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)

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.

[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]


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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.

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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.
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    \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 
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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.
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    \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.
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    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 
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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