2012-16983
Federal Register, Volume 77 Issue 134 (Thursday, July 12, 2012)[Federal Register Volume 77, Number 134 (Thursday, July 12, 2012)]
[Proposed Rules]
[Pages 41109-41110]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-16983]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 23
Margin Requirements for Uncleared Swaps for Swap Dealers and
Major Swap Participants
AGENCY: Commodity Futures Trading Commission.
ACTION: Extension of comment period.
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SUMMARY: On April 28, 2011, the Commodity Futures Trading Commission
(``Commission'' or ``CFTC'') published in the Federal Register a notice
of proposed rulemaking that would establish initial and variation
margin requirements on uncleared swaps for swap dealers (``SDs'') and
major swap participants (``MSPs'').\1\ In October 2011, the Basel
Commission on Banking Supervision (``BCBS'') and the International
Organization of Securities Commissions (``IOSCO'') established a
Working Group on Margin Requirements (``WGMR'') to develop harmonized
international standards for uncleared swaps. BCBS and IOSCO recently
published a consultative paper prepared by the WGMR that outlines
possible margin requirements for non-centrally cleared derivatives
(``consultative paper'').\2\ The Commission is extending the comment
period for its proposed margin rules for uncleared swaps for swap
dealers and major swap participants in order to give interested parties
the opportunity to comment on the consultative paper and the CFTC's
proposed rules concurrently.
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\1\ See 76 FR 23732.
\2\ The WGMR is comprised of representatives from over 25
domestic and international regulatory authorities, including the
CFTC.
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DATES: Comments must be submitted on or before September 14, 2012.
ADDRESSES: You may submit comments, identified by RIN 3038-AC97, and
Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap
Participants by any of the following methods:
The Agency's Web site, at http://comments.cftc.gov/.
Follow the instructions for submitting comments through the web site.
Mail: David A. Stawick, Secretary of the Commission,
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.
Please submit your comments using only one method.
[[Page 41110]]
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. If you wish the Commission 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 Sec. 145.9
of the Commission's regulations.\3\ The Commission reserves the right,
but shall have no obligation, to review, pre-screen, filter, redact,
refuse or remove any or all of your submission from http://www.cftc.gov
that it may deem to be inappropriate for publication, such as 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 the
Administrative Procedure Act and other applicable laws, and may be
accessible under the Freedom of Information Act.
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\3\ See 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: John C. Lawton, Deputy Director,
[email protected], Division of Clearing and Risk, or Jason A. Shafer,
Attorney Advisor, Division of Swap Dealer and Intermediary Oversight,
[email protected], Commodity Futures Trading Commission, Three Lafayette
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Centre, 1155 21st Street NW., Washington, DC 20581.
SUPPLEMENTARY INFORMATION: On April 28, 2011, the Commission published
in the Federal Register a notice of proposed rulemaking that would
establish initial and variation margin requirements on uncleared swaps
for SDs and MSPs.\4\ In October 2011, BCBS and IOSCO established the
WGMR to develop harmonized international standards for uncleared swaps.
BCBS and IOSCO recently published a consultative paper prepared by the
WGMR that outlines possible margin requirements for non-centrally
cleared derivatives.\5\ The consultative paper addresses a number of
topics, including: (i) The instruments that would be subject to margin
requirements; (ii) the market participants to be subject to margin
requirements; (iii) initial margin and variation margin methodology;
(iv) eligible collateral; (v) treatment of provided margin; (vi)
treatment of inter-affiliate transactions; and vii) treatment of cross-
border transactions.\6\
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\4\ See 76 FR 23732.
\5\ The WGMR is comprised of representatives from over 25
domestic and international regulatory authorities, including the
CFTC.
\6\ The consultative paper is available on the Bank for
International Settlements (``BIS'') Web site (www.bis.org), the
IOSCO Web site (www.iosco.org) and the CFTC Web site (www.cftc.gov).
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BCBS and IOSCO are requesting comment on the initial proposals set
forth in the consultative paper. After reviewing and evaluating any
comments received, the WGMR will issue final policy recommendations for
margin requirements for non-centrally cleared derivatives.\7\ As part
of the international effort to implement consistent global standards
for margin requirements for non-centrally cleared derivatives, the CFTC
will consider the final policy recommendations set forth by the WGMR
when adopting its final rules for margin for uncleared swaps and may
adapt its final rules to conform with the final policy recommendations
set forth by BCBS and IOSCO. Accordingly, the Commission believes it is
appropriate to extend the comment period for its proposed margin
requirements in order to give interested parties the opportunity to
comment on the consultative paper and the CFTC's proposed rule
concurrently.
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\7\ Concurrently with the comment period for the consultative
paper, BCBS and IOSCO also will conduct a quantitative impact study
(``QIS'') to assess the costs and benefits of margin requirements.
The results of the QIS will be considered along with the comments
submitted on the consultative paper in formulating a final joint
proposal on non-centrally cleared derivatives.
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Therefore, the Commission is extending the comment period until
September 14, 2012, for all aspects of its proposed margin rules on
uncleared swaps and specifically requests quantitative data and
analysis on the comparative costs and benefits of the CFTC's proposed
rule and the initial proposals set forth in the consultative paper.
Issued by the Commission, this 5th day of July 2012.
David Stawick,
Secretary of the Commission, Commodity Futures Trading Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations
Appendix 1--Statement of Chairman Gary Gensler
I support the formal reopening of the comment period on the
CFTC's initial margin proposal so that we can hear further from
market participants in light of work being done to internationally
harmonize an approach to margin.
The CFTC has been working with the Federal Reserve, the other
U.S. banking regulators, the Securities and Exchange Commission and
international regulators and policymakers to align margin
requirements for uncleared swaps. I think it is essential that we
align these requirements globally, particularly between the major
market jurisdictions. The international approach to margin
requirements in the consultative paper (sponsored by the Basel
Committee on Banking Supervision and the International Organization
of Securities Commissions) released today is consistent with the
approach the CFTC laid out in its margin proposal last year. It
would lower the risk of financial entities, promote clearing and
help avoid regulatory arbitrage.
[FR Doc. 2012-16983 Filed 7-11-12; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: July 12, 2012