Federal Register, Volume 79 Issue 135 (Tuesday, July 15, 2014)

[Federal Register Volume 79, Number 135 (Tuesday, July 15, 2014)]

[Rules and Regulations]

[Page 41126]

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

[FR Doc No: 2014-16583]




17 CFR Part 23

RIN 3038-AC96

Swap Dealer and Major Swap Participant Recordkeeping, Reporting,

and Duties Rules; Futures Commission Merchant and Introducing Broker

Conflicts of Interest Rules; and Chief Compliance Officer Rules for

Swap Dealers, Major Swap Participants, and Futures Commission

Merchants; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Correcting amendments.


SUMMARY: This document contains corrections to final regulations, which

were published in the Federal Register of Tuesday, April 3, 2012. The

regulations are related to the risk management programs of swap dealers

and major swap participants.

DATES: Effective July 15, 2014.

FOR FURTHER INFORMATION CONTACT: Frank Fisanich, Chief Counsel, 202-

418-5949, [email protected], or Gregory Scopino, Special Counsel, 202-

418-5175, [email protected], Division of Swap Dealer and Intermediary

Oversight, Commodity Futures Trading Commission, Three Lafayette

Centre, 1155 21st Street NW., Washington, DC 20581.



The final regulations that are the subject of these corrections

imposed certain requirements on swap dealers and major swap

participants regarding risk management programs. The final regulations

were promulgated pursuant to sections 4s(h)(1)(D), 4s(h)(3)(D), 4s(j),

and 8a(5) of the Commodity Exchange Act, 7 U.S.C. 4s(h)(1)(D),

4s(h)(3)(D), 4s(j), and 8a(5).

Need for Correction

As published, the final regulations contain errors which may prove

to be misleading and need to be clarified.

List of Subjects in 17 CFR Part 23

Antitrust, Commodity futures, Conduct standards, Conflict of

interests, Major swap participants, Reporting and recordkeeping, Swap

dealers, Swaps.

Accordingly, 17 CFR part 23 is corrected by making the following

correcting amendment:



1. The authority citation for part 23 continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6b-1, 6c, 6p, 6r, 6s, 6t,

9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21.


2. In Sec. 23.600, revise paragraph (e)(2) to read as follows:

Sec. 23.600 Risk Management Program for swap dealers and major swap


* * * * *

(e) * * *

(2) The annual reviews of the Risk Management Program shall include

an analysis of adherence to, and the effectiveness of, the risk

management policies and procedures, and any recommendations for

modifications to the Risk Management Program. The annual testing shall

be performed by qualified internal audit staff that are independent of

the business trading unit being audited or by a qualified third party

audit service reporting to staff that are independent of the business

trading unit. The results of the annual review of the Risk Management

Program shall be promptly reported to, and reviewed by, the chief

compliance officer, senior management, and governing body of the swap

dealer or major swap participant.

* * * * *

Issued in Washington, DC, on July 10, 2014, by the Commission.

Christopher J. Kirkpatrick,

Acting Secretary of the Commission.

[FR Doc. 2014-16583 Filed 7-14-14; 8:45 am]



Last Updated: July 15, 2014