80 FR 31326 - Trade Options

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 80, Issue 105 (June 2, 2015)

Page Range		31326-31327
FR Document		2015-13347

On May 7, 2015, the Commodity Futures Trading Commission (``Commission'' or ``CFTC'') published in the Federal Register a notice of proposed rulemaking (the ``Trade Options Proposal'') to amend the limited trade option exemption in part 32 of its regulations. The Commission is extending the comment period for the Trade Options Proposal in light of the Commission's recent interpretation concerning forward contracts with embedded volumetric optionality.

Federal Register, Volume 80 Issue 105 (Tuesday, June 2, 2015)

[Federal Register Volume 80, Number 105 (Tuesday, June 2, 2015)]
[Proposed Rules]
[Pages 31326-31327]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2015-13347]


=======================================================================
-----------------------------------------------------------------------

COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 32

RIN 3038-AE26


Trade Options

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of proposed rulemaking; extension of comment period.

-----------------------------------------------------------------------

SUMMARY: On May 7, 2015, the Commodity Futures Trading Commission 
(``Commission'' or ``CFTC'') published in the Federal Register a notice 
of proposed rulemaking (the ``Trade Options

[[Page 31327]]

Proposal'') to amend the limited trade option exemption in part 32 of 
its regulations. The Commission is extending the comment period for the 
Trade Options Proposal in light of the Commission's recent 
interpretation concerning forward contracts with embedded volumetric 
optionality.

DATES: The comment period for the Trade Options Proposal published on 
May 7, 2015, at 80 FR 26200, is extended until June 22, 2015.

ADDRESSES: You may submit comments, identified by RIN 3038-AE26, by any 
one of the following methods:
     CFTC Web site: http://comments.cftc.gov. Follow the 
instructions for submitting comments through the Comments Online 
process on the Web site.
     Mail: Send to Christopher Kirkpatrick, Secretary of the 
Commission, 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 of these methods.
    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 Commission to consider information 
that may be 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 Sec.  145.9 
of the CFTC's regulations, 17 CFR 145.9.
    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse, or remove any or all of a 
submission from www.cftc.gov that it may deem to be inappropriate for 
publication, such as 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 the Administrative Procedure Act and other 
applicable laws, and may be accessible under the Freedom of Information 
Act.

FOR FURTHER INFORMATION CONTACT: David N. Pepper, Special Counsel, 
Division of Market Oversight, at (202) 418-5565 or [email protected]; or 
Elise Pallais, Counsel, Office of the General Counsel, at (202) 418-
5577 or [email protected]; Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: On May 7, 2015, the Commission published a 
proposal to amend the trade option exemption in part 32 of its 
regulations in the following subject areas: (1) Reporting requirements 
for trade option counterparties that are not swap dealers or major swap 
participants; (2) recordkeeping requirements for trade option 
counterparties that are not swap dealers or major swap participants; 
and (3) certain non-substantive amendments.\1\ Generally, these 
proposed amendments are intended to facilitate use of trade options by 
commercial market participants to hedge against commercial and physical 
risks.
---------------------------------------------------------------------------

    \1\ Trade Options, Notice of Proposed Rulemaking, 80 FR 26200 
(May 7, 2015).
---------------------------------------------------------------------------

    On May 18, 2015, the Commission published its final interpretation 
regarding forward contracts with embedded volumetric optionality.\2\ 
The interpretation identifies when an agreement, contract, or 
transaction would fall within the forward contract exclusions from the 
``swap'' and ``future delivery'' definitions in the Commodity Exchange 
Act (``CEA''), notwithstanding that it allows for variations in the 
delivery amount (i.e., contains ``embedded volumetric optionality'').
---------------------------------------------------------------------------

    \2\ Forward Contracts with Embedded Volumetric Optionality, 80 
FR 28239 (May 18, 2015). In accordance with section 712(d)(4) of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act, the 
interpretation was issued jointly with the U.S. Securities and 
Exchange Commission after consultation with the Board of Governors 
of the Federal Reserve System. Although the interpretation was 
issued jointly, it is an interpretation solely of the CFTC and does 
not apply to the exclusion from the swap and security-based swap 
definitions for security forwards or to the distinction between 
security forwards and security futures products.
---------------------------------------------------------------------------

    In light of the recent publication of the Commission's 
interpretation on forward contracts with embedded volumetric 
optionality, the Commission is extending the comment period for the 
Trade Options Proposal until June 22, 2015.

    Issued in Washington, DC, on May 28, 2015, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Trade Options Extension of Comment Period--Commission 
Voting Summary

    On this matter, Chairman Massad and Commissioners Wetjen, Bowen, 
and Giancarlo voted in the affirmative. No Commissioner voted in the 
negative.

[FR Doc. 2015-13347 Filed 6-1-15; 8:45 am]
 BILLING CODE 6351-01-P

31326 Federal Register / Vol. 80, No. 105 / Tuesday, June 2, 2015 / Proposed Rules

Authority for This Rulemaking Authority: 49 U.S.C. 106(g), 40113, 44701. (h) Alternative Methods of Compliance
(AMOCs)
Title 49 of the United States Code § 39.13 [Amended]
specifies the FAA’s authority to issue The Manager, Engine Certification Office,
■ 2. The FAA amends § 39.13 by FAA, may approve AMOCs to this AD. Use
rules on aviation safety. Subtitle I, removing Airworthiness Directive (AD) the procedures found in 14 CFR 39.19 to
Section 106, describes the authority of 2014–14–02, Amendment 39–17896 (79 make your request. You may email your
the FAA Administrator. Subtitle VII, FR 39958, July 11, 2014), and adding the request to: ANE-AD-AMOC@faa.gov.
Aviation Programs, describes in more following new AD: (i) Related Information
detail the scope of the Agency’s
Pratt & Whitney Canada Corp.: Docket No. (1) For more information about this AD,
authority. FAA–2013–1059; Directorate Identifier
We are issuing this rulemaking under contact Barbara Caufield, Aerospace
2013–NE–36–AD. Engineer, Engine Certification Office, FAA,
the authority described in Subtitle VII,
(a) Comments Due Date Engine & Propeller Directorate, 12 New
Part A, Subpart III, Section 44701, England Executive Park, Burlington, MA
‘‘General requirements.’’ Under that The FAA must receive comments on this 01803; phone: 781–238–7146; fax: 781–238–
section, Congress charges the FAA with AD action by August 3, 2015. 7199; email: barbara.caufield@faa.gov.
promoting safe flight of civil aircraft in (b) Affected ADs (2) Refer to MCAI Transport Canada AD
air commerce by prescribing regulations This AD replaces AD 2014–14–02,
CF–2014–41, dated November 26, 2014, for
for practices, methods, and procedures related information. You may examine the
Amendment 39–17896 (79 FR 39958, July 11, MCAI in the AD docket on the Internet at
the Administrator finds necessary for 2014).
safety in air commerce. This regulation http://www.regulations.gov by searching for
(c) Applicability and locating it in Docket No. FAA–2013–
is within the scope of that authority 1059.
because it addresses an unsafe condition This AD applies to Pratt & Whitney Canada
(3) P&WC SB No. PW100–72–21861, dated
that is likely to exist or develop on Corp. (P&WC) PW120, PW121, and PW121A
November 21, 2014; P&WC SB No. PW100–
turboprop engines with post SB 21610
products identified in this rulemaking 72–21803, Revision No. 5, dated November
configuration; PW124B, PW127, PW127E,
action. and PW127F turboprop engines with post SB
21, 2014; P&WC SB No. PW100–72–21860,
Revision No. 2, dated November 21, 2014;
Regulatory Findings 21607 configuration; PW127E and PW127F
and P&WC SB No. PW100–72–21841,
turboprop engines with serial numbers (S/Ns)
We have determined that this Revision No. 3 dated December 22, 2014, can
PCE–EB0366 and earlier; PW127G turboprop
proposed AD would not have federalism be obtained from Pratt & Whitney Canada,
engines with S/Ns PCE–AX0275 and earlier;
using the contact information in paragraph
implications under Executive Order and PW127M turboprop engines with S/Ns
(i)(4) of this AD.
13132. This proposed AD would not PCE–ED0810 and earlier.
(4) For service information identified in
have a substantial direct effect on the (d) Unsafe Condition this AD, contact Pratt & Whitney Canada
States, on the relationship between the This AD was prompted by reports of fuel Corp., 1000 Marie-Victorin Blvd., Longueuil,
national Government and the States, or seepage past the metal-to-metal sealing Quebec, Canada, J4G 1A1; phone: 800–268–
on the distribution of power and surfaces of the fuel nozzle and fuel manifold 8000; fax: 450–647–2888; Web site:
responsibilities among the various flow adapter. We are issuing this AD to www.pwc.ca.
levels of government. prevent in-flight fuel leakage, engine fire, (5) You may view this service information
damage to the engine, and damage to the at the FAA, Engine & Propeller Directorate,
For the reasons discussed above, I
airplane. 12 New England Executive Park, Burlington,
certify that the proposed regulation: MA. For information on the availability of
(1) Is not a ‘‘significant regulatory (e) Compliance this material at the FAA, call 781–238–7125.
action’’ under Executive Order 12866, Comply with this AD within the
(2) Is not a ‘‘significant rule’’ under Issued in Burlington, Massachusetts, on
compliance times specified, unless already May 19, 2015.
the DOT Regulatory Policies and done. Within 1,500 flight hours after the
Procedures (44 FR 11034, February 26, Carlos A. Pestana,
effective date of this AD, or at the next engine
1979), shop visit, whichever occurs first: Acting Directorate Manager, Engine &
(3) Will not affect intrastate aviation (1) Remove the O-ring seal from the fuel Propeller Directorate, Aircraft Certification
Service.
in Alaska to the extent that it justifies manifold fitting,
making a regulatory distinction, and (2) Remove fuel manifold flow adapter, [FR Doc. 2015–12768 Filed 6–1–15; 8:45 am]
(4) Will not have a significant part number (P/Ns) 3059754–01, 3059757– BILLING CODE 4910–13–P
economic impact, positive or negative, 01, and 3059760–01; and
(3) Install a fuel nozzle gasket and fuel
on a substantial number of small entities
manifold flow adapter that are eligible for
under the criteria of the Regulatory installation in accordance with paragraphs
COMMODITY FUTURES TRADING
Flexibility Act. 3.A, 3.B, and 3.C of P&WC SB No. PW100– COMMISSION
List of Subjects in 14 CFR Part 39 72–21861, dated November 21, 2014.
17 CFR Part 32
Air transportation, Aircraft, Aviation (f) Installation Prohibition
RIN 3038–AE26
safety, Incorporation by reference, After the effective date of this AD, fuel
Safety. manifold adapter, P/Ns 3059754–01, Trade Options
3059757–01, and 3059760–01, and fuel
The Proposed Amendment manifold gasket, P/N 3079354–01, are not AGENCY: Commodity Futures Trading
Accordingly, under the authority eligible for installation in any engine. Commission.
delegated to me by the Administrator, (g) Definition ACTION: Notice of proposed rulemaking;
tkelley on DSK3SPTVN1PROD with PROPOSALS

the FAA proposes to amend 14 CFR part For the purpose of this AD, an engine shop extension of comment period.
39 as follows: visit is the induction of an engine into the
SUMMARY: On May 7, 2015, the
shop for maintenance involving the
PART 39—AIRWORTHINESS separation of pairs of major mating engine Commodity Futures Trading
DIRECTIVES flanges. The separation of engine flanges Commission (‘‘Commission’’ or
solely for the purpose of transportation ‘‘CFTC’’) published in the Federal
■ 1. The authority citation for part 39 without subsequent engine maintenance does Register a notice of proposed
continues to read as follows: not constitute an engine shop visit. rulemaking (the ‘‘Trade Options

VerDate Sep<11>2014 16:57 Jun 01, 2015 Jkt 235001 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\02JNP1.SGM 02JNP1

Federal Register / Vol. 80, No. 105 / Tuesday, June 2, 2015 / Proposed Rules 31327

Proposal’’) to amend the limited trade cftc.gov; Commodity Futures Trading Giancarlo voted in the affirmative. No
option exemption in part 32 of its Commission, Three Lafayette Centre, Commissioner voted in the negative.
regulations. The Commission is 1155 21st Street NW., Washington, DC [FR Doc. 2015–13347 Filed 6–1–15; 8:45 am]
extending the comment period for the 20581. BILLING CODE 6351–01–P
Trade Options Proposal in light of the SUPPLEMENTARY INFORMATION: On May 7,
Commission’s recent interpretation 2015, the Commission published a
concerning forward contracts with proposal to amend the trade option DEPARTMENT OF TRANSPORTATION
embedded volumetric optionality. exemption in part 32 of its regulations
DATES: The comment period for the in the following subject areas: (1) Federal Highway Administration
Trade Options Proposal published on Reporting requirements for trade option
May 7, 2015, at 80 FR 26200, is counterparties that are not swap dealers 23 CFR Part 625
extended until June 22, 2015. or major swap participants; (2)
recordkeeping requirements for trade [Docket No. FHWA–2015–0003]
ADDRESSES: You may submit comments,
identified by RIN 3038–AE26, by any option counterparties that are not swap [RIN 2125–AF67]
one of the following methods: dealers or major swap participants; and
• CFTC Web site: http:// (3) certain non-substantive Design Standards for Highways
comments.cftc.gov. Follow the amendments.1 Generally, these
proposed amendments are intended to AGENCY: Federal Highway
instructions for submitting comments Administration (FHWA), Department of
through the Comments Online process facilitate use of trade options by
commercial market participants to Transportation (DOT).
on the Web site.
• Mail: Send to Christopher hedge against commercial and physical ACTION: Notice of proposed rulemaking
Kirkpatrick, Secretary of the risks. (NRPM); request for comments.
Commission, Commodity Futures On May 18, 2015, the Commission
published its final interpretation SUMMARY: The FHWA requests
Trading Commission, Three Lafayette comments on a proposed revision to
Centre, 1155 21st Street NW., regarding forward contracts with
embedded volumetric optionality.2 The design standards and standard
Washington, DC 20581. specifications that applies to new
• Hand Delivery/Courier: Same as interpretation identifies when an
agreement, contract, or transaction construction, reconstruction, resurfacing
Mail, above. (except for maintenance resurfacing),
• Federal eRulemaking Portal: http:// would fall within the forward contract
exclusions from the ‘‘swap’’ and ‘‘future restoration, and rehabilitation projects
www.regulations.gov. Follow the on the National Highway System (NHS).
instructions for submitting comments. delivery’’ definitions in the Commodity
Exchange Act (‘‘CEA’’), notwithstanding The proposed rule would incorporate by
Please submit your comments using
that it allows for variations in the reference the latest versions of design
only one of these methods.
delivery amount (i.e., contains standards and standard specifications
All comments must be submitted in
‘‘embedded volumetric optionality’’). previously adopted and incorporated by
English, or if not, accompanied by an
In light of the recent publication of reference under 23 CFR part 625, and
English translation. Comments will be
the Commission’s interpretation on would remove the corresponding
posted as received to www.cftc.gov. You
forward contracts with embedded outdated or superseded versions of
should submit only information that
volumetric optionality, the Commission these standards and specifications. The
you wish to make available publicly. If
is extending the comment period for the proposed rule also would make
you wish the Commission to consider
Trade Options Proposal until June 22, technical changes to the regulatory text
information that may be exempt from
2015. consistent with updated Federal
disclosure under the Freedom of
Issued in Washington, DC, on May 28, Register procedures.
Information Act, a petition for
confidential treatment of the exempt 2015, by the Commission. DATES: Comments must be received on
information may be submitted according Christopher J. Kirkpatrick, or before July 2, 2015. Late comments
to the procedures established in § 145.9 Secretary of the Commission. will be considered to the extent
of the CFTC’s regulations, 17 CFR 145.9. practicable.
Note: The following appendix will not
The Commission reserves the right, appear in the Code of Federal Regulations. ADDRESSES: You may submit comments
but shall have no obligation, to review, identified by the docket number
pre-screen, filter, redact, refuse, or Appendix to Trade Options Extension FHWA–2015–0003 by any one of the
remove any or all of a submission from of Comment Period—Commission following methods:
www.cftc.gov that it may deem to be Voting Summary Fax: 1–202–493–2251;
inappropriate for publication, such as Mail: U.S. Department of
On this matter, Chairman Massad and
obscene language. All submissions that Commissioners Wetjen, Bowen, and Transportation, Docket Operations, M–
have been redacted or removed that 30, West Building Ground Floor, Room
contain comments on the merits of the 1 Trade Options, Notice of Proposed Rulemaking, W12–140, 1200 New Jersey Avenue SE.,
rulemaking will be retained in the 80 FR 26200 (May 7, 2015). Washington, DC 20590;
public comment file and will be 2 Forward Contracts with Embedded Volumetric
Hand Delivery: U.S. Department of
considered as required under the Optionality, 80 FR 28239 (May 18, 2015). In
accordance with section 712(d)(4) of the Dodd- Transportation, Docket Operations,
Administrative Procedure Act and other Frank Wall Street Reform and Consumer Protection West Building Ground Floor, Room
applicable laws, and may be accessible
tkelley on DSK3SPTVN1PROD with PROPOSALS

Act, the interpretation was issued jointly with the W12–140, 1200 New Jersey Avenue SE.,
under the Freedom of Information Act. U.S. Securities and Exchange Commission after Washington, DC 20590, between 9 a.m.
consultation with the Board of Governors of the
FOR FURTHER INFORMATION CONTACT: Federal Reserve System. Although the and 5 p.m., Monday through Friday,
David N. Pepper, Special Counsel, interpretation was issued jointly, it is an except Federal holidays; or
Division of Market Oversight, at (202) interpretation solely of the CFTC and does not Electronically through the Federal
apply to the exclusion from the swap and security-
418–5565 or dpepper@cftc.gov; or Elise based swap definitions for security forwards or to
eRulemaking Portal: http://
Pallais, Counsel, Office of the General the distinction between security forwards and www.regulations.gov. Follow the online
Counsel, at (202) 418–5577 or epallais@ security futures products. instructions for submitting comments.

VerDate Sep<11>2014 16:57 Jun 01, 2015 Jkt 235001 PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 E:\FR\FM\02JNP1.SGM 02JNP1

Document Created: 2015-12-15 15:12:14
Document Modified: 2015-12-15 15:12:14

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Proposed Rules
Action		Notice of proposed rulemaking; extension of comment period.
Dates		The comment period for the Trade Options Proposal published on May 7, 2015, at 80 FR 26200, is extended until June 22, 2015.
Contact		David N. Pepper, Special Counsel, Division of Market Oversight, at (202) 418-5565 or [email protected]; or Elise Pallais, Counsel, Office of the General Counsel, at (202) 418- 5577 or [email protected]; Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.
FR Citation		80 FR 31326
RIN Number		3038-AE26