81 FR 758 - Agency Information Collection Activities Under OMB Review

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 81, Issue 4 (January 7, 2016)

In compliance with the Paperwork Reduction Act of 1995 (``PRA''), this notice announces that the Information Collection Request (``ICR'') abstracted below has been forwarded to the Office of Management and Budget (``OMB'') for review and comment. The ICR describes the nature of the information collection and its expected costs and burden.

[Federal Register Volume 81, Number 4 (Thursday, January 7, 2016)]
[Notices]
[Pages 758-759]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00058]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995 
(``PRA''), this notice announces that the Information Collection 
Request (``ICR'') abstracted below has been forwarded to the Office of 
Management and Budget (``OMB'') for review and comment. The ICR 
describes the nature of the information collection and its expected 
costs and burden.

DATES: Comments must be submitted on or before February 8, 2016.

ADDRESSES: Comments regarding the burden estimated or any other aspect 
of the information collection, including suggestions for reducing the 
burden, may be submitted directly to the Office of Information and 
Regulatory Affairs (``OIRA)'' in OMB, within 30 days of the notice's 
publication, by email at [email protected]. Please identify 
the comments by OMB Control No. 3038-0094. Please provide the 
Commission with a copy of all submitted comments at the address listed 
below. Please refer to OMB Reference No. 3038-0094, found on http://reginfo.gov. Comments may also be mailed to the Office of Information 
and Regulatory Affairs, Office of Management and Budget, Attention: 
Desk Officer for the Commodity Futures Trading Commission, 725 17th 
Street NW., Washington, DC 20503, or through the Agency's Web site at 
http://comments.cftc.gov. Follow the instructions for submitting 
comments through the Web site.
    Comments may also be mailed to: Christopher Kirkpatrick, Secretary 
of the Commission, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581 or by Hand 
Deliver/Courier at the same address.
    A copy of the supporting statements for the collection of 
information discussed above may be obtained by visiting http://reginfo.gov. 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.

FOR FURTHER INFORMATION CONTACT: Christopher Hower, Special Counsel, 
Division of Clearing and Risk, Commodity Futures Trading Commission, 
(202) 418-6703; email: [email protected], and refer to OMB Control No. 
3038-0094.

SUPPLEMENTARY INFORMATION:
    Title: Clearing Member Risk Management (OMB Control No. 3038-0094). 
This is a request for extension of a currently approved information 
collection.
    Abstract: Section 3(b) of the Commodity Exchange Act (``Act'' or 
``CEA'') provides that one of the purposes of the Act is to ensure the 
financial integrity of all transactions subject to the Act and to avoid 
systemic risk. Section 8a(5) authorizes the Commission to promulgate 
such regulations that it believes are reasonably necessary to 
effectuate any of the provisions or to accomplish any of the purposes 
of the Act. Risk management systems are critical to the avoidance of 
systemic risks.
    Section 4s(j)(2) requires each Swap Dealer (``SD'') and Major Swap 
Participant (``MSP'') to have risk management systems adequate for 
managing its business. Section 4s(j)(4) requires each SD and MSP to 
have internal systems and procedures to perform any of the functions 
set forth in Section 4s.
    Section 4d requires FCMs to register with the Commodity Futures 
Trading Commission (``Commission''). It further requires Futures 
Commission Merchants (``FCMs'') to segregate customer funds. Section 4f 
requires FCMs to maintain certain levels of capital. Section 4g 
establishes reporting and recordkeeping requirements for FCMs.
    Pursuant to these provisions, the Commission adopted Sec.  1.73 
which applies to clearing members that are FCMs and Sec.  23.609 which 
applies to clearing members that are SDs or MSPs. These provisions 
require these clearing members to have procedures to limit the 
financial risks they incur as a result of clearing trades and liquid 
resources to meet the obligations that arise. The regulations require 
clearing members to:
    (1) Establish credit and market risk-based limits based on position 
size, order size, margin requirements, or similar factors;
    (2) use automated means to screen orders for compliance with the 
risk-based limits;
    (3) monitor for adherence to the risk-based limits intra-day and 
overnight;
    (4) conduct stress tests of all positions in the proprietary 
account and all positions in any customer account that could pose 
material risk to the futures commission merchant at least once per 
week;
    (5) evaluate its ability to meet initial margin requirements at 
least once per week;
    (6) evaluate its ability to meet variation margin requirements in 
cash at least once per week;
    (7) evaluate its ability to liquidate the positions it clears in an 
orderly manner, and estimate the cost of the liquidation at least once 
per month; and
    (8) test all lines of credit at least once per quarter.
    Each of these items has been observed by Commission staff as an 
element of an existing sound risk management program at an SD, MSP, or 
FCM. The Commission regulations require each clearing member to 
establish written procedures to comply with this regulation and to keep 
records documenting its compliance. The information collection 
obligations imposed by the regulations are necessary to implement 
certain provisions of the CEA, including ensuring that registrants 
exercise effective risk management and for the efficient operation of 
trading venues among SDs, MSPs, and FCMs. An agency 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 Commission did not receive any comments on the 60-day Federal 
Register notice, 80 FR 65217, dated October 26, 2015.
    Burden Statement: The respondent burden for this collection is 
estimated to average 2 hours per response for an estimated annual 
burden of 504 hours per respondent. This estimate includes the total 
time, effort, or financial resources expended by persons to generate, 
maintain, retain, disclose, or provide information to or for a federal 
agency.
    Respondents/Affected Entities: Swap Dealers, Major Swap 
Participants, and Futures Commission Merchants.
    Estimated number of respondents: 240 (106 Swap Dealers and Major 
Swap

[[Page 759]]

Participants and 134 Futures Commission Merchants).\1\
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    \1\ The 60-day notice indicated that there were 105 Swap Dealers 
and Major Swap Participants. There are 106 Swap Dealers and Major 
Swap Participants currently registered with the Commission.
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    Estimated number of responses per respondent: 252.\2\
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    \2\ The 60-day contained a typographical error, providing for 
253 estimated number of responses, instead of the correct figure of 
252.
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    Estimated total annual burden on respondents: 120,960 hours.
    Frequency of collection: As needed.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

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

    Dated: January 4, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-00058 Filed 1-6-16; 8:45 am]
 BILLING CODE 6351-01-P