Federal Register, Volume 77 Issue 191 (Tuesday, October 2, 2012)[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]

[Notices]

[Pages 60113-60114]

From the Federal Register Online via the Government Printing 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

Last Updated: October 2, 2012