2022-17840
[Federal Register Volume 87, Number 160 (Friday, August 19, 2022)]
[Notices]
[Pages 51065-51066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17840]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Revise Collection Number 3038-0088: Swap Documentation
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 revisions to the 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 revision of
an existing collection of information, and to allow 60 days for public
comment. This notice solicits comments on certain collections of
information mandated by subpart I of part 23 of the Commission's
Regulations (Swap Documentation).
DATES: Comments must be submitted on or before October 18, 2022.
ADDRESSES: You may submit comments, identified by ``Swap
Documentation,'' and Collection Number 3038-0088 by any of the
following methods:
The Agency's website, at https://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 https://www.cftc.gov.
FOR FURTHER INFORMATION CONTACT: Dina Moussa, Attorney Advisor, Market
Participants Division, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581, at (202)
418-5696 or [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
[[Page 51066]]
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 revisions
to 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 revision to an existing
collection of information.\1\
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\1\ 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, 44 U.S.C. 3512, 5 CFR
1320.5(b)(2)(i) and 1320.8(b)(3)(vi).
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Title: Swap Documentation (OMB Control No. 3038-0088).\2\ This is a
request to revise a currently approved information collection.
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\2\ The collections of information under OMB control numbers
3038-0068, 3038-0083, and 3038-0088 are now consolidated under OMB
control number 3038-0088, and OMB control numbers 3038-0068 and
3038-0083 have been withdrawn as of July 5, 2022. Concurrently with
this change, the Commission has changed the name associated with OMB
control number 3038-0088 to ``Swap Documentation''.
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Abstract: On September 11, 2012, the Commission adopted Commission
Regulations 23.500-23.505 \3\ under sections 4s(f), (g) and (i) \4\ of
the Commodity Exchange Act (``CEA''). Commission Regulations 23.500-
23.505 require, among other things, that swap dealers (``SDs'') \5\ and
major swap participants (``MSPs'') \6\ 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, SDs
and MSPs are obligated to maintain records of the policies and
procedures required by the rules.\7\
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\3\ 17 CFR 23.500-23.505.
\4\ 7 U.S.C. 6s(f), (g) & (i).
\5\ 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.
\6\ 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.
\7\ SDs and MSPs are required to maintain all records of
policies and procedures in accordance with Commission Regulations
23.203 and, by extension, 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. See 17 CFR 1.31 and 23.203.
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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 SD and MSP 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 also essential to ensuring that SDs and MSPs
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. These collections of information are mandatory.
In this particular instance, the Commission is revising its
aggregate burden for this information collection by removing the burden
hour estimate on cleared swap recordkeeping, as this subcategory was
proposed but not finalized by the Commission and its burden estimate
had been included erroneously under this information collection in
previous renewals.\8\ Additionally, in light of the increased number of
Commission-registered SDs and MSPs, the total number of respondents
(combined SDs and MSPs) is being increased to 108. The overall burden
hours for each remaining category within the information collection
have increased proportionally, to reflect the increase in the number of
respondents.
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\8\ See 77 FR 55903 (Sept. 11, 2012) (The Commission has
considered the commenters' recommendation to delete the clearing
record provisions of Sec. 23.504(b)(6)(iii) and (iv) and agrees
that there is no need to include in the trading documentation a
record of the names of the clearing members for the SD, MSP, or
counterparty. Once a swap is accepted for clearing, the identity of
a counterparty's clearing member is no longer relevant and requiring
such a record has the possibility to undermine the anonymity of
central clearing. Therefore, those provisions have been deleted from
the final rule. Similarly, Sec. 23.504(b)(6)(i) and (ii) have been
removed because those records will be captured under the SD and MSP
recordkeeping requirement, Sec. 23.201(a)(3), and the Commission
believes those records are sufficient.).
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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.\9\
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\9\ 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, for reasons 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: Based on the proposed revisions to the estimated
aggregate burden as discussed above, the respondent burden for the
collection is estimated to be as follows:
OMB Control No. 3038-0088 (Swap Documentation)
Number of Registrants: 108.
Estimated Average Burden Hours per Registrant: 7,324.5.
Estimated Aggregate Burden Hours: 791,046.
Frequency of Recordkeeping: As applicable.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: August 15, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-17840 Filed 8-18-22; 8:45 am]
BILLING CODE 6351-01-P