82 FR 22118 - Agency Information Collection Activities: Notice of Intent To Renew Collection Number 3038-0075, Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
COMMODITY FUTURES TRADING COMMISSION Federal Register Volume 82, Issue 91 (May 12, 2017)
Federal Register Volume 82, Issue 91 (May 12, 2017)
| Page Range | 22118-22119 | |
| FR Document | 2017-09686 |
[Federal Register Volume 82, Number 91 (Friday, May 12, 2017)] [Notices] [Pages 22118-22119] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-09686] [[Page 22118]] ======================================================================= ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION Agency Information Collection Activities: Notice of Intent To Renew Collection Number 3038-0075, Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy AGENCY: Commodity Futures Trading Commission. ACTION: Notice. ----------------------------------------------------------------------- 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 mandated by requirements that swap dealers (``SDs'') and major swap participants (``MSPs'') with respect to the treatment of collateral by their counterparties to margin, guarantee, or secure uncleared swaps. DATES: Comments must be submitted on or before July 11, 2017. ADDRESSES: You may submit comments, identified by ``Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy,'' and OMB Control No. 3038-0075 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: Gregory Scopino, Special Counsel, Division of Swap Dealer and Intermediary Oversight, Commodity Futures Trading Commission, (202) 418-5175, email: [email protected]. 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. 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. --------------------------------------------------------------------------- \1\ 44 U.S.C. 3501 et seq. --------------------------------------------------------------------------- Title: Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy (OMB Control No. 3038-0075). This is a request for an extension of a currently approved information collection. Abstract: On November 6, 2013, the Commission issued final rules implementing statutory provisions pursuant to Title VII of the Dodd- Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank Act'') and imposing requirements on SDs and MSPs with respect to the treatment of collateral posted by their counterparties to margin, guarantee, or secure uncleared swaps.\2\ Additionally, the final rule includes revisions to ensure that, for purposes of subchapter IV of chapter 7 of the Bankruptcy Code, securities held in a portfolio margining account that is a futures account or a Cleared Swaps Customer Account constitute ``customer property''; and owners of such accounts constitute ``customers.'' \3\ Section 4s(l) of the CEA sets forth certain requirements concerning the rights of counterparties of SDs and MSPs with respect to the segregation of money, securities, or other property used to margin, guarantee, or otherwise secure uncleared swaps. Regulation 23.701 implements part of the new statutory requirements by specifying that certain information must be provided to counterparties about the terms and conditions of segregation, including price information, to the extent that the SD or MSP has such information, and the identity of one or more independent depositories for segregated collateral. Regulation 23.704 implements the requirements of CEA Section 4s(l)(4), which dictates that, in certain circumstances, an SD or MSP must report to the counterparty, on a quarterly basis, ``that the back office procedures of the swap dealer or major swap participant relating to margin and collateral requirements are in compliance with the agreement of the counterparties.'' --------------------------------------------------------------------------- \2\ 78 FR 66621. \3\ Id. --------------------------------------------------------------------------- As discussed above, the rules establish reporting andrecordkeeping requirements that are mandated by Section 4s(l) of the CEA, which states that SDs and MSPs must notify their counterparties of the right to have their initial margin segregated and to maintain the confirmations and elections related to such notices as business records. The reporting and recordkeeping requirements are necessary to implement the objectives of Section 4s(1). For example, the information received by uncleared swap counterparties pursuant to Regulation 23.701 would alert counterparties to their statutory right, if they so choose, to have funds or property used as margin in uncleared swaps transactions with SDs and MSPs kept segregated from the property of the SD or MSP. Likewise, the information provided would further alert counterparties of the need to request such segregation if they wish to exercise this right. Simlarly, the information received by uncleared swap counterparties pursuant to Regulation 23.704 would be used to confirm that the back office procedures followed by a SD or MSP with whom they are dealing comply with the agreement of the parties. 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 [[Page 22119]] 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.\4\ --------------------------------------------------------------------------- \4\ 17 CFR 145.9. --------------------------------------------------------------------------- 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 registered SDs and MSPs. Accordingly, the respondent burden for this collection is estimated to be as follows: Number of Registrants: 102. Estimated Average Burden Hours per Registrant: 3,406. Estimated Aggregate Burden Hours: 347,412. Frequency of Reporting: As applicable. Authority: 44 U.S.C. 3501 et seq. Dated: May 9, 2017. Robert N. Sidman, Deputy Secretary of the Commission. [FR Doc. 2017-09686 Filed 5-11-17; 8:45 am] BILLING CODE 6351-01-P
![Federal Register / Vol. 82, No. 91 / Friday, May 12, 2017 / Notices 22119
• Ways to minimize the burden of BUREAU OF CONSUMER FINANCIAL or regulation, Supervision directs the
collection of information on those who PROTECTION entity to implement appropriate
are to respond, including through the corrective measures, such as
use of appropriate automated electronic, Supervisory Highlights: Spring 2017 implementing new policies, changing
mechanical, or other technological AGENCY: Bureau of Consumer Financial written communications, improving
collection techniques or other forms of Protection. training or monitoring, or otherwise
information technology; e.g., permitting ACTION: Supervisory Highlights; notice. changing conduct to ensure the illegal
electronic submission of responses. practices cease. Supervision also directs
SUMMARY: The Bureau of Consumer the entity to send consumers refunds,
All comments must be submitted in
Financial Protection (Bureau or CFPB) is pay restitution, credit borrower
English, or if not, accompanied by an
issuing its fifteenth edition of its accounts, or take other remedial actions.
English translation. Comments will be Supervisory Highlights. In this issue of Recent supervisory resolutions have
posted as received to http:// Supervisory Highlights, we report resulted in total restitution payments of
www.cftc.gov. You should submit only examination findings in the areas of approximately $6.1 million to more than
information that you wish to make mortgage servicing, student loan 16,000 consumers during the review
available publicly. If you wish the servicing, mortgage origination, and fair period. Additionally, CFPB’s recent
Commission to consider information lending. As in past editions, this report supervisory activities have either led to
that you believe is exempt from includes information about a recent or supported five recent public
disclosure under the Freedom of public enforcement action that was a enforcement actions, resulting in over
Information Act, a petition for result, at least in part, of our supervisory $39 million in consumer remediation
confidential treatment of the exempt work. The report also includes and an additional $19 million in civil
information may be submitted according information on recently released money penalties.
to the procedures established in § 145.9 examination procedures and Bureau
of the Commission’s regulations.4 guidance. Please submit any questions or
comments to CFPB_Supervision@
The Commission reserves the right, DATES: The Bureau released this edition
cfpb.gov.
but shall have no obligation, to review, of the Supervisory Highlights on its Web
pre-screen, filter, redact, refuse or site on April 26, 2017. 2. Supervisory Observations
remove any or all of your submission FOR FURTHER INFORMATION CONTACT:
Adetola Adenuga, Consumer Financial Recent supervisory observations are
from http://www.cftc.gov that it may
Protection Analyst, Office of reported in the areas of mortgage
deem to be inappropriate for
Supervision Policy, 1700 G Street NW., origination, mortgage servicing, student
publication, such as obscene language. loan servicing, and fair lending.
All submissions that have been redacted 20552, (202) 435–9373.
or removed that contain comments on SUPPLEMENTARY INFORMATION: 2.1 Mortgage Origination
the merits of the information collection 1. Introduction 2.1.1 Observations and Approach to
request will be retained in the public The Consumer Financial Protection Compliance With the Ability To Repay
comment file and will be considered as Bureau is committed to a consumer (ATR) Rule Requirements
required under the Administrative financial marketplace that is fair,
Procedure Act and other applicable transparent, and competitive, and that Prior to the mortgage crisis, some
laws, and may be accessible under the works for all consumers. The Bureau creditors offered consumers mortgages
Freedom of Information Act. supervises both bank and nonbank without considering the consumer’s
Burden Statement: The Commission institutions to help meet this goal. In ability to repay the loan, at times
is revising its estimate of the burden for this fifteenth edition of Supervisory engaging in the loose underwriting
this collection to reflect the current Highlights, the CFPB shares recent practice of failing to verify the
number of registered SDs and MSPs. supervisory observations in the areas of consumer’s debts or income. The Dodd-
Accordingly, the respondent burden for mortgage servicing, student loan Frank Wall Street Reform and Consumer
servicing, mortgage origination, and fair Protection Act (Dodd-Frank Act)
this collection is estimated to be as
lending. In particular, we describe key amended the Truth in Lending Act
follows:
new developments around spike and (TILA) to provide that no creditor may
Number of Registrants: 102. trend monitoring, service provider make a residential mortgage loan unless
Estimated Average Burden Hours per examinations, and production the creditor makes a reasonable and
Registrant: 3,406. incentives. The findings reported here good faith determination based on
Estimated Aggregate Burden Hours: reflect information obtained from verified and documented information
347,412. supervisory activities that were that, at the time the loan is
generally completed between September consummated, the consumer has a
Frequency of Reporting: As 2016 and December 2016 (unless reasonable ability to repay the loan
applicable. otherwise stated). Corrective actions according to its terms, as well as all
Authority: 44 U.S.C. 3501 et seq. regarding certain matters may remain in applicable taxes, insurance (including
process at the time of this report’s mortgage guarantee insurance), and
Dated: May 9, 2017.
publication. assessments.1 The Dodd-Frank Act also
Robert N. Sidman, CFPB supervisory reviews and
mstockstill on DSK30JT082PROD with NOTICES
amended TILA by creating a
Deputy Secretary of the Commission. examinations typically involve presumption of compliance with these
[FR Doc. 2017–09686 Filed 5–11–17; 8:45 am] assessing a supervised entity’s ability-to-repay (ATR) requirements for
BILLING CODE 6351–01–P compliance management system and creditors originating a specific category
compliance with Federal consumer
financial laws. When Supervision 1 Section 1411 of the Dodd-Frank Act, Public Law
examinations determine that a 111–203, adding section 129C(a) to TILA, codified
4 17 CFR 145.9. supervised entity has violated a statute at 15 U.S.C. 1639c(a)).
VerDate Sep<11>2014 17:41 May 11, 2017 Jkt 241001 PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 E:\FR\FM\12MYN1.SGM 12MYN1](https://thefederalregister.org/doc/82_FR_22209/page/2.svg)
Document Created: 2017-05-12 01:09:18
Document Modified: 2017-05-12 01:09:18
| 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 July 11, 2017. | |
| Contact | Gregory Scopino, Special Counsel, Division of Swap Dealer and Intermediary Oversight, Commodity Futures Trading Commission, (202) 418-5175, email: [email protected] | |
| FR Citation | 82 FR 22118 |
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