2015-11726
[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)]
[Notices]
[Pages 27930-27932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11726]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Renew Collection 3038-0092, Customer Clearing Documentation and Timing
of Acceptance for Clearing
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 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 and to allow 60 days for public comment. The
Commission adopted final rules, which prohibit
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swap dealers (``SDs'') and major swap participants (``MSPs'') from
interfering or attempting to influence the decisions of affiliated
future commission merchants (``FCMs'') with regard to the provision of
clearing services and activities and prohibit FCMs from permitting them
to do so. The Commission also adopted rules to prohibit SDs and MSPs
from adopting any process or taking any action that results in any
unreasonable restraint on trade or imposes any material anticompetitive
burden on trading or clearing, unless necessary or appropriate to
achieve the purposes of the Commodity Exchange Act. The Commission
adopted further rules requiring that derivatives clearing organization
(``DCO'') rules provide for the non-discriminatory clearing of swaps
executed bilaterally or through an unaffiliated designated contract
market or swap execution facility. This notice solicits comments on the
obligation to maintain records related to clearing documentation
between the customer and the customer's clearing member.
DATES: Comments must be submitted on or before July 14, 2015.
ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0092, 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: Christopher Hower, Special Counsel,
Division of Clearing and Risk, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581;
(202) 418-6703; email: [email protected].
SUPPLEMENTARY INFORMATION: Under the PRA, 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 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.
Title: Customer Clearing Documentation and Timing of Acceptance for
Clearing (OMB Control No. 3038-0092). This is a request for extension
of a currently approved information collection.
Abstract: Section 4d(c) of the Commodity Exchange Act (``CEA'' or
``Act''), as amended by the Dodd-Frank Act, directs the Commission to
require futures commission merchants to implement conflict of interest
procedures that address such issues the Commission determines to be
appropriate. Similarly, section 4s(j)(5), as added by the Dodd-Frank
Act, requires swap dealers and major swap participants to implement
conflict of interest procedures that address such issues the Commission
determines to be appropriate. Section 4s(j)(5) also requires swap
dealers and major swap participants to ensure that any persons
providing clearing activities or making determinations as to accepting
clearing customers are separated by appropriate informational
partitions from persons whose involvement in pricing, trading, or
clearing activities might bias their judgment or contravene the core
principle of open access. Section 4s(j)(6) of the CEA prohibits a swap
dealer and major swap participant from adopting any process or taking
any action that results in any unreasonable restraint on trade or
imposes any material anticompetitive burden on trading or clearing,
unless necessary or appropriate to achieve the purposes of the Act.
Section 2(h)(1)(B)(ii) of the CEA requires that derivatives clearing
organization rules provide for the non-discriminatory clearing of swaps
executed bilaterally or through an unaffiliated designated contract
market or swap execution facility.
Pursuant to these provisions, the Commission adopted Sec.
1.71(d)(1) relating to FCMs and Sec. 23.605(d)(1) relating to swap
dealers and major swap participants. These regulations prohibit swap
dealers and major swap participants from interfering or attempting to
influence the decisions of affiliated FCMs with regard to the provision
of clearing services and activities and would prohibit FCMs from
permitting them to do so. The Commission also adopted Sec. 23.607 to
prohibits a swap dealer and major swap participant from adopting any
process or taking any action that results in any unreasonable restraint
on trade or imposes any material anticompetitive burden on trading or
clearing, unless necessary or appropriate to achieve the purposes of
the Act. The Commission adopted Sec. 39.12(b)(2) to require that
derivatives clearing organization rules provide for the non-
discriminatory clearing of swaps executed bilaterally or through an
unaffiliated designated contract market or swap execution facility.
As discussed further below, the additional information collection
burden arising from the regulations primarily is restricted to the
costs associated with the affected registrants' obligation to maintain
records related to clearing documentation between the customer and the
customer's clearing member.
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, FCMs, and
DCOs.
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.
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
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confidential treatment of the exempt information may be submitted
according to the procedures established in Sec. 145.9 of the
Commission's regulations.\1\
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\1\ 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 respondent burden for this collection is
estimated to average between 16 hours for FCMs and SDs and MSPs, and 40
hours for DCOs per response. 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. The total annual cost burden per respondent is estimated to be
$736 for FCMs, SDs, and MSPs and $1,840 for DCOs. The Commission based
its calculation on an hourly wage rate of $46 for a financial manager
to maintain the data.
Respondents/Affected Entities: Swap dealers, Major Swap
Participants, Futures Commission Merchants, and Derivatives Clearing
Organizations.
Estimated number of respondents: 239 Swap Dealers, Major Swap
Participants and Futures Commission Merchants, and 14 Derivatives
Clearing Organizations.
Estimated total annual burden on respondents: 3,824 for FCMs, SDs,
and MSPs, and 560 hours for DCOs.
Frequency of collection: As needed.
Authority: 44 U.S.C. 3501 et seq.
Dated: May 11, 2015.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2015-11726 Filed 5-14-15; 8:45 am]
BILLING CODE 6351-01-P