[Federal Register Volume 76, Number 242 (Friday, December 16, 2011)]
[Proposed Rules]
[Pages 78181-78182]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32228]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Part 230
[Release No. 34-65942; File No. S7-38-11]
RIN 3235-AL04
Prohibition Against Conflicts of Interest in Certain
Securitizations
AGENCY: Securities and Exchange Commission.
ACTION: Proposed rule; extension of comment period.
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SUMMARY: The Securities and Exchange Commission is extending the
comment period for a release proposing a new rule to implement Section
621 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of
2010 (the ``Dodd-Frank Act'') on material conflicts of interest in
connection with certain securitizations (the ``ABS Conflicts
Proposal''). The original comment period for the ABS Conflicts Proposal
is scheduled to end on December 19, 2011. The Commission is extending
the time period in which to provide the Commission with comments on the
ABS Conflicts Proposal until January 13, 2012. This action will allow
interested persons additional time to analyze the issues and prepare
their comments.
DATES: Comments should be received on or before January 13, 2012.
ADDRESSES: Comments may be submitted by any of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/proposed.shtml);
Send an email to [email protected]. Please include
File Number S7-38-11 on the subject line; or
Use the Federal Rulemaking Portal (http://www.regulations.gov). Follow the instructions for submitting comments.
Paper Comments
Send paper comments in triplicate to Elizabeth M. Murphy,
Secretary, Securities and Exchange Commission, 100 F Street NE.,
Washington, DC 20549-1090.
All submissions should refer to File Number S7-38-11. This file number
should be included on the subject line if email is used. To help us
process and review your comments more efficiently, please use only one
method. The Commission will post all comments on the Commission's
Internet Web site (http://www.sec.gov/rules/proposed.shtml). Comments
are also available for Web site viewing and printing in the
Commission's Public Reference Room, 100 F Street NE., Washington, DC
20549, on official business days between the hours of 10 a.m. and 3
p.m. All comments received will be posted without change; we do not
edit personal identifying information from submissions. You should
submit only information that you wish to make available publicly.
FOR FURTHER INFORMATION CONTACT: Elizabeth Sandoe, Senior Special
Counsel, Anthony Kelly, Special Counsel, or Barry O'Connell, Attorney
Advisor, Office of Trading Practices, Division of Trading and Markets,
at (202) 551-5720, and David Beaning, Special Counsel and Katherine
Hsu, Chief, Office of Structured Finance, Division of Corporation
Finance, at (202) 551-3850.
SUPPLEMENTARY INFORMATION: The Commission has requested comment on
Proposed Rule 127B under the Securities Act of 1933 (``Securities
Act'') in the ABS Conflicts Proposal to implement Section 621 of the
Dodd-
[[Page 78182]]
Frank Act.\1\ Proposed Rule 127B under the Securities Act would
prohibit certain persons who create and distribute an asset-backed
security, including a synthetic asset-backed security, from engaging in
transactions, within one year after the date of the first closing of
the sale of the asset-backed security, that would involve or result in
a material conflict of interest with respect to any investor in the
asset-backed security. The proposed rule also would provide exceptions
from this prohibition for certain risk-mitigating hedging activities,
liquidity commitments, and bona fide market-making. The ABS Conflicts
Proposal was published in the Federal Register on September 28, 2011.
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\1\ Exchange Act Release No. 34-65355 (September 19, 2011), 76
FR 60320 (September 28, 2011).
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The Commission originally requested that comments on the ABS
Conflicts Proposal be received by December 19, 2011, including comment
about any potential interplay \2\ between Proposed Rule 127B and the
``Volcker Rule Proposal.'' \3\ The Volcker Rule Proposal would
implement Section 619 of the Dodd-Frank Act concerning prohibitions and
restrictions on proprietary trading and certain interests in, and
relationships with, hedge funds and private equity funds. The Volcker
Rule Proposal was published in the Federal Register on November 7, 2011
and the comment period for that proposal ends on January 13, 2012.
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\2\ See, e.g., 76 FR 60320, 60341.
\3\ Exchange Act Release No. 34-65545 (October 12, 2011), 76 FR
68846 (November 7, 2011).
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In an effort to provide the public with a better opportunity to
consider any potential interplay between the ABS Conflicts and Volcker
Rule Proposals, the Commission has determined to provide the public
additional time to consider simultaneously the ABS Conflicts Proposal
and the Volcker Rule Proposal. This extended opportunity to submit
comprehensive comments regarding the ABS Conflicts Proposal and any
potential interplay with the Volcker Rule Proposal would benefit the
Commission in its consideration of any final rules. Therefore, the
Commission is extending the comment period for the ABS Conflicts
Proposal to January 13, 2012, to coincide with the end of the Volcker
Rule Proposal's comment period. The Commission would consider a further
extension of the ABS Conflicts Proposal comment period if the Volcker
Rule Proposal comment period were extended beyond January 13, 2012.
Dated: December 13, 2011.
By the Commission.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2011-32228 Filed 12-15-11; 8:45 am]
BILLING CODE 8011-01-P