{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 37 sorted by section_id", "rows": [["10:10:1.0.1.1.27.1.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.1 Purpose.", "NRC", "", "", "", "This part has been established to provide the requirements for the physical protection program for any licensee that possesses an aggregated category 1 or category 2 quantity of radioactive material listed in Appendix A to this part. These requirements provide reasonable assurance of the security of category 1 or category 2 quantities of radioactive material by protecting these materials from theft or diversion. Specific requirements for access to material, use of material, transfer of material, and transport of material are included. No provision of this part authorizes possession of licensed material."], ["10:10:1.0.1.1.27.1.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.3 Scope.", "NRC", "", "", "", "(a) Subparts B and C of this part apply to any person who, under the regulations in this chapter, possesses or uses at any site, an aggregated category 1 or category 2 quantity of radioactive material.\n\n(b) Subpart D of this part applies to any person who, under the regulations of this chapter:\n\n(1) Transports or delivers to a carrier for transport in a single shipment, a category 1 or category 2 quantity of radioactive material; or\n\n(2) Imports or exports a category 1 or category 2 quantity of radioactive material; the provisions only apply to the domestic portion of the transport."], ["10:10:1.0.1.1.27.1.94.3", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.5 Definitions.", "NRC", "", "", "", "As used in this part:\n\nAccess control  means a system for allowing only approved individuals to have unescorted access to the security zone and for ensuring that all other individuals are subject to escorted access.\n\nAct  means the Atomic Energy Act of 1954 (68 Stat. 919), including any amendments thereto.\n\nAggregated  means accessible by the breach of a single physical barrier that would allow access to radioactive material in any form, including any devices that contain the radioactive material, when the total activity equals or exceeds a category 2 quantity of radioactive material.\n\nAgreement State  means any state with which the Atomic Energy Commission or the U.S. Nuclear Regulatory Commission has entered into an effective agreement under subsection 274b. of the Act.  Non-agreement State  means any other State.\n\nApproved individual  means an individual whom the licensee has determined to be trustworthy and reliable for unescorted access in accordance with subpart B of this part and who has completed the training required by \u00a7 37.43(c).\n\nBackground investigation  means the investigation conducted by a licensee or applicant to support the determination of trustworthiness and reliability.\n\nBecquerel (Bq)  means one disintegration per second.\n\nByproduct material  means\u2014\n\n(1) Any radioactive material (except special nuclear material) yielded in, or made radioactive by, exposure to the radiation incident to the process of producing or using special nuclear material;\n\n(2) The tailings or wastes produced by the extraction or concentration of uranium or thorium from ore processed primarily for its source material content, including discrete surface wastes resulting from uranium solution extraction processes. Underground ore bodies depleted by these solution extraction operations do not constitute \u201cbyproduct material\u201d within this definition;\n\n(3)(i) Any discrete source of radium-226 that is produced, extracted, or converted after extraction, before, on, or after August 8, 2005, for use for a commercial, medical, or research activity; or\n\n(ii) Any material that\u2014\n\n(A) Has been made radioactive by use of a particle accelerator; and\n\n(B) Is produced, extracted, or converted after extraction, before, on, or after August 8, 2005, for use for a commercial, medical, or research activity; and\n\n(4) Any discrete source of naturally occurring radioactive material, other than source material, that\u2014\n\n(i) The Commission, in consultation with the Administrator of the Environmental Protection Agency, the Secretary of Energy, the Secretary of Homeland Security, and the head of any other appropriate Federal agency, determines would pose a threat similar to the threat posed by a discrete source of radium-226 to the public health and safety or the common defense and security; and\n\n(ii) Before, on, or after August 8, 2005, is extracted or converted after extraction for use in a commercial, medical, or research activity.\n\nCarrier  means a person engaged in the transportation of passengers or property by land or water as a common, contract, or private carrier, or by civil aircraft.\n\nCategory 1 quantity of radioactive material  means a quantity of radioactive material meeting or exceeding the category 1 threshold in Table 1 of Appendix A to this part. This is determined by calculating the ratio of the total activity of each radionuclide to the category 1 threshold for that radionuclide and adding the ratios together. If the sum is equal to or exceeds 1, the quantity would be considered a category 1 quantity. Category 1 quantities of radioactive material do not include the radioactive material contained in any fuel assembly, subassembly, fuel rod, or fuel pellet.\n\nCategory 2 quantity of radioactive material  means a quantity of radioactive material meeting or exceeding the category 2 threshold but less than the category 1 threshold in Table 1 of Appendix A to this part. This is determined by calculating the ratio of the total activity of each radionuclide to the category 2 threshold for that radionuclide and adding the ratios together. If the sum is equal to or exceeds 1, the quantity would be considered a category 2 quantity. Category 2 quantities of radioactive material do not include the radioactive material contained in any fuel assembly, subassembly, fuel rod, or fuel pellet.\n\nCommission  means the U.S. Nuclear Regulatory Commission or its duly authorized representatives.\n\nCurie  means that amount of radioactive material which disintegrates at the rate of 37 billion atoms per second.\n\nDiversion  means the unauthorized movement of radioactive material subject to this part to a location different from the material's authorized destination inside or outside of the site at which the material is used or stored.\n\nEscorted access  means accompaniment while in a security zone by an approved individual who maintains continuous direct visual surveillance at all times over an individual who is not approved for unescorted access.\n\nFingerprint orders  means the orders issued by the U.S. Nuclear Regulatory Commission or the legally binding requirements issued by Agreement States that require fingerprints and criminal history records checks for individuals with unescorted access to category 1 and category 2 quantities of radioactive material or safeguards information-modified handling.\n\nGovernment agency  means any executive department, commission, independent establishment, corporation, wholly or partly owned by the United States of America which is an instrumentality of the United States, or any board, bureau, division, service, office, officer, authority, administration, or other establishment in the executive branch of the Government.\n\nLicense,  except where otherwise specified, means a license for byproduct material issued pursuant to the regulations in parts 30 through 36 and 39 of this chapter;\n\nLicense issuing authority  means the licensing agency that issued the license,  i.e.  the U.S. Nuclear Regulatory Commission or the appropriate agency of an Agreement State;\n\nLocal law enforcement agency (LLEA)  means a public or private organization that has been approved by a federal, state, or local government to carry firearms and make arrests, and is authorized and has the capability to provide an armed response in the jurisdiction where the licensed category 1 or category 2 quantity of radioactive material is used, stored, or transported.\n\nLost or missing licensed material  means licensed material whose location is unknown. It includes material that has been shipped but has not reached its destination and whose location cannot be readily traced in the transportation system.\n\nMobile device  means a piece of equipment containing licensed radioactive material that is either mounted on wheels or casters, or otherwise equipped for moving without a need for disassembly or dismounting; or designed to be hand carried. Mobile devices do not include stationary equipment installed in a fixed location.\n\nMovement control center  means an operations center that is remote from transport activity and that maintains position information on the movement of radioactive material, receives reports of attempted attacks or thefts, provides a means for reporting these and other problems to appropriate agencies and can request and coordinate appropriate aid.\n\nNo-later-than arrival time  means the date and time that the shipping licensee and receiving licensee have established as the time at which an investigation will be initiated if the shipment has not arrived at the receiving facility. The no-later-than-arrival time may not be more than 6 hours after the estimated arrival time for shipments of category 2 quantities of radioactive material.\n\nPerson  means\u2014\n\n(1) Any individual, corporation, partnership, firm, association, trust, estate, public or private institution, group, Government agency other than the Commission or the DOE (except that the Department shall be considered a person within the meaning of the regulations in 10 CFR chapter I to the extent that its facilities and activities are subject to the licensing and related regulatory authority of the Commission under section 202 of the Energy Reorganization Act of 1974 (88 Stat. 1244), the Uranium Mill Tailings Radiation Control Act of 1978 (92 Stat. 3021), the Nuclear Waste Policy Act of 1982 (96 Stat. 2201), and section 3(b)(2) of the Low-Level Radioactive Waste Policy Amendments Act of 1985 (99 Stat. 1842), any State or any political subdivision of or any political entity within a State, any foreign government or nation or any political subdivision of any such government or nation, or other entity; and\n\n(2) Any legal successor, representative, agent, or agency of the foregoing.\n\nReviewing official  means the individual who shall make the trustworthiness and reliability determination of an individual to determine whether the individual may have, or continue to have, unescorted access to the category 1 or category 2 quantities of radioactive materials that are possessed by the licensee.\n\nSabotage  means deliberate damage, with malevolent intent, to a category 1 or category 2 quantity of radioactive material, a device that contains a category 1 or category 2 quantity of radioactive material, or the components of the security system.\n\nSafe haven  means a readily recognizable and readily accessible site at which security is present or from which, in the event of an emergency, the transport crew can notify and wait for the local law enforcement authorities.\n\nSecurity zone  means any temporary or permanent area determined and established by the licensee for the physical protection of category 1 or category 2 quantities of radioactive material.\n\nState  means a State of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.\n\nTelemetric position monitoring system  means a data transfer system that captures information by instrumentation and/or measuring devices about the location and status of a transport vehicle or package between the departure and destination locations.\n\nTrustworthiness and reliability  are characteristics of an individual considered dependable in judgment, character, and performance, such that unescorted access to category 1 or category 2 quantities of radioactive material by that individual does not constitute an unreasonable risk to the public health and safety or security. A determination of trustworthiness and reliability for this purpose is based upon the results from a background investigation.\n\nUnescorted access  means solitary access to an aggregated category 1 or category 2 quantity of radioactive material or the devices that contain the material.\n\nUnited States,  when used in a geographical sense, includes Puerto Rico and all territories and possessions of the United States."], ["10:10:1.0.1.1.27.1.94.4", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.7 Communications.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 79 FR 75740, Dec. 19, 2014; 80 FR 74979, Dec. 1, 2015; 83 FR 58722, Nov. 21, 2018; 84 FR 65644, Nov. 29, 2019]", "Except where otherwise specified or covered under the regional licensing program as provided in \u00a7 30.6(b) of this chapter, all communications and reports concerning the regulations in this part may be sent as follows:\n\n(a) By mail addressed to: ATTN: Document Control Desk; Director, Office of Nuclear Reactor Regulation; or Director, Office of Nuclear Material Safety and Safeguards, as appropriate, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001;\n\n(b) By hand delivery to the NRC's offices at 11555 Rockville Pike, Rockville, Maryland 20852;\n\n(c) Where practicable, by electronic submission, for example, Electronic Information Exchange, or CD-ROM. Electronic submissions must be made in a manner that enables the NRC to receive, read, authenticate, distribute, and archive the submission, and process and retrieve it a single page at a time. Detailed guidance on making electronic submissions can be obtained by visiting the NRC's Web site at  http://www.nrc.gov/site-help/e-submittals.html;  by email to  MSHD.Resource@nrc.gov;  or by writing the Office of the Chief Information Officer, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. The guidance discusses, among other topics, the formats the NRC can accept, the use of electronic signatures, and the treatment of nonpublic information."], ["10:10:1.0.1.1.27.1.94.5", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.9 Interpretations.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 90 FR 55630, Dec. 3, 2025]", "Except as specifically authorized by the Commission in writing, no interpretations of the meaning of the regulations in this part by any officer or employee of the Commission other than a written interpretation by the General Counsel will be recognized as binding upon the Commission. This section shall cease to have effect on January 8, 2027, unless the NRC determines that the cessation deadline should be extended to a date not more than 5 years in the future after offering the public an opportunity to provide input on the costs and benefits of this section and considering that input. The NRC will publish a document in the  Federal Register  announcing its determination and revising or removing this section accordingly."], ["10:10:1.0.1.1.27.1.94.6", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.11 Specific exemptions.", "NRC", "", "", "", "(a) The Commission may, upon application of any interested person or upon its own initiative, grant such exemptions from the requirements of the regulations in this part as it determines are authorized by law and will not endanger life or property or the common defense and security, and are otherwise in the public interest.\n\n(b) Any licensee's NRC-licensed activities are exempt from the requirements of subparts B and C of this part to the extent that its activities are included in a security plan required by part 73 of this chapter.\n\n(c) A licensee that possesses radioactive waste that contains category 1 or category 2 quantities of radioactive material is exempt from the requirements of subparts B, C, and D of this part. Except that any radioactive waste that contains discrete sources, ion-exchange resins, or activated material that weighs less than 2,000 kg (4,409 lbs) is not exempt from the requirements of this part. The licensee shall implement the following requirements to secure the radioactive waste:\n\n(1) Use continuous physical barriers that allow access to the radioactive waste only through established access control points;\n\n(2) Use a locked door or gate with monitored alarm at the access control point;\n\n(3) Assess and respond to each actual or attempted unauthorized access to determine whether an actual or attempted theft, sabotage, or diversion occurred; and\n\n(4) Immediately notify the LLEA and request an armed response from the LLEA upon determination that there was an actual or attempted theft, sabotage, or diversion of the radioactive waste that contains category 1 or category 2 quantities of radioactive material."], ["10:10:1.0.1.1.27.1.94.7", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.13 Information collection requirements: OMB approval.", "NRC", "", "", "", "(a) The U.S. Nuclear Regulatory Commission has submitted the information collection requirements contained in this part to the Office of Management and Budget (OMB) for approval as required by the Paperwork Reduction Act (44 U.S.C. 3501  et seq. ). The NRC may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number. The OMB has approved the information collection requirements contained in this part under control number 3150-0214.\n\n(b) The approved information collection requirements contained in this part appear in \u00a7\u00a7 37.11, 37.21, 37.23, 37.25, 37.27, 37.29, 37.31, 37.33, 37.41, 37.43, 37.45, 37.49, 37.51, 37.55, 37.57, 37.71, 37.75, 37.77, 37.79, and 37.81."], ["10:10:1.0.1.1.27.2.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.21 Personnel access authorization requirements for category 1 or category 2 quantities of radioactive material.", "NRC", "", "", "", "(a)  General.  (1) Each licensee that possesses an aggregated quantity of radioactive material at or above the category 2 threshold shall establish, implement, and maintain its access authorization program in accordance with the requirements of this subpart.\n\n(2) An applicant for a new license and each licensee that would become newly subject to the requirements of this subpart upon application for modification of its license shall implement the requirements of this subpart, as appropriate, before taking possession of an aggregated category 1 or category 2 quantity of radioactive material.\n\n(3) Any licensee that has not previously implemented the Security Orders or been subject to the provisions of this subpart B shall implement the provisions of this subpart B before aggregating radioactive material to a quantity that equals or exceeds the category 2 threshold.\n\n(b)  General performance objective.  The licensee's access authorization program must ensure that the individuals specified in paragraph (c)(1) of this section are trustworthy and reliable.\n\n(c)  Applicability.  (1) Licensees shall subject the following individuals to an access authorization program:\n\n(i) Any individual whose assigned duties require unescorted access to category 1 or category 2 quantities of radioactive material or to any device that contains the radioactive material; and\n\n(ii) Reviewing officials.\n\n(2) Licensees need not subject the categories of individuals listed in \u00a7 37.29(a)(1) through (13) to the investigation elements of the access authorization program.\n\n(3) Licensees shall approve for unescorted access to category 1 or category 2 quantities of radioactive material only those individuals with job duties that require unescorted access to category 1 or category 2 quantities of radioactive material.\n\n(4) Licensees may include individuals needing access to safeguards information-modified handling under part 73 of this chapter in the access authorization program under this subpart B."], ["10:10:1.0.1.1.27.2.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.23 Access authorization program requirements.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 80 FR 45843, Aug. 3, 2015; 83 FR 30287, June 28, 2018; 84 FR 63567, Nov. 18, 2019]", "(a)  Granting unescorted access authorization.  (1) Licensees shall implement the requirements of this subpart for granting initial or reinstated unescorted access authorization.\n\n(2) Individuals who have been determined to be trustworthy and reliable shall also complete the security training required by \u00a7 37.43(c) before being allowed unescorted access to category 1 or category 2 quantities of radioactive material.\n\n(b)  Reviewing officials.  (1) Reviewing officials are the only individuals who may make trustworthiness and reliability determinations that allow individuals to have unescorted access to category 1 or category 2 quantities of radioactive materials possessed by the licensee.\n\n(2) Each licensee shall name one or more individuals to be reviewing officials. After completing the background investigation on the reviewing official, the licensee shall provide under oath or affirmation, a certification that the reviewing official is deemed trustworthy and reliable by the licensee. Provide oath or affirmation certifications to the Director, Office of Nuclear Material Safety and Safeguards, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001, ATTN: Source Management and Protection Branch. The fingerprints of the named reviewing official must be taken by a law enforcement agency, Federal or State agencies that provide fingerprinting services to the public, or commercial fingerprinting services authorized by a State to take fingerprints. The licensee shall recertify that the reviewing official is deemed trustworthy and reliable every 10 years in accordance with \u00a7 37.25(c).\n\n(3) Reviewing officials must be permitted to have unescorted access to category 1 or category 2 quantities of radioactive materials or access to safeguards information or safeguards information-modified handling, if the licensee possesses safeguards information or safeguards information-modified handling.\n\n(4) Reviewing officials cannot approve other individuals to act as reviewing officials.\n\n(5) A reviewing official does not need to undergo a new background investigation before being named by the licensee as the reviewing official if:\n\n(i) The individual has undergone a background investigation that included fingerprinting and an FBI criminal history records check and has been determined to be trustworthy and reliable by the licensee; or\n\n(ii) The individual is subject to a category listed in \u00a7 37.29(a).\n\n(c)  Informed consent.  (1) Licensees may not initiate a background investigation without the informed and signed consent of the subject individual. This consent must include authorization to share personal information with other individuals or organizations as necessary to complete the background investigation. Before a final adverse determination, the licensee shall provide the individual with an opportunity to correct any inaccurate or incomplete information that is developed during the background investigation. Licensees do not need to obtain signed consent from those individuals that meet the requirements of \u00a7 37.25(b). A signed consent must be obtained prior to any reinvestigation.\n\n(2) The subject individual may withdraw his or her consent at any time. Licensees shall inform the individual that:\n\n(i) If an individual withdraws his or her consent, the licensee may not initiate any elements of the background investigation that were not in progress at the time the individual withdrew his or her consent; and\n\n(ii) The withdrawal of consent for the background investigation is sufficient cause for denial or termination of unescorted access authorization.\n\n(d)  Personal history disclosure.  Any individual who is applying for unescorted access authorization shall disclose the personal history information that is required by the licensee's access authorization program for the reviewing official to make a determination of the individual's trustworthiness and reliability. Refusal to provide, or the falsification of, any personal history information required by this subpart is sufficient cause for denial or termination of unescorted access.\n\n(e)  Determination basis.  (1) The reviewing official shall determine whether to permit, deny, unfavorably terminate, maintain, or administratively withdraw an individual's unescorted access authorization based on an evaluation of all of the information collected to meet the requirements of this subpart.\n\n(2) The reviewing official may not permit any individual to have unescorted access until the reviewing official has evaluated all of the information collected to meet the requirements of this subpart and determined that the individual is trustworthy and reliable. The reviewing official may deny unescorted access to any individual based on information obtained at any time during the background investigation.\n\n(3) The licensee shall document the basis for concluding whether or not there is reasonable assurance that an individual is trustworthy and reliable.\n\n(4) The reviewing official may terminate or administratively withdraw an individual's unescorted access authorization based on information obtained after the background investigation has been completed and the individual granted unescorted access authorization.\n\n(5) Licensees shall maintain a list of persons currently approved for unescorted access authorization. When a licensee determines that a person no longer requires unescorted access or meets the access authorization requirement, the licensee shall remove the person from the approved list as soon as possible, but no later than 7 working days, and take prompt measures to ensure that the individual is unable to have unescorted access to the material.\n\n(f)  Procedures.  Licensees shall develop, implement, and maintain written procedures for implementing the access authorization program. The procedures must include provisions for the notification of individuals who are denied unescorted access. The procedures must include provisions for the review, at the request of the affected individual, of a denial or termination of unescorted access authorization. The procedures must contain a provision to ensure that the individual is informed of the grounds for the denial or termination of unescorted access authorization and allow the individual an opportunity to provide additional relevant information.\n\n(g)  Right to correct and complete information.  (1) Prior to any final adverse determination, licensees shall provide each individual subject to this subpart with the right to complete, correct, and explain information obtained as a result of the licensee's background investigation. Confirmation of receipt by the individual of this notification must be maintained by the licensee for a period of 1 year from the date of the notification.\n\n(2) If, after reviewing his or her criminal history record, an individual believes that it is incorrect or incomplete in any respect and wishes to change, correct, update, or explain anything in the record, the individual may initiate challenge procedures. These procedures include direct application by the individual challenging the record to the law enforcement agency that contributed the questioned information or a direct challenge as to the accuracy or completeness of any entry on the criminal history record to the Federal Bureau of Investigation, Criminal Justice Information Services (CJIS) Division, ATTN: SCU, Mod. D-2, 1000 Custer Hollow Road, Clarksburg, WV 26306 as set forth in 28 CFR 16.30 through 16.34. In the latter case, the Federal Bureau of Investigation (FBI) will forward the challenge to the agency that submitted the data, and will request that the agency verify or correct the challenged entry. Upon receipt of an official communication directly from the agency that contributed the original information, the FBI Identification Division makes any changes necessary in accordance with the information supplied by that agency. Licensees must provide at least 10 days for an individual to initiate action to challenge the results of an FBI criminal history records check after the record being made available for his or her review. The licensee may make a final adverse determination based upon the criminal history records only after receipt of the FBI's confirmation or correction of the record.\n\n(h)  Records.  (1) The licensee shall retain documentation regarding the trustworthiness and reliability of individual employees for 3 years from the date the individual no longer requires unescorted access to category 1 or category 2 quantities of radioactive material.\n\n(2) The licensee shall retain a copy of the current access authorization program procedures as a record for 3 years after the procedure is no longer needed. If any portion of the procedure is superseded, the licensee shall retain the superseded material for 3 years after the record is superseded.\n\n(3) The licensee shall retain the list of persons approved for unescorted access authorization for 3 years after the list is superseded or replaced."], ["10:10:1.0.1.1.27.2.94.3", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.25 Background investigations.", "NRC", "", "", "", "(a)  Initial investigation.  Before allowing an individual unescorted access to category 1 or category 2 quantities of radioactive material or to the devices that contain the material, licensees shall complete a background investigation of the individual seeking unescorted access authorization. The scope of the investigation must encompass at least the 7 years preceding the date of the background investigation or since the individual's eighteenth birthday, whichever is shorter. The background investigation must include at a minimum:\n\n(1) Fingerprinting and an FBI identification and criminal history records check in accordance with \u00a7 37.27;\n\n(2) Verification of true identity. Licensees shall verify the true identity of the individual who is applying for unescorted access authorization to ensure that the applicant is who he or she claims to be. A licensee shall review official identification documents ( e.g.,  driver's license; passport; government identification; certificate of birth issued by the state, province, or country of birth) and compare the documents to personal information data provided by the individual to identify any discrepancy in the information. Licensees shall document the type, expiration, and identification number of the identification document, or maintain a photocopy of identifying documents on file in accordance with \u00a7 37.31. Licensees shall certify in writing that the identification was properly reviewed, and shall maintain the certification and all related documents for review upon inspection;\n\n(3) Employment history verification. Licensees shall complete an employment history verification, including military history. Licensees shall verify the individual's employment with each previous employer for the most recent 7 years before the date of application;\n\n(4) Verification of education. Licensees shall verify that the individual participated in the education process during the claimed period;\n\n(5) Character and reputation determination. Licensees shall complete reference checks to determine the character and reputation of the individual who has applied for unescorted access authorization. Unless other references are not available, reference checks may not be conducted with any person who is known to be a close member of the individual's family, including but not limited to the individual's spouse, parents, siblings, or children, or any individual who resides in the individual's permanent household. Reference checks under this subpart must be limited to whether the individual has been and continues to be trustworthy and reliable;\n\n(6) The licensee shall also, to the extent possible, obtain independent information to corroborate that provided by the individual ( e.g.,  seek references not supplied by the individual); and\n\n(7) If a previous employer, educational institution, or any other entity with which the individual claims to have been engaged fails to provide information or indicates an inability or unwillingness to provide information within a time frame deemed appropriate by the licensee but at least after 10 business days of the request or if the licensee is unable to reach the entity, the licensee shall document the refusal, unwillingness, or inability in the record of investigation; and attempt to obtain the information from an alternate source.\n\n(b)  Grandfathering.  (1) Individuals who have been determined to be trustworthy and reliable for unescorted access to category 1 or category 2 quantities of radioactive material under the Fingerprint Orders may continue to have unescorted access to category 1 and category 2 quantities of radioactive material without further investigation. These individuals shall be subject to the reinvestigation requirement.\n\n(2) Individuals who have been determined to be trustworthy and reliable under the provisions of part 73 of this chapter or the security orders for access to safeguards information, safeguards information-modified handling, or risk-significant material may have unescorted access to category 1 and category 2 quantities of radioactive material without further investigation. The licensee shall document that the individual was determined to be trustworthy and reliable under the provisions of part 73 of this chapter or a security order. Security order, in this context, refers to any order that was issued by the NRC that required fingerprints and an FBI criminal history records check for access to safeguards information, safeguards information-modified handling, or risk significant material such as special nuclear material or large quantities of uranium hexafluoride. These individuals shall be subject to the reinvestigation requirement.\n\n(c)  Reinvestigations.  Licensees shall conduct a reinvestigation every 10 years for any individual with unescorted access to category 1 or category 2 quantities of radioactive material. The reinvestigation shall consist of fingerprinting and an FBI identification and criminal history records check in accordance with \u00a7 37.27. The reinvestigations must be completed within 10 years of the date on which these elements were last completed."], ["10:10:1.0.1.1.27.2.94.4", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.27 Requirements for criminal history records checks of individuals granted unescorted access to category 1 or category 2 quantities of radioactive material.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 80 FR 74979, Dec. 1, 2015; 84 FR 63567, Nov. 18, 2019; 86 FR 43402, Aug. 9, 2021; 89 FR 51810, June 20, 2024]", "(a)  General performance objective and requirements.  (1) Except for those individuals listed in \u00a7 37.29 and those individuals grandfathered under \u00a7 37.25(b), each licensee subject to the provisions of this subpart shall fingerprint each individual who is to be permitted unescorted access to category 1 or category 2 quantities of radioactive material. Licensees shall transmit all collected fingerprints to the Commission for transmission to the FBI. The licensee shall use the information received from the FBI as part of the required background investigation to determine whether to grant or deny further unescorted access to category 1 or category 2 quantities of radioactive materials for that individual.\n\n(2) The licensee shall notify each affected individual that his or her fingerprints will be used to secure a review of his or her criminal history record, and shall inform him or her of the procedures for revising the record or adding explanations to the record.\n\n(3) Fingerprinting is not required if a licensee is reinstating an individual's unescorted access authorization to category 1 or category 2 quantities of radioactive materials if:\n\n(i) The individual returns to the same facility that granted unescorted access authorization within 365 days of the termination of his or her unescorted access authorization; and\n\n(ii) The previous access was terminated under favorable conditions.\n\n(4) Fingerprints do not need to be taken if an individual who is an employee of a licensee, contractor, manufacturer, or supplier has been granted unescorted access to category 1 or category 2 quantities of radioactive material, access to safeguards information, or safeguards information-modified handling by another licensee, based upon a background investigation conducted under this subpart, the Fingerprint Orders, or part 73 of this chapter. An existing criminal history records check file may be transferred to the licensee asked to grant unescorted access in accordance with the provisions of \u00a7 37.31(c).\n\n(5) Licensees shall use the information obtained as part of a criminal history records check solely for the purpose of determining an individual's suitability for unescorted access authorization to category 1 or category 2 quantities of radioactive materials, access to safeguards information, or safeguards information-modified handling.\n\n(b)  Prohibitions.  (1) Licensees may not base a final determination to deny an individual unescorted access authorization to category 1 or category 2 quantities of radioactive material solely on the basis of information received from the FBI involving:\n\n(i) An arrest more than 1 year old for which there is no information of the disposition of the case; or\n\n(ii) An arrest that resulted in dismissal of the charge or an acquittal.\n\n(2) Licensees may not use information received from a criminal history records check obtained under this subpart in a manner that would infringe upon the rights of any individual under the First Amendment to the Constitution of the United States, nor shall licensees use the information in any way that would discriminate among individuals on the basis of race, religion, national origin, gender, or age.\n\n(c)  Procedures for processing of fingerprint checks.  (1) For the purposes of complying with this subpart, licensees shall use an appropriate method listed in \u00a7 37.7 to submit to the U.S. Nuclear Regulatory Commission, Director, Division of Physical and Cyber Security Policy, 11545 Rockville Pike, ATTN: Criminal History Program/Mail Stop T-07D04M, Rockville, MD 20852, one completed, legible standard fingerprint card (Form FD-258, ORIMDNRCOOOZ), electronic fingerprint scan or, where practicable, other fingerprint record for each individual requiring unescorted access to category 1 or category 2 quantities of radioactive material. Copies of these forms may be obtained by emailing  MAILSVS.Resource@nrc.gov.  Guidance on submitting electronic fingerprints can be found at  https://www.nrc.gov/security/chp.html.\n\n(2) Fees for the processing of fingerprint checks are due upon application. Licensees shall submit payment made payable to the U.S. Nuclear Regulatory Commission. The payments are to be made in U.S. funds using the electronic payment methods accepted at  www.Pay.gov.  For guidance on making electronic payments, contact the Division of Physical and Cyber Security Policy by emailing  Crimhist.Resource@nrc.gov.  Combined payment for multiple applications is acceptable. The Commission publishes the amount of the fingerprint check application fee on the NRC's public website. (To find the current fee amount, go to the Licensee Criminal History Records Checks & Firearms Background Check information page at  https://www.nrc.gov/security/chp.html  and see the link for How do I determine how much to pay for the request?)\n\n(3) The Commission will forward to the submitting licensee all data received from the FBI as a result of the licensee's application(s) for criminal history records checks."], ["10:10:1.0.1.1.27.2.94.5", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.29 Relief from fingerprinting, identification, and criminal history records checks and other elements of background investigations for designated categories of individuals permitted unescorted access to certain radioactive materials.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 79 FR 58671, Sept. 30, 2014]", "(a) Fingerprinting, and the identification and criminal history records checks required by section 149 of the Atomic Energy Act of 1954, as amended, and other elements of the background investigation are not required for the following individuals prior to granting unescorted access to category 1 or category 2 quantities of radioactive materials:\n\n(1) An employee of the Commission or of the Executive Branch of the U.S. Government who has undergone fingerprinting for a prior U.S. Government criminal history records check;\n\n(2) A Member of Congress;\n\n(3) An employee of a member of Congress or Congressional committee who has undergone fingerprinting for a prior U.S. Government criminal history records check;\n\n(4) The Governor of a State or his or her designated State employee representative;\n\n(5) Federal, State, or local law enforcement personnel;\n\n(6) State Radiation Control Program Directors and State Homeland Security Advisors or their designated State employee representatives;\n\n(7) Agreement State employees conducting security inspections on behalf of the NRC under an agreement executed under section 274.i. of the Atomic Energy Act;\n\n(8) Representatives of the International Atomic Energy Agency (IAEA) engaged in activities associated with the U.S./IAEA Safeguards Agreement who have been certified by the NRC;\n\n(9) Emergency response personnel who are responding to an emergency;\n\n(10) Commercial vehicle drivers for road shipments of category 1 and category 2 quantities of radioactive material;\n\n(11) Package handlers at transportation facilities such as freight terminals and railroad yards;\n\n(12) Any individual who has an active Federal security clearance, provided that he or she makes available the appropriate documentation. Written confirmation from the agency/employer that granted the Federal security clearance or reviewed the criminal history records check must be provided to the licensee. The licensee shall retain this documentation for a period of 3 years from the date the individual no longer requires unescorted access to category 1 or category 2 quantities of radioactive material; and\n\n(13) Any individual employed by a service provider licensee for which the service provider licensee has conducted the background investigation for the individual and approved the individual for unescorted access to category 1 or category 2 quantities of radioactive material. Written verification from the service provider must be provided to the licensee. The licensee shall retain the documentation for a period of 3 years from the date the individual no longer requires unescorted access to category 1 or category 2 quantities of radioactive material.\n\n(b) Fingerprinting, and the identification and criminal history records checks required by section 149 of the Atomic Energy Act of 1954, as amended, are not required for an individual who has had a favorably adjudicated U.S. Government criminal history records check within the last 5 years, under a comparable U.S. Government program involving fingerprinting and an FBI identification and criminal history records check provided that he or she makes available the appropriate documentation. Written confirmation from the agency/employer that reviewed the criminal history records check must be provided to the licensee. The licensee shall retain this documentation for a period of 3 years from the date the individual no longer requires unescorted access to category 1 or category 2 quantities of radioactive material. These programs include, but are not limited to:\n\n(1) National Agency Check;\n\n(2) Transportation Worker Identification Credentials (TWIC) under 49 CFR part 1572;\n\n(3) Bureau of Alcohol, Tobacco, Firearms, and Explosives background check and clearances under 27 CFR part 555;\n\n(4) Health and Human Services security risk assessments for possession and use of select agents and toxins under 42 CFR part 73;\n\n(5) Hazardous Material security threat assessment for hazardous material endorsement to commercial drivers license under 49 CFR part 1572; and\n\n(6) Customs and Border Protection's Free and Secure Trade (FAST) Program."], ["10:10:1.0.1.1.27.2.94.6", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.31 Protection of information.", "NRC", "", "", "", "(a) Each licensee who obtains background information on an individual under this subpart shall establish and maintain a system of files and written procedures for protection of the record and the personal information from unauthorized disclosure.\n\n(b) The licensee may not disclose the record or personal information collected and maintained to persons other than the subject individual, his or her representative, or to those who have a need to have access to the information in performing assigned duties in the process of granting or denying unescorted access to category 1 or category 2 quantities of radioactive material, safeguards information, or safeguards information-modified handling. No individual authorized to have access to the information may disseminate the information to any other individual who does not have a need to know.\n\n(c) The personal information obtained on an individual from a background investigation may be provided to another licensee:\n\n(1) Upon the individual's written request to the licensee holding the data to disseminate the information contained in his or her file; and\n\n(2) The recipient licensee verifies information such as name, date of birth, social security number, gender, and other applicable physical characteristics.\n\n(d) The licensee shall make background investigation records obtained under this subpart available for examination by an authorized representative of the NRC to determine compliance with the regulations and laws.\n\n(e) The licensee shall retain all fingerprint and criminal history records (including data indicating no record) received from the FBI, or a copy of these records if the individual's file has been transferred, on an individual for 3 years from the date the individual no longer requires unescorted access to category 1 or category 2 quantities of radioactive material."], ["10:10:1.0.1.1.27.2.94.7", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "B", "Subpart B\u2014Background Investigations and Access Authorization Program", "", "\u00a7 37.33 Access authorization program review.", "NRC", "", "", "", "(a) Each licensee shall be responsible for the continuing effectiveness of the access authorization program. Each licensee shall ensure that access authorization programs are reviewed to confirm compliance with the requirements of this subpart and that comprehensive actions are taken to correct any noncompliance that is identified. The review program shall evaluate all program performance objectives and requirements. Each licensee shall periodically (at least annually) review the access program content and implementation.\n\n(b) The results of the reviews, along with any recommendations, must be documented. Each review report must identify conditions that are adverse to the proper performance of the access authorization program, the cause of the condition(s), and, when appropriate, recommend corrective actions, and corrective actions taken. The licensee shall review the findings and take any additional corrective actions necessary to preclude repetition of the condition, including reassessment of the deficient areas where indicated.\n\n(c) Review records must be maintained for 3 years."], ["10:10:1.0.1.1.27.3.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.41 Security program.", "NRC", "", "", "", "(a)  Applicability.  (1) Each licensee that possesses an aggregated category 1 or category 2 quantity of radioactive material shall establish, implement, and maintain a security program in accordance with the requirements of this subpart.\n\n(2) An applicant for a new license and each licensee that would become newly subject to the requirements of this subpart upon application for modification of its license shall implement the requirements of this subpart, as appropriate, before taking possession of an aggregated category 1 or category 2 quantity of radioactive material.\n\n(3) Any licensee that has not previously implemented the Security Orders or been subject to the provisions of subpart C shall provide written notification to the NRC regional office specified in \u00a7 30.6 of this chapter at least 90 days before aggregating radioactive material to a quantity that equals or exceeds the category 2 threshold.\n\n(b)  General performance objective.  Each licensee shall establish, implement, and maintain a security program that is designed to monitor and, without delay, detect, assess, and respond to an actual or attempted unauthorized access to category 1 or category 2 quantities of radioactive material.\n\n(c)  Program features.  Each licensee's security program must include the program features, as appropriate, described in \u00a7\u00a7 37.43, 37.45, 37.47, 37.49, 37.51, 37.53, and 37.55."], ["10:10:1.0.1.1.27.3.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.43 General security program requirements.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 79 FR 58671, Sept. 30, 2014; 83 FR 30287, June 28, 2018]", "(a)  Security plan.  (1) Each licensee identified in \u00a7 37.41(a) shall develop a written security plan specific to its facilities and operations. The purpose of the security plan is to establish the licensee's overall security strategy to ensure the integrated and effective functioning of the security program required by this subpart. The security plan must, at a minimum:\n\n(i) Describe the measures and strategies used to implement the requirements of this subpart; and\n\n(ii) Identify the security resources, equipment, and technology used to satisfy the requirements of this subpart.\n\n(2) The security plan must be reviewed and approved by the individual with overall responsibility for the security program.\n\n(3) A licensee shall revise its security plan as necessary to ensure the effective implementation of Commission requirements. The licensee shall ensure that:\n\n(i) The revision has been reviewed and approved by the individual with overall responsibility for the security program; and\n\n(ii) The affected individuals are instructed on the revised plan before the changes are implemented.\n\n(4) The licensee shall retain a copy of the current security plan as a record for 3 years after the security plan is no longer required. If any portion of the plan is superseded, the licensee shall retain the superseded material for 3 years after the record is superseded.\n\n(b)  Implementing procedures.  (1) The licensee shall develop and maintain written procedures that document how the requirements of this subpart and the security plan will be met.\n\n(2) The implementing procedures and revisions to these procedures must be approved in writing by the individual with overall responsibility for the security program.\n\n(3) The licensee shall retain a copy of the current procedure as a record for 3 years after the procedure is no longer needed. Superseded portions of the procedure must be retained for 3 years after the record is superseded.\n\n(c)  Training.  (1) Each licensee shall conduct training to ensure that those individuals implementing the security program possess and maintain the knowledge, skills, and abilities to carry out their assigned duties and responsibilities effectively. The training must include instruction in:\n\n(i) The licensee's security program and procedures to secure category 1 or category 2 quantities of radioactive material, and in the purposes and functions of the security measures employed;\n\n(ii) The responsibility to report promptly to the licensee any condition that causes or may cause a violation of Commission requirements;\n\n(iii) The responsibility of the licensee to report promptly to the local law enforcement agency and licensee any actual or attempted theft, sabotage, or diversion of category 1 or category 2 quantities of radioactive material; and\n\n(iv) The appropriate response to security alarms.\n\n(2) In determining those individuals who shall be trained on the security program, the licensee shall consider each individual's assigned activities during authorized use and response to potential situations involving actual or attempted theft, diversion, or sabotage of category 1 or category 2 quantities of radioactive material. The extent of the training must be commensurate with the individual's potential involvement in the security of category 1 or category 2 quantities of radioactive material.\n\n(3) Refresher training must be provided at a frequency not to exceed 12 months and when significant changes have been made to the security program. This training must include:\n\n(i) Review of the training requirements of paragraph (c) of this section and any changes made to the security program since the last training;\n\n(ii) Reports on any relevant security issues, problems, and lessons learned;\n\n(iii) Relevant results of NRC inspections; and\n\n(iv) Relevant results of the licensee's program review and testing and maintenance.\n\n(4) The licensee shall maintain records of the initial and refresher training for 3 years from the date of the training. The training records must include dates of the training, topics covered, a list of licensee personnel in attendance, and related information.\n\n(d)  Protection of information.  (1) Licensees authorized to possess category 1 or category 2 quantities of radioactive material shall limit access to and unauthorized disclosure of their security plan, implementing procedures, and the list of individuals that have been approved for unescorted access.\n\n(2) Efforts to limit access shall include the development, implementation, and maintenance of written policies and procedures for controlling access to, and for proper handling and protection against unauthorized disclosure of, the security plan, implementing procedures, and the list of individuals that have been approved for unescorted access.\n\n(3) Before granting an individual access to the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access, licensees shall:\n\n(i) Evaluate an individual's need to know the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access; and\n\n(ii) If the individual has not been authorized for unescorted access to category 1 or category 2 quantities of radioactive material, safeguards information, or safeguards information-modified handling, the licensee must complete a background investigation to determine the individual's trustworthiness and reliability. A trustworthiness and reliability determination shall be conducted by the reviewing official and shall include the background investigation elements contained in \u00a7 37.25(a)(2) through (a)(7).\n\n(4) Licensees need not subject the following individuals to the background investigation elements for protection of information:\n\n(i) The categories of individuals listed in \u00a7 37.29(a)(1) through (13); or\n\n(ii) Security service provider employees, provided written verification that the employee has been determined to be trustworthy and reliable, by the required background investigation in \u00a7 37.25(a)(2) through (a)(7), has been provided by the security service provider.\n\n(5) The licensee shall document the basis for concluding that an individual is trustworthy and reliable and should be granted access to the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access.\n\n(6) Licensees shall maintain a list of persons currently approved for access to the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access. When a licensee determines that a person no longer needs access to the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access, or no longer meets the access authorization requirements for access to the information, the licensee shall remove the person from the approved list as soon as possible, but no later than 7 working days, and take prompt measures to ensure that the individual is unable to obtain the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access.\n\n(7) When not in use, the licensee shall store its security plan, implementing procedures, and the list of individuals that have been approved for unescorted access in a manner to prevent unauthorized access. Information stored in nonremovable electronic form must be password protected.\n\n(8) The licensee shall retain as a record for 3 years after the document is no longer needed:\n\n(i) A copy of the information protection procedures; and\n\n(ii) The list of individuals approved for access to the security plan, implementing procedures, or the list of individuals that have been approved for unescorted access."], ["10:10:1.0.1.1.27.3.94.3", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.45 LLEA coordination.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 83 FR 30288, June 28, 2018]", "(a) A licensee subject to this subpart shall coordinate, to the extent practicable, with an LLEA for responding to threats to the licensee's facility, including any necessary armed response. The information provided to the LLEA must include:\n\n(1) A description of the facilities and the category 1 and category 2 quantities of radioactive materials along with a description of the licensee's security measures that have been implemented to comply with this subpart; and\n\n(2) A notification that the licensee will request a timely armed response by the LLEA to any actual or attempted theft, sabotage, or diversion of category 1 or category 2 quantities of material.\n\n(b) The licensee shall notify the appropriate NRC regional office listed in \u00a7 30.6(b)(2) of this chapter within 3 business days if:\n\n(1) The LLEA has not responded to the request for coordination within 60 days of the coordination request; or\n\n(2) The LLEA notifies the licensee that the LLEA does not plan to participate in coordination activities.\n\n(c) The licensee shall document its efforts to coordinate with the LLEA. The documentation must be kept for 3 years.\n\n(d) The licensee shall coordinate with the LLEA at least every 12 months, or when changes to the facility design or operation adversely affect the potential vulnerability of the licensee's material to theft, sabotage, or diversion."], ["10:10:1.0.1.1.27.3.94.4", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.47 Security zones.", "NRC", "", "", "", "(a) Licensees shall ensure that all aggregated category 1 and category 2 quantities of radioactive material are used or stored within licensee-established security zones. Security zones may be permanent or temporary.\n\n(b) Temporary security zones must be established as necessary to meet the licensee's transitory or intermittent business activities, such as periods of maintenance, source delivery, and source replacement.\n\n(c) Security zones must, at a minimum, allow unescorted access only to approved individuals through:\n\n(1) Isolation of category 1 and category 2 quantities of radioactive materials by the use of continuous physical barriers that allow access to the security zone only through established access control points. A physical barrier is a natural or man-made structure or formation sufficient for the isolation of the category 1 or category 2 quantities of radioactive material within a security zone; or\n\n(2) Direct control of the security zone by approved individuals at all times; or\n\n(3) A combination of continuous physical barriers and direct control.\n\n(d) For category 1 quantities of radioactive material during periods of maintenance, source receipt, preparation for shipment, installation, or source removal or exchange, the licensee shall, at a minimum, provide sufficient individuals approved for unescorted access to maintain continuous surveillance of sources in temporary security zones and in any security zone in which physical barriers or intrusion detection systems have been disabled to allow such activities.\n\n(e) Individuals not approved for unescorted access to category 1 or category 2 quantities of radioactive material must be escorted by an approved individual when in a security zone."], ["10:10:1.0.1.1.27.3.94.5", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.49 Monitoring, detection, and assessment.", "NRC", "", "", "", "(a)  Monitoring and detection.  (1) Licensees shall establish and maintain the capability to continuously monitor and detect without delay all unauthorized entries into its security zones. Licensees shall provide the means to maintain continuous monitoring and detection capability in the event of a loss of the primary power source, or provide for an alarm and response in the event of a loss of this capability to continuously monitor and detect unauthorized entries.\n\n(2) Monitoring and detection must be performed by:\n\n(i) A monitored intrusion detection system that is linked to an onsite or offsite central monitoring facility; or\n\n(ii) Electronic devices for intrusion detection alarms that will alert nearby facility personnel; or\n\n(iii) A monitored video surveillance system; or\n\n(iv) Direct visual surveillance by approved individuals located within the security zone; or\n\n(v) Direct visual surveillance by a licensee designated individual located outside the security zone.\n\n(3) A licensee subject to this subpart shall also have a means to detect unauthorized removal of the radioactive material from the security zone. This detection capability must provide:\n\n(i) For category 1 quantities of radioactive material, immediate detection of any attempted unauthorized removal of the radioactive material from the security zone. Such immediate detection capability must be provided by:\n\n(A) Electronic sensors linked to an alarm; or\n\n(B) Continuous monitored video surveillance; or\n\n(C) Direct visual surveillance.\n\n(ii) For category 2 quantities of radioactive material, weekly verification through physical checks, tamper indicating devices, use, or other means to ensure that the radioactive material is present.\n\n(b)  Assessment.  Licensees shall immediately assess each actual or attempted unauthorized entry into the security zone to determine whether the unauthorized access was an actual or attempted theft, sabotage, or diversion.\n\n(c)  Personnel communications and data transmission.  For personnel and automated or electronic systems supporting the licensee's monitoring, detection, and assessment systems, licensees shall:\n\n(1) Maintain continuous capability for personnel communication and electronic data transmission and processing among site security systems; and\n\n(2) Provide an alternative communication capability for personnel, and an alternative data transmission and processing capability, in the event of a loss of the primary means of communication or data transmission and processing. Alternative communications and data transmission systems may not be subject to the same failure modes as the primary systems.\n\n(d)  Response.  Licensees shall immediately respond to any actual or attempted unauthorized access to the security zones, or actual or attempted theft, sabotage, or diversion of category 1 or category 2 quantities of radioactive material at licensee facilities or temporary job sites. For any unauthorized access involving an actual or attempted theft, sabotage, or diversion of category 1 or category 2 quantities of radioactive material, the licensee's response shall include requesting, without delay, an armed response from the LLEA."], ["10:10:1.0.1.1.27.3.94.6", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.51 Maintenance and testing.", "NRC", "", "", "", "(a) Each licensee subject to this subpart shall implement a maintenance and testing program to ensure that intrusion alarms, associated communication systems, and other physical components of the systems used to secure or detect unauthorized access to radioactive material are maintained in operable condition and are capable of performing their intended function when needed. The equipment relied on to meet the security requirements of this part must be inspected and tested for operability and performance at the manufacturer's suggested frequency. If there is no suggested manufacturer's suggested frequency, the testing must be performed at least annually, not to exceed 12 months.\n\n(b) The licensee shall maintain records on the maintenance and testing activities for 3 years."], ["10:10:1.0.1.1.27.3.94.7", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.53 Requirements for mobile devices.", "NRC", "", "", "", "Each licensee that possesses mobile devices containing category 1 or category 2 quantities of radioactive material must:\n\n(a) Have two independent physical controls that form tangible barriers to secure the material from unauthorized removal when the device is not under direct control and constant surveillance by the licensee; and\n\n(b) For devices in or on a vehicle or trailer, unless the health and safety requirements for a site prohibit the disabling of the vehicle, the licensee shall utilize a method to disable the vehicle or trailer when not under direct control and constant surveillance by the licensee. Licensees shall not rely on the removal of an ignition key to meet this requirement."], ["10:10:1.0.1.1.27.3.94.8", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.55 Security program review.", "NRC", "", "", "", "(a) Each licensee shall be responsible for the continuing effectiveness of the security program. Each licensee shall ensure that the security program is reviewed to confirm compliance with the requirements of this subpart and that comprehensive actions are taken to correct any noncompliance that is identified. The review must include the radioactive material security program content and implementation. Each licensee shall periodically (at least annually) review the security program content and implementation.\n\n(b) The results of the review, along with any recommendations, must be documented. Each review report must identify conditions that are adverse to the proper performance of the security program, the cause of the condition(s), and, when appropriate, recommend corrective actions, and corrective actions taken. The licensee shall review the findings and take any additional corrective actions necessary to preclude repetition of the condition, including reassessment of the deficient areas where indicated.\n\n(c) The licensee shall maintain the review documentation for 3 years."], ["10:10:1.0.1.1.27.3.94.9", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "C", "Subpart C\u2014Physical Protection Requirements During Use", "", "\u00a7 37.57 Reporting of events.", "NRC", "", "", "", "(a) The licensee shall immediately notify the LLEA after determining that an unauthorized entry resulted in an actual or attempted theft, sabotage, or diversion of a category 1 or category 2 quantity of radioactive material. As soon as possible after initiating a response, but not at the expense of causing delay or interfering with the LLEA response to the event, the licensee shall notify the NRC's Operations Center (301-816-5100). In no case shall the notification to the NRC be later than 4 hours after the discovery of any attempted or actual theft, sabotage, or diversion.\n\n(b) The licensee shall assess any suspicious activity related to possible theft, sabotage, or diversion of category 1 or category 2 quantities of radioactive material and notify the LLEA as appropriate. As soon as possible but not later than 4 hours after notifying the LLEA, the licensee shall notify the NRC's Operations Center (301-816-5100).\n\n(c) The initial telephonic notification required by paragraph (a) of this section must be followed within a period of 30 days by a written report submitted to the NRC by an appropriate method listed in \u00a7 37.7. The report must include sufficient information for NRC analysis and evaluation, including identification of any necessary corrective actions to prevent future instances."], ["10:10:1.0.1.1.27.4.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.71 Additional requirements for transfer of category 1 and category 2 quantities of radioactive material.", "NRC", "", "", "", "A licensee transferring a category 1 or category 2 quantity of radioactive material to a licensee of the Commission or an Agreement State shall meet the license verification provisions listed below instead of those listed in \u00a7 30.41(d) of this chapter:\n\n(a) Any licensee transferring category 1 quantities of radioactive material to a licensee of the Commission or an Agreement State, prior to conducting such transfer, shall verify with the NRC's license verification system or the license issuing authority that the transferee's license authorizes the receipt of the type, form, and quantity of radioactive material to be transferred and that the licensee is authorized to receive radioactive material at the location requested for delivery. If the verification is conducted by contacting the license issuing authority, the transferor shall document the verification. For transfers within the same organization, the licensee does not need to verify the transfer.\n\n(b) Any licensee transferring category 2 quantities of radioactive material to a licensee of the Commission or an Agreement State, prior to conducting such transfer, shall verify with the NRC's license verification system or the license issuing authority that the transferee's license authorizes the receipt of the type, form, and quantity of radioactive material to be transferred. If the verification is conducted by contacting the license issuing authority, the transferor shall document the verification. For transfers within the same organization, the licensee does not need to verify the transfer.\n\n(c) In an emergency where the licensee cannot reach the license issuing authority and the license verification system is nonfunctional, the licensee may accept a written certification by the transferee that it is authorized by license to receive the type, form, and quantity of radioactive material to be transferred. The certification must include the license number, current revision number, issuing agency, expiration date, and for a category 1 shipment the authorized address. The licensee shall keep a copy of the certification. The certification must be confirmed by use of the NRC's license verification system or by contacting the license issuing authority by the end of the next business day.\n\n(d) The transferor shall keep a copy of the verification documentation as a record for 3 years."], ["10:10:1.0.1.1.27.4.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.73 Applicability of physical protection of category 1 and category 2 quantities of radioactive material during transit.", "NRC", "", "", "", "(a) For shipments of category 1 quantities of radioactive material, each shipping licensee shall comply with the requirements for physical protection contained in \u00a7\u00a7 37.75(a) and (e); 37.77; 37.79(a)(1), (b)(1), and (c); and 37.81(a), (c), (e), (g) and (h).\n\n(b) For shipments of category 2 quantities of radioactive material, each shipping licensee shall comply with the requirements for physical protection contained in \u00a7\u00a7 37.75(b) through (e); 37.79(a)(2), (a)(3), (b)(2), and (c); and 37.81(b), (d), (f), (g), and (h). For those shipments of category 2 quantities of radioactive material that meet the criteria of \u00a7 71.97(b) of this chapter, the shipping licensee shall also comply with the advance notification provisions of \u00a7 71.97 of this chapter.\n\n(c) The shipping licensee shall be responsible for meeting the requirements of this subpart unless the receiving licensee has agreed in writing to arrange for the in-transit physical protection required under this subpart.\n\n(d) Each licensee that imports or exports category 1 quantities of radioactive material shall comply with the requirements for physical protection during transit contained in \u00a7\u00a7 37.75(a)(2) and (e); 37.77; 37.79(a)(1), (b)(1), and (c); and 37.81(a), (c), (e), (g), and (h) for the domestic portion of the shipment.\n\n(e) Each licensee that imports or exports category 2 quantities of radioactive material shall comply with the requirements for physical protection during transit contained in \u00a7\u00a7 37.79(a)(2), (a)(3), and (b)(2); and 37.81(b), (d), (f), (g), and (h) for the domestic portion of the shipment."], ["10:10:1.0.1.1.27.4.94.3", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.75 Preplanning and coordination of shipment of category 1 or category 2 quantities of radioactive material.", "NRC", "", "", "", "(a) Each licensee that plans to transport, or deliver to a carrier for transport, licensed material that is a category 1 quantity of radioactive material outside the confines of the licensee's facility or other place of use or storage shall:\n\n(1) Preplan and coordinate shipment arrival and departure times with the receiving licensee;\n\n(2) Preplan and coordinate shipment information with the governor or the governor's designee of any State through which the shipment will pass to:\n\n(i) Discuss the State's intention to provide law enforcement escorts; and\n\n(ii) Identify safe havens; and\n\n(3) Document the preplanning and coordination activities.\n\n(b) Each licensee that plans to transport, or deliver to a carrier for transport, licensed material that is a category 2 quantity of radioactive material outside the confines of the licensee's facility or other place of use or storage shall coordinate the shipment no-later-than arrival time and the expected shipment arrival with the receiving licensee. The licensee shall document the coordination activities.\n\n(c) Each licensee who receives a shipment of a category 2 quantity of radioactive material shall confirm receipt of the shipment with the originator. If the shipment has not arrived by the no-later-than arrival time, the receiving licensee shall notify the originator.\n\n(d) Each licensee, who transports or plans to transport a shipment of a category 2 quantity of radioactive material, and determines that the shipment will arrive after the no-later-than arrival time provided pursuant to paragraph (b) of this section, shall promptly notify the receiving licensee of the new no-later-than arrival time.\n\n(e) The licensee shall retain a copy of the documentation for preplanning and coordination and any revision thereof, as a record for 3 years."], ["10:10:1.0.1.1.27.4.94.4", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.77 Advance notification of shipment of category 1 quantities of radioactive material.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013; 78 FR 31821, May 28, 2013; 79 FR 58671, Sept. 30, 2014; 80 FR 74979, Dec. 1, 2015; 83 FR 30288, June 28, 2018; 83 FR 58723, Nov. 21, 2018]", "As specified in paragraphs (a) and (b) of this section, each licensee shall provide advance notification to the NRC and the governor of a State, or the governor's designee, of the shipment of licensed material in a category 1 quantity, through or across the boundary of the State, before the transport, or delivery to a carrier for transport of the licensed material outside the confines of the licensee's facility or other place of use or storage.\n\n(a)  Procedures for submitting advance notification.  (1) The notification must be made to the NRC and to the office of each appropriate governor or governor's designee. The contact information, including telephone and mailing addresses, of governors and governors' designees, is available on the NRC's Web site at  https://scp.nrc.gov/special/designee.pdf.  A list of the contact information is also available upon request from the Director, Division of Materials Safety, Security, State, and Tribal Programs , Office of Nuclear Material Safety and Safeguards., U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. Notifications to the NRC must be to the NRC's Director, Office of Nuclear Security and Incident Response, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. The notification to the NRC may be made by email to  RAMQC_SHIPMENTS@nrc.gov  or by fax to 301-816-5151.\n\n(2) A notification delivered by mail must be postmarked at least 7 days before transport of the shipment commences at the shipping facility.\n\n(3) A notification delivered by any means other than mail must reach NRC at least 4 days before the transport of the shipment commences and must reach the office of the governor or the governor's designee at least 4 days before transport of a shipment within or through the State.\n\n(b)  Information to be furnished in advance notification of shipment.  Each advance notification of shipment of category 1 quantities of radioactive material must contain the following information, if available at the time of notification:\n\n(1) The name, address, and telephone number of the shipper, carrier, and receiver of the category 1 radioactive material;\n\n(2) The license numbers of the shipper and receiver;\n\n(3) A description of the radioactive material contained in the shipment, including the radionuclides and quantity;\n\n(4) The point of origin of the shipment and the estimated time and date that shipment will commence;\n\n(5) The estimated time and date that the shipment is expected to enter each State along the route;\n\n(6) The estimated time and date of arrival of the shipment at the destination; and\n\n(7) A point of contact, with a telephone number, for current shipment information.\n\n(c)  Revision notice.  (1) The licensee shall provide any information not previously available at the time of the initial notification, as soon as the information becomes available but not later than commencement of the shipment, to the governor of the State or the governor's designee and to the NRC's Director, Office and Incident Response, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001.\n\n(2) A licensee shall promptly notify the governor of the State or the governor's designee of any changes to the information provided in accordance with paragraphs (b) and (c)(1) of this section. The licensee shall also immediately notify the NRC's Director, Office of Nuclear Security and Incident Response, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001 of any such changes.\n\n(d)  Cancellation notice.  Each licensee who cancels a shipment for which advance notification has been sent shall send a cancellation notice to the governor of each State or to the governor's designee previously notified and to the NRC's Director, Office of Nuclear Security and Incident Response, U.S. Nuclear Regulatory Commission, Washington, DC 20555-0001. The licensee shall send the cancellation notice before the shipment would have commenced or as soon thereafter as possible. The licensee shall state in the notice that it is a cancellation and identify the advance notification that is being cancelled.\n\n(e)  Records.  The licensee shall retain a copy of the advance notification and any revision and cancellation notices as a record for 3 years.\n\n(f)  Protection of information.  State officials, State employees, and other individuals, whether or not licensees of the Commission or an Agreement State, who receive schedule information of the kind specified in \u00a7 37.77(b) shall protect that information against unauthorized disclosure as specified in \u00a7 37.43(d) of this part."], ["10:10:1.0.1.1.27.4.94.5", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.79 Requirements for physical protection of category 1 and category 2 quantities of radioactive material during shipment.", "NRC", "", "", "", "(a)  Shipments by road.  (1) Each licensee who transports, or delivers to a carrier for transport, in a single shipment, a category 1 quantity of radioactive material shall:\n\n(i) Ensure that movement control centers are established that maintain position information from a remote location. These control centers must monitor shipments 24 hours a day, 7 days a week, and have the ability to communicate immediately, in an emergency, with the appropriate law enforcement agencies.\n\n(ii) Ensure that redundant communications are established that allow the transport to contact the escort vehicle (when used) and movement control center at all times. Redundant communications may not be subject to the same interference factors as the primary communication.\n\n(iii) Ensure that shipments are continuously and actively monitored by a telemetric position monitoring system or an alternative tracking system reporting to a movement control center. A movement control center must provide positive confirmation of the location, status, and control over the shipment. The movement control center must be prepared to promptly implement preplanned procedures in response to deviations from the authorized route or a notification of actual, attempted, or suspicious activities related to the theft, loss, or diversion of a shipment. These procedures will include, but not be limited to, the identification of and contact information for the appropriate LLEA along the shipment route.\n\n(iv) Provide an individual to accompany the driver for those highway shipments with a driving time period greater than the maximum number of allowable hours of service in a 24-hour duty day as established by the Department of Transportation Federal Motor Carrier Safety Administration. The accompanying individual may be another driver.\n\n(v) Develop written normal and contingency procedures to address:\n\n(A) Notifications to the communication center and law enforcement agencies;\n\n(B) Communication protocols. Communication protocols must include a strategy for the use of authentication codes and duress codes and provisions for refueling or other stops, detours, and locations where communication is expected to be temporarily lost;\n\n(C) Loss of communications; and\n\n(D) Responses to an actual or attempted theft or diversion of a shipment.\n\n(vi) Each licensee who makes arrangements for the shipment of category 1 quantities of radioactive material shall ensure that drivers, accompanying personnel, and movement control center personnel have access to the normal and contingency procedures.\n\n(2) Each licensee that transports category 2 quantities of radioactive material shall maintain constant control and/or surveillance during transit and have the capability for immediate communication to summon appropriate response or assistance.\n\n(3) Each licensee who delivers to a carrier for transport, in a single shipment, a category 2 quantity of radioactive material shall:\n\n(i) Use carriers that have established package tracking systems. An established package tracking system is a documented, proven, and reliable system routinely used to transport objects of value. In order for a package tracking system to maintain constant control and/or surveillance, the package tracking system must allow the shipper or transporter to identify when and where the package was last and when it should arrive at the next point of control.\n\n(ii) Use carriers that maintain constant control and/or surveillance during transit and have the capability for immediate communication to summon appropriate response or assistance; and\n\n(iii) Use carriers that have established tracking systems that require an authorized signature prior to releasing the package for delivery or return.\n\n(b)  Shipments by rail.  (1) Each licensee who transports, or delivers to a carrier for transport, in a single shipment, a category 1 quantity of radioactive material shall:\n\n(i) Ensure that rail shipments are monitored by a telemetric position monitoring system or an alternative tracking system reporting to the licensee, third-party, or railroad communications center. The communications center shall provide positive confirmation of the location of the shipment and its status. The communications center shall implement preplanned procedures in response to deviations from the authorized route or to a notification of actual, attempted, or suspicious activities related to the theft or diversion of a shipment. These procedures will include, but not be limited to, the identification of and contact information for the appropriate LLEA along the shipment route.\n\n(ii) Ensure that periodic reports to the communications center are made at preset intervals.\n\n(2) Each licensee who transports, or delivers to a carrier for transport, in a single shipment, a category 2 quantity of radioactive material shall:\n\n(i) Use carriers that have established package tracking systems. An established package tracking system is a documented, proven, and reliable system routinely used to transport objects of value. In order for a package tracking system to maintain constant control and/or surveillance, the package tracking system must allow the shipper or transporter to identify when and where the package was last and when it should arrive at the next point of control.\n\n(ii) Use carriers that maintain constant control and/or surveillance during transit and have the capability for immediate communication to summon appropriate response or assistance; and\n\n(iii) Use carriers that have established tracking systems that require an authorized signature prior to releasing the package for delivery or return.\n\n(c)  Investigations.  Each licensee who makes arrangements for the shipment of category 1 quantities of radioactive material shall immediately conduct an investigation upon the discovery that a category 1 shipment is lost or missing. Each licensee who makes arrangements for the shipment of category 2 quantities of radioactive material shall immediately conduct an investigation, in coordination with the receiving licensee, of any shipment that has not arrived by the designated no-later-than arrival time."], ["10:10:1.0.1.1.27.4.94.6", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "D", "Subpart D\u2014Physical Protection in Transit", "", "\u00a7 37.81 Reporting of events.", "NRC", "", "", "[78 FR 17007, Mar. 19, 2013, as amended at 83 FR 58723, Nov. 21, 2018]", "(a) The shipping licensee shall notify the appropriate LLEA and the NRC's Operations Center (301-816-5100) within 1 hour of its determination that a shipment of category 1 quantities of radioactive material is lost or missing. The appropriate LLEA would be the law enforcement agency in the area of the shipment's last confirmed location. During the investigation required by \u00a7 37.79(c), the shipping licensee will provide agreed upon updates to the NRC's Operations Center on the status of the investigation.\n\n(b) The shipping licensee shall notify the NRC's Operations Center (301-816-5100) within 4 hours of its determination that a shipment of category 2 quantities of radioactive material is lost or missing. If, after 24 hours of its determination that the shipment is lost or missing, the radioactive material has not been located and secured, the licensee shall immediately notify the NRC's Operations Center.\n\n(c) The shipping licensee shall notify the designated LLEA along the shipment route as soon as possible upon discovery of any actual or attempted theft or diversion of a shipment or suspicious activities related to the theft or diversion of a shipment of a category 1 quantity of radioactive material. As soon as possible after notifying the LLEA, the licensee shall notify the NRC's Operations Center (301-816-5100) upon discovery of any actual or attempted theft or diversion of a shipment, or any suspicious activity related to the shipment of category 1 radioactive material.\n\n(d) The shipping licensee shall notify the NRC's Operations Center (301-816-5100) as soon as possible upon discovery of any actual or attempted theft or diversion of a shipment, or any suspicious activity related to the shipment, of a category 2 quantity of radioactive material.\n\n(e) The shipping licensee shall notify the NRC's Operations Center (301-816-5100) and the LLEA as soon as possible upon recovery of any lost or missing category 1 quantities of radioactive material.\n\n(f) The shipping licensee shall notify the NRC's Operations Center (301-816-5100) as soon as possible upon recovery of any lost or missing category 2 quantities of radioactive material.\n\n(g) The initial telephonic notification required by paragraphs (a) through (d) of this section must be followed within a period of 30 days by a written report submitted to the NRC by an appropriate method listed in \u00a7 37.7. A written report is not required for notifications on suspicious activities required by paragraphs (c) and (d) of this section. The report must set forth the following information:\n\n(1) A description of the licensed material involved, including kind, quantity, and chemical and physical form;\n\n(2) A description of the circumstances under which the loss or theft occurred;\n\n(3) A statement of disposition, or probable disposition, of the licensed material involved;\n\n(4) Actions that have been taken, or will be taken, to recover the material; and\n\n(5) Procedures or measures that have been, or will be, adopted to ensure against a recurrence of the loss or theft of licensed material.\n\n(h) Subsequent to filing the written report, the licensee shall also report any additional substantive information on the loss or theft within 30 days after the licensee learns of such information."], ["10:10:1.0.1.1.27.6.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "F", "Subpart F\u2014Records", "", "\u00a7 37.101 Form of records.", "NRC", "", "", "", "Each record required by this part must be legible throughout the retention period specified by each Commission regulation. The record may be the original or a reproduced copy or a microform, provided that the copy or microform is authenticated by authorized personnel and that the microform is capable of producing a clear copy throughout the required retention period. The record may also be stored in electronic media with the capability for producing legible, accurate, and complete records during the required retention period. Records such as letters, drawings, and specifications, must include all pertinent information such as stamps, initials, and signatures. The licensee shall maintain adequate safeguards against tampering with and loss of records."], ["10:10:1.0.1.1.27.6.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "F", "Subpart F\u2014Records", "", "\u00a7 37.103 Record retention.", "NRC", "", "", "", "Licensees shall maintain the records that are required by the regulations in this part for the period specified by the appropriate regulation. If a retention period is not otherwise specified, these records must be retained until the Commission terminates the facility's license. All records related to this part may be destroyed upon Commission termination of the facility license."], ["10:10:1.0.1.1.27.7.94.1", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "G", "Subpart G\u2014Enforcement", "", "\u00a7 37.105 Inspections.", "NRC", "", "", "", "(a) Each licensee shall afford to the Commission at all reasonable times opportunity to inspect category 1 or category 2 quantities of radioactive material and the premises and facilities wherein the nuclear material is used, produced, or stored.\n\n(b) Each licensee shall make available to the Commission for inspection, upon reasonable notice, records kept by the licensee pertaining to its receipt, possession, use, acquisition, import, export, or transfer of category 1 or category 2 quantities of radioactive material."], ["10:10:1.0.1.1.27.7.94.2", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "G", "Subpart G\u2014Enforcement", "", "\u00a7 37.107 Violations.", "NRC", "", "", "", "(a) The Commission may obtain an injunction or other court order to prevent a violation of the provisions of\u2014\n\n(1) The Atomic Energy Act of 1954, as amended;\n\n(2) Title II of the Energy Reorganization Act of 1974, as amended; or\n\n(3) A regulation or order issued pursuant to those Acts.\n\n(b) The Commission may obtain a court order for the payment of a civil penalty imposed under section 234 of the Atomic Energy Act:\n\n(1) For violations of\u2014\n\n(i) Sections 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109 of the Atomic Energy Act of 1954, as amended:\n\n(ii) Section 206 of the Energy Reorganization Act;\n\n(iii) Any rule, regulation, or order issued pursuant to the sections specified in paragraph (b)(1)(i) of this section;\n\n(iv) Any term, condition, or limitation of any license issued under the sections specified in paragraph (b)(1)(i) of this section.\n\n(2) For any violation for which a license may be revoked under Section 186 of the Atomic Energy Act of 1954, as amended."], ["10:10:1.0.1.1.27.7.94.3", 10, "Energy", "I", "", "37", "PART 37\u2014PHYSICAL PROTECTION OF CATEGORY 1 AND CATEGORY 2 QUANTITIES OF RADIOACTIVE MATERIAL", "G", "Subpart G\u2014Enforcement", "", "\u00a7 37.109 Criminal penalties.", "NRC", "", "", "", "(a) Section 223 of the Atomic Energy Act of 1954, as amended, provides for criminal sanctions for willful violation of, attempted violation of, or conspiracy to violate, any regulation issued under sections 161b, 161i, or 161o of the Act. For purposes of section 223, all the regulations in this part 37 are issued under one or more of sections 161b, 161i, or 161o, except for the sections listed in paragraph (b) of this section.\n\n(b) The regulations in this part 37 that are not issued under sections 161b, 161i, or 161o for the purposes of section 223 are as follows: \u00a7\u00a7 37.1, 37.3, 37.5, 37.7, 37.9, 37.11, 37.13, 37.107, and 37.109."], ["17:17:1.0.1.1.30.1.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.1 Scope.", "CFTC", "", "", "", "The provisions of this part shall apply to every swap execution facility that is registered or is applying to become registered as a swap execution facility under section 5h of the Commodity Exchange Act (\u201cthe Act\u201d); provided, however, nothing in this provision affects the eligibility of swap execution facilities to operate under the provisions of parts 38 or 49 of this chapter."], ["17:17:1.0.1.1.30.1.7.10", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.10 Process for a swap execution facility to make a swap available to trade.", "CFTC", "", "", "[78 FR 33630, June 4, 2013]", "(a)(1)  Required submission.  A swap execution facility that makes a swap available to trade in accordance with paragraph (b) of this section, shall submit to the Commission its determination with respect to such swap as a rule, as that term is defined by \u00a7 40.1 of this chapter, pursuant to the procedures under part 40 of this chapter.\n\n(2)  Listing requirement.  A swap execution facility that makes a swap available to trade must demonstrate that it lists or offers that swap for trading on its trading system or platform.\n\n(b)  Factors to consider.  To make a swap available to trade, for purposes of section 2(h)(8) of the Act, a swap execution facility shall consider, as appropriate, the following factors with respect to such swap:\n\n(1) Whether there are ready and willing buyers and sellers;\n\n(2) The frequency or size of transactions;\n\n(3) The trading volume;\n\n(4) The number and types of market participants;\n\n(5) The bid/ask spread; or\n\n(6) The usual number of resting firm or indicative bids and offers.\n\n(c)  Applicability.  Upon a determination that a swap is available to trade on any swap execution facility or designated contract market pursuant to part 40 of this chapter, all other swap execution facilities and designated contract markets shall comply with the requirements of section 2(h)(8)(A) of the Act in listing or offering such swap for trading.\n\n(d)  Removal \u2014(1)  Determination.  The Commission may issue a determination that a swap is no longer available to trade upon determining that no swap execution facility or designated contract market lists such swap for trading.\n\n(2)  Delegation of Authority.  (i) The Commission hereby delegates, until it orders otherwise, to the Director of the Division of Market Oversight or such other employee or employees as the Director may designate from time to time, the authority to issue a determination that a swap is no longer available to trade.\n\n(ii) The Director may submit to the Commission for its consideration any matter that has been delegated in this section. Nothing in this section prohibits the Commission, at its election, from exercising the authority delegated in this section."], ["17:17:1.0.1.1.30.1.7.11", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.11 [Reserved]", "CFTC", "", "", "", ""], ["17:17:1.0.1.1.30.1.7.12", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.12 Trade execution compliance schedule.", "CFTC", "", "", "[78 FR 33630, June 4, 2013]", "(a) A swap transaction shall be subject to the requirements of section 2(h)(8) of the Act upon the later of:\n\n(1) The applicable deadline established under the compliance schedule provided under \u00a7 50.25(b) of this chapter; or\n\n(2) Thirty days after the available-to-trade determination submission or certification for that swap is, respectively, deemed approved under \u00a7 40.5 of this chapter or deemed certified under \u00a7 40.6 of this chapter.\n\n(b) Nothing in this section shall prohibit any counterparty from complying voluntarily with the requirements of section 2(h)(8) of the Act sooner than as provided in paragraph (a) of this section."], ["17:17:1.0.1.1.30.1.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.2 Applicable provisions.", "CFTC", "", "", "", "A swap execution facility shall comply with the requirements of this part and all other applicable Commission regulations, including \u00a7 1.60 and part 9 of this chapter, and including any related definitions and cross-referenced sections."], ["17:17:1.0.1.1.30.1.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.3 Requirements and procedures for registration.", "CFTC", "", "", "[78 FR 33582, June 4, 2013, as amended at 85 FR 82329, Dec. 18, 2020; 89 FR 71811, Sept. 4, 2024]", "(a)  Requirements for registration.  (1) Any person operating a facility that offers a trading system or platform in which more than one market participant has the ability to execute or trade swaps with more than one other market participant on the system or platform shall register the facility as a swap execution facility under this part or as a designated contract market under part 38 of this chapter.\n\n(2)  Minimum trading functionality.  A swap execution facility shall, at a minimum, offer an Order Book as defined in paragraph (a)(3) of this section.\n\n(3)  Order book  means:\n\n(i) An electronic trading facility, as that term is defined in section 1a(16) of the Act;\n\n(ii) A trading facility, as that term is defined in section 1a(51) of the Act; or\n\n(iii) A trading system or platform in which all market participants in the trading system or platform have the ability to enter multiple bids and offers, observe or receive bids and offers entered by other market participants, and transact on such bids and offers.\n\n(4) A swap execution facility is not required to provide an order book under this section for transactions defined in \u00a7 37.9(d)(2), (3), and (4), except that a swap execution facility must provide an order book under this section for Required Transactions that are components of transactions defined in \u00a7 37.9(d)(2), (3), and (4) of this part when such Required Transactions are not executed as components of transactions defined in \u00a7 37.9(d)(2), (3), and (4).\n\n(b)  Procedures for full registration.  (1) An applicant requesting registration as a swap execution facility shall:\n\n(i) File electronically a complete Form SEF as set forth in appendix A to this part, or any successor forms, and all information and documentation described in such forms with the Secretary of the Commission in the form and manner specified by the Commission;\n\n(ii) Provide to the Commission, upon the Commission's request, any additional information and documentation necessary to review an application; and\n\n(iii) Request from the Commission a unique, extensible, alphanumeric code for the purpose of identifying the swap execution facility pursuant to part 45 of this chapter.\n\n(2)  Request for confidential treatment.  (i) An applicant requesting registration as a swap execution facility shall identify with particularity any information in the application that will be subject to a request for confidential treatment pursuant to \u00a7 145.9 of this chapter.\n\n(ii) Section 40.8 of this chapter sets forth those sections of the application that will be made publicly available, notwithstanding a request for confidential treatment pursuant to \u00a7 145.9 of this chapter.\n\n(3)  Amendment of application prior or subsequent to full registration.  An applicant amending a pending application for registration as a swap execution facility or requesting an amendment to an order of registration shall file an amended application electronically with the Secretary of the Commission in the manner specified by the Commission. A swap execution facility shall file any amendment to an application subsequent to registration as a submission under part 40 of this chapter or as specified by the Commission.\n\n(4)  Effect of incomplete application.  If an application is incomplete pursuant to paragraph (b)(1) of this section, the Commission shall notify the applicant that its application will not be deemed to have been submitted for purposes of the Commission's review.\n\n(5)  Commission review period.  For an applicant who submits its application for registration as a swap execution facility on or after August 5, 2015 the Commission shall review such application pursuant to the 180-day timeframe and procedures specified in section 6(a) of the Act.\n\n(6)  Commission determination.  (i) The Commission shall issue an order granting registration upon a Commission determination, in its own discretion, that the applicant has demonstrated compliance with the Act and the Commission's regulations applicable to swap execution facilities. If deemed appropriate, the Commission may issue an order granting registration subject to conditions.\n\n(ii) The Commission may issue an order denying registration upon a Commission determination, in its own discretion, that the applicant has not demonstrated compliance with the Act and the Commission's regulations applicable to swap execution facilities.\n\n(c)  Temporary registration.  An applicant seeking registration as a swap execution facility may request that the Commission grant the applicant temporary registration by complying with the requirements in paragraph (c)(1) of this section.\n\n(1)  Requirements for temporary registration.  The Commission shall grant a request for temporary registration upon a Commission determination that the applicant has:\n\n(i) Completed all of the requirements under paragraph (b)(1)(i) of this section; and\n\n(ii) Submitted a notice to the Commission, concurrent with the filing of the application under paragraph (b)(1)(i) of this section, requesting that the Commission grant the applicant temporary registration. An applicant that is currently operating a swaps-trading platform in reliance upon either an exemption granted by the Commission or some form of no-action relief granted by the Commission staff shall include in such notice a certification that the applicant is operating pursuant to such exemption or no-action relief.\n\n(iii) The Commission may deny a request for temporary registration upon a Commission determination that the applicant has not met the requirements under paragraphs (c)(1)(i) and (c)(1)(ii) of this section.\n\n(2)  Operation pursuant to a grant of temporary registration.  An applicant may operate as a swap execution facility under temporary registration upon receipt of a notice from the Commission granting such temporary registration, but in no case may begin operating as a temporarily registered swap execution facility before August 5, 2013.\n\n(3)  Expiration of temporary registration.  The temporary registration for a swap execution facility shall expire on the earlier of the date that:\n\n(i) The Commission grants or denies registration of the swap execution facility as provided under paragraph (b) of this section;\n\n(ii) The swap execution facility withdraws its application for registration pursuant to paragraph (f) of this section; or\n\n(iii) Temporary registration terminates pursuant to paragraph (c)(5) of this section.\n\n(4)  Effect of temporary registration.  A grant of temporary registration by the Commission does not affect the right of the Commission to grant or deny registration as provided under paragraph (b) of this section.\n\n(5)  Termination of temporary registration.  Paragraph (c) of this section shall terminate two years from the effective date of this regulation except as provided for under paragraph (c)(6) of this section and except for an applicant who requested that the Commission grant the applicant temporary registration by complying with the requirements in paragraph (c)(1) of this section before the termination of paragraph (c) of this section and has not been granted or denied registration under paragraph (b)(6) of this section by the time of the termination of paragraph (c) of this section. Such an applicant may operate as a swap execution facility under temporary registration upon receipt of a notice from the Commission granting such temporary registration until the Commission grants or denies registration pursuant to paragraph (b)(6) of this section. On the termination date of paragraph (c) of this section, the Commission shall review such applicant's application pursuant to the time period and procedures in paragraph (b)(5) of this section.\n\n(6)  Temporary registration for applicants that are operational designated contract markets.  An applicant that is an operational designated contract market and is also seeking to register as a swap execution facility in order to transfer one or more of its contracts may request that the Commission grant the applicant temporary registration by complying with the requirements in paragraph (c)(1) of this section. The termination of temporary registration provision in paragraph (c)(5) of this section shall not apply to an applicant that is a non-dormant designated contract market as described in this paragraph.\n\n(d)  Reinstatement of dormant registration.  A dormant swap execution facility as defined in section 40.1 of this chapter may reinstate its registration under the procedures of paragraph (b) of this section. The applicant may rely upon previously submitted materials if such materials accurately describe the dormant swap execution facility's conditions at the time that it applies for reinstatement of its registration.\n\n(e)  Request for transfer of registration.  (1) A swap execution facility seeking to transfer its registration from its current legal entity to a new legal entity as a result of a corporate change shall file a request for approval to transfer such registration with the Secretary of the Commission in the form and manner specified by the Commission.\n\n(2)  Timeline for filing a request for transfer of registration.  A request for transfer of registration shall be filed no later than three months prior to the anticipated corporate change; or in the event that the swap execution facility could not have known of the anticipated change three months prior to the anticipated change, as soon as it knows of such change.\n\n(3)  Required information.  The request for transfer of registration shall include the following:\n\n(i) The underlying agreement that governs the corporate change;\n\n(ii) A description of the corporate change, including the reason for the change and its impact on the swap execution facility, including its governance and operations, and its impact on the rights and obligations of market participants;\n\n(iii) A discussion of the transferee's ability to comply with the Act, including the core principles applicable to swap execution facilities, and the Commission's regulations thereunder;\n\n(iv) The governing documents of the transferee, including, but not limited to, articles of incorporation and bylaws;\n\n(v) The transferee's rules marked to show changes from the current rules of the swap execution facility;\n\n(vi) A representation by the transferee that it:\n\n(A) Will be the surviving entity and successor-in-interest to the transferor swap execution facility and will retain and assume, without limitation, all of the assets and liabilities of the transferor;\n\n(B) Will assume responsibility for complying with all applicable provisions of the Act and the Commission's regulations promulgated thereunder, including this part and appendices thereto;\n\n(C) Will assume, maintain, and enforce all rules implementing and complying with the core principles applicable to swap execution facilities, including the adoption of the transferor's rulebook, as amended in the request, and that any such amendments will be submitted to the Commission pursuant to section 5c(c) of the Act and part 40 of this chapter;\n\n(D) Will comply with all self-regulatory responsibilities except if otherwise indicated in the request, and will maintain and enforce all self-regulatory programs; and\n\n(E) Will notify market participants of all changes to the transferor's rulebook prior to the transfer and will further notify market participants of the concurrent transfer of the registration to the transferee upon Commission approval and issuance of an order permitting this transfer.\n\n(vii) A representation by the transferee that upon the transfer:\n\n(A) It will assume responsibility for and maintain compliance with core principles for all swaps previously made available for trading through the transferor, whether by certification or approval; and\n\n(B) None of the proposed rule changes will affect the rights and obligations of any market participant.\n\n(4)  Commission determination.  Upon review of a request for transfer of registration, the Commission, as soon as practicable, shall issue an order either approving or denying the request.\n\n(f)  Request for withdrawal of application for registration.  An applicant for registration as a swap execution facility may withdraw its application submitted pursuant to paragraph (b) of this section by filing a withdrawal request electronically with the Secretary of the Commission. Withdrawal of an application for registration shall not affect any action taken or to be taken by the Commission based upon actions, activities, or events occurring during the time that the application was pending with the Commission.\n\n(g)  Request for vacation of registration.  A swap execution facility may request that its registration be vacated under section 7 of the Act by filing a vacation request electronically with the Secretary of the Commission. Vacation of registration shall not affect any action taken or to be taken by the Commission based upon actions, activities, or events occurring during the time that the swap execution facility was registered by the Commission.\n\n(h)  Delegation of authority.  The Commission hereby delegates, until it orders otherwise, to the Director of the Division of Market Oversight or such other employee or employees as the Director may designate from time to time, upon consultation with the General Counsel or the General Counsel's designee, authority to notify an applicant seeking registration that its application is incomplete and that it will not be deemed to have been submitted for purposes of the Commission's review, to notify an applicant seeking registration under section 6(a) of the Act that its application is materially incomplete and the running of the 180-day period is stayed, and to notify an applicant seeking temporary registration that its request is granted or denied. The Director may submit to the Commission for its consideration any matter that has been delegated in this paragraph. Nothing in this paragraph prohibits the Commission, at its election, from exercising the authority delegated in this paragraph."], ["17:17:1.0.1.1.30.1.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.4 Procedures for listing products and implementing rules.", "CFTC", "", "", "", "(a) An applicant for registration as a swap execution facility may submit a swap's terms and conditions prior to listing the product as part of its application for registration.\n\n(b) Any swap terms and conditions or rules submitted as part of a swap execution facility's application for registration shall be considered for approval by the Commission at the time the Commission issues the swap execution facility's order of registration.\n\n(c) After the Commission issues the order of registration, a swap execution facility shall submit a swap's terms and conditions, including amendments to such terms and conditions, new rules, or rule amendments pursuant to the procedures under part 40 of this chapter.\n\n(d) Any swap terms and conditions or rules submitted as part of an application to reinstate the registration of a dormant swap execution facility, as defined in \u00a7 40.1 of this chapter, shall be considered for approval by the Commission at the time the Commission approves the dormant swap execution facility's reinstatement of registration."], ["17:17:1.0.1.1.30.1.7.5", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.5 Information relating to swap execution facility compliance.", "CFTC", "", "", "", "(a)  Request for information.  Upon the Commission's request, a swap execution facility shall file with the Commission information related to its business as a swap execution facility in the form and manner and within the time period as the Commission specifies in its request.\n\n(b)  Demonstration of compliance.  Upon the Commission's request, a swap execution facility shall file with the Commission a written demonstration, containing supporting data, information, and documents that it is in compliance with one or more core principles or with its other obligations under the Act or the Commission's regulations as the Commission specifies in its request. The swap execution facility shall file such written demonstration in the form and manner and within the time period as the Commission specifies in its request.\n\n(c)  Equity interest transfer \u2014(1)  Equity interest transfer notification.  A swap execution facility shall file with the Commission a notification of each transaction that the swap execution facility enters into involving the transfer of fifty percent or more of the equity interest in the swap execution facility. The Commission may, upon receiving such notification, request supporting documentation of the transaction.\n\n(2)  Timing of notification.  The equity interest transfer notice described in paragraph (c)(1) of this section shall be filed electronically with the Secretary of the Commission at its Washington, DC headquarters at  submissions@cftc.gov  and the Division of Market Oversight at  DMOSubmissions@cftc.gov,  at the earliest possible time but in no event later than the open of business ten business days following the date upon which the swap execution facility enters into a firm obligation to transfer the equity interest.\n\n(3)  Rule filing.  Notwithstanding the foregoing, if any aspect of an equity interest transfer described in paragraph (c)(1) of this section requires a swap execution facility to file a rule as defined in part 40 of this chapter, then the swap execution facility shall comply with the requirements of section 5c(c) of the Act and part 40 of this chapter, and all other applicable Commission regulations.\n\n(4)  Certification.  Upon a transfer of an equity interest of fifty percent or more in a swap execution facility, the swap execution facility shall file electronically with the Secretary of the Commission at its Washington, DC headquarters at  submissions@cftc.gov  and the Division of Market Oversight at  DMOSubmissions@cftc.gov,  a certification that the swap execution facility meets all of the requirements of section 5h of the Act and the Commission regulations adopted thereunder, no later than two business days following the date on which the equity interest of fifty percent or more was acquired.\n\n(d)  Delegation of authority.  The Commission hereby delegates, until it orders otherwise, the authority set forth in this section to the Director of the Division of Market Oversight or such other employee or employees as the Director may designate from time to time. The Director may submit to the Commission for its consideration any matter that has been delegated in this paragraph. Nothing in this paragraph prohibits the Commission, at its election, from exercising the authority delegated in this paragraph."], ["17:17:1.0.1.1.30.1.7.6", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.6 Enforceability.", "CFTC", "", "", "[89 FR 35001, May 1, 2024]", "(a) A transaction executed on or pursuant to the rules of a swap execution facility shall not be void, voidable, subject to rescission, otherwise invalidated, or rendered unenforceable as a result of:\n\n(1) A violation by the swap execution facility of the provisions of section 5h of the Act or this part;\n\n(2) Any Commission proceeding to alter or supplement a rule, term, or condition under section 8a(7) of the Act or to declare an emergency under section 8a(9) of the Act; or\n\n(3) Any other proceeding the effect of which is to:\n\n(i) Alter or supplement a specific term or condition or trading rule or procedure; or\n\n(ii) Require a swap execution facility to adopt a specific term or condition, trading rule or procedure, or to take or refrain from taking a specific action.\n\n(b) A swap execution facility shall provide each counterparty to a transaction that is executed on or pursuant to the rules of the swap execution facility with a written record of all of the terms of the transaction which shall legally supersede any conflicting terms of a previous agreement and serve as a confirmation of the transaction. The confirmation of all terms of the transaction shall take place as soon as technologically practicable after execution; provided that specific customer identifiers for accounts included in bunched orders involving swaps need not be included in confirmations provided by a swap execution facility if the applicable requirements of \u00a7 1.35(b)(5) of this chapter are met.\n\n(1) For a confirmation of an uncleared swap transaction, the swap execution facility may satisfy the requirements of this paragraph (b) by incorporating by reference terms from underlying, previously negotiated agreements governing such transaction between the counterparties, without obtaining such incorporated agreements except as otherwise necessary to fully perform its operational, risk management, governance, or regulatory functions, or any requirements under this part.\n\n(2) [Reserved]"], ["17:17:1.0.1.1.30.1.7.7", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.7 Prohibited use of data collected for regulatory purposes.", "CFTC", "", "", "", "A swap execution facility shall not use for business or marketing purposes any proprietary data or personal information it collects or receives, from or on behalf of any person, for the purpose of fulfilling its regulatory obligations;  provided, however,  that a swap execution facility may use such data or information for business or marketing purposes if the person from whom it collects or receives such data or information clearly consents to the swap execution facility's use of such data or information in such manner. A swap execution facility shall not condition access to its market(s) or market services on a person's consent to the swap execution facility's use of proprietary data or personal information for business or marketing purposes. A swap execution facility, where necessary for regulatory purposes, may share such data or information with one or more swap execution facilities or designated contract markets registered with the Commission."], ["17:17:1.0.1.1.30.1.7.8", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.8 Boards of trade operating both a designated contract market and a swap execution facility.", "CFTC", "", "", "", "(a) An entity that intends to operate both a designated contract market and a swap execution facility shall separately register the two entities pursuant to the designated contract market designation procedures set forth in part 38 of this chapter and the swap execution facility registration procedures set forth in this part. On an ongoing basis, the entity shall comply with the core principles for designated contract markets under section 5(d) of the Act and the regulations under part 38 of this chapter and the core principles for swap execution facilities under section 5h of the Act and the regulations under this part.\n\n(b) A board of trade, as defined in section 1a(6) of the Act, that operates both a designated contract market and a swap execution facility and that uses the same electronic trade execution system for executing and trading swaps on the designated contract market and on the swap execution facility shall clearly identify to market participants for each swap whether the execution or trading of such swaps is taking place on the designated contract market or on the swap execution facility."], ["17:17:1.0.1.1.30.1.7.9", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "A", "Subpart A\u2014General Provisions", "", "\u00a7 37.9 Methods of execution for required and permitted transactions.", "CFTC", "", "", "[78 FR 33582, June 4, 2013, as amended at 85 FR 44707, July 24, 2020; 85 FR 82329, Dec. 18, 2020]", "(a)  Execution methods for required transactions.  (1)  Required transaction  means any transaction involving a swap that is subject to the trade execution requirement in section 2(h)(8) of the Act.\n\n(2)  Execution methods.  (i)  Each Required Transaction that is not a block trade as defined in \u00a7 43.2 of this chapter shall be executed on a swap execution facility in accordance with one of the following methods of execution except as provided in paragraph (d) or (e) of this section:\n\n(A) An Order Book as defined in \u00a7 37.3(a)(3); or\n\n(B) A Request for Quote System, as defined in paragraph (a)(3) of this section, that operates in conjunction with an Order Book as defined in \u00a7 37.3(a)(3).\n\n(ii) In providing either one of the execution methods set forth in paragraph (a)(2)(i)(A) or (B) of this section, a swap execution facility may for purposes of execution and communication use any means of interstate commerce, including, but not limited to, the mail, internet, email, and telephone, provided that the chosen execution method satisfies the requirements provided in \u00a7 37.3(a)(3) for Order Books or in paragraph (a)(3) of this section for Request for Quote Systems.\n\n(3)  Request for quote system  means a trading system or platform in which a market participant transmits a request for a quote to buy or sell a specific instrument to no less than three market participants in the trading system or platform, to which all such market participants may respond. The three market participants shall not be affiliates of or controlled by the requester and shall not be affiliates of or controlled by each other. A swap execution facility that offers a request for quote system in connection with Required Transactions shall provide the following functionality:\n\n(i) At the same time that the requester receives the first responsive bid or offer, the swap execution facility shall communicate to the requester any firm bid or offer pertaining to the same instrument resting on any of the swap execution facility's Order Books, as defined in \u00a7 37.3(a)(3);\n\n(ii) The swap execution facility shall provide the requester with the ability to execute against such firm resting bids or offers along with any responsive orders; and\n\n(iii) The swap execution facility shall ensure that its trading protocols provide each of its market participants with equal priority in receiving requests for quotes and in transmitting and displaying for execution responsive orders.\n\n(b)  Time delay requirement for required transactions on an order book \u2014(1)  Time delay requirement.  A swap execution facility shall require that a broker or dealer who seeks to either execute against its customer's order or execute two of its customers' orders against each other through the swap execution facility's Order Book, following some form of pre-arrangement or pre-negotiation of such orders, be subject to at least a 15 second time delay between the entry of those two orders into the Order Book, such that one side of the potential transaction is disclosed and made available to other market participants before the second side of the potential transaction, whether for the broker's or dealer's own account or for a second customer, is submitted for execution.\n\n(2)  Adjustment of time delay requirement.  A swap execution facility may adjust the time period of the 15 second time delay requirement described in paragraph (b)(1) of this section, based upon a swap's liquidity or other product-specific considerations; however, the time delay shall be set for a sufficient period of time so that an order is exposed to the market and other market participants have a meaningful opportunity to execute against such order.\n\n(c)  Execution methods for permitted transactions.  (1)  Permitted transaction  means any transaction not involving a swap that is subject to the trade execution requirement in section 2(h)(8) of the Act.\n\n(2)  Execution methods.  A swap execution facility may offer any method of execution for each Permitted Transaction.\n\n(d)  Exceptions to required methods of execution for package transactions.  (1) For purposes of this paragraph, a package transaction consists of two or more component transactions executed between two or more counterparties where:\n\n(i) At least one component transaction is a Required Transaction;\n\n(ii) Execution of each component transaction is contingent upon the execution of all other component transactions; and\n\n(iii) The component transactions are priced or quoted together as one economic transaction with simultaneous or near-simultaneous execution of all components.\n\n(2) A Required Transaction that is executed as a component of a package transaction that includes a component swap that is subject exclusively to the Commission's jurisdiction, but is not subject to the clearing requirement under section 2(h)(1)(A) of the Act, may be executed on a swap execution facility in accordance with paragraph (c)(2) of this section as if it were a Permitted Transaction;\n\n(3) A Required Transaction that is executed as a component of a package transaction that includes a component that is not a swap, as defined under section 1a(47) of the Act, may be executed on a swap execution facility in accordance with paragraph (c)(2) of this section as if it were a Permitted Transaction. This provision shall not apply to:\n\n(i) A Required Transaction that is executed as a component of a package transaction in which all other non-swap components are U.S. Treasury securities;\n\n(ii) A Required Transaction that is executed as a component of a package transaction in which all other non-swap components are contracts for the purchase or sale of a commodity for future delivery;\n\n(iii) A Required Transaction that is executed as a component of a package transaction in which all other non-swap components are agency mortgage-backed securities; and\n\n(iv) A Required Transaction that is executed as a component of a package transaction that includes a component transaction that is the issuance of a bond in a primary market.\n\n(4) A Required Transaction that is executed as a component of a package transaction that includes a component swap that is not exclusively subject to the Commission's jurisdiction may be executed on a swap execution facility in accordance with paragraph (c)(2) of this section as if it were a Permitted Transaction.\n\n(e)  Resolution of operational and clerical error trades.  (1) As used in this paragraph:\n\n(i)  Correcting trade  means a trade executed and submitted for clearing to a registered derivatives clearing organization, or a derivatives clearing organization that the Commission has determined is exempt from registration, with the same terms and conditions as an error trade other than any corrections to any operational or clerical error and the time of execution.\n\n(ii)  Error trade  means any trade executed on or subject to the rules of a swap execution facility that contains an operational or clerical error.\n\n(iii)  Offsetting trade  means a trade executed and submitted for clearing to a registered derivatives clearing organization, or a derivatives clearing organization that the Commission has determined is exempt from registration, with terms and conditions that economically reverse an error trade that was accepted for clearing.\n\n(2)  Execution of correcting trades and offsetting trades.  (i) A swap execution facility shall maintain rules and procedures that facilitate the resolution of error trades. Such rules shall be fair, transparent, and consistent; allow for timely resolution; require market participants to provide prompt notice of an error trade\u2014and, as applicable, offsetting and correcting trades\u2014to the swap execution facility; and permit market participants to:\n\n(A) Execute a correcting trade, in accordance with paragraph (c)(2) of this section, regardless of whether it is a Required or Permitted Transaction, for an error trade that has been rejected from clearing as soon as technologically practicable, but no later than one hour after a registered derivatives clearing organization, or a derivatives clearing organization that the Commission has determined is exempt from registration, provides notice of the rejection; or\n\n(B) Execute an offsetting trade and a correcting trade, in accordance with paragraph (c)(2) of this section, regardless of whether it is a Required or Permitted Transaction, for an error trade that was accepted for clearing as soon as technologically practicable, but no later than three days after the error trade was accepted for clearing at a derivatives clearing organization or a derivatives clearing organization that the Commission has determined is exempt from registration.\n\n(ii) If a correcting trade is rejected from clearing, then a swap execution facility shall not allow the counterparties to execute another correcting trade.\n\n(f)  Counterparty anonymity.  (1) Except as otherwise required under the Act or the Commission's regulations, a swap execution facility shall not directly or indirectly, including through a third-party service provider, disclose the identity of a counterparty to a swap that is executed anonymously and intended to be cleared.\n\n(2) A swap execution facility shall establish and enforce rules that prohibit any person from directly or indirectly, including through a third-party service provider, disclosing the identity of a counterparty to a swap that is executed anonymously and intended to be cleared.\n\n(3) For purposes of paragraphs (f)(1) and (2) of this section, \u201cexecuted anonymously\u201d shall include a swap that is pre-arranged or pre-negotiated anonymously, including by a participant of the swap execution facility.\n\n(4) For a package transaction that includes a component transaction that is not a swap intended to be cleared, disclosing the identity of a counterparty shall not violate paragraph (f)(1) or (2) of this section. For purposes of this paragraph, a \u201cpackage transaction\u201d consists of two or more component transactions executed between two or more counterparties where:\n\n(i) Execution of each component transaction is contingent upon the execution of all other component transactions; and\n\n(ii) The component transactions are priced or quoted together as one economic transaction with simultaneous or near-simultaneous execution of all components."], ["17:17:1.0.1.1.30.10.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "J", "Subpart J\u2014Timely Publication of Trading Information", "", "\u00a7 37.900 Core Principle 9\u2014Timely publication of trading information.", "CFTC", "", "", "", "(a)  In general.  The swap execution facility shall make public timely information on price, trading volume, and other trading data on swaps to the extent prescribed by the Commission.\n\n(b)  Capacity of swap execution facility.  The swap execution facility shall be required to have the capacity to electronically capture and transmit trade information with respect to transactions executed on the facility."], ["17:17:1.0.1.1.30.10.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "J", "Subpart J\u2014Timely Publication of Trading Information", "", "\u00a7 37.901 General requirements.", "CFTC", "", "", "", "With respect to swaps traded on or through a swap execution facility, each swap execution facility shall:\n\n(a) Report specified swap data as provided under part 43 and part 45 of this chapter; and\n\n(b) Meet the requirements of part 16 of this chapter."], ["17:17:1.0.1.1.30.11.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "K", "Subpart K\u2014Recordkeeping and Reporting", "", "\u00a7 37.1000 Core Principle 10\u2014Recordkeeping and reporting.", "CFTC", "", "", "", "(a)  In general.  A swap execution facility shall:\n\n(1) Maintain records of all activities relating to the business of the facility, including a complete audit trail, in a form and manner acceptable to the Commission for a period of five years;\n\n(2) Report to the Commission, in a form and manner acceptable to the Commission, such information as the Commission determines to be necessary or appropriate for the Commission to perform the duties of the Commission under the Act; and\n\n(3) Keep any such records relating to swaps defined in section 1a(47)(A)(v) of the Act open to inspection and examination by the Securities and Exchange Commission.\n\n(b)  Requirements.  The Commission shall adopt data collection and reporting requirements for swap execution facilities that are comparable to corresponding requirements for derivatives clearing organizations and swap data repositories."], ["17:17:1.0.1.1.30.11.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "K", "Subpart K\u2014Recordkeeping and Reporting", "", "\u00a7 37.1001 Recordkeeping.", "CFTC", "", "", "", "A swap execution facility shall maintain records of all activities relating to the business of the facility, in a form and manner acceptable to the Commission, for a period of at least five years. A swap execution facility shall maintain such records, including a complete audit trail for all swaps executed on or subject to the rules of the swap execution facility, investigatory files, and disciplinary files, in accordance with the requirements of \u00a7 1.31 and part 45 of this chapter."], ["17:17:1.0.1.1.30.12.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "L", "Subpart L\u2014Antitrust Considerations", "", "\u00a7 37.1100 Core Principle 11\u2014Antitrust considerations.", "CFTC", "", "", "", "Unless necessary or appropriate to achieve the purposes of the Act, the swap execution facility shall not:\n\n(a) Adopt any rules or take any actions that result in any unreasonable restraint of trade; or\n\n(b) Impose any material anticompetitive burden on trading or clearing."], ["17:17:1.0.1.1.30.12.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "L", "Subpart L\u2014Antitrust Considerations", "", "\u00a7 37.1101 Additional sources for compliance.", "CFTC", "", "", "", "A swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.1100."], ["17:17:1.0.1.1.30.13.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "M", "Subpart M\u2014Conflicts of Interest", "", "\u00a7 37.1200 Core Principle 12\u2014Conflicts of interest.", "CFTC", "", "", "", "The swap execution facility shall:\n\n(a) Establish and enforce rules to minimize conflicts of interest in its decision-making process; and\n\n(b) Establish a process for resolving the conflicts of interest."], ["17:17:1.0.1.1.30.14.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1300 Core Principle 13\u2014Financial resources.", "CFTC", "", "", "", "(a)  In general.  The swap execution facility shall have adequate financial, operational, and managerial resources to discharge each responsibility of the swap execution facility.\n\n(b)  Determination of resource adequacy.  The financial resources of a swap execution facility shall be considered to be adequate if the value of the financial resources exceeds the total amount that would enable the swap execution facility to cover the operating costs of the swap execution facility for a one-year period, as calculated on a rolling basis."], ["17:17:1.0.1.1.30.14.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1301 General requirements.", "CFTC", "", "", "", "(a) A swap execution facility shall maintain financial resources on an ongoing basis that are adequate to enable it to comply with the core principles set forth in section 5h of the Act and any applicable Commission regulations. Financial resources shall be considered adequate if their value exceeds the total amount that would enable the swap execution facility to cover its projected operating costs necessary for the swap execution facility to comply with section 5h of the Act and applicable Commission regulations for a one-year period, as calculated on a rolling basis pursuant to \u00a7 37.1304.\n\n(b) An entity that operates as both a swap execution facility and a derivatives clearing organization shall also comply with the financial resource requirements of \u00a7 39.11 of this chapter."], ["17:17:1.0.1.1.30.14.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1302 Types of financial resources.", "CFTC", "", "", "", "Financial resources available to satisfy the requirements of \u00a7 37.1301 may include:\n\n(a) The swap execution facility's own capital, meaning its assets minus its liabilities calculated in accordance with generally accepted accounting principles in the United States; and\n\n(b) Any other financial resource deemed acceptable by the Commission."], ["17:17:1.0.1.1.30.14.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1303 Liquidity of financial resources.", "CFTC", "", "", "", "The financial resources allocated by the swap execution facility to meet the ongoing requirements of \u00a7 37.1301 shall include unencumbered, liquid financial assets ( i.e.,  cash and/or highly liquid securities) equal to at least the greater of three months of projected operating costs, as calculated on a rolling basis, or the projected costs needed to wind down the swap execution facility's operations, in each case as determined under \u00a7 37.1304. If a swap execution facility lacks sufficient unencumbered, liquid financial assets to satisfy its obligations under this section, the swap execution facility may satisfy this requirement by obtaining a committed line of credit or similar facility in an amount at least equal to such deficiency."], ["17:17:1.0.1.1.30.14.7.5", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1304 Computation of costs to meet financial resources requirement.", "CFTC", "", "", "", "A swap execution facility shall each fiscal quarter, make a reasonable calculation of its projected operating costs and wind-down costs in order to determine its applicable obligations under \u00a7\u00a7 37.1301 and 37.1303. The swap execution facility shall have reasonable discretion in determining the methodologies used to compute such amounts. The Commission may review the methodologies and require changes as appropriate."], ["17:17:1.0.1.1.30.14.7.6", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1305 Valuation of financial resources.", "CFTC", "", "", "", "No less than each fiscal quarter, a swap execution facility shall compute the current market value of each financial resource used to meet its obligations under \u00a7\u00a7 37.1301 and 37.1303. Reductions in value to reflect market and credit risk (\u201chaircuts\u201d) shall be applied as appropriate."], ["17:17:1.0.1.1.30.14.7.7", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1306 Reporting to the Commission.", "CFTC", "", "", "", "(a) Each fiscal quarter, or at any time upon Commission request, a swap execution facility shall provide a report to the Commission that includes:\n\n(1) The amount of financial resources necessary to meet the requirements of \u00a7\u00a7 37.1301 and 37.1303, computed in accordance with the requirements of \u00a7 37.1304, and the market value of each available financial resource, computed in accordance with the requirements of \u00a7 37.1305; and\n\n(2) Financial statements, including the balance sheet, income statement, and statement of cash flows of the swap execution facility.\n\n(i) The financial statements shall be prepared in accordance with generally accepted accounting principles in the United States, prepared in English, and denominated in U.S. dollars.\n\n(ii) The financial statements of a swap execution facility that is not domiciled in the United States, and is not otherwise required to prepare financial statements in accordance with generally accepted accounting principles in the United States, may satisfy the requirement in paragraph (a)(2)(i) of this section if such financial statements are prepared in accordance with either International Financial Reporting Standards issued by the International Accounting Standards Board, or a comparable international standard as the Commission may otherwise accept in its discretion.\n\n(b) The calculations required by paragraph (a) of this section shall be made as of the last business day of the swap execution facility's applicable fiscal quarter.\n\n(c) With each report required under paragraph (a) of this section, the swap execution facility shall also provide the Commission with sufficient documentation explaining the methodology used to compute its financial requirements under \u00a7\u00a7 37.1301 and 37.1303. Such documentation shall:\n\n(1) Allow the Commission to reliably determine, without additional requests for information, that the swap execution facility has made reasonable calculations pursuant to \u00a7 37.1304; and\n\n(2) Include, at a minimum:\n\n(i) A total list of all expenses, without any exclusion;\n\n(ii) All expenses and the corresponding amounts, if any, that the swap execution facility excluded or prorated when determining its operating costs, calculated on a rolling basis, required under \u00a7\u00a7 37.1301 and 37.1303, and the basis for any determination to exclude or prorate any such expenses;\n\n(iii) Documentation demonstrating the existence of any committed line of credit or similar facility relied upon for the purpose of meeting the requirements of \u00a7 37.1303 (e.g., copies of agreements establishing or amending a credit facility or similar facility); and\n\n(iv) All costs that a swap execution facility would incur to wind down the swap execution facility's operations, the projected amount of time for any such wind-down period, and the basis of its determination for the estimation of its costs and timing.\n\n(d) The reports and supporting documentation required by this section shall be filed not later than 40 calendar days after the end of the swap execution facility's first three fiscal quarters, and not later than 90 calendar days after the end of the swap execution facility's fourth fiscal quarter, or at such later time as the Commission may permit, in its discretion, upon request by the swap execution facility.\n\n(e) A swap execution facility shall provide notice to the Commission no later than 48 hours after it knows or reasonably should know that it no longer meets its obligations under \u00a7 37.1301 or 37.1303."], ["17:17:1.0.1.1.30.14.7.8", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "N", "Subpart N\u2014Financial Resources", "", "\u00a7 37.1307 Delegation of authority.", "CFTC", "", "", "", "(a) The Commission hereby delegates, until it orders otherwise, to the Director of the Division of Market Oversight or such other employee or employees as the Director may designate from time to time, authority to:\n\n(1) Determine whether a particular financial resource under \u00a7 37.1302 may be used to satisfy the requirements of \u00a7 37.1301;\n\n(2) Review and make changes to the methodology used to compute projected operating costs and wind-down costs under \u00a7 37.1304 and the valuation of financial resources under \u00a7 37.1305;\n\n(3) Request reports, in addition to those required in \u00a7 37.1306, or additional documentation or information under \u00a7 37.1306(a), (c), and (e); and\n\n(4) Grant an extension of time to file fiscal quarter reports under \u00a7 37.1306(d).\n\n(b) The Director may submit to the Commission for its consideration any matter that has been delegated in this section. Nothing in this section prohibits the Commission, at its election, from exercising the authority delegated in this section."], ["17:17:1.0.1.1.30.15.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "O", "Subpart O\u2014System Safeguards", "", "\u00a7 37.1400 Core Principle 14\u2014System safeguards.", "CFTC", "", "", "", "The swap execution facility shall:\n\n(a) Establish and maintain a program of risk analysis and oversight to identify and minimize sources of operational risk, through the development of appropriate controls and procedures, and automated systems, that:\n\n(1) Are reliable and secure; and\n\n(2) Have adequate scalable capacity;\n\n(b) Establish and maintain emergency procedures, backup facilities, and a plan for disaster recovery that allow for:\n\n(1) The timely recovery and resumption of operations; and\n\n(2) The fulfillment of the responsibilities and obligations of the swap execution facility; and\n\n(c) Periodically conduct tests to verify that the backup resources of the swap execution facility are sufficient to ensure continued:\n\n(1) Order processing and trade matching;\n\n(2) Price reporting;\n\n(3) Market surveillance; and\n\n(4) Maintenance of a comprehensive and accurate audit trail."], ["17:17:1.0.1.1.30.15.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "O", "Subpart O\u2014System Safeguards", "", "\u00a7 37.1401 Requirements.", "CFTC", "", "", "[78 FR 33582, June 4, 2013, as amended at 81 FR 64310, Sept. 19, 2016]", "(a) A swap execution facility's program of risk analysis and oversight with respect to its operations and automated systems shall address each of the following categories of risk analysis and oversight:\n\n(1)  Enterprise risk management and governance.  This category includes, but is not limited to: Assessment, mitigation, and monitoring of security and technology risk; security and technology capital planning and investment; board of directors and management oversight of technology and security; information technology audit and controls assessments; remediation of deficiencies; and any other elements of enterprise risk management and governance included in generally accepted best practices.\n\n(2)  Information security.  This category includes, but is not limited to, controls relating to: Access to systems and data (including least privilege, separation of duties, account monitoring and control); user and device identification and authentication; security awareness training; audit log maintenance, monitoring, and analysis; media protection; personnel security and screening; automated system and communications protection (including network port control, boundary defenses, encryption); system and information integrity (including malware defenses, software integrity monitoring); vulnerability management; penetration testing; security incident response and management; and any other elements of information security included in generally accepted best practices.\n\n(3)  Business continuity-disaster recovery planning and resources.  This category includes, but is not limited to: Regular, periodic testing and review of business continuity-disaster recovery capabilities, the controls and capabilities described in paragraph (c), (d), (j), and (k) of this section; and any other elements of business continuity-disaster recovery planning and resources included in generally accepted best practices.\n\n(4)  Capacity and performance planning.  This category includes, but is not limited to: Controls for monitoring the swap execution facility's systems to ensure adequate scalable capacity (including testing, monitoring, and analysis of current and projected future capacity and performance, and of possible capacity degradation due to planned automated system changes); and any other elements of capacity and performance planning included in generally accepted best practices.\n\n(5)  Systems operations.  This category includes, but is not limited to: System maintenance; configuration management (including baseline configuration, configuration change and patch management, least functionality, inventory of authorized and unauthorized devices and software); event and problem response and management; and any other elements of system operations included in generally accepted best practices.\n\n(6)  Systems development and quality assurance.  This category includes, but is not limited to: Requirements development; pre-production and regression testing; change management procedures and approvals; outsourcing and vendor management; training in secure coding practices; and any other elements of systems development and quality assurance included in generally accepted best practices.\n\n(7)  Physical security and environmental controls.  This category includes, but is not limited to: Physical access and monitoring; power, telecommunication, and environmental controls; fire protection; and any other elements of physical security and environmental controls included in generally accepted best practices.\n\n(b) In addressing the categories of risk analysis and oversight required under paragraph (a) of this section, a swap execution facility shall follow generally accepted standards and best practices with respect to the development, operation, reliability, security, and capacity of automated systems.\n\n(c) A swap execution facility shall maintain a business continuity-disaster recovery plan and business continuity-disaster recovery resources, emergency procedures, and backup facilities sufficient to enable timely recovery and resumption of its operations and resumption of its ongoing fulfillment of its responsibilities and obligations as a swap execution facility following any disruption of its operations. Such responsibilities and obligations include, without limitation: Order processing and trade matching; transmission of matched orders to a designated clearing organization for clearing, where appropriate; price reporting; market surveillance; and maintenance of a comprehensive audit trail. A swap execution facility's business continuity-disaster recovery plan and resources generally should enable resumption of trading and clearing of swaps executed on or pursuant to the rules of the swap execution facility during the next business day following the disruption. Swap execution facilities determined by the Commission to be critical financial markets are subject to more stringent requirements in this regard, set forth in \u00a7 40.9 of this chapter. A swap execution facility shall update its business continuity-disaster recovery plan and emergency procedures at a frequency determined by an appropriate risk analysis, but at a minimum no less frequently than annually.\n\n(d) A swap execution facility that is not determined by the Commission to be a critical financial market satisfies the requirement to be able to resume its operations and resume its ongoing fulfillment of its responsibilities and obligations during the next business day following any disruption of its operations by maintaining either:\n\n(1) Infrastructure and personnel resources of its own that are sufficient to ensure timely recovery and resumption of its operations and resumption of its ongoing fulfillment of its responsibilities and obligations as a swap execution facility following any disruption of its operations; or\n\n(2) Contractual arrangements with other swap execution facilities or disaster recovery service providers, as appropriate, that are sufficient to ensure continued trading and clearing of swaps executed on the swap execution facility, and ongoing fulfillment of all of the swap execution facility's responsibilities and obligations with respect to such swaps, in the event that a disruption renders the swap execution facility temporarily or permanently unable to satisfy this requirement on its own behalf.\n\n(e) A swap execution facility shall notify Commission staff promptly of all:\n\n(1) Electronic trading halts and material system malfunctions;\n\n(2) Cyber security incidents or targeted threats that actually or potentially jeopardize automated system operation, reliability, security, or capacity; and\n\n(3) Activations of the swap execution facility's business continuity-disaster recovery plan.\n\n(f) A swap execution facility shall provide Commission staff timely advance notice of all material:\n\n(1) Planned changes to automated systems that may impact the reliability, security, or adequate scalable capacity of such systems; and\n\n(2) Planned changes to the swap execution facility's program of risk analysis and oversight.\n\n(g) As part of a swap execution facility's obligation to produce books and records in accordance with \u00a7 1.31 of this chapter, Core Principle 10 (Recordkeeping and Reporting), and \u00a7\u00a7 37.1000 and 37.1001, a swap execution facility shall provide to the Commission the following system safeguards-related books and records, promptly upon the request of any Commission representative:\n\n(1) Current copies of its business continuity-disaster recovery plans and other emergency procedures;\n\n(2) All assessments of its operational risks or system safeguards-related controls;\n\n(3) All reports concerning system safeguards testing and assessment required by this chapter, whether performed by independent contractors or by employees of the swap execution facility; and\n\n(4) All other books and records requested by Commission staff in connection with Commission oversight of system safeguards pursuant to the Act or Commission regulations, or in connection with Commission maintenance of a current profile of the swap execution facility's automated systems.\n\n(5) Nothing in \u00a7 37.1401(g) shall be interpreted as reducing or limiting in any way a swap execution facility's obligation to comply with Core Principle 10 (Recordkeeping and Reporting) or with \u00a7 1.31 of this chapter or with \u00a7 37.1000 or \u00a7 37.1001.\n\n(h) A swap execution facility shall conduct regular, periodic, objective testing and review of its automated systems to ensure that they are reliable, secure, and have adequate scalable capacity. It shall also conduct regular, periodic testing and review of its business continuity-disaster recovery capabilities. Such testing and review shall include, without limitation, all of the types of testing set forth in paragraph (h) of this section.\n\n(1)  Definitions.  As used in this paragraph (h):\n\nControls  means the safeguards or countermeasures employed by the swap execution facility in order to protect the reliability, security, or capacity of its automated systems or the confidentiality, integrity, and availability of its data and information, and in order to enable the swap execution facility to fulfill its statutory and regulatory responsibilities.\n\nControls testing  means assessment of the swap execution facility's controls to determine whether such controls are implemented correctly, are operating as intended, and are enabling the swap execution facility to meet the requirements established by this section.\n\nEnterprise technology risk assessment  means a written assessment that includes, but is not limited to, an analysis of threats and vulnerabilities in the context of mitigating controls. An enterprise technology risk assessment identifies, estimates, and prioritizes risks to swap execution facility operations or assets, or to market participants, individuals, or other entities, resulting from impairment of the confidentiality, integrity, and availability of data and information or the reliability, security, or capacity of automated systems.\n\nExternal penetration testing  means attempts to penetrate the swap execution facility's automated systems from outside the systems' boundaries to identify and exploit vulnerabilities. Methods of conducting external penetration testing include, but are not limited to, methods for circumventing the security features of an automated system.\n\nInternal penetration testing  means attempts to penetrate the swap execution facility's automated systems from inside the systems' boundaries, to identify and exploit vulnerabilities. Methods of conducting internal penetration testing include, but are not limited to, methods for circumventing the security features of an automated system.\n\nKey controls  means those controls that an appropriate risk analysis determines are either critically important for effective system safeguards or intended to address risks that evolve or change more frequently and therefore require more frequent review to ensure their continuing effectiveness in addressing such risks.\n\nSecurity incident  means a cyber security or physical security event that actually jeopardizes or has a significant likelihood of jeopardizing automated system operation, reliability, security, or capacity, or the availability, confidentiality or integrity of data.\n\nSecurity incident response plan  means a written plan documenting the swap execution facility's policies, controls, procedures, and resources for identifying, responding to, mitigating, and recovering from security incidents, and the roles and responsibilities of its management, staff and independent contractors in responding to security incidents. A security incident response plan may be a separate document or a business continuity-disaster recovery plan section or appendix dedicated to security incident response.\n\nSecurity incident response plan testing  means testing of a swap execution facility's security incident response plan to determine the plan's effectiveness, identify its potential weaknesses or deficiencies, enable regular plan updating and improvement, and maintain organizational preparedness and resiliency with respect to security incidents. Methods of conducting security incident response plan testing may include, but are not limited to, checklist completion, walk-through or table-top exercises, simulations, and comprehensive exercises.\n\nVulnerability testing  means testing of a swap execution facility's automated systems to determine what information may be discoverable through a reconnaissance analysis of those systems and what vulnerabilities may be present on those systems.\n\n(2)  Vulnerability testing.  A swap execution facility shall conduct vulnerability testing of a scope sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct such vulnerability testing at a frequency determined by an appropriate risk analysis.\n\n(ii) Such vulnerability testing shall include automated vulnerability scanning, which shall follow generally accepted best practices.\n\n(iii) A swap execution facility shall conduct vulnerability testing by engaging independent contractors or by using employees of the swap execution facility who are not responsible for development or operation of the systems or capabilities being tested.\n\n(3)  External penetration testing.  A swap execution facility shall conduct external penetration testing of a scope sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct such external penetration testing at a frequency determined by an appropriate risk analysis.\n\n(ii) A swap execution facility shall conduct external penetration testing by engaging independent contractors or by using employees of the swap execution facility who are not responsible for development or operation of the systems or capabilities being tested.\n\n(4)  Internal penetration testing.  A swap execution facility shall conduct internal penetration testing of a scope sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct such internal penetration testing at a frequency determined by an appropriate risk analysis.\n\n(ii) A swap execution facility shall conduct internal penetration testing by engaging independent contractors, or by using employees of the swap execution facility who are not responsible for development or operation of the systems or capabilities being tested.\n\n(5)  Controls testing.  A swap execution facility shall conduct controls testing of a scope sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct controls testing, which includes testing of each control included in its program of risk analysis and oversight, at a frequency determined by an appropriate risk analysis. Such testing may be conducted on a rolling basis.\n\n(ii) A swap execution facility shall conduct controls testing by engaging independent contractors or by using employees of the swap execution facility who are not responsible for development or operation of the systems or capabilities being tested.\n\n(6)  Security incident response plan testing.  A swap execution facility shall conduct security incident response plan testing sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct such security incident response plan testing at a frequency determined by an appropriate risk analysis.\n\n(ii) A swap execution facility's security incident response plan shall include, without limitation, the swap execution facility's definition and classification of security incidents, its policies and procedures for reporting security incidents and for internal and external communication and information sharing regarding security incidents, and the hand-off and escalation points in its security incident response process.\n\n(iii) A swap execution facility may coordinate its security incident response plan testing with other testing required by this section or with testing of its other business continuity-disaster recovery and crisis management plans.\n\n(iv) A swap execution facility may conduct security incident response plan testing by engaging independent contractors or by using employees of the swap execution facility.\n\n(7)  Enterprise technology risk assessment.  A swap execution facility shall conduct enterprise technology risk assessment of a scope sufficient to satisfy the requirements set forth in paragraph (k) of this section.\n\n(i) A swap execution facility shall conduct enterprise technology risk assessment at a frequency determined by an appropriate risk analysis. A swap execution facility that has conducted an enterprise technology risk assessment that complies with this section may conduct subsequent assessments by updating the previous assessment.\n\n(ii) A swap execution facility may conduct enterprise technology risk assessments by using independent contractors or employees of the swap execution facility who are not responsible for development or operation of the systems or capabilities being assessed.\n\n(i) To the extent practicable, a swap execution facility shall:\n\n(1) Coordinate its business continuity-disaster recovery plan with those of the market participants it depends upon to provide liquidity, in a manner adequate to enable effective resumption of activity in its markets following a disruption causing activation of the swap execution facility's business continuity-disaster recovery plan;\n\n(2) Initiate and coordinate periodic, synchronized testing of its business continuity-disaster recovery plan with those of the market participants it depends upon to provide liquidity; and\n\n(3) Ensure that its business continuity-disaster recovery plan takes into account the business continuity-disaster recovery plans of its telecommunications, power, water, and other essential service providers.\n\n(j) Part 40 of this chapter governs the obligations of those registered entities that the Commission has determined to be critical financial markets, with respect to maintenance and geographic dispersal of disaster recovery resources sufficient to meet a same-day recovery time objective in the event of a wide-scale disruption. Section 40.9 establishes the requirements for core principle compliance in that respect.\n\n(k)  Scope of testing and assessment.  The scope for all system safeguards testing and assessment required by this part shall be broad enough to include the testing of automated systems and controls that the swap execution facility's required program of risk analysis and oversight and its current cybersecurity threat analysis indicate is necessary to identify risks and vulnerabilities that could enable an intruder or unauthorized user or insider to:\n\n(1) Interfere with the swap execution facility's operations or with fulfillment of its statutory and regulatory responsibilities;\n\n(2) Impair or degrade the reliability, security, or adequate scalable capacity of the swap execution facility's automated systems;\n\n(3) Add to, delete, modify, exfiltrate, or compromise the integrity of any data related to the swap execution facility's regulated activities; or\n\n(4) Undertake any other unauthorized action affecting the swap execution facility's regulated activities or the hardware or software used in connection with those activities.\n\n(l)  Internal reporting and review.  Both the senior management and the Board of Directors of a swap execution facility shall receive and review reports setting forth the results of the testing and assessment required by this section. A swap execution facility shall establish and follow appropriate procedures for the remediation of issues identified through such review, as provided in paragraph (m) of this section, and for evaluation of the effectiveness of testing and assessment protocols.\n\n(m)  Remediation.  A swap execution facility shall identify and document the vulnerabilities and deficiencies in its systems revealed by the testing and assessment required by this section. The swap execution facility shall conduct and document an appropriate analysis of the risks presented by such vulnerabilities and deficiencies, to determine and document whether to remediate or accept the associated risk. When the swap execution facility determines to remediate a vulnerability or deficiency, it must remediate in a timely manner given the nature and magnitude of the associated risk."], ["17:17:1.0.1.1.30.16.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "P", "Subpart P\u2014Designation of Chief Compliance Officer", "", "\u00a7 37.1500 Core Principle 15\u2014Designation of chief compliance officer.", "CFTC", "", "", "", "(a)  In general.  Each swap execution facility shall designate an individual to serve as a chief compliance officer.\n\n(b)  Duties.  The chief compliance officer shall:\n\n(1) Report directly to the board or to the senior officer of the facility;\n\n(2) Review compliance with the core principles in this subsection;\n\n(3) In consultation with the board of the facility, a body performing a function similar to that of a board, or the senior officer of the facility, resolve any conflicts of interest that may arise;\n\n(4) Be responsible for establishing and administering the policies and procedures required to be established pursuant to this section;\n\n(5) Ensure compliance with the Act and the rules and regulations issued under the Act, including rules prescribed by the Commission pursuant to section 5h of the Act; and\n\n(6) Establish procedures for the remediation of noncompliance issues found during compliance office reviews, look backs, internal or external audit findings, self-reported errors, or through validated complaints.\n\n(c)  Requirements for procedures.  In establishing procedures under paragraph (b)(6) of this section, the chief compliance officer shall design the procedures to establish the handling, management response, remediation, retesting, and closing of noncompliance issues.\n\n(d)  Annual reports \u2014(1)  In general.  In accordance with rules prescribed by the Commission, the chief compliance officer shall annually prepare and sign a report that contains a description of:\n\n(i) The compliance of the swap execution facility with the Act; and\n\n(ii) The policies and procedures, including the code of ethics and conflict of interest policies, of the swap execution facility.\n\n(2)  Requirements.  The chief compliance officer shall:\n\n(i) Submit each report described in paragraph (d)(1) of this section with the appropriate financial report of the swap execution facility that is required to be submitted to the Commission pursuant to section 5h of the Act; and\n\n(ii) Include in the report a certification that, under penalty of law, the report is accurate and complete."], ["17:17:1.0.1.1.30.16.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "P", "Subpart P\u2014Designation of Chief Compliance Officer", "", "\u00a7 37.1501 Chief compliance officer.", "CFTC", "", "", "[86 FR 9248, Feb. 11, 2021]", "(a)  Definitions.  For purposes of this part, the term\u2014\n\nBoard of directors  means the board of directors of a swap execution facility, or for those swap execution facilities whose organizational structure does not include a board of directors, a body performing a function similar to a board of directors.\n\nSenior officer  means the chief executive officer or other equivalent officer of the swap execution facility.\n\n(b)  Chief compliance officer \u2014(1)  Authority of chief compliance officer.  (i) The position of chief compliance officer shall carry with it the authority and resources to develop, in consultation with the board of directors or senior officer, the policies and procedures of the swap execution facility and enforce such policies and procedures to fulfill the duties set forth for chief compliance officers in the Act and Commission regulations.\n\n(ii) The chief compliance officer shall have supervisory authority over all staff acting at the direction of the chief compliance officer.\n\n(2)  Qualifications of chief compliance officer.  (i) The individual designated to serve as chief compliance officer shall have the background and skills appropriate for fulfilling the responsibilities of the position.\n\n(ii) No individual disqualified from registration pursuant to sections 8a(2) or 8a(3) of the Act may serve as a chief compliance officer.\n\n(3)  Appointment and removal of chief compliance officer.  (i) Only the board of directors or the senior officer may appoint or remove the chief compliance officer.\n\n(ii) The swap execution facility shall notify the Commission within two business days of the appointment or removal, whether interim or permanent, of a chief compliance officer.\n\n(4)  Compensation of the chief compliance officer.  The board of directors or the senior officer shall approve the compensation of the chief compliance officer.\n\n(5)  Annual meeting with the chief compliance officer.  The chief compliance officer shall meet with the board of directors or senior officer of the swap execution facility at least annually.\n\n(6)  Information requested of the chief compliance officer.  The chief compliance officer shall provide any information regarding the self-regulatory program of the swap execution facility as requested by the board of directors or the senior officer.\n\n(c)  Duties of chief compliance officer.  The duties of the chief compliance officer shall include, but are not limited to, the following:\n\n(1) Overseeing and reviewing compliance of the swap execution facility with section 5h of the Act and any related rules adopted by the Commission;\n\n(2) Taking reasonable steps, in consultation with the board of directors or the senior officer of the swap execution facility, to resolve any material conflicts of interest that may arise, including, but not limited to:\n\n(i) Conflicts between business considerations and compliance requirements;\n\n(ii) Conflicts between business considerations and the requirement that the swap execution facility provide fair, open, and impartial access as set forth in \u00a7 37.202; and;\n\n(iii) Conflicts between a swap execution facility's management and members of the board of directors;\n\n(3) Establishing and administering written policies and procedures reasonably designed to prevent violations of the Act and the rules of the Commission;\n\n(4) Taking reasonable steps to ensure compliance with the Act and the rules of the Commission;\n\n(5) Establishing procedures reasonably designed to handle, respond, remediate, retest, and resolve noncompliance issues identified by the chief compliance officer through any means, including any compliance office review, look-back, internal or external audit finding, self-reported error, or validated complaint;\n\n(6) Establishing and administering a compliance manual designed to promote compliance with the applicable laws, rules, and regulations and a written code of ethics for the swap execution facility designed to prevent ethical violations and to promote honesty and ethical conduct by personnel of the swap execution facility;\n\n(7) Supervising the self-regulatory program of the swap execution facility with respect to trade practice surveillance; market surveillance; real time market monitoring; compliance with audit trail requirements; enforcement and disciplinary proceedings; audits, examinations, and other regulatory responsibilities (including taking reasonable steps to ensure compliance with, if applicable, financial integrity, financial reporting, sales practice, recordkeeping, and other requirements); and\n\n(8) Supervising the effectiveness and sufficiency of any regulatory services provided to the swap execution facility by a regulatory service provider in accordance with \u00a7 37.204.\n\n(d)  Preparation of annual compliance report.  The chief compliance officer shall, not less than annually, prepare and sign an annual compliance report that covers the prior fiscal year. The report shall, at a minimum, contain:\n\n(1) A description and self-assessment of the effectiveness of the written policies and procedures of the swap execution facility, including the code of ethics and conflict of interest policies, to reasonably ensure compliance with the Act and applicable Commission regulations;\n\n(2) Any material changes made to compliance policies and procedures during the coverage period for the report and any areas of improvement or recommended changes to the compliance program;\n\n(3) A description of the financial, managerial, and operational resources set aside for compliance with the Act and applicable Commission regulations;\n\n(4) Any material non-compliance matters identified and an explanation of the corresponding action taken to resolve such non-compliance matters; and\n\n(5) A certification by the chief compliance officer that, to the best of his or her knowledge and reasonable belief, and under penalty of law, the annual compliance report is accurate and complete in all material respects.\n\n(e)  Submission of annual compliance report and related matters \u2014(1)  Furnishing the annual compliance report prior to submission to the Commission.  Prior to submission to the Commission, the chief compliance officer shall provide the annual compliance report for review to the board of directors of the swap execution facility or, in the absence of a board of directors, to the senior officer of the swap execution facility. Members of the board of directors and the senior officer shall not require the chief compliance officer to make any changes to the report.\n\n(2)  Submission of annual compliance report to the Commission.  The annual compliance report shall be submitted electronically to the Commission not later than 90 calendar days after the end of the swap execution facility's fiscal year. The swap execution facility shall concurrently file the annual compliance report with the fourth-quarter financial report pursuant to \u00a7 37.1306.\n\n(3)  Amendments to annual compliance report.  (i) Promptly upon discovery of any material error or omission made in a previously filed annual compliance report, the chief compliance officer shall file an amendment with the Commission to correct the material error or omission. The chief compliance officer shall submit the amended annual compliance report to the board of directors, or in the absence of a board of directors, to the senior officer of the swap execution facility, pursuant to paragraph (e)(1) of this section.\n\n(ii) An amendment shall contain the certification required under paragraph (d)(5) of this section.\n\n(4)  Request for extension.  A swap execution facility may request an extension of time to file its annual compliance report from the Commission. Reasonable and valid requests for extensions of the filing deadline may be granted at the discretion of the Commission.\n\n(f)  Recordkeeping.  The swap execution facility shall maintain all records demonstrating compliance with the duties of the chief compliance officer and the preparation and submission of annual compliance reports consistent with \u00a7\u00a7 37.1000 and 37.1001.\n\n(g)  Delegation of authority.  The Commission hereby delegates, until it orders otherwise, to the Director of the Division of Market Oversight or such other employee or employees as the Director may designate from time to time, the authority to grant or deny a request for an extension of time for a swap execution facility to file its annual compliance report under paragraph (e)(4) of this section. The Director may submit to the Commission for its consideration any matter that has been delegated in this paragraph. Nothing in this paragraph prohibits the Commission, at its election, from exercising the authority delegated in this paragraph."], ["17:17:1.0.1.1.30.2.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "B", "Subpart B\u2014Compliance With Core Principles", "", "\u00a7 37.100 Core Principle 1\u2014Compliance with core principles.", "CFTC", "", "", "", "(a)  In general.  To be registered, and maintain registration, as a swap execution facility, the swap execution facility shall comply with\u2014\n\n(1) The core principles described in section 5h of the Act; and\n\n(2) Any requirement that the Commission may impose by rule or regulation pursuant to section 8a(5) of the Act.\n\n(b)  Reasonable discretion of a swap execution facility.  Unless otherwise determined by the Commission by rule or regulation, a swap execution facility described in paragraph (a) of this section shall have reasonable discretion in establishing the manner in which the swap execution facility complies with the core principles described in section 5h of the Act."], ["17:17:1.0.1.1.30.3.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.200 Core Principle 2\u2014Compliance with rules.", "CFTC", "", "", "", "A swap execution facility shall:\n\n(a) Establish and enforce compliance with any rule of the swap execution facility, including the terms and conditions of the swaps traded or processed on or through the swap execution facility and any limitation on access to the swap execution facility;\n\n(b) Establish and enforce trading, trade processing, and participation rules that will deter abuses and have the capacity to detect, investigate, and enforce those rules, including means to provide market participants with impartial access to the market and to capture information that may be used in establishing whether rule violations have occurred;\n\n(c) Establish rules governing the operation of the facility, including rules specifying trading procedures to be used in entering and executing orders traded or posted on the facility, including block trades; and\n\n(d) Provide by its rules that when a swap dealer or major swap participant enters into or facilitates a swap that is subject to the mandatory clearing requirement of section 2(h) of the Act, the swap dealer or major swap participant shall be responsible for compliance with the mandatory trading requirement under section 2(h)(8) of the Act."], ["17:17:1.0.1.1.30.3.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.201 Operation of swap execution facility and compliance with rules.", "CFTC", "", "", "", "(a) A swap execution facility shall establish rules governing the operation of the swap execution facility, including, but not limited to, rules specifying trading procedures to be followed by members and market participants when entering and executing orders traded or posted on the swap execution facility, including block trades, as defined in part 43 of this chapter, if offered.\n\n(b) A swap execution facility shall establish and impartially enforce compliance with the rules of the swap execution facility, including, but not limited to\u2014\n\n(1) The terms and conditions of any swaps traded or processed on or through the swap execution facility;\n\n(2) Access to the swap execution facility;\n\n(3) Trade practice rules;\n\n(4) Audit trail requirements;\n\n(5) Disciplinary rules; and\n\n(6) Mandatory trading requirements."], ["17:17:1.0.1.1.30.3.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.202 Access requirements.", "CFTC", "", "", "", "(a)  Impartial access to markets and market services.  A swap execution facility shall provide any eligible contract participant and any independent software vendor with impartial access to its market(s) and market services, including any indicative quote screens or any similar pricing data displays, provided that the facility has:\n\n(1) Criteria governing such access that are impartial, transparent, and applied in a fair and nondiscriminatory manner;\n\n(2) Procedures whereby eligible contract participants provide the swap execution facility with written or electronic confirmation of their status as eligible contract participants, as defined by the Act and Commission regulations, prior to obtaining access; and\n\n(3) Comparable fee structures for eligible contract participants and independent software vendors receiving comparable access to, or services from, the swap execution facility.\n\n(b)  Jurisdiction.  Prior to granting any eligible contract participant access to its facilities, a swap execution facility shall require that the eligible contract participant consent to its jurisdiction.\n\n(c)  Limitations on access.  A swap execution facility shall establish and impartially enforce rules governing any decision to allow, deny, suspend, or permanently bar eligible contract participants' access to the swap execution facility, including when such decisions are made as part of a disciplinary or emergency action taken by the swap execution facility."], ["17:17:1.0.1.1.30.3.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.203 Rule enforcement program.", "CFTC", "", "", "", "A swap execution facility shall establish and enforce trading, trade processing, and participation rules that will deter abuses and it shall have the capacity to detect, investigate, and enforce those rules.\n\n(a)  Abusive trading practices prohibited.  A swap execution facility shall prohibit abusive trading practices on its markets by members and market participants. Swap execution facilities that permit intermediation shall prohibit customer-related abuses including, but not limited to, trading ahead of customer orders, trading against customer orders, accommodation trading, and improper cross trading. Specific trading practices that shall be prohibited include front-running, wash trading, pre-arranged trading (except for block trades permitted by part 43 of this chapter or other types of transactions certified to or approved by the Commission pursuant to the procedures under part 40 of this chapter), fraudulent trading, money passes, and any other trading practices that a swap execution facility deems to be abusive. A swap execution facility shall also prohibit any other manipulative or disruptive trading practices prohibited by the Act or by the Commission pursuant to Commission regulation.\n\n(b)  Capacity to detect and investigate rule violations.  A swap execution facility shall have arrangements and resources for effective enforcement of its rules. Such arrangements shall include the authority to collect information and documents on both a routine and non-routine basis, including the authority to examine books and records kept by the swap execution facility's members and by persons under investigation. A swap execution facility's arrangements and resources shall also facilitate the direct supervision of the market and the analysis of data collected to determine whether a rule violation has occurred.\n\n(c)  Compliance staff and resources.  A swap execution facility shall establish and maintain sufficient compliance staff and resources to ensure that it can conduct effective audit trail reviews, trade practice surveillance, market surveillance, and real-time market monitoring. The swap execution facility's compliance staff shall also be sufficient to address unusual market or trading events as they arise, and to conduct and complete investigations in a timely manner, as set forth in \u00a7 37.203(f).\n\n(d)  Automated trade surveillance system.  A swap execution facility shall maintain an automated trade surveillance system capable of detecting potential trade practice violations. The automated trade surveillance system shall load and process daily orders and trades no later than 24 hours after the completion of the trading day. The automated trade surveillance system shall have the capability to detect and flag specific trade execution patterns and trade anomalies; compute, retain, and compare trading statistics; compute trade gains, losses, and swap-equivalent positions; reconstruct the sequence of market activity; perform market analyses; and support system users to perform in-depth analyses and ad hoc queries of trade-related data.\n\n(e)  Real-time market monitoring.  A swap execution facility shall conduct real-time market monitoring of all trading activity on its system(s) or platform(s) to identify disorderly trading and any market or system anomalies. A swap execution facility shall have the authority to adjust trade prices or cancel trades when necessary to mitigate market disrupting events caused by malfunctions in its system(s) or platform(s) or errors in orders submitted by members and market participants. Any trade price adjustments or trade cancellations shall be transparent to the market and subject to standards that are clear, fair, and publicly available.\n\n(f)  Investigations and investigation reports \u2014(1)  Procedures.  A swap execution facility shall establish and maintain procedures that require its compliance staff to conduct investigations of possible rule violations. An investigation shall be commenced upon the receipt of a request from Commission staff or upon the discovery or receipt of information by the swap execution facility that indicates a reasonable basis for finding that a violation may have occurred or will occur.\n\n(2)  Timeliness.  Each compliance staff investigation shall be completed in a timely manner. Absent mitigating factors, a timely manner is no later than 12 months after the date that an investigation is opened. Mitigating factors that may reasonably justify an investigation taking longer than 12 months to complete include the complexity of the investigation, the number of firms or individuals involved as potential wrongdoers, the number of potential violations to be investigated, and the volume of documents and data to be examined and analyzed by compliance staff.\n\n(3)  Investigation reports when a reasonable basis exists for finding a violation.  Compliance staff shall submit a written investigation report for disciplinary action in every instance in which compliance staff determines from surveillance or from an investigation that a reasonable basis exists for finding a rule violation. The investigation report shall include the reason the investigation was initiated; a summary of the complaint, if any; the relevant facts; compliance staff's analysis and conclusions; and a recommendation as to whether disciplinary action should be pursued.\n\n(4)  Investigation reports when no reasonable basis exists for finding a violation.  If after conducting an investigation, compliance staff determines that no reasonable basis exists for finding a rule violation, it shall prepare a written report including the reason the investigation was initiated; a summary of the complaint, if any; the relevant facts; and compliance staff's analysis and conclusions.\n\n(5)  Warning letters.  No more than one warning letter may be issued to the same person or entity found to have committed the same rule violation within a rolling twelve month period.\n\n(g)  Additional sources for compliance.  A swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.203."], ["17:17:1.0.1.1.30.3.7.5", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.204 Regulatory services provided by a third party.", "CFTC", "", "", "", "(a)  Use of regulatory service provider permitted.  A swap execution facility may choose to contract with a registered futures association or another registered entity, as such terms are defined under the Act, or the Financial Industry Regulatory Authority (collectively, \u201cregulatory service providers\u201d), for the provision of services to assist in complying with the Act and Commission regulations thereunder, as approved by the Commission. Any swap execution facility that chooses to contract with a regulatory service provider shall ensure that such provider has the capacity and resources necessary to provide timely and effective regulatory services, including adequate staff and automated surveillance systems. A swap execution facility shall at all times remain responsible for the performance of any regulatory services received, for compliance with the swap execution facility's obligations under the Act and Commission regulations, and for the regulatory service provider's performance on its behalf.\n\n(b)  Duty to supervise regulatory service provider.  A swap execution facility that elects to use the service of a regulatory service provider shall retain sufficient compliance staff to supervise the quality and effectiveness of the regulatory services provided on its behalf. Compliance staff of the swap execution facility shall hold regular meetings with the regulatory service provider to discuss ongoing investigations, trading patterns, market participants, and any other matters of regulatory concern. A swap execution facility shall also conduct periodic reviews of the adequacy and effectiveness of services provided on its behalf. Such reviews shall be documented carefully and made available to the Commission upon request.\n\n(c)  Regulatory decisions required from the swap execution facility.  A swap execution facility that elects to use the service of a regulatory service provider shall retain exclusive authority in all substantive decisions made by its regulatory service provider, including, but not limited to, decisions involving the cancellation of trades, the issuance of disciplinary charges against members or market participants, and denials of access to the trading platform for disciplinary reasons. A swap execution facility shall document any instances where its actions differ from those recommended by its regulatory service provider, including the reasons for the course of action recommended by the regulatory service provider and the reasons why the swap execution facility chose a different course of action."], ["17:17:1.0.1.1.30.3.7.6", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.205 Audit trail.", "CFTC", "", "", "[78 FR 33582, June 4, 2013, as amended at 86 FR 9247, Feb. 11, 2021]", "A swap execution facility shall establish procedures to capture and retain information that may be used in establishing whether rule violations have occurred.\n\n(a)  Audit trail required.  A swap execution facility shall capture and retain all audit trail data necessary to detect, investigate, and prevent customer and market abuses. Such data shall be sufficient to reconstruct all indications of interest, requests for quotes, orders, and trades within a reasonable period of time and to provide evidence of any violations of the rules of the swap execution facility. An acceptable audit trail shall also permit the swap execution facility to track a customer order from the time of receipt through execution on the swap execution facility.\n\n(b)  Elements of an acceptable audit trail program \u2014(1)  Original source documents.  A swap execution facility's audit trail shall include original source documents. Original source documents include unalterable, sequentially-identified records on which trade execution information is originally recorded, whether recorded manually or electronically. Records for customer orders (whether filled, unfilled, or cancelled, each of which shall be retained or electronically captured) shall reflect the terms of the order, an account identifier that relates back to the account(s) owner(s), the time of order entry, and the time of trade execution. Swap execution facilities shall require that all orders, indications of interest, and requests for quotes be immediately captured in the audit trail.\n\n(2)  Transaction history database.  A swap execution facility's audit trail program shall include an electronic transaction history database. An adequate transaction history database includes a history of all indications of interest, requests for quotes, orders, and trades entered into a swap execution facility's trading system or platform, including all order modifications and cancellations. An adequate transaction history database also includes:\n\n(i) All data that are input into the trade entry or matching system for the transaction to match and clear;\n\n(ii) The customer type indicator code;\n\n(iii) Timing and sequencing data adequate to reconstruct trading; and\n\n(3)  Electronic analysis capability.  A swap execution facility's audit trail program shall include electronic analysis capability with respect to all audit trail data in the transaction history database. Such electronic analysis capability shall ensure that the swap execution facility has the ability to reconstruct indications of interest, requests for quotes, orders, and trades, and identify possible trading violations with respect to both customer and market abuse.\n\n(4)  Safe storage capability.  A swap execution facility's audit trail program shall include the capability to safely store all audit trail data retained in its transaction history database. Such safe storage capability shall include the capability to store all data in the database in a manner that protects it from unauthorized alteration, as well as from accidental erasure or other loss. Data shall be retained in accordance with the recordkeeping requirements of Core Principle 10 for swap execution facilities and the associated regulations in subpart K of this part.\n\n(c)  Enforcement of audit trail requirements \u2014(1)  Annual audit trail and recordkeeping reviews.  A swap execution facility shall enforce its audit trail and recordkeeping requirements through at least annual reviews of all members and persons and firms subject to the swap execution facility's recordkeeping rules to verify their compliance with the swap execution facility's audit trail and recordkeeping requirements. Such reviews shall include, but are not limited to, reviews of randomly selected samples of front-end audit trail data for order routing systems; a review of the process by which user identifications are assigned and user identification records are maintained; a review of usage patterns associated with user identifications to monitor for violations of user identification rules; and reviews of account numbers and customer type indicator codes in trade records to test for accuracy and improper use.\n\n(2)  Enforcement program required.  A swap execution facility shall establish a program for effective enforcement of its audit trail and recordkeeping requirements. An effective program shall identify members and persons and firms subject to the swap execution facility's recordkeeping rules that have failed to maintain high levels of compliance with such requirements, and impose meaningful sanctions when deficiencies are found. Sanctions shall be sufficient to deter recidivist behavior. No more than one warning letter shall be issued to the same person or entity found to have committed the same violation of audit trail or recordkeeping requirements within a rolling twelve month period."], ["17:17:1.0.1.1.30.3.7.7", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "C", "Subpart C\u2014Compliance With Rules", "", "\u00a7 37.206 Disciplinary procedures and sanctions.", "CFTC", "", "", "", "A swap execution facility shall establish trading, trade processing, and participation rules that will deter abuses and have the capacity to enforce such rules through prompt and effective disciplinary action, including suspension or expulsion of members or market participants that violate the rules of the swap execution facility.\n\n(a)  Enforcement staff.  A swap execution facility shall establish and maintain sufficient enforcement staff and resources to effectively and promptly prosecute possible rule violations within the disciplinary jurisdiction of the swap execution facility.\n\n(b)  Disciplinary panels.  A swap execution facility shall establish one or more disciplinary panels that are authorized to fulfill their obligations under the rules of this subpart. Disciplinary panels shall meet the composition requirements of part 40 of this chapter, and shall not include any members of the swap execution facility's compliance staff or any person involved in adjudicating any other stage of the same proceeding.\n\n(c)  Hearings.  A swap execution facility shall adopt rules that provide for the following minimum requirements for any hearing:\n\n(1) The hearing shall be fair, shall be conducted before members of the disciplinary panel, and shall be promptly convened after reasonable notice to the respondent; and\n\n(2) If the respondent has requested a hearing, a copy of the hearing shall be made and shall become a part of the record of the proceeding. The record shall not be required to be transcribed unless:\n\n(i) The transcript is requested by Commission staff or the respondent;\n\n(ii) The decision is appealed pursuant to the rules of the swap execution facility; or\n\n(iii) The decision is reviewed by the Commission pursuant to section 8c of the Act or part 9 of this chapter. In all other instances, a summary record of a hearing is permitted.\n\n(d)  Decisions.  Promptly following a hearing conducted in accordance with the rules of the swap execution facility, the disciplinary panel shall render a written decision based upon the weight of the evidence contained in the record of the proceeding and shall provide a copy to the respondent. The decision shall include:\n\n(1) The notice of charges or a summary of the charges;\n\n(2) The answer, if any, or a summary of the answer;\n\n(3) A summary of the evidence produced at the hearing or, where appropriate, incorporation by reference of the investigation report;\n\n(4) A statement of findings and conclusions with respect to each charge, and a complete explanation of the evidentiary and other basis for such findings and conclusions with respect to each charge;\n\n(5) An indication of each specific rule that the respondent was found to have violated; and\n\n(6) A declaration of all sanctions imposed against the respondent, including the basis for such sanctions and the effective date of such sanctions.\n\n(e)  Disciplinary sanctions.  All disciplinary sanctions imposed by a swap execution facility or its disciplinary panels shall be commensurate with the violations committed and shall be clearly sufficient to deter recidivism or similar violations by other market participants. All disciplinary sanctions, including sanctions imposed pursuant to an accepted settlement offer, shall take into account the respondent's disciplinary history. In the event of demonstrated customer harm, any disciplinary sanction shall also include full customer restitution, except where the amount of restitution or to whom it should be provided cannot be reasonably determined.\n\n(f)  Warning letters.  Where a rule violation is found to have occurred, no more than one warning letter may be issued per rolling twelve month period for the same violation.\n\n(g)  Additional sources for compliance.  A swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.206."], ["17:17:1.0.1.1.30.4.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "D", "Subpart D\u2014Swaps Not Readily Susceptible to Manipulation", "", "\u00a7 37.300 Core Principle 3\u2014Swaps not readily susceptible to manipulation.", "CFTC", "", "", "", "The swap execution facility shall permit trading only in swaps that are not readily susceptible to manipulation."], ["17:17:1.0.1.1.30.4.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "D", "Subpart D\u2014Swaps Not Readily Susceptible to Manipulation", "", "\u00a7 37.301 General requirements.", "CFTC", "", "", "", "To demonstrate to the Commission compliance with the requirements of \u00a7 37.300, a swap execution facility shall, at the time it submits a new swap contract in advance to the Commission pursuant to part 40 of this chapter, provide the applicable information as set forth in appendix C to part 38 of this chapter\u2014Demonstration of Compliance That a Contract is not Readily Susceptible to Manipulation. A swap execution facility may also refer to the guidance and/or acceptable practices in appendix B of this part."], ["17:17:1.0.1.1.30.5.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.400 Core Principle 4\u2014Monitoring of trading and trade processing.", "CFTC", "", "", "", "The swap execution facility shall:\n\n(a) Establish and enforce rules or terms and conditions defining, or specifications detailing:\n\n(1) Trading procedures to be used in entering and executing orders traded on or through the facilities of the swap execution facility; and\n\n(2) Procedures for trade processing of swaps on or through the facilities of the swap execution facility; and\n\n(b) Monitor trading in swaps to prevent manipulation, price distortion, and disruptions of the delivery or cash settlement process through surveillance, compliance, and disciplinary practices and procedures, including methods for conducting real-time monitoring of trading and comprehensive and accurate trade reconstructions."], ["17:17:1.0.1.1.30.5.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.401 General requirements.", "CFTC", "", "", "", "A swap execution facility shall:\n\n(a) Collect and evaluate data on its market participants' market activity on an ongoing basis in order to detect and prevent manipulation, price distortions, and, where possible, disruptions of the physical-delivery or cash-settlement process;\n\n(b) Monitor and evaluate general market data in order to detect and prevent manipulative activity that would result in the failure of the market price to reflect the normal forces of supply and demand;\n\n(c) Demonstrate an effective program for conducting real-time monitoring of trading for the purpose of detecting and resolving abnormalities; and\n\n(d) Demonstrate the ability to comprehensively and accurately reconstruct daily trading activity for the purpose of detecting instances or threats of manipulation, price distortion, and disruptions."], ["17:17:1.0.1.1.30.5.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.402 Additional requirements for physical-delivery swaps.", "CFTC", "", "", "", "For physical-delivery swaps, the swap execution facility shall demonstrate that it:\n\n(a) Monitors a swap's terms and conditions as they relate to the underlying commodity market; and\n\n(b) Monitors the availability of the supply of the commodity specified by the delivery requirements of the swap."], ["17:17:1.0.1.1.30.5.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.403 Additional requirements for cash-settled swaps.", "CFTC", "", "", "", "(a) For cash-settled swaps, the swap execution facility shall demonstrate that it monitors the pricing of the reference price used to determine cash flows or settlement;\n\n(b) For cash-settled swaps listed on the swap execution facility where the reference price is formulated and computed by the swap execution facility, the swap execution facility shall demonstrate that it monitors the continued appropriateness of its methodology for deriving that price; and\n\n(c) For cash-settled swaps listed on the swap execution facility where the reference price relies on a third-party index or instrument, including an index or instrument traded on another venue, the swap execution facility shall demonstrate that it monitors the continued appropriateness of the index or instrument."], ["17:17:1.0.1.1.30.5.7.5", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.404 Ability to obtain information.", "CFTC", "", "", "", "(a) A swap execution facility shall demonstrate that it has access to sufficient information to assess whether trading in swaps listed on its market, in the index or instrument used as a reference price, or in the underlying commodity for its listed swaps is being used to affect prices on its market.\n\n(b) A swap execution facility shall have rules that require its market participants to keep records of their trading, including records of their activity in the index or instrument used as a reference price, the underlying commodity, and related derivatives markets, and make such records available, upon request, to the swap execution facility or, if applicable, to its regulatory service provider, and the Commission."], ["17:17:1.0.1.1.30.5.7.6", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.405 Risk controls for trading.", "CFTC", "", "", "", "The swap execution facility shall establish and maintain risk control mechanisms to prevent and reduce the potential risk of market disruptions, including, but not limited to, market restrictions that pause or halt trading under market conditions prescribed by the swap execution facility."], ["17:17:1.0.1.1.30.5.7.7", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.406 Trade reconstruction.", "CFTC", "", "", "", "The swap execution facility shall have the ability to comprehensively and accurately reconstruct all trading on its facility. All audit-trail data and reconstructions shall be made available to the Commission in a form, manner, and time that is acceptable to the Commission."], ["17:17:1.0.1.1.30.5.7.8", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.407 Regulatory service provider.", "CFTC", "", "", "", "A swap execution facility shall comply with the regulations in this subpart through a dedicated regulatory department or by contracting with a regulatory service provider pursuant to \u00a7 37.204."], ["17:17:1.0.1.1.30.5.7.9", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "E", "Subpart E\u2014Monitoring of Trading and Trade Processing", "", "\u00a7 37.408 Additional sources for compliance.", "CFTC", "", "", "", "A swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.400."], ["17:17:1.0.1.1.30.6.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "F", "Subpart F\u2014Ability to Obtain Information", "", "\u00a7 37.500 Core Principle 5\u2014Ability to obtain information.", "CFTC", "", "", "", "The swap execution facility shall:\n\n(a) Establish and enforce rules that will allow the facility to obtain any necessary information to perform any of the functions described in section 5h of the Act;\n\n(b) Provide the information to the Commission on request; and\n\n(c) Have the capacity to carry out such international information-sharing agreements as the Commission may require."], ["17:17:1.0.1.1.30.6.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "F", "Subpart F\u2014Ability to Obtain Information", "", "\u00a7 37.501 Establish and enforce rules.", "CFTC", "", "", "", "A swap execution facility shall establish and enforce rules that will allow the swap execution facility to have the ability and authority to obtain sufficient information to allow it to fully perform its operational, risk management, governance, and regulatory functions and any requirements under this part, including the capacity to carry out international information-sharing agreements as the Commission may require."], ["17:17:1.0.1.1.30.6.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "F", "Subpart F\u2014Ability to Obtain Information", "", "\u00a7 37.502 Collection of information.", "CFTC", "", "", "", "A swap execution facility shall have rules that allow it to collect information on a routine basis, allow for the collection of non-routine data from its market participants, and allow for its examination of books and records kept by the market participants on its facility."], ["17:17:1.0.1.1.30.6.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "F", "Subpart F\u2014Ability to Obtain Information", "", "\u00a7 37.503 Provide information to the Commission.", "CFTC", "", "", "", "A swap execution facility shall provide information in its possession to the Commission upon request, in a form and manner that the Commission approves."], ["17:17:1.0.1.1.30.6.7.5", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "F", "Subpart F\u2014Ability to Obtain Information", "", "\u00a7 37.504 Information-sharing agreements.", "CFTC", "", "", "", "A swap execution facility shall share information with other regulatory organizations, data repositories, and third-party data reporting services as required by the Commission or as otherwise necessary and appropriate to fulfill its self-regulatory and reporting responsibilities. Appropriate information-sharing agreements can be established with such entities or the Commission can act in conjunction with the swap execution facility to carry out such information sharing."], ["17:17:1.0.1.1.30.7.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "G", "Subpart G\u2014Position Limits or Accountability", "", "\u00a7 37.600 Core Principle 6\u2014Position limits or accountability.", "CFTC", "", "", "", "(a)  In general.  To reduce the potential threat of market manipulation or congestion, especially during trading in the delivery month, a swap execution facility that is a trading facility shall adopt for each of the contracts of the facility, as is necessary and appropriate, position limitations or position accountability for speculators.\n\n(b)  Position limits.  For any contract that is subject to a position limitation established by the Commission pursuant to section 4a(a) of the Act, the swap execution facility shall:\n\n(1) Set its position limitation at a level no higher than the Commission limitation; and\n\n(2) Monitor positions established on or through the swap execution facility for compliance with the limit set by the Commission and the limit, if any, set by the swap execution facility."], ["17:17:1.0.1.1.30.7.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "G", "Subpart G\u2014Position Limits or Accountability", "", "\u00a7 37.601 Additional sources for compliance.", "CFTC", "", "", "", "Until such time that compliance is required under part 151 of this chapter, a swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.600."], ["17:17:1.0.1.1.30.8.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "H", "Subpart H\u2014Financial Integrity of Transactions", "", "\u00a7 37.700 Core Principle 7\u2014Financial integrity of transactions.", "CFTC", "", "", "", "The swap execution facility shall establish and enforce rules and procedures for ensuring the financial integrity of swaps entered on or through the facilities of the swap execution facility, including the clearance and settlement of the swaps pursuant to section 2(h)(1) of the Act."], ["17:17:1.0.1.1.30.8.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "H", "Subpart H\u2014Financial Integrity of Transactions", "", "\u00a7 37.701 Required clearing.", "CFTC", "", "", "", "Transactions executed on or through the swap execution facility that are required to be cleared under section 2(h)(1)(A) of the Act or are voluntarily cleared by the counterparties shall be cleared through a Commission-registered derivatives clearing organization, or a derivatives clearing organization that the Commission has determined is exempt from registration."], ["17:17:1.0.1.1.30.8.7.3", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "H", "Subpart H\u2014Financial Integrity of Transactions", "", "\u00a7 37.702 General financial integrity.", "CFTC", "", "", "", "A swap execution facility shall provide for the financial integrity of its transactions:\n\n(a) By establishing minimum financial standards for its members, which shall, at a minimum, require that members qualify as an eligible contract participant as defined in section 1a(18) of the Act;\n\n(b) For transactions cleared by a derivatives clearing organization:\n\n(1) By ensuring that the swap execution facility has the capacity to route transactions to the derivatives clearing organization in a manner acceptable to the derivatives clearing organization for purposes of clearing; and\n\n(2) By coordinating with each derivatives clearing organization to which it submits transactions for clearing, in the development of rules and procedures to facilitate prompt and efficient transaction processing in accordance with the requirements of \u00a7 39.12(b)(7) of this chapter."], ["17:17:1.0.1.1.30.8.7.4", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "H", "Subpart H\u2014Financial Integrity of Transactions", "", "\u00a7 37.703 Monitoring for financial soundness.", "CFTC", "", "", "", "A swap execution facility shall monitor its members to ensure that they continue to qualify as eligible contract participants as defined in section 1a(18) of the Act."], ["17:17:1.0.1.1.30.9.7.1", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "I", "Subpart I\u2014Emergency Authority", "", "\u00a7 37.800 Core Principle 8\u2014Emergency authority.", "CFTC", "", "", "", "The swap execution facility shall adopt rules to provide for the exercise of emergency authority, in consultation or cooperation with the Commission, as is necessary and appropriate, including the authority to liquidate or transfer open positions in any swap or to suspend or curtail trading in a swap."], ["17:17:1.0.1.1.30.9.7.2", 17, "Commodity and Securities Exchanges", "I", "", "37", "PART 37\u2014SWAP EXECUTION FACILITIES", "I", "Subpart I\u2014Emergency Authority", "", "\u00a7 37.801 Additional sources for compliance.", "CFTC", "", "", "", "A swap execution facility may refer to the guidance and/or acceptable practices in appendix B of this part to demonstrate to the Commission compliance with the requirements of \u00a7 37.800."], ["28:28:1.0.1.1.38.0.32.1", 28, "Judicial Administration", "I", "", "37", "PART 37\u2014PROCEDURES FOR COORDINATING THE INVESTIGATION OF COMPLAINTS OR CHARGES OF EMPLOYMENT DISCRIMINATION BASED ON DISABILITY SUBJECT TO THE AMERICANS WITH DISABILITIES ACT AND SECTION 504 OF THE REHABILITATION ACT OF 1973", "", "", "", "\u00a7 37.1 Purpose and application.", "DOJ", "", "", "", "(a) This part establishes the procedures to be followed by the Federal agencies responsible for processing and resolving complaints or charges of employment discrimination filed against recipients of Federal financial assistance when jurisdiction exists under both section 504 and title I.\n\n(b) This part also repeats the provisions established by 28 CFR 35.171 for determining which Federal agency shall process and resolve complaints or charges of employment discrimination:\n\n(1) That fall within the overlapping jurisdiction of titles I and II (but are not covered by section 504); and\n\n(2) That are covered by title II, but not title I (whether or not they are also covered by section 504).\n\n(c) This part also describes the procedures to be followed when a complaint or charge arising solely under section 504 or title I is filed with a section 504 agency or the EEOC.\n\n(d) This part does not apply to complaints or charges against Federal contractors under section 503 of the Rehabilitation Act.\n\n(e) This part does not create rights in any person or confer agency jurisdiction not created or conferred by the ADA or section 504 over any complaint or charge."], ["28:28:1.0.1.1.38.0.32.10", 28, "Judicial Administration", "I", "", "37", "PART 37\u2014PROCEDURES FOR COORDINATING THE INVESTIGATION OF COMPLAINTS OR CHARGES OF EMPLOYMENT DISCRIMINATION BASED ON DISABILITY SUBJECT TO THE AMERICANS WITH DISABILITIES ACT AND SECTION 504 OF THE REHABILITATION ACT OF 1973", "", "", "", "\u00a7 37.10 Section 504 agency review of deferred complaints.", "DOJ", "", "", "", "(a)  Deferral by the section 504 agency.  When a section 504 agency refers a complaint to the EEOC pursuant to \u00a7 37.6(c)(2) or when it is determined that, as between the EEOC and a section 504 agency, the EEOC is the agency that shall process a dual-filed complaint or charge under \u00a7 37.8(a)(1) or \u00a7 37.8(e), the section 504 agency shall defer further action until:\n\n(1) The EEOC issues a no cause finding and a notice of right-to-sue pursuant to 29 CFR 1601.19; or\n\n(2) The EEOC enters into a conciliation agreement; or\n\n(3) The EEOC issues a cause finding and a notice of failure of conciliation pursuant to 29 CFR 1601.21, and:\n\n(i) If the recipient is not a government, governmental agency, or political subdivision, the EEOC completes enforcement proceedings or issues a notice of right-to-sue in accordance with 29 CFR 1601.28; or\n\n(ii) If the recipient is a government, governmental agency, or political subdivision, the EEOC refers the charge to the Civil Rights Division in accordance with 29 CFR 1601.29, and the Civil Rights Division completes enforcement proceedings or issues a notice of right-to-sue in accordance with 29 CFR 1601.28(d); or\n\n(4) The EEOC or, when a case has been referred pursuant to 29 CFR 1601.29, the Civil Rights Division, otherwise resolves the charge.\n\n(b)  Notification of the deferring agency.  The EEOC or the Civil Rights Division, as appropriate, shall notify the agency that has deferred processing of the charge upon resolution of any dual-filed complaint or charge.\n\n(c)  Agency review.  After receipt of notification that the EEOC or the Civil Rights Division, as appropriate, has resolved the complaint or charge, the agency shall promptly determine what further action by the agency is warranted. In reaching that determination, the agency shall give due weight to the findings and conclusions of the EEOC and to those of the Civil Rights Division, as applicable. If the agency proposes to take an action inconsistent with the EEOC's or the Civil Rights Division's findings and conclusions as to whether a violation has occurred, the agency shall notify in writing the Assistant Attorney General, the Chairman of the EEOC, and the head of the EEOC office that processed the complaint. In the written notification, the agency shall state the action that it proposes to take and the basis of its decision to take such action.\n\n(d)  Provision of information.  Upon written request, the EEOC or the Civil Rights Division shall provide the section 504 agency with any materials relating to its resolution of the charge, including its findings and conclusions, investigative reports and files, and any conciliation agreement."], ["28:28:1.0.1.1.38.0.32.11", 28, "Judicial Administration", "I", "", "37", "PART 37\u2014PROCEDURES FOR COORDINATING THE INVESTIGATION OF COMPLAINTS OR CHARGES OF EMPLOYMENT DISCRIMINATION BASED ON DISABILITY SUBJECT TO THE AMERICANS WITH DISABILITIES ACT AND SECTION 504 OF THE REHABILITATION ACT OF 1973", "", "", "", "\u00a7 37.11 EEOC review of deferred charges.", "DOJ", "", "", "", "(a)  Deferral by the EEOC.  When it is determined that a section 504 agency is the agency that shall process a dual-filed complaint or charge under \u00a7 37.8(a)(2) or \u00a7 37.8(e), the EEOC shall defer further action until the section 504 agency takes one of the following actions:\n\n(1) Makes a finding that a violation has not occurred;\n\n(2) Enters into a voluntary compliance agreement;\n\n(3) Following a finding that a violation has occurred, refers the complaint to the Civil Rights Division for judicial enforcement and the Civil Rights Division resolves the complaint;\n\n(4) Following a finding that a violation has occurred, resolves the complaint through final administrative enforcement action; or\n\n(5) Otherwise resolves the charge.\n\n(b)  Notification of the EEOC.  The section 504 agency shall notify the EEOC upon resolution of any dual-filed complaint or charge.\n\n(c)  Agency review.  After receipt of notification that the section 504 agency has resolved the complaint, the EEOC shall promptly determine what further action by the EEOC is warranted. In reaching that determination, the EEOC shall give due weight to the section 504 agency's findings and conclusions. If the EEOC proposes to take an action inconsistent with the section 504 agency's findings and conclusions as to whether a violation has occurred, the EEOC shall notify in writing the Assistant Attorney General, the Chairman of the EEOC, and the head of the section 504 agency that processed the complaint. In the written notification, the EEOC shall state the action that it proposes to take and the basis of its decision to take such action.\n\n(d)  Provision of information.  Upon written request, the section 504 agency shall provide the EEOC with any materials relating to its resolution of the complaint, including its conclusions, investigative reports and files, and any voluntary compliance agreement."]], "truncated": false, "filtered_table_rows_count": 235, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"part_number\" = :p0 order by section_id limit 101", "params": {"p0": "37"}}, "facet_results": {"title_number": {"name": "title_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=37", "results": [{"value": 49, "label": 49, "count": 98, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&title_number=49", "selected": false}, {"value": 17, "label": 17, "count": 63, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&title_number=17", "selected": false}, {"value": 10, "label": 10, "count": 34, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&title_number=10", "selected": false}, {"value": 50, "label": 50, "count": 27, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&title_number=50", "selected": false}, {"value": 28, "label": 28, "count": 13, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&title_number=28", "selected": false}], "truncated": false}, "agency": {"name": "agency", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=37", "results": [{"value": "DOT", "label": "DOT", "count": 98, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&agency=DOT", "selected": false}, {"value": "CFTC", "label": "CFTC", "count": 63, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&agency=CFTC", "selected": false}, {"value": "NRC", "label": "NRC", "count": 34, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&agency=NRC", "selected": false}, {"value": "FWS", "label": "FWS", "count": 27, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&agency=FWS", "selected": false}, {"value": "DOJ", "label": "DOJ", "count": 13, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&agency=DOJ", "selected": false}], "truncated": false}, "part_number": {"name": "part_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=37", "results": [{"value": "37", "label": "37", "count": 235, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json", "selected": true}], "truncated": false}}, "suggested_facets": [{"name": "title_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_facet=title_name"}, {"name": "chapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_facet=chapter"}, {"name": "subchapter", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_facet=subchapter"}, {"name": "part_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_facet=part_name"}, {"name": "subpart", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_facet=subpart"}], "next": "28~3A28~3A1~2E0~2E1~2E1~2E38~2E0~2E32~2E11,28~3A28~3A1~2E0~2E1~2E1~2E38~2E0~2E32~2E11", "next_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=37&_next=28~3A28~3A1~2E0~2E1~2E1~2E38~2E0~2E32~2E11%2C28~3A28~3A1~2E0~2E1~2E1~2E38~2E0~2E32~2E11&_sort=section_id", "private": false, "allow_execute_sql": true, "query_ms": 1818.960878008511, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}