82 FR 34933 - Agency Information Collection Activities Under OMB Review
COMMODITY FUTURES TRADING COMMISSION Federal Register Volume 82, Issue 143 (July 27, 2017)
Federal Register Volume 82, Issue 143 (July 27, 2017)
| Page Range | 34933-34934 | |
| FR Document | 2017-15767 |
[Federal Register Volume 82, Number 143 (Thursday, July 27, 2017)] [Notices] [Pages 34933-34934] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-15767] ----------------------------------------------------------------------- COMMODITY FUTURES TRADING COMMISSION Agency Information Collection Activities Under OMB Review AGENCY: Commodity Futures Trading Commission. ACTION: Notice. ----------------------------------------------------------------------- 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 August 28, 2017. 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 either of the following methods. Please identify the comments by OMB Control No. 3038-0091.By email addressed to: [email protected]; or By mail addressed to: 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. A copy of all comments submitted to OIRA should be sent to the Commodity Futures Trading Commission (``CFTC'' or ``Commission'') by either of the following methods. The copies should refer to OMB Control No. 3038-0091. By submission through the Commission's Web site: http:// [[Page 34934]] comments.cftc.gov. Please follow the instructions for submitting comments through the Web site; By mail addressed to: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; or By hand delivery/courier to: the address listed above for submission by mail. 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], both in the CFTC Division of Swap Dealer and Intermediary Oversight. SUPPLEMENTARY INFORMATION: Supporting statements. A copy of the supporting statements for the collection of information discussed herein may be obtained by visiting http://RegInfo.gov. Comment instructions. 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 (``FOIA''), 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, 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 ICR 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 FOIA. 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. Abstract: Part 22 of the Commission's regulations under the Commodity Exchange Act (``CEA'') establishes rules for the protection of customer collateral held by futures commission merchants (``FCM'') and derivatives clearing organizations (``DCO'') to serve as margin in cleared swaps transactions. As part of this regulatory scheme, Sec. Sec. 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, Sec. 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. Section 22.2(g) requires each FCM with Cleared Swaps Customer Accounts \1\ to, among other things, compute daily and report to the Commission the amount of Cleared Swaps Customer Collateral \2\ 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. Section 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 \3\ of the FCM or DCO, and not the FCM, DCO, or any other person. Section 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,\4\ 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. Section 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. Section 22.12 requires that each Collecting FCM and DCO, on a daily basis, calculate, based on information received pursuant to Sec. 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. Section 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 \5\ relating to a Cleared Swaps Customer Account. Section 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. --------------------------------------------------------------------------- \1\ For the definition of Cleared Swaps Customer Account, see 17 CFR 22.1. \2\ Id. \3\ Id. \4\ Id. \5\ Id. --------------------------------------------------------------------------- The Commission believes that the information collection obligations imposed by Commission regulations in Sec. Sec. 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. On April 24, 2017, the Commission published in the Federal Register a notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension. See 82 FR 18900 (April 24, 2017). The Commission received no comments. 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: July 21, 2017. Christopher J. Kirkpatrick, Secretary of the Commission. [FR Doc. 2017-15767 Filed 7-26-17; 8:45 am] BILLING CODE 6351-01-P
![Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices 34933
Supporting statements. A copy of the MSPs with respect to the segregation of number of registered SDs and MSPs.
supporting statements for the collection money, securities, or other property Accordingly, the respondent burden for
of information discussed herein may be used to margin, guarantee, or otherwise this collection is estimated to be as
obtained by visiting http://RegInfo.gov. secure uncleared swaps. Section 23.701 follows:
Comment instructions. All comments of the Commission’s regulations Number of Registrants: 102.
must be submitted in English, or if not, implements part of the new statutory Estimated Average Burden Hours per
accompanied by an English translation. requirements by specifying that certain Registrant: 3406.
Comments will be posted as received to information must be provided to Estimated Aggregate Burden Hours:
http://www.cftc.gov. You should submit counterparties about the terms and 347,412.
only information that you wish to make conditions of segregation, including Frequency of Recordkeeping: As
available publicly. If you wish the price information, to the extent that the applicable.
Commission to consider information SD or MSP has such information, and Authority: 44 U.S.C. 3501 et seq.
that you believe is exempt from the identity of one or more independent Dated: July 24, 2017.
disclosure under the Freedom of depositories for segregated collateral. Christopher J. Kirkpatrick,
Information Act (‘‘FOIA’’), a petition for Section 23.704 implements the
Secretary of the Commission.
confidential treatment of the exempt requirements of CEA section 4s(l)(4),
information may be submitted according [FR Doc. 2017–15857 Filed 7–26–17; 8:45 am]
which dictates that, in certain
to the procedures established in § 145.9 circumstances, an SD or MSP must BILLING CODE 6351–01–P
of the Commission’s regulations, 17 CFR report to the counterparty, on a
145.9. The Commission reserves the quarterly basis, ‘‘that the back office
right, but shall have no obligation, to COMMODITY FUTURES TRADING
procedures of the swap dealer or major
review, pre-screen, filter, redact, refuse COMMISSION
swap participant relating to margin and
or remove any or all of your submission collateral requirements are in Agency Information Collection
from http://www.cftc.gov that it may compliance with the agreement of the Activities Under OMB Review
deem to be inappropriate for counterparties.’’
publication, such as obscene language. As discussed above, the rules AGENCY: Commodity Futures Trading
All submissions that have been redacted establish reporting and recordkeeping Commission.
or removed that contain comments on requirements that are mandated by ACTION: Notice.
the merits of the ICR will be retained in section 4s(l) of the CEA, which states
the public comment file and will be that SDs and MSPs must notify their SUMMARY: In compliance with the
considered as required under the counterparties of the right to have their Paperwork Reduction Act of 1995
Administrative Procedure Act and other initial margin segregated and to (‘‘PRA’’), this notice announces that the
applicable laws, and may be accessible maintain the confirmations and Information Collection Request (‘‘ICR’’)
under the FOIA. elections related to such notices as abstracted below has been forwarded to
Title: Protection of Collateral of business records. The reporting and the Office of Management and Budget
Counterparties to Uncleared Swaps; recordkeeping requirements are (‘‘OMB’’) for review and comment. The
Treatment of Securities in a Portfolio necessary to implement the objectives of ICR describes the nature of the
Margining Account in a Commodity section 4s(1). For example, the information collection and its expected
Broker Bankruptcy (OMB Control No. information received by uncleared swap costs and burden.
3038–0075). This is a request for an counterparties pursuant to § 23.701 of DATES: Comments must be submitted on
extension of a currently approved the Commission’s regulations would or before August 28, 2017.
information collection. alert counterparties to their statutory ADDRESSES: Comments regarding the
Abstract: On November 6, 2013, the right, if they so choose, to have funds burden estimated or any other aspect of
Commission issued final rules or property used as margin in uncleared the information collection, including
implementing statutory provisions swaps transactions with SDs and MSPs suggestions for reducing the burden,
pursuant to Title VII of the Dodd-Frank kept segregated from the property of the may be submitted directly to the Office
Wall Street Reform and Consumer SD or MSP. Likewise, the information of Information and Regulatory Affairs
Protection Act (‘‘Dodd-Frank Act’’) and provided would further alert (‘‘OIRA’’) in OMB, within 30 days of the
imposing requirements on swap dealers counterparties of the need to request notice’s publication, by either of the
(‘‘SD’’) and major swap participants such segregation if they wish to exercise following methods. Please identify the
(‘‘MSP’’) with respect to the treatment of this right. Similarly, the information comments by OMB Control No. 3038–
collateral posted by their counterparties received by uncleared swap 0091.
to margin, guarantee, or secure counterparties pursuant to § 23.704 • By email addressed to:
uncleared swaps.1 Additionally, the would be used to confirm that the back OIRAsubmissions@omb.eop.gov; or
final rule includes revisions to ensure office procedures followed by a SD or • By mail addressed to: Office of
that, for purposes of subchapter IV of MSP with whom they are dealing Information and Regulatory Affairs,
chapter 7 of the Bankruptcy Code, comply with the agreement of the Office of Management and Budget,
securities held in a portfolio margining parties. On May 12, 2017, the Attention: Desk Officer for the
account that is a futures account or a Commission published in the Federal Commodity Futures Trading
Cleared Swaps Customer Account Register a notice of the proposed Commission, 725 17th Street NW.,
constitute ‘‘customer property’’; and extension of this information collection Washington, DC 20503.
owners of such accounts constitute and provided 60 days for public A copy of all comments submitted to
mstockstill on DSK30JT082PROD with NOTICES
‘‘customers.’’ 2 Section 4s(l) of the comment on the proposed extension. OIRA should be sent to the Commodity
Commodity Exchange Act (‘‘CEA’’) sets See 82 FR 22118 (May 12, 2017). The Futures Trading Commission (‘‘CFTC’’
forth certain requirements concerning Commission received no relevant or ‘‘Commission’’) by either of the
the rights of counterparties of SDs and comments. following methods. The copies should
Burden Statement: The Commission refer to OMB Control No. 3038–0091.
1 78 FR 66621 (Nov. 6, 2013). is revising its estimate of the burden for • By submission through the
2 Id. this collection to reflect the current Commission’s Web site: http://
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![34934 Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices
comments.cftc.gov. Please follow the As part of this regulatory scheme, customer collateral, transfer,
instructions for submitting comments §§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16, neutralization of the risks, or liquidation
through the Web site; and 22.17 impose recordkeeping and of cleared swaps in the event of default
• By mail addressed to: Christopher third-party disclosure requirements on by a Depositing FCM 5 relating to a
Kirkpatrick, Secretary of the FCMs and DCOs. In addition, Cleared Swaps Customer Account.
Commission, Commodity Futures § 22.13(c)(2) indirectly requires FCMs Section 22.17 requires that FCM
Trading Commission, Three Lafayette who post excess collateral with DCOs to produce a written notice of the reasons
Centre, 1155 21st Street NW., perform certain computations regarding and the details concerning withdrawals
Washington, DC 20581; or such collateral, although it is not from Cleared Swaps Customers Account
• By hand delivery/courier to: the expected to materially affect the total not for the benefit of Cleared Swap
address listed above for submission by paperwork burden associated with Part Customers if such withdrawal will
mail. 22. exceed 25% of the FCMs residual
FOR FURTHER INFORMATION CONTACT: Section 22.2(g) requires each FCM interest in such account.
Jacob Chachkin, Special Counsel, 202– with Cleared Swaps Customer The Commission believes that the
418–5496, email: jchachkin@cftc.gov; or Accounts 1 to, among other things, information collection obligations
Joshua Beale, Special Counsel, 202– compute daily and report to the imposed by Commission regulations in
418–5446, email: jbeale@cftc.gov, both Commission the amount of Cleared §§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16,
in the CFTC Division of Swap Dealer Swaps Customer Collateral 2 on deposit and 22.17 are essential (i) to ensuring
and Intermediary Oversight. in such accounts, the amount of such that FCMs and DCOs develop and
collateral required to be on deposit in maintain adequate customer protections
SUPPLEMENTARY INFORMATION:
such accounts and the amount of the and procedures over Cleared Swap
Supporting statements. A copy of the
FCM’s residual financial interest in such Customer funds as required by the CEA,
supporting statements for the collection and Commission regulations, and (ii) to
accounts. Section 22.5(a) requires an
of information discussed herein may be the effective evaluation of these
FCM or DCO to obtain, from each
obtained by visiting http://RegInfo.gov. registrants’ actual compliance with the
depository with which it deposits
Comment instructions. All comments CEA and Commission regulations. On
cleared swaps customer funds, a letter
must be submitted in English or, if not, April 24, 2017, the Commission
acknowledging that such funds belong
accompanied by an English translation. published in the Federal Register a
to the Cleared Swaps Customers 3 of the
Comments will be posted as received to notice of the proposed extension of this
FCM or DCO, and not the FCM, DCO,
http://www.cftc.gov. You should submit information collection and provided 60
or any other person. Section 22.11
only information that you wish to make days for public comment on the
requires each FCM that intermediates
available publicly. If you wish the proposed extension. See 82 FR 18900
cleared swaps for customers on or
Commission to consider information (April 24, 2017). The Commission
subject to the rules of a DCO, whether
that you believe is exempt from received no comments.
directly as a clearing member or
disclosure under the Freedom of Burden Statement: The Commission
indirectly through a Collecting FCM,4 to
Information Act (‘‘FOIA’’), a petition for is revising its estimate of the burden for
provide the DCO or the Collecting FCM,
confidential treatment of the exempt this collection to reflect the current
as appropriate, with information
information may be submitted according number of affected registrants.
sufficient to identify each customer of
to the procedures established in § 145.9 Accordingly, the respondent burden for
the FCM whose swaps are cleared by the
of the Commission’s regulations, 17 CFR this collection is estimated to be as
FCM. Section 22.11 also requires the
145.9. The Commission reserves the follows:
FCM, at least once daily, to provide the
right, but shall have no obligation, to Number of Registrants: 68.
DCO or the Collecting FCM, as
review, pre-screen, filter, redact, refuse Estimated Average Burden Hours per
appropriate, with information sufficient
or remove any or all of your submission Registrant: 365.
to identify each customer’s portfolio of
from http://www.cftc.gov that it may Estimated Aggregate Burden Hours:
rights and obligations arising out of
deem to be inappropriate for 24,820.
cleared swaps intermediated by the Frequency of Recordkeeping: As
publication, such as obscene language.
FCM. Section 22.12 requires that each applicable.
All submissions that have been redacted
Collecting FCM and DCO, on a daily
or removed that contain comments on Authority: 44 U.S.C. 3501 et seq.
basis, calculate, based on information
the merits of the ICR will be retained in
received pursuant to § 22.11 and on Dated: July 21, 2017.
the public comment file and will be
information generated and used in the Christopher J. Kirkpatrick,
considered as required under the
ordinary course of business by the Secretary of the Commission.
Administrative Procedure Act and other
Collecting FCM or DCO, and record [FR Doc. 2017–15767 Filed 7–26–17; 8:45 am]
applicable laws, and may be accessible
certain information about the amount of
under the FOIA. BILLING CODE 6351–01–P
collateral required for each Cleared
Title: Disclosure and Retention of
Swaps Customer and the sum of these
Certain Information Relating to Cleared
amounts. Section 22.16 requires that DEPARTMENT OF DEFENSE
Swaps Customer Collateral (OMB
each FCM who has Cleared Swaps
Control No. 3038–0091). This is a
Customers disclose to each of such Office of the Secretary
request for an extension of a currently
customers the governing provisions, as
approved information collection. [Transmittal No. 16–84]
Abstract: Part 22 of the Commission’s established by DCO rules or customer
mstockstill on DSK30JT082PROD with NOTICES
regulations under the Commodity agreements between collecting and Arms Sales Notification
Exchange Act (‘‘CEA’’) establishes rules depositing FCMs, relating to use of
AGENCY: Defense Security Cooperation
for the protection of customer collateral 1 For Agency, Department of Defense.
the definition of Cleared Swaps Customer
held by futures commission merchants Account, see 17 CFR 22.1. ACTION: Arms sales notice.
(‘‘FCM’’) and derivatives clearing 2 Id.
organizations (‘‘DCO’’) to serve as 3 Id.
margin in cleared swaps transactions. 4 Id. 5 Id.
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Document Created: 2017-07-27 02:07:18
Document Modified: 2017-07-27 02:07:18
| 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 August 28, 2017. | |
| Contact | Jacob Chachkin, Special Counsel, 202- 418-5496, email: [email protected]; or Joshua Beale, Special Counsel, 202-418-5446, email: [email protected], both in the CFTC Division of Swap Dealer and Intermediary Oversight. | |
| FR Citation | 82 FR 34933 |
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