Federal Register, Volume 78 Issue 70 (Thursday, April 11, 2013)[Federal Register Volume 78, Number 70 (Thursday, April 11, 2013)]
[Rules and Regulations]
[Pages 21522-21523]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-08440]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 140
RIN 3038-AE04
Delegation of Authority To Disclose Confidential Information to a
Contract Market, Registered Futures Association or Self-Regulatory
Organization
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
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SUMMARY: The Commission is revising its regulations to add to its
delegation of authority to staff respecting the disclosure of
information to self-regulatory organizations newly established in the
Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'')
and not previously enumerated in the relevant regulations.
DATES: This rulemaking is effective on April 11, 2013.
FOR FURTHER INFORMATION CONTACT: Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581;
David Van Wagner, Chief Counsel, Division of Market Oversight,
telephone (202) 418-5481 and email [email protected]; and Robert
Wasserman, Chief Counsel, Division of Clearing and Risk, telephone
(202) 418-5092 and email [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
Section 8a(6) of the Commodity Exchange Act (``CEA''), 7 U.S.C.
12a(6), authorizes the Commission to communicate to the proper
committee of any registered entity the ``full facts concerning any
transaction or market operation, including the names of parties
thereto, which in the judgment of the Commission disrupts or tends to
disrupt any market or is otherwise harmful or against the best
interests of producers, consumers, or investors, or which is necessary
or appropriate to effectuate the purposes of [the CEA].'' The term
``registered entity'' has been defined to include boards of trade
designated as contract markets, derivatives clearing organizations,
swap execution facilities, swap data repositories, and certain
electronic facilities on which a contract determined by the Commission
to be a significant price discovery contract is executed or traded.\1\
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\1\ 7 U.S.C. 1a(40).
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The definition of ``registered entity'' in the CEA was amended by
the Dodd-Frank Act, which was enacted on July 21, 2010.\2\ Two new
categories of registered entity were established: Swap execution
facilities (``SEFs'') and swap data repositories (``SDRs''), which have
self-regulatory roles in the swaps markets established in the CEA and
its implementing regulations. Additionally, the core principles for
derivatives clearing organizations (``DCOs'') were revised to expand
the scope of a DCO's self-regulatory responsibilities, in particular
with respect to risk management. Commission regulations implementing
the core principles require, for example, monitoring by the DCO of the
large trader reports of its
[[Page 21523]]
members,\3\ which may necessitate the sharing of information by the
Commission to a DCO on a periodic basis.
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\2\ See Dodd-Frank Wall Street Reform and Consumer Protection
Act, Public Law 111-203, 124 Stat. 1376 (2010).
\3\ See 17 CFR 39.13(h)(2).
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In order to mitigate market disruptions, ensure the best interests
of market participants, and to effectuate any purpose of the CEA as
amended, the Commission is revising regulation 140.72 to permit the
provision of critical information to all of these registered entities.
Presently, the delegation of authority in regulation 140.72 provides
certain employees of the Commission with the authority to disclose
confidential information only to any contract market, registered
futures association, or certain self-regulatory organizations.\4\ With
this revision of regulation 140.72, the present delegation of authority
will be expanded to include all registered entities as defined in the
CEA and as permitted by section 8a(6) of the CEA.
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\4\ 17 CFR 140.72.
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II. Related Matters
A. Administrative Procedure Act
The revisions to the Commission's regulations in this rulemaking do
not establish any new substantive or legislative rules, but rather
relate solely to rules of agency organization, practice, or procedure.
Therefore, this rulemaking is excepted from the public notice and
comment provisions of the Administrative Procedure Act.\5\
Additionally, as the revisions to the Commission's regulations in this
rulemaking will not cause any party to undertake efforts to comply with
the regulations as revised, the Commission has determined to make this
rulemaking effective upon publication in the Federal Register.\6\
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\5\ 5 U.S.C. 553(b).
\6\ See 5 U.S.C. 553(d).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act requires the Commission to consider
whether the regulations it adopts will have a significant economic
impact on a substantial number of small entities.\7\ The Commission is
obligated to conduct a regulatory flexibility analysis for any rule for
which the agency publishes a general notice of proposed rulemaking
pursuant to section 553(b) of the Administrative Procedure Act.\8\ This
rulemaking is excepted from the public rulemaking provisions of the
Administrative Procedure Act. Accordingly, the Commission is not
obligated to conduct a regulatory flexibility analysis for this
rulemaking.
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\7\ See 5 U.S.C. 601 et seq.
\8\ 5 U.S.C. 601(2).
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C. Paperwork Reduction Act
The Commission may not conduct or sponsor, and a respondent is not
required to respond to, a collection of information contained in a
rulemaking unless the information collection displays a currently valid
control number issued by the Office of Management and Budget (``OMB'')
pursuant to the Paperwork Reduction Act.\9\ This rulemaking contains no
collection of information that obligates the Commission to obtain a
control number from OMB.
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\9\ See 44 U.S.C. 3501 et seq.
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List of Subjects in 17 CFR Part 140
Authority delegations (Government agencies), Organization and
functions (Government agencies).
For the reasons stated in the preamble, the Commission hereby
amends chapter I of title 17 of the Code of Federal Regulations as
follows:
PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION
0
1. The authority citation for part 140 is revised to read as follows:
Authority: 7 U.S.C. 2(a)(12) and 12(b).
Sec. 140.72 [Amended]
0
2. Amend Sec. 140.72 in the section heading and paragraphs (a), (b),
(d), and (f) by removing the words ``contract market'' wherever they
appear and adding in their place the words ``registered entity.''
Issued in Washington, DC, on April 5, 2013, by the Commission.
Christopher J. Kirkpatrick,
Deputy Secretary of the Commission.
[FR Doc. 2013-08440 Filed 4-10-13; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: April 11, 2013