2019-08809
Federal Register, Volume 84 Issue 84 (Wednesday, May 1, 2019)
[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18521-18522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08809]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Renew Collection Numbers 3038-0068 and 3038-0083: Confirmation,
Portfolio Reconciliation, Portfolio Compression, and Swap Trading
Relationship Documentation Requirements for Swap Dealers and Major Swap
Participants
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 two collections 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 mandated by Commission regulations (Confirmation, Portfolio
Reconciliation, Portfolio Compression, and Swap Trading Relationship
Documentation Requirements for Swap Dealers and Major Swap
Participants).
DATES: Comments must be submitted on or before July 1, 2019.
ADDRESSES: You may submit comments, identified by ``Confirmation,
Portfolio Reconciliation, Portfolio Compression, and Swap Trading
Relationship Documentation Requirements for Swap Dealers and Major Swap
Participants,'' and Collection Numbers 3038-0068 and 3038-0083, 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: Gregory Scopino, Special Counsel,
Division of Swap Dealer and Intermediary Oversight, Commodity Futures
Trading Commission, (202) 418-5175; 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
[[Page 18522]]
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 collections of information--treated as a
consolidated collection--listed below.
Title: Confirmation, Portfolio Reconciliation, Portfolio
Compression, and Swap Trading Relationship Documentation Requirements
for Swap Dealers and Major Swap Participants (OMB Control Nos. 3038-
0068 and 3038-0083).\1\ This is a request for an extension of currently
approved information collections.
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\1\ Historically, PRA Collections 3038-0068, 3038-0083, and
3038-0088, which impose interrelated requirements, were renewed as a
consolidated collection. See 81 FR 6241 (Feb. 5, 2016). However, on
April 1, 2019, the CFTC published an interim final rule (IFR), which
allows uncleared swaps to retain its legacy status when transferred
in connection with a no-deal Brexit. See 84 FR 12233. This IFR
directly affects the calculation of burdens in PRA Collection 3038-
0088. Accordingly, the proposed renewal now treats collections 3038-
0068 and 3038-0083 as a consolidated collection, with collection
3038-0088 being considered separately.
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Abstract: On September 11, 2012 the Commission adopted Commission
regulations 23.500--23.505 (Confirmation, Portfolio Reconciliation,
Portfolio Compression, and Swap Trading Relationship Documentation
Requirements for Swap Dealers and Major Swap Participants) \2\ under
sections 4s(f), (g) and (i) \3\ of the Commodity Exchange Act
(``CEA''). Commission regulations 23.500--23.505 require, among other
things, that swap dealers (``SDs'') \4\ and major swap participants
(``MSPs'') \5\ develop and retain written swap trading relationship
documentation. The regulations also establish requirements for SDs and
MSPs regarding swap confirmation, portfolio reconciliation, and
portfolio compression. Under the regulations, swap dealers and major
swap participants are obligated to maintain records of the policies and
procedures required by the rules.\6\ Confirmation, portfolio
reconciliation, and portfolio compression are important post-trade
processing mechanisms for reducing risk and improving operational
efficiency. The information collection obligations imposed by the
regulations are necessary to ensure that each swap dealer and major
swap participant maintains the required records of their business
activities and an audit trail sufficient to conduct comprehensive and
accurate trade reconstruction. The information collections contained in
the regulations are essential to ensuring that swap dealers and major
swap participants document their swaps, reconcile their swap portfolios
to resolve discrepancies and disputes, and wholly or partially
terminate some or all of their outstanding swaps through regular
portfolio compression exercises. The collections of information are
mandatory. 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.
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\2\ 17 CFR 23.500-23.505.
\3\ 7 U.S.C. 6s(f), (g) & (i).
\4\ For the definition of SD, see Section 1a(49) of the CEA and
Commission regulation 1.3, 7 U.S.C. 1a(49) and 17 CFR 1.3.
\5\ For the definitions of MSP, see Section 1a(33) of the CEA
and Commission regulation 1.3, 7 U.S.C. 1a(33) and 17 CFR 1.3.
\6\ SDs and MSPs are required to maintain all records of
policies and procedures in accordance with Commission regulation
1.31, including policies, procedures and models used for eligible
master netting agreements and custody agreements that prohibit
custodian of margin from re-hypothecating, repledging, reusing, or
otherwise transferring the funds held by the custodian.
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With respect to the collections of information, the CFTC invites
comments on:
Whether the proposed collections of information are
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 burdens
of the proposed collections 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 burdens 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
burdens for the collections to reflect the current number of
respondents and estimated burden hours. The respondent burdens for the
collections are estimated to be as follows:
OMB Control No. 3038-0068 (Confirmation, Portfolio
Reconciliation, and Portfolio Compression Requirements for Swap Dealers
and Major Swap Participants)
Number of Registrants: 101.
Estimated Average Burden Hours per Registrant: 1,274.5.
Estimated Aggregate Burden Hours: 128,724.5.
Frequency of Recordkeeping: As applicable.
OMB Control No. 3038-0083 (Orderly Liquidation Termination
Provision in Swap Trading Relationship Documentation for Swap Dealers
and Major Swap Participants)
Number of Registrants: 101.
Estimated Average Burden Hours per Registrant: 270.
Estimated Aggregate Burden Hours: 27,270.
Frequency of Recordkeeping: As applicable.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: April 26, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-08809 Filed 4-30-19; 8:45 am]
BILLING CODE 6351-01-P