2017-25627

Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)

[Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]

[Rules and Regulations]

[Pages 56169-56170]

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

[FR Doc No: 2017-25627]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 23

RIN 3038-AC97

Margin Requirements for Uncleared Swaps for Swap Dealers and

Major Swap Participants; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Correcting amendments.

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SUMMARY: The Commodity Futures Trading Commission (CFTC or Commission)

is correcting a final rule published in the Federal Register on January

6, 2016. The rule, concerning margin requirements for uncleared swaps

for swap dealers and major swap participants, took effect on April 1,

2016. This correction rectifies errors in cross-references in a

particular section of the final rule.

DATES: Effective on November 28, 2017.

FOR FURTHER INFORMATION CONTACT: Thomas Smith, Deputy Director, 202-

418-5495, tsm[email protected], or Mark Bretscher, Attorney-Advisor, 312-

596-0529, [email protected], Division of Swap Dealer and Intermediary

Oversight, Commodity Futures Trading Commission, Three Lafayette

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

SUPPLEMENTARY INFORMATION: In the Federal Register of January 6, 2016

(81 FR 636), the CFTC published final rules adopting new regulations to

implement a particular provision of the Commodity Exchange Act (CEA),

as added by the Dodd-Frank Wall Street Reform and Consumer Protection

Act (Dodd-Frank Act).\1\ This provision requires the Commission to

adopt initial and variation margin requirements for certain swap

dealers and major swap participants. In implementing the regulations,

staff has discovered cross-reference errors in Sec. 23.156 of the

regulations. As published, 17 CFR 23.156(a)(3) includes erroneous

cross-references to 17 CFR 23.156(a)(1)(iv). Instead, the cross-

references should be to 17 CFR 23.156(a)(1)(v). Accordingly, the

Commission is making a correcting amendment to 17 CFR 23.156(a)(3) that

removes the erroneous cross-references to 17 CFR 23.156(a)(1)(iv) and

replaces them with corrected cross-references to 17 CFR

23.156(a)(1)(v).

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\1\ See Dodd-Frank Wall Street Reform and Consumer Protection

Act, Public Law 111-203, 124 Stat. 1376 (2010).

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List of Subjects in 17 CFR Part 23

Swaps, Swap dealers, Major swap participants, Capital and margin

requirements.

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

correcting amendments:

PART 23--SWAP DEALERS AND MAJOR SWAP PARTICIPANTS

0

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.

0

2. In Sec. 23.156, revise paragraph (a)(3)(i)(B) to read as follows:

Sec. 23.156 Forms of margin.

(a) * * *

(3) * * *

(i) * * *

(B) The discounts set forth in the following table:

Standardized Haircut Schedule

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Cash in same currency as swap obligation................ 0.0

Eligible government and related debt (e.g., central 0.5

bank, multilateral development bank, GSE securities

identified in paragraph (a)(1)(v) of this section):

Residual maturity less than one-year...................

Eligible government and related debt (e.g., central 2.0

bank, multilateral development bank, GSE securities

identified in paragraph (a)(1)(v) of this section):

Residual maturity between one and five years...........

Eligible government and related debt (e.g., central 4.0

bank, multilateral development bank, GSE securities

identified in paragraph (a)(1)(v) of this section):

Residual maturity greater than five years..............

Eligible corporate debt (including eligible GSE debt 1.0

securities not identified in paragraph (a)(1)(v) of

this section): Residual maturity less than one-year....

Eligible corporate debt (including eligible GSE debt 4.0

securities not identified in paragraph (a)(1)(v) of

this section): Residual maturity between one and five

years..................................................

Eligible corporate debt (including eligible GSE debt 8.0

securities not identified in paragraph (a)(1)(v) of

this section): Residual maturity greater than five

years..................................................

Equities included in S&P 500 or related index........... 15.0

Equities included in S&P 1500 Composite or related index 25.0

but not S&P 500 or related index.......................

Gold.................................................... 15.0

Additional (additive) haircut on asset in which the 8.0

currency of the swap obligation differs from that of

the collateral asset...................................

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[[Page 56170]]

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Issued in Washington, DC, on November 21, 2017, by the

Commission.

Christopher J. Kirkpatrick,

Secretary of the Commission.

Note: The following appendix will not appear in the Code of

Federal Regulations.

Appendix to Margin Requirements for Uncleared Swaps for Swap Dealers

and Major Swap Participants; Correction--Commission Voting Summary

On this matter, Chairman Giancarlo and Commissioners Quintenz

and Behnam voted in the affirmative. No Commissioner voted in the

negative.

[FR Doc. 2017-25627 Filed 11-27-17; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: November 28, 2017