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]




17 CFR Part 140

RIN 3038-AE04

Delegation of Authority To Disclose Confidential Information to a

Contract Market, Registered Futures Association or Self-Regulatory


AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.


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]


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\


\1\ 7 U.S.C. 1a(40).


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.


\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).


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.


\4\ 17 CFR 140.72.


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\


\5\ 5 U.S.C. 553(b).

\6\ See 5 U.S.C. 553(d).


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



\7\ See 5 U.S.C. 601 et seq.

\8\ 5 U.S.C. 601(2).


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.


\9\ See 44 U.S.C. 3501 et seq.


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




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]


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]


Last Updated: April 11, 2013