81 FR 94276 - Risk-Based Capital and Other Regulatory Requirements for Activities of Financial Holding Companies Related to Physical Commodities and Risk-Based Capital Requirements for Merchant Banking Investments, Regulations Q and Y
FEDERAL RESERVE SYSTEM Federal Register Volume 81, Issue 247 (December 23, 2016)
Federal Register Volume 81, Issue 247 (December 23, 2016)
| Page Range | 94276-94277 | |
| FR Document | 2016-30993 |
[Federal Register Volume 81, Number 247 (Friday, December 23, 2016)] [Proposed Rules] [Pages 94276-94277] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2016-30993] ======================================================================= ----------------------------------------------------------------------- FEDERAL RESERVE SYSTEM 12 CFR Parts 217 and 225 [Docket No. R-1547; RIN 7100 AE-58 Risk-Based Capital and Other Regulatory Requirements for Activities of Financial Holding Companies Related to Physical Commodities and Risk-Based Capital Requirements for Merchant Banking Investments, Regulations Q and Y AGENCY: Board of Governors of the Federal Reserve System (Board). ACTION: Notice of proposed rulemaking; extension of comment period. ----------------------------------------------------------------------- SUMMARY: On September 30, 2016, the Board published in the Federal Register a notice of proposed rulemaking (NPR) to adopt additional limitations on physical commodity trading activities conducted by financial holding companies under complementary authority granted pursuant to section 4(k) of the Bank Holding Company Act and clarify certain existing limitations on those activities; amend the Board's risk-based capital requirements to better reflect the risks associated with a financial holding company's physical commodity activities; rescind the findings underlying the Board orders authorizing certain financial holding companies to engage in energy management services and energy tolling; remove copper from the list of metals that bank holding companies are permitted to own and store as an activity closely related to banking; and increase transparency regarding physical commodity activities of financial holding companies through more comprehensive regulatory reporting. Due to the range and complexity of the issues addressed in the NPR, the public comment period has been extended until February 20, 2017. This action will allow interested persons additional time to analyze the proposal and prepare their comments. DATES: The comment period for the notice of proposed rulemaking published on September 23, 2016, (81 FR 67220) regarding risk-based capital and other regulatory requirements for activities of financial holding companies related to physical commodities and risk-based capital requirements for merchant banking investments is extended from December 22, 2016 to February 20, 2017. ADDRESSES: You may submit comments by any of the methods identified in the NPR.\1\ Please submit your comments using only one method. --------------------------------------------------------------------------- \1\ See 81 FR 67220 (September 30, 2016). FOR FURTHER INFORMATION CONTACT: Constance M. Horsley, Assistant Director, (202) 452-5239, Elizabeth MacDonald, Manager, (202) 475-6316, Kevin Tran, Supervisory Financial Analyst, (202) 452-2309, or Vanessa Davis, Supervisory Financial Analyst, (202) 475-6674, Division of Banking Supervision and Regulation; or Laurie Schaffer, Associate General Counsel, (202) 452-2277, Michael Waldron, Special Counsel, (202) 452-2798, Will Giles, Senior Counsel, (202) 452-3351, or Mary Watkins, Attorney, (202) 452-3722, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the --------------------------------------------------------------------------- Deaf (TDD), (202) 263-4869. SUPPLEMENTARY INFORMATION: On September 30, 2016, the Board published in the Federal Register the NPR. The Board originally set the end of comment period as December 22, 2016, which is 90 days after the date the proposal was published on the Board's Web site and 83 days after the date the proposal was published in the Federal Register. The Board has received comment letters requesting that the Board extend the comment period for the NPR.\2\ In support of this request, commenters assert that the December 22, 2016 deadline does not provide sufficient time to thoroughly analyze the full impact of this complex and wide-ranging proposal. The commenters note that a variety of types of participants in physical commodities markets, such as mining companies, other upstream producers and municipally-owned natural gas districts, may be impacted by the multiple proposals contained in the Commodities NPR and that additional time is needed to understand those impacts and develop meaningful, constructive comments. --------------------------------------------------------------------------- \2\ The Board has received requests from Barrick Gold of North America, the National Mining Association, and Clarke Mobile Counties Gas District and its affiliate, the Black Belt Energy Gas District, to extend the end of the comment period. --------------------------------------------------------------------------- Due to the range and complexity of the issues addressed in the NPR, the public comment period has been [[Page 94277]] extended until February 20, 2017. This action will allow interested persons additional time to analyze the proposal and prepare their --------------------------------------------------------------------------- comments. By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority, December 20, 2016. Robert deV. Frierson, Secretary of the Board. [FR Doc. 2016-30993 Filed 12-22-16; 8:45 am] BILLING CODE 6210-01-P
![94276 Federal Register / Vol. 81, No. 247 / Friday, December 23, 2016 / Proposed Rules
the safety analysis report, without prior For the Nuclear Regulatory Commission. companies related to physical
NRC approval, under certain conditions. Thomas H. Boyce, commodities and risk-based capital
The NRC has also prepared a regulatory Chief, Regulatory Guidance and Generic requirements for merchant banking
analysis (ADAMS Accession number Issues Branch, Division of Engineering, Office investments is extended from December
ML16089A379) in support of DG–1334. of Nuclear Regulatory Research. 22, 2016 to February 20, 2017.
[FR Doc. 2016–30921 Filed 12–22–16; 8:45 am] ADDRESSES: You may submit comments
This draft regulatory guide clarifies
BILLING CODE 7590–01–P by any of the methods identified in the
potentially unclear statements in
NPR.1 Please submit your comments
Section 4.3.8 of Nuclear Energy Institute
using only one method.
document 96–07, Revision 1,
FEDERAL RESERVE SYSTEM FOR FURTHER INFORMATION CONTACT:
‘‘Guidelines for 10 CFR 50.59
Constance M. Horsley, Assistant
Implementation,’’ (ADAMS Accession 12 CFR Parts 217 and 225 Director, (202) 452–5239, Elizabeth
number ML003771157) which was MacDonald, Manager, (202) 475–6316,
endorsed in RG 1.187, Rev 0, (ADAMS [Docket No. R–1547; RIN 7100 AE–58
Kevin Tran, Supervisory Financial
Accession number ML003759710) as Analyst, (202) 452–2309, or Vanessa
acceptable guidance for how to comply Risk-Based Capital and Other
Regulatory Requirements for Activities Davis, Supervisory Financial Analyst,
with NRC regulations in section 50.59 of (202) 475–6674, Division of Banking
of Financial Holding Companies
title 10 of the Code of Federal Supervision and Regulation; or Laurie
Related to Physical Commodities and
Regulations (10 CFR). Because of the Schaffer, Associate General Counsel,
Risk-Based Capital Requirements for
potentially unclear statements in (202) 452–2277, Michael Waldron,
Merchant Banking Investments,
Section 4.3.8 of NEI 96–07, licensees Regulations Q and Y Special Counsel, (202) 452–2798, Will
may misinterpret the definition Giles, Senior Counsel, (202) 452–3351,
governing the ‘‘. . . departure from a AGENCY: Board of Governors of the or Mary Watkins, Attorney, (202) 452–
method of evaluation . . .’’ described in Federal Reserve System (Board). 3722, Legal Division, Board of
the plant’s final safety analysis report ACTION: Notice of proposed rulemaking; Governors of the Federal Reserve
(as updated). extension of comment period. System, 20th and C Streets NW.,
Washington, DC 20551. For the hearing
The draft regulatory guide also adds SUMMARY: On September 30, 2016, the impaired only, Telecommunication
clarification to statements in Section Board published in the Federal Register Device for the Deaf (TDD), (202) 263–
4.3.5 of NEI 96–07, Revision 1, whereby a notice of proposed rulemaking (NPR) 4869.
licensees may misinterpret the last to adopt additional limitations on SUPPLEMENTARY INFORMATION: On
sentence in the second paragraph in physical commodity trading activities September 30, 2016, the Board
Section 4.3.5 if considered in isolation conducted by financial holding published in the Federal Register the
of the statements earlier discussed in companies under complementary NPR. The Board originally set the end
the paragraph. authority granted pursuant to section of comment period as December 22,
III. Backfitting and Issue Finality 4(k) of the Bank Holding Company Act 2016, which is 90 days after the date the
and clarify certain existing limitations proposal was published on the Board’s
Draft regulatory guide DG–1334, if on those activities; amend the Board’s Web site and 83 days after the date the
finalized as Regulatory Guide 1.187, risk-based capital requirements to better proposal was published in the Federal
Revision 1, would provide guidance on reflect the risks associated with a Register.
acceptable ways of determining whether financial holding company’s physical The Board has received comment
licensees may make changes to their commodity activities; rescind the letters requesting that the Board extend
facilities and procedures as described in findings underlying the Board orders the comment period for the NPR.2 In
the safety analysis report, without prior authorizing certain financial holding support of this request, commenters
NRC approval, under the change process companies to engage in energy assert that the December 22, 2016
management services and energy tolling; deadline does not provide sufficient
established in 10 CFR 50.59. The draft
remove copper from the list of metals time to thoroughly analyze the full
regulatory guide, if finalized, would not
that bank holding companies are impact of this complex and wide-
constitute backfitting as defined in 10 permitted to own and store as an
CFR 50.109 (the Backfit Rule) and is not ranging proposal. The commenters note
activity closely related to banking; and that a variety of types of participants in
otherwise inconsistent with the issue increase transparency regarding
finality provisions in 10 CFR part 52, physical commodities markets, such as
physical commodity activities of mining companies, other upstream
‘‘Licenses, Certifications and Approvals financial holding companies through producers and municipally-owned
for Nuclear Power Plants.’’ The subject more comprehensive regulatory natural gas districts, may be impacted
of this draft regulatory guide, as reporting. by the multiple proposals contained in
described above, is an NRC-defined Due to the range and complexity of the Commodities NPR and that
process which does not fall within the the issues addressed in the NPR, the additional time is needed to understand
purview of subjects covered by either public comment period has been those impacts and develop meaningful,
the Backfit Rule or the issue finality extended until February 20, 2017. This constructive comments.
provision in 10 CFR part 52. Issuance of action will allow interested persons Due to the range and complexity of
jstallworth on DSK7TPTVN1PROD with PROPOSALS
the draft regulatory guide, in final form, additional time to analyze the proposal the issues addressed in the NPR, the
would not constitute backfitting, and no and prepare their comments. public comment period has been
further consideration of backfitting is DATES: The comment period for the
required in order to issue the draft or notice of proposed rulemaking 1 See 81 FR 67220 (September 30, 2016).
2 The Board has received requests from Barrick
final regulatory guide in final form. published on September 23, 2016, (81
Gold of North America, the National Mining
Dated at Rockville, Maryland, this 19th day FR 67220) regarding risk-based capital Association, and Clarke Mobile Counties Gas
of December, 2016. and other regulatory requirements for District and its affiliate, the Black Belt Energy Gas
activities of financial holding District, to extend the end of the comment period.
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![Federal Register / Vol. 81, No. 247 / Friday, December 23, 2016 / Proposed Rules 94277
extended until February 20, 2017. This glider were involved in a non-fatal gliders operating in the National
action will allow interested persons midair collision near Reno, Nevada. The Airspace System (NAS) to be equipped
additional time to analyze the proposal collision occurred in flight about 42 with transponders. The FAA did not
and prepare their comments. nautical miles (NM) south-southeast of propose specific regulatory changes but
By order of the Board of Governors of the the Reno-Tahoe International Airport rather sought public comment on the
Federal Reserve System, acting through the (RNO), at an altitude of about 16,000 use of transponders in gliders operating
Secretary of the Board under delegated feet (ft.) above mean sea level (MSL), within the excepted areas of § 91.215.
authority, December 20, 2016. and in an area where gliders are The ANPRM also sought input on more
Robert deV. Frierson, excepted from the transponder recent alternatives to glider equipage
Secretary of the Board. equipment requirements in Title 14, including the use of Traffic Awareness
[FR Doc. 2016–30993 Filed 12–22–16; 8:45 am]
section 91.215(b), of the Code of Federal Beacon System (TABS) 5 and Automatic
Regulations (14 CFR).2 The glider was Dependent Surveillance Broadcast
BILLING CODE 6210–01–P
equipped with a transponder, but the (ADS–B) Out equipment.6 The FAA
transponder was not turned on at the asked for comments from the public and
time of the accident. industry to aid in the development of a
DEPARTMENT OF TRANSPORTATION On March 31, 2008, the National proposed rule and the analysis of its
Transportation Safety Board (NTSB) economic impact.
Federal Aviation Administration
provided safety recommendations to the
FAA resulting from an investigation of Overview of Withdrawal
14 CFR Part 91 Based on the information gathered
the accident.3 The findings of the
[Docket No. FAA–2015–2147; Notice No. 15– accident investigation address the from the ANPRM and a review of the
05] limitations of the see-and-avoid concept current operating environment, the FAA
RIN 2120–AK51 in preventing midair collisions and, finds that it does not have sufficient
more specifically, the benefits of using basis to move forward with rulemaking
Transponder Requirement for Gliders; transponders in gliders for collision at this time. While the FAA has
Withdrawal avoidance. The NTSB recommended determined it is not warranted to move
that the FAA remove the glider forward with a proposal to remove the
AGENCY: Federal Aviation exceptions pertaining to the transponder glider exception in § 91.215, the FAA
Administration (FAA), DOT. equipment and use requirements, will continue to work with local glider
ACTION: Advance notice of proposed finding that ‘‘transponders are critical to communities to increase safety
rulemaking (ANPRM); withdrawal. alerting pilots and controllers to the awareness. The FAA will also continue
presence of nearby traffic so that to consider surveillance system
SUMMARY: The FAA is withdrawing a alternatives and to work with interested
collisions can be avoided.’’
previously published advance notice of On June 16, 2015, the FAA published persons to mitigate the risk of aircraft
proposed rulemaking that sought public an Advance Notice of Proposed collision with gliders. Further, the FAA
comment from interested persons Rulemaking (ANPRM) to respond to recommends that all glider aircraft
involving glider operations in the recommendations from two members of owners equip their gliders with a
National Airspace System. The action Congress 4 and the NTSB. 80 FR 34346. transponder meeting regulatory
responded to recommendations from The ANPRM requested comments on a requirements, a rule-compliant ADS–B
members of Congress and the National proposed rulemaking that would require Out system, or a TABS device.
Transportation Safety Board and was
intended to gather information to Comment Summary
(TCAS). TCAS is a family of airborne devices that
determine whether the current glider function independently of the ground-based air The FAA received 231comments in
exception from transponder equipage traffic control (ATC) system, and provide collision response to its ANPRM. Of the 231
and use provides the appropriate level avoidance protection for a broad spectrum of
aircraft types. All TCAS systems provide some comments received, approximately 18
of safety in the National Airspace degree of collision threat alerting, and a traffic organizations and 213 individual or
System. The FAA is withdrawing that display. anonymous commenters responded.
action because the limited safety benefit 2 The exceptions to the rule allow aircraft that
Approximately 161 comments were
gained does not justify the high cost of were originally certificated without an engine-
unfavorable (adverse), 52 comments
equipage. driven electrical system, such as balloons and
gliders, to be operated in the following areas were favorable, and 18 comments were
DATES: This action becomes effective without a transponder: within a 30 nautical mile
December 23, 2016. radius (NMR) of the 36 listed airports listed in 5 TABS is a surveillance system derived from
Appendix D to part 91 (Mode C veil), provided existing transponder and ADS–B requirements. It
FOR FURTHER INFORMATION CONTACT: For
aircraft remain outside the Class A, B, or C airspace was developed to increase safety by providing a
technical questions concerning this and are below the ceiling of the airspace designated standard for a low cost surveillance solution for
action, contact Patrick J. Moorman, for the Class B or C airport, or 10,000 feet MSL, aircraft excepted from §§ 91.215 and 91.225. An
Airspace Regulations Team, AJV–113, whichever is lower; above 10,000 feet MSL; and in aircraft equipped with TABS is visible to other
the airspace from the surface to 10,000 feet MSL aircraft equipped with collision avoidance systems
Federal Aviation Administration, 800 within a 10 NMR of any airport listed in appendix such as Traffic Advisory System (TAS), Traffic
Independence Avenue SW., D, excluding the airspace below 1,200 feet outside Alert and Collision Avoidance System (TCAS) I,
Washington, DC 20591; telephone (202) of the lateral boundaries of the surface area of the TCAS–II, and ADS–B In. However, a TABS-
267–8783; email: patrick.moorman@ airspace designated for that airport. equipped aircraft is not displayed to controllers.
3 A–08–10 through 13, Safety Recommendations. The FAA published Technical Standard Order
faa.gov.
jstallworth on DSK7TPTVN1PROD with PROPOSALS
National Transportation Safety Board, Washington, (TSO)–C199, the standard for TABS, on October 10,
SUPPLEMENTARY INFORMATION: DC 20594, March 31, 2008. A copy of this letter has 2014.
been placed in the docket. www.regulations.gov 6 ADS–B is a satellite-based surveillance system
Background docket FAA–2005–2147. Note: while NTSB used that uses Global Positioning System (GPS)
the term ‘‘exemption’’ the correct term as it relates technology to determine an aircraft’s location,
On August 28, 2006, a Hawker 800XP to this airspace is ‘‘excepted.’’ airspeed, and other data, and broadcasts that
aircraft 1 and a Schleicher ASW27–18 4 The FAA received letters from Senator Harry information to a network of ground stations, which
Reid (D–NV) and Representative Mark E. Amodei relays the data to air traffic control displays, and to
1 The Hawker 800XP aircraft was equipped with (R–NV); Letters are posted to the docket at nearby aircraft equipped to receive the data via
a Traffic Alert and Collision Avoidance System www.regulations.gov, docket no. FAA–2015–2147. ADS–B In.
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Document Created: 2016-12-23 12:29:59
Document Modified: 2016-12-23 12:29:59
| 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 notice of proposed rulemaking published on September 23, 2016, (81 FR 67220) regarding risk-based capital and other regulatory requirements for activities of financial holding companies related to physical commodities and risk-based capital requirements for merchant banking investments is extended from December 22, 2016 to February 20, 2017. | |
| Contact | Constance M. Horsley, Assistant Director, (202) 452-5239, Elizabeth MacDonald, Manager, (202) 475-6316, Kevin Tran, Supervisory Financial Analyst, (202) 452-2309, or Vanessa Davis, Supervisory Financial Analyst, (202) 475-6674, Division of Banking Supervision and Regulation; or Laurie Schaffer, Associate General Counsel, (202) 452-2277, Michael Waldron, Special Counsel, (202) 452-2798, Will Giles, Senior Counsel, (202) 452-3351, or Mary Watkins, Attorney, (202) 452-3722, Legal Division, Board of Governors of the Federal Reserve System, 20th and C Streets NW., Washington, DC 20551. For the hearing impaired only, Telecommunication Device for the | |
| FR Citation | 81 FR 94276 | |
| CFR Citation | 12
CFR
217 12 CFR 225 |
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