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2012-24179

  • Federal Register, Volume 77 Issue 191 (Tuesday, October 2, 2012)[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]

    [Notices]

    [Pages 60113-60114]

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

    [FR Doc No: 2012-24179]

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    COMMODITY FUTURES TRADING COMMISSION

    SECURITIES AND EXCHANGE COMMISSION

    [Release No. 34-67927; File No. S7-32-11]

    Acceptance of Public Submissions Regarding the Study of Stable

    Value Contracts

    AGENCY: Commodity Futures Trading Commission; Securities and Exchange

    Commission.

    ACTION: Request for comment; reopening of comment period.

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    SUMMARY: The Commodity Futures Trading Commission (the ``CFTC'') and

    the Securities and Exchange Commission (the ``SEC'' and, together with

    the CFTC, the ``Commissions'') are reopening the comment period for a

    study to determine whether stable value contracts (``SVCs'') fall

    within the definition of a swap. The study is required by Section

    719(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act

    (the ``Dodd-Frank Act''). The original comment period for the study

    closed on September 26, 2011. The Commissions did not complete the

    study pending adoption of final rules further defining the terms

    ``swap'' and ``security-based swap.'' The Commissions are considering

    the study in light of the recent adoption of these final rules.

    Accordingly, the Commissions are reopening for 30 days the time period

    in which to provide the Commissions with comments.

    DATES: Comments should be received on or before November 1, 2012.

    ADDRESSES: Comments may be submitted by any of the following methods:

    CFTC

    Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments

    through the Web site.

    Mail: Sauntia S. Warfield, Assistant Secretary, Commodity

    Futures Trading Commission, Three Lafayette Centre, 1155 21st Street

    NW., Washington, DC 20581.

    Hand Delivery/Courier: Same as mail above.

    Federal eRulemaking Portal: http://www.regulations.gov.

    Follow the instructions for submitting comments.

    Please submit your comments using only one method. ``Stable Value

    Contract Study'' must be in the subject field of responses submitted

    via email, and clearly indicated on written submissions. All comments

    must be submitted in English, or if not, accompanied by an English

    translation. Comments will be posted as received to www.cftc.gov. You

    should submit only information that you wish to make available

    publicly. If you wish the CFTC to consider information that you believe

    is exempt from disclosure under the Freedom of Information Act, a

    petition for confidential treatment of the exempt information may be

    submitted according to the procedures established in section 145.9 of

    the CFTC's regulations.\1\

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    \1\ 17 CFR 145.9.

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    The CFTC reserves the right, but shall have no obligation, to

    review, pre-screen, filter, redact, refuse, or remove any or all of

    your submission from www.cftc.gov that it may deem to be

    [[Page 60114]]

    inappropriate for publication, including obscene language. All

    submissions that have been redacted or removed that contain comments on

    the merits of the rulemaking will be retained in the public comment

    file and will be considered as required under applicable laws, and may

    be accessible under the Freedom of Information Act.

    SEC

    Electronic Comments

    Use the SEC's Internet comment form (http://www.sec.gov/rules/other);

    Send an email to rule-comments@sec.gov. Please include

    File Number S7-32-11 on the subject line; or

    Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.

    Paper Comments

    Send paper comments in triplicate to Elizabeth M. Murphy,

    Secretary, Securities and Exchange Commission, 100 F Street NE.,

    Washington, DC 20549-1090.

    All submissions should refer to File Number S7-32-11. This file number

    should be included on the subject line if email is used. To help us

    process and review your comments more efficiently, please use only one

    method. The SEC will post all comments on the SEC's Internet web site

    (http://www.sec.gov/rules/other). Comments will also be available for

    Web site viewing and printing in the SEC's Public Reference Room, 100 F

    Street NE., Washington, DC 20549, on official business days between the

    hours of 10 a.m. and 3 p.m. All comments received will be posted

    without change; the SEC does not edit personal identifying information

    from submissions. You should submit only information that you wish to

    make available publicly.

    FOR FURTHER INFORMATION CONTACT: CFTC: Stephen A. Kane, Research

    Economist, Office of the Chief Economist, (202) 418-5911,

    skane@cftc.gov; or David E. Aron, Counsel, Office of the General

    Counsel, (202) 418-6621, daron@cftc.gov, Commodity Futures Trading

    Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,

    DC 20581; SEC: Donna Chambers, Senior Special Counsel, (202) 551-5870,

    Division of Trading and Markets, Securities and Exchange Commission,

    100 F Street NE., Washington, DC 20549-8010.

    SUPPLEMENTARY INFORMATION: Pursuant to section 719(d)(1)(A) of the

    Dodd-Frank Act, the Commissions jointly must conduct a study to

    determine whether SVCs fall within the definition of a swap.\2\ Section

    719(d)(1)(A) of the Dodd-Frank Act also requires the Commissions, in

    making such determination, jointly to consult with the Department of

    Labor, the Department of the Treasury, and the State entities that

    regulate the issuers of SVCs.

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    \2\ The term ``swap'' is defined in Commodity Exchange Act

    (``CEA'') section 1a(47), 7 U.S.C. 1a(47). The term ``security-based

    swap'' is defined as an agreement, contract, or transaction that is

    a ``swap'' (without regard to the exclusion from that definition for

    security-based swaps) and that also has certain characteristics

    specified in the Dodd-Frank Act. See section 3(a)(68) of the

    Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(68). Thus, a

    determination regarding whether SVCs fall within the definition of a

    swap also is relevant to a determination of whether SVCs fall within

    the definition of the term ``security-based swap.''

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    If the Commissions determine that SVCs fall within the definition

    of a swap, they jointly must determine if an exemption for SVCs from

    the definition of a swap is appropriate and in the public interest and

    issue regulations implementing such determination.\3\ Until the

    effective date of any such regulations, and notwithstanding any other

    provision of Title VII of the Dodd-Frank Act, the Title VII

    requirements will not apply to SVCs.\4\

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    \3\ See section 719(d)(1)(B) of the Dodd-Frank Act.

    \4\ See section 719(d)(1)(C) of the Dodd-Frank Act.

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    On August 18, 2011, the Commissions requested comment regarding the

    study of SVCs required by Section 719(d) of the Dodd-Frank Act.\5\

    Specifically, the request for comment included 29 questions and

    encouraged commenters to provide additional relevant information beyond

    that specified in the questions. The Commissions originally requested

    that comments be received by September 26, 2011.\6\

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    \5\ See Acceptance of Public Submissions Regarding the Study of

    Stable Value, 76 FR 53162 (Aug. 25, 2011).

    \6\ Id.

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    Given the regulatory developments since the initial request for

    comment was issued, specifically the adoption of final rules further

    defining the terms ``swap'' and ``security-based swap,'' \7\ the

    Commissions believe that it would be appropriate to solicit additional

    public comments on the study of SVCs required by Section 719(d) of the

    Dodd-Frank Act. Accordingly, the Commissions are reopening the public

    comment period for 30 days. The Commissions are reopening the comment

    period for the limited purpose of soliciting additional or updated

    comments regarding the impact of the final rules further defining the

    terms ``swap'' and ``security-based swap'' on the SVC study.\8\ The

    Commissions have received and reviewed the comments previously

    submitted in response to the initial request for comment. Commenters do

    not need to resubmit comments that have already been provided.

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    \7\ The Commission and the CFTC have approved the final rules

    further defining the terms ``swap'' and ``security-based swap'' but

    did not address therein whether SVCs are swaps or SBSs. See 77 FR

    48208 (Aug. 13, 2012).

    \8\ Question 4 in the request for comment related to the

    applicability and usefulness of the proposed rules further defining

    the terms ``swap'' and ``security-based swap'' (``Proposed

    Definitions''):

    Are the proposed rules and the interpretive guidance set forth

    in the [Proposed Definitions] useful, appropriate, and sufficient

    for persons to consider when evaluating whether SVCs fall within the

    definition of a swap? If not, why not? Would SVCs satisfy the test

    for insurance provided in the [Proposed Definitions]? Why or why

    not? Is additional guidance necessary with regard to SVCs in this

    context? If so, what further guidance would be appropriate? Please

    explain.

    See Acceptance of Public Submissions Regarding the Study of

    Stable Value Contracts, supra note 5, at 53163.

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    By the Commodity Futures Trading Commission.

    Dated: September 26, 2012.

    Sauntia S. Warfield,

    Assistant Secretary.

    By the Securities and Exchange Commission.

    Dated: September 26, 2012.

    Elizabeth M. Murphy,

    Secretary.

    [FR Doc. 2012-24179 Filed 10-1-12; 8:45 am]

    BILLING CODE 6351-01-P; 8011-P

    Last Updated: October 2, 2012



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