
[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]
[Notices]
[Pages 60113-60114]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-24179]


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COMMODITY FUTURES TRADING COMMISSION

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-67927; File No. S7-32-11]


Acceptance of Public Submissions Regarding the Study of Stable 
Value Contracts

AGENCY: Commodity Futures Trading Commission; Securities and Exchange 
Commission.

ACTION: Request for comment; reopening of comment period.

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SUMMARY: The Commodity Futures Trading Commission (the ``CFTC'') and 
the Securities and Exchange Commission (the ``SEC'' and, together with 
the CFTC, the ``Commissions'') are reopening the comment period for a 
study to determine whether stable value contracts (``SVCs'') fall 
within the definition of a swap. The study is required by Section 
719(d) of the Dodd-Frank Wall Street Reform and Consumer Protection Act 
(the ``Dodd-Frank Act''). The original comment period for the study 
closed on September 26, 2011. The Commissions did not complete the 
study pending adoption of final rules further defining the terms 
``swap'' and ``security-based swap.'' The Commissions are considering 
the study in light of the recent adoption of these final rules. 
Accordingly, the Commissions are reopening for 30 days the time period 
in which to provide the Commissions with comments.

DATES: Comments should be received on or before November 1, 2012.

ADDRESSES: Comments may be submitted by any of the following methods:

CFTC

     Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments 
through the Web site.
     Mail: Sauntia S. Warfield, Assistant Secretary, Commodity 
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street 
NW., Washington, DC 20581.
     Hand Delivery/Courier: Same as mail above.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Please submit your comments using only one method. ``Stable Value 
Contract Study'' must be in the subject field of responses submitted 
via email, and clearly indicated on written submissions. All comments 
must be submitted in English, or if not, accompanied by an English 
translation. Comments will be posted as received to www.cftc.gov. You 
should submit only information that you wish to make available 
publicly. If you wish the CFTC to consider information that you believe 
is exempt from disclosure under the Freedom of Information Act, a 
petition for confidential treatment of the exempt information may be 
submitted according to the procedures established in section 145.9 of 
the CFTC's regulations.\1\
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    \1\ 17 CFR 145.9.
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    The CFTC reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse, or remove any or all of 
your submission from www.cftc.gov that it may deem to be

[[Page 60114]]

inappropriate for publication, including obscene language. All 
submissions that have been redacted or removed that contain comments on 
the merits of the rulemaking will be retained in the public comment 
file and will be considered as required under applicable laws, and may 
be accessible under the Freedom of Information Act.

SEC

Electronic Comments

     Use the SEC's Internet comment form (http://www.sec.gov/rules/other);
     Send an email to rule-comments@sec.gov. Please include 
File Number S7-32-11 on the subject line; or
     Use the Federal eRulemaking 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 S7-32-11. 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 SEC will post all comments on the SEC's Internet web site 
(http://www.sec.gov/rules/other). Comments will also be available for 
Web site viewing and printing in the SEC'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; the SEC does not edit personal identifying information 
from submissions. You should submit only information that you wish to 
make available publicly.

FOR FURTHER INFORMATION CONTACT: CFTC: Stephen A. Kane, Research 
Economist, Office of the Chief Economist, (202) 418-5911, 
skane@cftc.gov; or David E. Aron, Counsel, Office of the General 
Counsel, (202) 418-6621, daron@cftc.gov, Commodity Futures Trading 
Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, 
DC 20581; SEC: Donna Chambers, Senior Special Counsel, (202) 551-5870, 
Division of Trading and Markets, Securities and Exchange Commission, 
100 F Street NE., Washington, DC 20549-8010.

SUPPLEMENTARY INFORMATION: Pursuant to section 719(d)(1)(A) of the 
Dodd-Frank Act, the Commissions jointly must conduct a study to 
determine whether SVCs fall within the definition of a swap.\2\ Section 
719(d)(1)(A) of the Dodd-Frank Act also requires the Commissions, in 
making such determination, jointly to consult with the Department of 
Labor, the Department of the Treasury, and the State entities that 
regulate the issuers of SVCs.
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    \2\ The term ``swap'' is defined in Commodity Exchange Act 
(``CEA'') section 1a(47), 7 U.S.C. 1a(47). The term ``security-based 
swap'' is defined as an agreement, contract, or transaction that is 
a ``swap'' (without regard to the exclusion from that definition for 
security-based swaps) and that also has certain characteristics 
specified in the Dodd-Frank Act. See section 3(a)(68) of the 
Securities Exchange Act of 1934, 15 U.S.C. 78c(a)(68). Thus, a 
determination regarding whether SVCs fall within the definition of a 
swap also is relevant to a determination of whether SVCs fall within 
the definition of the term ``security-based swap.''
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    If the Commissions determine that SVCs fall within the definition 
of a swap, they jointly must determine if an exemption for SVCs from 
the definition of a swap is appropriate and in the public interest and 
issue regulations implementing such determination.\3\ Until the 
effective date of any such regulations, and notwithstanding any other 
provision of Title VII of the Dodd-Frank Act, the Title VII 
requirements will not apply to SVCs.\4\
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    \3\ See section 719(d)(1)(B) of the Dodd-Frank Act.
    \4\ See section 719(d)(1)(C) of the Dodd-Frank Act.
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    On August 18, 2011, the Commissions requested comment regarding the 
study of SVCs required by Section 719(d) of the Dodd-Frank Act.\5\ 
Specifically, the request for comment included 29 questions and 
encouraged commenters to provide additional relevant information beyond 
that specified in the questions. The Commissions originally requested 
that comments be received by September 26, 2011.\6\
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    \5\ See Acceptance of Public Submissions Regarding the Study of 
Stable Value, 76 FR 53162 (Aug. 25, 2011).
    \6\ Id.
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    Given the regulatory developments since the initial request for 
comment was issued, specifically the adoption of final rules further 
defining the terms ``swap'' and ``security-based swap,'' \7\ the 
Commissions believe that it would be appropriate to solicit additional 
public comments on the study of SVCs required by Section 719(d) of the 
Dodd-Frank Act. Accordingly, the Commissions are reopening the public 
comment period for 30 days. The Commissions are reopening the comment 
period for the limited purpose of soliciting additional or updated 
comments regarding the impact of the final rules further defining the 
terms ``swap'' and ``security-based swap'' on the SVC study.\8\ The 
Commissions have received and reviewed the comments previously 
submitted in response to the initial request for comment. Commenters do 
not need to resubmit comments that have already been provided.
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    \7\ The Commission and the CFTC have approved the final rules 
further defining the terms ``swap'' and ``security-based swap'' but 
did not address therein whether SVCs are swaps or SBSs. See 77 FR 
48208 (Aug. 13, 2012).
    \8\ Question 4 in the request for comment related to the 
applicability and usefulness of the proposed rules further defining 
the terms ``swap'' and ``security-based swap'' (``Proposed 
Definitions''):
    Are the proposed rules and the interpretive guidance set forth 
in the [Proposed Definitions] useful, appropriate, and sufficient 
for persons to consider when evaluating whether SVCs fall within the 
definition of a swap? If not, why not? Would SVCs satisfy the test 
for insurance provided in the [Proposed Definitions]? Why or why 
not? Is additional guidance necessary with regard to SVCs in this 
context? If so, what further guidance would be appropriate? Please 
explain.
    See Acceptance of Public Submissions Regarding the Study of 
Stable Value Contracts, supra note 5, at 53163.

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    By the Commodity Futures Trading Commission.

     Dated: September 26, 2012.
Sauntia S. Warfield,
Assistant Secretary.
    By the Securities and Exchange Commission.

     Dated: September 26, 2012.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2012-24179 Filed 10-1-12; 8:45 am]
BILLING CODE 6351-01-P; 8011-P


