[Federal Register Volume 78, Number 68 (Tuesday, April 9, 2013)]
[Rules and Regulations]
[Pages 21045-21046]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-08197]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 23

RIN 3038-AC96


Confirmation, Portfolio Reconciliation, Portfolio Compression, 
and Swap Trading Relationship Documentation Requirements for Swap 
Dealers and Major Swap Participants; Correction

AGENCY: Commodity Futures Trading Commission.

ACTION: Correcting amendments.

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SUMMARY: The Commodity Futures Trading Commission (CFTC) is correcting 
a final rule published in the Federal Register of September 11, 2012 
(77 FR 55904). That rule, 17 CFR 23.505, took effect on November 13, 
2012. Subsequently, the CFTC published final rules in the Federal 
Register of December 13, 2012 (77 FR 74284), that re-codified the 
Commission regulation at 17 CFR 39.6 as a new Commission regulation at 
17 CFR 50.50. This correction amends cross-references in 17 CFR 23.505 
to conform them with the final rules published on December 13, 2012.

DATES: Effective on April 9, 2013.

FOR FURTHER INFORMATION CONTACT: Frank Fisanich, Chief Counsel, 202-
418-5949, [email protected], or Jason A. Shafer, Attorney-Advisor, 
202-418-5097, [email protected], Division of Swap Dealer and 
Intermediary Oversight, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: In the Federal Register of September 11, 
2012 (77 FR 55904), the CFTC published final rules setting forth 
requirements for swap confirmation, portfolio reconciliation, portfolio 
compression, and swap trading relationship documentation for Swap 
Dealers and Major Swap Participants. Those rules, in 17 CFR part 23, 
include cross-references to the Commission regulation at 17 CFR 39.6. 
After the effective date of the Part 23 rules (November 13, 2012), the 
CFTC published final rules in the Federal Register of December 13, 2012 
(77 FR 74284) that re-codified the Commission regulation at 17 CFR 39.6 
as a new Commission regulation at 17 CFR 50.50. Those rules took effect 
on February 11, 2013. Thus, the Commission is making correcting 
amendments to the affected section of 17 CFR part 23 to replace the 
cross-references to 17 CFR 39.6 with cross-references to 17 CFR 50.50.

[[Page 21046]]

List of Subjects in 17 CFR part 23

    Antitrust, Commodity futures, Conduct standards, Conflict of 
interests, Major swap participants, Reporting and recordkeeping, Swap 
dealers, Swaps.
    Accordingly, 17 CFR part 23 is corrected by making the following 
correcting amendments:

PART 23--SWAP DEALERS AND MAJOR SWAP PARTICIPANTS

0
1. The authority citation for Part 23 continues to read as follows:

    Authority:  7 U.S.C. 1a, 2, 6, 6a, 6b, 6b-1, 6c, 6p, 6r, 6s, 6t, 
9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21.


0
2. In Sec.  23.505, revise paragraphs (a) introductory text, (a)(2), 
and (a)(5) to read as follows:


Sec.  23.505  End user exception documentation.

    (a) For swaps excepted from a mandatory clearing requirement. Each 
swap dealer and major swap participant shall obtain documentation 
sufficient to provide a reasonable basis on which to believe that its 
counterparty meets the statutory conditions required for an exception 
from a mandatory clearing requirement, as defined in section 2h(7) of 
the Act and Sec.  50.50 of this chapter. Such documentation shall 
include:
* * * * *
    (2) That the counterparty has elected not to clear a particular 
swap under section 2h(7) of the Act and Sec.  50.50 of this chapter;
* * * * *
    (5) That the counterparty generally meets its financial obligations 
associated with non-cleared swaps. Provided, that a swap dealer or 
major swap participant need not obtain documentation of paragraphs 
(a)(3), (4), or (5) of this section if it obtains documentation that 
its counterparty has reported the information listed in Sec.  
50.50(b)(1)(iii) in accordance with Sec.  50.50(b)(2) of this chapter.
* * * * *

    Issued in Washington, DC, on April 4, 2013, by the Commission.
Christopher J. Kirkpatrick,
Deputy Secretary of the Commission.
[FR Doc. 2013-08197 Filed 4-8-13; 8:45 am]
BILLING CODE 6351-01-P