81 FR 47779 - Agency Information Collection Activities: Notice of Intent To Renew Collection 3038-0074, Core Principles and Other Requirements for Swap Execution Facilities

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 81, Issue 141 (July 22, 2016)

The Commodity Futures Trading Commission (Commission) is announcing an opportunity for public comment on the renewal of the collection of certain information by the agency. Under the Paperwork Reduction Act (PRA), Federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information and to allow 60 days for public comment. This notice solicits comments in connection with part 37 of the Commission's regulations, which requires certain recordkeeping and reporting information collections for swap execution facilities (SEFs).

[Federal Register Volume 81, Number 141 (Friday, July 22, 2016)]
[Notices]
[Pages 47779-47781]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-17374]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection 3038-0074, Core Principles and Other Requirements for 
Swap Execution Facilities

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (Commission) is 
announcing an opportunity for public comment on the renewal of the 
collection of certain information by the agency. Under the Paperwork 
Reduction Act (PRA), Federal agencies are required to publish notice in 
the Federal Register concerning each proposed collection of information 
and to allow 60 days for public comment. This notice solicits comments 
in connection with part 37 of the Commission's regulations, which 
requires certain recordkeeping and reporting information collections 
for swap execution facilities (SEFs).

DATES: Comments must be submitted on or before September 20, 2016.

ADDRESSES: You may submit comments, identified by ``Renewal of 
Collection Pertaining to Core Principles and Other Requirements for 
Swap Execution Facilities'' by any of the following methods:
     The Agency's Web site, at http://comments.cftc.gov/. 
Follow the instructions for submitting comments through the Web site.
     Mail: Christopher Kirkpatrick, Secretary of the 
Commission, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581.
     Hand Delivery/Courier: Same as Mail above.
     Federal eRulemaking Portal: http://www.regulations.gov/. 
Follow the instructions for submitting comments through the Portal.
    Please submit your comments using only one method.

FOR FURTHER INFORMATION CONTACT: Steven A. Haidar, Attorney-Advisor, 
Division of Market Oversight, Commodity Futures Trading Commission, 
(202) 418-5611; email: [email protected], and refer to OMB Control No. 
3038-0074.

SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain 
approval from the Office of Management and Budget (OMB) for each 
collection of information they conduct or sponsor. ``Collection of 
Information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3 and 
includes agency requests or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
Section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3506(c)(2)(A), requires 
Federal agencies to provide a 60-day notice in the Federal Register 
concerning each proposed collection of information before submitting 
the collection to OMB for approval. To comply with this requirement, 
the Commission is publishing notice of the existing collections of 
information listed below.
    Title: Core Principles and Other Requirements for Swap Execution 
Facilities (OMB Control No. 3038-0074). This is a request for extension 
of currently approved information collections.
    Abstract: Title VII of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act) added new section 5h to the 
Commodity Exchange Act (CEA) to impose requirements concerning the 
registration and operation of SEFs, which the Commission has 
incorporated in part 37 of its regulations.\1\ These information 
collections are needed for the Commission to ensure that SEFs (and 
entities applying for SEF registration) comply with these requirements. 
Among other requirements, part 37 of the Commission's regulations 
imposes SEF registration requirements for a trading platform or system, 
obligates SEFs to provide transaction confirmations to swap 
counterparties, and requires SEFs to comply with 15 core principles.\2\
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    \1\ In general, this OMB control number covers the information 
collections in part 37 of the Commission's regulations, including 
subpart A and the SEF core principles (i.e., subparts B and C). 
However, any information collections related to Sec.  37.10 of the 
Commission's regulations are subject to a separate information 
collection with OMB control number 3038-0099 (Process for a Swap 
Execution Facility or Designated Contract Market to Make a Swap 
Available to Trade).
    \2\ These 15 core principles include: Enforcing rules; listing 
contracts for trading that are not readily susceptible to 
manipulation; monitoring trading to prevent market manipulation; 
obtaining information; adopting position limits or position 
accountability levels; adopting rules to enforce financial integrity 
of swaps transactions entered on or through the SEF; adopting rules 
to provide for the exercise of emergency authority, in consultation 
with the Commission; making public information regarding prices and 
volume on a timely basis; maintaining records of all activities of 
the business of the contract market in a form and manner acceptable 
to the Commission for five years; avoiding rules that result in 
unreasonable restraints of trade or anticompetitive burden on 
trading; enforcing rules to minimize conflicts of interest in its 
decision-making process; maintaining adequate financial resources; 
establishing system safeguards; and designating a chief compliance 
officer.

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[[Page 47780]]

    With respect to these information collections, the Commission 
invites comments on:
     Whether the collections of information are necessary for 
the proper performance of the functions of the Commission, including 
whether the information will have a practical use;
     The accuracy of the Commission's estimate of the burden of 
the collections of information, including the validity of the 
methodology and assumptions used;
     Ways to enhance the quality, usefulness, and clarity of 
the information to be collected; and
     Ways to minimize the burden of collection of information 
on those who are to respond, including through the use of appropriate 
automated electronic, mechanical, or other technological collection 
techniques or other forms of information technology; e.g., permitting 
electronic submission of responses.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
http://www.cftc.gov. You should submit only information that you wish 
to make available publicly. If you wish the Commission to consider 
information that you believe is exempt from disclosure under the 
Freedom of Information Act, a petition for confidential treatment of 
the exempt information may be submitted according to the procedures 
established in Sec.  145.9 of the Commission's regulations.\3\
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    \3\ 17 CFR 145.9.
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    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse or remove any or all of your 
submission from http://www.cftc.gov that it may deem to be 
inappropriate for publication, such as obscene language. All 
submissions that have been redacted or removed that contain comments on 
the merits of the Information Collection Request will be retained in 
the public comment file and will be considered as required under the 
Administrative Procedure Act and other applicable laws, and may be 
accessible under the Freedom of Information Act.
    Burden Statement: Part 37 of the Commission's regulations result in 
information collection requirements within the meaning of the PRA. 
These regulations impose requirements concerning the registration and 
operation of SEFs, including requiring SEFs to continually be in 
compliance with 15 core principles. The Commission initially estimated 
that each respondent SEF would incur annually 308 burden hours in 
connection with collections of information and that there would be 35 
SEF respondents for an aggregate of 10,780 annual burden hours.\4\ 
Based on the Commission's observation of registered SEFs' operations 
and compliance with part 37's requirements, the Commission is 
increasing this estimate and now estimates that each respondent SEF 
would incur annually 1,000 burden hours. Additionally, the Commission 
notes that rather than the initial estimate of 35 SEFs, there currently 
are 22 SEFs registered with the Commission. The recurring annual burden 
hours for each SEF are increased as noted in the applicable table 
below.
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    \4\ See 78 FR 33476, 33549. (35 SEFs x 308 burden hours = 10,780 
hours per SEF).
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    Furthermore, in its initial PRA analysis, the Commission did not 
explicitly distinguish the non-recurring burden hours related to the 
registration process from the Commission's estimate of the recurring, 
annual burden hours, but rather provided an aggregated number.\5\ Based 
on the experience gained by the Commission during the SEF permanent 
registration review process, the Commission estimates that each SEF 
incurs approximately 300 non-recurring burden hours in connection with 
completing the registration process. The non-recurring burden hours for 
each SEF are noted in the applicable table below.
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    \5\ See id.
    \6\ In the part 37 final rule release, the Commission estimated 
that there would be 35 SEFs. See id. The Commission, however, notes 
that 22 SEFs are currently registered with the Commission. 
Accordingly, the revised aggregate burden hour estimate accounts for 
both the increased annual burden hours estimate to 1,000 hours per 
SEF as well as the decrease in the number of SEFs from 35 to 22.
    \7\ 1,000 average recurring burden hours per respondent SEF x 22 
registered SEFs = 22,000 total burden hours for all registered SEFs.
    \8\ The Commission notes that respondent SEFs also are required 
to provide 4 quarterly reports and one annual report as part of 
their recurring information collection obligations.
    \9\ Based on the number of applicants that have applied for 
permanent SEF registration since the Commission first granted 
permanent registration status to SEFs on January 22, 2016, the 
Commission expects to receive 4 applications per year for permanent 
SEF registration.
    \10\ 300 average initial burden hours per respondent SEF x 4 
anticipated SEF applicants = 1,200 total burden hours incurred for 
all anticipated SEF applicants.

                 Recurring Annual Burden Hours for SEFs
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Respondents/Affected Entities..............  SEFs.
Estimated number of respondents............  22.\6\
Estimated annual burden hours per            1000 burden hours.
 respondent SEF.
Estimated total annual burden on             22,000 hours.\7\
 respondents.
Frequency of collection....................  Once per trade day.\8\
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               Non-Recurring Annual Burden Hours for SEFs
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Respondents/Affected Entities..............  SEFs.
Estimated number of respondents............  4.\9\
Estimated annual burden hours per            300.
 respondent SEF.
Estimated total annual burden on             1,200.\10\
 respondents.
Frequency of collection....................  Initial registration.
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[[Page 47781]]

    Authority:  44 U.S.C. 3501 et seq.

    Dated: July 19, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-17374 Filed 7-21-16; 8:45 am]
 BILLING CODE 6351-01-P