2023-20132
[Federal Register Volume 88, Number 179 (Monday, September 18, 2023)]
[Notices]
[Pages 63940-63941]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-20132]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities Under OMB Review
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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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
Information and Regulatory Affairs (``OIRA''), of 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 October 18, 2023.
ADDRESSES: Written comments and recommendations for the proposed
information collection should be submitted within 30 days of this
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by
selecting ``Currently under 30-day Review--Open for Public Comments''
or by using the website's search function. Comments can be entered
electronically by clicking on the ``comment'' button next to the
information collection on the ``OIRA Information Collections Under
Review'' page, or the ``View ICR--Agency
[[Page 63941]]
Submission'' page. A copy of the supporting statement for the
collection of information discussed herein may be obtained by visiting
https://www.reginfo.gov/public/do/PRAMain.
In addition to the submission of comments to https://Reginfo.gov as
indicated above, you may also submit a copy of all comments submitted
to OIRA to the Commodity Futures Trading Commission (the ``Commission''
or ``CFTC'') through any of the following methods:
Online: The CFTC Comments Portal, on the agency's website,
is available at https://comments.cftc.gov. Select the ``Submit
Comments'' link for this rulemaking and follow the instructions on the
Public Comment Form.
Mail: Christopher Kirkpatrick, Secretary of the
Commission, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW, Washington, DC 20581.
Hand Delivery/Courier: Follow the same instructions as for
Mail above.
Please submit your comments using only one of these methods. To
avoid possible delays with mail or in-person deliveries, submissions
through the CFTC Comments Portal are encouraged.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
https://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.\1\ 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 https://comments.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 FOIA.
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\1\ 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: Dina Moussa, Special Counsel, 202-418-
5696, [email protected], Market Participants Division, Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street NW,
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Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
Title: Swap Dealer and Major Swap Participant Conflicts of Interest
and Business Conduct Standards with Counterparties (OMB Control No.
3038-0079). This is a request for an extension of a currently approved
information collection.
Abstract: Section 731 of Title VII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act \2\ amended the Commodity Exchange
Act (``CEA'') to add sections 4s(h) and 4s(j)(5),\3\ which provide the
Commission with both mandatory and discretionary rulemaking authority
to impose business conduct requirements on swap dealers (``SDs'') and
major swap participants (``MSPs'') in their dealings with
counterparties, including ``Special Entities,'' \4\ and require that
each SD and MSP implement conflicts of interest systems and procedures.
Congress granted the Commission broad discretionary authority to
promulgate business conduct requirements, as appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the CEA.\5\
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\2\ Dodd-Frank Act, Public Law 111-203, 124 Stat. 1376 (2010).
\3\ 7 U.S.C. 6s(h) and 6s(j)(5).
\4\ Such entities are generally defined to include Federal
agencies, States and political subdivisions, employee benefit plans
as defined under the Employee Retirement Income Security Act of 1974
(``ERISA''), governmental plans as defined under ERISA, and
endowments.
\5\ See section 4s(h)(3)(D) of the CEA, 7 U.S.C. 6s(h)(3)(D)
(Business conduct requirements adopted by the Commission shall
establish such other standards and requirements as the Commission
may determine are appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes
of the CEA); see also sections 4s(h)(1)(D), 4s(h)(5)(B), and
4s(h)(6) of the CEA; 7 U.S.C. 6s(h)(1)(D), 6s(h)(5)(B), and
6s(h)(6).
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Accordingly, the Commission has adopted subpart H of part 23 of its
regulations (``EBCS Rules'') \6\ and Sec. 23.605,\7\ requiring SDs and
MSPs to follow specified procedures and to provide specified
disclosures in their dealings with counterparties, to adopt and
implement conflicts of interest procedures and disclosures, and to
maintain specified records related to those requirements.
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\6\ 17 CFR part 23, subpart H. Subpart H of part 23 (titled
Business Conduct Standards for Swap Dealers and Major Swap
Participants Dealing with Counterparties, Including Special
Entities) includes the following provisions: Sec. 23.400 (Scope);
Sec. 23.401 (Definitions); Sec. 23.402 (General Provisions); Sec.
23.410 (Prohibition on fraud, manipulation and other abusive
practices); Sec. 23.430 (Verification of counterparty eligibility);
Sec. 23.431 (Disclosures of material information); Sec. 23.432
(Clearing disclosures); Sec. 23.433 (Communications--fair dealing);
Sec. 23.434 (Recommendations to counterparties--institutional
suitability; Sec. 23.440 (Requirements for swap dealers acting as
advisors to Special Entities); Sec. 23.450 (Requirements for swap
dealers and major swap participants acting counterparties to Special
Entities); and Sec. 23.451 (Political contributions by certain swap
dealers).
\7\ 17 CFR 23.605. Commission regulation 23.605 is titled
Conflicts of interest policies and procedures.
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The recordkeeping and third-party disclosure obligations imposed by
the regulations are essential to ensuring that SDs and MSPs develop and
maintain procedures and disclosures required by the CEA and Commission
regulations.\8\
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\8\ Reporting under Sec. 23.451 (Political contributions by
certain swap dealers) is optional and it is unknown how many
registrants, if any, will engage in such reporting and how much
burden, if any, will be incurred. Nevertheless, the Commission is
providing an estimate of the regulation's burden for purposes of the
PRA below.
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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.\9\ On July 6, 2023, the Commission
published in the Federal Register notice of the proposed extension of
this information collection and provided 60 days for public comment on
the proposed extension, 88 FR 43085 (``60-Day Notice''). The Commission
received no relevant comments on the 60-Day Notice.
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\9\ 44 U.S.C. 3512; 5 CFR 1320.5(b)(2)(i) and 1320.8(b)(3)(vi).
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Burden Statement: The current respondent burden for this collection
is estimated to be as follows:
Estimated Number of Respondents: 105.\10\
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\10\ The Commission, at the 60-Day Notice stage, estimated that
106 respondents were subject to the information collection
requirements at issue, 88 FR 43085 (Jul. 6, 2023), but has
subsequently revised its estimate to 105 respondents, based on the
current number of registered SDs.
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Estimated Average Burden Hours per Respondent: 2,352.9.
Estimated Total Annual Burden Hours: 247,059.\11\
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\11\ The estimated total annual burden hours, at 247,059 hours,
is revised from 249,412 hours reported in the 60-Day Notice, based
on the current number of registered SDs (105 instead of 106).
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Frequency of Collection: Ongoing.
There are no capital costs or operating and maintenance costs
associated with this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: September 13, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-20132 Filed 9-15-23; 8:45 am]
BILLING CODE 6351-01-P