66426 Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices 

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). 

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

Docket No. Requester Regulation Nature of special permit 

PHMSA–2010–0124 ............. Gulf South Pipeline Company, 

LP.

49 CFR 192.611 To authorize GSPC to engage in an alternative approach to conduct risk 

control activities based on Integrity Management Program principles 

rather than lowering the Maximum Allowable Operating Pressure 

(MAOP) or replacing the subject pipe segment. This application is for 

three segments of GSPC Line TPL–880 in Mobile County, Alabama. 

These segments have changed from Class 1 and 2 locations to Class 

3. The pipeline is 30-inches in diameter and has a MAOP of 1,073 

psig. The segments that have changed Class Locations are 2,763 feet 

in length. The three segments are located at Station Number 318+78 

ft. to Station Number 322+14 ft., Station Number 435+63 ft. to Station 

Number 454+65 ft., and Station Number 455+85 ft. to Station Number 

461+08 ft. 

Authority: 49 U.S.C. 60118 (c)(1) and 49 

CFR 1.53. 

Issued in Washington, DC on October 20, 

2010. 

Linda Daugherty, 

Deputy Associate Administrator for Policy 

and Programs. 

[FR Doc. 2010–27238 Filed 10–27–10; 8:45 am] 

BILLING CODE 4910–60–P 

DEPARTMENT OF THE TREASURY 

Determination of Foreign Exchange 

Swaps and Forwards 

AGENCY: Departmental Offices, 

Department of the Treasury. 

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. 

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 


emcdonald on DSK2BSOYB1PROD with NOTICES
Federal Register / Vol. 75, No. 208 / Thursday, October 28, 2010 / Notices 66427 

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

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. 2010–27274 Filed 10–27–10; 8:45 am] 

BILLING CODE 4810–25–P 

DEPARTMENT OF THE TREASURY 

Internal Revenue Service 

Proposed Collection; Comment 

Request for Form 13551 

AGENCY: Internal Revenue Service (IRS), 

Treasury. 

ACTION: Notice and request for 

comments. 

SUMMARY: The Department of the 

Treasury, as part of its continuing effort 

to reduce paperwork and respondent 

burden, invites the general public and 

other Federal agencies to take this 

opportunity to comment on proposed 

and/or continuing information 

collections, as required by the 

Paperwork Reduction Act of 1995, 

Public Law 104–13 (44 U.S.C. 

3506(c)(2)(A)). Currently, the IRS is 

soliciting comments concerning Form 

13551, Application to Participate in the 

IRS Acceptance Agent Program. 

DATES: Written comments should be 

received on or before December 27, 2010 

to be assured of consideration. 

ADDRESSES: Direct all written comments 

to Gerald Shields, Internal Revenue 

Service, Room 6129, 1111 Constitution 

Avenue, NW., Washington, DC 20224. 

FOR FURTHER INFORMATION CONTACT: 

Requests for additional information or 

copies of the form and instructions 

should be directed to Elaine Christophe, 

(202) 622–3179, or at Internal Revenue 

Service, Room 6129, 1111 Constitution 

Avenue, NW., Washington, DC 20224, 

or through the Internet, at 

Elaine.H.Christophe@irs.gov. 

SUPPLEMENTARY INFORMATION: 

Title: Application to Participate in the 

IRS Acceptance Agent Program. 

OMB Number: 1545–1896. 

Form Number: 13551. 

Abstract: Form 13551 is used to 

gather information to determine 

applicant’s eligibility in the Acceptance 

Agent Program. 

Current Actions: There are no changes 

being made to the form at this time. 

Type of Review: Extension of a 

currently approved collection. 

Affected Public: Businesses or other 

for-profit organizations, not-for-profit 

institutions, and Federal, state, local or 

tribal government. 

Estimated Number of Respondents: 

12,825. 

Estimated Time per Respondent: 30 

minutes. 

Estimated Total Annual Burden 

Hours: 6,413. 

The following paragraph applies to all 

of the collections of information covered 

by this notice: 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

unless the collection of information 

displays a valid OMB control number. 

Books or records relating to a collection 

of information must be retained as long 

as their contents may become material 

in the administration of any internal 

revenue law. Generally, tax returns and 

tax return information are confidential, 

as required by 26 U.S.C. 6103. 

Request for Comments: Comments 

submitted in response to this notice will 

be summarized and/or included in the 

request for OMB approval. All 

comments will become a matter of 

public record. Comments are invited on: 

(a) Whether the collection of 

information is necessary for the proper 

performance of the functions of the 

agency, including whether the 

information shall have practical utility; 

(b) the accuracy of the agency’s estimate 

of the burden of the collection of 

information; (c) ways to enhance the 

quality, utility, and clarity of the 

information to be collected; (d) ways to 

minimize the burden of the collection of 

information on respondents, including 

through the use of automated collection 

techniques or other forms of information 

technology; and (e) estimates of capital 

or start-up costs and costs of operation, 

maintenance, and purchase of services 

to provide information. 


emcdonald on DSK2BSOYB1PROD with NOTICES