Enhancing Protection Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations
October 30, 2013
Amendments to the Rule Text:
Strike §1.22(c)(5):
(5) Residual Interest Deadline Defined.
(i) Except as provided paragraph (c)(5)(ii) of this section, the Residual Interest Deadline shall be the time of the settlement referenced in paragraph (c)(2)(i) or, as appropriate, (c)(4), of this section.
(ii) Starting on [12 months following the date of publication of this rule in the Federal Register, during the phase-in period described in paragraph (c)(5)(iii) of this section, the Residual Interest Deadline shall be 6:00 PM Eastern Time on the date of the settlement referenced in paragraph (c)(2)(i) or, as appropriate, (c)(4), of this section.
(iii)(A) No later than [30 months following the date of publication of this rule in the Federal Register], the staff of the Commission shall complete and publish for public comment a report addressing, to the extent information is practically available, the practicability (for both futures commission merchants and customers) of moving that deadline from 6:00 PM Eastern Time on the date of the settlement referenced in paragraph (c)(2)(i) or, as appropriate, (c)(4), of this section to the time of that settlement (or to some other time of day), including whether and on what schedule it would be feasible to do so, and the costs and benefits of such potential requirements. Staff shall, using the Commission’s website, solicit public comment and shall conduct a public roundtable regarding specific issues to be covered by such report.
(B) Nine months after publication of the report required by paragraph (c)(5)(iii)(A) of this section, the Commission may (but shall not be required to) do either or both of the following:
(1) change the phase-in period by order published in the Federal Register to terminate as of the date set forth in that order, which date shall be no less than one year after the date such order is published; or
(2) Determine that it is necessary or appropriate in the public interest to propose through rulemaking a different Residual Interest Deadline.
(C) If the phase-in schedule has not been amended pursuant to paragraph (c)(5)(iii)(B)(1) of this section, then the phase-in period shall end on December 31, 2018.
11. Revise § 1.23 to read as follows:
(5) Residual Interest Deadline Defined.
(i) Commencing October 30, 2015, the Residual Interest Deadline shall be 6 PM Eastern Standard Time on the day of settlement referenced in paragraph (c)(2)(i) or, as appropriate, (c)(4), of this section.
(ii) No later than [30 months following the date of publication of this rule in the Federal Register], the Commission shall complete and publish for public comment a report addressing the practicability (for both futures commission merchants and customers) of changing the deadline to some other time of day. The report shall consider whether and on what schedule it would be feasible to change the deadline and the costs as compared to benefits of such potential changes (including both qualitative and quantitative analysis).
(iii) Based on the findings of the report, the Commission may determine by rule whether any adjustments to the Residual Interest Deadline are necessary and appropriate.
Last Updated: October 30, 2013