81 FR 47359 - Order Extending the Designation of the Provider of Legal Entity Identifiers To Be Used in Recordkeeping and Swap Data Reporting Pursuant to the Commission's Regulations

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 81, Issue 140 (July 21, 2016)

Page Range		47359-47361
FR Document		2016-17229

The Commodity Futures Trading Commission (``Commission'') has issued an order (``Order'') to extend the Commission's designation of the Depository Trust and Clearing Corporation (``DTCC'') and Society for Worldwide Interbank Financial Telecommunication (``SWIFT'') joint venture (``DTCC-SWIFT'') as the provider of legal entity identifiers, or ``LEIs,'' pursuant to applicable provisions of the Commodity Exchange Act (``CEA'') and the Commission's regulations. DTCC-SWIFT's designation was originally made by Commission order issued on July 23, 2012, for a term of two years. The Commission's order of July 23, 2012 was amended on June 7, 2013, an Amended and Restated Order issued on July 22, 2014 to extend DTCC-SWIFT's designation for an additional one year, and an Order was issued on July 17, 2015 to further extend DTCC- SWIFT's designation for an additional one year. This Order supersedes the Commission's Order issued on July 17, 2015 and further extends DTCC-SWIFT's designation for an additional one year while the transition to a fully operational global LEI system continues. This Order permits registered entities and swap counterparties subject to the Commission's jurisdiction to comply with the legal entity identifier requirements of parts 45 and 46 of the Commission's regulations by using identifiers issued by DTCC-SWIFT, or any other pre-Local Operating Unit (``pre-LOU'') that has been endorsed by the Regulatory Oversight Committee (``ROC'') of the global LEI system as being globally acceptable and as issuing globally acceptable legal entity identifiers.

Federal Register, Volume 81 Issue 140 (Thursday, July 21, 2016)

[Federal Register Volume 81, Number 140 (Thursday, July 21, 2016)]
[Notices]
[Pages 47359-47361]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17229]


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COMMODITY FUTURES TRADING COMMISSION


Order Extending the Designation of the Provider of Legal Entity 
Identifiers To Be Used in Recordkeeping and Swap Data Reporting 
Pursuant to the Commission's Regulations

AGENCY: Commodity Futures Trading Commission.

ACTION: Order.

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SUMMARY: The Commodity Futures Trading Commission (``Commission'') has 
issued an order (``Order'') to extend the Commission's designation of 
the Depository Trust and Clearing Corporation (``DTCC'') and Society 
for

[[Page 47360]]

Worldwide Interbank Financial Telecommunication (``SWIFT'') joint 
venture (``DTCC-SWIFT'') as the provider of legal entity identifiers, 
or ``LEIs,'' pursuant to applicable provisions of the Commodity 
Exchange Act (``CEA'') and the Commission's regulations. DTCC-SWIFT's 
designation was originally made by Commission order issued on July 23, 
2012, for a term of two years. The Commission's order of July 23, 2012 
was amended on June 7, 2013, an Amended and Restated Order issued on 
July 22, 2014 to extend DTCC-SWIFT's designation for an additional one 
year, and an Order was issued on July 17, 2015 to further extend DTCC-
SWIFT's designation for an additional one year. This Order supersedes 
the Commission's Order issued on July 17, 2015 and further extends 
DTCC-SWIFT's designation for an additional one year while the 
transition to a fully operational global LEI system continues. This 
Order permits registered entities and swap counterparties subject to 
the Commission's jurisdiction to comply with the legal entity 
identifier requirements of parts 45 and 46 of the Commission's 
regulations by using identifiers issued by DTCC-SWIFT, or any other 
pre-Local Operating Unit (``pre-LOU'') that has been endorsed by the 
Regulatory Oversight Committee (``ROC'') of the global LEI system as 
being globally acceptable and as issuing globally acceptable legal 
entity identifiers.

FOR FURTHER INFORMATION CONTACT: Srinivas Bangarbale, Chief Data 
Officer, Office of Data and Technology, (202) 418-5315, 
[email protected], or Richard Mo, Attorney Advisor, Division of 
Market Oversight, (202) 418-7637, [email protected], Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581.

SUPPLEMENTARY INFORMATION: 

Table of Contents

I. Background
    A. Legal Entity Identifiers: CEA Section 21(b) and Sec.  45.6 of 
the Commission's Regulations
    B. Order of July 17, 2015
II. Further Extension of Designation of the DTCC-SWIFT Utility
III. Order

I. Background

A. Legal Entity Identifiers: CEA Section 21(b) and Sec.  45.6 of the 
Commission's Regulations

    Title VII of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (``Dodd-Frank Act'') \1\ amended the CEA \2\ to 
establish a comprehensive new regulatory framework for swaps. 
Amendments to the CEA included the addition of provisions requiring the 
retention, and the reporting to Commission-registered swap data 
repositories (``SDRs''), of data regarding swap transactions, in order 
to enhance transparency, promote standardization and reduce systemic 
risk.\3\ Pursuant to these added provisions, the Commission added to 
its regulations part 45,\4\ which sets forth recordkeeping rules, and 
rules for the reporting of swap transaction data to a registered SDR; 
and part 46,\5\ which sets forth recordkeeping and swap data reporting 
rules for historical swaps.
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    \1\ Pub. L. 111-203, 124 Stat. 1376 (2010).
    \2\ 7 U.S.C. 1 et seq.
    \3\ See, e.g., the following sections added by the Dodd-Frank 
Act: Section 2(a)(13)(G) of the CEA, which requires all swaps, 
whether cleared or uncleared, to be reported to a registered SDR; 
new Section 21(b) of the CEA, which directs the Commission to 
prescribe standards for swap data reporting and attendant 
recordkeeping; and new Sections 4r and 2(h)(5) of the CEA, which, 
among other things, establish reporting requirements for swaps in 
effect as of the enactment of the Dodd-Frank Act (``pre-enactment 
swaps''), as well as swaps in effect after such enactment but prior 
to the effective date for compliance with the Commission's final 
recordkeeping and swap data reporting rules (``transition swaps'' 
and, collectively with pre-enactments swaps, ``historical swaps'').
    \4\ Swap Data Recordkeeping and Reporting Requirements, 77 FR 
2136 (January 13, 2012).
    \5\ Swap Data Recordkeeping and Reporting Requirements: Pre-
Enactment and Transition Swaps, 77 FR 35200 (June 12, 2012).
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    Under the authority granted by section 21(b) of the CEA, which, 
among other things, directs the Commission to prescribe standards that 
specify the data elements for each swap that shall be collected and 
maintained by a registered SDR,\6\ the Commission, in its part 45 
regulations, prescribed the use of a legal entity identifier, or 
``LEI,'' in required recordkeeping and swap data reporting. Section 
45.6 provides that each counterparty to any swap subject to the 
jurisdiction of the Commission shall be identified in all recordkeeping 
and all swap data reporting pursuant to part 45 by means of a single 
legal entity identifier as specified in that section.\7\ In adopting 
this requirement, the Commission highlighted the LEI as a crucial 
regulatory tool to facilitate data aggregation by regulators, which 
furthers, among other goals, the systemic risk mitigation and market 
manipulation prevention purposes of the Dodd-Frank Act.\8\
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    \6\ CEA Section 21(b).
    \7\ 77 FR at 2204. In addition, in part 46 of the Commission's 
regulations, Sec.  46.4 provides that each counterparty to a 
historical swap in existence on or after April 25, 2011, for which 
an initial data report is required pursuant to part 46, must obtain 
a legal entity identifier, which must be used for purposes of 
recordkeeping and swap data reporting under part 46 as prescribed in 
Sec.  46.4. 77 FR at 35228-9.
    \8\ See 77 FR at 2138.
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    Section 45.6 sets forth requirements that the legal entity 
identifier to be used to comply with the Commission's recordkeeping and 
swap data reporting rules must meet, including satisfaction of 
specified technical and governance principles. In adopting these 
requirements, the Commission took into consideration work that had 
commenced at the international level to establish a global LEI 
system.\9\ The Commission expressed its agreement that ``optimum 
effectiveness of [the LEI] as a tool for achieving the systemic risk 
mitigation, transparency and market protection goals of the Dodd-Frank 
Act--goals shared by financial regulators world-wide--would come from 
creation of [an LEI] . . . that is capable of becoming the single 
international standard for unique identification of legal entities 
across the world financial sector.'' \10\ The Commission cited its 
involvement in an international initiative, coordinated by the 
Financial Stability Board (``FSB''),\11\ to establish standards, and a 
governance framework, for a global LEI system--including the 
Commission's participation in an ad hoc, expert group of regulatory 
authorities convened by the FSB to develop recommendations regarding 
the implementation of such a system.\12\
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    \9\ See 77 FR at 2163.
    \10\ Id.
    \11\ The FSB is an international body that develops and promotes 
the implementation of effective regulatory, supervisory and other 
policies in the interest of financial stability. Established in 2009 
as a successor to the Financial Stability Forum, the FSB coordinates 
the work of national financial authorities, international standards 
setting bodies and international financial institutions. Its 
membership includes G-20 members, the International Monetary Fund 
and the World Bank. The FSB Secretariat is located in Basel, 
Switzerland. The FSB's Web site can be accessed at http://www.financialstabilityboard.org.
    \12\ See 77 FR at 2162.
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B. Order of July 17, 2015

    The Commission's July 23, 2012 order was amended on June 7, 2013, 
and the Commission issued an Amended and Restated Order on July 22, 
2014 to extend its designation of the DTCC-SWIFT utility while the 
terms of transition to a fully operational global LEI system were 
finalized and implemented. In the Amended and Restated Order, the 
Commission aligned the legal entity identifier terminology used therein 
with the terminology that is currently in use at the international 
level, and removed certain provisions that, given the current state of

[[Page 47361]]

implementation of the global LEI system, were no longer applicable. On 
July 17, 2015 the Commission issued an Order further extending its 
designation of the DTCC-SWIFT utility for an additional year.
    In the preamble to the Amended and Restated Order, the Commission 
noted that the process to establish the global LEI system continued to 
move forward since the issuance of the Amendment on June 7, 2013, 
noting various implementation milestones,\13\ and that while progress 
towards the establishment of the global LEI system continued, the 
system would not be fully operational before the expiration of DTCC-
SWIFT's two-year term of designation under the July 23, 2012 Order. The 
Commission believed it was appropriate, in order to further the smooth 
transition to a fully operational global LEI system, to extend its 
designation of the DTCC-SWIFT utility, given the significant progress 
made in establishing the global LEI system--including the ROC's 
endorsement of the DTCC-SWIFT utility as a globally acceptable pre-LOU.
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    \13\ In the second half of 2013, the ROC adopted endorsement 
standards for pre-LOUs and the identifiers issued by them, and 
endorsed sixteen member-sponsored pre-LOUs--including DTCC-SWIFT--as 
globally acceptable. The Global LEI Foundation that will provide the 
Central Operating Unit (``COU''), managing the central operations of 
the global LEI system, was formally established under Swiss law. The 
ROC and the Global LEI Foundation are developing a framework for the 
transition of full operational management of the global LEI system 
to the COU, with supervisory oversight by the ROC in the public 
interest.
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II. Further Extension of Designation of the DTCC-SWIFT Utility

    Progress towards the establishment of the global LEI system 
continues. The Global LEI Foundation (``GLEIF'') is incorporated and 
has finalized the Master Agreement with pre-LOUs, including DTCC-
SWIFT's Global Markets Entity Identifier (``GMEI'') utility. The ROC 
continues, within its authority, to facilitate that process. The 
finalization of the Master Agreement was the result of a deliberative 
process that included several multi-party discussions.\14\ As pre-LOUs 
sign the Master Agreement and go through the process to become 
accredited, they will become LOUs and will be under the direct 
operational oversight of the GLEIF, which in turn will be under the 
oversight of the ROC. While it is expected that DTCC-SWIFT will be 
accredited in the near term, given the international and deliberative 
nature of the process, the Commission finds it appropriate to provide 
sufficient time for the process to conclude successfully and smoothly.
---------------------------------------------------------------------------

    \14\ In its 2015 Annual Report, the GLEIF reported certain 
milestones regarding the implementation of the Master Agreement, 
including the arrival of an agreed framework for business operations 
between the GLEIF and the LOUs. See GLEIF 2015 Annual Report, 
available at https://www.gleif.org/content/1-about/5-governance/10-annual-report/2016-05-03_gleif_2015_annual_report_final.pdf.
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    Accordingly, the Commission is issuing this Order, to further 
extend the Commission's designation of the DTCC-SWIFT utility while the 
transition to a fully operational global LEI system is implemented. The 
Commission is not otherwise modifying the terms or conditions found in 
the Amended and Restated Order.

III. Order

    It is ordered, pursuant to Section 21(b) of the CEA and Sec.  45.6 
of the Commission's regulations that:
    1. Subject to the conditions and terms below, the Depository Trust 
and Clearing Corporation (``DTCC'') and Society for Worldwide Interbank 
Financial Telecommunications (``SWIFT'') joint venture (``DTCC-SWIFT'') 
is designated as the provider of legal entity identifiers (``LEIs''), 
to be used in recordkeeping and swap data reporting pursuant to parts 
45 and 46 of the Commission's regulations.
    a. This designation is conditioned on DTCC-SWIFT's continuing 
compliance, for as long as it is authorized to provide LEIs by this 
order or any future order of the Commission, with all of the legal 
entity identifier requirements of part 45 of the Commission's 
regulations, and any related requirements as set forth in this order or 
in the requirements document provided to DTCC-SWIFT during the 
determination and designation process; including, without limitation, 
the requirement to be subject to supervision by a governance structure 
that includes the Commission and other financial regulators in any 
jurisdiction requiring use of legal entity identifiers pursuant to 
applicable law, for the purpose of ensuring that issuance and 
maintenance of LEIs and of associated reference data adheres on an 
ongoing basis to the Commission's requirements set forth in part 45.
    b. This designation is further conditioned on the requirement that, 
subject to applicable confidentiality laws and other applicable law, 
(1) DTCC-SWIFT shall make public all LEIs and associated reference 
data, utility operations, and identity validation processes, and (2) if 
DTCC-SWIFT fails to satisfy the conditions of this designation, or upon 
any termination of this designation pursuant to Section 2(c)(2) below, 
DTCC-SWIFT shall, as instructed by the Commission, pass to a successor 
LEI utility specified by the Commission, or to the global LEI system, 
free of charge, all LEIs issued by DTCC-SWIFT and associated reference 
data and all LEI intellectual property rights.
    c. This designation is made for a limited term, expiring on July 
24, 2017 and may be terminated by the Commission on three months' 
notice in connection with (1) the establishment of the global LEI 
system, or (2) DTCC-SWIFT's exit from the global LEI system.
    2. To comply with the legal entity identifier requirements of parts 
45 and 46 of the Commission's regulations:
    a. Registered entities and swap counterparties subject to the 
Commission's jurisdiction may use LEIs provided by DTCC-SWIFT, any 
other pre-Local Operating Unit (``pre-LOU'') endorsed by the Regulatory 
Oversight Committee of the global LEI system (``ROC'') as globally 
acceptable and as issuing globally acceptable LEIs, or any Local 
Operating Unit (``LOU'') accredited by the Global LEI Foundation 
(``GLEIF''). The list of pre-LOUs that are currently approved by the 
ROC as globally acceptable and that are issuing globally acceptable 
LEIs, including the Web site address via which registered entities and 
swap counterparties may contact each such pre-LOU, is available at 
http://www.leiroc.org/publications/gls/lou_20131003_2.pdf. The list of 
accredited LOUs can be found on the GLEIF Web site at http://www.gleif.org.
    b. As provided in Sec.  45.6(b)(1) of the Commission's regulations, 
registered entities and swap counterparties subject to the Commission's 
jurisdiction shall be identified in all swap recordkeeping and swap 
data reporting by a single LEI.
    3. This Order supersedes the Commission's Order issued on July 17, 
2015.

    Issued in Washington, DC, on July 18, 2016, by the Commission.
Robert N. Sidman,
Deputy Secretary of the Commission.

Appendix to Order Extending the Designation of the Provider of Legal 
Entity Identifiers To Be Used in Recordkeeping and Swap Data Reporting 
Pursuant to the Commission's Regulations--Commission Voting Summary

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

[FR Doc. 2016-17229 Filed 7-20-16; 8:45 am]
 BILLING CODE 6351-01-P

Federal Register / Vol. 81, No. 140 / Thursday, July 21, 2016 / Notices 47359

DEPARTMENT OF COMMERCE parts 222–227). NMFS issues permits pikeminnow; (3) anesthetizing any
based on findings that such permits (1) juvenile steelhead captured during
National Oceanic and Atmospheric are applied for in good faith, (2) would electrofishing and seining activities
Administration not operate to the disadvantage of the prior to measuring weight and length;
RIN 0648–XE732 listed species which are the subject of (4) returning any captured steelhead to
the permits, and (3) are consistent with Chorro Creek; and (5) humanely
Threatened Species; Take of Steelhead the purposes and policies set forth in euthanizing and disposing of
section 2 of the ESA. Authority to take pikeminnow.
AGENCY: National Marine Fisheries listed species is subject to conditions set Field activities for the proposed
Service (NMFS), National Oceanic and forth in the permits. enhancement effort will occur during
Atmospheric Administration (NOAA), This notice is provided pursuant to the summer and fall over five years
U.S. Department of Commerce. section 10(c) of the ESA. NMFS will between August 1, 2016, and December
ACTION: Notice of receipt for one evaluate the application, associated 2020. The annual take Stillwater
scientific enhancement permit documents, and any comment Sciences is requesting for this effort is
application. submitted to determine whether the as follows: (1) Non-lethal capture and
application meets the requirements of release of up to 1,500 juvenile steelhead
SUMMARY: Notice is hereby given that section 10(a) of the ESA and Federal while electrofishing, (2) non-lethal
NMFS has received an application from regulations. The final permit decisions capture and release of up to 150 juvenile
Stillwater Sciences for one U.S. will not be made until after the end of steelhead while seining, (3) non-lethal
Endangered Species Act (ESA) section the 30-day comment period and capture and release up to 5 juvenile
10(a)1(A) scientific enhancement permit consideration of any comment steelhead while hook-and-line fishing,
(permit 20085) to conduct invasive submitted therein. NMFS will publish and (4) non-lethal observation of up to
species removal from a southern notice of its final action in the Federal 2000 juvenile and 10 adult steelhead
California watershed (Chorro Creek). Register. during instream snorkel surveys. The
Proposed activities within the requested Those individuals requesting a potential annual unintentional lethal
permit are expected to affect the hearing on the application listed in this take resulting from the proposed
threatened Southern Central California notice should provide the specific enhancement activities is up to 33
Coast (SCCC) Distinct Population reasons why a hearing on the juvenile steelhead. Overall, no
Segment of steelhead (Oncorhynchus application would be appropriate (see intentional lethal take of steelhead is
mykiss). The public is hereby notified ADDRESSES). Such a hearing is held at proposed or expected as a result of these
that the application for Permit 20085 is the discretion of the Assistant enhancement activities.
available for review and comment Administrator for Fisheries, NOAA. All The proposed scientific enhancement
before NMFS either approves or statements and opinions contained in effort is expected to support steelhead
disapproves the application. the permit action summary are those of recovery in the Chorro Creek watershed
DATES: Written comments on the permit the applicant and do not necessarily and is consistent with recommendations
application must be received at the reflect the views of NMFS. and objectives outlined in NMFS’ South
appropriate address, email mailbox, or Central California Steelhead Recovery
fax number (see ADDRESSES) on or before Permit Application Received Plan. See the application for Permit
August 22, 2016. Permit 20085 20085 for more details on the scientific
ADDRESSES: Written comments on the enhancement proposal and related
Stillwater Sciences (environmental
permit application should be submitted methodology.
consulting firm) has applied for a
by one of the following methods: section 10(a)1(A) scientific Dated: July 18, 2016.
• Email: FRNpermits.lb@noaa.gov. enhancement permit (permit 20085) to Angela Somma,
• Mail: Matt McGoogan, NMFS, conduct an invasive species Chief, Endangered Species Division, Office
California Coastal Area Office, 501 W. management effort involving the of Protected Resources, National Marine
Ocean Blvd., Suite 4200, Long Beach, removal of Sacramento pikeminnow Fisheries Service.
California 90802. (Ptychocheilus grandis) from the Chorro [FR Doc. 2016–17214 Filed 7–20–16; 8:45 am]
• Fax (562) 980–4027. Creek watershed in San Luis Obispo BILLING CODE 3510–22–P
The permit application is available for
County, California. The primary
review, by appointment, at the foregoing
objectives of this effort involve: (1)
address or online at the Authorizations COMMODITY FUTURES TRADING
Determining the distribution,
and Permits for Protected Species Web COMMISSION
abundance, size, and age structures of
site: https://apps.nmfs.noaa.gov/
both pikeminnow and SCCC steelhead;
preview/preview_open_for_ Order Extending the Designation of the
(2) suppressing and eliminating
comment.cfm. Provider of Legal Entity Identifiers To
pikeminnow from the watershed; (3)
FOR FURTHER INFORMATION CONTACT: Matt developing a plan for long-term Be Used in Recordkeeping and Swap
McGoogan (phone: 562–980–4026 or pikeminnow management in the Data Reporting Pursuant to the
email: matthew.mcgoogan@noaa.gov). watershed; and (4) documenting Commission’s Regulations
SUPPLEMENTARY INFORMATION: Species changes in SCCC steelhead abundance AGENCY: Commodity Futures Trading
Covered in This Notice: Threatened and distribution in response to
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Commission.
South Central California Coast Distinct pikeminnow removal. Proposed ACTION: Order.
Population Segment of steelhead enhancement activities include: (1)
(Oncorhynchus mykiss). Conducting snorkel surveys to assess SUMMARY: The Commodity Futures
Scientific research and enhancement abundance and distribution of Trading Commission (‘‘Commission’’)
permits are issued in accordance with pikeminnow and SCCC steelhead; (2) has issued an order (‘‘Order’’) to extend
section 10(a)(1)(A) of the ESA (16 U.S.C. using backpack electrofishing the Commission’s designation of the
1531 et seq.) and regulations governing equipment, seine-nets, hook-and-line Depository Trust and Clearing
listed fish and wildlife permits (50 CFR sampling, and spearfishing to capture Corporation (‘‘DTCC’’) and Society for

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47360 Federal Register / Vol. 81, No. 140 / Thursday, July 21, 2016 / Notices

Worldwide Interbank Financial Act (‘‘Dodd-Frank Act’’) 1 amended the systemic risk mitigation and market
Telecommunication (‘‘SWIFT’’) joint CEA 2 to establish a comprehensive new manipulation prevention purposes of
venture (‘‘DTCC–SWIFT’’) as the regulatory framework for swaps. the Dodd-Frank Act.8
provider of legal entity identifiers, or Amendments to the CEA included the Section 45.6 sets forth requirements
‘‘LEIs,’’ pursuant to applicable addition of provisions requiring the that the legal entity identifier to be used
provisions of the Commodity Exchange retention, and the reporting to to comply with the Commission’s
Act (‘‘CEA’’) and the Commission’s Commission-registered swap data recordkeeping and swap data reporting
regulations. DTCC–SWIFT’s designation repositories (‘‘SDRs’’), of data regarding rules must meet, including satisfaction
was originally made by Commission swap transactions, in order to enhance of specified technical and governance
order issued on July 23, 2012, for a term transparency, promote standardization principles. In adopting these
of two years. The Commission’s order of and reduce systemic risk.3 Pursuant to requirements, the Commission took into
July 23, 2012 was amended on June 7, these added provisions, the Commission consideration work that had
2013, an Amended and Restated Order added to its regulations part 45,4 which commenced at the international level to
issued on July 22, 2014 to extend sets forth recordkeeping rules, and rules establish a global LEI system.9 The
DTCC–SWIFT’s designation for an for the reporting of swap transaction Commission expressed its agreement
additional one year, and an Order was data to a registered SDR; and part 46,5 that ‘‘optimum effectiveness of [the LEI]
issued on July 17, 2015 to further extend which sets forth recordkeeping and as a tool for achieving the systemic risk
DTCC–SWIFT’s designation for an swap data reporting rules for historical mitigation, transparency and market
additional one year. This Order swaps. protection goals of the Dodd-Frank
supersedes the Commission’s Order Under the authority granted by Act—goals shared by financial
issued on July 17, 2015 and further section 21(b) of the CEA, which, among regulators world-wide—would come
extends DTCC–SWIFT’s designation for other things, directs the Commission to from creation of [an LEI] . . . that is
an additional one year while the prescribe standards that specify the data capable of becoming the single
transition to a fully operational global elements for each swap that shall be international standard for unique
LEI system continues. This Order collected and maintained by a registered identification of legal entities across the
permits registered entities and swap SDR,6 the Commission, in its part 45 world financial sector.’’ 10 The
counterparties subject to the regulations, prescribed the use of a legal Commission cited its involvement in an
Commission’s jurisdiction to comply entity identifier, or ‘‘LEI,’’ in required international initiative, coordinated by
with the legal entity identifier recordkeeping and swap data reporting. the Financial Stability Board (‘‘FSB’’),11
requirements of parts 45 and 46 of the Section 45.6 provides that each to establish standards, and a governance
Commission’s regulations by using counterparty to any swap subject to the framework, for a global LEI system—
identifiers issued by DTCC–SWIFT, or jurisdiction of the Commission shall be including the Commission’s
any other pre-Local Operating Unit identified in all recordkeeping and all participation in an ad hoc, expert group
(‘‘pre-LOU’’) that has been endorsed by swap data reporting pursuant to part 45 of regulatory authorities convened by
the Regulatory Oversight Committee by means of a single legal entity the FSB to develop recommendations
(‘‘ROC’’) of the global LEI system as identifier as specified in that section.7 regarding the implementation of such a
being globally acceptable and as issuing In adopting this requirement, the system.12
globally acceptable legal entity Commission highlighted the LEI as a B. Order of July 17, 2015
identifiers. crucial regulatory tool to facilitate data
The Commission’s July 23, 2012 order
aggregation by regulators, which
FOR FURTHER INFORMATION CONTACT: was amended on June 7, 2013, and the
furthers, among other goals, the
Srinivas Bangarbale, Chief Data Officer, Commission issued an Amended and
Office of Data and Technology, (202) 1 Pub.
Restated Order on July 22, 2014 to
L. 111–203, 124 Stat. 1376 (2010).
418–5315, sbangarbale@cftc.gov, or 27
U.S.C. 1 et seq.
extend its designation of the DTCC–
Richard Mo, Attorney Advisor, Division 3 See, e.g., the following sections added by the SWIFT utility while the terms of
of Market Oversight, (202) 418–7637, Dodd-Frank Act: Section 2(a)(13)(G) of the CEA, transition to a fully operational global
rmo@cftc.gov, Commodity Futures
which requires all swaps, whether cleared or LEI system were finalized and
uncleared, to be reported to a registered SDR; new implemented. In the Amended and
Trading Commission, Three Lafayette Section 21(b) of the CEA, which directs the
Centre, 1155 21st Street NW., Commission to prescribe standards for swap data Restated Order, the Commission aligned
Washington, DC 20581. reporting and attendant recordkeeping; and new the legal entity identifier terminology
Sections 4r and 2(h)(5) of the CEA, which, among used therein with the terminology that
SUPPLEMENTARY INFORMATION: other things, establish reporting requirements for is currently in use at the international
swaps in effect as of the enactment of the Dodd-
Table of Contents Frank Act (‘‘pre-enactment swaps’’), as well as
level, and removed certain provisions
swaps in effect after such enactment but prior to the that, given the current state of
I. Background effective date for compliance with the
A. Legal Entity Identifiers: CEA Section Commission’s final recordkeeping and swap data 8 See 77 FR at 2138.
21(b) and § 45.6 of the Commission’s reporting rules (‘‘transition swaps’’ and, collectively 9 See 77 FR at 2163.
Regulations with pre-enactments swaps, ‘‘historical swaps’’). 10 Id.
4 Swap Data Recordkeeping and Reporting
B. Order of July 17, 2015 11 The FSB is an international body that develops
II. Further Extension of Designation of the Requirements, 77 FR 2136 (January 13, 2012). and promotes the implementation of effective
5 Swap Data Recordkeeping and Reporting
DTCC–SWIFT Utility regulatory, supervisory and other policies in the
Requirements: Pre-Enactment and Transition
asabaliauskas on DSK3SPTVN1PROD with NOTICES

III. Order interest of financial stability. Established in 2009 as
Swaps, 77 FR 35200 (June 12, 2012). a successor to the Financial Stability Forum, the
I. Background 6 CEA Section 21(b).
FSB coordinates the work of national financial
7 77 FR at 2204. In addition, in part 46 of the authorities, international standards setting bodies
A. Legal Entity Identifiers: CEA Section Commission’s regulations, § 46.4 provides that each and international financial institutions. Its
21(b) and § 45.6 of the Commission’s counterparty to a historical swap in existence on or membership includes G–20 members, the
after April 25, 2011, for which an initial data report International Monetary Fund and the World Bank.
Regulations The FSB Secretariat is located in Basel,
is required pursuant to part 46, must obtain a legal
entity identifier, which must be used for purposes Switzerland. The FSB’s Web site can be accessed
Title VII of the Dodd-Frank Wall of recordkeeping and swap data reporting under at http://www.financialstabilityboard.org.
Street Reform and Consumer Protection part 46 as prescribed in § 46.4. 77 FR at 35228–9. 12 See 77 FR at 2162.

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Federal Register / Vol. 81, No. 140 / Thursday, July 21, 2016 / Notices 47361

implementation of the global LEI expected that DTCC–SWIFT will be Commission, or to the global LEI
system, were no longer applicable. On accredited in the near term, given the system, free of charge, all LEIs issued by
July 17, 2015 the Commission issued an international and deliberative nature of DTCC–SWIFT and associated reference
Order further extending its designation the process, the Commission finds it data and all LEI intellectual property
of the DTCC–SWIFT utility for an appropriate to provide sufficient time rights.
additional year. for the process to conclude successfully c. This designation is made for a
In the preamble to the Amended and and smoothly.
limited term, expiring on July 24, 2017
Restated Order, the Commission noted Accordingly, the Commission is
that the process to establish the global issuing this Order, to further extend the and may be terminated by the
LEI system continued to move forward Commission’s designation of the DTCC– Commission on three months’ notice in
since the issuance of the Amendment on SWIFT utility while the transition to a connection with (1) the establishment of
June 7, 2013, noting various fully operational global LEI system is the global LEI system, or (2) DTCC–
implementation milestones,13 and that implemented. The Commission is not SWIFT’s exit from the global LEI
while progress towards the otherwise modifying the terms or system.
establishment of the global LEI system conditions found in the Amended and 2. To comply with the legal entity
continued, the system would not be Restated Order. identifier requirements of parts 45 and
fully operational before the expiration of 46 of the Commission’s regulations:
III. Order
DTCC–SWIFT’s two-year term of a. Registered entities and swap
designation under the July 23, 2012 It is ordered, pursuant to Section
21(b) of the CEA and § 45.6 of the counterparties subject to the
Order. The Commission believed it was Commission’s jurisdiction may use LEIs
appropriate, in order to further the Commission’s regulations that:
1. Subject to the conditions and terms provided by DTCC–SWIFT, any other
smooth transition to a fully operational pre-Local Operating Unit (‘‘pre-LOU’’)
global LEI system, to extend its below, the Depository Trust and
Clearing Corporation (‘‘DTCC’’) and endorsed by the Regulatory Oversight
designation of the DTCC–SWIFT utility,
Society for Worldwide Interbank Committee of the global LEI system
given the significant progress made in
Financial Telecommunications (‘‘ROC’’) as globally acceptable and as
establishing the global LEI system—
(‘‘SWIFT’’) joint venture (‘‘DTCC– issuing globally acceptable LEIs, or any
including the ROC’s endorsement of the
SWIFT’’) is designated as the provider Local Operating Unit (‘‘LOU’’)
DTCC–SWIFT utility as a globally
acceptable pre-LOU. of legal entity identifiers (‘‘LEIs’’), to be accredited by the Global LEI Foundation
used in recordkeeping and swap data (‘‘GLEIF’’). The list of pre-LOUs that are
II. Further Extension of Designation of reporting pursuant to parts 45 and 46 of currently approved by the ROC as
the DTCC–SWIFT Utility the Commission’s regulations. globally acceptable and that are issuing
Progress towards the establishment of a. This designation is conditioned on globally acceptable LEIs, including the
the global LEI system continues. The DTCC–SWIFT’s continuing compliance, Web site address via which registered
Global LEI Foundation (‘‘GLEIF’’) is for as long as it is authorized to provide entities and swap counterparties may
incorporated and has finalized the LEIs by this order or any future order of contact each such pre-LOU, is available
Master Agreement with pre-LOUs, the Commission, with all of the legal at http://www.leiroc.org/publications/
including DTCC–SWIFT’s Global entity identifier requirements of part 45 gls/lou_20131003_2.pdf. The list of
Markets Entity Identifier (‘‘GMEI’’) of the Commission’s regulations, and accredited LOUs can be found on the
utility. The ROC continues, within its any related requirements as set forth in GLEIF Web site at http://www.gleif.org.
authority, to facilitate that process. The this order or in the requirements b. As provided in § 45.6(b)(1) of the
finalization of the Master Agreement document provided to DTCC–SWIFT Commission’s regulations, registered
was the result of a deliberative process during the determination and entities and swap counterparties subject
that included several multi-party designation process; including, without to the Commission’s jurisdiction shall
discussions.14 As pre-LOUs sign the limitation, the requirement to be subject be identified in all swap recordkeeping
Master Agreement and go through the to supervision by a governance structure and swap data reporting by a single LEI.
process to become accredited, they will that includes the Commission and other
become LOUs and will be under the financial regulators in any jurisdiction 3. This Order supersedes the
direct operational oversight of the requiring use of legal entity identifiers Commission’s Order issued on July 17,
GLEIF, which in turn will be under the pursuant to applicable law, for the 2015.
oversight of the ROC. While it is purpose of ensuring that issuance and Issued in Washington, DC, on July 18,
maintenance of LEIs and of associated 2016, by the Commission.
13 In the second half of 2013, the ROC adopted
reference data adheres on an ongoing Robert N. Sidman,
endorsement standards for pre-LOUs and the basis to the Commission’s requirements
identifiers issued by them, and endorsed sixteen Deputy Secretary of the Commission.
member-sponsored pre-LOUs—including DTCC– set forth in part 45.
SWIFT—as globally acceptable. The Global LEI b. This designation is further Appendix to Order Extending the
Foundation that will provide the Central Operating conditioned on the requirement that, Designation of the Provider of Legal
Unit (‘‘COU’’), managing the central operations of subject to applicable confidentiality
the global LEI system, was formally established
Entity Identifiers To Be Used in
under Swiss law. The ROC and the Global LEI laws and other applicable law, (1) Recordkeeping and Swap Data
Foundation are developing a framework for the DTCC–SWIFT shall make public all LEIs Reporting Pursuant to the
transition of full operational management of the and associated reference data, utility
asabaliauskas on DSK3SPTVN1PROD with NOTICES

Commission’s Regulations—
global LEI system to the COU, with supervisory operations, and identity validation
oversight by the ROC in the public interest. Commission Voting Summary
14 In its 2015 Annual Report, the GLEIF reported processes, and (2) if DTCC–SWIFT fails
to satisfy the conditions of this On this matter, Chairman Massad and
certain milestones regarding the implementation of
the Master Agreement, including the arrival of an designation, or upon any termination of Commissioners Bowen and Giancarlo voted
agreed framework for business operations between this designation pursuant to Section in the affirmative. No Commissioner voted in
the GLEIF and the LOUs. See GLEIF 2015 Annual
2(c)(2) below, DTCC–SWIFT shall, as the negative.
Report, available at https://www.gleif.org/content/1-
instructed by the Commission, pass to a [FR Doc. 2016–17229 Filed 7–20–16; 8:45 am]
about/5-governance/10-annual-report/2016–05–03_
gleif_2015_annual_report_final.pdf. successor LEI utility specified by the BILLING CODE 6351–01–P

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Document Created: 2018-02-08 07:59:00
Document Modified: 2018-02-08 07:59:00

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		Notices
Action		Order.
Contact		Srinivas Bangarbale, Chief Data Officer, Office of Data and Technology, (202) 418-5315, [email protected], or Richard Mo, Attorney Advisor, Division of Market Oversight, (202) 418-7637, [email protected], Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.
FR Citation		81 FR 47359