81 FR 33374 - Retail Foreign Exchange Transactions
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 81, Issue 102 (May 26, 2016)
Federal Register Volume 81, Issue 102 (May 26, 2016)
| Page Range | 33374-33375 | |
| FR Document | 2016-12390 |
[Federal Register Volume 81, Number 102 (Thursday, May 26, 2016)] [Rules and Regulations] [Pages 33374-33375] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-12390] ======================================================================= ----------------------------------------------------------------------- SECURITIES AND EXCHANGE COMMISSION 17 CFR Part 240 RIN 3235-AL19 [Release No. 34-77874; File No. S7-30-11] Retail Foreign Exchange Transactions AGENCY: Securities and Exchange Commission. ACTION: Expiration of regulation. ----------------------------------------------------------------------- SUMMARY: Rule 15b12-1, by its terms, will expire and no longer be effective on July 31, 2016. Interested persons should be aware that as of that date, any broker or dealer, including a broker or dealer that is also dually registered as a futures commission merchant (``BD/ FCM''), shall be prohibited under the Commodity Exchange Act (``CEA'') from offering or entering into a transaction described in the CEA with a person who is not an eligible contract participant (``retail forex transaction''). DATES: May 26, 2016. FOR FURTHER INFORMATION CONTACT: Paula Jenson, Deputy Chief Counsel; Catherine Moore, Senior Special Counsel; or Stephen J. Benham, Special Counsel, at (202) 551-5550 or Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. SUPPLEMENTARY INFORMATION: Section 2(c)(2)(E) of the CEA, as added by the Dodd-Frank Wall Street Reform and Consumer Protection Act, provides that a person for which there is a Federal regulatory agency, including a broker-dealer registered under Section 15(b) (except pursuant to paragraph (11) thereof) or 15C of the Securities and Exchange Act of 1934 (``Exchange Act''), shall not enter into or offer to enter into a retail forex transaction, except pursuant to a rule or regulation of a Federal regulatory agency allowing the transaction under such terms and conditions as the Federal regulatory agency shall prescribe.\1\ --------------------------------------------------------------------------- \1\ 7 U.S.C. 2(c)(2)(E). --------------------------------------------------------------------------- Section 2(c)(2)(E) of the CEA took effect on July 16, 2011. As of that date, broker-dealers, including broker-dealers also registered with the Commodity Futures Trading Commission as futures commission merchants, for which the Commission is the federal regulatory agency could no longer engage in retail forex transactions except pursuant to a rule adopted by the Commission.\2\ --------------------------------------------------------------------------- \2\ See 7 U.S.C. 2(c)(2)(B)(i)(II)(cc) and 2(c)(2)(E). Congress expressly excludes from the CFTC's jurisdiction retail forex transactions where the counterparty, or the person offering to be the counterparty, is a broker or dealer registered under Section 15(b) (other than paragraph (11) thereof) or 15C of the Exchange Act. --------------------------------------------------------------------------- A retail forex transaction includes an agreement, contract, or transaction in foreign currency that is a contract of sale of a commodity for future delivery (or an option on such a contract) or an option (other than an option executed or traded on a national securities exchange registered pursuant to section 6(a) of the Exchange Act) that is offered to, or entered into with, a person that is not an eligible contract participant as defined in section 1(a)(18) of the CEA.\3\ Certain foreign exchange transactions are not ``retail forex transactions'' under the CEA, even where one of the counterparties is a person that is not an eligible contract participant. These transactions include: \4\ (i) ``spot forex transactions'' where one currency is bought for another and the two currencies are exchanged within two days; \5\ (ii) forward contracts that create an enforceable obligation to make or take delivery, provided that each counterparty has the ability to deliver and accept delivery in connection with its line of business; and (iii) options that are executed or traded on a national securities exchange registered pursuant to section 6(a) of the Exchange Act. --------------------------------------------------------------------------- \3\ 7 U.S.C. 2(c)(2)(B)(i)(I). \4\ See, generally, the discussion in Exchange Act Release No. 69964 (Jul. 11, 2013), 78 FR 42439 (Jul. 16, 2013) at 42439-40. \5\ In August 2012, the CFTC issued an interpretation in a joint rulemaking with the Commission that ``conversion trades''--trades in which a foreign exchange transaction facilitates the settlement of a foreign security transaction--are spot transactions and, therefore, are not subject to the prohibition under the CEA. See Exchange Act Release No. 67453 (Jul. 18, 2012), 77 FR 48207 (Aug. 13, 2012). --------------------------------------------------------------------------- The term ``eligible contract participant'' is defined in Section 1a(18) of the CEA and, in general terms, comprises certain enumerated regulated persons, entities that meet a specified total asset test or an alternative monetary test coupled with a nonmonetary component, certain employee benefit plans, and certain government entities and individuals that meet defined thresholds.\6\ An [[Page 33375]] individual is an eligible contract participant if the individual has aggregate amounts invested on a discretionary basis of more than $10 million or more than $5 million if such individual enters into the transaction to manage the risk associated with an asset owned or liability incurred, or reasonably likely to be owned or incurred by such individual.\7\ --------------------------------------------------------------------------- \6\ See 7 U.S.C. 1a(18). The Commission and the CFTC adopted rules under the CEA that further define ``eligible contract participant'' with respect to transactions with major swap participants, swap dealers, major security-based swap participants, security-based swap dealers, and commodity pools. See Exchange Act Release No. 66868 (Apr. 27, 2012), 77 FR 30596 (May 23, 2012). \7\ 7 U.S.C. 1a(18)(A)(xi). --------------------------------------------------------------------------- The Commission adopted Rule 15b12-1 (17 CFR 240.15b12-1) on a time- limited basis to permit a registered broker-dealer to engage in a retail forex business.\8\ The Commission is taking no further action, and pursuant to Rule 15b12-1(d), Rule 15b12-1 will expire and no longer be effective on July 31, 2016. Upon expiration of the rule on July 31, 2016, a broker-dealer registered pursuant to Section 15(b) of the Exchange Act, including an entity that is registered as both a broker- dealer and a futures commission merchant, shall be prohibited from offering or entering into a retail forex transaction pursuant to Section 2(c)(2)(E) of the CEA. --------------------------------------------------------------------------- \8\ See Exchange Act Release No. 69964 (Jul. 11, 2013), 77 FR 42439 (Jul. 16, 2013). By its terms, Rule 15b12-1 expires on July 31, 2016. The Commission previously adopted Rule 15b12-1 as an interim final temporary rule, and extended it once on July 11, 2012. See Exchange Act Release Nos. 64874 (Jul. 13, 2011), 76 FR 41676 (Jul. 15, 2011) and 67405 (Jul. 11, 2012), 77 FR 41671 (Jul. 16, 2012). --------------------------------------------------------------------------- By the Commission. Dated: May 20, 2016. Brent J. Fields, Secretary. [FR Doc. 2016-12390 Filed 5-25-16; 8:45 am] BILLING CODE 8011-01-P
![33374 Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Rules and Regulations
ANE–170, FAA, has the authority to approve www.archives.gov/federal-register/cfr/ibr- broker-dealers, including broker-dealers
AMOCs for this AD, if requested using the locations.html. also registered with the Commodity
procedures found in 14 CFR 39.19. In Futures Trading Commission as futures
Issued in Renton, Washington, on May 17,
accordance with 14 CFR 39.19, send your commission merchants, for which the
2016.
request to your principal inspector or local
Flight Standards District Office, as Dionne Palermo, Commission is the federal regulatory
appropriate. If sending information directly Acting Manager, Transport Airplane agency could no longer engage in retail
to the ACO, send it to ATTN: Program Directorate, Aircraft Certification Service. forex transactions except pursuant to a
Manager, Continuing Operational Safety, [FR Doc. 2016–12157 Filed 5–25–16; 8:45 am] rule adopted by the Commission.2
FAA, New York ACO, 1600 Stewart Avenue, A retail forex transaction includes an
BILLING CODE 4910–13–P
Suite 410, Westbury, NY 11590; telephone agreement, contract, or transaction in
516–228–7300; fax 516–794–5531. Before foreign currency that is a contract of sale
using any approved AMOC, notify your of a commodity for future delivery (or
appropriate principal inspector, or lacking a SECURITIES AND EXCHANGE an option on such a contract) or an
principal inspector, the manager of the local COMMISSION option (other than an option executed or
flight standards district office/certificate traded on a national securities exchange
holding district office. The AMOC approval 17 CFR Part 240
letter must specifically reference this AD.
registered pursuant to section 6(a) of the
(2) Contacting the Manufacturer: As of the RIN 3235–AL19 Exchange Act) that is offered to, or
effective date of this AD, for any requirement entered into with, a person that is not
[Release No. 34–77874; File No. S7–30–11]
in this AD to obtain corrective actions from an eligible contract participant as
a manufacturer, the action must be Retail Foreign Exchange Transactions defined in section 1(a)(18) of the CEA.3
accomplished using a method approved by Certain foreign exchange transactions
the Manager, New York ACO, ANE–170, AGENCY: Securities and Exchange are not ‘‘retail forex transactions’’ under
FAA; or TCCA; or Bombardier, Inc.’s TCCA Commission. the CEA, even where one of the
DAO. If approved by the DAO, the approval counterparties is a person that is not an
ACTION: Expiration of regulation.
must include the DAO-authorized signature. eligible contract participant. These
(k) Related Information SUMMARY: Rule 15b12–1, by its terms, transactions include: 4 (i) ‘‘spot forex
(1) Refer to Mandatory Continuing will expire and no longer be effective on transactions’’ where one currency is
Airworthiness Information (MCAI) Canadian July 31, 2016. Interested persons should bought for another and the two
Airworthiness Directive CF–2016–10, dated be aware that as of that date, any broker currencies are exchanged within two
April 27, 2016, for related information. You or dealer, including a broker or dealer days; 5 (ii) forward contracts that create
may examine the MCAI on the Internet at that is also dually registered as a futures an enforceable obligation to make or
http://www.regulations.gov by searching for commission merchant (‘‘BD/FCM’’), take delivery, provided that each
and locating Docket No. FAA–2016–6892. shall be prohibited under the counterparty has the ability to deliver
(2) Service information identified in this
Commodity Exchange Act (‘‘CEA’’) from and accept delivery in connection with
AD that is not incorporated by reference is
available at the addresses specified in offering or entering into a transaction its line of business; and (iii) options that
paragraphs (l)(3) and (l)(4) of this AD. described in the CEA with a person who are executed or traded on a national
is not an eligible contract participant securities exchange registered pursuant
(l) Material Incorporated by Reference (‘‘retail forex transaction’’). to section 6(a) of the Exchange Act.
(1) The Director of the Federal Register DATES: May 26, 2016. The term ‘‘eligible contract
approved the incorporation by reference participant’’ is defined in Section 1a(18)
(IBR) of the service information listed in this FOR FURTHER INFORMATION CONTACT:
of the CEA and, in general terms,
paragraph under 5 U.S.C. 552(a) and 1 CFR Paula Jenson, Deputy Chief Counsel; comprises certain enumerated regulated
part 51. Catherine Moore, Senior Special persons, entities that meet a specified
(2) You must use this service information Counsel; or Stephen J. Benham, Special total asset test or an alternative
as applicable to do the actions required by Counsel, at (202) 551–5550 or Division
this AD, unless this AD specifies otherwise. monetary test coupled with a
of Trading and Markets, Securities and nonmonetary component, certain
(i) Bombardier Repair Engineering Order Exchange Commission, 100 F Street NE.,
670–54–51–034, ‘‘Repair for Missing or employee benefit plans, and certain
Washington, DC 20549–7010. government entities and individuals
Loose/Protruding Fasteners in Upper and
Lower Pylon Skins FS 1088–FS 1098, PBL SUPPLEMENTARY INFORMATION: Section that meet defined thresholds.6 An
69.3 L & RHS,’’ dated March 7, 2016. 2(c)(2)(E) of the CEA, as added by the
(ii) Bombardier Temporary Revision 54– Dodd-Frank Wall Street Reform and 2 See 7 U.S.C. 2(c)(2)(B)(i)(II)(cc) and 2(c)(2)(E).
0007, dated March 8, 2016, to the CRJ700/ Consumer Protection Act, provides that Congress expressly excludes from the CFTC’s
900/1000 Aircraft Maintenance Manual. a person for which there is a Federal jurisdiction retail forex transactions where the
(3) For service information identified in counterparty, or the person offering to be the
regulatory agency, including a broker- counterparty, is a broker or dealer registered under
this AD, contact Bombardier, Inc., 400 Côte-
dealer registered under Section 15(b) Section 15(b) (other than paragraph (11) thereof) or
Vertu Road West, Dorval, Québec H4S 1Y9, 15C of the Exchange Act.
Canada; telephone 514–855–5000; fax 514– (except pursuant to paragraph (11)
3 7 U.S.C. 2(c)(2)(B)(i)(I).
855–7401; email thd.crj@ thereof) or 15C of the Securities and 4 See, generally, the discussion in Exchange Act
aero.bombardier.com; Internet http:// Exchange Act of 1934 (‘‘Exchange Act’’), Release No. 69964 (Jul. 11, 2013), 78 FR 42439 (Jul.
www.bombardier.com. shall not enter into or offer to enter into 16, 2013) at 42439–40.
(4) You may view this service information a retail forex transaction, except 5 In August 2012, the CFTC issued an
at the FAA, Transport Airplane Directorate, pursuant to a rule or regulation of a interpretation in a joint rulemaking with the
1601 Lind Avenue SW., Renton, WA. For Commission that ‘‘conversion trades’’—trades in
Federal regulatory agency allowing the which a foreign exchange transaction facilitates the
sradovich on DSK3TPTVN1PROD with RULES
information on the availability of this transaction under such terms and
material at the FAA, call 425–227–1221. settlement of a foreign security transaction—are
conditions as the Federal regulatory spot transactions and, therefore, are not subject to
(5) You may view this service information the prohibition under the CEA. See Exchange Act
that is incorporated by reference at the agency shall prescribe.1
Release No. 67453 (Jul. 18, 2012), 77 FR 48207
National Archives and Records Section 2(c)(2)(E) of the CEA took (Aug. 13, 2012).
Administration (NARA). For information on effect on July 16, 2011. As of that date, 6 See 7 U.S.C. 1a(18). The Commission and the
the availability of this material at NARA, call CFTC adopted rules under the CEA that further
202–741–6030, or go to: http:// 17 U.S.C. 2(c)(2)(E). define ‘‘eligible contract participant’’ with respect
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![Federal Register / Vol. 81, No. 102 / Thursday, May 26, 2016 / Rules and Regulations 33375
individual is an eligible contract By the Commission. SUMMARY: The Federal Energy
participant if the individual has Dated: May 20, 2016. Regulatory Commission is denying
aggregate amounts invested on a Brent J. Fields, requests for rehearing and granting, in
discretionary basis of more than $10 Secretary. part, clarification of its determinations
million or more than $5 million if such [FR Doc. 2016–12390 Filed 5–25–16; 8:45 am] in Order No. 816, which amended its
individual enters into the transaction to BILLING CODE 8011–01–P
regulations that govern market-based
manage the risk associated with an asset rate authorizations for wholesale sales
owned or liability incurred, or of electric energy, capacity, and
reasonably likely to be owned or ancillary services by public utilities
DEPARTMENT OF ENERGY
incurred by such individual.7 pursuant to the Federal Power Act.
The Commission adopted Rule Federal Energy Regulatory DATES: This rule will become effective
15b12–1 (17 CFR 240.15b12–1) on a Commission July 25, 2016.
time-limited basis to permit a registered FOR FURTHER INFORMATION CONTACT:
broker-dealer to engage in a retail forex 18 CFR Part 35 Greg Basheda (Technical Information),
business.8 The Commission is taking no [Docket No. RM14–14–001; Order No. 816– Office of Energy Market Regulation,
further action, and pursuant to Rule A] Federal Energy Regulatory
15b12–1(d), Rule 15b12–1 will expire Commission, 888 First Street NE.,
and no longer be effective on July 31, Refinements to Policies and Washington, DC 20426, (202) 502–
2016. Upon expiration of the rule on Procedures for Market-Based Rates for 6479.
July 31, 2016, a broker-dealer registered Wholesale Sales of Electric Energy, Carol Johnson (Legal Information),
pursuant to Section 15(b) of the Capacity and Ancillary Services by Office of the General Counsel, Federal
Exchange Act, including an entity that Public Utilities Energy Regulatory Commission, 888
is registered as both a broker-dealer and AGENCY: Federal Energy Regulatory First Street NE., Washington, DC
a futures commission merchant, shall be Commission, DOE. 20426, (202) 502–8521.
prohibited from offering or entering into
ACTION: Final rule; Order on rehearing SUPPLEMENTARY INFORMATION:
a retail forex transaction pursuant to
and clarification.
Section 2(c)(2)(E) of the CEA. Table of Contents
Paragraph
Nos.
I. Introduction ........................................................................................................................................................................................... 1
II. Discussion ............................................................................................................................................................................................ 12
A. Sellers with Fully Committed Long-Term Generation Capacity ............................................................................................... 12
B. Reporting of Long-Term Firm Purchases .................................................................................................................................... 18
C. Clarification of the Definition or Duration of Long-Term Firm Transmission Reservations ................................................... 26
D. Notices of Change in Status ......................................................................................................................................................... 29
E. New Affiliation and Behind-the-Meter Generation .................................................................................................................... 38
F. Corporate Organizational Charts .................................................................................................................................................. 45
G. Part 101 Waivers ........................................................................................................................................................................... 48
H. Capacity Ratings ........................................................................................................................................................................... 52
I. Inputs to Electric Power Production ............................................................................................................................................. 55
J. Transmission/Natural Gas Assets Sheet ....................................................................................................................................... 58
K. Long-Term Firm Power Purchases List ....................................................................................................................................... 60
L. Generation Assets Sheet, Rows [B] and [H] ................................................................................................................................ 62
III. Information Collection Statement ...................................................................................................................................................... 65
IV. Document Availability ....................................................................................................................................................................... 68
V. Effective Date ....................................................................................................................................................................................... 71
Order No. 816–A (Commission) issued Order No. 816,1 Power Act (FPA). In this order, we
which amended its regulations that address requests for rehearing and
Order on Rehearing and Clarification
govern market-based rate authorizations clarification of Order No. 816.2
I. Introduction for wholesale sales of electric energy, 2. Nine requests for rehearing and
1. On October 16, 2015, the Federal capacity, and ancillary services by clarification were filed.3 The requests
Energy Regulatory Commission public utilities pursuant to the Federal for rehearing and clarification concern
to transactions with major swap participants, swap 1 Refinements to Policies and Procedures for Sales of Electric Energy, Capacity and Ancillary
dealers, major security-based swap participants, Market-Based Rates for Wholesale Sales of Electric Services by Public Utilities, 153 FERC ¶ 61,337
security-based swap dealers, and commodity pools. Energy, Capacity and Ancillary Services by Public (2015).
See Exchange Act Release No. 66868 (Apr. 27, Utilities, Order No. 816, FERC Stats. & Regs. ¶ 3 The requests for rehearing and clarification were
2012), 77 FR 30596 (May 23, 2012). 31,374 (2015) (Final Rule). filed by the following entities: EDF Renewable
2 Order No. 816 became effective on January 28,
7 7 U.S.C. 1a(18)(A)(xi).
Energy, Inc. and E.ON Climate & Renewables North
2016. On December 23, 2015, upon consideration of
8 See Exchange Act Release No. 69964 (Jul. 11, America LLC (IPP Developers); Edison Electric
sradovich on DSK3TPTVN1PROD with RULES
requests for a stay of the corporate organizational
2013), 77 FR 42439 (Jul. 16, 2013). By its terms, Institute (EEI); Electric Power Supply Association
chart requirement, the Commission issued an order
Rule 15b12–1 expires on July 31, 2016. The granting an extension of time such that market- (EPSA); Invenergy Thermal Development LLC and
Commission previously adopted Rule 15b12–1 as based rate applicants and sellers would not be Invenergy Wind Development LLC (Invenergy);
an interim final temporary rule, and extended it required to comply with the corporate National Hydropower Association (NHA); NextEra
once on July 11, 2012. See Exchange Act Release organizational chart requirement prior to the Energy, Inc. (NextEra); Southern California Edison
Nos. 64874 (Jul. 13, 2011), 76 FR 41676 (Jul. 15, issuance of an order on the merits of the requests Company (SoCal Edison); Southern Company
2011) and 67405 (Jul. 11, 2012), 77 FR 41671 (Jul. for rehearing. Refinements to Policies and Services, Inc. (Southern); and Transmission Access
16, 2012). Procedures for Market-Based Rates for Wholesale Policy Study Group (TAPS).
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Document Created: 2016-05-26 01:13:52
Document Modified: 2016-05-26 01:13:52
| 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 | Rules and Regulations | |
| Action | Expiration of regulation. | |
| Dates | May 26, 2016. | |
| Contact | Paula Jenson, Deputy Chief Counsel; Catherine Moore, Senior Special Counsel; or Stephen J. Benham, Special Counsel, at (202) 551-5550 or Division of Trading and Markets, Securities and Exchange Commission, 100 F Street NE., Washington, DC 20549-7010. | |
| FR Citation | 81 FR 33374 | |
| RIN Number | 3235-AL19 |
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