Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Proposed Rules 67639 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

You can find our regulatory 

evaluation and the estimated costs of 

compliance in the AD Docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

The Boeing Company: Docket No. FAA– 

2010–1042; Directorate Identifier 2010– 

NM–094–AD. 

Comments Due Date 

(a) We must receive comments by 

December 20, 2010. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to The Boeing 

Company airplanes, certificated in any 

category, as identified in paragraphs (c)(1), 

(c)(2), and (c)(3) of this AD. 

(1) Model 737–700, –700C, –800, –900ER 

series airplanes, as identified in Boeing Alert 

Service Bulletin 737–35A1121, dated 

December 14, 2009. 

(2) Model 747–400F series airplanes, as 

identified in Boeing Alert Service Bulletin 

747–35A2126, dated October 8, 2009. 

(3) Model 767–200 and –300 series 

airplanes, as identified in Boeing Alert 

Service Bulletin 767–35A0057, dated October 

8, 2009. 

Subject 

(d) Air Transport Association (ATA) of 

America Code 35: Oxygen. 

Unsafe Condition 

(e) This AD results from reports indicating 

that certain crew oxygen mask stowage box 

units were possibly delivered with a burr in 

the inlet fitting. The Federal Aviation 

Administration is issuing this AD to prevent 

an ignition source, which could result in an 

oxygen-fed fire; or could cause an inlet valve 

to jam in an oxygen mask stowage box unit, 

which could result in restricted flow of 

oxygen. 

Compliance 

(f) You are responsible for having the 

actions required by this AD performed within 

the compliance times specified, unless the 

actions have already been done. 

Inspection and Corrective Action 

(g) Within 24 months after the effective 

date of this AD: Do a general visual 

inspection to determine if the serial number 

of the crew oxygen mask stowage box units 

is identified in the Appendix of 

Intertechnique Service Bulletin MXP1/4–35– 

175, dated September 11, 2009, in 

accordance with the Accomplishment 

Instructions of the applicable Boeing Alert 

Service Bulletin listed in Table 1 of this AD. 

A review of airplane maintenance records is 

acceptable in lieu of this inspection if the 

serial number of the crew oxygen mask 

stowage box units can be conclusively 

determined from that review. If any crew 

oxygen mask stowage box unit has a serial 

number identified in the Appendix of 

Intertechnique Service Bulletin MXP1/4–35– 

175, dated September 11, 2009: Before 

further flight, replace the crew oxygen mask 

stowage box unit with a new unit, in 

accordance with the Accomplishment 

Instructions of the applicable Boeing alert 

service bulletin listed in Table 1 of this AD. 

TABLE 1—SERVICE INFORMATION

Boeing airplane model Document Date 

737–700, –700C, –800, –900ER series airplanes ................. Boeing Alert Service Bulletin 737–35A1121 ........................ December 14, 2009. 

747–400F series airplanes ..................................................... Boeing Alert Service Bulletin 747–35A2126 ........................ October 8, 2009. 

767–200 and –300 series airplanes ...................................... Boeing Alert Service Bulletin 767–35A0057 ........................ October 8, 2009. 

Parts Installation 

(h) As of the effective date of this AD, no 

person may install a crew oxygen mask 

stowage box unit identified in the Appendix 

of Intertechnique Service Bulletin MXP1/4– 

35–175, dated September 11, 2009, on any 

airplane. 

Alternative Methods of Compliance 

(AMOCs) 

(i)(1) The Manager, Seattle Aircraft 

Certification Office (ACO), FAA, has the 

authority to approve AMOCs for this AD, if 

requested using the procedures found in 14 

CFR 39.19. Send information to ATTN: Susan 

L. Monroe, Aerospace Engineer, Cabin Safety 

and Environmental Systems Branch, ANM– 

150S, FAA, Seattle ACO, 1601 Lind Avenue, 

SW., Renton, Washington 98057–3356; 

telephone (425) 917–6457; fax (425) 917– 

6590. Information may be e-mailed to: 

9-ANM-Seattle-ACO-AMOCRequests@faa.gov. 

(2) To request a different method of 

compliance or a different compliance time 

for this AD, follow the procedures in 14 CFR 

39.19. Before using any approved AMOC on 

any airplane to which the AMOC applies, 

notify your principal maintenance inspector 

(PMI) or principal avionics inspector (PAI), 

as appropriate, or lacking a principal 

inspector, your local Flight Standards District 

Office. The AMOC approval letter must 

specifically reference this AD. 

Issued in Renton, Washington, on October 

26, 2010. 

Ali Bahrami, 

Manager, Transport Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–27745 Filed 11–2–10; 8:45 am] 

BILLING CODE 4910–13–P 

DEPARTMENT OF TRANSPORTATION 

Federal Aviation Administration 

14 CFR Part 39 

[Docket No. FAA–2010–1099; Directorate 

Identifier 2010–CE–054–AD] 

RIN 2120–AA64 

Airworthiness Directives; Piaggio Aero 

Industries S.p.A Model PIAGGIO P–180 

Airplanes 

AGENCY: Federal Aviation 

Administration (FAA), Department of 

Transportation (DOT). 

ACTION: Notice of proposed rulemaking 

(NPRM). 

SUMMARY: We propose to adopt a new 

airworthiness directive (AD) for the 

products listed above. This proposed 

AD results from mandatory continuing 

airworthiness information (MCAI) 

originated by an aviation authority of 

another country to identify and correct 

an unsafe condition on an aviation 


srobinson on DSKHWCL6B1PROD with PROPOSALS
67640 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Proposed Rules 

product. The MCAI describes the unsafe 

condition as: 

Compass mismatch (up to loss of heading 

information) were reported by operators, due 

to ferro-magnetic masses (like the telescopic 

Tow-Bar) stowed in the baggage 

compartment. A limitation was added to the 

approved Airplane Flight Manual, stating 

that the towing bar P/N 01–1227–0000 or 

similar ferromagnetic masses are prohibited 

to be carried in the baggage compartment. 

Temporary Change No. 7 to the Pilot’s 

Operating Handbook and EASA 

Approved Airplane Flight Manual Rep. 

6591, issued: February 24, 2009, include 

MCAI that has maintenance 

requirements and/or airworthiness 

limitations developed by Piaggio Aero 

Industries S.p.A. and Piaggio Aero 

Industries. These revisions are approved 

and considered mandatory by the 

European Aviation Safety Agency 

(EASA), which is the Technical Agent 

for the Member States of the European 

Community. Failure to comply with the 

MCAI constitutes an unsafe condition. 

The proposed AD would require actions 

that are intended to address the unsafe 

condition described in the MCAI. 

DATES: We must receive comments on 

this proposed AD by December 20, 

2010. 

ADDRESSES: You may send comments by 

any of the following methods: 

• Federal eRulemaking Portal: Go to 

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

instructions for submitting comments. 

• Fax: (202) 493–2251. 

• Mail: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590. 

• Hand Delivery: U.S. Department of 

Transportation, Docket Operations, 

M–30, West Building Ground Floor, 

Room W12–140, 1200 New Jersey 

Avenue, SE., Washington, DC 20590, 

between 9 a.m. and 5 p.m., Monday 

through Friday, except Federal holidays. 

For service information identified in 

this proposed AD, contact Piaggio Aero 

Industries S.p.A., Via Cibrario, 4–16154 

Genoa, Italy; phone: +39 010 6481 353; 

fax: +39 010 6481 881; email: 

airworthiness@piaggioaero.it; Internet: 

http://www.piaggioaero.com. You may 

review copies of the referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, 

call 816–329–4148. 

Examining the AD Docket 

You may examine the AD docket on 

the Internet at http:// 

www.regulations.gov; or in person at the 

Docket Management Facility between 

9 a.m. and 5 p.m., Monday through 

Friday, except Federal holidays. The AD 

docket contains this proposed AD, the 

regulatory evaluation, any comments 

received, and other information. The 

street address for the Docket Office 

(telephone (800) 647–5527) is in the 

ADDRESSES section. Comments will be 

available in the AD docket shortly after 

receipt. 

FOR FURTHER INFORMATION CONTACT: 

Sarjapur Nagarajan, Aerospace Engineer, 

FAA, Small Airplane Directorate, 901 

Locust, Room 301, Kansas City, 

Missouri 64106; telephone: (816) 329– 

4145; fax: (816) 329–4090. 

SUPPLEMENTARY INFORMATION: 

Comments Invited 

We invite you to send any written 

relevant data, views, or arguments about 

this proposed AD. Send your comments 

to an address listed under the 

ADDRESSES section. Include ‘‘Docket No. 

FAA–2010–1099; Directorate Identifier 

2010–CE–054–AD’’ at the beginning of 

your comments. We specifically invite 

comments on the overall regulatory, 

economic, environmental, and energy 

aspects of this proposed AD. We will 

consider all comments received by the 

closing date and may amend this 

proposed AD because of those 

comments. 

We will post all comments we 

receive, without change, to http:// 

www.regulations.gov, including any 

personal information you provide. We 

will also post a report summarizing each 

substantive verbal contact we receive 

about this proposed AD. 

Discussion 

Piaggio Aero Industries S.p.A. and 

Piaggio Aero Industries have issued 

service information (referred to after this 

as ‘‘the MCAI’’), to correct an unsafe 

condition for the specified products. 

The service information and limitations 

are considered mandatory by the EASA, 

which is the Technical Agent for the 

Member States of the European 

Community. The MCAI states: 

Compass mismatch (up to loss of heading 

information) were reported by operators, due 

to ferro-magnetic masses (like the telescopic 

Tow-Bar) stowed in the baggage 

compartment. A limitation was added to the 

approved Airplane Flight Manual, stating 

that the towing bar P/N 01–1227–0000 or 

similar ferromagnetic masses are prohibited 

to be carried in the baggage compartment. 

Temporary Change No. 7 to the Pilot’s 

Operating Handbook and EASA 

Approved Airplane Flight Manual Rep. 

6591, issued: February 24, 2009, include 

MCAI that has maintenance 

requirements and/or airworthiness 

limitations developed by Piaggio Aero 

Industries S.p.A. and Piaggio Aero 

Industries. These revisions are approved 

and considered mandatory by the 

EASA, which is the Technical Agent for 

the Member States of the European 

Community. Ferro-magnetic masses 

stowed in the baggage compartment may 

cause an erroneous indication from the 

compass (loss of heading information), 

which could result in loss of control of 

the airplane. The MCAI requires 

incorporating a temporary change to the 

airplane flight manual and placard 

installation. You may obtain further 

information by examining the MCAI in 

the AD docket. 

Relevant Service Information 

Piaggio Aero Industries S.p.A. has 

issued Service Bulletin (Mandatory) 

N.: SB 80–0275, Rev. N. 0, dated June 

15, 2009, and Piaggio Aero Industries 

has issued P180–Service Letter No. SL– 

80–0202, dated January 30, 2009. The 

actions described in this service 

information are intended to correct the 

unsafe condition identified in the 

MCAI. 

FAA’s Determination and Requirements 

of the Proposed AD 

This product has been approved by 

the aviation authority of another 

country, and is approved for operation 

in the United States. Pursuant to our 

bilateral agreement with this State of 

Design Authority, they have notified us 

of the unsafe condition described in the 

MCAI and service information 

referenced above. We are proposing this 

AD because we evaluated all 

information and determined the unsafe 

condition exists and is likely to exist or 

develop on other products of the same 

type design. 

Differences Between This Proposed AD 

and the MCAI or Service Information 

We have reviewed the MCAI and 

related service information and, in 

general, agree with their substance. But 

we might have found it necessary to use 

different words from those in the MCAI 

to ensure the AD is clear for U.S. 

operators and is enforceable. In making 

these changes, we do not intend to differ 

substantively from the information 

provided in the MCAI and related 

service information. 

We might also have proposed 

different actions in this AD from those 

in the MCAI in order to follow FAA 

policies. Any such differences are 

highlighted in a Note within the 

proposed AD. 


srobinson on DSKHWCL6B1PROD with PROPOSALS
Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Proposed Rules 67641 

Costs of Compliance 

We estimate that this proposed AD 

will affect 100 products of U.S. registry. 

We also estimate that it would take 

about 1 work-hour per product to 

comply with the basic requirements of 

this proposed AD. The average labor 

rate is $85 per work-hour. Required 

parts would cost about $50 per product. 

Based on these figures, we estimate 

the cost of the proposed AD on U.S. 

operators to be $13,500, or $135 per 

product. 

Authority for This Rulemaking 

Title 49 of the United States Code 

specifies the FAA’s authority to issue 

rules on aviation safety. Subtitle I, 

section 106, describes the authority of 

the FAA Administrator. ‘‘Subtitle VII: 

Aviation Programs,’’ describes in more 

detail the scope of the Agency’s 

authority. 

We are issuing this rulemaking under 

the authority described in ‘‘Subtitle VII, 

Part A, Subpart III, Section 44701: 

General requirements.’’ Under that 

section, Congress charges the FAA with 

promoting safe flight of civil aircraft in 

air commerce by prescribing regulations 

for practices, methods, and procedures 

the Administrator finds necessary for 

safety in air commerce. This regulation 

is within the scope of that authority 

because it addresses an unsafe condition 

that is likely to exist or develop on 

products identified in this rulemaking 

action. 

Regulatory Findings 

We determined that this proposed AD 

would not have federalism implications 

under Executive Order 13132. This 

proposed AD would not have a 

substantial direct effect on the States, on 

the relationship between the national 

Government and the States, or on the 

distribution of power and 

responsibilities among the various 

levels of government. 

For the reasons discussed above, I 

certify this proposed regulation: 

1. Is not a ‘‘significant regulatory 

action’’ under Executive Order 12866; 

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

DOT Regulatory Policies and Procedures 

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

3. Will not have a significant 

economic impact, positive or negative, 

on a substantial number of small entities 

under the criteria of the Regulatory 

Flexibility Act. 

We prepared a regulatory evaluation 

of the estimated costs to comply with 

this proposed AD and placed it in the 

AD docket. 

List of Subjects in 14 CFR Part 39 

Air transportation, Aircraft, Aviation 

safety, Incorporation by reference, 

Safety. 

The Proposed Amendment 

Accordingly, under the authority 

delegated to me by the Administrator, 

the FAA proposes to amend 14 CFR part 

39 as follows: 

PART 39—AIRWORTHINESS 

DIRECTIVES 

1. The authority citation for part 39 

continues to read as follows: 

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

§ 39.13 [Amended] 

2. The FAA amends § 39.13 by adding 

the following new AD: 

Piaggio Aero Industries S.p.A.: Docket No. 

FAA–2010–1099; Directorate Identifier 

2010–CE–054–AD. 

Comments Due Date 

(a) We must receive comments by 

December 20, 2010. 

Affected ADs 

(b) None. 

Applicability 

(c) This AD applies to Piaggio Aero 

Industries S.p.A. Model PIAGGIO P–180 

airplanes, all manufacturer serial numbers 

(MSN), certificated in any category. 

Subject 

(d) Air Transport Association of America 

(ATA) Code 50: Cargo and Accessory 

Compartments. 

Reason 

(e) The mandatory continuing 

airworthiness information (MCAI) states: 

Compass mismatch (up to loss of heading 

information) were reported by operators, due 

to ferro-magnetic masses (like the telescopic 

Tow-Bar) stowed in the baggage 

compartment. A limitation was added to the 

approved Airplane Flight Manual, stating 

that the towing bar P/N 01–1227–0000 or 

similar ferromagnetic masses are prohibited 

to be carried in the baggage compartment. 

Temporary Change No. 7 to the Pilot’s 

Operating Handbook and EASA Approved 

Airplane Flight Manual Rep. 6591, issued: 

February 24, 2009, include MCAI that has 

maintenance requirements and/or 

airworthiness limitations developed by 

Piaggio Aero Industries S.p.A. and Piaggio 

Aero Industries. These revisions are 

approved and considered mandatory by the 

European Aviation Safety Agency (EASA), 

which is the Technical Agent for the Member 

States of the European Community. Failure to 

comply with the MCAI constitutes an unsafe 

condition. The MCAI requires incorporating 

a temporary change to the airplane flight 

manual and placard installation. 

Actions and Compliance 

(f) Unless already done, within 5 flights 

after the effective date of this AD, do the 

following actions: 

(1) For MSN 1004 through 1104: 

Incorporate Temporary Change No. 7 to the 

Pilot’s Operating Handbook and EASA 

Approved Airplane Flight Manual Rep. 6591, 

issued: February 24, 2009, in the Limitations 

Section following Piaggio Aero Industries 

S.p.A. Service Bulletin (Mandatory) N.: SB 

80–0275, Rev. N. 0, dated June 15, 2009. 

(2) For MSN 1105 and subsequent: 

Incorporate Temporary Change No. 11 to the 

EASA Approved Airplane Flight Manual 

Rep. 180–MAN–0010–01100, issued: 

February 24, 2009, in the Limitations Section 

following Piaggio Aero Industries S.p.A. 

Service Bulletin (Mandatory) N.: SB 80–0275, 

Rev. N. 0, dated June 15, 2009, and Piaggio 

Aero Industries P180–Service Letter No. 

SL–80–0202, dated January 30, 2009. 

(3) All MSN: Install the part number 

80K347593–005 limitation placard in the 

front of the baggage compartment door 

following Piaggio Aero Industries S.p.A. 

Service Bulletin (Mandatory) N.: SB 80–0275, 

Rev. N. 0, dated June 15, 2009. 

FAA AD Differences 

Note: This AD differs from the MCAI and/ 

or service information as follows: Revisions 

and changes to the Limitations Section of the 

AFM are mandatory in Europe as part of the 

European regulatory process upon issuance 

by the type certificate holder. The FAA must 

mandate any such changes through 

rulemaking, specifically in this case an 

airworthiness directive. 

Other FAA AD Provisions 

(g) The following provisions also apply to 

this AD: 

(1) Alternative Methods of Compliance 

(AMOCs): The Manager, Standards Office, 

FAA, has the authority to approve AMOCs 

for this AD, if requested using the procedures 

found in 14 CFR 39.19. Send information to 

ATTN: Sarjapur Nagarajan, Aerospace 

Engineer, FAA, Small Airplane Directorate, 

901 Locust, Room 301, Kansas City, Missouri 

64106; telephone: (816) 329–4145; fax: (816) 

329–4090. Before using any approved AMOC 

on any airplane to which the AMOC applies, 

notify your appropriate principal inspector 

(PI) in the FAA Flight Standards District 

Office (FSDO), or lacking a PI, your local 

FSDO. 

(2) Airworthy Product: For any requirement 

in this AD to obtain corrective actions from 

a manufacturer or other source, use these 

actions if they are FAA-approved. Corrective 

actions are considered FAA-approved if they 

are approved by the State of Design Authority 

(or their delegated agent). You are required 

to assure the product is airworthy before it 

is returned to service. 

(3) Reporting Requirements: For any 

reporting requirement in this AD, a federal 

agency may not conduct or sponsor, and a 

person is not required to respond to, nor 

shall a person be subject to a penalty for 

failure to comply with a collection of 

information subject to the requirements of 

the Paperwork Reduction Act unless that 

collection of information displays a current 


srobinson on DSKHWCL6B1PROD with PROPOSALS
67642 Federal Register / Vol. 75, No. 212 / Wednesday, November 3, 2010 / Proposed Rules 

1Commission regulations referred to herein are 

found at 17 CFR Ch. 1. 

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

3 7 U.S.C. 6(c). 

4 17 CFR 1.25. 

5This category of permitted investment was later 

amended to read ‘‘corporate notes or bonds.’’ See 70 

FR 28190, 28197 (May 17, 2005). 

6See 65 FR 77993 (Dec. 13, 2000) (publishing 

final rules); and 65 FR 82270 (Dec. 28, 2000) 

(making technical corrections and accelerating 

valid OMB Control Number. The OMB 

Control Number for this information 

collection is 2120–0056. Public reporting for 

this collection of information is estimated to 

be approximately 5 minutes per response, 

including the time for reviewing instructions, 

completing and reviewing the collection of 

information. All responses to this collection 

of information are mandatory. Comments 

concerning the accuracy of this burden and 

suggestions for reducing the burden should 

be directed to the FAA at: 800 Independence 

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

Information Collection Clearance Officer, 

AES–200. 

Related Information 

(h) Refer to Piaggio Aero Industries S.p.A. 

Service Bulletin (Mandatory) N.: SB 80–0275, 

Rev. N. 0, dated June 15, 2009, and Piaggio 

Aero Industries P180–Service Letter No. SL– 

80–0202, dated January 30, 2009, for related 

information. For service information related 

to this AD, contact Piaggio Aero Industries 

S.p.A., Via Cibrario, 4–16154 Genoa, Italy; 

phone: +39 010 6481 353; fax: +39 010 6481 

881; email: airworthiness@piaggioaero.it; 

Internet: http://www.piaggioaero.com. You 

may review copies of the referenced service 

information at the FAA, Small Airplane 

Directorate, 901 Locust, Kansas City, 

Missouri 64106. For information on the 

availability of this material at the FAA, call 

816–329–4148. 

Issued in Kansas City, Missouri, on 

October 28, 2010. 

John Colomy, 

Acting Manager, Small Airplane Directorate, 

Aircraft Certification Service. 

[FR Doc. 2010–27723 Filed 11–2–10; 8:45 am] 

BILLING CODE 4910–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1 and 30 

RIN 3038–AC15 

Investment of Customer Funds and 

Funds Held in an Account for Foreign 

Futures and Foreign Options 

Transactions 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Proposed rule. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission or 

CFTC) is proposing to amend its 

regulations regarding the investment of 

customer segregated funds and funds 

held in an account subject to 

Commission Regulation 30.7 (30.7 

funds). Certain amendments reflect the 

implementation of new statutory 

provisions enacted under Title IX of the 

Dodd-Frank Wall Street Reform and 

Consumer Protection Act. The proposed 

rules address: Certain changes to the list 

of permitted investments, a clarification 

of the liquidity requirement, the 

removal of rating requirements, an 

expansion of concentration limits 

including asset-based, issuer-based, and 

counterparty concentration restrictions. 

It also addresses revisions to the 

acknowledgment letter requirement for 

investment in a money market mutual 

fund (MMMF), revisions to the list of 

exceptions to the next-day redemption 

requirement for MMMFs, the 

application of customer segregated 

funds investment limitations to 30.7 

funds, the removal of ratings 

requirements for depositories of 30.7 

funds, and the elimination of the option 

to designate a depository for 30.7 funds. 

DATES: Comments must be received on 

or before December 3, 2010. 

ADDRESSES: You may submit comments, 

identified by RIN number, by any of the 

following methods: 

• Agency Web site, via its Comments 

Online process: http:// 

comments.cftc.gov. Follow the 

instructions for submitting comments 

through the Web site. 

• Mail: David A. Stawick, Secretary of 

the Commission, Commodity Futures 

Trading Commission, Three Lafayette 

Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

• Hand Delivery/Courier: Same as 

mail above. 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

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 established 

procedures in CFTC Regulation 145.9.1

FOR FURTHER INFORMATION CONTACT: 

Phyllis P. Dietz, Associate Director, 

202–418–5449, pdietz@cftc.gov, or Jon 

DeBord, Attorney-Advisor, 202–418– 

5478, jdebord@cftc.gov, or Division of 

Clearing and Intermediary Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1151 21st Street, NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: 

Table of Contents 

I. Background 

A. Regulation 1.25 

B. Regulation 30.7 

C. Advance Notice of Proposed 

Rulemaking 

D. The Dodd-Frank Act 

II. Discussion of the Proposed Rules 

A. Permitted Investments 

1. Government Sponsored Enterprise 

Securities 

2. Commercial Paper and Corporate Notes 

or Bonds 

3. Foreign Sovereign Debt 

4. In-House Transactions 

B. General Terms and Conditions 

1. Marketability 

2. Ratings 

3. Restrictions on Instrument Features 

4. Concentration Limits 

(a) Asset-Based Concentration Limits 

(b) Issuer-Based Concentration Limits 

(c) Counterparty Concentration Limits 

C. Money Market Mutual Funds 

1. Acknowledgment Letters 

2. Next-Day Redemption Requirement 

D. Repurchase and Reverse Repurchase 

Agreements 

E. Regulation 30.7 

1. Harmonization 

2. Ratings 

3. Designation as a Depository for 30.7 

Funds 

III. Related Matters 

A. Regulatory Flexibility Act 

B. Paperwork Reduction Act 

C. Costs and Benefits of the Proposed Rules 

Text of Rules 

I. Background 

A. Regulation 1.25 

Under Section 4d(a)(2) of the 

Commodity Exchange Act (Act),2 the 

investment of customer segregated 

funds is limited to obligations of the 

United States and obligations fully 

guaranteed as to principal and interest 

by the United States (U.S. government 

securities), and general obligations of 

any State or of any political subdivision 

thereof (municipal securities). Pursuant 

to authority under Section 4(c) of the 

Act,3 the Commission substantially 

expanded the list of permitted 

investments by amending Commission 

Regulation 1.25 4 in December 2000 to 

permit investments in general 

obligations issued by any enterprise 

sponsored by the United States 

(government sponsored enterprise 

securities or GSE securities), bank 

certificates of deposit (CDs), commercial 

paper, corporate notes,5 general 

obligations of a sovereign nation, and 

interests in MMMFs.6 In connection 


srobinson on DSKHWCL6B1PROD with PROPOSALS