[Federal Register Volume 77, Number 243 (Tuesday, December 18, 2012)]
[Notices]
[Pages 74891-74894]
[FR Doc No: 2012-30427]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-68419; File No. TP 13-05]

Order Granting Exemptions From Certain Rules of Regulation SHO
Related to Hurricane Sandy

December 12, 2012.

I. Introduction

    Hurricane Sandy made landfall along the mid-Atlantic Coast on
October 29, 2012. The Depository Trust & Clearing Corporation
(``DTCC'') reported that its headquarters location in lower Manhattan
sustained significant water damage as a result of storm flooding. In
particular, DTCC reported that significant flooding and water damage
occurred throughout DTCC's vault at 55 Water Street (the ``Vault''),
used as part of DTCC's Custody Service for the safekeeping of physical
certificates. DTCC has stated that restoration of the physical
certificates will take some time, possibly months. As a result, the
physical certificates are considered inaccessible.\1\ However, DTCC and
The Securities Transfer Association, Inc. (``STA'') have recently
announced an agreement on a protocol for the replacement and transfer
of shares represented by the currently inaccessible physical
certificates that were held in the Vault at the time Hurricane Sandy
made landfall, facilitating DTCC's ability to continue physical
processing.\2\ Sales of owned securities, represented by physical
certificates that were located in the Vault at the time Hurricane Sandy
made landfall, whose settlement is dependent on the delivery of such
physical certificates (or documentation with equivalent effect) (sales
of ``Vault Securities''), may experience settlement delays as a result
of the inaccessibility of such physical certificates.\3\ Such
settlement delays have implications for compliance with Regulation SHO
under the Securities Exchange Act of 1934 (the ``Exchange Act'').\4\
SIFMA has requested relief from certain provisions of Regulation SHO in
connection with the inaccessible physical certificates that were in the
Vault at the time Hurricane Sandy made landfall.\5\
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    \1\ See ``DTCC Statement on Condition of Securities Vault,''
DTCC Press Release (Nov. 14, 2012) at http://www.dtcc.com/news/press/releases/2012/statement_vault.php.
    \2\ See ``DTCC and STA Agree on Protocol for Presentment of
Physical Securities,'' DTCC Press Release (Nov. 20, 2012) at http://www.dtcc.com/news/press/releases/2012/sta_statement.php.
    \3\ As a result of Hurricane Sandy, DTCC did not receive any
courier or mail shipments after October 26, 2012, and, as of
November 1, 2012, made arrangements for all receipted packages to be
routed to DTCC's recovery facility in Brooklyn, New York. In
addition, processing of physical certificates was suspended between
October 30, 2012, and November 2, 2012. Accordingly, the term
``Vault Securities'' does not include physical certificates
submitted to DTCC for custody on or after October 29, 2012, because
the settlement of sales of such securities is not dependent on the
delivery of physical certificates that were located in the Vault at
the time Hurricane Sandy made landfall. See ``DTCC Client Update on
Superstorm Sandy--Current and Ongoing Operations as Markets Re-Open;
Physical Certificates,'' Important Notice to All DTC, FICC and NSCC
Participants (Oct. 30, 2012) at http://www.dtcc.com/downloads/legal/imp_notices/2012/dtcc/z0033.pdf; ``DTCC Client Update on Superstorm
Sandy--Physical Processing and Custody Services,'' Important Notice
to All DTC and NSCC Participants (Nov. 1, 2012) at http://www.dtcc.com/downloads/legal/imp_notices/2012/dtcc/z0035.pdf;
``DTCC Client Update on Superstorm Sandy,'' Important Notice to All
DTC, FICC and NSCC Participants (Nov. 2, 2012) at http://www.dtcc.com/downloads/legal/imp_notices/2012/dtcc/z0036.pdf.
    \4\ 17 CFR 242.200 et seq.
    \5\ See letter from Ira Hammerman, General Counsel, Securities
Industry and Financial Markets Association, dated Dec. 12, 2012. In
its letter, SIFMA requests relief from the close-out requirement of
Rule 204 of Regulation SHO and seeks ``clarification'' with respect
to order marking under Rule 200 and the short sale price test
restriction under Rule 201. Further, the letter from SIFMA seeks
``confirmation'' that a short sale order of a Vault Security that a
person is deemed to own would qualify for ``short exempt'' marking
under Rule 201(d)(1) and would meet the terms of the exception to
the ``locate'' requirement in Rule 203(b)(2)(ii). However, as
discussed in this Exemptive Order, absent relief, a sale of a Vault
Security would not necessarily qualify for ``short exempt'' marking
under Rule 201(d)(1) or for the exception to the ``locate''
requirement under Rule 203(b)(2)(ii). See infra notes 12 to 15 and
accompanying text. Thus, we are treating SIFMA's request for
``confirmation'' as a request for relief from the ``locate''
requirement under Rule 203(b), the ``short exempt'' marking
requirement under Rule 200(g)(2), and the close-out requirement
under Rule 204.
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    The Commission is providing certain exemptions from the ``locate,''
short sale price test, and close-out requirements of Regulation SHO for
sales of Vault Securities. Absent further action by the Commission,
these exemptions will expire on February 1, 2013.

II. Regulation SHO

A. Marking, ``Locate,'' and Short Sale Price Test Requirements Under
Rules 200, 203, and 201 of Regulation SHO

    Rule 200(g) of Regulation SHO \6\ provides that broker-dealers must
mark all sell orders of any equity security as ``long,'' ``short,'' or
``short exempt.'' Under Rule 200(g)(1), a broker-dealer may mark an
order to sell ``long'' only if the seller is deemed to own the security
being sold pursuant to paragraphs (a) through (f) of Rule 200 and
either: (1) The security to be delivered is in the physical possession
or control of the broker-dealer; or (2) it

is reasonably expected that the security will be in the physical
possession or control of the broker-dealer no later than the settlement
of the transaction.
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    \6\ 17 CFR 242.200(g).
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    Pursuant to Rule 203(b) of Regulation SHO,\7\ a broker-dealer may
not accept a short sale order in an equity security from another
person, or effect a short sale in an equity security for its own
account, unless the broker-dealer has: (1) Borrowed the security, or
entered into a bona fide arrangement to borrow the security; or (2)
reasonable grounds to believe that the security can be borrowed so that
it can be delivered on the date delivery is due. This ``locate''
requirement must be met and documented prior to effecting a short
sale.\8\
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    \7\ 17 CFR 242.203(b).
    \8\ There are certain exceptions to the ``locate'' requirement
in Rule 203(b)(2). See 17 CFR 242.203(b)(2).
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    Rule 201 of Regulation SHO \9\ establishes a short sale-related
circuit breaker that, if triggered, imposes a restriction on the price
at which a covered security \10\ may be sold short (``short sale price
test''). Paragraphs (c) and (d) of Rule 201 permit broker-dealers to
mark certain short sale orders as ``short exempt,'' and trading
centers' policies and procedures must be reasonably designed to permit
the execution or display of orders marked ``short exempt'' without
regard to whether the order is at a permissible price under the short
sale price test.\11\
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    \9\ 17 CFR 242.201.
    \10\ The term ``covered security'' is defined as any NMS stock
as defined in Rule 600(b)(47) of Regulation NMS. See 17 CFR
242.201(a)(1); 17 CFR 242.600(b)(47).
    \11\ See 17 CFR 242.201(c), (d), (b)(1)(iii)(B). Under Rule
200(g)(2), a sale order shall be marked ``short exempt'' only if the
provisions of Rule 201(c) or (d) are met. See 17 CFR 242.200(g)(2).
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    Certain types of Vault Security sales necessarily involve
processing delays, notwithstanding the current inaccessibility of
physical certificates that were held in the Vault at the time Hurricane
Sandy made landfall. For example, this could include the sale of
formerly restricted securities pursuant to Rule 144 of the Securities
Act of 1933, where the security may not be capable of being delivered
on the settlement date due to processing delays to remove the
restricted legend. Further, processing delays could arise where a
convertible security, option, or warrant has been tendered for
conversion or exchange, such that the underlying security is not
reasonably expected to be received by settlement date. Under these
circumstances, a broker-dealer generally would not have a reasonable
expectation that the securities would be in its physical possession or
control by the settlement date. These types of sell orders cannot be
marked ``long'' and must be marked ``short'' or ``short exempt.'' \12\
The Commission has provided specific exceptions from the ``locate''
requirement and the short sale price test requirement of Regulation SHO
for sales of securities that the person is deemed to own pursuant to
Rule 200 of Regulation SHO, provided that the person intends to deliver
the securities as soon as all restrictions on delivery have been
removed.\13\ In providing such exceptions, the Commission emphasized
that these sales are treated as short sales solely because the seller
is unable to deliver the security that it owns to its broker-dealer
prior to settlement, based on circumstances outside the seller's
control and through no fault of the seller or the broker-dealer.\14\
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    \12\ See Exchange Act Release No. 50103 (July 28, 2004), 69 FR
48008, 48012, 48015 (Aug. 6, 2004) (``Regulation SHO Adopting
Release'').
    \13\ See 17 CFR 242.203(b)(2)(ii); 242.201(d)(1); Regulation SHO
Adopting Release, 69 FR at 48015; Exchange Act Release No. 61595
(Feb. 26, 2010), 75 FR 11232, 11266 (Mar. 10, 2010) (``Rule 201
Adopting Release''). Under Rule 201(d)(1), a broker-dealer may mark
a short sale order ``short exempt'' if the broker-dealer has a
reasonable basis to believe that the short sale order is by a person
that is deemed to own the covered security pursuant to Rule 200 of
Regulation SHO, provided that the person intends to deliver the
security as soon as all restrictions on delivery have been removed.
See 17 CFR 242.201(d)(1).
    \14\ See Regulation SHO Adopting Release, 69 FR at 48015; Rule
201 Adopting Release, 75 FR at 11266.
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    In addition, due to the inaccessibility of physical certificates in
the Vault as a result of flooding from Hurricane Sandy, other sell
orders for Vault Securities also may not qualify for ``long'' marking
under Rule 200(g)(1).\15\ In particular, a broker-dealer may not have a
reasonable expectation that these Vault Securities will be in the
physical possession or control of the broker-dealer by the settlement
date. Absent relief, solely because the seller is unable to deliver the
owned security to its broker-dealer prior to settlement due to the
unusual circumstances of Hurricane Sandy that resulted in the current
inaccessibility of physical certificates in the Vault, sales of these
owned securities must be marked ``short'' or ``short exempt'' and may
be subject to the ``locate'' and short sale price test requirements. As
a result, we believe that the relief from the ``locate'' and short sale
price test requirements of Regulation SHO provided by this Exemptive
Order is appropriate in the public interest and consistent with the
protection of investors.
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    \15\ Depending on the circumstances, certain sell orders of
Vault Security may be marked ``long.'' Consistent with Rule
200(g)(1) of Regulation SHO, a broker-dealer may mark a sell order
of a Vault Security ``long'' if the broker-dealer has a reasonable
expectation that the Vault Securities will be in the physical
possession or control of the broker-dealer by the settlement date.
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    Accordingly, it is ordered, pursuant to Section 36 of the Exchange
Act,\16\ that a broker-dealer is exempt from the ``locate'' requirement
of Rule 203(b), including the delivery requirement of Rule
203(b)(2)(ii),\17\ with respect to a short sale order in a Vault
Security, and is exempt from Rule 200(g)(2) with respect to such order,
and thus may mark such order ``short exempt'' for purposes of the short
sale price test of Rule 201 without meeting the requirements of Rule
201(c) or (d),\18\ subject to the following conditions:
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    \16\ Section 36 of the Exchange Act authorizes the Commission,
by rule, regulation or order, to exempt, either conditionally or
unconditionally, any person, security or transaction, or any class
or classes of persons, securities or transactions, from any
provision or provisions of the Exchange Act or any rule or
regulation thereunder, to the extent that such exemption is
necessary or appropriate in the public interest, and is consistent
with the protection of investors. 15 U.S.C. 78mm(a).
    \17\ The exception to the ``locate'' requirement in Rule
203(b)(2)(ii) provides that if the seller has not delivered the
security that it is deemed to own pursuant to Rule 200 of Regulation
SHO within 35 days after the trade date, the broker-dealer that
effected the sale must borrow securities or close out the short
position by purchasing securities of like kind and quantity. See 17
CFR 242.203(b)(2)(ii). As discussed above, certain sell orders of
Vault Securities may qualify for the exception from the ``locate''
requirement under Rule 203(b)(2)(ii). See supra notes 12 to 14 and
accompanying text.
    \18\ We remind broker-dealers that, as a general matter, the
``short exempt'' marking provided by Rule 200(g)(2) is used to
represent a short sale order that qualifies for an exception to the
short sale price test requirement in Rule 201(d) or that meets the
terms of the broker-dealer provision in Rule 201(c). The ``short
exempt'' marking may not be used to represent that an exception to
the ``locate'' requirement applies to the short sale order, unless
the order can be marked ``short exempt'' pursuant to Rule 200(g)(2).
See Rule 201 Adopting Release, 75 FR at 11266 n.472 (``To the extent
that an exception to Regulation SHO's `locate' requirement applies
to a short sale order, such order must be marked `short' in
accordance with Rule 200(g) of Regulation SHO unless the order can
be marked `short exempt' pursuant to Rule 200(g)(2) of Regulation
SHO.'').
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    (a) The broker-dealer determines, prior to accepting such short
sale order from another person, or effecting such short sale for its
own account, that the sale is a sale of a Vault Security \19\ that the
seller is deemed to own pursuant to Rule 200 of Regulation SHO; \20\
and
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    \19\ A Vault Security sale would include situations where the
security to be sold, a security convertible into or exchangeable for
it, or a right or warrant to subscribe to it, is represented by a
physical certificate that was held in the Vault at the time
Hurricane Sandy made landfall. Such determination could be based,
for example, on records indicating that the sale involves a physical
certificate custodied at DTCC and that the physical certificate was
submitted to DTCC for custody on or before October 26, 2012. See
supra note 3.
    \20\ 17 CFR 242.200.

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    (b) The broker-dealer documents the determination made pursuant to
condition (a) above.

B. Close-Out Requirements Under Rule 204 of Regulation SHO

    Rule 204(a) of Regulation SHO \21\ generally requires that
participants of a registered clearing agency (``Participants'') close
out fail to deliver positions at a registered clearing agency \22\ in
any equity security for a sale transaction in that equity security by
no later than the beginning of trading on the next settlement day after
a fail to deliver resulting from a short sale (generally T+4), and no
later than the beginning of trading on the third settlement day after a
fail to deliver resulting from a long sale or a sale resulting from
bona fide market making activities at the time of the sale (generally
T+6). A close out is effected by purchasing or borrowing shares of like
kind and quantity.
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    \21\ 17 CFR 242.204(a).
    \22\ The term ``registered clearing agency'' means a clearing
agency, as defined in Section 3(a)(23)(A) of the Exchange Act, that
is registered as such pursuant to Section 17A of the Exchange Act.
See 15 U.S.C. 78c(a)(23)(A); 15 U.S.C. 78q-1. The majority of equity
trades in the United States are cleared and settled through systems
administered by clearing agencies registered with the Commission.
The National Securities Clearing Corporation (``NSCC'') clears and
settles the majority of equity securities trades conducted on the
exchanges and in the over-the-counter market. NSCC clears and
settles trades through the Continuous Net Settlement (``CNS'')
system, which nets the securities delivery and payment obligations
of all of its members. See Exchange Act Release No. 60388 (July 27,
2009), 74 FR 38266, 38268 n.35 (July 31, 2009) (``Rule 204 Adopting
Release'').
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    Rule 204(a)(2) provides an extended close-out timeframe (T+35) for
fail to deliver positions at a registered clearing agency in any equity
security resulting from a sale of a security that a person is deemed to
own,\23\ similar to the exceptions to the ``locate'' requirement and
short sale price test requirement discussed above.\24\ Thus, fails to
deliver resulting from certain sales of Vault Securities would
currently be eligible for the extended close-out timeframe provided by
Rule 204(a)(2).\25\
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    \23\ See 17 CFR 242.204(a)(2); see also Rule 204 Adopting
Release, 74 FR at 38277 n.141. Under Rule 204(a)(2), a Participant
that has a fail to deliver position resulting from a sale of a
security that a person is deemed to own pursuant to Rule 200 of
Regulation SHO and that such person intends to deliver as soon as
all restrictions on delivery have been removed must, by no later
than the beginning of regular trading hours on the thirty-fifth
consecutive calendar day following the trade date for the
transaction, immediately close out the fail to deliver position by
purchasing or borrowing securities of like kind and quantity. See 17
CFR 242.204(a)(2).
    \24\ See supra notes 12 to 14 and accompanying text.
    \25\ See Rule 204 Adopting Release, 74 FR at 38277-38278.
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    Pursuant to Rule 204(b) of Regulation SHO,\26\ a Participant that
has not closed out a fail to deliver position in an equity security in
accordance with Rule 204(a), and any broker-dealer from which the
Participant receives trades for clearance and settlement, may not
accept a short sale order in the equity security from another person or
effect a short sale in the equity security for its own account, without
first borrowing the security or entering into a bona fide arrangement
to borrow the security, until the Participant closes out the fail to
deliver position by purchasing securities of like kind and quantity and
that purchase has cleared and settled at a registered clearing agency
(the ``Penalty Box'').
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    \26\ 17 CFR 242.204(b).
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    SIFMA has stated that there may be situations where, in connection
with the inaccessibility of the physical certificates that were located
in the Vault following flooding from Hurricane Sandy, Vault Security
sales may result in a CNS fail to deliver, such that Participants would
be required to close out the fail to deliver position pursuant to Rule
204(a) \27\ and, if they did not, would be subject to the Penalty Box.
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    \27\ 17 CFR 242.204(a).
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    Rule 204 is intended to help reduce fails to deliver and address
potentially abusive ``naked'' short selling.\28\ In providing an
extended close-out timeframe for sales of deemed to own securities, the
Commission stated that additional time is warranted for these sales and
such additional time would not undermine the goal of reducing fails to
deliver because ``these are sales of owned securities that cannot be
delivered by settlement date due solely to processing delays outside
the seller's or broker-dealer's control. Moreover, delivery will be
made on such sales as soon as all restrictions on delivery have been
removed.'' \29\ We believe that, due to the inaccessibility of physical
certificates that were held in the Vault at the time Hurricane Sandy
made landfall, sales of Vault Securities raise similar policy
considerations at this time. We do not believe that the fails to
deliver that may occur as a result of Vault Security sales, due to the
unusual and exigent circumstances of Hurricane Sandy, raise the
concerns that Rule 204 was designed to address. Thus, we believe that
the relief from the close-out requirement of Regulation SHO provided by
this Exemptive Order is appropriate in the public interest and
consistent with the protection of investors.
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    \28\ See Rule 204 Adopting Release, 74 FR at 38267-38269.
    \29\ Id.
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    Accordingly, it is further ordered, pursuant to Section 36 of the
Exchange Act,\30\ that a Participant is exempt from the close-out
requirement of Rule 204(a) \31\ and the Penalty Box of Rule 204(b) \32\
of Regulation SHO with respect to a fail to deliver position resulting
from the sale of a Vault Security,\33\ subject to the following
conditions:
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    \30\ See supra note 16.
    \31\ 17 CFR 242.204(a).
    \32\ 17 CFR 242.204(b).
    \33\ Rule 203(b)(3) of Regulation SHO provides that if a
Participant has a fail to deliver position at a registered clearing
agency in a threshold security, as defined by Rule 203(c)(6), for
thirteen consecutive settlement days, the Participant shall
immediately thereafter close out the fail to deliver position by
purchasing securities of like kind and quantity. If the sale of a
Vault Security resulted in a fail to deliver position in a threshold
security and that fail to deliver position persisted for thirteen
consecutive settlement days because the close-out date applicable
under this Exemptive Order had not yet arrived, Rule 203(b)(3) would
nonetheless require the Participant to close out the fail to deliver
position. Accordingly, Participants are exempt from the close-out
requirements of Rule 203(b)(3) with respect to fail to deliver
positions in threshold securities resulting from Vault Security
sales, provided that the Participants close out the fail to deliver
positions in compliance with this Exemptive Order. See 17 CFR
242.203(b)(3).
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    (a) The Participant must determine and document that the fail to
deliver resulted from a sale of a Vault Security \34\ that a person is
deemed to own pursuant to Rule 200 of Regulation SHO; \35\
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    \34\ A Vault Security sale would include situations where the
security sold, a security convertible into or exchangeable for it,
or a right or warrant to subscribe to it, is represented by a
physical certificate that was held in the Vault at the time
Hurricane Sandy made landfall. Such determination could be based,
for example, on records indicating that the sale involves a physical
certificate custodied at DTCC and that the physical certificate was
submitted to DTCC for custody on or before October 26, 2012. See
supra note 3.
    \35\ 17 CFR 242.200.
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    (b) The Participant must check DTCC systems on a daily basis to
determine when a Vault Security, the sale of which resulted in a fail
to deliver position, is available for settlement; \36\
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    \36\ We understand that DTCC systems (including the Participant
Browser System and the Participant Terminal System) enable
Participants to verify their positions in Vault Securities and issue
withdrawal instructions. We understand that these systems permit
Participants, in conjunction with the Participant's own books and
records, to track when Vault Securities have been debited
(withdrawn) and sent to the transfer agent and when the Vault
Securities are available for settlement after they have been
returned to DTCC and are available for Participant pickup, are
mailed directly to the customer, or are set up as a Direct
Registration System account, and that Participants check these
systems for completed status of physical certificate processing on a
daily basis.
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    (c) The Participant must deliver the Vault Security as soon as
possible, and

in any event must deliver the Vault Security or close out the fail to
deliver position resulting from the Vault Security sale by purchasing
or borrowing securities of like kind and quantity by no later than the
beginning of regular trading hours on the fourth settlement day
following the date on which the Participant determines, in accordance
with condition (b) above, that the Vault Security, the sale of which
resulted in the fail to deliver position, is available for settlement;
\37\ and
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    \37\ For example, a Participant submitted a sale on October 16,
2012, for clearance and settlement with an original expected
settlement date of October 19, 2012. The security sold was a
restricted Vault Security under Rule 144 whose physical certificate
was located in the Vault. The Participant determines, as a result of
the daily check of DTCC systems for status of the Vault Securities,
that the Vault Security is available for settlement on December 12,
2012. Normally Rule 204(a)(2) would apply and the Participant would
be required to close out the resulting fail to deliver position
thirty-five calendar days after trade date, on November 20, 2012.
Because the Vault Security was not available due to Hurricane Sandy
on November 20th, the Participant would be able to avail itself of
the adjusted close-out timeframe provided in condition (c) above. In
this limited instance, pursuant to this Exemptive Order, the
Participant would be required to deliver the Vault Security as soon
as possible, and in any event must deliver the Vault Security or
close out the fail to deliver position by no later than the
beginning of regular trading hours on December 18, 2012.
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    (d) The Participant's books and records must reflect that it made
delivery of the Vault Security or closed out the fail to deliver
position resulting from the Vault Security sale within the applicable
time period, consistent with this Exemptive Order.

III. Modification, Revocation, and Expiration of Exemptions

    The exemptions granted herein are subject to modification or
revocation if at any time the Commission determines that such action is
necessary or appropriate in furtherance of the purposes of the Exchange
Act, and, absent further action by the Commission, will expire on
February 1, 2013.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\38\
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    \38\ See 17 CFR 200.30-3(a)(11).
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Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2012-30427 Filed 12-17-12; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register Volume 85, Number 64 (Thursday, April 2, 2020)]
[Rules and Regulations]
[Pages 18438-18439]
[FR Doc No: 2020-05934]

=======================================================================
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DEPARTMENT OF COMMERCE

Bureau of Industry and Security

15 CFR Parts 732 and 734

[Docket No.<PHONE_NUMBER>]
RIN 0694-AF47

Control of Firearms, Guns, Ammunition and Related Articles the
President Determines No Longer Warrant Control Under the United States
Munitions List (USML); Notifying the Public of the Bureau's Interim
Measures With Respect to March 6, 2020 Court Order

AGENCY: Bureau of Industry and Security, Department of Commerce.

ACTION: Notification of court order.

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SUMMARY: The Bureau of Industry and Security (BIS) is publishing this
notification to alert the public of the Bureau's interim measures with
respect to a court order issued on March 6, 2020.

DATES: The court order was effective March 6, 2020.

FOR FURTHER INFORMATION CONTACT: Steven Clagett, Office of
Nonproliferation Controls and Treaty Compliance, Nuclear and Missile
Technology Controls Division, tel.<PHONE_NUMBER> or email
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION: On March 6, 2020, the Honorable Richard A.
Jones, District Judge of the U.S. District Court for the Western
District of Washington issued an order enjoining the U.S. Department of
State from implementing or enforcing the regulation entitled
International Traffic In Arms Regulations: U.S. Munitions List
Categories I, II, and III, 85 FR 3819 (Jan. 23, 2020) ``insofar as it
alters the status quo restrictions on technical data and software
directly related to the production of firearms or firearm parts using a
3D-printer or similar equipment.'' (Case No. 2:20-cv-00111-RAJ).
    As a result, any request for licenses of items that would otherwise
fall under the U.S. Department of Commerce regulation, 15 CFR 732.2(b)
and 734.7(c) (added by the final rule, entitled, Control of Firearms,
Guns, Ammunition and Related Articles the President Determines No
Longer Warrant Control Under the United States Munitions List (USML);
85 FR 4136, Jan. 23, 2020), should instead be directed to the U.S.
Department of State.
    BIS posted information on its website to alert the public of the
Bureau's

interim measures with respect to this court order. See https://www.bis.doc.gov/index.php/component/docman/?task=doc_download&gid=2535.
For additional information about the court ordered injunction
pertaining to revisions to the U.S. https://www.pmddtc.state.gov/ddtc_public?id=ddtc_public_portal_news_and_events&timeframe=week.

    Dated: March 16, 2020.
Matthew S. Borman,
Deputy Assistant Secretary for Export Administration.
[FR Doc. 2020-05934 Filed 4-1-20; 8:45 am]
BILLING CODE 3510-33-P