[Federal Register Volume 76, Number 122 (Friday, June 24, 2011)]
[Proposed Rules]
[Pages 37029-37030]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-16004]


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DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency

12 CFR Part 45

[Docket No. OCC-2011-0008]
RIN 1557-AD43

BOARD OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM

12 CFR Part 237

[Docket No. R-1415]
RIN 7100 AD74

FEDERAL DEPOSIT INSURANCE CORPORATION

12 CFR Part 324

RIN 3064-AD79

FARM CREDIT ADMINISTRATION

12 CFR Part 624

RIN 3052-AC69

FEDERAL HOUSING FINANCE AGENCY

12 CFR Part 1221

RIN 2590-AA45


Margin and Capital Requirements For Covered Swap Entities

AGENCY: Office of the Comptroller of the Currency, Treasury (OCC); 
Board of Governors of the Federal Reserve System (Board); Federal 
Deposit Insurance Corporation (FDIC); Farm Credit Administration (FCA); 
and the Federal Housing Finance Agency (FHFA).

ACTION: Proposed rule; extension of comment period.

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SUMMARY: On May 11, 2011, the OCC, Board, FDIC, FCA, and FHFA 
(collectively, the Agencies) published in the Federal Register a joint 
notice of proposed rulemaking for public comment to establish minimum 
margin and capital requirements for registered swap dealers, major swap 
participants, security-based swap dealers, and major security-based 
swap participants for which one of the Agencies is the prudential 
regulator (the proposed rule).
    Due to the complexity of the rulemaking, to allow parties more time 
to consider the impact of the proposed rule, and so that the comment 
period on the proposed rule will run concurrently with the comment 
period for similar margin and capital requirements proposed by the 
Commodity Futures Trading Commission, the Agencies have determined that 
an extension of the comment period until July 11, 2011 is appropriate. 
This action will allow interested persons additional time to analyze 
the proposed rules and prepare their comments.

DATES: Comments on the proposed rule must be received on or before July 
11, 2011.

ADDRESSES: You may submit comments by any of the methods identified in 
the proposed rule. Please submit your comments using only one method.

FOR FURTHER INFORMATION CONTACT: OCC: Michael Sullivan, Director, 
Market RAD (202) 874-3978, Kurt Wilhelm, Director, Financial Markets 
Group (202) 874-4479, Jamey Basham, Assistant Director, Legislative and 
Regulatory Activities Division (202) 874-5090, or Ron Shimabukuro, 
Senior Counsel, Legislative and Regulatory Activities Division (202) 
874-5090, Office of the Comptroller of the Currency, 250 E Street, SW., 
Washington, DC 20219.
    Board: Sean D. Campbell, Deputy Associate Director, Division of 
Research and Statistics, (202) 452-3761, Michael Gibson, Senior 
Associate Director, Division of Research and Statistics, (202) 452-
2495, or Jeremy R. Newell, Senior Attorney, Legal Division, (202) 452-
3239, Board of Governors of the Federal Reserve System, 20th and C 
Streets, NW., Washington, DC 20551.
    FDIC: Bobby R. Bean, Chief, Policy Section, (202) 898-6705, John 
Feid, Senior Capital Markets Specialist, (202) 898-8649, Division of 
Risk Management Supervision, Thomas F. Hearn, Counsel, (202) 898-6967, 
or Ryan K. Clougherty, Senior Attorney, (202) 898-3843, Legal Division, 
Federal Deposit Insurance Corporation, 550 17th Street, NW., 
Washington, DC 20429.
    FHFA: Robert Collender, Principal Policy Analyst, Office of Policy 
Analysis and Research, 202-343-1510, [email protected], Peggy 
Balsawer, Assistant General Counsel, Office of General Counsel, 202-
343-1529, [email protected], or James Carley, Senior Associate 
Director, Division of FHLBank Regulation, 202-408-2507, 
[email protected],

[[Page 37030]]

Federal Housing Finance Agency, Fourth Floor, 1700 G Street, NW., 
Washington, DC 20552. The telephone number for the Telecommunications 
Device for the Hearing Impaired is (800) 877-8339.
    FCA: William G. Dunn, Acting Associate Director, Finance and 
Capital Markets Team, Office of Regulatory Policy, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4414, TTY (703) 883-
4434, Joseph T. Connor, Associate Director for Policy and Analysis, 
Office of Secondary Market Oversight, Farm Credit Administration, 
McLean, VA 22102-5090, (703) 883-4280, TTY (703) 883-4434, or Rebecca 
S. Orlich, Senior Counsel, Office of General Counsel, Farm Credit 
Administration, McLean, VA 22102-5090, (703) 883-4020, TTY (703) 883-
4020.

SUPPLEMENTARY INFORMATION: On May 11, 2011, the proposed rule was 
published in the Federal Register.\1\ The proposed rule would establish 
minimum margin and capital requirements for registered swap dealers, 
major swap participants, security-based swap dealers, and major 
security-based swap participants for which one of the Agencies is the 
prudential regulator, as required under sections 731 and 764 of the 
Dodd-Frank Wall Street Reform and Consumer Protection Act (the Dodd-
Frank Act).\2\ Sections 731 and 764 of the Dodd-Frank Act add a new 
section 4s to the Commodity Exchange Act and a new section 15F to the 
Securities Exchange Act of 1934, respectively, which require the 
registration and regulation of swap dealers and major swap participants 
and security-based swap dealers and major security-based swap 
participants (collectively, swap entities). For certain types of swap 
entities that are prudentially regulated by one of the Agencies, 
sections 731 and 764 of the Dodd-Frank Act require the Agencies to 
adopt rules jointly for swap entities under their respective 
jurisdictions imposing (i) capital requirements and (ii) initial and 
variation margin requirements on all non-cleared swaps and non-cleared 
security-based swaps. In recognition of the complexities of the 
rulemaking and the variety of considerations involved in its impact and 
implementation, the Agencies requested that commenters respond to 
numerous questions. The proposed rule stated that the public comment 
period would close on June 24, 2011.\3\
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    \1\ See 76 FR 27564.
    \2\ Dodd-Frank Wall Street Reform and Consumer Protection Act, 
Public Law 111-203, 124 Stat. 1376 (2010).
    \3\ See id.
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    The Agencies have received requests from the public for an 
extension of the comment period.\4\ The Agencies believe that it is 
important to allow parties more time to consider the impact of the 
proposed rule, and to extend the comment period on the proposed rule so 
that it will run concurrently with the comment period for similar 
margin and capital requirements proposed by the Commodity Futures 
Trading Commission.\5\ Therefore, the Agencies are extending the 
deadline for submitting comments on the proposed rule from June 24, 
2011 to July 11, 2011.
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    \4\ See comment letter to the OCC, Board, and FDIC from American 
Bankers Association et al. (June 17, 2011).
    \5\ See 76 FR 23732; 76 FR 27621.

    Dated: June 21, 2011.
Julie L. Williams,
First Senior Deputy Comptroller and Chief Counsel.
    By order of the Board of Governors of the Federal Reserve 
System, acting through the Secretary under delegated authority, June 
22, 2011.
Jennifer J. Johnson,
Secretary of the Board.

    Dated at Washington, DC, this 21 of June 2011.

Federal Deposit Insurance Corporation.
Robert E. Feldman,
Executive Secretary.
Dale L. Aultman
Secretary, Farm Credit Administration Board.

    Dated: June 21, 2011.
Stephen M. Cross,
Deputy Director of the Division of Bank Regulation.

    By delegation,

Federal Housing Finance Agency.

[FR Doc. 2011-16004 Filed 6-23-11; 8:45 am]
BILLING CODE 6714-01-8070-01-6705-01-6210-01-4810-33-P