Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 35291 

conducted beginning with fiscal year 

2009 and every fifth year thereafter. 

More detailed instructions are given on 

the report forms and instructions. 

(b) Who must report- (1) Mandatory 

reporting. A report is required from each 

U.S. person that is a financial services 

provider or intermediary, or whose 

consolidated U.S. enterprise includes a 

separately organized subsidiary, or part, 

that is a financial services provider or 

intermediary, and that had transactions 

(either sales or purchases) directly with 

foreign persons in all financial services 

combined in excess of $3,000,000 

during its fiscal year covered by the 

survey on an accrual basis. The 

$3,000,000 threshold should be applied 

to financial services transactions with 

foreign persons by all parts of the 

consolidated U.S. enterprise combined 

that are financial services providers or 

intermediaries. Because the $3,000,000 

threshold applies separately to sales and 

purchases, the mandatory reporting 

requirement may apply only to sales, 

only to purchases, or to both. 

(i) The determination of whether a 

U.S. financial services provider or 

intermediary is subject to this 

mandatory reporting requirement may 

be based on the judgment of 

knowledgeable persons in a company 

who can identify reportable transactions 

on a recall basis, with a reasonable 

degree of certainty, without conducting 

a detailed manual records search. 

(ii) Reporters that file pursuant to this 

mandatory reporting requirement must 

provide data on total sales and/or 

purchases of each of the covered types 

of financial services transactions and 

must disaggregate the totals by country 

and by relationship to the foreign 

transactor (foreign affiliate, foreign 

parent group, or unaffiliated). 

(2) Voluntary reporting. If, during the 

fiscal year covered, sales or purchases of 

financial services by a firm that is a 

financial services provider or 

intermediary, or by a firm’s subsidiaries, 

or parts, combined that are financial 

services providers or intermediaries, are 

$3,000,000 or less, the U.S. person is 

requested to provide an estimate of the 

total for each type of service. However, 

submission of this information is 

voluntary. Because the $3,000,000 

threshold applies separately to sales and 

purchases, this voluntary reporting 

option may apply to sales, to purchases, 

or to both. 

(3) Exemption claims. Entities that 

receive the BE–180 survey but are not 

subject to the mandatory reporting 

requirements and choose not to report 

data voluntarily must file an exemption 

claim by completing pages one through 

five of the BE–180 survey andreturning 

them to BEA. 

(c) BE–180 definition of financial 

services provider. The definition of 

financial services provider used for this 

survey is identical to the definition of 

the term as used in the North American 

Industry Classification System, United 

States, 2007, Sector 52–Finance and 

Insurance, and holding companies that 

own or influence, and are principally 

engaged in making management 

decisions for these firms (part of Sector 

55–Management of Companies and 

Enterprises). For example, companies 

and/or subsidiaries and other separable 

parts of companies in the following 

industries are defined as financial 

services providers: Depository credit 

intermediation and related activities 

(including commercial banking, savings 

institutions, credit unions, and other 

depository credit intermediation); nondepository credit intermediation 

(including credit card issuing, sales 

financing, and other non-depository 

credit intermediation); activities related 

to credit intermediation (including 

mortgage and nonmortgage loan brokers, 

financial transactions processing, 

reserve, and clearinghouse activities, 

and other activities related to credit 

intermediation); securities and 

commodity contracts intermediation 

and brokerage (including investment 

banking and securities dealing, 

securities brokerage, commodity 

contracts and dealing, and commodity 

contracts brokerage); securities and 

commodity exchanges; other financial 

investment activities (including 

miscellaneous intermediation, portfolio 

management, investment advice, and all 

other financial investment activities); 

insurance carriers; insurance agencies, 

brokerages, and other insurance related 

activities; insurance and employee 

benefit funds (including pension funds, 

health and welfare funds, and other 

insurance funds); other investment 

pools and funds (including open-end 

investment funds, trusts, estates, and 

agency accounts, real estate investment 

trusts, and other financial vehicles); and 

holding companies that own, or 

influence the management decisions of, 

firms principally engaged in the 

aforementioned activities. 

(d) Covered types of services. The BE– 

180 survey covers the following types of 

financial services transactions (sales or 

purchases) between U.S. financial 

companies and foreign persons: 

Brokerage services related to equity 

transactions; other brokerage services; 

underwriting and private placement 

services; financial management services; 

credit-related services, except credit 

card services; credit card services; 

financial advisory and custody services; 

securities lending services; electronic 

funds transfer services; and other 

financial services. 

[FR Doc. 2010–14996 Filed 6–21–10; 8:45 am] 

BILLING CODE 3510–06–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 30 

Foreign Futures and Options 

Transactions 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Order. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission or 

CFTC) is granting an exemption to firms 

designated by Bursa Malaysia 

Derivatives Berhad (Bursa Derivatives), 

a subsidiary of Bursa Malaysia Berhad 

(Bursa Malaysia), from the application 

of certain of the Commission’s foreign 

futures and options regulations based 

upon substituted compliance with 

certain comparable regulatory and selfregulatory requirements of a foreign 

regulatory authority consistent with 

conditions specified by the 

Commission, as set forth herein. This 

Order is issued pursuant to Commission 

Regulation 30.10, which permits 

persons to file a petition with the 

Commission for exemption from the 

application of certain of the Regulations 

set forth in Part 30 and authorizes the 

Commission to grant such an exemption 

if such action would not be otherwise 

contrary to the public interest or to the 

purposes of the provision from which 

exemption is sought. 

DATES: Effective Date: June 22, 2010. 

FOR FURTHER INFORMATION CONTACT: 

Andrew V. Chapin., Associate Director 

or Andrea Musalem, Attorney-Advisor, 

Division of Clearing and Intermediary 

Oversight, Commodity Futures Trading 

Commission, 1155 21st Street, NW., 

Washington, DC 20581. Telephone: 

(202) 418–5430 or (202) 418–5167. 

E-mail: achapin@cftc.gov or 

amusalem@cftc.gov. 

SUPPLEMENTARY INFORMATION: The 

Commission has issued the following 

Order: 

Order Under CFTC Regulation 30.10 

Exempting Firms Designated by Bursa 

Malaysia Derivatives (Bursa Derivatives) 

From the Application of Certain of the 

Foreign Futures and Options 

Regulations the Later of the Date of 

Publication of the Order Herein in the 

Federal Register or After Filing of 

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35292 Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 

1Commission regulations referred to herein are 

found at 17 CFR Ch. I (2009). 

2 52 FR 28990, 29001 (Aug. 5, 1987). 3 52 FR 28980, 28981 and 29002. 

Consents by Such Firms and Bursa 

Derivatives, as Appropriate, to the 

Terms and Conditions of the Order 

Herein. 

Commission Regulations governing 

the offer and sale of commodity futures 

and option contracts traded on or 

subject to the regulations of a foreign 

board of trade to customers located in 

the U.S. are contained in Part 30 of the 

Commission’s regulations.1 These 

regulations include requirements for 

intermediaries with respect to 

registration, disclosure, capital 

adequacy, protection of customer funds, 

recordkeeping and reporting, and sales 

practice and compliance procedures 

that are generally comparable to those 

applicable to transactions on U.S. 

markets. 

In formulating a regulatory program to 

govern the offer and sale of foreign 

futures and option products to 

customers located in the U.S., the 

Commission, among other things, 

considered the desirability of 

ameliorating the potential 

extraterritorial impact of such a program 

and avoiding duplicative regulation of 

firms engaged in international business. 

Based upon these considerations, the 

Commission determined to permit 

persons located outside the U.S., and 

subject to a comparable regulatory 

structure in the jurisdiction in which 

they were located, to seek an exemption 

from certain of the requirements under 

Part 30 of the Commission’s regulations 

based upon substituted compliance with 

the regulatory requirements of the 

foreign jurisdiction. 

Appendix A to Part 30, ‘‘Interpretative 

Statement With Respect to the 

Commission’s Exemptive Authority 

Under § 30.10 of Its Rules’’ (Appendix 

A), generally sets forth the elements the 

Commission will evaluate in 

determining whether a particular 

regulatory program may be found to be 

comparable for purposes of exemptive 

relief pursuant to Regulation 30.10.2

These elements include: (1) 

Registration, authorization or other form 

of licensing, fitness review or 

qualification of persons that solicit and 

accept customer orders; (2) minimum 

financial requirements for those persons 

who accept customer funds; (3) 

protection of customer funds from 

misapplication; (4) recordkeeping and 

reporting requirements; (5) sales 

practice standards; (6) procedures to 

audit for compliance with, and to take 

action against those persons who 

violate, the requirements of the 

program; and (7) information sharing 

arrangements between the Commission 

and the appropriate governmental 

and/or self-regulatory organization to 

ensure Commission access on an ‘‘as 

needed’’ basis to information essential to 

maintaining standards of customer and 

market protection within the U.S. 

Moreover, the Commission 

specifically stated in adopting 

Regulation 30.10 that no exemption of a 

general nature would be granted unless 

the persons to whom the exemption is 

to be applied: (1) Submit to jurisdiction 

in the U.S. by designating an agent for 

service of process in the U.S. with 

respect to transactions subject to Part 30 

and filing a copy of the agency 

agreement with the National Futures 

Association (NFA); (2) agree to provide 

access to their books and records in the 

U.S. to Commission and Department of 

Justice representatives; and (3) notify 

NFA of the commencement of business 

in the U.S.3

On July 13, 2009, Bursa Malaysia 

Berhad (Bursa Derivatives’ holding 

company) originally petitioned the 

Commission on behalf of its member 

firms, located and doing business in 

Malaysia, for an exemption from the 

application of the Commission’s Part 30 

Regulations to those firms. 

Subsequently, however, and due to the 

corporate restructuring following the 

joint venture between Bursa Malaysia 

and the CME Group, Inc., Bursa 

Malaysia amended its original petition 

by withdrawing the request for Part 30 

relief on behalf of Bursa Malaysia. The 

amended petition, submitted by letter to 

the Commission on December 30, 2009, 

was filed by and requests Regulation 

30.10 relief solely to Bursa Derivatives 

and all eligible Bursa Derivatives 

Trading Participants. In support of its 

petition, Bursa Derivatives states that 

granting such an exemption with 

respect to such firms that it has 

authorized to conduct foreign futures 

and option transactions on behalf of 

customers located in the U.S. would not 

be contrary to the public interest nor to 

the purposes of the provisions from 

which the exemption is sought because 

such firms are subject to a regulatory 

framework comparable to that imposed 

by the Commodity Exchange Act (Act) 

and the regulations thereunder. 

Based upon a review of the petition, 

supplementary materials filed by Bursa 

Derivatives and the recommendation of 

the Commission’s staff, the Commission 

has concluded that the standards for 

relief set forth in Regulation 30.10 and, 

in particular, Appendix A thereof, have 

been met and that compliance with 

applicable Malaysian law and Bursa 

Derivatives rules may be substituted for 

compliance with those sections of the 

Act and regulations thereunder more 

particularly set forth herein. 

By this Order, the Commission hereby 

exempts, subject to specified conditions, 

those firms identified to the 

Commission by Bursa Derivatives as 

eligible for the relief granted herein 

from: 

—Registration with the Commission for 

firms and for firm representatives; 

—The requirement in Commission 

Regulation 30.6(a) and (d), 17 CFR 30.6(a) 

and (d), that firms provide customers located 

in the U.S. with the risk disclosure 

statements in Commission Regulation 

1.55(b), 17 CFR 1.55(b), and Commission 

Regulation 33.7, 17 CFR 33.7, or as otherwise 

approved under Commission Regulation 

1.55(c), 17 CFR 1.55(c); 

—The separate account requirement 

contained in Commission Regulation 30.7, 17 

CFR 30.7; 

—Those sections of Part 1 of the 

Commission’s financial regulations that 

apply to foreign futures and options sold in 

the U.S. as set forth in Part 30; and 

—Those sections of Part 1 of the 

Commission’s regulations relating to books 

and records which apply to transactions 

subject to Part 30, 

based upon substituted compliance by 

such persons with the applicable 

statutes and regulations in effect in 

Malaysia. 

This determination to permit 

substituted compliance is based on, 

among other things, the Commission’s 

finding that the regulatory framework 

governing persons in Malaysia who 

would be exempted hereunder provides: 

(1) A system of qualification or 

authorization of firms who deal in 

transactions subject to regulation under Part 

30 that includes, for example, criteria and 

procedures for granting, monitoring, 

suspending and revoking licenses, and 

provisions for requiring and obtaining access 

to information about authorized firms and 

persons who act on behalf of such firms; 

(2) Financial requirements for firms 

including, without limitation, a requirement 

for a minimum level of working capital and 

daily mark-to-market settlement and/or 

accounting procedures; 

(3) A system for the protection of customer 

assets that is designed to preclude the use of 

customer assets to satisfy house obligations 

and requires separate accounting for such 

assets; 

(4) Recordkeeping and reporting 

requirements pertaining to financial and 

trade information; 

(5) Sales practice standards for authorized 

firms and persons acting on their behalf that 

include, for example, required disclosures to 

prospective customers and prohibitions on 

improper trading advice; 

(6) Procedures to audit for compliance 

with, and to redress violations of, the 

customer protection and sales practice 

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Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 35293 

4See, e.g., Sections 2(a)(1)(C) and (D) of the Act. 

5See, e.g., 17 CFR Part 18 (2009). 

6See, e.g., 17 CFR Parts 17 and 21 (2009). 

7As described below, these representations are to 

be filed with NFA. 

8 62 FR 47792, 47793 (Sept. 11, 1997). Among 

other duties, the Commission authorized NFA to 

receive requests for confirmation of Regulation 

30.10 relief on behalf of particular firms, to verify 

such firms’ fitness and compliance with the 

conditions of the appropriate Regulation 30.10 

Order and to grant exemptive relief from 

registration to qualifying firms. 

9See 57 FR 49644 (November 3, 1992) (permitted 

limited marketing of foreign futures and foreign 

option products to certain governmental and 

institutional customers located in the U.S.); 59 FR 

42156 (August 17, 1994) (expanding the relief set 

forth in the 1992 release to conduct directed 

towards ‘‘accredited investors’’, as defined in the 

Securities and Exchange Commission’s Regulation 

D issued pursuant to the Securities Act of 1933). 

requirements referred to above, including, 

without limitation, an affirmative 

surveillance program designed to detect 

trading activities that take advantage of 

customers, and the existence of broad powers 

of investigation relating to sales practice 

abuses; and 

(7) Mechanisms for sharing of information 

between the Commission, Bursa Derivatives, 

and the Malaysian regulatory authorities on 

an ‘‘as needed’’ basis including, without 

limitation, confirmation data, data necessary 

to trace funds related to trading futures 

products subject to regulation in Malaysia, 

position data, and data on firms’ standing to 

do business and financial condition. 

Commission staff has concluded, 

upon review of the petition of Bursa 

Derivatives and accompanying exhibits, 

that Malaysia’s regulation of futures and 

options exchanges is comparable to that 

of the U.S. in the areas specified in 

Appendix A of Part 30, as described 

above. 

This Order does not provide an 

exemption from any provision of the 

Act or regulations thereunder not 

specified herein, such as the antifraud 

provision in Regulation 30.9. Moreover, 

the relief granted is limited to brokerage 

activities undertaken on behalf of 

customers located in the U.S. with 

respect to transactions on or subject to 

the regulations of Bursa Derivatives for 

products that customers located in the 

U.S. may trade.4 The relief does not 

extend to regulations relating to trading, 

directly or indirectly, on U.S. 

exchanges. For example, a firm trading 

in U.S. markets for its own account 

would be subject to the Commission’s 

large trader reporting requirements.5

Similarly, if such a firm were carrying 

positions on a U.S. exchange on behalf 

of foreign clients and submitted such 

transactions for clearing on an omnibus 

basis through a firm registered as a 

futures commission merchant under the 

Act, it would be subject to the reporting 

requirements applicable to foreign 

brokers.6 The relief herein is 

inapplicable where the firm solicits or 

accepts orders from customers located 

in the U.S. for transactions on U.S. 

markets. In that case, the firm must 

comply with all applicable U.S. laws 

and regulations, including the 

requirement to register in the 

appropriate capacity. 

The eligibility of any firm to seek 

relief under this exemptive Order is 

subject to the following conditions: 

(1) The regulatory or self-regulatory 

organization responsible for monitoring 

the compliance of such firms with the 

regulatory requirements described in the 

Regulation 30.10 petition must 

represent in writing to the Commission 7

that: 

(a) Each firm for which relief is sought is 

registered, licensed or authorized, as 

appropriate, and is otherwise in good 

standing under the standards in place in 

Malaysia; such firm is engaged in business 

with customers in Malaysia as well as in the 

U.S.; and such firm and its principals and 

employees who engage in activities subject to 

Part 30 would not be statutorily disqualified 

from registration under Section 8a(2) of the 

Act, 7 U.S.C. 12a(2); 

(b) It will monitor firms to which relief is 

granted for compliance with the regulatory 

requirements for which substituted 

compliance is accepted and will promptly 

notify the Commission or NFA of any change 

in status of a firm that would affect its 

continued eligibility for the exemption 

granted hereunder, including the termination 

of its activities in the U.S.; 

(c) All transactions with respect to 

customers resident in the U.S. will be made 

on or subject to the regulations of Bursa 

Derivatives and the Commission will receive 

prompt notice of all material changes to the 

relevant laws in Malaysia, any regulations 

promulgated thereunder and Bursa 

Derivatives regulations; 

(d) Customers located in the U.S. will be 

provided no less stringent regulatory 

protection than Malaysian customers under 

all relevant provisions of Malaysian law; and 

(e) It will cooperate with the Commission 

with respect to any inquiries concerning any 

activity subject to regulation under the Part 

30 Regulations, including sharing the 

information specified in Appendix A on an 

‘‘as needed’’ basis and will use its best efforts 

to notify the Commission if it becomes aware 

of any information that in its judgment 

affects the financial or operational viability of 

a member firm doing business in the U.S. 

under the exemption granted by this Order. 

(2) Each firm seeking relief hereunder 

must represent in writing that it: 

(a) Is located outside the U.S., its territories 

and possessions and, where applicable, has 

subsidiaries or affiliates domiciled in the 

U.S. with a related business (e.g., banks and 

broker/dealer affiliates) along with a brief 

description of each subsidiary’s or affiliate’s 

identity and principal business in the U.S.; 

(b) Consents to jurisdiction in the U.S. 

under the Act by filing a valid and binding 

appointment of an agent in the U.S. for 

service of process in accordance with the 

requirements set forth in Regulation 30.5, 17 

CFR 30.5; 

(c) Agrees to provide access to its books 

and records related to transactions under Part 

30 required to be maintained under the 

applicable statutes and regulations in effect 

in Malaysia upon the request of any 

representative of the Commission or U.S. 

Department of Justice at the place in the U.S. 

designated by such representative, within 72 

hours, or such lesser period of time as 

specified by that representative as may be 

reasonable under the circumstances after 

notice of the request; 

(d) Has no principal or employee who 

solicits or accepts orders from customers 

located in the U.S. who would be 

disqualified under Section 8a(2) of the Act, 

7 U.S.C. 12a(2), from doing business in the 

U.S.; 

(e) Consents to participate in any NFA 

arbitration program that offers a procedure 

for resolving customer disputes on the papers 

where such disputes involve representations 

or activities with respect to transactions 

under Part 30, and consents to notify 

customers located in the U.S. of the 

availability of such a program; 

(f) Undertakes to comply with the 

applicable provisions of Malaysian laws and 

Bursa Derivatives regulations that form the 

basis upon which this exemption from 

certain provisions of the Act and Regulations 

thereunder is granted; and 

As set forth in the Commission’s 

September 11, 1997 Order delegating to 

NFA certain responsibilities, the written 

representations set forth in paragraph 

(2) shall be filed with NFA.8 Each firm 

seeking relief hereunder has an ongoing 

obligation to notify NFA should there be 

a material change to any of the 

representations required in the firm’s 

application for relief. 

The Commission also confirms that 

Bursa Derivatives members that receive 

confirmation of relief set forth herein 

may engage in limited marketing 

conduct with respect to certain qualified 

customers located in the U.S. from a 

non-permanent location in the U.S., 

subject to the terms and conditions set 

forth in prior Commission Orders.9 The 

Commission notes that any firm and 

their employees or other representatives 

which engage in marketing conduct 

pursuant to this relief are deemed to 

have consented to the Commission’s 

jurisdiction over such marketing 

activities by their filing of a valid and 

binding appointment of an agent in the 

U.S. for service of process. 

This Order will become effective as to 

any designated Bursa Derivatives firm 

when the consents set forth in 

paragraphs (2)(a)–(g) have been filed. 

Upon filing of the notice required under 

paragraph (1)(b) as to any such firm, the 

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35294 Federal Register / Vol. 75, No. 119 / Tuesday, June 22, 2010 / Rules and Regulations 

relief granted by this Order may be 

suspended immediately as to that firm. 

That suspension will remain in effect 

pending further notice by the 

Commission, or the Commission’s 

designee, to the firm and Bursa 

Derivatives. 

This Order is issued pursuant to 

Regulation 30.10 based on the 

representations made and supporting 

material provided to the Commission 

and the recommendation of the staff, 

and is made effective as to any firm 

granted relief hereunder based upon the 

filings and representations of such firms 

required hereunder. Any material 

changes or omissions in the facts and 

circumstances pursuant to which this 

Order is granted might require the 

Commission to reconsider its finding 

that the standards for relief set forth in 

Regulation 30.10 and, in particular, 

Appendix A, have been met. Further, if 

experience demonstrates that the 

continued effectiveness of this Order in 

general, or with respect to a particular 

firm, would be contrary to public policy 

or the public interest, or that the 

systems in place for the exchange of 

information or other circumstances do 

not warrant continuation of the 

exemptive relief granted herein, the 

Commission may condition, modify, 

suspend, terminate, withhold as to a 

specific firm, or otherwise restrict the 

exemptive relief granted in this Order, 

as appropriate, on its own motion. 

The Commission will continue to 

monitor the implementation of its 

program to exempt firms located in 

jurisdictions generally deemed to have a 

comparable regulatory program from the 

application of certain of the foreign 

futures and option regulations and will 

make necessary adjustments if 

appropriate. 

Dated: June 15, 2010. 

By the Commission. 

Sauntia S. Warfield, 

Assistant Secretary of the Commission. 

[FR Doc. 2010–15021 Filed 6–21–10; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF HOMELAND 

SECURITY 

Coast Guard 

33 CFR Part 165 

[Docket No. USCG–2010–0512] 

RIN 1625–AA00 

Safety Zone; Marquette 4th of July 

Fireworks, Marquette Harbor, Lake 

Superior, Marquette, MI 

AGENCY: Coast Guard, DHS. 

ACTION: Temporary final rule. 

SUMMARY: The Coast Guard is 

establishing a temporary safety zone on 

Marquette Harbor, Lake Superior, 

Marquette, MI. This zone is intended to 

restrict vessels from a portion of 

Marquette Harbor during the Marquette 

4th of July Fireworks display. This 

temporary safety zone is necessary to 

protect spectators and vessels from the 

hazards associated with a firework 

display. 

DATES: This rule is effective from 9 p.m. 

on July 4, 2010, until 11 p.m. on July 5, 

2010. 

ADDRESSES: Documents indicated in this 

preamble as being available in the 

docket are part of docket USCG–2010– 

0512 and are available online by going 

to http://www.regulations.gov, inserting 

USCG–2010–0512 in the ‘‘Keyword’’ 

box, and then clicking ‘‘Search.’’ They 

are also available for inspection or 

copying at the Docket Management 

Facility (M–30), U.S. Department of 

Transportation, 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 FURTHER INFORMATION CONTACT: If 

you have questions on this temporary 

rule, call or e-mail BMC Gregory Ford, 

Marine Event Coordinator, U.S. Coast 

Guard Sector Sault Sainte Marie; 

telephone: 906–635–3222, e-mail: 

Gregory.C.Ford@uscg.mil. If you have 

questions on viewing the docket, call 

Renee V. Wright, Program Manager, 

Docket Operations, telephone 202–366– 

9826. 

SUPPLEMENTARY INFORMATION: 

Regulatory Information 

The Coast Guard is issuing this 

temporary final rule without prior 

notice and opportunity to comment 

pursuant to authority under section 4(a) 

of the Administrative Procedure Act 

(APA) (5 U.S.C. 553(b)). This provision 

authorizes an agency to issue a rule 

without prior notice and opportunity to 

comment when the agency for good 

cause finds that those procedures are 

‘‘impracticable, unnecessary, or contrary 

to the public interest.’’ Under 5 U.S.C. 

553(b)(B), the Coast Guard finds that 

good cause exists for not publishing a 

notice of proposed rulemaking (NPRM) 

with respect to this rule because it is 

contrary to the public interest to delay 

the effective date of this rule. Delaying 

the effective date by first publishing an 

NPRM would be contrary to the safety 

zone’s intended objective since 

immediate action is needed to protect 

person’s and vessels against the hazards 

associated with fireworks displays on 

navigable waters. Such hazards include 

premature detonations, dangerous 

detonations, dangerous projectiles and 

falling or burning debris. Additionally, 

the zone should have negligible impact 

on vessel transits due to the fact that 

vessels will be limited from the area for 

only two hours on the day of the zone 

enforcement. Accordingly, under 5 

U.S.C. 553(b)(B), the Coast Guard finds 

that good cause exists for not publishing 

an NPRM. 

Under 5 U.S.C. 553(d)(3), the Coast 

Guard finds that good cause exists for 

making this rule effective less than 30 

days after publication in the Federal 

Register. Delaying this rule would be 

contrary to the public interest of 

ensuring the safety of spectators and 

vessels during this event and immediate 

action is necessary to prevent possible 

loss of life or property. 

Basis and Purpose 

This temporary safety zone is 

necessary to ensure the safety of vessels 

and spectators from hazards associated 

with a fireworks display. Based on the 

explosive hazards of fireworks, the 

Captain of the Port Sault Sainte Marie 

has determined that fireworks launches 

proximate to watercraft, piers and shore 

areas presents a significant risk to 

public safety and property. The likely 

combination of large numbers of 

recreation vessels, congested waterways, 

darkness punctuated by bright flashes of 

light, alcohol use, and debris falling into 

the water presents a significant risk of 

serious injuries or fatalities. Establishing 

a safety zone to control vessel 

movement around the location of the 

launch platform will help ensure the 

safety of persons and property at this 

event and help minimize the associated 

risks. 

Discussion of Rule 

A temporary safety zone is necessary 

to ensure the safety of spectators and 

vessels during the setup and launching 

of fireworks in conjunction with the 

Marquette 4th of July fireworks display. 

The fireworks display is planned to 

occur between 9:45 p.m. and 10:15 p.m. 

on July 4, 2010. If the fireworks event 

is postponed for any reason, the 

fireworks display would occur between 

9:45 p.m. and 10:15 p.m. on July 5, 

2010. 

The safety zone will be enforced from 

9 p.m. to 11 p.m. on July 4, 2010. If the 

event is postponed for any reason, the 

zone will be enforced from 9 p.m. to 11 

p.m. on July 5, 2010. 

The safety zone for the fireworks will 

encompass all waters of Marquette 

Harbor within a 1,000-foot radius of the 

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