This section of the FEDERAL REGISTER

contains notices to the public of the proposed

issuance of rules and regulations. The

purpose of these notices is to give interested

persons an opportunity to participate in the

rule making prior to the adoption of the final

rules.

Proposed Rules Federal Register

13971 

Vol. 82, No. 50 

Thursday, March 16, 2017 

1Commission regulations referred to herein are 

found at 17 CFR chapter 1. Commission regulations 

are accessible on the Commission’s Web site, http:// 

www.cftc.gov. 

2The Commission previously proposed capital 

and financial reporting rules for SDs and MSPs in 

2011. See Capital Requirements of Swap Dealers 

and Major Swap Participants, 76 FR 27802 (May 12, 

2011). 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Parts 1, 23, and 40 

RIN 3038–AD54 

Capital Requirements of Swap Dealers 

and Major Swap Participants 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of proposed rulemaking; 

extension of comment period. 

SUMMARY: On December 16, 2016, the 

Commodity Futures Trading 

Commission (Commission or CFTC) 

published in the Federal Register a 

notice of proposed rulemaking 

(Proposal) to adopt new regulations and 

to amend existing regulations to 

implement sections 4s(e) and (f) of the 

Commodity Exchange Act (CEA), as 

added by section 731 of the Wall Street 

Reform and Consumer Protection Act 

(Dodd-Frank Act). Section 4s(e) requires 

the Commission to adopt capital 

requirements for swap dealers (SDs) and 

major swap participants (MSPs) that are 

not subject to capital rules of a 

prudential regulator. Section 4s(f) 

requires the Commission to adopt 

financial reporting and recordkeeping 

requirements for SDs and MSPs. The 

Commission also proposed to amend 

existing capital rules for futures 

commission merchants (FCMs), 

providing specific capital deductions for 

market risk and credit risk for swaps 

and security-based swaps entered into 

by an FCM. The Commission further 

proposed several technical amendments 

to the regulations. As is explained 

below, the Commission is extending for 

60 days the comment period for the 

Proposal. 

DATES: The comment period for the 

Proposal published on December 16, 

2016, at 81 FR 91252, is extended until 

May 15, 2017. 

ADDRESSES: You may submit comments, 

identified by RIN 3038–AD54 and 

‘‘Capital Requirements for Swap Dealers 

and Major Swap Participants’’, by any of 

the following methods: 

• CFTC Web site, via its Comments 

Online process: http://

comments.cftc.gov. Follow the 

instructions for submitting comments 

through the Web site. 

• Mail: Send to Chris Kirkpatrick, 

Secretary, Commodity Futures Trading 

Commission, 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. 

Please submit your comments using 

only one of these methods. 

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, a petition 

for confidential treatment of the exempt 

information may be submitted according 

to the procedures set forth in Regulation 

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 and other 

applicable laws, and may be accessible 

under the Freedom of Information Act. 

FOR FURTHER INFORMATION CONTACT: 

Eileen T. Flaherty, Director, Division of 

Swap Dealer and Intermediary 

Oversight, 202–418–5326, eflaherty@

cftc.gov; Thomas Smith, Deputy 

Director, Division of Swap Dealer and 

Intermediary Oversight, 202–418–5495, 

tsmith@cftc.gov; Jennifer C.P. Bauer, 

Special Counsel, Division of Swap 

Dealer and Intermediary Oversight, 202– 

418–5472, jbauer@cftc.gov; Joshua 

Beale, Special Counsel, Division of 

Swap Dealer and Intermediary 

Oversight, 202–418–5446, jbeale@

cftc.gov; Rafael Martinez, Senior 

Financial Risk Analyst, Division of 

Swap Dealer and Intermediary 

Oversight, 202–418–5462, rmartinez@

cftc.gov; Paul Schlichting, Assistant 

General Counsel, Office of the General 

Counsel, 202–418–5884, pschlichting@

cftc.gov; or Lihong McPhail, Research 

Economist, 202–418–5722, lmcphail@

cftc.gov, Office of the Chief Economist; 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: 

I. Background 

Section 731 of the Dodd-Frank Act 

amended the CEA by adding sections 

4s(e) and 4s(f). Section 4s(e) requires 

that the Commission adopt rules 

establishing capital requirements for 

SDs and MSPs to help ensure the safety 

and soundness of the SDs and MSPs. 

Section 4s(f), among other things, 

requires that the Commission adopt 

regulations related to financial reporting 

and recordkeeping by SDs and MSPs. 

The Proposal would adopt new 

regulations and amend existing 

regulations to implement the 

requirements of these CEA sections.2

The Proposal generally permits the 

application of three alternative 

approaches to the treatment of capital 

based upon existing U.S. bank 

regulators’ capital requirements or the 

CFTC’s future commission merchant 

and the Securities and Exchange 

Commission’s broker-dealer net liquid 

asset capital requirements. The Proposal 

further provides that SDs predominantly 

engaged in non-financial activities and 

MSPs may elect minimum capital 

requirements based upon the tangible 

net worth of the entities. SDs may use 

internal models for purposes of 

computing their regulatory capital, 

subject to prior approval by either the 

Commission or the National Futures 

Association. The Proposal would also 

require certain SDs and MSPs to satisfy 

defined liquidity and funding 

requirements and would place certain 


jstallworth on DSK7TPTVN1PROD with PROPOSALS
13972 Federal Register / Vol. 82, No. 50 / Thursday, March 16, 2017 / Proposed Rules 

limitations on the withdrawal of capital 

from SDs as part of the SD capital 

requirements. 

In implementing the provisions of 

Section 4s(f) of the CEA, the Proposal 

includes recordkeeping, reporting and 

notification requirements for SDs and 

MSPs relative to their respective capital 

requirements. The Proposal would also 

allow foreign SDs to comply with 

comparable capital requirements in the 

home jurisdiction under a program of 

substituted compliance. 

In addition to proposing minimum 

capital and financial reporting 

requirements for SDs and MSPs, the 

Proposal would also amend existing 

capital requirements for FCMs to 

establish specific capital requirements 

for FCMs that engage in swaps or 

security-based swaps that are not 

cleared by a clearing organization. The 

Proposal also includes certain technical 

amendments to several regulations as 

part of the proposed capital and 

financial recordkeeping and reporting 

requirements. 

II. Extension of Comment Period 

The comment period for the Proposal 

is due to expire on March 16, 2017. By 

letters dated February 24, 2017 and 

March 2, 2017, respectively, the 

Securities Industry and Financial 

Markets Association (SIFMA) and The 

Futures Industry Association (FIA), 

membership organizations representing 

many firms that would be affected by 

the Proposal, requested a 60-day 

extension of the comment period. In 

support of their requests, SIFMA and 

FIA explained that firms have extensive 

work to do in order to calculate the 

effect on their activities of the different 

types of proposed capital requirements. 

SIFMA further explained that the initial 

comment period overlaps with firms’ 

year-end accounting and reporting 

cycles as well as with the deadline for 

firms’ compliance with the 

Commission’s uncleared swaps margin 

rules, resulting in a significant drain on 

their resources. SIFMA and FIA noted 

that given the complexity of the 

Proposal it will require significant time 

beyond the Commission’s initial March 

16 comment deadline to fully assess the 

potential impact of the Proposal on 

firms’ operations. 

In light of the foregoing, and in 

response to the SIFMA and FIA 

requests, by this Federal Register 

release the Commission is extending the 

comment period for the Proposal for 60 

days, until May 15, 2017. 

Issued in Washington, DC, on March 13, 

2017, by the Commission. 

Robert N. Sidman, 

Deputy Secretary of the Commission. 

Note: The following appendix will not 

appear in the Code of Federal Regulations. 

Appendix to Capital Requirements of 

Swap Dealers and Major Swap 

Participants—Commission Voting 

Summary 

On this matter, Acting Chairman Giancarlo 

and Commissioner Bowen voted in the 

affirmative. No Commissioner voted in the 

negative. 

[FR Doc. 2017–05277 Filed 3–15–17; 8:45 am] 

BILLING CODE 6351–01–P 

FEDERAL COMMUNICATIONS 

COMMISSION 

47 CFR Parts 6, 7, 14, 20, 64, and 67 

[CG Docket No. 16–145 and GN Docket No. 

15–178; DA 17–197] 

Petition for Clarification, or in the 

Alternative Reconsideration of Action 

in Rulemaking Proceeding 

AGENCY: Federal Communications 

Commission. 

ACTION: Petition for clarification or 

reconsideration. 

SUMMARY: A Petition for Clarification, or 

in the Alternative Reconsideration 

(Petition) has been filed in the 

Commission’s rulemaking proceeding 

by T-Mobile USA, Inc. 

DATES: Comments to the Petition must 

be filed on or before March 31, 2017. 

Reply Comments must be filed on or 

before April 10, 2017. 

ADDRESSES: Federal Communications 

Commission, 445 12th Street SW., 

Washington, DC 20554. 

FOR FURTHER INFORMATION CONTACT: 

Michael Scott, Consumer and 

Governmental Affairs Bureau, email: 

Michael.Scott@fcc.gov; phone: (202) 

418–1264. 

SUPPLEMENTARY INFORMATION: This is a 

summary of the Commission’s 

document DA 17–197, released 

February 27, 2017. The full text of the 

Petition is available for viewing and 

copying at the FCC Reference 

Information Center, 445 12th Street SW., 

Room CY–A257, Washington, DC 20554 

or may be accessed online via the 

Commission’s Electronic Comment 

Filing System at: https://ecfsapi.fcc.gov

/file/102231846629100/T-Mobile%20RT

T%20Petition%20for%20Clarification

%20(2-22-17)%20FINAL.pdf. The 

Commission will not send a copy of this 

document pursuant to the Congressional 

Review Act, 5 U.S.C. 801(a)(1)(A), 

because this document does not have an 

impact on any rules of particular 

applicability. 

Subject: Transition from TTY to RealTime Text Technology, FCC 16–169, 

published at 82 FR 7699, January 23, 

2017 in CG Docket No. 16–145 and GN 

Docket No. 15–178. This document is 

being published pursuant to 47 CFR 

1.429(e). See also 47 CFR 1.4(b)(1) and 

1.429(f), (g). 

Number of Petitions Filed: 1. 

Federal Communications Commission. 

Karen Peltz Strauss, 

Deputy Chief, Consumer and Governmental 

Affairs Bureau. 

[FR Doc. 2017–05191 Filed 3–15–17; 8:45 am] 

BILLING CODE 6712–01–P 


jstallworth on DSK7TPTVN1PROD with PROPOSALS