[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]
[Notices]
[Pages 60113-60114]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24179]
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COMMODITY FUTURES TRADING COMMISSION
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-67927; File No. S7-32-11]
Acceptance of Public Submissions Regarding the Study of Stable
Value Contracts
AGENCY: Commodity Futures Trading Commission; Securities and Exchange
Commission.
ACTION: Request for comment; reopening of comment period.
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SUMMARY: The Commodity Futures Trading Commission (the ``CFTC'') and
the Securities and Exchange Commission (the ``SEC'' and, together with
the CFTC, the ``Commissions'') are reopening the comment period for a
study to determine whether stable value contracts (``SVCs'') fall
within the definition of a swap. The study is required by Section
719(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(the ``Dodd-Frank Act''). The original comment period for the study
closed on September 26, 2011. The Commissions did not complete the
study pending adoption of final rules further defining the terms
``swap'' and ``security-based swap.'' The Commissions are considering
the study in light of the recent adoption of these final rules.
Accordingly, the Commissions are reopening for 30 days the time period
in which to provide the Commissions with comments.
DATES: Comments should be received on or before November 1, 2012.
ADDRESSES: Comments may be submitted by any of the following methods:
CFTC
Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments
through the Web site.
Mail: Sauntia S. Warfield, Assistant Secretary, 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.
Follow the instructions for submitting comments.
Please submit your comments using only one method. ``Stable Value
Contract Study'' must be in the subject field of responses submitted
via email, and clearly indicated on written submissions. 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. You
should submit only information that you wish to make available
publicly. If you wish the CFTC 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 section 145.9 of
the CFTC's regulations.\1\
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\1\ 17 CFR 145.9.
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The CFTC reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse, or remove any or all of
your submission from www.cftc.gov that it may deem to be
[[Page 60114]]
inappropriate for publication, including 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 applicable laws, and may
be accessible under the Freedom of Information Act.
SEC
Electronic Comments
Use the SEC's Internet comment form (http://www.sec.gov/rules/other);
Send an email to [email protected]. Please include
File Number S7-32-11 on the subject line; or
Use the Federal eRulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number S7-32-11. This file number
should be included on the subject line if email is used. To help us
process and review your comments more efficiently, please use only one
method. The SEC will post all comments on the SEC's Internet web site
(http://www.sec.gov/rules/other). Comments will also be available for
Web site viewing and printing in the SEC's Public Reference Room, 100 F
Street NE., Washington, DC 20549, on official business days between the
hours of 10 a.m. and 3 p.m. All comments received will be posted
without change; the SEC does not edit personal identifying information
from submissions. You should submit only information that you wish to
make available publicly.
FOR FURTHER INFORMATION CONTACT: CFTC: Stephen A. Kane, Research
Economist, Office of the Chief Economist, (202) 418-5911,
[email protected]; or David E. Aron, Counsel, Office of the General
Counsel, (202) 418-6621, [email protected], Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington,
DC 20581; SEC: Donna Chambers, Senior Special Counsel, (202) 551-5870,
Division of Trading and Markets, Securities and Exchange Commission,
100 F Street NE., Washington, DC 20549-8010.
SUPPLEMENTARY INFORMATION: Pursuant to section 719(d)(1)(A) of the
Dodd-Frank Act, the Commissions jointly must conduct a study to
determine whether SVCs fall within the definition of a swap.\2\ Section
719(d)(1)(A) of the Dodd-Frank Act also requires the Commissions, in
making such determination, jointly to consult with the Department of
Labor, the Department of the Treasury, and the State entities that
regulate the issuers of SVCs.
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\2\ The term ``swap'' is defined in Commodity Exchange Act
(``CEA'') section 1a(47), 7 U.S.C. 1a(47). The term ``security-based
swap'' is defined as an agreement, contract, or transaction that is
a ``swap'' (without regard to the exclusion from that definition for
security-based swaps) and that also has certain characteristics
specified in the Dodd-Frank Act. See section 3(a)(68) of the
Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(68). Thus, a
determination regarding whether SVCs fall within the definition of a
swap also is relevant to a determination of whether SVCs fall within
the definition of the term ``security-based swap.''
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If the Commissions determine that SVCs fall within the definition
of a swap, they jointly must determine if an exemption for SVCs from
the definition of a swap is appropriate and in the public interest and
issue regulations implementing such determination.\3\ Until the
effective date of any such regulations, and notwithstanding any other
provision of Title VII of the Dodd-Frank Act, the Title VII
requirements will not apply to SVCs.\4\
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\3\ See section 719(d)(1)(B) of the Dodd-Frank Act.
\4\ See section 719(d)(1)(C) of the Dodd-Frank Act.
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On August 18, 2011, the Commissions requested comment regarding the
study of SVCs required by Section 719(d) of the Dodd-Frank Act.\5\
Specifically, the request for comment included 29 questions and
encouraged commenters to provide additional relevant information beyond
that specified in the questions. The Commissions originally requested
that comments be received by September 26, 2011.\6\
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\5\ See Acceptance of Public Submissions Regarding the Study of
Stable Value, 76 FR 53162 (Aug. 25, 2011).
\6\ Id.
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Given the regulatory developments since the initial request for
comment was issued, specifically the adoption of final rules further
defining the terms ``swap'' and ``security-based swap,'' \7\ the
Commissions believe that it would be appropriate to solicit additional
public comments on the study of SVCs required by Section 719(d) of the
Dodd-Frank Act. Accordingly, the Commissions are reopening the public
comment period for 30 days. The Commissions are reopening the comment
period for the limited purpose of soliciting additional or updated
comments regarding the impact of the final rules further defining the
terms ``swap'' and ``security-based swap'' on the SVC study.\8\ The
Commissions have received and reviewed the comments previously
submitted in response to the initial request for comment. Commenters do
not need to resubmit comments that have already been provided.
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\7\ The Commission and the CFTC have approved the final rules
further defining the terms ``swap'' and ``security-based swap'' but
did not address therein whether SVCs are swaps or SBSs. See 77 FR
48208 (Aug. 13, 2012).
\8\ Question 4 in the request for comment related to the
applicability and usefulness of the proposed rules further defining
the terms ``swap'' and ``security-based swap'' (``Proposed
Definitions''):
Are the proposed rules and the interpretive guidance set forth
in the [Proposed Definitions] useful, appropriate, and sufficient
for persons to consider when evaluating whether SVCs fall within the
definition of a swap? If not, why not? Would SVCs satisfy the test
for insurance provided in the [Proposed Definitions]? Why or why
not? Is additional guidance necessary with regard to SVCs in this
context? If so, what further guidance would be appropriate? Please
explain.
See Acceptance of Public Submissions Regarding the Study of
Stable Value Contracts, supra note 5, at 53163.
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By the Commodity Futures Trading Commission.
Dated: September 26, 2012.
Sauntia S. Warfield,
Assistant Secretary.
By the Securities and Exchange Commission.
Dated: September 26, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-24179 Filed 10-1-12; 8:45 am]
BILLING CODE 6351-01-P; 8011-P