[Federal Register Volume 79, Number 135 (Tuesday, July 15, 2014)]
[Rules and Regulations]
[Page 41126]
From the Federal Register Online via the Government Publishing 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, ffisanich@cftc.gov, or Gregory Scopino, Special Counsel, 202-
418-5175, gscopino@cftc.gov, 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]