Voglio sapere a riguardo di…

8993

Rules and Regulations
Federal Register Vol. 86, No. 27
Thursday, February 11, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 36

I. Background and Introduction
RIN 3038AE25

A. Statutory and Regulatory History Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act 1 amended the Commodity Exchange Act CEA or Act 2 to establish a comprehensive new swaps regulatory framework that addresses, inter alia, the trading of swaps and the registration and oversight of SEFs.3 CEA
section 2h8 provides that swap transactions that are subject to the swap clearing requirement under CEA section 2h1A 4 must be executed on a DCM, a registered SEF, or a SEF that is exempt from registration pursuant to CEA

Exemptions From Swap Trade Execution Requirement Commodity Futures Trading Commission.
ACTION: Final rule.
AGENCY:

The Commodity Futures Trading Commission Commission or CFTC is adopting a final rule Final Rule that establishes two exemptions from the statutory requirement to execute certain types of swaps on a swap execution facility SEF or a designated contract market DCM
this requirement, the trade execution requirement.
DATES: The Final Rule is effective on March 15, 2021.
FOR FURTHER INFORMATION CONTACT:
Roger Smith, Associate Chief Counsel, Division of Market Oversight, 202 418
5344, rsmith@cftc.gov, Commodity Futures Trading Commission, 525 West Monroe Street, Suite 1100, Chicago, IL
60661; or Michael Penick, Senior Economist, 202 4185279, mpenick@
cftc.gov, Office of the Chief Economist, Commodity Futures Trading Commission, Three Lafayette Centre, 1151 21st Street NW, Washington, DC
20581.
SUMMARY:

SUPPLEMENTARY INFORMATION:

Table of Contents
khammond on DSKJM1Z7X2PROD with RULES

2. Final Rule: CEA Section 4c Authority and Standards C. Trade Execution Exemption for Swaps Between Eligible Affiliate Counterparties 1. Proposed Rule 2. Summary of Comments 3. Final Rule: CEA Section 4c Authority and Standard III. Related Matters A. Regulatory Flexibility Act B. Paperwork Reduction Act C. Cost-Benefit Considerations 1. Introduction D. Antitrust Considerations
I. Background and Introduction A. Statutory and Regulatory History B. Summary of the Final Rule II. Part 36Trade Execution Exemptions Linked to Swap Clearing Requirement Exceptions and Exemptions A. Background and Proposed Rule B. Trade Execution Requirement Exemption for Swaps Eligible for a Clearing Requirement Exception or Exemption Under Part 50
1. Summary of Comments
VerDate Sep<11>2014

15:43 Feb 10, 2021

Jkt 253001

1 Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111203, tit. VII, 124
Stat. 1376 2010 codified as amended in various sections of 7 U.S.C., https www.cftc.gov/sites/
default/files/idc/groups/public/@lrfederalregister/
documents/file/2013-12242a.pdf Dodd-Frank Act.
2 7 U.S.C. 1 et seq.
3 7 U.S.C. 2h8, 7b3. As amended, CEA section 1a50 defines a SEF as a trading system or platform that allows multiple participants to execute or trade swaps with multiple participants through any means of interstate commerce. 7 U.S.C. 1a50.
CEA section 5ha1 requires an entity to register as a SEF or a DCM prior to operating a facility for the trading or processing of swaps. 7 U.S.C. 7b 3a1. CEA section 5hf requires registered SEFs to comply with fifteen core principles. 7 U.S.C. 7b 3f.
4 Section 723a3 of the Dodd-Frank Act added a new CEA section 2h to establish the clearing requirement for swaps. 7 U.S.C. 2h. CEA section 2h1A provides that it is unlawful for any person to engage in a swap unless that person submits such swap for clearing to a derivatives clearing organization that is registered under the Act or a derivatives clearing organization that is exempt from registration under the Act if the swap is required to be cleared. 7 U.S.C. 2h1A. CEA
section 2h2 specifies the process for the Commission to review and determine whether a swap, or a group, category, type or class of swap should be subject to the clearing requirement. 7
U.S.C. 2h2. The Commission further implemented the clearing requirement determination process under regulation 39.5 and part 50. Part 50 specifies the interest rate and credit default swaps that are currently subject to the Commissions clearing requirement. 17 CFR part 50.

PO 00000

Frm 00001

Fmt 4700

Sfmt 4700

section 5hg Exempt SEF,5 unless i no DCM or SEF 6 makes the swap available to trade or ii the related transaction is subject to the exception from the swap clearing requirement under CEA section 2h7. The swap clearing requirement exception under CEA section 2h7 applies to nonfinancial entities that are using swaps to hedge or mitigate commercial risk and notify the Commission how they generally meet their financial obligations related to uncleared swaps, and has been implemented under Commission regulation 50.50.7
In 2013, pursuant to its discretionary rulemaking authority in CEA sections 5hf1 and 8a5, the Commission issued an initial set of rules implementing this statutory framework for swap trading and the registration and oversight of SEFs 2013 SEF
Rules.8
In November 2018, the Commission issued a proposed rule Proposed 5 The Commission notes that CEA section 2h8Aii contains a typographical error that specifies CEA section 5hf, rather than CEA section 5hg, as the provision that allows the Commission to exempt a SEF from registration. Where appropriate, the Commission corrects this reference in the discussion herein.
6 CEA sections 2h8Aiii provide that with respect to transactions involving swaps subject to the clearing requirement, counterparties shall execute the transaction on a board of trade designated as a contract market under section 5; or execute the transaction on a swap execution facility registered under 5h or a swap execution facility that is exempt from registration under section 5hg of the Act. Given this reference in CEA section 2h8Aii, the Commission accordingly interprets swap execution facility in CEA section 2h8B to include a swap execution facility that is exempt from registration pursuant to CEA section 5hg.
7 This regulation codifies the statutory exception to the swap clearing requirement set forth in 7
U.S.C. 2h7A. See infra notes 1920 and accompanying text. Recently, the Commission renumbered Commission regulation 50.50d as a new numbered section and heading, namely, Commission regulation 50.53. A stand-alone exemption from the clearing requirement for certain banks, savings associations, farm credit system institutions, and credit unions separated this exemption from the non-financial entities exception provided for under CEA section 2h7
and codified in regulation 50.50ac. See Swap Clearing Requirement Exemptions, 85 FR 76428
Nov. 30, 2020.
8 Core Principles and Other Requirements for Swap Execution Facilities, 78 FR 33476 Jun. 4, 2013 SEF Core Principles Final Rule; Process for a Designated Contract Market or Swap Execution Facility to Make a Swap Available to Trade, Swap Transaction Compliance and Implementation Schedule, and Trade Execution Requirement Under the Commodity Exchange Act, 78 FR 33606 Jun. 4, 2013 MAT Final Rule.

E:FRFM11FER1.SGM

11FER1