Airworthiness Directives; Airbus SAS Airplanes

• Published date: 09 April 2020
• Citation: 85 FR 19875
• Record Number: 2020-07399
• Section: Rules and Regulations
• Court: Federal Aviation Administration

This section of the FEDERAL REGISTER

contains regulatory documents having general

applicability and legal effect, most of which

are keyed to and codified in the Code of

Federal Regulations, which is published under

50 titles pursuant to 44 U.S.C. 1510.

The Code of Federal Regulations is sold by

the Superintendent of Documents.

Rules and Regulations Federal Register

19875

Vol. 85, No. 69

Thursday, April 9, 2020

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

14 CFR Part 39

[Docket No. FAA–2019–0867; Product

Identifier 2019–NM–131–AD; Amendment

39–19886; AD 2020–06–17]

RIN 2120–AA64

Airworthiness Directives; Airbus SAS

Airplanes

AGENCY

: Federal Aviation

Administration (FAA), Department of

Transportation (DOT).

ACTION

: Final rule.

SUMMARY

: The FAA is superseding

Airworthiness Directive (AD) 2011–09–

06, which applied to all Airbus SAS

Model A330–200 Freighter series

airplanes; Model A330–200 and –300

series airplanes; and Model A340–200

and –300 series airplanes. AD 2011–09–

06 required repetitive inspections and

operational checks of the spring

function of the emergency exit door

slider mechanism, application of

corrosion inhibitor, and corrective

actions. This AD retains those

requirements, with extended repetitive

intervals for certain actions, and also

requires those actions on additional

airplanes; as specified in a European

Union Aviation Safety Agency (EASA)

AD, which is incorporated by reference.

This AD was prompted by report that an

escape slide deployment test found a

girt bar that was not in a locked position

and was detached from the airplane.

The FAA is issuing this AD to address

the unsafe condition on these products.

DATES

: This AD is effective May 14,

2020.

The Director of the Federal Register

approved the incorporation by reference

of a certain publication listed in this AD

as of May 14, 2020.

ADDRESSES

: For the material

incorporated by reference (IBR) in this

AD, contact the EASA, Konrad-

Adenauer-Ufer 3, 50668 Cologne,

Germany; telephone +49 221 89990

1000; email ADs@easa.europa.eu;

internet www.easa.europa.eu. You may

find this IBR material on the EASA

website at https://ad.easa.europa.eu.

You may view this IBR material at the

FAA, Transport Standards Branch, 2200

South 216th St., Des Moines, WA. For

information on the availability of this

material at the FAA, call 206–231–3195.

It is also available in the AD docket on

the internet at https://

www.regulations.gov by searching for

and locating Docket No. FAA–2019–

0867.

Examining the AD Docket

You may examine the AD docket on

the internet at https://

www.regulations.gov by searching for

and locating Docket No. FAA–2019–

0867; or in person at Docket Operations

between 9 a.m. and 5 p.m., Monday

through Friday, except Federal holidays.

The AD docket contains this final rule,

the regulatory evaluation, any

comments received, and other

information. The address for Docket

Operations is U.S. Department of

Transportation, Docket Operations,

M–30, West Building Ground Floor,

Room W12–140, 1200 New Jersey

Avenue SE, Washington, DC 20590.

FOR FURTHER INFORMATION CONTACT

:

Vladimir Ulyanov, Aerospace Engineer,

International Section, Transport

Standards Branch, FAA, 2200 South

216th St., Des Moines, WA 98198;

telephone and fax 206–231–3229; email

vladimir.ulyanov@faa.gov.

SUPPLEMENTARY INFORMATION

:

Discussion

The EASA, which is the Technical

Agent for the Member States of the

European Union, has issued EASA AD

2019–0155, dated July 3, 2019 (‘‘EASA

AD 2019–0155’’) (also referred to as the

Mandatory Continuing Airworthiness

Information, or ‘‘the MCAI’’), to correct

an unsafe condition for all Airbus SAS

Model A330–200 Freighter series

airplanes; Model A330–200, –300, and

–900 series airplanes; and Model A340–

200, –300, –500, and –600 series

airplanes.

The FAA issued a notice of proposed

rulemaking (NPRM) to amend 14 CFR

part 39 to supersede AD 2011–09–06,

Amendment 39–16668 (76 FR 22005,

April 20, 2011) (‘‘AD 2011–09–06’’). AD

2011–09–06 applied to all Airbus SAS

Model A330–200 Freighter series

airplanes; Model A330–200, and –300

series airplanes; and Model A340–200,

and –300 series airplanes. The NPRM

published in the Federal Register on

November 18, 2019 (84 FR 63582). The

NPRM was prompted by a report that an

escape slide deployment test found a

girt bar that was not in a locked position

and was detached from the airplane.

The NPRM was also prompted by a

determination that additional airplanes

are affected by the unsafe condition, and

that the repetitive interval times can be

extended. The NPRM proposed to

continue to require repetitive

inspections and operational checks,

application of corrosion inhibitor, and

repair or replacement if necessary, with

extended repetitive intervals for the

functional check and lubrication of the

door girt bar slider of each passenger/

crew door and passenger compartment

emergency exit. The NPRM also

proposed to revise the applicability to

include additional airplanes. The FAA

is issuing this AD to address this

condition, which could result in escape

slides detaching from the door after

inflation, and which could, during an

emergency, prevent a safe evacuation of

the cabin and possibly result in injuries.

Comments

The FAA gave the public the

opportunity to participate in developing

this final rule. The following presents

the comments received on the NPRM

and the FAA’s response to each

comment.

Request To Clarify Credit for Actions

Delta Air Lines (Delta) requested

clarification on credit for actions that

were accomplished using Airbus Alert

Operators Transmission (AOT) A330–

52A3063, dated August 2, 2000, before

the effective date of EASA 2010–0135,

dated July 5, 2010 (‘‘EASA AD 2010–

0135’’). Delta noted that EASA AD

2019–0155 specifies credit if Airbus

AOT A330–52A3063, dated August 2,

2000, was used before ‘‘July 17, 2010’’

(which was incorrectly identified as the

effective date of the superseded EASA

AD 2010–0135; the correct effective date

is July 19, 2010). AD 2011–09–06, with

an effective date of May 5, 2011,

corresponds to EASA AD 2010–0135.

Paragraph (h) of the proposed AD did

not provide an exception to use May 5,

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Federal Register / Vol. 85, No. 69 / Thursday, April 9, 2020 / Rules and Regulations

2011, as the effective date, and Delta

requested confirmation that credit is

still provided for use of Airbus AOT

A330–52A3063, dated August 2, 2000,

before the effective date of EASA AD

2010–0135.

The FAA agrees to clarify when

Airbus AOT A330–52A3063, dated

August 2, 2000, is acceptable for credit.

Although AD 2011–09–06 did not

provide any credit for Airbus AOT

A330–52A3063, dated August 2, 2000,

the FAA has determined that use of that

AOT is acceptable up to May 5, 2011.

The FAA has added paragraph (h)(4) of

this AD to provide an exception to

EASA AD 2019–0155 to allow credit for

Airbus AOT A330–52A3063, dated

August 2, 2000, using the FAA AD

2011–09–06 effective date of May 5,

2011 for the initial inspection only.

Request To Clarify Need for an

Alternative Means of Compliance

(AMOC)

Delta requested that the FAA clarify

whether an alternative means of

compliance (AMOC) for previous credits

would be required for allowing any

repetitive inspections that may have

been accomplished before the effective

date of EASA AD 2010–0135 using

Airbus AOT A330–52A3063, dated

August 2, 2000. Delta stated that AD

2002–02–07, Amendment 39–12635 (67

FR 6370, February 12, 2002) (‘‘AD 2002–

02–07’’), required using Airbus AOT

A330–52A3063, dated August 2, 2000,

to accomplish the inspection

requirements, and then AD 2011–09–06

required Airbus AOT A330–52A3063,

Revision 01, dated January 3, 2001.

Delta reasoned that given the time span

between the effective dates of AD 2002–

02–07 and AD 2011–09–06, and because

EASA AD 2019–0155 granted credit for

only initial inspections, it would be

possible that an operator would be

doing repetitive inspections using

Airbus AOT A330–52A3063, dated

August 2, 2000, and would need an

AMOC for the repetitive inspections.

The FAA agrees that clarification is

needed. ADs 2002–02–07 and 2011–09–

06 did not require use of or grant credit

for Airbus AOT A330–52A3063, dated

August 2, 2000, for any actions. Unless

an AMOC has been approved, all

inspections, initial and repetitive,

required by AD 2002–02–07 and, later,

AD 2011–09–06, on U.S.-registered

airplanes should have been

accomplished using Airbus AOT A330–

52A3063, Revision 01, dated January 3,

2001, and would be subject to using

Revision 01 for repetitive inspections.

However, EASA AD 2019–0155 granted

credit for using Airbus AOT A330–

52A3063, dated August 2, 2000, before

its effective date for initial inspections,

and as described in the previous

comment, the FAA concurred and is

granting credit similar to EASA AD

2019–0155. However, repetitive

inspections were and are still required

to be done in accordance with Airbus

AOT A330–52A3063, Revision 01, dated

January 3, 2001. The FAA has not

otherwise changed this AD in that

regard.

Additional Change to This Final Rule

The FAA has revised paragraph (j) of

this AD to specify that AMOCs

approved previously for AD 2011–09–06

are approved as AMOCs for the

corresponding provisions of EASA AD

2019–0155 that are required by

paragraph (g) of this AD. This provision

was inadvertently left out of the

proposed AD.

Conclusion

The FAA reviewed the relevant data,

considered the comments received, and

determined that air safety and the

public interest require adopting this

final rule with the changes described

previously and minor editorial changes.

The FAA has determined that these

minor changes:

•Are consistent with the intent that

was proposed in the NPRM for

addressing the unsafe condition; and

•Do not add any additional burden

upon the public than was already

proposed in the NPRM.

The FAA also determined that these

changes will not increase the economic

burden on any operator or increase the

scope of this final rule.

Related IBR Material Under 1 CFR Part

51

EASA AD 2019–0155 describes

procedures for repetitive functional

checks and lubrication of the door girt

bar slider of each passenger/crew door

and passenger compartment emergency

exit, and corrective actions (repair or

replacement). This material is

reasonably available because the

interested parties have access to it

through their normal course of business

or by the means identified in the

ADDRESSES

section.

Costs of Compliance

The FAA estimates that this AD

affects 111 airplanes of U.S. registry.

The FAA estimates the following

costs to comply with this AD:

E

STIMATED

C

OSTS FOR

R

EQUIRED

A

CTIONS

Action Labor cost Parts cost Cost per

product Cost on U.S.

operators

Retained actions from AD 2011–09–06 ............................ 3 work-hours × $85 per hour

= $255. None ............. $255 Up to $28,305.

New actions ....................................................................... 2 work-hours × $85 per hour

= $170. None ............. $170 $18,870.

The FAA estimates the following

costs to do any necessary on-condition

action that would be required based on

the results of any required actions. The

FAA has no way of determining the number of aircraft that might need this

on-condition action:

E

STIMATED

C

OSTS OF

O

N

-C

ONDITION

A

CTIONS

Labor cost Parts cost Cost per

product

1 work-hour × $85 per hour = $85 per girt bar replacement .................................................................................. $2,160 $2,245

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Federal Register / Vol. 85, No. 69 / Thursday, April 9, 2020 / Rules and Regulations

Authority for This Rulemaking

Title 49 of the United States Code

specifies the FAA’s authority to issue

rules on aviation safety. Subtitle I,

section 106, describes the authority of

the FAA Administrator. Subtitle VII:

Aviation Programs, describes in more

detail the scope of the Agency’s

authority.

The FAA is issuing this rulemaking

under the authority described in

Subtitle VII, Part A, Subpart III, Section

44701: ‘‘General requirements.’’ Under

that section, Congress charges the FAA

with promoting safe flight of civil

aircraft in air commerce by prescribing

regulations for practices, methods, and

procedures the Administrator finds

necessary for safety in air commerce.

This regulation is within the scope of

that authority because it addresses an

unsafe condition that is likely to exist or

develop on products identified in this

rulemaking action.

Regulatory Findings

This AD will not have federalism

implications under Executive Order

13132. This AD will not have a

substantial direct effect on the States, on

the relationship between the national

government and the States, or on the

distribution of power and

responsibilities among the various

levels of government.

For the reasons discussed above, I

certify that this AD:

(1) Is not a ‘‘significant regulatory

action’’ under Executive Order 12866,

(2) Will not affect intrastate aviation

in Alaska, and

(3) Will not have a significant

economic impact, positive or negative,

on a substantial number of small entities

under the criteria of the Regulatory

Flexibility Act.

List of Subjects in 14 CFR Part 39

Air transportation, Aircraft, Aviation

safety, Incorporation by reference,

Safety.

Adoption of the Amendment

Accordingly, under the authority

delegated to me by the Administrator,

the FAA amends 14 CFR part 39 as

follows:

PART 39—AIRWORTHINESS

DIRECTIVES

■1. The authority citation for part 39

continues to read as follows:

Authority: 49 U.S.C. 106(g), 40113, 44701.

§ 39.13 [Amended]

■2. The FAA amends § 39.13 by

removing Airworthiness Directive (AD)

2011–09–06, Amendment 39–16668 (76

FR 22005, April 20, 2011), and adding

the following new AD:

2020–06–17 Airbus SAS: Amendment 39–

19886; Docket No. FAA–2019–0867;

Product Identifier 2019–NM–131–AD.

(a) Effective Date

This AD is effective May 14, 2020.

(b) Affected ADs

This AD replaces AD 2011–09–06,

Amendment 39–16668 (76 FR 22005, April

20, 2011) (‘‘AD 2011–09–06’’).

(c) Applicability

This AD applies to the Airbus SAS Model

airplanes identified in paragraphs (c)(1)

through (7) of this AD, certificated in any

category, all manufacturer serial numbers.

(1) Model A330–223F and –243F airplanes.

(2) Model A330–201, –202, –203, –223, and

–243 airplanes.

(3) Model A330–301, –302, –303, –321,

–322, –323, –341, –342, and –343 airplanes.

(4) Model A330–941 airplanes.

(5) Model A340–211, –212, and –213

airplanes.

(6) Model A340–311, –312, and –313

airplanes.

(7) Model A340–541 and –642 airplanes.

(d) Subject

Air Transport Association (ATA) of

America Code 52, Doors.

(e) Reason

This AD was prompted by a report that an

escape slide deployment test found a girt bar

that was not in a locked position and was

detached from the airplane. This AD was also

prompted by a determination that additional

airplanes not identified in AD 2011–09–06

are affected by the unsafe condition. The

FAA is issuing this AD to address this

condition, which could result in slides

detaching from the door after inflation, and

could, during an emergency, prevent a safe

evacuation of the cabin and possibly result in

injuries.

(f) Compliance

Comply with this AD within the

compliance times specified, unless already

done.

(g) Requirements

Except as specified in paragraph (h) of this

AD: Comply with all required actions and

compliance times specified in, and in

accordance with, European Union Aviation

Safety Agency (EASA) AD 2019–0155, dated

July 3, 2019 (‘‘EASA AD 2019–0155’’).

(h) Exceptions to EASA AD 2019–0155

(1) Where EASA AD 2019–0155 refers to its

effective date, this AD requires using the

effective date of this AD.

(2) Where paragraph (1) of EASA AD 2019–

0155 refers to February 17, 2001, as an

effective date, this AD requires using March

19, 2002 (the effective date of AD 2002–02–

07, Amendment 39–12635 (67 FR 6370,

February 12, 2002)), for all airplanes

identified in paragraph (1) of EASA AD

2019–0155, except for Model A330–223F and

–243F airplanes. For Model A330–223F and

–243F airplanes, use May 5, 2011 (the

effective date of AD 2011–09–06).

(3) The ‘‘Remarks’’ section of EASA AD

2019–0155 does not apply to this AD.

(4) Where paragraph (4) of EASA AD 2019–

0155 refers to ‘‘July 17, 2010’’ as an effective

date, this AD requires using May 5, 2011 (the

effective date of AD 2011–09–06).

Note 1 to paragraph (h)(4): A typographical

error in EASA AD 2019–0155 incorrectly

identified the effective date of EASA AD

2010–0135 as July 17, 2010; the correct

effective date of EASA AD 2010–0135 is July

19, 2010.

(i) No Reporting Requirement

Although the service information

referenced in EASA AD 2019–0155 specifies

to submit certain information to the

manufacturer, this AD does not include that

requirement.

(j) Other FAA AD Provisions

The following provisions also apply to this

AD:

(1) Alternative Methods of Compliance

(AMOCs): The Manager, International

Section, Transport Standards Branch, FAA,

has the authority to approve AMOCs for this

AD, if requested using the procedures found

in 14 CFR 39.19. In accordance with 14 CFR

39.19, send your request to your principal

inspector or local Flight Standards District

Office, as appropriate. If sending information

directly to the International Section, send it

to the attention of the person identified in

paragraph (k) of this AD. Information may be

emailed to 9-ANM-116-AMOC-REQUESTS@

faa.gov.

(i) Before using any approved AMOC,

notify your appropriate principal inspector,

or lacking a principal inspector, the manager

of the local flight standards district office/

certificate holding district office.

(ii) AMOCs approved previously for AD

2011–09–06 are approved as AMOCs for the

corresponding provisions of EASA AD 2019–

0155 that are required by paragraph (g) of this

AD.

(2) Contacting the Manufacturer: For any

requirement in this AD to obtain instructions

from a manufacturer, the instructions must

be accomplished using a method approved

by the Manager, International Section,

Transport Standards Branch, FAA; or EASA;

or Airbus SAS’s EASA Design Organization

Approval (DOA). If approved by the DOA,

the approval must include the DOA-

authorized signature.

(3) Required for Compliance (RC): For any

service information referenced in EASA AD

2019–0155 that contains RC procedures and

tests: Except as required by paragraphs (i)

and (j)(2) of this AD, RC procedures and tests

must be done to comply with this AD; any

procedures or tests that are not identified as

RC are recommended. Those procedures and

tests that are not identified as RC may be

deviated from using accepted methods in

accordance with the operator’s maintenance

or inspection program without obtaining

approval of an AMOC, provided the

procedures and tests identified as RC can be

done and the airplane can be put back in an

airworthy condition. Any substitutions or

changes to procedures or tests identified as

RC require approval of an AMOC.

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Federal Register / Vol. 85, No. 69 / Thursday, April 9, 2020 / Rules and Regulations

1

7 U.S.C. 1 et seq.

2

For the definition of swap, see section 1a(47) of

the CEA and Commission regulation 1.3. 7 U.S.C.

1a(47) and 17 CFR 1.3. The term ‘‘swap’’ includes,

among other things, an interest rate swap,

commodity swap, credit default swap, and currency

swap.

3

See 7 U.S.C. 6s(e)(1)(B). SDs and MSPs for

which there is a Prudential Regulator must meet the

margin requirements for uncleared swaps

established by the applicable Prudential Regulator.

7 U.S.C. 6s(e)(1)(A). See also 7 U.S.C. 1a(39)

(defining the term ‘‘Prudential Regulator’’ to mean

the Board of Governors of the Federal Reserve

System; the Office of the Comptroller of the

Currency; the Federal Deposit Insurance

Corporation; the Farm Credit Administration; and

the Federal Housing Finance Agency). The

definition further specifies the entities for which

these agencies act as Prudential Regulators. The

Prudential Regulators published final margin

requirements in November 2015. See Margin and

Capital Requirements for Covered Swap Entities, 80

FR 74840 (Nov. 30, 2015) (‘‘Prudential Regulators’

Margin Rule’’).

4

See 7 U.S.C. 6s(e)(2)(B)(ii). In Commission

regulation 23.151, the Commission further defined

this statutory language to mean all swaps that are

not cleared by a registered derivatives clearing

organization or a derivatives clearing organization

that the Commission has exempted from

registration as provided under the CEA. 17 CFR

23.151.

5

For the definitions of SD and MSP, see section

1a of the CEA and Commission regulation 1.3. 7

U.S.C. 1a and 17 CFR 1.3.

6

7 U.S.C. 6s(e)(3)(A).

7

See BCBS/IOSCO Margin requirements for non-

centrally cleared derivatives (September 2013),

available at https://www.bis.org/publ/bcbs261.pdf.

8

See Margin Requirements for Uncleared Swaps

for Swap Dealers and Major Swap Participants, 81

FR 636 (Jan. 6, 2016). The CFTC Margin Rule,

which became effective April 1, 2016, is codified in

part 23 of the Commission’s regulations. 17 CFR

23.150—23.159, 23.161. In May 2016, the

Commission amended the CFTC Margin Rule to add

Commission regulation 23.160, providing rules on

its cross border application. Margin Requirements

for Uncleared Swaps for Swap Dealers and Major

Swap Participants—Cross-Border Application of the

Margin Requirements, 81 FR 34818 (May 31, 2016).

17 CFR 23.160.

9

See BCBS/IOSCO Margin requirements for non-

centrally cleared derivatives (March 2015),

available at https://www.bis.org/bcbs/publ/

d317.pdf.

10

See BCBS/IOSCO Margin requirements for non-

centrally cleared derivatives (July 2019), available

(k) Related Information

For more information about this AD,

contact Vladimir Ulyanov, Aerospace

Engineer, International Section, Transport

Standards Branch, FAA, 2200 South 216th

St., Des Moines, WA 98198; telephone and

fax 206–231–3229.

(l) Material Incorporated by Reference

(1) The Director of the Federal Register

approved the incorporation by reference

(IBR) of the service information listed in this

paragraph under 5 U.S.C. 552(a) and 1 CFR

part 51.

(2) You must use this service information

as applicable to do the actions required by

this AD, unless this AD specifies otherwise.

(3) The following service information was

approved for IBR on May 14, 2020.

(i) European Union Aviation Safety Agency

(EASA) AD 2019–0155, dated July 3, 2019.

(ii) [Reserved]

(4) For information about EASA AD 2019–

0155, contact the EASA, Konrad-Adenauer-

Ufer 3, 50668 Cologne, Germany; telephone

+49 221 89990 6017; email ADs@

easa.europa.eu; internet

www.easa.europa.eu. You may find this

EASA AD on the EASA website at https://

ad.easa.europa.eu.

(5) You may view this material at the FAA,

Transport Standards Branch, 2200 South

216th St., Des Moines, WA. For information

on the availability of this material at the

FAA, call 206–231–3195. This material may

be found in the AD docket on the internet at

https://www.regulations.gov by searching for

and locating Docket No. FAA–2019–0867.

(6) You may view this material that is

incorporated by reference at the National

Archives and Records Administration

(NARA). For information on the availability

of this material at NARA, email fedreg.legal@

nara.gov, or go to: https://www.archives.gov/

federal-register/cfr/ibr-locations.html.

Issued on April 1, 2020.

Gaetano A. Sciortino,

Deputy Director for Strategic Initiatives,

Compliance & Airworthiness Division,

Aircraft Certification Service.

[FR Doc. 2020–07399 Filed 4–8–20; 8:45 am]

BILLING CODE 4910–13–P

COMMODITY FUTURES TRADING

COMMISSION

17 CFR Part 23

RIN 3038–AE89

Margin Requirements for Uncleared

Swaps for Swap Dealers and Major

Swap Participants

AGENCY

: Commodity Futures Trading

Commission.

ACTION

: Final rule

SUMMARY

: The Commodity Futures

Trading Commission (‘‘Commission’’ or

‘‘CFTC’’) is adopting amendments to the

margin requirements for uncleared

swaps for swap dealers (‘‘SD’’) and

major swap participants (‘‘MSP’’) for

which there is no prudential regulator

(the ‘‘CFTC Margin Rule’’). Specifically,

the Commission is adopting an

amendment, along with certain

conforming, technical changes, to

extend the compliance schedule for the

posting and collection of initial margin

(‘‘IM’’) under the CFTC Margin Rule to

September 1, 2021, for entities with

smaller average daily aggregate notional

amounts of swaps and certain other

financial products (‘‘Final Rule’’). The

compliance schedule currently extends

from September 1, 2016 to September 1,

2020. The revised compliance schedule

mitigates the potential of a market

disruption, which could be triggered by

the large number of entities that would

come into the scope of the IM

requirements at the end of the current

compliance schedule on September 1,

2020.

DATES

: This final rule is effective May

11, 2020.

FOR FURTHER INFORMATION CONTACT

:

Joshua B. Sterling, Director, 202–418–

6056, jsterling@cftc.gov; Thomas J.

Smith, Deputy Director, 202–418–5495,

tsmith@cftc.gov; Warren Gorlick,

Associate Director, 202–418–5195,

wgorlick@cftc.gov; Carmen Moncada-

Terry, Special Counsel, 202–418–5795,

cmoncada-terry@cftc.gov; or Rafael

Martinez, Senior Financial Risk Analyst,

202–418–5462, rmartinez@cftc.gov,

Division of Swap Dealer and

Intermediary Oversight, Commodity

Futures Trading Commission, Three

Lafayette Centre, 1155 21st Street NW,

Washington, DC 20581.

SUPPLEMENTARY INFORMATION

:

I. Background

Section 4s(e) of the Commodity

Exchange Act (‘‘CEA’’)

1

requires the

Commission to adopt rules establishing

minimum initial and variation margin

requirements for all swaps

2

that are (i)

entered into by an SD or MSP for which

there is no Prudential Regulator

3

(collectively, ‘‘covered swap entities’’ or

‘‘CSEs’’) and (ii) not cleared by a

registered derivatives clearing

organization (‘‘uncleared swaps’’).

4

To

offset the greater risk to the SD or MSP

5

and the financial system arising from

the use of uncleared swaps, these

requirements must (i) help ensure the

safety and soundness of the SD or MSP

and (ii) be appropriate for the risk

associated with the uncleared swaps

held by the SD or MSP.

6

The Basel Committee on Banking

Supervision (‘‘BCBS’’) and the Board of

the International Organization of

Securities Commissions (‘‘IOSCO’’)

established an international framework

for margin requirements for uncleared

derivatives in September 2013 (the

‘‘BCBS/IOSCO framework’’).

7

After the

establishment of the BCBS/IOSCO

framework, the CFTC, on January 6,

2016, consistent with Section 4s(e),

promulgated rules requiring CSEs to

collect and post initial and variation

margin for uncleared swaps,

8

adopting

the implementation schedule set forth

in the BCBS/IOSCO framework,

including the revised implementation

schedule adopted on March 18, 2015.

9

In July 2019, the BCBS and IOSCO

further revised the framework to extend

the implementation schedule for

compliance with IM requirements to

September 1, 2021.

10

Shortly after, the

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