[Federal Register Volume 78, Number 70 (Thursday, April 11, 2013)]
[Rules and Regulations]
[Pages 21522-21523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08440]



17 CFR Part 140

RIN 3038-AE04

Delegation of Authority To Disclose Confidential Information to a 
Contract Market, Registered Futures Association or Self-Regulatory 

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.


SUMMARY: The Commission is revising its regulations to add to its 
delegation of authority to staff respecting the disclosure of 
information to self-regulatory organizations newly established in the 
Wall Street Reform and Consumer Protection Act (the ``Dodd-Frank Act'') 
and not previously enumerated in the relevant regulations.

DATES: This rulemaking is effective on April 11, 2013.

FOR FURTHER INFORMATION CONTACT: Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; 
David Van Wagner, Chief Counsel, Division of Market Oversight, 
telephone (202) 418-5481 and email dvanwagner@cftc.gov; and Robert 
Wasserman, Chief Counsel, Division of Clearing and Risk, telephone 
(202) 418-5092 and email rwasserman@cftc.gov.


I. Background

    Section 8a(6) of the Commodity Exchange Act (``CEA''), 7 U.S.C. 
12a(6), authorizes the Commission to communicate to the proper 
committee of any registered entity the ``full facts concerning any 
transaction or market operation, including the names of parties 
thereto, which in the judgment of the Commission disrupts or tends to 
disrupt any market or is otherwise harmful or against the best 
interests of producers, consumers, or investors, or which is necessary 
or appropriate to effectuate the purposes of [the CEA].'' The term 
``registered entity'' has been defined to include boards of trade 
designated as contract markets, derivatives clearing organizations, 
swap execution facilities, swap data repositories, and certain 
electronic facilities on which a contract determined by the Commission 
to be a significant price discovery contract is executed or traded.\1\

    \1\ 7 U.S.C. 1a(40).

    The definition of ``registered entity'' in the CEA was amended by 
the Dodd-Frank Act, which was enacted on July 21, 2010.\2\ Two new 
categories of registered entity were established: Swap execution 
facilities (``SEFs'') and swap data repositories (``SDRs''), which have 
self-regulatory roles in the swaps markets established in the CEA and 
its implementing regulations. Additionally, the core principles for 
derivatives clearing organizations (``DCOs'') were revised to expand 
the scope of a DCO's self-regulatory responsibilities, in particular 
with respect to risk management. Commission regulations implementing 
the core principles require, for example, monitoring by the DCO of the 
large trader reports of its

[[Page 21523]]

members,\3\ which may necessitate the sharing of information by the 
Commission to a DCO on a periodic basis.

    \2\ See Dodd-Frank Wall Street Reform and Consumer Protection 
Act, Public Law 111-203, 124 Stat. 1376 (2010).
    \3\ See 17 CFR 39.13(h)(2).

    In order to mitigate market disruptions, ensure the best interests 
of market participants, and to effectuate any purpose of the CEA as 
amended, the Commission is revising regulation 140.72 to permit the 
provision of critical information to all of these registered entities. 
Presently, the delegation of authority in regulation 140.72 provides 
certain employees of the Commission with the authority to disclose 
confidential information only to any contract market, registered 
futures association, or certain self-regulatory organizations.\4\ With 
this revision of regulation 140.72, the present delegation of authority 
will be expanded to include all registered entities as defined in the 
CEA and as permitted by section 8a(6) of the CEA.

    \4\ 17 CFR 140.72.

II. Related Matters

A. Administrative Procedure Act

    The revisions to the Commission's regulations in this rulemaking do 
not establish any new substantive or legislative rules, but rather 
relate solely to rules of agency organization, practice, or procedure. 
Therefore, this rulemaking is excepted from the public notice and 
comment provisions of the Administrative Procedure Act.\5\ 
Additionally, as the revisions to the Commission's regulations in this 
rulemaking will not cause any party to undertake efforts to comply with 
the regulations as revised, the Commission has determined to make this 
rulemaking effective upon publication in the Federal Register.\6\

    \5\ 5 U.S.C. 553(b).
    \6\ See 5 U.S.C. 553(d).

B. Regulatory Flexibility Act

    The Regulatory Flexibility Act requires the Commission to consider 
whether the regulations it adopts will have a significant economic 
impact on a substantial number of small entities.\7\ The Commission is 
obligated to conduct a regulatory flexibility analysis for any rule for 
which the agency publishes a general notice of proposed rulemaking 
pursuant to section 553(b) of the Administrative Procedure Act.\8\ This 
rulemaking is excepted from the public rulemaking provisions of the 
Administrative Procedure Act. Accordingly, the Commission is not 
obligated to conduct a regulatory flexibility analysis for this 

    \7\ See 5 U.S.C. 601 et seq.
    \8\ 5 U.S.C. 601(2).

C. Paperwork Reduction Act

    The Commission may not conduct or sponsor, and a respondent is not 
required to respond to, a collection of information contained in a 
rulemaking unless the information collection displays a currently valid 
control number issued by the Office of Management and Budget (``OMB'') 
pursuant to the Paperwork Reduction Act.\9\ This rulemaking contains no 
collection of information that obligates the Commission to obtain a 
control number from OMB.

    \9\ See 44 U.S.C. 3501 et seq.

List of Subjects in 17 CFR Part 140

    Authority delegations (Government agencies), Organization and 
functions (Government agencies).

    For the reasons stated in the preamble, the Commission hereby 
amends chapter I of title 17 of the Code of Federal Regulations as 


1. The authority citation for part 140 is revised to read as follows:

    Authority: 7 U.S.C. 2(a)(12) and 12(b).

Sec.  140.72  [Amended]

2. Amend Sec.  140.72 in the section heading and paragraphs (a), (b), 
(d), and (f) by removing the words ``contract market'' wherever they 
appear and adding in their place the words ``registered entity.''

    Issued in Washington, DC, on April 5, 2013, by the Commission.
Christopher J. Kirkpatrick,
Deputy Secretary of the Commission.
[FR Doc. 2013-08440 Filed 4-10-13; 8:45 am]