2018-13255
Federal Register, Volume 83 Issue 119 (Wednesday, June 20, 2018)
[Federal Register Volume 83, Number 119 (Wednesday, June 20, 2018)]
[Notices]
[Pages 28623-28625]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13255]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice To Extend
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) is announcing
an opportunity for public comment on the extension of a collection of
certain information by the agency. Under the Paperwork Reduction
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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. 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 August 20, 2018.
ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0092, by any of the following methods:
The Agency's Website, at http://comments.cftc.gov/. Follow
the instructions for submitting comments through the website.
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.
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: Christopher Hower, Special Counsel,
Division of Clearing and Risk, Commodity Futures Trading Commission,
(202) 418-6703; email: [email protected].
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq.,
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 for the
extension of the 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.
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 CEA, 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 promulgated Sec.
1.71(d)(1) relating to FCMs and Sec. 23.605(d)(1) relating to swap
dealers and major swap participants. These regulations would 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. Also, Sec. 23.607 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.
Additionally, Sec. 39.12(b)(3) 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. Sections 1.71(f) and 23.605(f)
provide that records be maintained pursuant to Commission Regulation
1.31.
As discussed further below, the additional information collection
burden arising from the proposed 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 proposed
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 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
[[Page 28625]]
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 Freedom of
Information Act.
Burden Statement: The Commission is revising its estimate of the
burden for this collection, which include 101 Swap Dealers, Major Swap
Participants, 65 Futures Commission Merchants and 16 Derivatives
Clearing Organizations. The respondent burden for this collection is
estimated to be as follows:
Estimated Number of Respondents: 182.
Estimated Average Burden Hours per Respondent: 18.1 hours.
Estimated Total Annual Burden Hours: 3296 hours.
Frequency of Collection: Daily, annually, or as needed.
There are no capital costs or operating and maintenance costs
associated with this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: June 15, 2018.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2018-13255 Filed 6-19-18; 8:45 am]
BILLING CODE 6351-01-P