Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 66829 

1Public Law 111–203, 124 Stat. 1376 (2010). 

2Public Law 111–203, 124 Stat. 1376 (2010). 

3 7 U.S.C. 1a(25) (‘‘a transaction that solely 

involves—(A) an exchange of 2 different currencies 

on a specific date at a fixed rate that is agreed upon 

on the inception of the contract covering the 

exchange; and (B) a reverse exchange of the 2 

currencies described in subparagraph (A) at a later 

date and at a fixed rate that is agreed upon on the 

inception of the contract covering the exchange.’’). 

4 7 U.S.C. 1a(24) (‘‘a transaction that solely 

involves the exchange of 2 different currencies on 

a specific future date at a fixed rate agreed upon on 

the inception of the contract covering the 

exchange.’’). 5 7 U.S.C. 1(a)(47)(E)(i)(I). 

6 7 U.S.C. 1(a)(47)(E)(i)(II). 

7Notwithstanding any such determination by the 

Secretary of the Treasury, all foreign exchange 

swaps and forwards must be reported to a swap 

data repository, and swap dealers and major swap 

participants that are parties to foreign exchange 

swaps and forwards transactions must conform to 

business conduct standards pursuant to the 

requirements of the Dodd-Frank Act and 

implementing regulations thereunder. 

8 7 U.S.C. 1b(a). 

Internal Revenue Service (IRS) 

OMB Number: 1545–2169. 

Type of Review: Extension without 

change to a currently approved 

collection. 

Title: NOTICE–2010–30 (NOTICE 

107632–10) Transitional Guidance for 

Taxpayers Claiming Relief Under the 

Military Spouses Residency Relief Act 

for Taxable Year 2009. 

Abstract: This notice provides relief 

for tax year 2009 to civilian spouses of 

servicemembers who claim the benefits 

of the taxation provisions under the 

Military Spouses Residency Relief Act 

(‘‘MSRRA’’). This notice provides certain 

civilian spouses working in a U.S. 

territory during 2009 but claiming a 

residence or domicile in one of the 50 

States or the District of Columbia for 

paying the tax due for their 2009 

Federal income tax returns. 

Additionally, this notice provides 

certain civilian spouses working in one 

of the 50 States or the District of 

Columbia during 2009 but claiming a 

residence or domicile in a U.S. territory 

under MSRRA with guidance on filing 

claims for refund of Federal income 

taxes that their employers withheld and 

remitted to the IRS or estimated tax 

payments the taxpayers paid to the IRS 

during 2009. 

Respondents: Individuals and 

Households. 

Estimated Total Burden Hours: 6,200 

hours. 

OMB Number: 1545–1610. 

Type of Review: Revision to a 

currently approved collection. 

Title: Application for Reward for 

Original Information. 

Form: 5500 and schedules. 

Abstract: Form 5500 is an annual 

information return filed by employee 

benefit plans. The IRS uses this 

information to determine if the plan 

appears to be operating properly as 

required under the law or whether the 

plan should be audited. 

Respondents: Private Sector: 

Businesses or other for-profit. 

Estimated Total Burden Hours: 

320,000 hours. 

Bureau Clearance Officer: R. Joseph 

Durbala, Internal Revenue Service, 1111 

Constitution Avenue, NW., Room 6129, 

Washington, DC 20224; (202) 622–3634. 

OMB Reviewer: Shagufta Ahmed, 

Office of Management and Budget, New 

Executive Office Building, Room 10235, 

Washington, DC 20503; (202) 395–7873. 

Dawn D. Wolfgang, 

Treasury PRA Clearance Officer. 

[FR Doc. 2010–27343 Filed 10–28–10; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Determination of Foreign Exchange 

Swaps and Forwards 

AGENCY: Department of the Treasury, 

Departmental Offices. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Commodity Exchange 

Act (‘‘CEA’’), as amended by Title VII of 

the Dodd-Frank Wall Street Reform and 

Consumer Protection Act (‘‘Dodd-Frank 

Act’’),1 permits the Secretary of the 

Treasury to issue a written 

determination exempting foreign 

exchange swaps, foreign exchange 

forwards, or both, from the definition of 

a ‘‘swap’’ under the CEA. The Secretary 

has made no determination whether an 

exemption is warranted. Although not 

required under the Dodd-Frank Act, the 

Department of the Treasury invites 

comment on whether such an 

exemption for foreign exchange swaps, 

foreign exchange forwards, or both, is 

warranted and on the application of the 

factors that the Secretary must consider 

in making a determination regarding 

these instruments. 

DATES: Written comments must be 

received on or before November 29, 

2010, to be assured of consideration. 

ADDRESSES: Submission of Comments: 

Please submit comments electronically 

through the Federal eRulemaking 

Portal—‘‘Regulations.gov.’’ Go to http:// 

www.regulations.gov to submit or view 

public comments. The ‘‘How to Use this 

Site’’ and ‘‘User Tips’’ link on the 

Regulations.gov home page provides 

information on using Regulations.gov, 

including instructions for submitting or 

viewing public comments, viewing 

other supporting and related materials, 

and viewing the docket after the close 

of the comment period. 

Please include your name, affiliation, 

address, e-mail address and telephone 

number(s) in your comment. All 

statements received, including 

attachments and other supporting 

materials, are part of the public record 

and subject to public disclosure. You 

should submit only information that 

you wish to make available publicly. 

FOR FURTHER INFORMATION CONTACT: 

Office of Financial Institutions Policy, 

1500 Pennsylvania Avenue, NW., 

Washington, DC 20220, (202) 622–2730, 

ofip@do.treas.gov. 

SUPPLEMENTARY INFORMATION: Section 

721 of the Dodd-Frank Act 2 amends 

section 1a of the CEA which, in relevant 

part, defines the term ‘‘swap’’ under the 

CEA. Section 1a(47)(E) of the CEA 

authorizes the Secretary of the Treasury 

to make a written determination that 

‘‘foreign exchange swaps’’ 3 or ‘‘foreign 

exchange forwards,’’ 4 or both, should 

not be regulated as swaps under the 

CEA,5 as amended by the Dodd-Frank 

Act, and are not structured to evade the 

Dodd-Frank Act in violation of any rule 

promulgated by the Commodity Futures 

Trading Commission (‘‘CFTC’’).6

In making the determination whether 

to exempt foreign exchange swaps and/ 

or foreign exchange forwards,7 the 

Secretary of the Treasury must consider 

the following factors: 

(1) Whether the required trading and 

clearing of foreign exchange swaps and 

foreign exchange forwards would create 

systemic risk, lower transparency, or 

threaten the financial stability of the 

United States; 

(2) Whether foreign exchange swaps 

and foreign exchange forwards are 

already subject to a regulatory scheme 

that is materially comparable to that 

established by the CEA for other classes 

of swaps; 

(3) The extent to which bank 

regulators of participants in the foreign 

exchange market provide adequate 

supervision, including capital and 

margin requirements; 

(4) The extent of adequate payment 

and settlement systems; and 

(5) The use of a potential exemption 

of foreign exchange swaps and foreign 

exchange forwards to evade otherwise 

applicable regulatory requirements.8

The Treasury Department is soliciting 

comments on the above factors, and any 

relevant information that may bear on 

the regulation of foreign exchange 

swaps and foreign exchange forwards as 

‘‘swaps’’ under the CEA, to assist in the 

Secretary’s consideration of whether to 

issue a determination under section 

1a(47) of the CEA. 

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66830 Federal Register / Vol. 75, No. 209 / Friday, October 29, 2010 / Notices 

9 7 U.S.C. 1b(b)(1). 

10 7 U.S.C. 1b(b)(2). 

In addition, the Treasury Department 

is particularly interested in comments 

on the questions set forth below: 

(1) Are foreign exchange swaps and/ 

or foreign exchange forwards 

qualitatively different from other classes 

of swaps in a way that makes them illsuited for regulation as ‘‘swaps’’ under 

the CEA? 9 Are there similarities 

between foreign exchange swaps and/or 

foreign exchange forwards and other 

products not defined as swaps under the 

CEA? 

(2) Are there objective differences 

between swaps and foreign exchange 

swaps and/or foreign exchange forwards 

that warrant an exemption for either or 

both of these instruments? 10

(3) Are there objective differences 

between long-dated and short-dated 

foreign exchange forwards and swaps 

such that one class may be less suited 

to regulation as ‘‘swaps’’ under the CEA 

than the other? Is the same true for 

dealer to dealer transactions versus 

transactions where one counterparty is 

a non-dealer? Similarly, does one or 

more of the above-referenced, five 

statutory factors support the application 

of certain requirements set forth in the 

CEA, but not others (e.g., centralized 

clearing, but not exchange trading), to 

foreign exchange swaps and/or foreign 

exchange forwards? 

(4) What are the primary risks in the 

foreign exchange swaps and forwards 

market, how significant are these risks, 

and how are these risks currently 

managed by market participants? Would 

centralized clearing and exchange 

trading address these risks? To what 

extent do current payment-versuspayment settlement arrangements 

address settlement risk? 

(5) To what extent is counterparty 

credit risk a significant concern in the 

foreign exchange swaps and forwards 

markets? If so, to what extent do current 

market practices (including netting and 

bilateral collateral support 

arrangements) mitigate these risks? 

What evidence, particularly during the 

period between 2007 and present, 

illustrate how current market practices 

have either addressed, or failed to 

respond, to these risks? 

(6) Are there ways to mitigate the 

risks posed by the trading of foreign 

exchange swaps or foreign exchange 

forwards without subjecting these 

instruments to regulation under the 

CEA? 

(7) Are there existing safeguards or 

systems that should be enhanced in 

order to protect against systemic or 

other risks in the foreign exchange 

swaps and forwards markets? What 

considerations are relevant to the 

application of Title VIII of the DoddFrank Act to the foreign exchange swaps 

and forwards markets, specifically to 

enhance supervision, strengthen risk 

management, and lower systemic risk? 

(8) Given that the Dodd-Frank Act 

requires all foreign exchange swaps and 

forwards be reported to a swap data 

repository, what is the current standard 

or practice in the foreign exchange 

market for reporting trades? 

(9) What would be the likely effects of 

mandatory U.S. clearing of foreign 

exchange swaps and/or forwards on 

foreign exchange market liquidity in the 

U.S. dollar? What would be the impact 

on the operations of U.S. end-users and 

U.S. dealers? 

(10) What other factors should the 

Secretary of the Treasury consider in 

determining whether to exempt foreign 

exchange swaps and/or forwards 

pursuant to section 1a(47) of the CEA? 

In addition, commenters are 

encouraged to submit supporting 

materials, including relevant 

transactional data, that would assist the 

Secretary’s consideration of the issues 

relating to an exemption for foreign 

exchange swaps or foreign exchange 

forwards, or both, under section 1a(47) 

of the CEA. 

Dated: October 19, 2010. 

Mary J. Miller, 

Assistant Secretary for Financial Markets. 

[FR Doc. 2010–27437 Filed 10–28–10; 8:45 am] 

BILLING CODE 4810–25–P 

WReier-Aviles on DSKGBLS3C1PROD with NOTICES