Document ID: SEC-2018-1412-0001
Agency: sec
Document Type: Proposed Rule
Title: Proposed Revisions to Prohibitions and Restrictions on Proprietary Trading and Certain Interests in, and Relationships With, Hedge Funds and Private Equity Funds
Posted Date: 2018-09-11T04:00Z

[Federal Register Volume 83, Number 176 (Tuesday, September 11, 2018)]
[Proposed Rules]
[Pages 45860-45861]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-19649]

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DEPARTMENT OF TREASURY

Office of the Comptroller of the Currency

12 CFR Part 44

[Docket No. OCC-2018-0010]
RIN 1557-AE27

FEDERAL RESERVE SYSTEM

12 CFR Part 248

[Docket No. R-1608]
RIN 7100-AF 06

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 351

RIN 3064-AE67

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 75

RIN 3038-AE72

SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 255

[Release no. BHCA-3; File no. S7-14-18]
RIN 3235-AM10

Extension of Comment Period for Proposed Revisions to 
Prohibitions and Restrictions on Proprietary Trading and Certain 
Interests in, and Relationships With, Hedge Funds and Private Equity 
Funds

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); Securities and Exchange 
Commission (SEC); and Commodity Futures Trading Commission (CFTC) 
(collectively, the ``Agencies'').

ACTION: Notice of proposed rulemaking; extension of comment period.

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SUMMARY: On July 17, 2018, the Agencies published in the Federal 
Register a notice of proposed rulemaking (proposal) that would amend 
the regulations implementing section 13 of the Bank Holding Company 
Act. Section 13 contains certain restrictions on the ability of a 
banking entity and nonbank financial company supervised by the Board to 
engage in proprietary trading and have certain interests in, or 
relationships with, a hedge fund or private equity fund. The proposed 
amendments are intended to provide banking entities with clarity about 
what activities are prohibited and to improve supervision and 
implementation of section 13.
    In response to requests from commenters regarding issues addressed 
in the proposal, the public comment period has been extended for 30 
days until October 17, 2018. This action will allow interested persons 
additional time to analyze the proposal and prepare their comments.

DATES: The comment period for the notice of proposed rulemaking 
published on July 17, 2018 (83 FR 33432), regarding proposed revisions 
to prohibitions and restrictions on proprietary trading and certain 
interests in, and relationships with, hedge funds and private equity 
funds, is extended from September 17, 2018, to October 17, 2018.

ADDRESSES: You may submit comments by any of the methods identified in 
the proposal.\1\ Please submit your comments using only one method.
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    \1\ See 83 FR 33432, 33432-33 (July 17, 2018).

FOR FURTHER INFORMATION CONTACT: 
    OCC: Tabitha Edgens, Senior Attorney; Mark O'Horo, Attorney, Chief 
Counsel's Office, (202) 649-5510; for persons who are deaf or hearing 
impaired, TTY, (202) 649-5597, Office of the Comptroller of the 
Currency, 400 7th Street SW, Washington, DC 20219.
    Board: Kevin Tran, Supervisory Financial Analyst, (202) 452-2309, 
Amy Lorenc, Financial Analyst, (202) 452-5293, David Lynch, Deputy 
Associate Director, (202) 452-2081, David McArthur, Senior Economist, 
(202) 452-2985, Division of Supervision and Regulation; Flora Ahn, 
Senior Counsel, (202) 452-2317, Gregory Frischmann, Counsel, (202) 452-
2803, or Kirin Walsh, Attorney, (202) 452-3058, Legal Division, Board 
of Governors of the Federal Reserve System, 20th and C Streets NW, 
Washington, DC 20551. For the hearing impaired only,

[[Page 45861]]

Telecommunication Device for the Deaf (TDD), (202) 263-4869.
    FDIC: Bobby R. Bean, Associate Director, [email protected], Michael 
Spencer, Chief, Capital Markets Strategies Section, 
[email protected], or Brian Cox, Capital Markets Policy Analyst, 
[email protected], Capital Markets Branch, (202) 898-6888; Michael B. 
Phillips, Counsel, [email protected], Benjamin J. Klein, Counsel, 
[email protected], or Annmarie H. Boyd, Counsel, [email protected], Legal 
Division, Federal Deposit Insurance Corporation, 550 17th Street NW, 
Washington, DC 20429.
    SEC: Andrew R. Bernstein (Senior Special Counsel), Sophia Colas 
(Attorney-Adviser), Sam Litz (Attorney-Adviser), Aaron Washington 
(Special Counsel), Elizabeth Sandoe (Senior Special Counsel), Carol 
McGee (Assistant Director), or Josephine J. Tao (Assistant Director), 
at (202) 551-5777, Division of Trading and Markets, and Nicholas 
Cordell, Matthew Cook, Elizabeth Blase, Aaron Gilbride (Branch Chief), 
Brian McLaughlin Johnson (Assistant Director), and Sara Cortes 
(Assistant Director), at (202) 551-6787 or [email protected], Division of 
Investment Management, U.S. Securities and Exchange Commission, 100 F 
Street NE, Washington, DC 20549.
    CFTC: Erik Remmler, Deputy Director, (202) 418-7630, 
[email protected]; Cantrell Dumas, Special Counsel, (202) 418-5043, 
[email protected]; Jeffrey Hasterok, Data and Risk Analyst, (646) 746-
9736, [email protected], Division of Swap Dealer and Intermediary 
Oversight; Mark Fajfar, Assistant General Counsel, (202) 418-6636, 
[email protected], Office of the General Counsel; Stephen Kane, Research 
Economist, (202) 418-5911, [email protected], Office of the Chief 
Economist; Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW, Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On July 17, 2018, the Agencies published in 
the Federal Register a notice of proposed rulemaking that would amend 
the regulations implementing section 13 of the Bank Holding Company 
Act.\2\ Section 13 contains certain restrictions on the ability of a 
banking entity and nonbank financial company supervised by the Board to 
engage in proprietary trading and have certain interests in, or 
relationships with, a hedge fund or private equity fund. The proposed 
amendments are intended to provide banking entities with clarity about 
what activities are prohibited and to improve supervision and 
implementation of section 13. The proposal stated that the public 
comment period would close on September 17, 2018.\3\
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    \2\ 83 FR 33432-33605.
    \3\ 83 FR 33432-33605.
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    The Agencies have received requests from the public asking the 
Agencies to extend the comment period for the proposal.\4\ These 
requests suggested that an extension of the comment period would help 
commenters provide feedback on the proposed changes and detailed 
requests for comment in the proposal. This extension of the comment 
period will allow interested persons additional time to analyze the 
proposal and prepare their comments. Accordingly, the comment period 
for the proposal is extended from September 17, 2018, to October 17, 
2018.
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    \4\ See joint comment letter to the Agencies from Better 
Markets, Americans for Financial Reform, Public Citizen and the 
Center for American Progress (July 10, 2018); comment letter to the 
Agencies from U.S. Senators Sherrod Brown and Jeffrey A. Merkley 
(August 6, 2018); comment letter to the Agencies from the National 
Association of Federally-Insured Credit Unions (July 25, 2018).

    Dated: August 31, 2018.
Joseph M. Otting,
Comptroller of the Currency.
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary of the Board under delegated 
authority, August 29, 2018.
Ann E. Misback,
Secretary of the Board.
    Dated at Washington, DC on August 28, 2018. Federal Deposit 
Insurance Corporation.
Valerie Jean Best,
Assistant Executive Secretary.
    By the Securities and Exchange Commission.
    Dated: September 4, 2018.
Brent J. Fields,
Secretary.
    Issued in Washington, DC, on August 30, 2018, by the Commodity 
Futures Trading Commission.
Christopher J. Kirkpatrick,
Secretary of the Commodity Futures Trading Commission.
[FR Doc. 2018-19649 Filed 9-10-18; 8:45 am]
 BILLING CODE 6210-01-P; 4810-33-P; 6714-01-P; 8011-01-P; 6351-01-P