2017-08161
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 via the Government Publishing Office [www.gpo.gov]
[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
Last Updated: April 24, 2017