66014 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Proposed Rules 

1 17 CFR 145.9. 

2See 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. 

3Under Section 701 of the Dodd-Frank Act, Title 

VII may be cited as the ‘‘Wall Street Transparency 

and Accountability Act of 2010.’’ 

4 7 U.S.C. 1 et seq. 

List of Subjects in 14 CFR Part 71 

Airspace, Incorporation by reference, 

Navigation (Air). 

The Proposed Amendment 

In consideration of the foregoing, the 

Federal Aviation Administration 

proposes to amend 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 FAA Order 7400.9U, 

Airspace Designations and Reporting 

Points, dated August 18, 2010, and 

effective September 15, 2010, is 

amended as follows: 

Paragraph 6005 Class E airspace areas 

extending upward from 700 feet or more 

above the surface of the earth. 

* * * * * 

ASW TX E5 Austin, Horseshoe Bay Resort 

Airport, TX [Amended] 

Horseshoe Bay Resort Airport, TX 

(Lat. 30°31′37′′ N., long. 98°21′32′′ W.) 

That airspace extending upward from 700 

feet above the surface within a 6.5-mile 

radius of Horseshoe Bay Resort Airport. 

Issued in Fort Worth, TX, on October 19, 

2010. 

Anthony D. Roetzel, 

Manager, Operations Support Group, ATO 

Central Service Center. 

[FR Doc. 2010–27258 Filed 10–26–10; 8:45 am] 

BILLING CODE 4901–13–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 160 

RIN 3038–AD13 

Privacy of Consumer Financial 

Information; Conforming Amendments 

Under Dodd-Frank Act 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing to amend its rules 

under part 160 of its Regulations to 

implement new statutory provisions 

enacted by Titles VII and X of the DoddFrank Wall Street Reform and Consumer 

Protection Act (‘‘Dodd-Frank Act’’). 

Section 1093 of the Dodd-Frank Act 

provides for certain amendments to 

Title V of the Gramm-Leach-Bliley Act 

(‘‘GLB Act’’)—which sets forth certain 

protections for the privacy of consumer 

financial information—affirming the 

Commission’s jurisdiction in this area. 

This proposal broadens the scope of Part 

160 to cover two new entities created by 

Title VII of the Dodd-Frank Act: Swap 

dealers and major swap participants. In 

addition, the Commission proposes to 

rename Part 160 as ‘‘Privacy of 

Consumer Financial Information under 

the Gramm-Leach-Bliley Act’’ to 

harmonize the title of this part with 

other parts of the Commission’s 

Regulations. 

DATES: Comments must be received on 

or before December 27, 2010. 

ADDRESSES: You may submit comments, 

identified by RIN number 3038–AD13, 

by any of the following methods: 

• Federal eRulemaking Portal: http:// 

www.regulations.gov. Follow the 

instructions for submitting comments. 

• E-mail: infoprivacy@cftc.gov. 

• 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. 

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 is exempt from disclosure under the 

Freedom of Information Act, 5 U.S.C. 

552, a petition for confidential treatment 

of the exempt information may be 

submitted according to the established 

rules in section 145.9 of the 

Commission’s Regulations.1

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, 5 U.S.C. 

551 et seq., and other applicable laws, 

and may be accessible under the 

Freedom of Information Act. 

FOR FURTHER INFORMATION CONTACT: Carl 

E. Kennedy, Counsel, Office of General 

Counsel, (202) 418–6625, e-mail: 

c_kennedy@cftc.gov, Commodity 

Futures Trading Commission, Three 

Lafayette Centre, 1155 21st Street, NW., 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: 

I. Background 

On July 21, 2010, President Obama 

signed the ‘‘Dodd-Frank Wall Street 

Reform and Consumer Protection Act’’ 

(‘‘Dodd-Frank Act’’).2 Title VII of the 

Dodd-Frank Act,3 which substantially 

amended the Commodity Exchange Act 

(‘‘CEA’’),4 established a comprehensive 

new regulatory framework for swaps 

and security-based swaps. It lowers risk 

in the financial system, increases 

transparency, and promotes market 

integrity by, among other things: (1) 

Providing for the comprehensive 

regulation of swap dealers and major 

swap participants; (2) imposing clearing 

and trade execution requirements on 

standardized products; (3) creating a 

robust real-time reporting regime; and 

(4) enhancing the Commission’s 

enforcement authorities. 

Title X of the Dodd-Frank Act creates 

a new consumer financial services 

regulator, the Bureau of Consumer 

Financial Protection (the ‘‘Bureau’’), that 

will assume most of the consumer 

financial services regulatory 

responsibilities currently spread among 

numerous agencies. More specifically, 

the Dodd-Frank Act removes from the 

jurisdiction of the Federal Trade 

Commission (‘‘FTC’’) its rulemaking and 

other authorities granted pursuant to 

Federal consumer law, and cedes that 

authority to the Bureau. In addition, 

section 1093 of the Dodd-Frank Act 

amends Title V of the GLB Act (15 

U.S.C. 6801 et seq.), to, inter alia, 

reaffirm the Commission’s authority to 

promulgate regulations to require 

entities that are subject to the 

Commission’s jurisdiction to provide 

certain privacy protections for consumer 

financial information. Specifically, 

section 1093 of the Dodd-Frank Act 

amends section 504 of the GLB Act by 

providing that ‘‘the [CFTC] shall have 

the authority to prescribe such 

regulations as may be necessary to carry 

out the purposes of [Title V of the GLB 


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5Public Law 106–102, 113 Stat. 1338 (1999) 

(codified in scattered sections of 12 U.S.C. and 15 

U.S.C.). 

6 GLB Act sections 501–510, 15 U.S.C. 6801– 

6809. 

7The other agencies subject to GLB Act 

jurisdiction include the Office of the Comptroller of 

the Currency (‘‘OCC’’); Board of Governors of the 

Federal Reserve System (‘‘Board’’); Federal Deposit 

Insurance Corporation (‘‘FDIC’’); Office of Thrift 

Supervision (‘‘OTS’’); National Credit Union 

Administration (‘‘NCUA’’); FTC; and Securities and 

Exchange Commission (‘‘SEC’’). 

8Section 160.3(h)(1) of the Commission’s 

Regulations defines the term consumer to mean ‘‘an 

individual who obtains or has obtained a financial 

product or service from [a financial institution] that 

is to be used primarily for personal, family or 

household purposes, or that individual’s legal 

representative.’’ 

9See 75 FR 55410, 55450 (Sept. 10, 2010). 

10The terms ‘‘SD’’ and ‘‘MSP’’ as used in this 

proposed regulation refer to the statutory 

definitions of such terms as defined in Title VII of 

the Dodd-Frank Act, and as may be further defined 

by the Commission in a future rulemaking. See 

section 721(b) of the Dodd-Frank Act, which 

provides that the Commission has the authority to 

adopt rules further defining any term in an 

amendment to the CEA in the Dodd-Frank Act. See 

also section 721(c) which provides that the 

Commission is required to adopt a rule to further 

define, inter alia, the terms ‘‘swap dealer’’ and 

‘‘major swap participant’’ to include transactions 

and entities that have been structured to evade 

provisions in the Dodd-Frank Act. 

11Section 1088 of the Dodd-Frank Act provides 

the CFTC with authority to implement regulations 

under sections 624 and 628 of the FCRA. 12New section 2(e) of the CEA—as enacted under 

723(a)(2) of the Dodd-Frank Act—provides that it is 

‘‘unlawful for any person, other than an eligible 

contract participant, to enter into a swap unless the 

swap is entered into on, or subject to the rules of, 

a board of trade designated as a contract market 

under section 5 [of the CEA].’’ 

Act] with respect to any financial 

institutions and other persons subject to 

the jurisdiction of the [CFTC] under 

section 5g of the [CEA].’’ (Emphasis 

added.) 

As enacted, Title V of the GLB Act 5

(‘‘Title V’’), inter alia, limits the 

instances in which a financial 

institution may disclose nonpublic 

personal information about a consumer 

to nonaffiliated third parties, and 

requires a financial institution to 

disclose to all of its customers the 

institution’s privacy policies and 

practices with respect to information 

sharing with both affiliates and 

nonaffiliated third parties.6

In 2000, the Commodity Futures 

Modernization Act of 2000 (‘‘CFMA’’) 

created section 5g of the CEA, providing 

that the Commission be treated as a 

Federal functional regulator within the 

meaning of Title V.7 Section 5g also 

granted the Commission the authority to 

adopt rules that establish appropriate 

standards for financial institutions 

subject to its jurisdiction to safeguard 

customer records and information. 

Section 5g provides that the following 

entities are subject to the Commission’s 

jurisdiction for the purposes of Title V: 

Futures commission merchants 

(‘‘FCMs’’), commodity trading advisors 

(‘‘CTAs’’), commodity pool operators 

(‘‘CPOs’’), and introducing brokers 

(‘‘IBs’’) (collectively, ‘‘CFTC registrants’’). 

The Commission’s consumer 

information privacy rules are set out in 

Part 160 of the Commission’s 

regulations, which require CFTC 

registrants to adopt appropriate policies 

and procedures that address safeguards 

to customer records and information, 

including initial and annual privacy 

notice requirements, opt-out provisions 

to the extent that these registrants wish 

to share such records and information 

with non-affiliates and other measures 

to protect nonpublic consumer 

information. The protections provided 

in Part 160 inure to the benefit of 

individual consumers.8 The 

Commission recently amended the 

scope of Part 160 and the definition of 

‘‘financial institution’’ to include retail 

foreign exchange dealers (‘‘RFEDs’’).9

Title VII of the Dodd-Frank Act 

creates two new entities over which the 

Commission has jurisdiction: Swap 

dealers (‘‘SDs’’) and major swap 

participants (‘‘MSPs’’).10 The 

Commission proposes in this 

rulemaking to: (1) Expand the scope of 

Part 160 of its Regulations to apply to 

SDs and MSPs; (2) in accordance with 

the transfer of authority in Title X, 

changing all references in Part 160 from 

the FTC to the Bureau; and (3) rename 

Part 160 to ‘‘Privacy of Consumer 

Financial Information under the 

Gramm-Leach-Bliley Act’’ to harmonize 

the title of part 160 with the new part 

of the Commission’s Regulations, which 

provide protections to certain customer 

information under the FCRA. 

The Commission requests comment 

on all aspects of these conforming 

amendments, as well as comment on 

specific provisions and issues 

highlighted in the section-by-section 

analysis below. 

II. Section-by-Section Analysis 

A. Specific Section Amendments 

Renaming Part 160 

Another provision in Title X of the 

Dodd-Frank Act, section 1088, provides 

that the Commission promulgate 

regulations under various sections of the 

Fair Credit Reporting Act, 15 U.S.C. 

1608 et seq. Similar to Title V of the 

GLB Act, the FCRA sets forth safeguards 

for the protection of a broader range of 

consumer information. Under a separate 

rulemaking, the Commission proposes 

to create a new part in its Regulations 

to provide protections under the FCRA. 

To harmonize the title of Part 160 with 

the new part being adopted by the 

Commission promulgated under Title X 

of the Dodd-Frank Act, the Commission 

proposes to rename Part 160 as ‘‘Privacy 

of Consumer Financial Information 

under the Gramm-Leach-Bliley Act.’’ 11

Regulation 160.1(b) Scope 

Regulation 160.1(b) sets out the scope 

of the Commission’s rules and identifies 

the financial institutions covered by the 

rules that include CFTC registrants 

regardless whether they are required to 

register with the Commission. The 

Commission proposes to add SDs and 

MSPs to the scope of Part 160 (and to 

the definition of ‘‘financial institution’’ 

therein) because, for example, these new 

entities may enter into swap 

transactions with individuals who 

qualify as ‘‘eligible contract 

participants’’.12 Section 1a(18)(A)(xi) 

defines ‘‘eligible contact participant’’ to 

include any individual who has 

amounts invested on a discretionary 

basis, the aggregate of which is in excess 

of either $10,000,000 or, if certain other 

qualifications are met, $5,000,000. As a 

result of this addition, SDs and MSPs 

that transact swaps with individuals 

would have to comply with the various 

provisions under Part 160, including 

requirements to protect the nonpublic 

personal information of these 

individuals. Of course, if any SD or MSP 

has no business interactions with 

natural persons, no obligations would 

arise under this proposal. This proposal 

would ensure that all CFTC registrants 

that enter into swap transactions with 

natural persons would provide privacy 

protections to any nonpublic, consumer 

information. 

Section 160.3—Definitions 

Since the scope of the proposed 

regulations would extend to SDs and 

MSPs, the Commission proposes to 

amend section 160.3 to add the 

definitions of SDs and MSPs to the list 

of defined terms under section 160.3. 

Specifically, the Commission proposes 

to define ‘‘major swap participant’’ to 

have the same meaning as in section 

1a(33) of the CEA, as further defined by 

the Commission’s Regulations, and 

includes any person registered as such 

thereunder. The Commission proposes 

to define ‘‘swap dealer’’ to have the same 

meaning as in section 1a(49) of the CEA, 

as further defined by the Commission’s 

Regulations, and includes any person 

registered as such thereunder. There are 

existing definitions and related 


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66016 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Proposed Rules 

13The heads of the other Federal agencies are: 

The Comptroller of the Currency; the Director of the 

Office of Thrift Supervision; the Secretary of the 

Department of Housing and Urban Development; 

the Director of the Office of Management and 

Budget; the Chairman of the National Credit Union 

Administration Board; and the Chairperson of the 

Corporation. 

14See 75 FR 57252–02 (Sept. 20, 2010). 

15 7 U.S.C. 19(a). 16 44 U.S.C. 3501 et seq. 

provisions under Part 160 that must be 

amended to include these new 

registrants. Specifically, the definitions 

of ‘‘financial institution’’, ‘‘affiliate’’, and 

‘‘you’’ must be amended to include swap 

dealers and major swap participants. 

Section 160.15—Other Exceptions to 

Notice and Opt Out Requirements 

As noted above, Title X of the DoddFrank Act transferred certain authority 

from the FTC to the Bureau. 

Accordingly, we changed the reference 

from the FTC to the Bureau in section 

160.15 to reflect that the Bureau is now 

a Federal functional regulator. 

Section 160.17(b)—Relation to State 

Laws 

As a result of the creation of the 

Bureau and the transfer of certain 

authority from the FTC to the Bureau, 

the Commission proposes to amend 

paragraph (b) by replacing it with the 

language similar to section 1041(a)(2) of 

the Dodd-Frank Act. This section 

clarifies the relationship of Title V to 

state consumer protection laws. 

Specifically, section 1041(a)(2) 

provides, ‘‘For the purposes of this 

section, a [State] statute, regulation, 

order, or interpretation * * * is not 

inconsistent with the provisions of 

[Title V] if the protection that such 

statute, regulation, order, or 

interpretation affords to consumers is 

greater than the protection provided 

under [Title V]. A determination 

regarding whether a [State] statute, 

regulation, order, or interpretation 

* * * is inconsistent with the 

provisions of [Title V] may be made by 

the Bureau on its own motion or in 

response to a nonfrivolous petition 

initiated by any interested person.’’ 

Section 160.30—Procedures To 

Safeguard Customer Records and 

Information 

Section 160.30 requires CFTC 

registrants to adopt policies and 

procedures that, among other things, 

address administrative, technical and 

physical safeguards for the protection of 

customer records and information. The 

Commission proposes to amend the 

introductory sentence of section 160.30 

to add SDs and MSPs to the list of CFTC 

registrants that must comply with this 

requirement. 

B. Effective Date 

Pursuant to section 1100H of the 

Dodd-Frank Act, the Commission 

proposes to make the proposed 

regulations—the affiliate marketing 

rules and the disposal rules—become 

effective on the ‘‘designated transfer 

date’’ of authority from various Federal 

agencies to the Bureau. Section 1062 of 

the Dodd-Frank Act provides that the 

‘‘designated transfer date’’ is a date 

designated in the Federal Register no 

later than 60 days after the enactment of 

the Dodd-Frank Act by the Secretary of 

the Treasury, the Chairman of the Board 

of Governors, the Chairman of the 

Federal Trade Commission, and several 

other Federal agencies.13 On September 

20, 2010, these Federal agencies issued 

a notice designating July 21, 2011 as the 

designated transfer date.14 As a result, 

the Commission proposes to adopt the 

affiliate marketing rules and the 

disposal rules on that date. 

III. Related Matters 

A. Cost-Benefit Analysis 

Section 15(a) of the CEA 15 requires 

the Commission to consider the costs 

and benefits of its actions before issuing 

an order under the CEA. By its terms, 

section 15(a) does not require the 

Commission to quantify the costs and 

benefits of amendments to regulations to 

determine whether the benefits of the 

amendments outweigh its costs; rather, 

it requires that the Commission 

‘‘consider’’ the costs and benefits of its 

actions. Section 15(a) further specifies 

that the costs and benefits shall be 

evaluated in light of five broad areas of 

market and public concern: (1) 

Protection of market participants and 

the public; (2) efficiency, 

competitiveness and financial integrity 

of futures markets; (3) price discovery; 

(4) sound risk management practices; 

and (5) other public interest 

considerations. The Commission may in 

its discretion give greater weight to any 

one of the five enumerated areas and 

could in its discretion determine that, 

notwithstanding its costs, a particular 

amendment is necessary or appropriate 

to protect the public interest or to 

effectuate any of the provisions or 

accomplish any of the purposes of the 

Act. The proposed conforming rule 

amendments would broaden the scope 

of Part 160 to cover SDs and MSPs. 

With respect to costs, the Commission 

has determined that the proposed 

conforming amendments are necessary 

to implement various consumer 

financial information privacy provisions 

as they relate to SDs and MSPs, by 

adding these new registrants to the list 

of financial institutions responsible for 

complying with its provisions under 

part 160 of its Regulations. 

The Commission has determined that 

market participants and the public may 

be harmed if these new registrants are 

not added to part 160. The notice 

requirements under part 160 were 

established to protect individual 

customers who do business with CFTC 

registrants. There is no reason why SDs 

and MSPs should be excluded from 

these requirements to the extent that 

they conduct business with a natural 

person. With respect to benefits, the 

Commission has determined that 

requiring financial institutions to 

protect the privacy of nonpublic 

personal information about consumers 

is a benefit that must be maintained 

given the risks to the public if it is not, 

given the minor costs to the financial 

institutions affected by the conforming 

amendments. 

The Commission invites public 

comment on its cost-benefit 

considerations. Commenters are also 

invited to submit any data or other 

information that they may have 

quantifying or qualifying the costs and 

benefits of the proposal. 

B. Paperwork Reduction Act 

Under the Paperwork Reduction Act 

(‘‘PRA’’) an agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless it displays a currently valid 

control number.16 The proposed 

amendments to Part 160 of the 

Commission’s Regulations include a 

collection of information within the 

meaning of the PRA. The Commission 

therefore is submitting this proposal to 

the Office of Management and Budget 

(‘‘OMB’’) for review in accordance with 

44 U.S.C. 3507(d) and 5 CFR 1320.11, 

together with a request for approval of 

a revision to the Commission’s currently 

approved collection associated with part 

160. The title of the collection of 

information to be revised is ‘‘Privacy of 

Consumer Financial Information,’’ OMB 

Control Number 3038–0055. If 

approved, the provision of notice to this 

revised collection of information would 

be mandatory for SDs and MSPs. 

1. Information Provided by Reporting 

Entities 

The proposed rule would require SDs 

and MSPs to provide initial and annual 

privacy and opt-out notices to all 

customers that are natural persons. It is 

not currently known how many SDs and 

MSPs will be required to register as 

such with the Commission, and this will 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
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17While staff believes that there may likely be 

approximately 200 swap dealers, we have taken a 

conservative approach in estimating that there will 

be 250 swap dealers for PRA purposes. 18 5 U.S.C. 601 et seq. 

not be known to the Commission until 

registration requirements for these 

entities become effective after July 15, 

2011, the date on which the Dodd-Frank 

Act becomes effective. 

Nonetheless, for purposes of 

calculating PRA burden, the 

Commission estimates that there will be 

approximately 300 SDs and MSPs who 

would be required to provide notices 

under part 160 on an initial and then on 

an annual basis.17 It is anticipated that 

most SDs and MSPs will not transact 

business with a significant number of 

natural persons, causing the 

Commission to estimate that each SD 

and MSP will issue an average of 20 

notices per year. As previously 

estimated, the average time per notice 

will be .24 hours. This will result in an 

annual aggregate of 1,440 burden hours. 

2. Information Collection Comments 

The Commission invites the public 

and other Federal agencies to comment 

on any aspect of the reporting and 

recordkeeping burdens discussed above. 

Pursuant to 44 U.S.C. 3506(c)(2)(B), the 

Commission solicits comments in order 

to: (i) Evaluate whether the proposed 

collection of information is necessary 

for the proper performance of the 

functions of the Commission, including 

whether the information will have 

practical utility; (ii) evaluate the 

accuracy of the Commission’s estimate 

of the burden of the proposed collection 

of information; (iii) determine whether 

there are ways to enhance the quality, 

utility, and clarity of the information to 

be collected; and (iv) minimize the 

burden of the collection of information 

on those who are to respond, including 

through the use of automated collection 

techniques or other forms of information 

technology. Comments may be 

submitted directly to the Office of 

Information and Regulatory Affairs, by 

fax at (202) 395–6566 or by e-mail at 

OIRAsubmissions@omb.eop.gov. Please 

provide the Commission with a copy of 

submitted comments so that they can be 

summarized and addressed in the final 

rule. Refer to the ADDRESSES section of 

this notice of proposed rulemaking for 

comment submission instructions to the 

Commission. A copy of the supporting 

statements for the collections of 

information discussed above may be 

obtained by visiting RegInfo.gov. OMB 

is required to make a decision 

concerning the collection of information 

between 30 and 60 days after 

publication of this release. 

Consequently, a comment to OMB is 

most assured of being fully effective if 

received by OMB (and the Commission) 

within 30 days after publication of this 

notice of proposed rulemaking. 

C. Regulatory Flexibility Act 

The Regulatory Flexibility Act 

(‘‘RFA’’) requires that agencies consider 

whether their proposed regulations will 

have a significant economic impact on 

a substantial number of small entities 

and, if so, provide a regulatory 

flexibility analysis respecting the 

impact.18 The Commission’s proposed 

regulations now will affect SDs and 

MSPs, in addition to the CFTC 

registrants that are currently subject to 

Commission’s Regulations under Part 

160. These regulations require periodic 

notice to be provided to individuals 

who obtain financial products or 

services primarily for personal, family, 

or household purposes from the 

institutions, and may be satisfied by the 

use of a model notice developed by the 

Commission and other regulatory 

agencies to minimize the burden of 

compliance. Accordingly, the 

Commission has determined that the 

obligations created by these rule 

amendments will not create a significant 

economic impact on a substantial 

number of small entities. Accordingly, 

the Chairman, on behalf of the 

Commission, hereby certifies pursuant 

to 5 U.S.C. 605(b) that the proposed 

rules will not have a significant impact 

on a substantial number of small 

entities. 

List of Subjects in 17 CFR Part 160 

Brokers, Dealers, Consumer 

protection, Privacy, Reporting and 

recordkeeping requirements. 

For the reasons articulated in the 

preamble, the Commission proposes to 

amend Part 160 of Title 17 of the Code 

of Federal Regulations as follows: 

1. The heading of part 160 is revised 

to read as follows: 

PART 160—PRIVACY OF CONSUMER 

FINANCIAL INFORMATION UNDER 

TITLE V OF THE GRAMM-LEACHBLILEY ACT 

2. The authority citation for part 160 

is revised to read as follows: 

Authority: 7 U.S.C. 7b–2 and 12a(5); 15 

U.S.C 6801, et seq., and title X, sec. 1093, 

Pub. L. 111–203, 124 Stat. 1376. 

3. Amend § 160.1 by revising 

paragraph (b) to read as follows: 

§ 160.1 Purpose and scope. 

* * * * * 

(b) Scope. This part applies only to 

nonpublic personal information about 

individuals who obtain financial 

products or services primarily for 

personal, family, or household purposes 

from the institutions listed below. This 

part does not apply to information about 

companies or about individuals who 

obtain financial products or services 

primarily for business, commercial, or 

agricultural purposes. This part applies 

to all futures commission merchants, 

retail foreign exchange dealers, 

commodity trading advisors, commodity 

pool operators, introducing brokers, 

major swap participants and swap 

dealers that are subject to the 

jurisdiction of the Commission, 

regardless whether they are required to 

register with the Commission. These 

entities are hereinafter referred to in this 

part as ‘‘you.’’ This part does not apply 

to foreign (non-resident) futures 

commission merchants, retail foreign 

exchange dealers, commodity trading 

advisors, commodity pool operators, 

introducing brokers, major swap 

participants and swap dealers that are 

not registered with the Commission. 

* * * * * 

4. Amend § 160.3 as follows: 

a. Revise paragraphs (a), (n)(1)(i), 

(n)(2)(i), and (o)(1)(i); 

b. Redesignating paragraphs (w) and 

(x) as paragraphs (y) and (z); 

c. Redesignating paragraphs (s) 

through (v) as paragraphs (t) through 

(w); 

d. Adding new paragraphs (s) and (x); 

and 

e. Revising newly designated 

paragraphs (y)(4) and (5) and adding 

new paragraphs (y)(6) and (7) to read as 

follows: 

§ 160.3 Definitions. 

* * * * * 

(a) Affiliate of a futures commission 

merchant, retail foreign exchange 

dealer, commodity trading advisor, 

commodity pool operator, introducing 

broker, major swap participant, or swap 

dealer means any company that 

controls, is controlled by, or is under 

common control with a futures 

commission merchant, retail foreign 

exchange dealer, commodity trading 

advisor, commodity pool operator, 

introducing broker, major swap 

participant, or swap dealer that is 

subject to the jurisdiction of the 

Commission. In addition, a futures 

commission merchant, retail foreign 

exchange dealer, commodity trading 

advisor, commodity pool operator, 

introducing broker, major swap 

participant, or swap dealer subject to 

the jurisdiction of the Commission will 


jlentini on DSKJ8SOYB1PROD with PROPOSALS
66018 Federal Register / Vol. 75, No. 207 / Wednesday, October 27, 2010 / Proposed Rules 

be deemed an affiliate of a company for 

purposes of this part if: 

(1) That company is regulated under 

Title V of the GLB Act by the Bureau of 

Consumer Financial Protection or by a 

Federal functional regulator other than 

the Commission; and 

(2) Rules adopted by the Bureau of 

Consumer Financial Protection or 

another Federal functional regulator 

under Title V of the GLB Act treat the 

futures commission merchant, retail 

foreign exchange dealer, commodity 

trading advisor, commodity pool 

operator, introducing broker, major 

swap participant, or swap dealer as an 

affiliate of that company. 

* * * * * 

(n)(1) * * * 

(i) Any futures commission merchant, 

retail foreign exchange dealer, 

commodity trading advisor, commodity 

pool operator, introducing broker, major 

swap participant, or swap dealer that is 

registered with the Commission as such 

or is otherwise subject to the 

Commission’s jurisdiction; and 

(ii) * * * 

(2) * * *: 

(i) Any person or entity, other than a 

futures commission merchant, retail 

foreign exchange dealer, commodity 

trading advisor, commodity pool 

operator, introducing broker, major 

swap participant, or swap dealer that, 

with respect to any financial activity, is 

subject to the jurisdiction of the 

Commission under the Act. 

* * * * * 

(o)(1) * * *: 

(i) Any product or service that a 

futures commission merchant, retail 

foreign exchange dealer, commodity 

trading advisor, commodity pool 

operator, introducing broker, major 

swap participant, or swap dealer could 

offer that is subject to the Commission’s 

jurisdiction; and 

* * * * * 

(s) Major swap participant. The term 

‘‘major swap participant’’ has the same 

meaning as in section 1a(33) of the 

Commodity Exchange Act, 7 U.S.C. 1 et 

seq., as may be further defined by this 

title, and includes any person registered 

as such thereunder. 

* * * * * 

(x) Swap dealer. The term ‘‘swap 

dealer’’ has the same meaning as in 

section 1a(49) of the Commodity 

Exchange Act, 7 U.S.C. 1 et seq., as may 

be further defined by this title, and 

includes any person registered as such 

thereunder. 

(y) * * * 

(4) Any commodity pool operator; 

(5) Any introducing broker; 

(6) Any major swap participant; and 

(7) Any swap dealer subject to the 

jurisdiction of the Commission. 

* * * * * 

5. Amend § 160.15 by revising 

paragraph (a)(4) to read as follows: 

§ 160.15 Other exceptions to notice and 

opt out requirements. 

(a) * * * 

(4) To the extent specifically 

permitted or required under other 

provisions of law and in accordance 

with the Right to Financial Privacy Act 

of 1978, 12 U.S.C. 3401 et seq., to law 

enforcement agencies (including a 

Federal functional regulator, the 

Secretary of the Treasury, with respect 

to 31 U.S.C. Chapter 53, Subchapter II 

(Records and Reports on Monetary 

Instruments and Transactions) and 12 

U.S.C. Chapter 21 (Financial 

Recordkeeping), a State insurance 

authority, with respect to any person 

domiciled in that insurance authority’s 

state that is engaged in providing 

insurance, and the Bureau of Consumer 

Financial Protection), self-regulatory 

organizations, or for an investigation on 

a matter related to public safety; 

* * * * * 

6. Amend § 160.17 by revising 

paragraph (b) to read as follows: 

§ 160.17 Relation to state laws. 

* * * * * 

(b) Greater protection under state law. 

For purposes of this section, a state 

statute, regulation, order or 

interpretation is not inconsistent with 

the provisions of this part if the 

protection such statute, regulation, 

order or interpretation affords to any 

consumer is greater than the protection 

provided under this part. A 

determination regarding whether a state 

statute, regulation, order, or 

interpretation is inconsistent with the 

provisions of this part may be made by 

the Bureau of Consumer Financial 

Protection, after consultation with the 

Commission, on its own motion or in 

response to a nonfrivolous petition 

initiated by any interested person. 

7. Revise § 160.30 to read as follows: 

§ 160.30 Procedures to safeguard 

customer records and information. 

Every futures commission merchant, 

retail foreign exchange dealer, 

commodity trading advisor, commodity 

pool operator, introducing broker, major 

swap participant, and swap dealer 

subject to the jurisdiction of the 

Commission must adopt policies and 

procedures that address administrative, 

technical and physical safeguards for 

the protection of customer records and 

information. 

By the Commission. 

Dated: October 19, 2010. 

David A. Stawick, 

Secretary. 

Statement of Chairman Gary Gensler 

Privacy of Consumer Financial 

Information; Conforming Amendments 

Under Dodd-Frank Act 

October 19, 2010 

I support today’s Commission vote on 

the notice of public rulemaking, which 

expands the scope of the Commission’s 

existing protections afforded to 

consumers’ information to two new 

entities created by the Dodd-Frank Act. 

The proposed rulemaking expands the 

Commission’s Part 160 rules to 

customers of swap dealers and major 

swap participants. Part 160 includes the 

Commission’s existing privacy rules for 

consumers. 

[FR Doc. 2010–26912 Filed 10–26–10; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 162 

RIN Number 3038–AD12 

Business Affiliate Marketing and 

Disposal of Consumer Information 

Rules 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is proposing regulations to 

implement new statutory provisions 

enacted by Title X of the ‘‘Dodd-Frank 

Wall Street Reform and Consumer 

Protection Act’’ (‘‘Dodd-Frank Act’’). 

These proposed regulations apply to 

futures commission merchants, retail 

foreign exchange dealers, commodity 

trading advisors, commodity pool 

operators, introducing brokers, swap 

dealers and major swap participants 

(collectively, ‘‘CFTC registrants’’). The 

Dodd-Frank Act provides the CFTC with 

authority to implement regulations 

under sections 624 and 628 of the Fair 

Credit Reporting Act (‘‘FCRA’’). The 

proposed regulations implementing 

section 624 of the FCRA require CFTC 

registrants to provide consumers with 

the opportunity to prohibit affiliates 

from using certain information to make 

marketing solicitations to consumers. 

The proposed regulations implementing 

section 628 of the FCRA require CFTC 

registrants that possess or maintain 

consumer report information in 

connection with their business activities 


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