Federal Register Vol 75_ No 47 Thursday_ March 11_ 2010 by vivi07

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									                                                                                       Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices                                                                                     11627

                                                                          CONFORMING PRODUCTS LIST OF EVIDENTIAL BREATH MEASUREMENT DEVICES—Continued
                                                                                                                 Manufacturer and model                                                                                     Mobile            Nonmobile

                                               Smith and Wesson Electronics, Springfield, Massachusetts:
                                                   Breathalyzer Model:
                                                        900 * ...........................................................................................................................................................      X                   X
                                                        900A * ........................................................................................................................................................        X                   X
                                                        1000 * .........................................................................................................................................................       X                   X
                                                        2000 * .........................................................................................................................................................       X                   X
                                                        2000 (non-Humidity Sensor) * ...................................................................................................................                       X                   X
                                               Sound-Off, Inc., Hudsonville, Michigan:
                                                        AlcoData ....................................................................................................................................................          X                   X
                                                        Seres Alco Master .....................................................................................................................................                X                   X
                                                        Seres Alcopro ............................................................................................................................................             X                   X
                                               Stephenson Corp.:
                                                        Breathalyzer 900 * .....................................................................................................................................               X                   X
                                               Tokai-Denshi Inc., Tokyo, Japan:
                                                        ALC–PRO II (US) ......................................................................................................................................                 X                   X
                                               U.S. Alcohol Testing, Inc./Protection Devices, Inc., Rancho Cucamonga, California:
                                                        Alco-Analyzer 1000 ...................................................................................................................................                                     X
                                                        Alco-Analyzer 2000 ...................................................................................................................................                                     X
                                                        Alco-Analyzer 2100 ...................................................................................................................................                 X                   X
                                               Verax Systems, Inc., Fairport, New York:
                                                   BAC Verifier * ....................................................................................................................................................         X                   X
                                                   BAC Verifier Datamaster ..................................................................................................................................                  X                   X
                                                   BAC Verifier Datamaster II * .............................................................................................................................                  X                   X
                                                  * Instruments marked with an asterisk (*) meet the Model Specifications detailed in 49 FR 48854 (December 14, 1984) (i.e., instruments tested
                                               at 0.000, 0.050, 0.101, and 0.151 BAC.) Instruments not marked with an asterisk meet the Model Specifications detailed in 58 FR 48705 (Sep­
                                               tember 17, 1993), and were tested at BACs = 0.000, 0.020, 0.040, 0.080, and 0.160. All instruments that meet the Model Specifications currently
                                               in effect (dated September 17, 1993) also meet the Model Specifications for Screening Devices to Measure Alcohol in Bodily Fluids.


                                               (Authority: 23 U.S.C. 403; 49 CFR 1.50; 49                                 FOR FURTHER INFORMATION CONTACT:     Lori                                   (CDS) 4 that reference government
                                               CFR Part 501).                                                             Santamorena, Lee Grandy, or Kevin                                           securities (collectively, ‘‘the ICE Trust
                                                 Issued on: March 5, 2010.                                                Hawkins, Bureau of the Public Debt,                                         orders’’). Specifically, on March 6, 2009,
                                               Jeffrey P. Michael,                                                        Department of the Treasury, at 202–                                         Treasury granted a temporary
                                               Associate Administrator for Research and                                   504–3632.                                                                   exemption from certain GSA provisions
                                               Program Development.                                                       SUPPLEMENTARY INFORMATION: The                                              and regulations to ICE Trust, certain ICE
                                               [FR Doc. 2010–5242 Filed 3–10–10; 8:45 am]                                 following is Treasury’s order granting                                      Trust participants, and certain eligible
                                               BILLING CODE 4910–59–P                                                     temporary exemptions:                                                       contract participants (ECPs) 5 (the March
                                                                                                                                                                                                      6, 2009 order).6 In the same order
                                                                                                                          I. Introduction                                                             Treasury also granted a limited
                                                                                                                             Treasury regulations govern                                              temporary exemption from certain GSA
                                               DEPARTMENT OF THE TREASURY                                                 transactions in government securities 1                                     regulatory requirements to government
                                                                                                                          by government securities brokers 2 and                                      securities brokers and government
                                               Order Granting Temporary Exemptions                                        government securities dealers 3 under                                       securities dealers that are not financial
                                               From Certain Government Securities                                         Section 15C of the Securities Exchange                                      institutions. On December 7, 2009,
                                               Act Provisions and Regulations in                                          Act of 1934 (Exchange Act), as amended
                                               Connection With a Request From ICE                                         by the Government Securities Act of                                            4 A CDS is a bilateral contract between two

                                               Trust U.S. LLC Related to Central                                          1986 (GSA). These regulations impose                                        parties, known as counterparties. The value of this
                                                                                                                                                                                                      financial contract is based on underlying
                                               Clearing of Credit Default Swaps, and                                      obligations concerning financial                                            obligations of a single entity (reference entity) or on
                                               Request for Comments                                                       responsibility, protection of customer                                      a particular security or other debt obligation, or an
                                                                                                                          securities and balances, and                                                index of several such entities, securities, or
                                               AGENCY:  Department of the Treasury,                                       recordkeeping and reporting.                                                obligations. The obligation of a seller to make
                                               Office of the Assistant Secretary for                                         Treasury has issued multiple orders                                      payments under a CDS contract is triggered by a
                                               Financial Markets.                                                                                                                                     default or other credit event as to such entity or
                                                                                                                          providing temporary conditional                                             entities or such security or securities.
                                               ACTION: Notice of temporary                                                exemptions to permit ICE Trust U.S.                                            5 ECPs are defined in Section 1a(12) of the

                                               exemptions.                                                                LLC (ICE Trust) to clear and settle                                         Commodity Exchange Act, 7 U.S.C. 1 et seq. The
                                                                                                                          transactions in credit default swaps                                        use of the term ECPs in this order refers to the
                                               SUMMARY:   The Department of the                                                                                                                       definition of ECPs in effect on the date of this order,
                                                                                                                                                                                                      and excludes persons that are ECPs under Section
                                               Treasury (Treasury) is granting                                               1 The term government securities is defined at 15
                                                                                                                                                                                                      1a(12)(C). The temporary exemption provided to
                                               temporary exemptions from certain                                          U.S.C. 78c(a)(42).                                                          ECPs in this order also applies to interdealer
                                               Government Securities Act provisions                                          2 A government securities broker generally is ‘‘any                      brokers that are ECPs.
                                               and regulations regarding the central                                      person regularly engaged in the business of                                    6 74 FR 10647, March 11, 2009 Order Granting
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                                                                                                                          effecting transactions in government securities for                         Temporary Exemptions from Certain Provisions of
                                               clearing of credit default swaps that                                      the account of others,’’ with certain exclusions. 15                        the Government Securities Act and Treasury’s
                                               reference government securities. The                                       U.S.C. 78c(a)(43).                                                          Government Securities Act Regulations in
                                               temporary exemptions were requested                                           3 A government securities dealer generally is ‘‘any                      Connection with a Request on Behalf of ICE US
                                               by ICE Trust U.S. LLC. Treasury is also                                    person engaged in the business of buying and                                Trust LLC Related to Central Clearing of Credit
                                               soliciting public comment on this order.                                   selling government securities for his own account,                          Default Swaps, and Request for Comments,
                                                                                                                          through a broker or otherwise,’’ with certain                               available at: http://www.treasurydirect.gov/instit/
                                               DATES: Effective Date March 7, 2010.                                       exclusions. 15 U.S.C. 78c(a)(44).                                           statreg/gsareg/gsareq_treasexemptiveorder309.pdf.



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                                               11628                        Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices

                                               Treasury extended the expiration date of                the ability of ICE Trust to continue                     Treasury is not determining whether
                                               these temporary exemptions until                        operations; that any regulatory risk to                  particular CDS are ‘‘government
                                               March 7, 2010 (the December 7, 2009                     the use of ICE Trust as a central                        securities’’ under 15 U.S.C. § 78c(a)(42).
                                               order).7 Also, on January 28, 2010,                     counterparty (CCP) could create a
                                                                                                                                                                II. Discussion
                                               Treasury granted a temporary,                           significant barrier to the goal of
                                               conditional exemption 8 until March 7,                  encouraging the use of CCPs in the                       A. ICE Trust’s Clearing Activity
                                               2010, to certain ICE Trust clearing                     clearing of CDS; and that it would be                      In its request for an extension, ICE
                                               members and certain ECPs to                             premature to allow the orders to expire                  Trust represents that, other than as
                                               accommodate using ICE Trust to clear                    in the absence of a clear framework for
                                                                                                                                                                discussed in its request, there have been
                                               customer CDS transactions (the January                  continuing ICE Trust’s service. ICE
                                                                                                                                                                no material changes to the operations of
                                               28, 2010 order).                                        Trust also notes that the orders provide
                                                                                                                                                                ICE Trust and the representations made
                                                  On February 23, 2010, Treasury                       regulatory agencies with adequate
                                                                                                                                                                in their previous letters requesting the
                                               received a letter (the request) 9 from ICE              authority to monitor ICE Trust’s
                                                                                                                                                                relief Treasury provided in the ICE
                                               Trust asking that Treasury extend the                   activities, and that ICE Trust is also
                                                                                                                                                                Trust orders.
                                               temporary exemptions in the March 6,                    comprehensively monitored and
                                                                                                                                                                  The request states that, to date, the
                                               2009 and January 28, 2010 orders. The                   regulated by state and federal banking
                                                                                                                                                                products eligible for clearing at ICE
                                               request relates to the exemption for ICE                supervisors.
                                                                                                         Based on the facts presented and the                   Trust include CDS transactions
                                               Trust clearing members, including                                                                                involving certain indices and CDS
                                               certain entities affiliated with ICE Trust              representations made in the request,12
                                                                                                       Treasury is granting a temporary                         contracts based on individual reference
                                               clearing members,10 and certain ECPs                                                                             entities or securities (single-name CDS
                                               from provisions of the Exchange Act                     exemption to certain ICE Trust clearing
                                                                                                       members and certain ECPs from the                        contracts) that meet ICE Trust’s risk
                                               governing government securities                                                                                  management and other criteria. The
                                               transactions, to the extent such                        GSA provisions in connection with
                                                                                                       using ICE Trust to clear both ICE Trust                  request also states that since the date of
                                               provisions would otherwise apply to                                                                              the March 2009 order, ICE Trust has
                                               such ICE Trust clearing members and                     clearing members’ proprietary and
                                                                                                       customer CDS transactions that                           cleared approximately $3.5 trillion in
                                               ECPs in regard to cleared CDS.11 The                                                                             notional amount of index-based CDS
                                               request also relates to the temporary                   reference government securities.
                                                                                                       Treasury is also granting a limited                      contracts and approximately $10.3
                                               exemption previously granted to                                                                                  billion in notional amount of single-
                                               registered or noticed government                        exemption from certain Treasury
                                                                                                       regulatory requirements for registered or                name CDS contracts. We understand
                                               securities brokers and government                                                                                that to date, ICE Trust has not cleared
                                               securities dealers that are not financial               noticed government securities brokers
                                                                                                       and government securities dealers that                   any CDS contracts that reference U.S.
                                               institutions.                                                                                                    government securities.
                                                  ICE Trust has stated that the existing               are not financial institutions with
                                               orders have allowed the financial                       respect to both proprietary and                          B. Conditional Temporary Exemption
                                               industry to advance the goal of central                 customer CDS transactions that                           for Certain ICE Trust Clearing Members
                                               clearing of CDS. It also states that the                reference government securities. The                     and Certain ECPs
                                               orders should be extended because                       exemptions are subject to certain
                                                                                                       conditions and will expire on November                      In the March 6, 2009 order, Treasury
                                               allowing them to expire will jeopardize                                                                          concluded that the CCP clearing facility
                                                                                                       30, 2010, unless Treasury renews,
                                                 7 74 FR 64127, December 7, 2009 Order Extending       revokes, or modifies them. These                         for CDS proposed by ICE Trust may
                                               Temporary Exemptions from Certain Government            temporary exemptions are consistent                      increase transparency, enhance
                                               Securities Act Provisions and Regulations in            with an extension of temporary                           counterparty risk management, and
                                               Connection with a Request from ICE Trust U.S. LLC
                                                                                                       exemptions the Securities and Exchange                   contribute generally to the goal of
                                               Related to Central Clearing of Credit Default Swaps,                                                             mitigating systemic risk. Treasury
                                               available at: http://www.treasurydirect.gov/instit/     Commission (SEC) recently granted to
                                               statreg/gsareg/                                         ICE Trust related to the central clearing                further recognized the possibility that
                                               FR_Treasury_Order_ICE_Extension_(12–7–09).pdf.          of CDS.13                                                applying the GSA requirements to
                                                 8 75 FR 4626, January 28, 2010 Order Granting a
                                                                                                         In providing these temporary                           certain CDS market participants that are
                                               Temporary Exemption from Certain Government
                                                                                                       exemptions from certain provisions of                    not registered or noticed government
                                               Securities Act Provisions and Regulations in                                                                     securities brokers or government
                                               Connection with a Request from ICE Trust U.S. LLC       Section 15C of the Exchange Act,
                                               Related to Central Clearing of Credit Default Swaps,                                                             securities dealers could deter some of
                                               and Request for Comments, available at: http://           12 See note 9, supra. The temporary exemptions         them from using ICE Trust to clear CDS
                                               www.treasurydirect.gov/instit/statreg/gsareg/           Treasury is granting in this order are based on          transactions where the CDS references a
                                               TreasuryICEOrderFedRegisterJan282010.pdf.               representations made in the current request and          government security, and thereby
                                                 9 Letter from Kevin McClear, General Counsel,
                                                                                                       previous requests from ICE Trust. Treasury               reduce the potential systemic risk
                                               ICE Trust to the Commissioner of the Public Debt,       recognizes, however, that there could be legal
                                               Van Zeck, February 23, 2010, available at: http://      uncertainty in the event that one or more of the         mitigation and other benefits of central
                                               www.treasurydirect.gov/instit/statreg/gsareg/           underlying representations were to become                clearing. Consistent with these findings,
                                               gsareg.htm.                                             inaccurate. Accordingly, if these temporary              as well as with the public interest and
                                                 10 ICE Trust stated that, for purposes of its         exemptions become unavailable by reason of an            the protection of investors, Treasury
                                               request, an affiliate means an entity that, directly    underlying representation no longer being
                                               or indirectly, through one or more intermediaries,      materially accurate, the legal status of existing open   temporarily exempted ICE Trust, certain
                                               controls or is controlled by, or is under common        positions in cleared CDS associated with persons         ICE Trust clearing members, and certain
                                               control with, a clearing member.                        subject to the unavailable exemptions will remain        ECPs from the GSA provisions. For
                                                 11 For purposes of this order, cleared CDS means      unchanged, but no new positions can be established       similar reasons, in the December 7, 2009
                                               a credit default swap that is submitted (or offered,    pursuant to the temporary exemptions until all of
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                                               purchased, or sold on terms providing for               the underlying representations are again accurate.       order Treasury extended these
                                               submission) to ICE Trust, that is offered only to,        13 See the SEC’s Web site at http://www.sec.gov        temporary exemptions until March 7,
                                               purchased only by, and sold only to ECPs (as            for the recent Securities Exchange Act Release.          2010.
                                               defined in Section 1a(12) of the Commodity              Order Extending Temporary Exemptions Under the              Also, on January 28, 2010, Treasury
                                               Exchange Act as in effect on the date of this order     Securities Exchange Act of 1934 in Connection with
                                               (other than a person that is an ECP under paragraph     Request of ICE Trust U.S. LLC Related to Central
                                                                                                                                                                granted until March 7, 2010, a
                                               (C) of that section)), and that references a            Clearing of Credit Default Swaps, and Request for        temporary, conditional exemption to
                                               government security.                                    Comments.                                                accommodate customer clearing. The


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                                                                              Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices                                                     11629

                                               exemption was granted to certain ICE                      the purposes of the Exchange Act to                    dealers, who should continue to comply
                                               Trust clearing members and certain                        grant a temporary exemption to                         with existing rules.
                                               ECPs from the GSA provisions in                           registered or noticed government
                                                                                                                                                                D. Consultations and Considerations
                                               connection with using ICE Trust to clear                  securities brokers and government
                                               CDS transactions of their customers.                      securities dealers that are not financial                 In ordering these temporary
                                               Treasury recognized that facilitating the                 institutions from the regulations in 17                exemptions, Treasury has consulted
                                               central clearing of CDS transactions,                     CFR parts 402, 403, 404, and 405 except                with and considered the views of the
                                               including those of ICE Trust clearing                     as circumscribed below.15 Treasury is                  staffs of the SEC, the Commodity
                                               members’ customers, will increase                         providing this temporary exemption to                  Futures Trading Commission (CFTC),
                                               transparency, enhance counterparty risk                   maintain consistency with the SEC’s                    and the appropriate regulatory agencies
                                               management, and contribute generally                      requirements applicable to registered                  for financial institutions.18
                                               to the goal of mitigating systemic risk.                  broker-dealers with respect to CDS                        Treasury continues to believe that
                                                  Treasury finds that the circumstances                  transactions that are submitted to ICE                 applying the GSA requirements to
                                               upon which it issued the previous                         Trust for clearance and settlement. This               certain CDS market participants that are
                                               exemptions still exist and, therefore,                    exemption will expire on November 30,                  not registered or noticed government
                                               Treasury believes that granting this                      2010, unless Treasury renews, revokes,                 securities brokers or government
                                               temporary exemption is warranted and                      or modifies it.                                        securities dealers could deter some of
                                               appropriate.                                                                                                     them from using ICE Trust to clear CDS
                                                  For these reasons, the Secretary finds                    However, consistent with the March                  transactions where the CDS references a
                                               that, it is consistent with the public                    6, 2009 order, this order does not                     government security, thereby reducing
                                               interest, the protection of investors, and                exempt registered or noticed                           the potential systemic risk mitigation
                                               the purposes of the Exchange Act to                       government securities brokers or                       and other benefits of central clearing.
                                               grant the conditional, temporary                          government securities dealers from the                 Treasury also continues to believe that,
                                               exemption set forth below. This                           following: (1) The capital requirements                in order to avoid creating obstacles to
                                               exemption will expire on November 30,                     for registered government securities                   the use of CCPs for CDS, the full range
                                               2010, unless Treasury renews, revokes,                    brokers and government securities                      of GSA requirements generally should
                                               or modifies it and is consistent with a                   dealers in part 402 of the GSA                         not be applied to government securities
                                               recent extension of temporary                             regulations (which are comparable to                   brokers and government securities
                                               exemptions the SEC granted related to a                   SEC Rule 15c3–1 on net capital); 16 (2)                dealers for transactions involving CDS
                                               request from ICE Trust concerning                         the provisions of part 403 of the GSA                  that reference government securities.
                                               central clearing of CDS.14                                regulations that incorporate and modify                Moreover, Treasury continues to believe
                                                                                                         SEC Rule 15c3–3 on reserves and                        that it would be premature to allow the
                                               C. Temporary Exemption for Registered                     custody of securities; (3) the provisions              exemptions to expire.
                                               or Noticed Government Securities                          of parts 404 and 405 of the GSA                           Treasury bases this order on the facts
                                               Brokers and Government Securities                         regulations that incorporate and modify                and circumstances presented and
                                               Dealers That Are Not Financial                            SEC Rules 17a–3 through 17a–5, 17h–1T                  representations made by ICE Trust in
                                               Institutions                                              and 17h–2T, on records and reports; and                the request. ICE Trust has indicated that
                                                  In its March 6, 2009 order, Treasury                   (4) the provisions of part 404 of the GSA              there have been no material changes to
                                               provided a temporary exemption for                        regulations that incorporate and modify                any of the facts or circumstances in its
                                               government securities brokers and                         SEC Rule 17a–13 on quarterly security                  request for extension and expansion of
                                               government securities dealers that are                    counts. This temporary exemption                       the March 6, 2009 order that would
                                               not financial institutions from certain                   applies to these entities’ transactions in             cause such representations to no longer
                                               GSA regulations with respect to CDS                       cleared CDS.17                                         be materially accurate.
                                               transactions that are submitted to ICE                       With respect to noticed government                  III. Solicitation of Comments
                                               Trust for clearance and settlement.                       securities brokers and government
                                                  In crafting this temporary exemption,                  securities dealers that are financial                     When Treasury issued the March 6,
                                               Treasury balanced the need to avoid                       institutions, the GSA regulations                      2009 and January 28, 2010 orders, we
                                               creating disincentives to the prompt use                  generally adopt the appropriate                        solicited comment on all aspects of the
                                               of CCPs against the critical role that                                                                           temporary exemptions, and specifically
                                                                                                         regulatory agency rules for financial
                                               certain government securities brokers                                                                            requested comment as to the duration of
                                                                                                         institutions that are comparable to the
                                               and government securities dealers play                                                                           the temporary exemptions and the
                                                                                                         SEC rules to which the Treasury
                                               in promoting market integrity and                                                                                appropriateness of the exemptive
                                                                                                         exemption does not apply. The GSA
                                               protecting customers. Treasury                                                                                   conditions. We received no comments.
                                                                                                         regulations also incorporate other rules                  In connection with this order, we
                                               recognized that the full range of GSA                     of the appropriate regulatory agencies
                                               requirements should not be applied                                                                               reiterate our request for comments on
                                                                                                         that are applicable to financial                       the relief we are granting and whether
                                               immediately to government securities                      institutions. Consistent with Treasury’s
                                               brokers and government securities                                                                                the conditions we have placed on the
                                                                                                         March 6, 2009 order, this temporary                    relief adequately protect customer funds
                                               dealers that engage in transactions                       exemption does not apply to financial                  and securities from the threat posed by
                                               involving CDS that reference a                            institution government securities                      a clearing member’s insolvency.
                                               government security.                                      brokers and government securities                         Treasury will continue to monitor ICE
                                                  Accordingly, in light of the risk
                                                                                                                                                                Trust’s progress and the development of
                                               management and systemic benefits in                         15 The rules in part 400 are excluded because they
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                                               continuing to facilitate CDS clearing by                  are rules of general application. The rules in part      18 The definition of appropriate regulatory agency
                                               ICE Trust, the Secretary finds, pursuant                  401 are excluded because they cover existing           with respect to a government securities broker or a
                                               to Section 15C(a)(5) of the Exchange                      exemptions. The rules in part 449 are excluded         government securities dealer is set out at 15 U.S.C.
                                                                                                         because they describe forms that are required by       78c(a)(34)(G). The definition includes the Board of
                                               Act, that it is consistent with the public                other rules.                                           Governors of the Federal Reserve System, the
                                               interest, the protection of investors, and                  16 Part 402 does not apply to registered broker-
                                                                                                                                                                Comptroller of the Currency, the Federal Deposit
                                                                                                         dealers that are subject to Rule 15c3–1.               Insurance Corporation, the Director of Thrift
                                                 14 See   note 13, supra.                                  17 See note 11, supra.                               Supervision, and in limited circumstances the SEC.



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                                               11630                          Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices

                                               CCPs for the CDS market and determine                        (ii) Each ICE Trust clearing member                (iii) of this section, the ICE Trust
                                               to what extent, if any, additional action                 relying on this exemption that                        clearing member must segregate the
                                               might be necessary. For example, as                       participates in the clearing of cleared               collateral in a way that, pursuant to
                                               circumstances warrant, certain                            CDS transactions on behalf of its                     applicable law, is reasonably expected
                                               conditions could be added, altered, or                    customers must promptly provide a                     to protect such collateral from the ICE
                                               eliminated from this order.                               certification to ICE Trust that states that           Trust clearing member’s creditors. The
                                                  Treasury also will continue to consult                 it is relying on the temporary                        ICE Trust clearing member must not
                                               with the staffs of the SEC, the CFTC,                     exemption.                                            permit persons for whom it receives or
                                               and the appropriate regulatory agencies                      (4) Additional conditions for certain              holds such funds and securities to ‘‘opt
                                               for financial institutions on this matter.                ICE Trust clearing members. Each ICE                  out’’ of such segregation even if
                                                  You may send comments to:                              Trust clearing member relying on the                  regulations or laws otherwise would
                                               Government Securities Regulations                         exemption that receives or holds funds                permit it.
                                               Staff, Bureau of the Public Debt, 799 9th                 or securities for the purpose of                         (v) Cooperation with SEC. The ICE
                                               Street NW., Washington, DC 20239–                         purchasing, selling, clearing, settling, or           Trust clearing member must be in
                                               0001. You may also send comments by                       holding cleared CDS positions for U.S.                compliance with any request from the
                                               e-mail to govsecreg@bpd.treas.gov.                        persons (or for any persons if the ICE                SEC for information, documents, or
                                               Please provide your full name and                         Trust clearing member is a U.S. clearing              assistance related to CDS transactions
                                               mailing address. You may download                         member)—other than for an affiliate that              cleared by ICE Trust.
                                               this order, and review the comments we                    controls, is controlled by, or is under                  (vi) Requirements for third-party
                                               receive, from the Bureau of the Public                    common control with the ICE Trust                     custodian account. An ICE Trust
                                               Debt’s Web site at http://                                clearing member—also must comply                      clearing member that transfers customer
                                               www.treasurydirect.gov. The order and                     with the following six conditions with                assets to an account held by a third-
                                               comments also will be available for                       respect to such activities:                           party custodian under paragraph (iii) of
                                               public inspection and copying at the                         (i) No natural persons. The U.S.                   this section must be in material
                                               Treasury Department Library, Room                         persons (or any persons if the ICE Trust              compliance with the SEC’s requirements
                                               1428, Main Treasury Building, 1500                        clearing member is a U.S. clearing                    set forth in its related exemptive order
                                               Pennsylvania Avenue, NW.,                                 member) for whom the ICE Trust                        concerning third-party custodian
                                               Washington, DC 20220. To visit the                        clearing member receives or holds such                accounts.20
                                               library, call (202) 622–0990 for an                       funds or securities may not be natural
                                                                                                                                                                  (b) Temporary Exemption for
                                               appointment.                                              persons.
                                                                                                            (ii) Disclosures. The ICE Trust                    Registered or Noticed Government
                                               IV. Conclusion                                            clearing member must disclose to such                 Securities Brokers and Government
                                                                                                         U.S. persons (or to any such persons if               Securities Dealers that are not Financial
                                                 It is hereby ordered, pursuant to                                                                             Institutions.
                                               Section 15C(a)(5) of the Exchange Act,                    the ICE Trust clearing member is a U.S.
                                                                                                         clearing member) that: (A) the ICE Trust                 Registered or noticed government
                                               that, until November 30, 2010:                                                                                  securities brokers and government
                                                 (a) Conditional Temporary Exemption                     clearing member is not regulated by
                                                                                                         Treasury or the SEC with respect to                   securities dealers that are not financial
                                               for Certain ECPs and ICE Trust Clearing
                                                                                                         activities covered by this exemption; (B)             institutions are exempt from the
                                               Members.
                                                 (1) Persons eligible. This exemption is                 U.S. government securities broker and                 regulations in 17 CFR parts 402, 403,
                                               available to any ECP 19 and any ICE                       government securities dealer segregation              404, and 405. However, this order does
                                               Trust clearing member except for: ICE                     requirements and protections under the                not exempt registered or noticed
                                               Trust clearing members and ECPs that                      Securities Investor Protection Act will               government securities brokers or
                                               are registered or noticed as government                   not apply to any funds or securities held             government securities dealers that are
                                               securities brokers or government                          by the ICE Trust clearing member; (C)                 not financial institutions from the
                                               securities dealers under Section                          the insolvency law of the applicable                  following:
                                               15C(a)(1) of the Exchange Act; ECPs as                    jurisdiction may affect such persons’                    (1) The capital requirements for
                                               defined in Section 1a(12)(C) of the                       ability to recover funds and securities,              registered government securities brokers
                                               Commodity Exchange Act; and ECPs                          or the speed of any such recovery, in an              and government securities dealers in
                                               that are not ICE Trust clearing members                   insolvency proceeding; and (D) if                     part 402 of the GSA regulations (which
                                               and that receive or hold funds or                         applicable, non-U.S. clearing members                 are comparable to SEC Rule 15c3–1 on
                                               securities for the purpose of purchasing,                 may be subject to an insolvency regime                net capital);
                                               selling, clearing, settling, or holding                   that is materially different from that                   (2) the provisions of part 403 of the
                                               cleared CDS positions for other persons.                  applicable to U.S. persons.                           GSA regulations that incorporate and
                                                 (2) Scope of exemption. Subject to the                     (iii) Prompt transfer of funds and                 modify SEC Rule 15c3–3 on reserves
                                               conditions specified in paragraph (3) of                  securities. As promptly as practicable                and custody of securities;
                                               this section, ECPs and ICE Trust                          after receipt, the ICE Trust clearing                    (3) the provisions of parts 404 and 405
                                               clearing members, solely with respect to                  member must transfer such funds and                   of the GSA regulations that incorporate
                                               cleared CDS, are exempt from the                          securities (other than those promptly                 and modify SEC Rules 17a–3 through
                                               provisions of Section 15C(a), (b), and (d)                returned to such other person) to: (A)                17a–5, 17h–1T and 17h–2T, on records
                                               (other than subsection (d)(3)) of the                     the ICE Trust clearing member’s                       and reports; and
                                               Exchange Act, and the rules thereunder.                   Custodial Client Omnibus Margin                          (4) the provisions of part 404 of the
                                                 (3) Conditions for ICE Trust clearing                   Account at ICE Trust; or (B) an account               GSA regulations that incorporate and
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                                               members.                                                  held by a third-party custodian, subject              modify SEC Rule 17a–13 on quarterly
                                                 (i) Each ICE Trust clearing member                      to the requirements in paragraph (vi) of              security counts.
                                               relying on this exemption must be in                      this section.                                            This temporary exemption applies to
                                               material compliance with ICE Trust                           (iv) Segregation until transfer. To the            these entities’ transactions in cleared
                                               rules.                                                    extent there is any delay in transferring             CDS.
                                                                                                         such funds and securities (collateral) to
                                                 19 See   note 5, supra.                                 the third parties identified in paragraph               20 See   note 13 infra.



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                                                                            Federal Register / Vol. 75, No. 47 / Thursday, March 11, 2010 / Notices                                                  11631

                                                 The temporary exemptions contained                    other Federal agencies to take this                   comments will become a matter of
                                               in this order are based on the facts and                opportunity to comment on proposed                    public record.
                                               circumstances presented in the request                  and/or continuing information                           Comments are invited on: (a) Whether
                                               and are conditioned on compliance with                  collections, as required by the                       the collection of information is
                                               the terms of this order. These temporary                Paperwork Reduction Act of 1995,                      necessary for the proper performance of
                                               exemptions could become unavailable if                  Public Law 104–13 (44 U.S.C.                          the functions of the agency, including
                                               the facts or circumstances change such                  3506(c)(2)(A)). Currently, the IRS is                 whether the information shall have
                                               that the representations in the request                 soliciting comments concerning RP–                    practical utility; (b) the accuracy of the
                                               are no longer materially accurate or in                 155431–05, Revenue Procedure                          agency’s estimate of the burden of the
                                               the event of non-compliance. If the SEC                 Regarding 6707/6707A Rescission                       collection of information; (c) ways to
                                               were to withdraw or modify the terms                    Request Procedures.                                   enhance the quality, utility, and clarity
                                               of its order, Treasury may revoke or                    DATES: Written comments should be                     of the information to be collected; (d)
                                               modify this order accordingly. The                      received on or before May 10, 2010 to                 ways to minimize the burden of the
                                               status of cleared CDS submitted to ICE                  be assured of consideration.                          collection of information on
                                               Trust prior to such change would be                     ADDRESSES: Direct all written comments                respondents, including through the use
                                               unaffected.                                             to R. Joseph Durbala, Internal Revenue                of automated collection techniques or
                                               V. Paperwork Reduction Act                              Service, Room 6129, 1111 Constitution                 other forms of information technology;
                                                                                                       Avenue, NW., Washington, DC 20224.                    and (e) estimates of capital or start-up
                                                  This order includes two requests that                                                                      costs and costs of operation,
                                               fall within the definition of                           FOR FURTHER INFORMATION CONTACT:
                                                                                                                                                             maintenance, and purchase of services
                                               ‘‘information’’ under the regulations                   Requests for additional information or
                                                                                                                                                             to provide information.
                                               implementing the Paperwork Reduction                    copies of the revenue procedure should
                                               Act (PRA). 5 CFR 1320.3(h). One is the                  be directed to Dawn E. Bidne at Internal                Approved: February 26, 2010.
                                               certification that ICE Trust clearing                   Revenue Service, room 6129, 1111                      R. Joseph Durbala,
                                               members must provide to ICE Trust                       Constitution Avenue, NW., Washington,                 IRS Supervisory Tax Analyst.
                                               under paragraph (a)(3)(ii) of this order,               DC 20224, or at (202) 622–3933, or                    [FR Doc. 2010–5185 Filed 3–10–10; 8:45 am]
                                               concerning their reliance on Treasury’s                 through the Internet at                               BILLING CODE 4830–01–P
                                               temporary exemption. The second is the                  Dawn.E.Bidne@irs.gov.
                                               disclosures that certain ICE Trust                      SUPPLEMENTARY INFORMATION:
                                               clearing members must make if they           Title: Revenue Procedure Regarding                               DEPARTMENT OF THE TREASURY
                                               receive or hold funds or securities for    6707/6707A Rescission Request
                                               the purpose of purchasing, selling,        Procedures.                                                        Internal Revenue Service
                                               clearing, settling, or holding cleared       OMB Number: 1545–2047.                                           Proposed Collection; Comment
                                               CDS positions for U.S. persons, under        Revenue Procedure Number: 155431–
                                                                                                                                                             Request for Form 8868
                                               paragraph (a)(4)(ii) of this order.        05.
                                                  However, Treasury at this time            Abstract: This revenue procedure                                 AGENCY: Internal Revenue Service (IRS),
                                               estimates that there will not be 10 or     provides guidance to persons who are                               Treasury. 

                                               more ICE Trust clearing members that       assessed a penalty under section 6707A                             ACTION: Notice and request for 

                                               will be relying on this order to clear     or 6707 of the Internal Revenue Code,                              comments. 

                                               CDS that reference a government            and who may request rescission of those
                                               security. As a result, these requests do   penalties from the Commissioner.                                   SUMMARY:   The Department of the
                                               not constitute ‘‘collections of              Current Actions: There are no changes                            Treasury, as part of its continuing effort
                                               information’’ subject to the PRA. 5 CFR    being made to this revenue procedure.                              to reduce paperwork and respondent
                                               1320.3(c). Therefore, the PRA does not       Type of Review: Extension of a                                   burden, invites the general public and
                                               apply to this order.                       previously approved collection.                                    other Federal agencies to take this
                                                                                            Affected Public: Individuals or                                  opportunity to comment on proposed
                                               Mary J. Miller,
                                                                                          households, business or other for-profit.                          and/or continuing information
                                                                                            Estimated Number of Respondents:                                 collections, as required by the
                                               Assistant Secretary for Financial Markets.
                                                                                          859.                                                               Paperwork Reduction Act of 1995,
                                               [FR Doc. 2010–5320 Filed 3–10–10; 8:45 am]   Estimated Time per Respondent: 0.5                               Public Law 104–13 (44 U.S.C.
                                               BILLING CODE 4810–39–P                     hours.                                                             3506(c)(2)(A)). Currently, the IRS is
                                                                                            Estimated Total Annual Burden                                    soliciting comments concerning Form
                                                                                          Hours: 429.50.                                                     8868, Application for Extension of Time
                                               DEPARTMENT OF THE TREASURY                   An agency may not conduct or                                     To File an Exempt Organization Return.
                                                                                          sponsor, and a person is not required to
                                               Internal Revenue Service                                                                                      DATES: Written comments should be
                                                                                          respond to, a collection of information
                                               [RP–155431–05]                             unless the collection of information                               received on or before May 10, 2010 to
                                                                                          displays a valid OMB control number.                               be assured of consideration.
                                               Proposed Collection; Comment               Books or records relating to a collection                          ADDRESSES: Direct all written comments
                                               Request for Revenue Procedure              of information must be retained as long                            to R. Joe Durbala, Internal Revenue
                                                                                                                                                             Service, Room 6129, 1111 Constitution
                                               AGENCY: Internal Revenue Service (IRS), 
 as their contents may become material
                                                                                          in the administration of any internal                              Avenue, NW., Washington, DC 20224.
                                               Treasury. 

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                                               ACTION: Notice and request for 
           revenue law. Generally, tax returns and                            FOR FURTHER INFORMATION CONTACT:
                                               comments. 
                                tax return information are confidential,                           Requests for additional information or
                                                                                          as required by 26 U.S.C. 6103.                                     copies of the form and instructions
                                               SUMMARY: The Department of the               Request for Comments: Comments                                   should be directed to Elaine Christophe,
                                               Treasury, as part of its continuing effort submitted in response to this notice will                          (202) 622–3179, or at Internal Revenue
                                               to reduce paperwork and respondent         be summarized and/or included in the                               Service, Room 6129, 1111 Constitution
                                               burden, invites the general public and     request for OMB approval. All                                      Avenue, NW., Washington DC 20224, or


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