82 FR 18900 - Agency Information Collection Activities: Notice of Intent To Renew Collection Number 3038-0091, Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 82, Issue 77 (April 24, 2017)

The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is announcing an opportunity for public comment on the proposed renewal of a 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, including each proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments on the collections of information provided for by the Commission's regulations under the Commodity Exchange Act (``CEA'') relating to the protection of customer collateral held by futures commission merchants (``FCM'') and derivatives clearing organizations (``DCO'') to serve as margin in cleared swaps transactions.

[Federal Register Volume 82, Number 77 (Monday, April 24, 2017)]
[Notices]
[Pages 18900-18901]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-08161]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection Number 3038-0091, Disclosure and Retention of Certain 
Information Relating to Cleared Swaps Customer Collateral

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') is announcing an opportunity for public comment on the 
proposed renewal of a 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, including each proposed extension 
of an existing collection of information, and to allow 60 days for 
public comment. This notice solicits comments on the collections of 
information provided for by the Commission's regulations under the 
Commodity Exchange Act (``CEA'') relating to the protection of customer 
collateral held by futures commission merchants (``FCM'') and 
derivatives clearing organizations (``DCO'') to serve as margin in 
cleared swaps transactions.

DATES: Comments must be submitted on or before June 23, 2017.

ADDRESSES: You may submit comments, identified by ``Disclosure and 
Retention of Certain Information Relating to Cleared Swaps Customer 
Collateral,'' and Collection Number 3038-0091 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.
    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: Jacob Chachkin, Special Counsel, 202-
418-5496, email: [email protected]; or Joshua Beale, Special Counsel, 
202-418-5446, email: [email protected], Division of Swap Dealer and 
Intermediary Oversight, Commodity Futures Trading Commission.

SUPPLEMENTARY INFORMATION: Under the PRA,\1\ 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, including each 
proposed extension of an existing collection of information, before 
submitting the collection to OMB for approval. To comply with this 
requirement, the CFTC is publishing notice of the proposed collection 
of information listed below.
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    \1\ 44 U.S.C. 3501 et seq.
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    Title: Disclosure and Retention of Certain Information Relating to 
Cleared Swaps Customer Collateral (OMB Control No. 3038-0091). This is 
a request for an extension of a currently approved information 
collection.

[[Page 18901]]

    Abstract: Part 22 of the Commission's regulations under the CEA 
establish rules for the protection of customer collateral held by FCMs 
and DCOs to serve as margin in cleared swaps transactions. As part of 
this regulatory scheme, regulations 22.2(g), 22.5(a), 22.11, 22.12, 
22.16, and 22.17 impose recordkeeping and third-party disclosure 
requirements on FCMs and DCOs. In addition, regulation 22.13(c)(2) 
indirectly requires FCMs who post excess collateral with DCOs to 
perform certain computations regarding such collateral, although it is 
not expected to materially affect the total paperwork burden associated 
with part 22.
    Regulation 22.2(g) requires each FCM with Cleared Swaps Customer 
Accounts \2\ to, among other things, compute daily and report to the 
Commission the amount of Cleared Swaps Customer Collateral \3\ on 
deposit in such accounts, the amount of such collateral required to be 
on deposit in such accounts and the amount of the FCM's residual 
financial interest in such accounts. Regulation 22.5(a) requires an FCM 
or DCO to obtain, from each depository with which it deposits cleared 
swaps customer funds, a letter acknowledging that such funds belong to 
the Cleared Swaps Customers \4\ of the FCM or DCO, and not the FCM, 
DCO, or any other person. Regulation 22.11 requires each FCM that 
intermediates cleared swaps for customers on or subject to the rules of 
a DCO, whether directly as a clearing member or indirectly through a 
Collecting FCM,\5\ to provide the DCO or the Collecting FCM, as 
appropriate, with information sufficient to identify each customer of 
the FCM whose swaps are cleared by the FCM. Regulation 22.11 also 
requires the FCM, at least once daily, to provide the DCO or the 
Collecting FCM, as appropriate, with information sufficient to identify 
each customer's portfolio of rights and obligations arising out of 
cleared swaps intermediated by the FCM. Regulation 22.12 requires that 
each Collecting FCM and DCO, on a daily basis, calculate, based on 
information received pursuant to regulation 22.11 and on information 
generated and used in the ordinary course of business by the Collecting 
FCM or DCO, and record certain information about the amount of 
collateral required for each Cleared Swaps Customer and the sum of 
these amounts. Regulation 22.16 requires that each FCM who has Cleared 
Swaps Customers disclose to each of such customers the governing 
provisions, as established by DCO rules or customer agreements between 
collecting and depositing FCMs, relating to use of customer collateral, 
transfer, neutralization of the risks, or liquidation of cleared swaps 
in the event of default by a Depositing FCM \6\ relating to a Cleared 
Swaps Customer Account. Regulation 22.17 requires that FCM produce a 
written notice of the reasons and the details concerning withdrawals 
from Cleared Swaps Customers Account not for the benefit of Cleared 
Swap Customers if such withdrawal will exceed 25% of the FCMs residual 
interest in such account.
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    \2\ For the definition of Cleared Swaps Customer Account, see 
Commission regulation 22.1. 17 CFR 22.1.
    \3\ Id.
    \4\ Id.
    \5\ Id.
    \6\ Id.
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    The Commission believes that the information collection obligations 
imposed by Commission regulations 22.2(g), 22.5(a), 22.11, 22.12, 
22.16, and 22.17 are essential (i) to ensuring that FCMs and DCOs 
develop and maintain adequate customer protections and procedures over 
Cleared Swap Customer funds as required by the CEA, and Commission 
regulations, and (ii) to the effective evaluation of these registrants' 
actual compliance with the CEA and Commission regulations. 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.
    With respect to the collection of information, the CFTC invites 
comments on:
     Whether the proposed collection of information is 
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 proposed collection 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.
    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.\7\
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    \7\ 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: The Commission is revising its estimate of the 
burden for this collection to reflect the current number of affected 
registrants. Accordingly, the respondent burden for this collection is 
estimated to be as follows:
    Number of Registrants: 68.
    Estimated Average Burden Hours per Registrant: 365.
    Estimated Aggregate Burden Hours: 24,820.
    Frequency of Recordkeeping: As applicable.

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

    Dated: April 18, 2017.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2017-08161 Filed 4-21-17; 8:45 am]
 BILLING CODE 6351-01-P