for purposes of Executive 

Order 12866. 

2. Notwithstanding any other 

provision of law, no person is required 

to respond to nor be subject to a penalty 

for failure to comply with a collection 

of information, subject to the 

requirements of the Paperwork 

Reduction Act of 1995 (44 U.S.C. 3501 

et seq.) (PRA), unless that collection of 

information displays a currently valid 

Office of Management and Budget 

(OMB) Control Number. This regulation 

involves collections previously 

approved by the OMB under control 

numbers 0694–0088, ‘‘Multi-Purpose 

Application,’’ which carries a burden 

hour estimate of 43.8 minutes for a 

manual or electronic submission. Total 

burden hours associated with the 

Paperwork Reduction Act and Office of 

Management and Budget control 

number 0694–0088 are expected to 

increase slightly as a result of this rule. 

You may send comments regarding the 

collection of information associated 

with this rule, including suggestions for 

reducing the burden, to Jasmeet K. 

Seehra, Office of Management and 

Budget (OMB), by e-mail to 

Jasmeet_K._Seehra@omb.eop.gov, or by 

fax to (202) 395–7285. 

3. This rule does not contain policies 

with Federalism implications as that 

term is defined in Executive Order 

13132. 

4. The provisions of the 

Administrative Procedure Act (5 U.S.C. 

553) requiring notice of proposed 

rulemaking, the opportunity for public 

comment and a delay in effective date 

are inapplicable because this regulation 

involves a military or foreign affairs 

function of the United States. (See 5 

U.S.C. 553(a)(1)). BIS implements this 

rule to protect U.S. national security or 

foreign policy interests by preventing 

items from being exported, reexported, 

or transferred (in country) to the persons 

being added to the Entity List. If this 

rule were delayed to allow for notice 

and comment and a delay in effective 

date, then entities being added to the 

Entity List by this action would 

continue to be able to receive items 

without a license and to conduct 

activities contrary to the national 

security or foreign policy interests of the 

United States. In addition, because these 

parties may receive notice of the U.S. 

Government’s intention to place these 

entities on the Entity List once a final 

rule was published it would create an 

incentive for these persons to either 

accelerate receiving items subject to the 

EAR to conduct activities that are 

contrary to the national security or 

foreign policy interests of the United 

States and/or to take steps to set up 

additional aliases, change addresses and 

take other steps to try to limit the 

impact of the listing on the Entity List 

once a final rule was published. Further, 

no other law requires that a notice of 

proposed rulemaking and an 

opportunity for public comment be 

given for this rule. Because a notice of 

proposed rulemaking and an 

opportunity for public comment are not 

required to be given for this rule by 5 


rmajette on DSK89S0YB1PROD with RULES
Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations 44261 

U.S.C. 553, or by any other law, the 

analytical requirements of the 

Regulatory Flexibility Act, 5 U.S.C. 601 

et seq., are not applicable. 

List of Subjects in 15 CFR Part 744 

Exports, Reporting and recordkeeping 

requirements, Terrorism. 

Accordingly, part 744 of the Export 

Administration Regulations (15 CFR 

parts 730–774) is amended as follows: 

PART 744—[AMENDED] 

■ 1. The authority citation for 15 CFR 

part 744 continues to read as follows: 

Authority: 50 U.S.C. app. 2401 et seq.; 50 

U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; 

42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 

U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 

1978 Comp., p. 179; E.O. 12851, 58 FR 33181, 

3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 

FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. 

12947, 60 FR 5079, 3 CFR, 1995 Comp., p. 

356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 

Comp., p. 228; E.O. 13099, 63 FR 45167, 3 

CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR 

44025, 3 CFR, 2001 Comp., p. 783; E.O. 

13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 

786; Notice of August 12, 2010, 75 FR 50681 

(August 16, 2010); Notice of November 4, 

2010, 75 FR 68673 (November 8, 2010): 

Notice of January 13, 2011, 76 FR 3009, 

January 18, 2011. 

■ 2. Supplement No. 4 to part 744 is 

amended: 

■ a. By adding under Hong Kong, in 

alphabetical order, two Hong Kong 

entities; and 

■ b. By adding under, Lebanon, in 

alphabetical order, four Lebanese 

entities. 

The additions read as follows: 

SUPPLEMENT NO. 4 TO PART 744—ENTITY LIST

Country Entity License requirement License review policy Federal Register citation 

* * * * * * * 

HONG KONG 

* * * * * * * 

Biznest, LTD, Room 927 9/F 

Far East Consortium 

Building, 121 Des Voeux 

Road C, Central District, 

Hong Kong.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

* * * * * * * 

Yeraz, LTD, Room 927 9/F 

Far East Consortium 

Building, 121 Des Voeux 

Road C, Central District, 

Hong Kong.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

* * * * * * * 

LEBANON 

* * * * * * * 

Micro Power Engineering 

Group, a.k.a., MPEG, 

Anwar Street, Abou 

Karam Building, 1st Floor, 

Jdeidet El Metn, Beirut, 

Lebanon.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

* * * * * * * 

Narinco Micro Sarl, Dedeyan 

Center, Dora Boulevard 

Street, Bauchrieh Metn. 

Lebanon.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

Serop Elmayan and Sons 

Lebanon, Ground Floor, 

Aramouni Building, Property Number 1731, Fleuve 

Street, Mar Mekhael Sector, Beirut, Lebanon.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

Serpico Offshore Sarl, 

Ground Floor, Aramouni 

Building, Property Number 

1731 Fleuve Street, Mar 

Mekhael Sector, Beirut, 

Lebanon.

For all items subject to the 

EAR. (See § 744.11 of the 

EAR).

Presumption of denial .......... 76 FR [INSERT FR PAGE 

NUMBER], 7/25/11. 

* * * * * * * 


rmajette on DSK89S0YB1PROD with RULES
44262 Federal Register / Vol. 76, No. 142 / Monday, July 25, 2011 / Rules and Regulations 

1 Dodd-Frank Wall Street Reform and Consumer 

Protection Act, Pub. L. 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. 

2Commission regulations that are referenced 

herein are found at 17 CFR Ch. 1 (2010). They are 

accessible on the Commission’s Web site at 

http://www.cftc.gov. 

3 75 FR 67254, Nov. 2, 2010. 

4Separately, the Commission issued Notices of 

Proposed Rulemaking that addressed references to 

credit ratings in Commission Regulations 1.25 and 

30.7, and in Appendix A to Part 40. See 

‘‘Investment of Customer Funds and Funds Held in 

an Account for Foreign Futures and Foreign 

Options Transactions,’’ 75 FR 67642, Nov. 3, 2010 

(proposing amendments to Regulations 1.25 and 

30.7); ‘‘Provisions Common to Registered Entities,’’ 

75 FR 67282, Nov. 2, 2010 (proposing to delete the 

current Appendix A of Part 40). The amendments 

proposed in those Notices are not addressed herein 

and may be subject to future Commission 

rulemaking. 

5See 68 FR 5545, 5548, Feb. 4, 2003 (noting the 

Commission’s view that consistency between 

Regulations 1.49 and 30.7 on this issue is 

‘‘appropriate’’). In a separate release, the 

Commission has proposed amendments to 

Regulation 30.7 that are similar to the amendments 

to Regulation 1.49 addressed herein. See supra note 

4. 

Dated: July 20, 2011. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2011–18718 Filed 7–22–11; 8:45 am] 

BILLING CODE 3510–33–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1 and 4 

RIN 3038–AD11 

Removing Any Reference to or 

Reliance on Credit Ratings in 

Commission Regulations; Proposing 

Alternatives to the Use of Credit 

Ratings 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is adopting a final rule that 

amends existing CFTC regulations in 

order to implement new statutory 

provisions enacted by Title IX of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act (‘‘Dodd-Frank 

Act’’). The rule amendments set forth 

herein apply to futures commission 

merchants (‘‘FCMs’’), derivatives 

clearing organizations (‘‘DCOs’’), and 

commodity pool operators (‘‘CPOs’’). 

The rule amendments implement the 

new statutory framework that requires 

agencies to replace any reference to or 

reliance on credit ratings in their 

regulations with an appropriate 

alternative standard. 

DATES: This rule is effective September 

23, 2011. 

FOR FURTHER INFORMATION CONTACT: 

Ward P. Griffin, Counsel, Office of 

General Counsel, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW, 

Washington, DC 20581. Telephone: 

202–418–5425. E-mail: 

wgriffin@cftc.gov. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On July 21, 2010, President Obama 

signed into law the Dodd-Frank Act.1 In 

relevant part, Title IX of the Dodd-Frank 

Act directs Federal agencies to take 

certain actions concerning any reference 

to—or requirement of reliance on— 

credit ratings in each agency’s 

respective regulations. Specifically, 

section 939A of the Dodd-Frank Act 

requires agencies to take three actions 

by July 21, 2011, the one-year 

anniversary of the enactment of the 

Dodd-Frank Act. First, section 939A(a) 

directs each Federal agency to review 

‘‘any regulation issued by such agency 

that requires the use of an assessment of 

the credit-worthiness of a security or 

money market instrument [and] any 

references to or requirements in such 

regulations regarding credit ratings.’’ 

Second, section 939A(b) requires that 

each Federal agency ‘‘modify any such 

regulations identified by the review 

conducted under subsection (a) to 

remove any reference to or requirement 

of reliance on credit ratings and to 

substitute in such regulations such 

standard of credit-worthiness as each 

respective agency shall determine as 

appropriate for such regulations.’’ To 

the extent feasible, Federal agencies 

should ‘‘seek to establish * * * uniform 

standards of credit-worthiness for use 

by each such agency.’’ And third, 

section 939A(c) directs each Federal 

agency to report to Congress ‘‘a 

description of any modification of any 

regulation such agency made pursuant 

to subsection (b).’’ 

Subsequent to the enactment of the 

Dodd-Frank Act, the Commission 

reviewed its regulations and identified 

instances in which credit ratings were 

referred to or relied upon.2 The 

identified regulations could be 

categorized into two groups: (1) those 

that rely on ratings to limit how 

Commission registrants may invest or 

deposit customer funds; and (2) those 

that require disclosing a credit rating to 

describe an investment’s characteristics. 

In keeping with its efforts to comply 

fully with both the spirit and letter of 

the Dodd-Frank Act, the Commission 

proposed to amend all of the identified 

regulations that rely on credit ratings 

regarding financial instruments. 

On November 2, 2010, the 

Commission published in the Federal 

Register proposed amendments to 

certain of its existing regulations (the 

‘‘Proposing Release’’) in response to the 

directives set forth in section 939A of 

the Dodd-Frank Act.3 Specifically, the 

Commission addressed two regulations 

in the Proposing Release: (1) Regulation 

1.49, which places qualifications on the 

types of depositories where FCMs and 

DCOs might place customer funds; and 

(2) Regulation 4.24, wherein credit 

ratings are used to help disclose the 

characteristics of an investment.4

Regulation 1.49, which mirrors 

Regulation 30.7,5 requires that an 

acceptable foreign depository must 

either: (1) Have in excess of $1 billion 

of regulatory capital; or (2) issue 

commercial paper or a long-term debt 

instrument that is rated in one of the 

two highest rating categories by at least 

one nationally recognized statistical 

rating organization (‘‘NRSRO’’). In the 

Proposing Release, the Commission 

proposed to remove all ratings 

requirements from Regulation 1.49. The 

Commission based its proposal on its 

views regarding the uncertain reliability 

of ratings as currently administered, 

particularly in light of the significant 

weaknesses of the ratings industry that 

were revealed in recent years. The 

Commission noted the poor past 

performance of credit ratings in gauging 

the safety of certain types of 

investments, and its view that credit 

ratings are not necessary to gauge the 

future ability of certain types of 

investments to preserve customer funds. 

The proposal was intended to align 

Regulation 1.49 with proposed 

Regulations 1.25 and 30.7, and to greater 

simplify the regulatory treatment of the 

investment of customer funds. 

With respect to the proposed 

amendment of Regulation 1.49, the 

Commission requested comment on: (1) 

Whether relying on a minimum capital 

requirement of $1 billion dollars in 

regulatory capital is an adequate 

alternative standard to the current 

Regulation 1.49; and (2) whether 

another standard or measure of solvency 

and credit-worthiness should be used as 

an appropriate, additional test of a 

bank’s safety, such as a leverage ratio or 

a capital adequacy ratio requirement 

consistent with or similar to those in the 

Basel III accords. The Commission also 

stated that it would welcome any other 

comments on the proposal. 


rmajette on DSK89S0YB1PROD with RULES