Special Air Traffic Rule Info - Luke Air Force Base

Federal Register / Vol. 74, No. 250 / Thursday, December 31, 2009 / Rules and Regulations69275erowe on DSK5CLS3C1PROD with RULESThe FAA does not agree. Direct andcontinuous communicationrequirements for aircraft operating inthe vicinity of the Luke terminalairspace area would reduce the numberof conflicts and the NMAC potential.Continuous communication providescontrollers with the ability to exchangetimely and accurate aircraft positioninformation for both military and civilpilots operating in the area thusenhancing the pilots’ see and avoidcapability.The SATR area uses prominentgeographical landmarks to define theseparate sub-areas that comprise thewhole configuration. These sub-areaboundaries are depicted on both thePHX Terminal Area Chart and the VFRSectional Aeronautical Chart to assistthe pilot with basic navigation. Auniform floor was considered andrejected because it would have requireda larger area than was needed to protectaircraft arriving and departing Luke.Regarding perceived issues ofcompression or ‘‘funneling’’ of airtraffic, pilots have two alternatives.First, pilots may participate in SATRservices and thus not be limited toflying below the base of each area.Second, a pilot may deviate 2,000 feethorizontally from the obstacle orpopulated area. FAA Advisory Circular(AC) 91–36D, Visual Flight Rules (VFR)Flight Near Noise-Sensitive Areas,recommends flights remain above 2,000feet MSL, but the AC provisions do notapply when they conflict withregulations, ATC instructions, or whena pilot believes operating below 2,000feet is necessary for the safety of theflight. The SATR area does not requirea clearance and was not conceived ordesigned to force aircraft intocircumnavigating the area but pilots cancircumnavigate the area if necessary.The area is not restrictive or prohibitiveand does not force aircraft into anunsafe operating mode. Pilots whochoose not to contact the Luke RAPCONand avoid the SATR area do sovoluntarily.The FAA received commentssuggesting changes to the boundaries,floors and ceilings of the Luke SATR.One commenter stated that the northeastcorner of the proposed SATR area islikely to cause unintentional incursionsby aircraft executing a straight-inapproach to Runway 19 at GEU. Theseapproaches typically start over theArrowhead Mall which is very close tothe northeast corner of the proposedSATR area.The FAA shares this concern andasked the USAF to reevaluate theproposed boundary in the vicinity of theArrowhead Mall. The USAF and theFAA determined that relocating theboundary would not impact the finalapproach path to runway 21 at Luke. Inthis final rule the FAA has moved theSATR boundary approximately 1 milewest of the Arrowhead Mall to protectthe straight-in approach to runway 19 atGEU. The FAA will not move theboundary 2 miles to the west, assuggested by the comment, because theairspace is necessary to protect the finalapproach path to runway 21.Another commenter suggestedeliminating the proposed SATR areaand expanding the airport traffic areaand control zone to the northwest by 5miles. The FAA does not agree. In 1993,the FAA reclassified the regulatorystructure of the National AirspaceSystem (NAS). This was done primarilyto more closely align the airspace in theUnited States along International CivilAviation Organization (ICAO)guidelines. The airspace previouslyidentified as Airport Traffic Areas andControl Zones were reclassified at thattime to Class D Airspace Areas. FAAOrder 7400.2G, Procedures for HandlingAirspace Matters, provides guidance onthe design of Class D airspacenationally. It states that vertical andlateral limits should be standardizedand shall be designed to contain IFRarrival operations. The current LukeClass D airspace area varies from 4.4miles to a 5.6 mile radius of Luke andis configured in accordance with theabove mentioned guidelines. Adding anadditional 5 miles to the existing ClassD airspace area is not supported bycurrent design criteria, and has nobearing on the scope of issues addressedby the SATR area.Another commenter stated that theFAA should establish VFR corridorsthrough the SATR area and allow pilotsin the VFR corridors to operate withoutestablishing and maintaining two-wayradio communication with the LukeRAPCON. The FAA does not agree. TheUSAF sought an improvement in airsafety when it petitioned the FAA toaddress the problem of NMACs in theproposed SATR area. The suggestionthat pilots should be allowed tocontinue their current practice of notcontacting the Luke RAPCON and notexchanging position information wouldnegate the basic purpose of the SATR,which is to require two-waycommunication with Luke RAPCON toimprove safety.Another commenter believed that thesegment of the proposed SATR areawest of DVT and north of Luke that hasa floor of 3,000′ and a ceiling of 4,000′,will encourage pilots of aircraftdeparting or arriving GEU and/or DVTto under fly or circumnavigateVerDate Nov2008 13:48 Dec 30, 2009 Jkt 220001 PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 E:\FR\FM\31DER1.SGM 31DER1increasing the concentration of traffic inthis area. He suggested raising the floorto 4,000′ and the ceiling to 5,000′ toallow aircraft to avoid the SATR area byoperating at 3,500′ and 4,500′ below it.The FAA does not agree. First, veryfew aircraft currently circumnavigatethe airspace around Luke and a largepercentage contact Luke and take part inthe flight following services offered byLuke RAPCON. Although there may bean increase in the number of aircraftthat would circumnavigate the SATR,the FAA does not expect the increase tobe significant or burdensome. Second,aircraft operators can establishcommunication and operate within theSATR rather than navigate out of theirway to avoid it. The SATR area wasdesigned to protect aircraft on aninstrument approach to Runway 21L/R.The floor of this area was designated at3,000′ which provides a 500′ bufferbetween the lowest altitude in use onthe instrument approach and anyaircraft transiting or operating justbeneath the SATR.Another commenter suggestedmodifying or eliminating the segment ofthe proposed SATR labeled West SectorNorth which has a floor of 3,000′ and aceiling of 6,000′. He stated that this areaintrudes into rising terrain in thenorthwest and would force aircraft intothe foothills if pilots are trying to underfly this area. The FAA does not agree.This area was designed to protect theLuke auxiliary field traffic pattern foraircraft conducting touch and golandings. The northwest point of thisarea is the junction of Carefree Highwayand US60. The area is remote and therewere not many landmarks that could beused as visual references. A smallportion of this area on the northern sideintrudes into rising terrain. Pilots mayavoid the rising terrain by establishingcontact with Luke RAPCON andtransiting the SATR or circumnavigatingthe area.Another commenter stated that the2,100′ floor of the SATR area just westof GYR does not allow transition foraircraft wishing to overfly GYR Class Dor aircraft departing/arriving GYRwishing to avoid the SATR area. TheFAA is establishing the 2,100′ floor toprotect Luke aircraft departing/arrivingrunway 03 L/R. Aircraft that do notwish to contact Luke RAPCON for useof the SATR area will have tocircumnavigate this area. Letters ofAgreement (LOA) will be entered intoamong Luke RAPCON and GYR, DVTand GEU Towers. The LOA will outlinespecial operating procedures to create aseamless environment for GAoperations. Departure and arrivalprocedures to and from the SATR

69276 Federal Register / Vol. 74, No. 250 / Thursday, December 31, 2009 / Rules and Regulationserowe on DSK5CLS3C1PROD with RULESboundaries and the airports, will bereferenced in the LOA. Theseprocedures will allow GA operators toproceed on course while movementinformation is passed between ATCfacilities. This will negate abruptfrequency changes and not havingenough time to establish two-waycommunication with the RAPCON priorto entering the SATR.One of the commenters wasconcerned that the SATR area wouldinfringe on, or virtually eliminate,airspace used today for GA pilottraining. That is not the case. The SATRarea does not replace, eliminate, orchange any of the existing airspacestructure or operating rules; it only addsa requirement for two-way radiocommunication with Luke RAPCONprior to entry and while in the area. TheSATR does not prohibit or restrictaircraft access for any purpose includingtransit and/or training.RAPCON Staffing and SATR AreaHours of OperationSeveral commenters addressedRAPCON staffing, communicationcoverage and access to the area. TheAPA and others do not believe that LukeRAPCON can maintain adequate staffingto provide communication coverageand, as a result, GA aircraft will bedenied access to the area. AOPA, APAand other commenters were concernedabout frequency congestions and onecommenter stated that during periods ofpeak traffic, Luke RAPCON may not beable to immediately respond to aircraftwishing to establish two-way radiocontact for entry into the SATR area,thereby denying aircraft access to thearea. Another commenter said that Lukeradio coverage may not be sufficient forall the airspace encompassed by theSATR area; especially the Luke ATIS.The FAA does not agree. Staffing andequipment resources are already inplace to support the Luke SATR area.Staffing and equipment levels areadequate to provide all services withoutimpacting safety or efficiency and theUSAF and the FAA do not expectstaffing to be an issue for Luke. LOAsand procedures will be developed tooperate the Luke SATR efficiently.However, should circumstances arisethat indicate a need for additionalresources, action will be taken to obtainthem.The ability to provide any ATCservice is limited by many factors, suchas the volume of traffic, frequency ofcongestion, controller workload, orother higher priority duties that may notbe apparent to a pilot requesting accessto the SATR area. Aircraft attempting toestablish two-way radio contact withATC for entry into the SATR area willbe handled on a first-come, first-servebasis and as quickly as the controllercan safely provide the service. Currentlya large percentage of VFR operatorscontact Luke and exchange positioninformation. Though there may be anincrease in the number of aircraftestablishing communication, the FAAdoes not expect the increase to besignificant.FAA’s ATC experience has been thatfrequency congestion does occur at peakdemand periods at most major airports.When such congestion occurs, resourceadjustments are made on-site. Suchadjustments include resectoring andassigning selected personnel. The USAFrecognizes the potential exists for a needto establish additional controllerpositions if delays during peak demandbecome a problem, and will respondaccordingly.Luke’s existing radio coverage issufficient to cover the area defined inthe SATR including the ATIS. TheUSAF has installed additionaltransceivers on the White TankMountains radio relay site that enhancethe current radio coverage on theexisting frequencies due to the heightand placement of the new transceivers.Some commenters stated that theoperating rules for the SATR were notclearly defined in the NPRM. Theyrequested clarification about whether aclearance from Luke was required, andif separation services, includingassigned headings, would be providedto GA aircraft. Further, they asked ifroutine traffic advisories would begiven, and if a transponder wasrequired.As stated in the NPRM and final rule,an air traffic clearance is not required tooperate in the SATR area. The final rulerequires pilots to establish two-wayradio communication with LukeRAPCON prior to entering the SATRarea, and to maintain communicationwhile operating in the area. Once twowaycommunication is established,flight following service is availableupon request from Luke RAPCON.Pilots of those aircraft not equippedwith radios, or with inoperable radios,can make advance arrangements withthe Luke RAPCON to coordinate transitthrough the area. The USAF requiresuse of flight following service formilitary aircraft. The FAA recommendsuse of flight following services by GA.Those aircraft participating in flightfollowing services are provided trafficadvisory service as they transition thearea. Separation services and headingswill not be provided, and this rule doesnot change the current transponderrequirements in 14 CFR 91.215.VerDate Nov2008 13:48 Dec 30, 2009 Jkt 220001 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\31DER1.SGM 31DER1Commenters had concerns about theLuke SATR’s hours of operation. Onestated that the proposed hours ofoperation were not clear. Anotherobserved that the Luke RAPCON couldopen and close for just one flight andasked whether the SATR would beactivated for that situation. Anothernoticed that the SATR was not active atnight. Others were concerned aboutaccess to the SATR area when the LukeRAPCON is not open.The NPRM and the final rule bothstate the Luke SATR is designatedduring official daylight hours Mondaythrough Friday, during flight trainingoperations. The area may be activated atother times by NOTAM when necessaryto support Luke flight training. Status ofLuke flight training activities will bebroadcast on Luke, DVT, GYR, and GEUlocal ATIS frequencies. The Luke ATISalso can be contacted via a localtelephone call. Luke does occasionallyopen outside of normal hours to handleVIP or other transient aircraftmovement, but the SATR area will notbe activated routinely for those limitedsituations.The SATR area is not necessaryduring nighttime operations primarilyfor three reasons. First, Luke’s primaryauxiliary airfield is closed at nightwhich significantly reduces the numberof F–16 aircraft transitioning betweenthe auxiliary field and Luke. Second,aircraft are more easily visible at greaterdistances at night, thereby allowingpilots more reasonable reaction time forconflict avoidance with highperformance aircraft. Third, the SATRarea would be extremely difficult tonavigate at night when visual landmarksare either not visible or not easilydistinguishable. Therefore, whenlimited Luke flight training activities areconducted at night the SATR will not beactive and GA pilots will have access tothe area without a requirement tocommunicate with the Luke RAPCON.GlidersPilots from the glider communityexpressed concern that their operationswould be unfairly impacted. They statedthat it was not clear that sailplaneswithout transponders would be able tooperate within the SATR area.The FAA agrees that clarificationabout glider operations is needed. Inthat regard, the USAF has worked withthe glider community to address theiroperational concerns. The USAF metwith the Pleasant Valley SailplaneAssociation (PVSA) personnel todiscuss the glider community concerns.The USAF and the PVSA agreed to enterinto an LOA covering glider operation toallow glider operations to continue. The

69278 Federal Register / Vol. 74, No. 250 / Thursday, December 31, 2009 / Rules and Regulationserowe on DSK5CLS3C1PROD with RULESConsumer Price Index for all UrbanConsumers (CPI–U) as published by theBureau of Labor Statistics, is $136.1million. This final rule does not containsuch a mandate. The requirements ofTitle II do not apply.Executive Order 13132, FederalismThe FAA has analyzed this final ruleunder the principles and criteria ofExecutive Order 13132, Federalism. Wedetermined that this action will nothave a substantial direct effect on theStates, or the relationship between theFederal Government and the States, oron the distribution of power andresponsibilities among the variouslevels of government, and, therefore,does not have federalism implications.Environmental AnalysisFAA Order 1050.1E identifies FAAactions that are categorically excludedfrom preparation of an environmentalassessment or environmental impactstatement under the NationalEnvironmental Policy Act (NEPA) in theabsence of extraordinary circumstances.The FAA has determined this proposedrulemaking action qualifies for thecategorical exclusion identified inparagraph 312f and involves noextraordinary circumstances.Regulations That Significantly AffectEnergy Supply, Distribution, or UseThe FAA analyzed this final ruleunder Executive Order 13211, ActionsConcerning Regulations thatSignificantly Affect Energy Supply,Distribution, or Use (May 18, 2001). Wehave determined that it is not a‘‘significant energy action’’ under theexecutive order because it is not a‘‘significant regulatory action’’ and isnot likely to have a significant adverseeffect on the supply, distribution, or useof energy.Availability of Rulemaking DocumentsYou can get an electronic copy ofrulemaking documents using theInternet by—1. Searching the Federal eRulemakingPortal (http://www.regulations.gov);2. Visiting the FAA’s Regulations andPolicies Web page at http://www.faa.gov/regulations_policies/ or3. Accessing the Government PrintingOffice’s Web page at http://www.gpoaccess.gov/fr/index.html.You can also get a copy by sending arequest to the Federal AviationAdministration, Office of Rulemaking,ARM–1, 800 Independence Avenue,SW., Washington, DC 20591, or bycalling (202) 267–9680. Make sure toidentify the amendment number ordocket number of this rulemaking.Anyone is able to search theelectronic form of all commentsreceived into any of our dockets by thename of the individual submitting thecomment (or signing the comment, ifsubmitted on behalf of an association,business, labor union, etc.). You mayreview DOT’s complete Privacy Actstatement in the Federal Registerpublished on April 11, 2000 (Volume65, Number 70; Pages 19477–78) or youmay visit http://DocketsInfo.dot.gov.Small Business Regulatory EnforcementFairness ActThe Small Business RegulatoryEnforcement Fairness Act (SBREFA) of1996 requires FAA to comply withsmall entity requests for information oradvice about compliance with statutesand regulations within its jurisdiction. Ifyou are a small entity and you have aquestion regarding this document, youmay contact your local FAA official, orthe person listed under the FOR FURTHERINFORMATION CONTACT heading at thebeginning of the preamble. You can findout more about SBREFA on the Internetat http://www.faa.gov/regulations_policies/rulemaking/sbre_act/.List of Subjects in 14 CFR Part 93Air Traffic Control, Airports, Alaska,Navigation, Reporting andrecordkeeping requirements.The Amendment■ In consideration of the foregoing, theFederal Aviation Administrationamends Chapter I of Title 14, Code ofFederal Regulations, as follows:PART 93—SPECIAL AIR TRAFFICRULES■ 1. The authority citation for part 93continues to read as follows:Authority: 49 U.S.C. 106(g), 40103, 40106,40109, 40113, 44502, 44514, 44701, 44719,46301.■ 2. Add Subpart O to part 93 to readas follows:Subpart O—Special Flight Rules in theVicinity of Luke AFB, AZSec.93.175 Applicability.93.176 Description of area.93.177 Operations in the Special Air TrafficRule Area.Subpart O—Special Flight Rules in theVicinity of Luke AFB, AZ§ 93.175 Applicability.This subpart prescribes a Special AirTraffic Rule for aircraft conducting VFRoperations in the vicinity of Luke AirForce Base, AZ.VerDate Nov2008 13:48 Dec 30, 2009 Jkt 220001 PO 00000 Frm 00036 Fmt 4700 Sfmt 4700 E:\FR\FM\31DER1.SGM 31DER1§ 93.176 Description of area.The Luke Air Force Base, ArizonaTerminal Area is designated duringofficial daylight hours Monday throughFriday while Luke pilot flight training isunderway, as broadcast on the localAutomatic Terminal InformationService (ATIS), and other times byNotice to Airmen (NOTAM), as follows:(a) East Sector:(1) South section includes airspaceextending from 3,000 feet MSL to thebase of the overlaying Phoenix Class Bairspace bounded by a line beginning at:Lat. 33°23′56″ N; Long. 112°28′37″ W; toLat. 33°22′32″ N; Long. 112°37′14″ W; toLat. 33°25′39″ N; Long. 112°37′29″ W; toLat. 33°31′55″ N; Long. 112°30′32″ W; toLat. 33°28′00″ N; Long. 112°28′41″ W; topoint of beginning.(2) South section lower includesairspace extending from 2,100 feet MSLto the base of the overlaying PhoenixClass B airspace, excluding the LukeClass D airspace area bounded by a linebeginning at: Lat. 33°28′00″ N; Long.112°28′41″ W; to Lat. 33°23′56″ N; Long.112°28′37″ W; to Lat. 33°27′53″ N; Long.112°24′12″ W; to point of beginning.(3) Center section includes airspaceextending from surface to the base of theoverlaying Phoenix Class B airspace,excluding the Luke Class D airspacearea bounded by a line beginning at: Lat.33°42′22″ N; Long. 112°19′16″ W; to Lat.33°38′40″ N; Long. 112°14′03″ W; to Lat.33°27′53″ N; Long. 112°24′12″ W; to Lat.33°28′00″ N; Long. 112°28′41″ W; to Lat.33°31′55″ N; Long. 112°30′32″ W; topoint of beginning.(4) The north section includes thatairspace extending upward from 3,000feet MSL to 4,000 feet MSL, bounded bya line beginning at: Lat. 33°42′22″ N;Long. 112°19′16″ W; to Lat. 33°46′58″ N;Long. 112°16′41″ W; to Lat. 33°44′48″ N;Long. 112°10′59″ W; to Lat. 33°38′40″ N;Long. 112°14′03″ W; to point ofbeginning.(b) West Sector:(1) The north section includes thatairspace extending upward from 3,000feet MSL to 6,000 feet MSL, bounded bya line beginning at: Lat. 33°51′52″ N;Long. 112°37′54″ W; to Lat. 33°49′34″ N;Long. 112°23′34″ W; to Lat. 33°46′58″ N;Long. 112°16′41″ W; to Lat. 33°42′22″ N;Long. 112°19′16″ W; to Lat. 33°39′27″ N;Long. 112°22′27″ W; to point ofbeginning.(2) The south section includes thatairspace extending upward from thesurface to 6,000 feet MSL, bounded bya line beginning at: Lat. 33°39′27″ N;Long. 112°22′27″ W; to Lat. 33°38′06″ N;Long. 112°23′51″ W; to Lat. 33°38′07″ N;Long. 112°28′50″ W; to Lat. 33°39′34″ N;Long. 112°31′39″ W; to Lat. 33°39′32″ N;Long. 112°37′36″ W; to Lat. 33°51′52″ N;

Federal Register / Vol. 74, No. 250 / Thursday, December 31, 2009 / Rules and Regulations69279erowe on DSK5CLS3C1PROD with RULESLong. 112°37′54″ W; to point ofbeginning.§ 93.177 Operations in the Special AirTraffic Rule Area.(a) Unless otherwise authorized byAir Traffic Control (ATC), no personmay operate an aircraft in flight withinthe Luke Terminal Area designated in§ 93.176 unless—(1) Before operating within the LukeTerminal area, that person establishesradio contact with the Luke RAPCON;and(2) That person maintains two-wayradio communication with the LukeRAPCON or an appropriate ATC facilitywhile within the designated area.(b) Requests for deviation from theprovisions of this section apply only toaircraft not equipped with anoperational radio. The request must besubmitted at least 24 hours before theproposed operation to Luke RAPCON.Issued in Washington, DC, on December18, 2009.J. Randolph Babbitt,Administrator.[FR Doc. E9–30938 Filed 12–30–09; 8:45 am]BILLING CODE 4910–13–PCOMMODITY FUTURES TRADINGCOMMISSION17 CFR Part 1RIN 3038–AC66Revised Adjusted Net CapitalRequirements for Futures CommissionMerchants and Introducing BrokersAGENCY: Commodity Futures TradingCommission.ACTION: Final rules.SUMMARY: The Commodity FuturesTrading Commission (‘‘Commission’’) isamending its regulations that prescribeminimum adjusted net capitalrequirements for futures commissionmerchants (‘‘FCMs’’) and introducingbrokers (‘‘IBs’’). The amendments:increase the required minimum dollaramount of adjusted net capital that anIB must maintain from $30,000 to$45,000; increase the required minimumdollar amount of adjusted net capitalthat an FCM must maintain from$250,000 to $1,000,000; amend thecomputation of an FCM’s margin-basedminimum adjusted net capitalrequirement to incorporate into thecalculation customer and noncustomerpositions in over-the-counter derivativeinstruments that are submitted forclearing by the FCM to derivativesclearing organizations (‘‘DCOs’’) or otherclearing organizations (‘‘cleared OTCderivative positions’’); specify capitaldeductions for FCM proprietary clearedOTC derivative positions based on thedeductions required by theCommission’s regulations for FCMproprietary positions in exchangetradedfutures contracts and optionscontracts; and amend the FCM capitalcomputation to increase the applicablepercentage of the total margin-basedrequirement for futures, options andcleared OTC derivative positions innoncustomer accounts to eight percent.DATES: Effective March 31, 2010.FOR FURTHER INFORMATION CONTACT:Thelma Diaz, Associate Director,Division of Clearing and IntermediaryOversight, 1155 21st Street, NW.,Washington, DC 20581. Telephonenumber: 202–418–5137; facsimilenumber: 202–418–5547; and electronicmail: tdiaz@cftc.gov or Mark Bretscher,Attorney-Advisor, Division of Clearingand Intermediary Oversight, CommodityFutures Trading Commission, 525 W.Monroe, Suite 1100, Chicago, Illinois60661. Telephone number: 312–596–0529; facsimile number: 312–596–0714;and electronic mail:mbretscher@cftc.gov.SUPPLEMENTARY INFORMATION:I. BackgroundOn May 7, 2009, the Commissionpublished in the Federal Register forpublic comment proposed amendmentsto the minimum financial requirementsapplicable to FCMs and IBs (‘‘ProposingRelease). 1 As noted in the ProposingRelease, Section 4f(b) of the CommodityExchange Act (‘‘Act’’) provides thatFCMs and IBs must meet suchminimum financial requirements as theCommission may prescribe to insurethat FCMs and IBs meet theirobligations as registrants. 2 FCMs aresubject to greater capital requirementsthan IBs because the Act permits FCMs,but not IBs, to hold funds of customerstrading on designated contract marketsand to clear such customer positionswith a DCO. CFTC Regulation 1.17currently requires IBs and FCMs tomaintain adjusted net capital of $30,000and $250,000 respectively, or tomaintain some greater amount asdetermined under other calculationsrequired by the regulation. 3Specifically, Commission Regulation1.17(a)(1)(iii) requires that IBs maintain1 74 FR 21290 (May 7, 2009). Copies of theProposing Release and the comment letters receivedby the Commission are also available on theCommission’s Web site at http://www.cftc.gov.2 The Act is codified at 7 U.S.C. 1 et seq.3 The Commission regulations cited herein maybe found at 17 CFR Ch. I (2009).VerDate Nov2008 13:48 Dec 30, 2009 Jkt 220001 PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 E:\FR\FM\31DER1.SGM 31DER1adjusted net capital in an amount thatequals or exceeds the greatest of:$30,000; the amount of adjusted netcapital required by a registered futuresassociation of which the IB is a member;or, if the FCM is also a securities brokerand dealer registered with the U.S.Securities and Exchange Commission(‘‘SEC’’), the amount of net capitalrequired by SEC Rule 15c3–1(a), 17 CFR§ 240.15c3–1(a). Regulation 1.17(a)(1)(i)requires FCMs to maintain adjusted netcapital equal to or in excess of thegreatest of: $250,000; the FCM’s marginbasedor ‘‘risk-based’’ capitalrequirement, which is determined byadding together eight percent of the totalrisk margin requirement for positions incustomer accounts, plus four percent ofthe total risk margin requirement forpositions carried in noncustomeraccounts; the amount of adjusted netcapital required by a registered futuresassociation of which the FCM is amember; or, for an FCM also registeredwith the SEC as securities broker anddealer, the amount of net capitalrequired by SEC Rule 15c3–1(a).As described in the ProposingRelease, the Commission proposedseveral amendments to Regulation1.17(a) that generally would increase theadjusted net capital requirements ofFCMs and IBs. The comment periodclosed 60 days after publication in theFederal Register of the ProposingRelease, during which nine commentletters were received. Responses weresubmitted by Mindy Yost (‘‘Yost’’), anindividual non-registrant; NewedgeUSA, LLC (‘‘Newedge’’), an FCM/broker-dealer; MF Global, Inc. (‘‘MFGlobal’’), an FCM; R.J. O’Brien &Associates, LLC (‘‘RJO’’), an FCM;FCStone, LLC (‘‘FC Stone’’), an FCM;the Securities Industry and FinancialMarkets Association (‘‘SIFMA’’); CMEGroup, Inc. (‘‘CME’’); the FuturesIndustry Association (‘‘FIA’’); and theNational Futures Association (‘‘NFA’’).The concerns and suggestions of each ofthe commenters are addressed below, inconnection with the description of theamendments being adopted by theCommission. 44 The Proposing Release also included a querysoliciting comment on a topic for which noamendments to Commission regulations have yetbeen proposed. Specifically, the Commission askedfor comment on the advisability of expanding ANCrequirements for FCMs that are also securitiesbrokers and dealers, by increasing their ANC by theamount of net capital required by SEC Rule 15c3–1(a). No commenter supported this potentialrevision of FCM/BD capital requirements.