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2017-11105

  • Federal Register, Volume 82 Issue 102 (Tuesday, May 30, 2017)

    [Federal Register Volume 82, Number 102 (Tuesday, May 30, 2017)]

    [Notices]

    [Pages 24688-24690]

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

    [FR Doc No: 2017-11105]

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    COMMODITY FUTURES TRADING COMMISSION

    Agency Information Collection Activities: Extension of

    Information Collections Under the Dodd-Frank Act

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.

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    SUMMARY: The Commodity Futures Trading Commission (``Commission'' or

    ``CFTC'') is announcing an opportunity for public comment on the

    extension of two information collections (ICs), one concerning the

    filing of an annual report provided for in the Derivatives Clearing

    Organization General Provisions and Core Principles regulations and the

    other concerning the filing of a Subpart C Election Form and other

    reporting and recordkeeping requirements provided for in subpart C,

    part 39 of the Commission Regulations. 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, and to

    allow 60 days for public comment.

    DATES: Comments must be submitted on or before July 31, 2017.

    ADDRESSES: You may submit comments, identified by OMB Control No. 3038-

    0081 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: Tracey Wingate, Special Counsel,

    Division of Clearing and Risk, Commodity Futures Trading Commission,

    (202) 418-5318; email: twingate@cftc.gov.

    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 of the

    proposed collection of information listed below.

    This notice solicits comments on two ICs contained in OMB Control

    No. 3038-0081: (A) The filing of an annual report provided for in

    Derivatives Clearing Organization General Provisions and Core

    Principles \1\ (part 39 of the Commission Regulations); and, (B) filing

    of the Subpart C Election Form provided for in subpart C, part 39 of

    the Commission Regulations for DCOs that elect to be held to the same

    standards as systemically important DCOs (``SIDCOs'') regulatory

    requirements (``Subpart C DCOs''). These additional standards are

    mandatory for SIDCOs and optional for Subpart C DCOs. An agency may not

    conduct or sponsor, and a person is not required to respond to, an

    information collection unless it displays a valid OMB control number.

    An explanation of the ICs and the current burden estimates are provided

    for below:

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    \1\ OMB Control No. 3038-0081 is being retitled to more

    accurately reflect the information collections covered.

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    Title: Derivatives Clearing Organizations, General Regulations and

    International Standards; OMB Control No. 3038-0081. This is a request

    for extension of a currently approved OMB Control No. 3038-0081.

    Abstract:

    (A) Annual report provided for in Derivatives Clearing Organization

    General Provisions and Core Principles. Section 725(c) of the Dodd-

    Frank Act amended Section 5b(c)(2) of the CEA to allow the Commission

    to establish regulatory standards for compliance with the DCO core

    principles. Accordingly, the Commission adopted a final rule to set

    specific standards for compliance with DCO Core Principles.\2\ The DCO

    Final Rule requires the appointment of a CCO, the filing of an annual

    report and adherence to certain recordkeeping requirements.\3\ It also

    allows the Commission to collect information at other times as

    necessary. The information collected in the annual report pursuant to

    those regulations is necessary for the Commission to evaluate whether

    DCOs are complying with Commission regulations.

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    \2\ See Derivatives Clearing Organization General Provisions and

    Core Principles, 76 FR 69334 (November 8, 2011) (DCO Final Rule).

    \3\ These DCO recordkeeping requirements and associated costs

    are captured in separate proposed rulemakings under separate OMB

    Control Nos.; specifically, see Risk Management Requirements for

    Derivatives Clearing Organizations; 76 FR 3698 (Jan. 20, 2011) (OMB

    Control No. 3038-0076); Information Management Requirements for

    Derivatives Clearing Organizations, 75 FR 78185 (Dec. 15, 2010) (OMB

    Control No. 3038-0069); and Financial Resources requirements for

    Derivatives Clearing Organizations, 75 FR 63113 (Oct. 14, 2010) (OMB

    Control No. 3038-0066).

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    (B) Subpart C Election Form and other reporting and recordkeeping

    requirements provided for in subpart C, part 39 of the Commission

    Regulations. In the Derivatives Clearing Organizations and

    International Standards final rule (SIDCO-Subpart C DCO Final Rule),\4\

    the Commission adopted amendments to its regulations

    [[Page 24689]]

    to establish additional standards for compliance with the DCO core

    principles set forth in Section 5b(c)(2) of the CEA for SIDCOs and

    Subpart C DCOs which are consistent with certain international

    standards. Specifically, the additional requirements address any

    remaining gaps between the Commission's existing regulations and the

    Principles for Financial Market Infrastructures (``PFMI'') published by

    the Committee on Payments and Market Infrastructures and the Board of

    the International Organization of Securities Commissions.

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    \4\ See Derivatives Clearing Organizations and International

    Standards, 78 FR 72476 (December 2, 2013) (SIDCO-Subpart C DCO Final

    Rule).

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    The SIDCO-Subpart C DCO Final Rule also established the process

    whereby DCO and DCO applicants, respectively, may elect to become

    Subpart C DCOs subject to the provisions of Subpart C. The election

    involves filing the Subpart C Election Form contained in appendix B to

    part 39 of the Commission's regulations, which involves completing

    certifications, providing exhibits, and drafting and publishing

    responses to the PFMI Disclosure Framework and PFMI Quantitative

    Information Disclosure, as applicable. Additionally, the SIDCO-Subpart

    C DCO Final Rule provides for Commission requests for supplemental

    information from those requesting Subpart C DCO status; requires

    amendments to the Subpart C Election Form in the event that a DCO or

    DCO Applicant, respectively, discovers a material omission or error in,

    or if there is a material change in, the information provided in the

    Subpart C Election Form; to submit a notice of withdrawal to the

    Commission in the event the DCO or DCO applicant determines not to seek

    Subpart C DCO status prior to such status becoming effective; and

    procedures by which a Subpart C DCO may rescind its Subpart C DCO

    status after it has been permitted to take effect. Further, each of

    these requirements implies recordkeeping that would be produced by a

    DCO to the Commission on an occasional basis to demonstrate compliance

    with the rules. The information that would be collected under in

    subpart C, part 39 of the Commission Regulations is necessary for the

    Commission to determine whether a DCO meets the Subpart C DCO standards

    and is likely to be able to maintain compliance with such standards; to

    evaluate whether SIDCOs and Subpart C DCOs are complying with

    Commission regulations; and to perform risk analyses with respect to

    SIDCOs and Subpart C 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.\5\

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    \5\ 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 total annual time burden for all respondents

    is estimated to be 18,472 hours.

    See Appendix A for an individual breakdown for burden for annual

    reports provided for in Derivatives Clearing Organization General

    Provisions and Core Principles.

    See Appendix B for an individual breakdown for burden for Subpart C

    Election Form and other reporting and recordkeeping requirements

    provided for in subpart C, part 39 of the Commission Regulations.

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

    Dated: May 19, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    Appendix A--Derivatives Clearing Organization General Provisions and

    Core Principles OMB Collection 3038-0081

    Annual Reporting Requirements for Derivatives Clearing Organizations

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    Estimated total

    number of hours

    Reports Estimated of annual

    Estimated number of respondents per year annually by Total annual average number burden in

    each responses of hours per fiscal year

    respondent response (maximum: 12 x

    80)

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    12.......................................... 1 12 40-80 480-960

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    Appendix B--Subpart C Election Form and Other Reporting and

    Recordkeeping Requirements Provided for in Subpart C, Part 39 of the

    Commission Regulations OMB Collection 3038-0081

    [[Page 24690]]

    SIDCO/Subpart C DCO Regulations--Reporting Collection

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    Estimated

    Estimated Reports Estimated total number

    number of annually by Total annual average number of hours of

    respondents each responses of hours per annual burden

    per year response in fiscal year

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    Certifications--Subpart C 5 1 5 25 125

    Election Form..................

    Exhibits A thru G--Subpart C 5 1 5 155 775

    Election Form..................

    Disclosure Framework Responses.. 5 1 5 200 1,000

    Quantitative Information 5 1 5 80 400

    Disclosures....................

    Supplemental Information........ 5 5 25 45 1,125

    Amendments to Subpart C Election 5 3 15 8 120

    Form...........................

    Withdrawal Notices.............. 1 1 1 2 2

    Rescission Notices.............. 1 75 75 3 225

    Written Governance Arrangements. 7 1 7 200 1,400

    Governance Disclosures.......... 7 6 42 3 126

    Financial and Liquidity Resource 7 1 7 120 840

    Documentation..................

    Stress Test Results............. 7 16 112 14 1,568

    Disclosure Framework 2 1 2 200 400

    Requirements (SIDCOs Only).....

    Disclosure Framework 7 1 7 80 560

    Requirements (Both)............

    Quantitative Information 2 1 2 80 160

    Disclosures (SIDCOs Only)......

    Quantitative Information 7 1 7 35 245

    Disclosures (Both).............

    Transaction, Segregation, 7 2 14 35 490

    Portability Disclosures........

    Efficiency and Effectiveness 7 1 7 3 21

    Review.........................

    Recovery and Wind-Down Plan..... 7 1 7 480 3,360

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    Totals...................... .............. 120 350 1,768 12,942

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    SIDCO/Subpart C DCO Regulations--Recordkeeping Collection

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    Estimated

    Estimated Records to be Estimated total number

    number of kept annually Total annual average number of hours of

    recordkeepers by each responses of hours per annual burden

    per year record in fiscal year

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    Generally....................... 5 82 410 1 2,050

    Liquidity Resource Due Diligence 7 4 28 10 280

    and Testing....................

    Financial and Liquidity 7 4 28 10 280

    Resources, Excluding Due

    Diligence......................

    Generally....................... 7 28 196 10 1,960

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    Totals...................... .............. 118 662 31 4,570

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    [FR Doc. 2017-11105 Filed 5-26-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: May 30, 2017