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2017-08097

  • Federal Register, Volume 82 Issue 76 (Friday, April 21, 2017)

    [Federal Register Volume 82, Number 76 (Friday, April 21, 2017)]

    [Notices]

    [Pages 18744-18746]

    From the Federal Register Online via the Government Publishing Office [www.gpo.gov]

    [FR Doc No: 2017-08097]

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    COMMODITY FUTURES TRADING COMMISSION

    Agency Information Collection Activities: Notice of Intent To

    Renew Collection 3038-0070, Real-Time Public Reporting and Block Trade

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.

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    SUMMARY: The Commodity Futures Trading Commission (Commission) is

    announcing an opportunity for public comment on the renewal of 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

    and to allow 60 days for public comment. This notice solicits comments

    in connection with part 43 of the Commission's regulations, which

    implements a framework for the real-time public reporting of swap

    transaction and pricing data for all swap transactions.

    DATES: Comments must be submitted on or before June 20, 2017.

    ADDRESSES: You may submit comments, identified by ``Renewal of

    Collection Pertaining to Real-Time Public Reporting and Block Trade''

    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.

    FOR FURTHER INFORMATION CONTACT: John W. Dunfee, Assistant General

    Counsel, Office of General Counsel, Commodity Futures Trading

    Commission, (202) 418-5396; email: jdunfee@cftc.gov, and refer to OMB

    Control No.3038-0070.

    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 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 Commission is publishing notice of the existing collections of

    information listed below.

    Title: Real-Time Public Reporting and Block Trade (OMB Control No.

    3038-0070). This is a request for extension of currently approved

    information collections.

    Abstract: Title VII of the Dodd-Frank Wall Street Reform and

    Consumer Protection Act (Dodd-Frank Act) added to the Commodity

    Exchange Act (CEA) new section 2(a)(13), which establishes standards

    and requirements related to real-time reporting and the public

    availability of swap transaction and pricing data. Section 2(a)(13) and

    part 43 of the Commission's Regulations require reporting parties to

    publish real-time swap transactions and pricing data to the general

    public. Without the frequency of reporting set forth in part 43, the

    Commission would not be able to adequately assess the swap markets and,

    more importantly, would fail to achieve the frequency of reporting and

    promotion of increased price discovery in the swaps market which are

    mandated by the Dodd-Frank Act.

    With respect to these information collections, the Commission

    invites comments on:

    Whether the 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 burden of

    the 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 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

    [[Page 18745]]

    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 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: Part 43 of the Commission's regulations results

    in three information collection requirements within the meaning of the

    PRA.\2\ The first collection of information requirement under part 43

    imposes a reporting requirement on registered swap execution facilities

    (``SEFs'') or designated contract markets (``DCMs'') when a swap is

    executed on a trading facility or on the parties to a swap transaction

    when the swap is executed bilaterally. The second collection of

    information requirement under part 43 of the Commission's regulations

    creates a public dissemination requirement on registered swap data

    repositories (``SDRs''). The third collection of information

    requirement imposes a recordkeeping requirement for SEFs, DCMs, SDRs

    and any reporting party (as such term is defined in part 43 of the

    Commission's regulations).

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    \2\ See 77 FR 1182, 1229 (Jan. 9, 2012); 78 FR 32866, 32913 (May

    31, 2013).

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    The Commission notes that rather than the initial estimate of 40

    SEFs, there currently are 25 SEFs either registered with the Commission

    or with registrations pending.\3\ The Commission notes that rather than

    the initial estimate of 18 DCMs, there currently are 15 DCMs registered

    with the Commission.\4\ The Commission notes that rather than the

    initial estimate of 15 SDRs, there currently are 4 SDRs registered with

    the Commission.\5\ Based on the experience gained by the Commission

    with regard to SDRs, the Commission estimates that rather than the

    initial estimate of 750 reporting parties who are not swap dealers

    (``SDs'') or major swap participants (``MSPs''), and who contract with

    third parties to satisfy their reporting obligations, there are 496

    such reporting parties.\6\ The Commission estimates that rather than

    the initial estimate of 250 reporting parties who are not swap dealers

    (``SDs'') or major swap participants (``MSPs''), and who satisfy their

    reporting obligations themselves, there are 207 such reporting

    parties.\7\ The burden hours for each entity category based upon these

    new estimates are noted in the applicable table below.

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    \3\ See 77 FR at 1229.

    \4\ Id.

    \5\ See 77 FR at 1230.

    \6\ Id.

    \7\ Id.

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    Recurring Annual Burden Hours for SEFs

    Respondents/Affected Entities: SEFs.

    Estimated number of respondents: 25.

    Estimated total annual burden on respondents: 52,000 hours.\8\

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    \8\ 2,080 average recurring burden hours per respondent SEF x 25

    registered SEFs = 52,000 total burden hours for all registered SEFs.

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    Recurring Annual Burden Hours for DCMs

    Respondents/Affected Entities: DCMs.

    Estimated number of respondents: 15.

    Estimated total annual burden on respondents: 31,200 hours.\9\

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    \9\ 2,080 average recurring burden hours per respondent DCM x 15

    registered DCMs = 31,200 total burden hours for all registered DCMs.

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    Recurring Annual Burden Hours for SDRs

    Respondents/Affected Entities: SDRs.

    Estimated number of respondents: 4.

    Estimated total annual burden on respondents: 27,600 hours.\10\

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    \10\ 6,900 average recurring burden hours per respondent SDR x 4

    registered SDRs = 27,600 total burden hours for all registered SDRs.

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    Recurring Annual Burden Hours for Non SD/MSPs Using Third Party

    Respondents/Affected Entities: Non SD/MSPs Using Third Party.

    Estimated number of respondents: 496.

    Estimated total annual burden on respondents: 10,912 hours.\11\

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    \11\ 22 average recurring burden hours per respondent x 496

    respondents = 10,912 total burden hours for all respondents.

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    Recurring Annual Burden Hours for Non SD/MSPs Reporting Themselves

    Respondents/Affected Entities: Non SD/MSPs Reporting Themselves.

    Estimated number of respondents: 207.

    Estimated total annual burden on respondents: 139,932 hours.\12\

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    \12\ 676 average recurring burden hours per respondent x 207

    respondents = 139,932 total burden hours for all respondents.

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    In addition to the above burden hours for compliance with part 43

    obligations generally, the Commission determined that certain market

    participants would incur burden hours associated with the masking of

    the geographic detail of the underlying assets to a swap in the other

    commodity asset class, and with the election to have a swap transaction

    treated as a block trade or large notional off-facility swap.\13\ The

    Commission initially estimated that respondent SDRs would incur an

    aggregate of 833 annual burden hours in connection with the masking of

    geographic detail of the underlying assets to a swap in the other

    commodity asset class.\14\ Based on the Commission's observation of

    registered SDRs' operations and compliance with part 43's requirements,

    the Commission is increasing this estimate and now estimates that SDRs

    will incur an aggregate of 3,307 annual burden hours in connection with

    the masking of geographic detail of the underlying assets to a swap in

    the other commodity asset class.\15\

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    \13\ See 78 FR 32866, 32913.

    \14\ See 78 FR 32866, 32915 (50,000 other commodity swaps with

    masked locations x 0.0167 hours (one minute) of burden per response

    = 833 total burden hours).

    \15\ 198,022 other commodity swaps with masked locations x

    0.0167 hours (one minute) of burden per response = 3,307 total

    annual burden hours.

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    The Commission initially estimated that market participants would

    incur an aggregate of 2,167 annual burden hours in connection with the

    election to have a swap transaction treated as a block trade.\16\ Based

    on the Commission's observation of market participants' compliance with

    part 43's requirements, the Commission is increasing this estimate and

    now estimates that market participants will incur an aggregate of 3,648

    annual burden hours in connection with the election to have a swap

    transaction treated as a block trade.\17\

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    \16\ See 78 FR 32866, 32913-14 (125,000 elections by SDs/MSPs +

    5,000 elections by nonSDs/MSPs = 130,000 total annual elections.

    130,000 elections x 0.0167 hours (one minute) of burden per response

    = 2,167 total annual burden hours).

    \17\ 218,428 block trades x 0.0167 hours (one minute) of burden

    per response = 3,648 total annual burden hours.

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    The Commission initially estimated that market participants would

    incur an aggregate of 2,255 annual burden hours in connection with the

    election to have a swap transaction treated as a large notional off-

    facility swap.\18\ Based on

    [[Page 18746]]

    the Commission's observation of market participants' compliance with

    part 43's requirements, the Commission is increasing this estimate and

    now estimates that market participants will incur an aggregate of

    77,230 annual burden hours in connection with the election to have a

    swap transaction treated as a large notional off-facility swap.\19\

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    \18\ See 78 FR 32866, 32914 (62,500 elections by SDs/MSPs +

    5,000 elections by nonSDs/MSPs = 63,000 total annual elections.

    67,500 elections x 0.0334 hours (two minutes) of burden per response

    = 2,255 total annual burden hours).

    \19\ 2,312,265 large notional off-facility swaps x 0.0334 hours

    (two minutes) of burden per response = 77,230 total annual burden

    hours.

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    Authority: 44 U.S.C. 3501 et seq.

    Dated: April 18, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    [FR Doc. 2017-08097 Filed 4-20-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: April 21, 2017