79830 Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices 

1 73 FR 66847 (November 12, 2008). 

2 7 U.S.C. 1 et seq. 3 7 U.S.C. 6(c). 

4 7 U.S.C. 7a–1 

5 15 U.S.C. 78q–l. 

6 7 U.S.C. 7a–2(c), 17 CFR 39.4(a), 40.5. 

7See Section 5 of the CEA, 7 U.S.C. 7. 

8 15 U.S.C. 78f(g). 

9See SR–OCC–2008–13 and SR–OCC–2008–14. 

OCC has also filed these proposed rule changes 

with the Securities and Exchange Commission 

(‘‘SEC’’). 

10Section 4(c)(1) of the CEA, 7 U.S.C. 6(c)(1), 

provides in full that: 

In order to promote responsible economic or 

financial innovation and fair competition, the 

Commission by rule, regulation, or order, after 

notice and opportunity for hearing, may (on its own 

initiative or on application of any person, including 

any board of trade designated or registered as a 

contract market or derivatives transaction execution 

facility for transactions for future delivery in any 

commodity under section 7 of this title) exempt any 

agreement, contract, or transaction (or class thereof) 

that is otherwise subject to subsection (a) of this 

section (including any person or class of persons 

offering, entering into, rendering advice or 

rendering other services with respect to, the 

agreement, contract, or transaction), either 

unconditionally or on stated terms or conditions or 

for stated periods and either retroactively or 

prospectively, or both, from any of the requirements 

of subsection (a) of this section, or from any other 

provision of this chapter (except subparagraphs 

SUPPLEMENTARY INFORMATION: The PTs 

will meet to discuss the following 

agenda items. 

January 15, 2009, 1 p.m. to 4 p.m. (HST) 

1. Introductions 

2. Review draft ‘‘Risk Ranked’’ list of 

management unit species by 

Archipelago 

a. American Samoa 

b. Commonwealth of the Northern 

Mariana Islands 

c. Guam 

d. Hawaii & Pacific Remote Island 

Areas 

3. Establishment of annual catch 

limits (ACLs) for non-pelagic species 

with known maximum sustainable yield 

(MSY) values 

4. Emerging issues 

5. Plan Team Discussion and 

Recommendations 

6. Other Business 

Although non-emergency issues not 

contained in this agenda may come 

before this group for discussion, those 

issues may not be the subject of formal 

action during this meeting. Action will 

be restricted to those issues specifically 

listed in this notice and any issues 

arising after publication of this notice 

that require emergency action under 

section 305(c) of the Magnuson-Stevens 

Fishery Conservation and Management 

Act, provided the public has been 

notified of the Council’s intent to take 

final action to address the emergency. 

Special Accommodations 

These meetings are physically 

accessible to people with disabilities. 

Requests for sign language 

interpretation or other auxiliary aids 

should be directed to Kitty M. Simonds, 

(808) 522-8220 (voice) or (808) 522-8226 

(fax), at least 5 days prior to the meeting 

date. 

Authority: 16 U.S.C. 1801 et seq. 

Dated: December 23, 2008. 

Tracey L. Thompson, 

Acting Director, Office of Sustainable 

Fisheries, National Marine Fisheries Service. 

[FR Doc. E8–30989 Filed 12–29–08; 8:45 am] 

BILLING CODE 3510–22–S 

COMMODITY FUTURES TRADING 

COMMISSION 

Order Exempting the Trading and 

Clearing of Certain Products Related to 

iShares® COMEX Gold Trust Shares 

and iShares® Silver Trust Shares 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final order. 

SUMMARY: On November 12, 2008, the 

Commodity Futures Trading 

Commission (‘‘CFTC’’ or the 

‘‘Commission’’) published for public 

comment in the Federal Register 1 a 

proposal to exempt the trading and 

clearing of certain contracts called 

‘‘options’’ and other contracts called 

‘‘security futures’’ on each of iShares®

COMEX Gold Trust Shares (‘‘Gold 

Products’’) and iShares® Silver Trust 

Shares (‘‘Silver Products’’) (collectively, 

‘‘Gold and Silver Products’’) from the 

provisions of the Commodity Exchange 

Act (‘‘CEA’’) 2 and the regulations 

thereunder to the extent necessary to 

permit them to be traded and cleared as 

described below. The contracts are 

proposed to be traded on national 

securities exchanges (as to options) and 

designated contract markets registered 

with the Securities and Exchange 

Commission (‘‘SEC’’) as limited purpose 

national securities exchanges (as to 

security futures), and in both cases to be 

cleared through the Options Clearing 

Corporation (‘‘OCC’’) in its capacity as 

a registered securities clearing agency. 

Authority for this exemption is found in 

Section 4(c) of the CEA.3

DATES: Effective Date: December 3, 2008 

FOR FURTHER INFORMATION CONTACT: 

Robert B. Wasserman, Associate 

Director, 202–418–5092, 

rwasserman@cftc.gov, Division of 

Clearing and Intermediary Oversight, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1151 21st Street, NW., Washington, DC 

20581. 

SUPPLEMENTARY INFORMATION: 

I. Introduction 

The OCC is both a Derivatives 

Clearing Organization (‘‘DCO’’) 

registered pursuant to Section 5b of the 

CEA,4 and a securities clearing agency 

registered pursuant to Section 17A of 

the Securities Exchange Act of 1934 

(‘‘the ′34 Act’’).5

OCC filed with the CFTC, pursuant to 

Section 5c(c) of the CEA and 

Commission Regulations 39.4(a) and 

40.5 thereunder,6 requests for approval 

of rules and rule amendments that 

would enable OCC (1) to clear and settle 

contracts called ‘‘options’’ (‘‘Options’’) 

on Gold and Silver Products traded on 

national securities exchanges, in its 

capacity as a registered securities 

clearing agency (and not in its capacity 

as a DCO) and (2) to clear and settle 

contracts called ‘‘security futures’’ 

(‘‘Security Futures’’) on Gold and Silver 

Products traded on designated contract 

markets 7 registered with the SEC as 

limited purpose national securities 

exchanges pursuant to Section 6(g) of 

the ′34 Act 8 (‘‘DCMs’’) as security 

futures subject to the CEA and CFTC 

regulations thereunder governing 

security futures, in both cases in OCC’s 

capacity as a registered securities 

clearing agency (and not in its capacity 

as a DCO).9 Section 5c(c)(3) provides 

that the CFTC must approve such rules 

and rule amendments submitted for 

approval unless it finds that the rules or 

rule amendments would violate the 

CEA. 

The request for approval concerning 

the Options and Security Futures on 

Gold and Silver Products was filed 

effective July 23, 2008. By letter dated 

August 20, 2008, the Director of the 

Division of Clearing and Intermediary 

Oversight, pursuant to delegated 

authority, extended the review period of 

the request until October 21, 2008 due 

to the novel and complex issues raised 

by the products that are the subject of 

the request. By letters dated October 16, 

2008 and November 19, 2008, OCC 

consented to extensions of the review 

period, ultimately until December 3, 

2008. 

II. Section 4(c) of the Commodity 

Exchange Act 

Section 4(c)(1) of the CEA empowers 

the CFTC to ‘‘promote responsible 

economic or financial innovation and 

fair competition’’ by exempting any 

transaction or class of transactions from 

any of the provisions of the CEA 

(subject to exceptions not relevant here) 

where the Commission determines that 

the exemption would be consistent with 

the public interest.10 The Commission 


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Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices 79831 

(c)(ii) and (D) of section 2(a)(1) of this title, except 

that the Commission and the Securities and 

Exchange Commission may by rule, regulation, or 

order jointly exclude any agreement, contract, or 

transaction from section 2(a)(1)(D) of this title), if 

the Commission determines that the exemption 

would be consistent with the public interest. 

11HOUSE CONF. REPORT NO. 102–978, 1992 

U.S.C.C.A.N. 3179, 3213 (‘‘4(c) Conf. Report’’). 

12Section 4(c)(2) of the CEA, 7 U.S.C. 6(c)(2), 

provides in full that: 

The Commission shall not grant any exemption 

under paragraph (1) from any of the requirements 

of subsection (a) of this section unless the 

Commission determines that— 

(A) the requirement should not be applied to the 

agreement, contract, or transaction for which the 

exemption is sought and that the exemption would 

be consistent with the public interest and the 

purposes of this Act; and 

(B) the agreement, contract, or transaction— 

(i) will be entered into solely between appropriate 

persons; and 

(ii) will not have a material adverse effect on the 

ability of the Commission or any contract market or 

derivatives transaction execution facility to 

discharge its regulatory or self-regulatory duties 

under this Act. 

13CEA § 3(b), 7 U.S.C. 5(b). See also CEA 

§ 4(c)(1), 7 U.S.C. 6(c)(1) (purpose of exemptions is 

‘‘to promote responsible economic or financial 

innovation and fair competition.’’). 14 44 U.S.C. 3507(d). 

may grant such an exemption by rule, 

regulation or order, after notice and 

opportunity for hearing, and may do so 

on application of any person or on its 

own initiative. 

In enacting Section 4(c), Congress 

noted that the goal of the provision ‘‘is 

to give the Commission a means of 

providing certainty and stability to 

existing and emerging markets so that 

financial innovation and market 

development can proceed in an effective 

and competitive manner.’’ 11 Permitting 

Options and Security Futures on Gold 

and Silver Products to trade on national 

securities exchanges (as to Options) and 

DCMs (as to Security Futures) and in 

both cases be cleared by OCC in its 

capacity as a securities clearing agency, 

as discussed above, appears likely to 

foster both financial innovation and 

competition. In accordance with the 

Memorandum of Understanding entered 

into between the CFTC and the SEC on 

March 11, 2008, and in particular the 

addendum thereto concerning 

Principles Governing the Review of 

Novel Derivative Products, the 

Commission believes that novel 

derivative products that implicate areas 

of overlapping regulatory concern 

should be permitted to trade in either or 

both a CFTC- or SEC-regulated 

environment, in a manner consistent 

with laws and regulations (including the 

appropriate use of all available 

exemptive and interpretive authority). 

The Options and Security Futures on 

Gold and Silver Products described 

above are novel instruments. Given, 

among other things, their potential 

usefulness to the market the 

Commission believes that this is an 

appropriate case for issuing an 

exemption without making a finding as 

to the nature of these particular 

instruments. 

Section 4(c)(2) provides that the 

Commission may grant exemptions only 

when it determines: that the 

requirements for which an exemption is 

being provided should not be applied to 

the agreements, contracts or transactions 

at issue, and the exemption is consistent 

with the public interest and the 

purposes of the CEA; that the 

agreements, contracts or transactions 

will be entered into solely between 

appropriate persons; and that the 

exemption will not have a material 

adverse effect on the ability of the 

Commission or any contract market or 

derivatives transaction execution 

facility to discharge its regulatory or 

self-regulatory responsibilities under the 

CEA.12

In the November 12, 2008 Federal 

Register release, the CFTC requested 

comment as to whether this exemption 

from the requirements of the CEA and 

regulations thereunder should be 

granted in the context of these 

transactions. No comments were 

received. 

III. Findings and Conclusions 

After considering the complete record 

in this matter, the Commission has 

determined that the requirements of 

Section 4(c) have been met. First, the 

exemption is consistent with the public 

interest and with the purposes of the 

CEA, including ‘‘promot[ing] 

responsible innovation and fair 

competition among boards of trade, 

other markets and market 

participants.’’ 13 It appears consistent 

with these and the other purposes of the 

CEA, with the public interest, with the 

CFTC–SEC Memorandum of 

Understanding of March 11, 2008, and 

with the addendum thereto, for the 

mode of trading and clearing the 

Options and Security Futures on Gold 

and Silver Products to be determined by 

competitive market forces. 

Second, Options and Security Futures 

on Gold and Silver Products will be 

entered into solely between appropriate 

persons. Section 4(c)(3) includes within 

the term ‘‘appropriate persons’’ a 

number of specified categories of 

persons, and also in subparagraph (K) 

thereof ‘‘such other persons that the 

Commission determines to be 

appropriate in light of * * * the 

applicability of appropriate regulatory 

protections.’’ National securities 

exchanges and OCC, as well as their 

members who will intermediate Options 

on Gold and Silver Products, are subject 

to extensive and detailed regulation by 

the SEC under the ‘34 Act. Similarly, 

DCMs and OCC, as well as their 

members who will intermediate 

Security Futures on Gold and Silver 

Products, are subject to regulation by 

the SEC and CFTC. Given that the 

Options and Security Futures on Gold 

and Silver Products will be traded on 

national securities exchanges (as to 

Options) and DCMs (as to Security 

Futures), the regulatory protections 

available under securities laws and the 

applicable regulations governing 

security futures, and the goal of 

promoting fair competition, the Options 

and Security Futures on Gold and Silver 

Products will be traded by appropriate 

persons. 

Third, the exemption would not have 

a material adverse effect on the ability 

of the Commission or any DCM to carry 

out its regulatory responsibilities under 

the CEA. There is no reason to believe 

that granting an exemption here would 

interfere with the Commission’s or a 

DCM’s ability to oversee the trading of 

similar products or otherwise carry out 

its duties. 

Therefore, upon due consideration, 

pursuant to its authority under Section 

4(c) of the CEA, the Commission hereby 

issues this Order and exempts the 

trading of Options on Gold and Silver 

Products on national securities 

exchanges and the trading of Security 

Futures on Gold and Silver Products on 

DCMs registered with the SEC as limited 

purpose national securities exchanges, 

and the clearing of both the Options and 

Security Futures through the OCC in its 

capacity as a registered securities 

clearing agency, from the provisions of 

the CEA and the regulations thereunder, 

to the extent necessary to permit the 

Options and Security Futures to be so 

traded and cleared. 

This Order is subject to termination or 

revision, on a prospective basis, if the 

Commission determines upon further 

information that this exemption is not 

consistent with the public interest. If the 

Commission believes such exemption 

becomes detrimental to the public 

interest, the Commission may revoke 

this Order on its own motion. 

IV. Related Matters 

A. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(‘‘PRA’’) 14 imposes certain 

requirements on federal agencies 

(including the Commission) in 

connection with their conducting or 


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79832 Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices 

15 7 U.S.C. 19(a). 

16 7 U.S.C. 19(a). 

sponsoring any collection of 

information as defined by the PRA. The 

exemptive order will not require a new 

collection of information from any 

entities that would be subject to the 

proposed order. 

B. Cost-Benefit Analysis 

Section 15(a) of the CEA,15 as 

amended by Section 119 of the 

Commodity Futures Modernization Act 

of 2000,16 requires the Commission to 

consider the costs and benefits of its 

action before issuing an order under the 

CEA. By its terms, Section 15(a) as 

amended does not require the 

Commission to quantify the costs and 

benefits of an order or to determine 

whether the benefits of the order 

outweigh its costs. Rather, Section 15(a) 

simply requires the Commission to 

‘‘consider the costs and benefits’’ of its 

action. 

Section 15(a) of the CEA further 

specifies that costs and benefits shall be 

evaluated in light of five broad areas of 

market and public concern: Protection 

of market participants and the public; 

efficiency, competitiveness, and 

financial integrity of futures markets; 

price discovery; sound risk management 

practices; and other public interest 

considerations. Accordingly, the 

Commission could 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 

order was necessary or appropriate to 

protect the public interest or to 

effectuate any of the provisions or to 

accomplish any of the purposes of the 

CEA. 

The Commission has considered the 

costs and benefits of the order in light 

of the specific provisions of Section 

15(a) of the CEA, as follows: 

1. Protection of market participants 

and the public. National securities 

exchanges, DCMs, OCC and their 

members who would intermediate the 

above-described Options and Security 

Futures on Gold and Silver Products are 

subject to extensive regulatory 

oversight. 

2. Efficiency, competition, and 

financial integrity. The exemptive order 

appears likely to enhance market 

efficiency and competition since it 

could encourage potential trading of 

Options and Security Futures on Gold 

and Silver Products through modes 

other than those normally applicable to 

designated contract markets or 

derivatives transaction execution 

facilities. Financial integrity will not be 

affected since the Options and Security 

Futures on Gold and Silver Products 

will be cleared by OCC, a DCO and SECregistered clearing agency, and 

intermediated by SEC-registered brokerdealers. 

3. Price discovery. Price discovery 

may be enhanced through market 

competition. 

4. Sound risk management practices. 

The Options and Security Futures on 

Gold and Silver Products will be subject 

to OCC’s current risk-management 

practices including its margining 

system. 

5. Other public interest 

considerations. The exemptive order 

appears likely to encourage 

development of derivative products 

through market competition without 

unnecessary regulatory burden. 

The Commission requested comment 

on its application of these factors in the 

proposing release. No comments were 

received. 

After considering these factors, the 

Commission has determined to issue 

this order. 

* * * * * 

Issued in Washington, DC, on December 3, 

2008 by the Commission. 

David A. Stawick, 

Secretary of the Commission. 

Commissioner Michael V. Dunn 

Signing Statement 

CFTC Recommendations in Connection 

With iShares® Silver Trust Shares and 

iShares® COMEX Gold Trust Shares 

According to the CFTC/SEC 

Memorandum of Understanding (MOU), 

each of our agencies ‘‘recognizes that 

enhanced coordination and cooperation 

concerning issues of common regulatory 

interest is necessary in order to foster 

market innovation and fair competition 

and to promote efficiency in regulatory 

oversight.’’ The CFTC/SEC MOU further 

states that ‘‘the agencies can facilitate 

the introduction of novel derivative 

products to market users and investors.’’ 

While the CFTC and SEC may be 

adhering to the words of their MOU, I 

am not certain that we are following the 

spirit of this document. I fear that it is 

no easier today for novel products to get 

to market than it was pre-MOU. I also 

fear that if this lack of cooperation and 

coordination continues, given today’s 

financial environment, both agencies 

will be doing a disservice to the markets 

we regulate and the investors we seek to 

protect. I believe that in order to foster 

true cooperation between the CFTC and 

SEC, we must hold joint public 

meetings so that each agency’s 

Chairmen and Commissioners set a tone 

of cooperation for their staffs, and can 

be held accountable to those they serve 

if their coordination and cooperation 

does not foster the market innovation or 

efficiency the public demands. 

Pending before the Commission are 

requests by the Options Clearing 

Corporation (‘‘OCC’’) for approval of 

OCC rules allowing them to clear 

iShares® Silver Trust Shares and 

iShares® Comex Gold Trust Shares, and 

an order pursuant to Section 4(c) of the 

Commodity Exchange Act (CEA) 

exempting the trading and clearing of 

the iShares Option and Futures 

Contracts as options on securities and 

security futures. 

The propriety of treating the iShares 

Option and Futures Contracts as options 

on securities and security futures 

depends on the status of the underlying 

iShares contracts as securities. While I 

have questions about the status of the 

underlying iShares contracts as 

securities, see SEC v. W.J. Howey Co., 

328 U.S. 293 (1946), I believe innovative 

products, in a regulated environment, 

should be brought to market in a timely 

fashion. If, absent the 4(c) exemptive 

order, the OCC rules are permitted to be 

deemed approved, an inference might 

be drawn concerning the status of the 

iShares Option and Futures Contracts as 

securities. Accordingly, I am voting to 

approve the 4(c) exemptive order and, 

based on the Commission’s approval of 

that order, to approve the OCC rules. 

While I vote to approve the exemptive 

order and OCC rules, it is my hope that 

in the future, greater cooperation 

between our agencies will facilitate the 

introduction of similar innovative 

products regardless of who develops 

them. 

Dissenting in Part and Concurring in 

Part to Exemptive Order Exempting the 

Trading and Clearing of Certain 

Products Related to iShares COMEX 

Gold Trust Shares and iShares Silver 

Trust Shares and Approval of Request 

for Approval of Rules 

As I have noted previously in a 

similar context, I applaud efforts to 

enhance cooperation and coordination 

in approving innovative and novel 

products, and it is my hope and 

expectation that such efforts will 

improve in the near future. I dissent, 

however, from the Commission’s 

issuance of the above-referenced order, 

because—as I have stated before—I 

believe the Commission’s issuance of 

such an order should be predicated 

upon assurance that the SEC will 

similarly exercise its broad statutory 

exemptive authorities under the 

securities laws to permit futures 

exchanges to trade products that are 


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Federal Register / Vol. 73, No. 250 / Tuesday, December 30, 2008 / Notices 79833 

economically equivalent to those that 

are or may be approved for trading on 

national securities exchanges, and to 

allow derivatives clearing organizations 

to clear such products. My objective 

here is not to impair or impede the 

trading of such cross-jurisdictional 

products; rather, my concern is solely to 

ensure that futures markets are not in 

any way competitively disadvantaged. I 

dissent once again, as I have in the past, 

because I do not believe that we have up 

to this point reached the level of 

coordination and cooperation between 

our agencies that provides the assurance 

of such reciprocity. I look forward to 

working with colleagues at the SEC on 

such collaborative efforts promptly to 

achieve these goals. Given the issuance 

of the order, however, I concur in the 

approval of the request for approval of 

rules. 

Bart Chilton, 

Commissioner, Commodity Futures Trading 

Commission. 

[FR Doc. E8–31110 Filed 12–29–08; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF DEFENSE 

Office of the Secretary 

[Docket ID DOD–2008–OS–0163] 

Privacy Act of 1974; System of 

Records 

AGENCY: Office of the Secretary, DoD. 

ACTION: Notice to Add a System of 

Records. 

SUMMARY: The Office of the Secretary of 

Defense proposes to add a system of 

records to its inventory of record 

systems subject to the Privacy Act of 

1974 (5 U.S.C. 552a), as amended. 

DATES: This proposed action would be 

effective without further notice on 

January 29, 2009 unless comments are 

received which result in a contrary 

determination. 

ADDRESSES: Send comments to Chief, 

OSD/JS Privacy Office, Freedom of 

Information Directorate, Washington 

Headquarters Services, 1155 Defense 

Pentagon, Washington, DC 20301–1155. 

FOR FURTHER INFORMATION CONTACT: Ms. 

Cindy Allard at (703) 588–6830. 

SUPPLEMENTARY INFORMATION: The Office 

of the Secretary of Defense notices for 

systems of records subject to the Privacy 

Act of 1974 (5 U.S.C. 552a), as amended, 

have been published in the Federal 

Register and are available from the 

address above. 

The proposed system report, as 

required by 5 U.S.C. 552a(r) of the 

Privacy Act of 1974, as amended, was 

submitted on December 17, 2008, to the 

House Committee on Oversight and 

Government Reform, the Senate 

Committee on Governmental Affairs, 

and the Office of Management and 

Budget (OMB) pursuant to paragraph 4c 

of Appendix I to OMB Circular No. A– 

130, ‘Federal Agency Responsibilities 

for Maintaining Records About 

Individuals’, dated February 8, 1996 

(February 20, 1996, 61 FR 6427). 

Dated: December 18, 2008. 

Morgan E. Frazier, 

Alternate OSD Federal Register Liaison 

Officer, Department of Defense. 

DHRA 06 

SYSTEM NAME: 

National Security Education Program 

Records. 

SYSTEM LOCATION: 

National Security Education Program, 

1101 Wilson Blvd., Suite 1210, 

Arlington, VA 22209–2248. 

Institute of International Education, 

1400 K Street, 6th floor, Washington, DC 

20005. 

Trident Systems, Inc., 10201 Fairfax 

Blvd., Suite 300, Fairfax, VA 22030. 

CATEGORIES OF INDIVIDUALS COVERED BY THE

SYSTEM: 

Individuals who apply for the 

following scholarships or fellowships: 

David L. Boren Scholarships, English for 

Heritage Language Speakers 

Scholarships, David L. Boren 

Fellowships, and Flagship Fellowships. 

CATEGORIES OF RECORDS IN THE SYSTEM: 

Information collected on the online 

application and an award recipient 

includes not limited to: Title; full name; 

current address, city, state, and zip 

code; permanent address, city, state; 

Social Security Number (SSN); current 

telephone number and permanent 

telephone number; e-mail address; 

voting district; date of birth; country or 

state of birth; naturalization 

information; educational information; 

region, country, and language to be 

studied under award; other languages 

spoken; proficiency in language studied 

at time of award; overseas experience; 

relevant activities; honors and awards; 

government agencies of interest; 

proposed study abroad program 

information and budget; other 

scholarship funding information; 

gender; ethnicity; employer name and 

employer address; supervisor name, 

title, and telephone number; position 

title; employment dates and hours; 

language used in position; security 

clearance held for position; award type; 

date of award completion; graduation 

date; length of service requirement; date 

of availability for work; information on 

veteran’s preference, Federal 

employment history, and preferences 

with regard to being contacted by 

intelligence agencies; degree 

information; foreign language 

information; job history; overseas 

experience; other information e.g., 

special recognitions or memberships; 

special skills and qualifications; 

fieldwork or volunteer experience. 

AUTHORITY FOR MAINTENANCE OF THE SYSTEM: 

50 U.S.C. 1901 et. seq., as amended; 

Pub. L. 102–183, David L. Boren 

National Security Education Act of 

1991; DoDD 1025.6, National Security 

Education Program; and E.O. 9397 

(SSN). 

PURPOSE(S): 

To provide Americans with the 

resources and encouragement needed to 

acquire skills and experiences in areas 

of the world critical to the future 

security of nations in exchange for a 

commitment to seek work in the federal 

government. This will enable the 

National Security Education Program to 

select qualified applicants to be 

awarded National Security Education 

Program scholarships and fellowships. 

ROUTINE USES OF RECORDS MAINTAINED IN THE

SYSTEM, INCLUDING CATEGORIES OF USERS AND

THE PURPOSES OF SUCH USES: 

In addition to those disclosures 

generally permitted under 5 U.S.C. 

552a(b) of the Privacy Act, these records 

or information contained therein may 

specifically be disclosed outside the 

DoD as a routine use pursuant to 5 

U.S.C. 552a(b)(3) as follows: 

To authorized federal hiring officials 

to facilitate the recruiting of National 

Security Education Program award 

recipients into federal service for the 

purpose of fulfilling National Security 

Education Program’s mission. 

To the Boren Forum, the non-profit 

National Security Education Program 

alumni organization to confirm the 

name, award year and type of award of 

National Security Education Program 

award recipients. 

DISCLOSURE TO CONSUMER REPORTING

AGENCIES: 

Disclosures pursuant to 5 U.S.C. 

552a(b)(12) may be made from this 

system to ‘consumer reporting agencies’ 

as defined in the Fair Credit Reporting 

Act (14 U.S.C. 1681a(f)) or the Federal 

Claims Collection Act of 1966 (31 U.S.C. 

3701(a)(3)). The purpose of this 

disclosure is to aid in the collection of 

outstanding debts owed to the Federal 

government, typically to provide an 

incentive for debtors to repay 

delinquent Federal government debts by 


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