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2011-23155

  • Federal Register, Volume 76 Issue 176 (Monday, September 12, 2011)[Federal Register Volume 76, Number 176 (Monday, September 12, 2011)]

    [Rules and Regulations]

    [Pages 56103-56107]

    From the Federal Register Online via the Government Printing Office [www.gpo.gov]

    [FR Doc No: 2011-23155]

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    COMMODITY FUTURES TRADING COMMISSION

    17 CFR Part 5

    Retail Foreign Exchange Transactions; Conforming Changes to

    Existing Regulations in Response to the Dodd-Frank Wall Street Reform

    and Consumer Protection Act

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Final rules; interpretation.

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    SUMMARY: The Commodity Futures Trading Commission (Commission or CFTC)

    is amending its regulations governing off-exchange foreign currency

    transactions with members of the retail public (i.e., retail forex

    transactions). These amendments (Amendments) are necessary to

    incorporate into Part 5 of the Commission's regulations changes made to

    the Commodity Exchange Act (CEA) by the Dodd-Frank Wall Street Reform

    and Consumer Protection Act (Dodd-Frank Act). The Commission is also

    issuing certain related technical interpretations of various provisions

    of the CEA as amended by the Dodd-Frank Act with respect to retail

    forex transactions.

    DATES: Effective September 12, 2011.

    FOR FURTHER INFORMATION CONTACT: Christopher W. Cummings, Special

    Counsel, Division of Clearing and Intermediary Oversight, or Barbara S.

    Gold, Associate Director, Division of Clearing and Intermediary

    Oversight, Commodity Futures Trading Commission, 1155 21st Street, NW.,

    Washington, DC 20581; telephone number: (202) 418-5450; facsimile

    number: (202) 418-5528; and electronic mail: ccummings@cftc.gov or

    bgold@cftc.gov, respectively.

    SUPPLEMENTARY INFORMATION:

    I. Background

    On July 21, 2010, President Obama signed the Dodd-Frank Act.\1\

    Title VII of the Dodd-Frank Act \2\ amended the CEA \3\ to establish a

    comprehensive new regulatory framework for swaps and security-based

    swaps. The goal of this legislation was to reduce risk, increase

    transparency, and promote market integrity within the financial system

    by,

    [[Page 56104]]

    among other things: (1) Providing for the registration and

    comprehensive regulation of swap dealers and major swap participants;

    (2) imposing clearing and trade execution requirements on standardized

    derivative products; (3) creating robust recordkeeping and real-time

    reporting regimes; and (4) enhancing the Commission's rulemaking and

    enforcement authorities with respect to, among others, all registered

    entities and intermediaries subject to the Commission's oversight.

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    \1\ See Dodd-Frank Wall Street Reform and Consumer Protection

    Act, Pub. L. No. 111-203, 124 Stat. 1376 (2010). The text of the

    Dodd-Frank Act may be accessed through the Commission's Web site at

    http://www.cftc.gov/.

    \2\ Pursuant to Section 701 of the Dodd-Frank Act, Title VII may

    be cited as the ``Wall Street Transparency and Accountability Act of

    2010.''

    \3\ 7 U.S.C. 1 et seq. (2006). The CEA also can be accessed

    through the Commission's Web site.

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    To accomplish its goal, the Dodd-Frank Act, among other things,

    amended the existing definitions in, and added new definitions to, CEA

    Section 1a, which has resulted in a reorganization and renumbering of

    the definitions in Section 1a.\4\ The Dodd-Frank Act also deleted two

    classes of persons and added a new class of person permitted to serve,

    or to offer to serve, as a counterparty to a retail forex transaction

    under CEA Section 2(c)(2)(B) (``permitted counterparty''), which

    similarly has resulted in a reorganization and redesignation of the CEA

    provisions identifying these permitted counterparties.\5\

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    \4\ See Dodd-Frank Act Section 721(a).

    \5\ See Dodd-Frank Act Section 742(c)(1).

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    As is explained below, the foregoing changes to the CEA necessitate

    corresponding amendments to Part 5 of the Commission's regulations,\6\

    which concerns retail forex transactions. In this regard, the

    Commission notes that it is also proposing other rulemakings in

    response to the Dodd-Frank Act that could affect the Part 5

    regulations.\7\ The Commission intends to resolve any discrepancies

    that may arise between any of these other rulemakings and the

    Amendments in the course of finalizing its rulemakings under the Dodd-

    Frank Act.

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    \6\ The Commission's regulations are found at 17 CFR Ch. I

    (2011) and can be accessed through the Commission's Web site, http://www.cftc.gov.

    \7\ See, e.g., Adaptation of Regulations to Incorporate Swaps,

    76 FR 33066 (Jun. 7, 2011) (``June 7 Proposal''), whereby in

    response to the deletion of the term ``derivatives transaction

    execution facility'' from the CEA by the Dodd-Frank Act, the

    Commission has proposed to delete reference to the term

    ``derivatives transaction execution facility'' from Regulation

    5.1(m), which defines the term ``retail forex transaction.''

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    II. The Amendments

    A. Amendments Resulting Solely From a Renumbering of a CEA Definition

    Several definitions in Regulation 5.1 employ the phrase ``eligible

    contract participant as that term is defined in [CEA] Section 1a(12).''

    Specifically, this phrase is found in the following definitions in

    Regulation 5.1: ``commodity pool operator'' (paragraph (d)(1) of the

    regulation); ``commodity trading advisor'' (paragraph (e)(1) of the

    regulation); ``introducing broker'' (paragraph (f)(1) of the

    regulation); ``retail forex account'' (paragraph (i) of the

    regulation); and ``retail forex account agreement'' (paragraph (j) of

    the regulation). However, as a result of the Dodd-Frank Act, the term

    ``eligible contract participant'' is now defined in CEA Section 1a(18).

    By the Amendments, the Commission is amending Regulations 5.1(d)(1),

    (e)(1), (f)(1), (i) and (j) to reflect this numbering change, such that

    each of the definitions contained in these regulations refers to CEA

    Section 1a(18).\8\

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    \8\ For the same reason, by the June 7 Proposal, the Commission

    proposed to amend the definition of the term ``retail forex

    customer'' in paragraph (k) of Regulation 5.1, such that the

    definition similarly would refer to Section 1a(18).

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    Regulations 5.10, which concerns risk assessment recordkeeping

    applicable to retail forex transactions, and 5.11, which concerns risk

    assessment reporting applicable to retail forex transactions, provide

    at paragraphs (c)(2) and (d)(2), respectively, that ``the term `Foreign

    Futures Authority' shall have the meaning set forth in [CEA] section

    1a(10).'' As a result of the Dodd-Frank Act, this term is now defined

    in CEA Section 1a(26). The Amendments similarly change Regulations

    5.10(c)(2) and 5.11(d)(2) to reflect this numbering change, such that

    the definition of ``Foreign Futures Authority'' refers to CEA Section

    1a(26).

    Regulation 5.18 establishes trading and operational standards for

    persons offering to serve as a retail forex counterparty. Specifically,

    paragraph (a)(1)(ii) refers to such persons as a ``[f]utures commission

    merchant as defined in [CEA] Section 1a(20).'' Pursuant to the Dodd-

    Frank Act, the term ``futures commission merchant'' (FCM) is now

    defined in CEA Section 1a(28). Accordingly, the Amendments likewise

    revise Regulation 5.18(a)(1)(ii) so that the FCM reference therein is

    to CEA Section 1a(28).

    B. Amendments Resulting From the Change in Permitted Counterparties

    Regulation 5.1(h) defines the term ``retail foreign exchange

    dealer'' (RFED) to mean ``any person that is, or that offers to be, the

    counterparty to a retail forex transaction, except for a person

    described in sub-paragraph (aa), (bb), (cc)(AA), (dd), (ee) or (ff) of

    [CEA] section 2(c)(2)(B)(i)(II).'' \9\ The Dodd-Frank Act: (1) Removed

    from this list of permitted counterparties the persons previously found

    in items (dd) and (ff), which respectively refered to certain insurance

    companies (including a regulated subsidiary or affiliate) and

    investment bank holding companies; (2) redesignated item (ee) as item

    (dd); and (3) redesignated item (gg) as item (ff).\10\ In light of

    these changes, the Amendments delete from Regulation 5.1(h)(1) the

    references therein to items (ee) and (ff) of CEA Section

    2(c)(2)(B)(i)(II). For similar reasons, the Amendments change the

    references in Regulations 5.10(a)(1), 5.11(a)(1) and 5.11(a)(2) to the

    authority pursuant to which a person is registered with the Commission

    as an RFED from CEA Section 2(c)(2)(B)(i)(II)(gg) to CEA Section

    2(c)(2)(B)(i)(II)(ff).

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    \9\ CEA Section 2(c)(2)(B) generally provides the Commission

    with authority over retail forex transactions.

    \10\ As a result of these changes, then, the identification of

    the permitted counterparties in CEA Section 2(c)(2)(B)(i)(II) runs

    from (aa) through (dd), skips (ee), and ends at (ff). See Part III

    of this Federal Register release, infra.

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    C. Amendments Related to the FCM Definition

    For the effective regulation of retail forex transactions, the CEA

    and Part 5 distinguish between an FCM that is ``primarily or

    substantially'' engaged in soliciting and accepting orders for

    exchange-traded futures contracts and accepting customer funds or

    property to margin or secure such contracts, who is permitted under CEA

    Section 2(c)(2)(B)(i)(II)(cc) to engage in retail forex transactions

    based on its registration as an FCM, and a person that is registered as

    an FCM but is not ``primarily or substantially'' engaged in those

    activities, who must register as an RFED in order to engage in retail

    forex transactions. Regulation 5.1(g) currently provides that the term

    ``[p]rimarily or substantially means, when used to describe the extent

    of a futures commission merchant's engagement in the activities

    described in section 1a(20)'' of the CEA, that the FCM's gross revenues

    meet certain thresholds, or that the FCM is a clearing member of a

    derivatives clearing organization.\11\ The Commission explained this

    distinction, which originated in the CFTC Reauthorization Act of 2008

    (CRA),\12\ as being ``for use in determining whether a registered FCM

    is primarily or substantially engaged in FCM activities, such that it

    need not register as an RFED in order to conduct customer business.''

    \13\

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    \11\ See CEA Section 5b and Part 39 of the Commission's

    regulations.

    \12\ See Title XIII of the Food, Conservation and Energy Act of

    2008, Public Law 110-246, 122 Stat. 1651, 2189-2204 (2008).

    \13\ 75 FR 3282, 3288 (Jan. 20, 2010).

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    Thus, the Commission defined the term ``primarily or

    substantially'' in

    [[Page 56105]]

    Regulation 5.1(g), and drafted the requirement to register as an RFED

    if a registered FCM was not engaged primarily or substantially in FCM

    activities, with reference to the activities described in the then-

    existing FCM definition and by means of a simple reference to ``the

    activities described in Section 1a(20)'' of the CEA. However, in

    addition to renumbering the FCM definition in the CEA from Section

    1a(20) to Section 1a(28), the Dodd-Frank Act amended the FCM definition

    itself to include certain activities involving swaps and retail forex

    transactions among the activities that bring a person within the FCM

    definition, and it added to the FCM definition any person that is

    registered with the Commission as an FCM.\14\ In order to maintain the

    distinction between FCM and RFED established by the CRA, the Amendments

    amend Regulations 5.1(g) and 5.3(a)(4)(i) such that each of these rules

    refers solely to those provisions of the CEA's FCM definition that were

    in effect at the time of adoption of the CRA--i.e., the activities

    that, pursuant to the Dodd-Frank Act, are now set forth in CEA Sections

    1a(28)(A)(i)(I)(aa)(AA) (``the purchase or sale of a commodity for

    future delivery'') and 1a(28)(A)(i)(II) (``in or in connection with the

    activities described in [item aa of subclause (I)], accepts any money,

    securities, or property (or extends credit in lieu thereof) to margin,

    guarantee, or secure any trades or contracts that result or may result

    therefrom'').

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    \14\ See Dodd-Frank Act Section 721(a)(13).

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    III. Interpretation of Dodd-Frank Act Amendments to CEA Sections

    2(c)(2)(B) and 2(c)(2)(C)

    As is noted above, the Dodd-Frank Act revised the list of permitted

    counterparties in CEA Section 2(c)(2)(B)(i)(II) from items (aa) through

    (gg), to items (aa) through (dd) and (ff) (without an item (ee)). It

    did so in order both to delete insurance companies and investment bank

    holding companies from the list of permitted counterparties in CEA

    Section 2(c)(2)(B)(i)(II) and to re-designate the items corresponding

    to the remaining permitted counterparties.\15\ However, in amending CEA

    Sections 2(c)(2)(B) and 2(c)(2)(C),\16\ the Dodd-Frank Act did not

    adjust certain internal references in these sections to reflect these

    changes to the list of permitted counterparties.

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    \15\ See Dodd-Frank Act Sections 741(b) and 742(c).

    \16\ CEA Section 2(c)(2)(C) generally provides the Commission

    with authority over certain transactions that are not within the

    scope of CEA Section 2(c)(2)(B).

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    Thus, for example, at numerous places CEA Section 2(c)(2)(B)

    continues to refers to item (gg), although item (gg) has been

    redesignated as item (ff).\17\ Similarly, in various other provisions

    of CEA Sections 2(c)(2)(B) and 2(c)(2)(C) the permitted counterparties

    other than FCMs and RFEDs are listed as either ``item (aa), (bb), (dd),

    (ee) or (ff)'' of CEA Section 2(c)(2)(B)(i)(II) or ``item (aa) through

    (ff)'' of CEA Section 2(c)(2)(B)(i)(II).\18\ These references now

    inadvertently include RFEDs, because RFEDs are now listed in item (ff).

    Finally, these same references inadvertently no longer include a

    financial holding company, because while the Dodd-Frank Act

    redesignated this permitted counterparty as item (dd), it nonetheless

    called for ``striking `(dd)' each place it appears'' in CEA Sections

    2(c)(2)(B) and 2(c)(2)(C).\19\

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    \17\ This occurs once each in CEA Sections 2(c)(2)(B)(iii),

    2(c)(2)(B)(iv)(I) and 2(c)(2)(B)(iv)(III), and twice in CEA Section

    2(c)(2)(B)(v).

    \18\ Reference to ``item (aa), (bb), (dd), (ee) or (ff)'' of CEA

    Section 2(c)(2)(B)(i)(II) occurs in Sections 2(c)(2)(B)(iv)(I)(aa),

    2(c)(2)(B)(iv)(I)(bb), 2(c)(2)(B)(iv)(I)(cc),

    2(c)(2)(B)(iv)(II)(aa), 2(c)(2)(C)(i)(I)(aa),

    2(c)(2)(C)(ii)(II)(aa), 2(c)(2)(C)(iii)(I)(aa),

    2(c)(2)(C)(iii)(I)(bb) and 2(c)(2)(C)(iii)(II)(aa). The reference to

    ``item (aa) through (ff)'' occurs in CEA Section

    2(c)(2)(B)(iv)(IV)(aa).

    \19\ Absent the interpretation being provided herein, the

    instruction in Dodd-Frank Act Sections 741(b)(8)(A) and 741(b)(9)(A)

    for ``striking `(dd)' each place it appears'' in CEA Sections

    2(c)(2)(B) and 2(c)(2)(C) not only would remove the (dd) item

    heading from Section 2(c)(2)(B)(i)(II)(dd) (which identifies a

    financial holding company as a permitted counterparty for retail

    forex transactions), but it would also affect all of the cross-

    references to ``item (aa), (bb), (dd), (ee) or (ff),'' identified

    previously.

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    To avoid any impediment to a full implementation of its regulatory

    program for retail forex transactions that any of the foregoing

    provisions might present, by this Federal Register release the

    Commission is issuing the following interpretations of the Dodd-Frank

    Act. First, to clarify that CEA Section 2(c)(2)(B)(i)(II) includes a

    financial holding company as a permitted counterparty to retail forex

    transactions, the Commission interprets the directions in Dodd-Frank

    Act Sections 741(b)(8) and (b)(9) to strike item ``(dd)'' each place it

    appears as a direction to strike item ``(ee)'' instead.\20\ This

    interpretation is necessary and appropriate because pursuant to the

    Dodd-Frank Act item (dd) includes a financial holding company as a

    permitted counterparty to retail forex transactions and item (ee) no

    longer exists in CEA Section 2(c)(2)(B)(i)(II). Second, to clarify that

    an RFED is a permitted counterparty, the Commission interprets each

    reference in CEA Sections 2(c)(2)(B) and 2(c)(2)(C) to ``item (gg) ''

    as a reference to ``item (ff).'' This interpretation similarly is

    necessary and appropriate because pursuant to the Dodd-Frank Act item

    (ff) includes an RFED as a permitted counterparty and item (gg) no

    longer exists in CEA Section 2(c)(2)(B)(i)(II).

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    \20\ Thus, CEA Section 2(c)(2)(B)(i)(II)(dd) retains its

    designation, and each reference to ``item (aa), (bb), (dd), (ee) or

    (ff)'' identified previously continues to include a reference to ``a

    financial holding company.''

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    IV. Related Matters

    A. Administrative Procedure Act

    The Administrative Procedure Act (APA) generally requires an agency

    to publish notice of a proposed rulemaking in the Federal Register.\21\

    This requirement does not apply, however, if the agency ``for good

    cause finds * * * that notice and public procedure are impracticable,

    unnecessary, or contrary to the public interest.'' \22\ In addition,

    the APA generally requires that an agency publish an adopted rule in

    the Federal Register 30 days before it becomes effective, with certain

    exceptions, including if an agency finds good cause.\23\ The Commission

    finds that notice and solicitation of comment before the effective date

    of the changes being made herein are unnecessary, inasmuch as the rule

    changes are entirely non-substantive technical adjustments, and the

    interpretation would do no more than clarify certain technical drafting

    anomalies to express what is clearly the intent of the Dodd-Frank

    Act.\24\ Accordingly, pursuant to section 553(b) of the APA, the

    Commission finds that there is good cause not to follow notice and

    comment procedures for this rulemaking. For the same reason, the

    Commission finds, pursuant to section 553(b) of the APA, that the

    Amendments may be made effective immediately upon publication in the

    Federal Register.

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    \21\ See 5 U.S.C. 553(b). This requirement does not apply to

    interpretative rules or general statements of policy.

    \22\ Id.

    \23\ See 5 U.S.C. 553(d).

    \24\ This finding also satisfies the requirements of the

    Congressional Review Act, specifically 5 U.S.C. 808(2), allowing the

    Proposal to become effective, notwithstanding the requirement of 5

    U.S.C. 801 (if a Federal agency finds that notice and public comment

    are ``impracticable, unnecessary or contrary to the public

    interest,'' a rule ``shall take effect at such time as the Federal

    agency promulgating the rule determines'').

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    B. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) \25\ requires that agencies,

    in proposing rules, consider the impact of those rules on small

    businesses.\26\ The

    [[Page 56106]]

    Commission previously has established certain definitions of ``small

    entities'' to be used by the Commission in evaluating the impact of its

    rules on such entities in accordance with the RFA.\27\ The Commission

    previously has determined that FCMs and RFEDs should not be considered

    small entities for purposes of the RFA.\28\ With respect to commodity

    pool operators (CPOs), the Commission previously has determined that a

    CPO is a small entity for the purpose of the RFA if it meets the

    criteria for an exemption from registration under Regulation

    4.13(a)(2).\29\ Thus, because the Amendments apply to registered CPOs,

    the RFA is not applicable to them. As for introducing brokers (IBs) and

    commodity trading advisors (CTAs), the Commission previously has stated

    that it would evaluate within the context of a particular rule proposal

    whether all or some affected IBs and CTAs would be considered to be

    small entities and, if so, the economic impact on them of the

    particular rule.\30\ In this regard, the Commission notes that the

    Amendments apply to registered IBs and registered CTAs, and do not

    change their existing obligations or burdens. Moreover, as is explained

    below, the Amendments will not have a significant economic impact on

    any person who would be affected thereby, because they will not impose

    any additional operational requirements or otherwise direct or confine

    the activities of affected persons. Accordingly, the Chairman hereby

    certifies pursuant to 5 U.S.C. 605(b) that the Amendments will not have

    a significant economic impact on a substantial number of small

    entities.

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    \25\ 5 U.S.C. 601 et seq. (2006).

    \26\ By its terms, the RFA does not apply to ``individuals.''

    See 48 FR 14933, n. 115 (Apr. 6, 1983).

    \27\ See 47 FR 18618 (Apr. 30, 1982).

    \28\ See 47 FR 18618, 18619 (Apr. 30, 1982) (FCMs) and 75 FR

    55410, 55416 (Sep. 10, 2010) (RFEDs).

    \29\ See 47 FR at 18619-20.

    \30\ See 48 FR 35248, 35276 (Aug. 3, 1993) (IBs) and 47 FR at

    18619, 18620 (CTAs).

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    C. Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 (PRA) \31\ imposes certain

    requirements on Federal agencies (including the Commission) in

    connection with their conducting or sponsoring any collection of

    information as defined by the PRA. The Commission believes that the

    Amendments will not impose new recordkeeping or information collection

    requirements that require approval by the Office of Management and

    Budget under 44 U.S.C. 3501, et seq. Accordingly, the PRA does not

    apply to this rulemaking.

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    \31\ 44 U.S.C. 3501 et seq.

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    D. Cost-Benefit Considerations

    Section 15(a) of the CEA \32\ requires the Commission to consider

    the costs and benefits of its actions before issuing a rulemaking under

    the CEA. By its terms, Section 15(a) does not require the Commission to

    quantify the costs and benefits of a rule or to determine whether the

    benefits of the rulemaking outweigh its costs; rather, it simply

    requires that the Commission ``consider'' the costs and benefits of its

    actions. Section 15(a) further specifies that the costs and benefits

    shall be evaluated in light of five broad areas of market and public

    concern: (1) Protection of market participants and the public; (2)

    efficiency, competitiveness and financial integrity of futures markets;

    (3) price discovery; (4) sound risk management practices; and (5) other

    public interest considerations. The Commission may 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 rule is necessary or appropriate to protect the public

    interest or to effectuate any of the provisions or accomplish any of

    the purposes of the CEA.

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    \32\ 7 U.S.C. 19(a).

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    Summary of Amendments. As is explained above, the Amendments to

    Part 5 ensure that the Commission's regulations governing retail forex

    transactions reflect changes made to the CEA by the Dodd-Frank Act by,

    e.g., aligning references in Part 5 to definitional and other

    provisions in the CEA with the appropriate provisions in the CEA as

    amended by the Dodd-Frank Act.

    Costs. With respect to costs, the Commission has determined that

    the costs of the Amendments will not be significant. This is because

    the Amendments will simply amend the current Part 5 text to take into

    account the numerical and designation changes made to the CEA as a

    result of the Dodd-Frank Act. No changes are being made to the existing

    regulatory framework. Thus there will be little (if any) costs to

    persons who will be affected by the Amendments.

    Benefits. With respect to benefits, the Commission has determined

    that the benefits of the Amendments will be significant. This is

    because they will maintain the customer protections currently provided

    under Part 5 by ensuring that the provisions of Part 5 accurately

    reflect the text of the CEA as amended by the Dodd-Frank Act.

    List of Subjects in 17 CFR Part 5

    Bulk transfers, Commodity pool operators, Commodity trading

    advisors, Consumer protection, Customer's money, securities and

    property, Definitions, Foreign exchange, Minimum financial and

    reporting requirements, Prohibited transactions in retail foreign

    exchange, Recordkeeping requirements, Retail foreign exchange dealers,

    Risk assessment, Special calls, Trading practices.

    For the reasons presented above, the Commission hereby amends

    Chapter I of Title 17 of the Code of Federal Regulations as follows:

    PART 5--OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS

    0

    1. The authority citation for part 5 is revised to read as follows:

    Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h,

    6i, 6k, 6m, 6n, 6o, 8, 9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21,

    and 23, as amended by Title VII of the Dodd-Frank Wall Street Reform

    and Consumer Protection Act, Pub. L. No. 111-203, 124 Stat. 1376

    (Jul. 21, 2010).

    Sec. 5.1 [Amended]

    0

    2. Section 5.1 is amended by:

    0

    a. Removing from paragraphs (d)(1)(i), (e)(1), (f)(1), (i) and (j) the

    words ``section 1a(12) of the Act'' and adding in their place the words

    ``section 1a(18) of the Act'';

    0

    b. Removing from paragraph (g) introductory text the words ``section

    1a(20) of the Act'' and adding in their place the words ``section

    1a(28)(A)(i)(I)(aa)(AA) of the Act and section 1a(28)(A)(i)(II) of the

    Act insofar as that section references the activities described in

    section 1a(28)(A)(i)(I)(aa)(AA)''; and

    0

    c. Removing from paragraph (h)(1) the words ``sub-paragraph (aa), (bb),

    (cc)(AA), (dd), (ee) or (ff)'' and adding in their place the words

    ``item (aa), (bb), (cc)(AA) or (dd)''.

    Sec. 5.3 [Amended]

    0

    3. Section 5.3 is amended by removing from paragraph (a)(4)(i)(A) the

    words ``section 1a(20) of the Act'' and adding in their place the words

    ``section 1a(28)(A)(i)(I)(aa)(AA) of the Act and section

    1a(28)(A)(i)(II) of the Act insofar as that section references the

    activities described in section 1a(28)(A)(i)(I)(aa)(AA)''.

    Sec. 5.10 [Amended]

    0

    4. Section 5.10 is amended by:

    0

    a. Removing from paragraph (a)(1) introductory text the words ``section

    2(c)(2)(B)(i)(II)(gg) of the Act'' and

    [[Page 56107]]

    adding in their place the words ``section 2(c)(2)(B)(i)(II)(ff) of the

    Act''; and

    0

    b. Removing from paragraph (c)(2) the words ``section 1a(10) of the

    Act'' and adding in their place the words ``section 1a(26) of the

    Act''.

    Sec. 5.11 [Amended]

    0

    5. Section 5.11 is amended by:

    0

    a. Removing from paragraph (a)(1) introductory text the words ``Section

    2(c)(2)(B)(i)(II)(gg) of the Act'' and adding in their place the words

    ``section 2(c)(2)(B)(i)(II)(ff) of the Act''; and

    0

    b. Removing from paragraph (a)(2) introductory text the words ``section

    2(c)(2)(B)(i)(II)(gg) of the Act'' and adding in their place the words

    ``section 2(c)(2)(B)(i)(II)(ff) of the Act''; and

    0

    c. Removing from paragraph (d)(2) the words ``section 1a(10) of the

    Act'' and adding in their place the words ``section 1a(26) of the

    Act''.

    Sec. 5.18 [Amended]

    0

    6. Section 5.18 is amended by removing from paragraph (a)(1)(ii) the

    words ``section 1a(20) of the Act'' and adding in their place the words

    ``section 1a(28) of the Act''.

    Issued in Washington, DC, on September 2, 2011, by the

    Commission.

    Sauntia S. Warfield,

    Assistant Secretary of the Commission.

    [FR Doc. 2011-23155 Filed 9-9-11; 8:45 am]

    BILLING CODE P

    Last Updated: September 12, 2011



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