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)

Page Range		18900-18901
FR Document		2017-08161

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 Issue 77 (Monday, April 24, 2017)

[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

18900 Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Notices

rule enforcement program during fiscal II. Schedule of Fees registered futures associations and
years 2013 through 2015 was $293,312. DCMs regulated by the Commission are
The fee to be paid by the NFA for the Fees for the Commission’s review of as follows:
current fiscal year is $293,312. the rule enforcement programs at the

2016 Fee lesser
3-Year average 3-Year percent of actual or
actual cost of volume calculated fee

CBOE Futures ..................................................................................................................... $131,259 1.22 $73,074
Chicago Board of Trade ...................................................................................................... 79,476 30.08 79,476
Chicago Mercantile Exchange ............................................................................................. 385,923 44.03 385,923
ELX Futures ......................................................................................................................... 44,756 0.00 22,378
ICE Futures U.S .................................................................................................................. 182,421 10.21 153,429
Kansas City Board of Trade ................................................................................................ 186 0.06 186
Minneapolis Grain Exchange ............................................................................................... 138,868 0.05 69,741
NADEX North American ...................................................................................................... 34,077 0.08 17,505
New York Mercantile Exchange .......................................................................................... 159,897 13.84 159,897
NYSE LIFFE US .................................................................................................................. 8,267 0.13 4,909
One Chicago ........................................................................................................................ 53,362 0.2795 28,384

Subtotal ......................................................................................................................... 1,218,491 100 994,902
National Futures Association ............................................................................................... 293,312 ........................ 293,312

Total .............................................................................................................................. 1,511,804 ........................ 1,288,214

III. Payment Method to publish notice in the Federal Register English translation. Comments will be
The Debt Collection Improvement Act concerning each proposed collection of posted as received to http://
(DCIA) requires deposits of fees owed to information, including each proposed www.cftc.gov.
the government by electronic transfer of extension of an existing collection of
FOR FURTHER INFORMATION CONTACT:
funds. See 31 U.S.C. 3720. For information, and to allow 60 days for
public comment. This notice solicits Jacob Chachkin, Special Counsel, 202–
information about electronic payments, 418–5496, email: jchachkin@cftc.gov; or
please contact Jennifer Fleming at (202) comments on the collections of
information provided for by the Joshua Beale, Special Counsel, 202–
418–5034 or jfleming@cftc.gov, or see 418–5446, email: jbeale@cftc.gov,
the CFTC Web site at http:// Commission’s regulations under the
Commodity Exchange Act (‘‘CEA’’) Division of Swap Dealer and
www.cftc.gov, specifically, http:// Intermediary Oversight, Commodity
www.cftc.gov/cftc/ relating to the protection of customer
collateral held by futures commission Futures Trading Commission.
cftcelectronicpayments.htm.
merchants (‘‘FCM’’) and derivatives SUPPLEMENTARY INFORMATION: Under the
(Authority: 7 U.S.C. 16a) clearing organizations (‘‘DCO’’) to serve PRA,1 Federal agencies must obtain
Issued in Washington, DC, on April 19, as margin in cleared swaps transactions. approval from the Office of Management
2017, by the Commission. DATES: Comments must be submitted on and Budget (‘‘OMB’’) for each collection
Robert N. Sidman, or before June 23, 2017. of information they conduct or sponsor.
Deputy Secretary of the Commission. ADDRESSES: You may submit comments, ‘‘Collection of Information’’ is defined
[FR Doc. 2017–08222 Filed 4–21–17; 8:45 am] identified by ‘‘Disclosure and Retention in 44 U.S.C. 3502(3) and 5 CFR 1320.3
BILLING CODE 6351–01–P of Certain Information Relating to and includes agency requests or
Cleared Swaps Customer Collateral,’’ requirements that members of the public
and Collection Number 3038–0091 by submit reports, keep records, or provide
COMMODITY FUTURES TRADING any of the following methods: information to a third party. Section
COMMISSION • The Agency’s Web site, at http:// 3506(c)(2)(A) of the PRA, 44 U.S.C.
comments.cftc.gov/. Follow the 3506(c)(2)(A), requires Federal agencies
Agency Information Collection to provide a 60-day notice in the
instructions for submitting comments
Activities: Notice of Intent To Renew Federal Register concerning each
through the Web site.
Collection Number 3038–0091, • Mail: Christopher Kirkpatrick, proposed collection of information,
Disclosure and Retention of Certain Secretary of the Commission, including each proposed extension of an
Information Relating to Cleared Swaps Commodity Futures Trading existing collection of information,
Customer Collateral Commission, Three Lafayette Centre, before submitting the collection to OMB
1155 21st Street NW., Washington, DC for approval. To comply with this
AGENCY: Commodity Futures Trading
20581. requirement, the CFTC is publishing
Commission.
• Hand Delivery/Courier: Same as notice of the proposed collection of
ACTION: Notice.
Mail above. information listed below.
SUMMARY: The Commodity Futures • Federal eRulemaking Portal: http:// Title: Disclosure and Retention of
jstallworth on DSK7TPTVN1PROD with NOTICES

Trading Commission (‘‘CFTC’’ or www.regulations.gov/. Follow the Certain Information Relating to Cleared
‘‘Commission’’) is announcing an instructions for submitting comments Swaps Customer Collateral (OMB
opportunity for public comment on the through the Portal. Control No. 3038–0091). This is a
proposed renewal of a collection of Please submit your comments using request for an extension of a currently
certain information by the agency. only one method. approved information collection.
Under the Paperwork Reduction Act All comments must be submitted in
(‘‘PRA’’), Federal agencies are required English, or if not, accompanied by an 1 44 U.S.C. 3501 et seq.

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Federal Register / Vol. 82, No. 77 / Monday, April 24, 2017 / Notices 18901

Abstract: Part 22 of the Commission’s amounts. Regulation 22.16 requires that Freedom of Information Act, a petition
regulations under the CEA establish each FCM who has Cleared Swaps for confidential treatment of the exempt
rules for the protection of customer Customers disclose to each of such information may be submitted according
collateral held by FCMs and DCOs to customers the governing provisions, as to the procedures established in § 145.9
serve as margin in cleared swaps established by DCO rules or customer of the Commission’s regulations.7
transactions. As part of this regulatory agreements between collecting and The Commission reserves the right,
scheme, regulations 22.2(g), 22.5(a), depositing FCMs, relating to use of but shall have no obligation, to review,
22.11, 22.12, 22.16, and 22.17 impose customer collateral, transfer, pre-screen, filter, redact, refuse or
recordkeeping and third-party neutralization of the risks, or liquidation remove any or all of your submission
disclosure requirements on FCMs and of cleared swaps in the event of default from http://www.cftc.gov that it may
DCOs. In addition, regulation 22.13(c)(2) by a Depositing FCM 6 relating to a deem to be inappropriate for
indirectly requires FCMs who post Cleared Swaps Customer Account. publication, such as obscene language.
excess collateral with DCOs to perform Regulation 22.17 requires that FCM All submissions that have been redacted
certain computations regarding such produce a written notice of the reasons or removed that contain comments on
collateral, although it is not expected to and the details concerning withdrawals the merits of the information collection
materially affect the total paperwork from Cleared Swaps Customers Account request will be retained in the public
burden associated with part 22. not for the benefit of Cleared Swap comment file and will be considered as
Regulation 22.2(g) requires each FCM Customers if such withdrawal will required under the Administrative
with Cleared Swaps Customer exceed 25% of the FCMs residual Procedure Act and other applicable
Accounts 2 to, among other things, interest in such account. laws, and may be accessible under the
compute daily and report to the The Commission believes that the Freedom of Information Act.
Commission the amount of Cleared information collection obligations Burden Statement: The Commission
Swaps Customer Collateral 3 on deposit imposed by Commission regulations is revising its estimate of the burden for
in such accounts, the amount of such 22.2(g), 22.5(a), 22.11, 22.12, 22.16, and this collection to reflect the current
collateral required to be on deposit in 22.17 are essential (i) to ensuring that number of affected registrants.
such accounts and the amount of the FCMs and DCOs develop and maintain Accordingly, the respondent burden for
FCM’s residual financial interest in such adequate customer protections and this collection is estimated to be as
accounts. Regulation 22.5(a) requires an procedures over Cleared Swap Customer follows:
FCM or DCO to obtain, from each funds as required by the CEA, and Number of Registrants: 68.
depository with which it deposits Commission regulations, and (ii) to the Estimated Average Burden Hours per
cleared swaps customer funds, a letter effective evaluation of these registrants’ Registrant: 365.
acknowledging that such funds belong actual compliance with the CEA and Estimated Aggregate Burden Hours:
to the Cleared Swaps Customers 4 of the Commission regulations. An agency 24,820.
FCM or DCO, and not the FCM, DCO, may not conduct or sponsor, and a Frequency of Recordkeeping: As
or any other person. Regulation 22.11 person is not required to respond to, a applicable.
requires each FCM that intermediates collection of information unless it
(Authority: 44 U.S.C. 3501 et seq.)
cleared swaps for customers on or displays a currently valid OMB control
subject to the rules of a DCO, whether number. Dated: April 18, 2017.
directly as a clearing member or With respect to the collection of Robert N. Sidman,
indirectly through a Collecting FCM,5 to information, the CFTC invites Deputy Secretary of the Commission.
provide the DCO or the Collecting FCM, comments on: [FR Doc. 2017–08161 Filed 4–21–17; 8:45 am]
as appropriate, with information • Whether the proposed collection of BILLING CODE 6351–01–P
sufficient to identify each customer of information is necessary for the proper
the FCM whose swaps are cleared by the performance of the functions of the
FCM. Regulation 22.11 also requires the Commission, including whether the
information will have a practical use; DEPARTMENT OF DEFENSE
FCM, at least once daily, to provide the
• The accuracy of the Commission’s Department of the Navy
DCO or the Collecting FCM, as
estimate of the burden of the proposed
appropriate, with information sufficient
collection of information, including the Notice of Intent To Grant Exclusive
to identify each customer’s portfolio of
validity of the methodology and Patent License; Per Vivo Labs, Inc.
rights and obligations arising out of
assumptions used;
cleared swaps intermediated by the • Ways to enhance the quality, AGENCY: Department of the Navy, DoD.
FCM. Regulation 22.12 requires that usefulness, and clarity of the ACTION: Notice.
each Collecting FCM and DCO, on a information to be collected; and
daily basis, calculate, based on • Ways to minimize the burden of SUMMARY: The Department of the Navy
information received pursuant to collection of information on those who hereby gives notice of its intent to grant
regulation 22.11 and on information are to respond, including through the to Per Vivo Labs, Inc., a revocable,
generated and used in the ordinary use of appropriate automated electronic, nonassignable, exclusive license to
course of business by the Collecting mechanical, or other technological practice in the field of use of explosive
FCM or DCO, and record certain collection techniques or other forms of ordnance detection and disposal in the
information about the amount of information technology; e.g., permitting United States, the Government-owned
collateral required for each Cleared invention described in U.S. Patent
jstallworth on DSK7TPTVN1PROD with NOTICES

electronic submission of responses.
Swaps Customer and the sum of these You should submit only information Application No. 14/978,040 entitled
that you wish to make available ‘‘Mixed Odor Delivery Device (MODD)’’,
2 For the definition of Cleared Swaps Customer

Account, see Commission regulation 22.1. 17 CFR
publicly. If you wish the Commission to Navy Case No. 103,340 and any
22.1. consider information that you believe is continuations, divisionals or re-issues
3 Id. exempt from disclosure under the thereof.
4 Id.
5 Id. 6 Id. 7 17 CFR 145.9.

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Document Created: 2017-04-22 00:11:23
Document Modified: 2017-04-22 00:11:23

Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
Action		Notice.
Dates		Comments must be submitted on or before June 23, 2017.
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.
FR Citation		82 FR 18900