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2017-15767

  • Federal Register, Volume 82 Issue 143 (Thursday, July 27, 2017)

    [Federal Register Volume 82, Number 143 (Thursday, July 27, 2017)]

    [Notices]

    [Pages 34933-34934]

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

    [FR Doc No: 2017-15767]

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    COMMODITY FUTURES TRADING COMMISSION

    Agency Information Collection Activities Under OMB Review

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.

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    SUMMARY: In compliance with the Paperwork Reduction Act of 1995

    (``PRA''), this notice announces that the Information Collection

    Request (``ICR'') abstracted below has been forwarded to the Office of

    Management and Budget (``OMB'') for review and comment. The ICR

    describes the nature of the information collection and its expected

    costs and burden.

    DATES: Comments must be submitted on or before August 28, 2017.

    ADDRESSES: Comments regarding the burden estimated or any other aspect

    of the information collection, including suggestions for reducing the

    burden, may be submitted directly to the Office of Information and

    Regulatory Affairs (``OIRA'') in OMB, within 30 days of the notice's

    publication, by either of the following methods. Please identify the

    comments by OMB Control No. 3038-0091.

    By email addressed to: OIRAsubmissions@omb.eop.gov; or

    By mail addressed to: Office of Information and Regulatory

    Affairs, Office of Management and Budget, Attention: Desk Officer for

    the Commodity Futures Trading Commission, 725 17th Street NW.,

    Washington, DC 20503.

    A copy of all comments submitted to OIRA should be sent to the

    Commodity Futures Trading Commission (``CFTC'' or ``Commission'') by

    either of the following methods. The copies should refer to OMB Control

    No. 3038-0091.

    By submission through the Commission's Web site: http://

    [[Page 34934]]

    comments.cftc.gov. Please follow the instructions for submitting

    comments through the Web site;

    By mail addressed to: Christopher Kirkpatrick, Secretary

    of the Commission, Commodity Futures Trading Commission, Three

    Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; or

    By hand delivery/courier to: the address listed above for

    submission by mail.

    FOR FURTHER INFORMATION CONTACT: Jacob Chachkin, Special Counsel, 202-

    418-5496, email: jchachkin@cftc.gov; or Joshua Beale, Special Counsel,

    202-418-5446, email: jbeale@cftc.gov, both in the CFTC Division of Swap

    Dealer and Intermediary Oversight.

    SUPPLEMENTARY INFORMATION:

    Supporting statements. A copy of the supporting statements for the

    collection of information discussed herein may be obtained by visiting

    http://RegInfo.gov.

    Comment instructions. 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 (``FOIA''), 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,

    17 CFR 145.9. 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 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 FOIA.

    Title: Disclosure and Retention of Certain Information Relating to

    Cleared Swaps Customer Collateral (OMB Control No. 3038-0091). This is

    a request for an extension of a currently approved information

    collection.

    Abstract: Part 22 of the Commission's regulations under the

    Commodity Exchange Act (``CEA'') establishes rules for the protection

    of customer collateral held by futures commission merchants (``FCM'')

    and derivatives clearing organizations (``DCO'') to serve as margin in

    cleared swaps transactions. As part of this regulatory scheme,

    Sec. Sec. 22.2(g), 22.5(a), 22.11, 22.12, 22.16, and 22.17 impose

    recordkeeping and third-party disclosure requirements on FCMs and DCOs.

    In addition, Sec. 22.13(c)(2) indirectly requires FCMs who post excess

    collateral with DCOs to perform certain computations regarding such

    collateral, although it is not expected to materially affect the total

    paperwork burden associated with Part 22.

    Section 22.2(g) requires each FCM with Cleared Swaps Customer

    Accounts \1\ to, among other things, compute daily and report to the

    Commission the amount of Cleared Swaps Customer Collateral \2\ on

    deposit in such accounts, the amount of such collateral required to be

    on deposit in such accounts and the amount of the FCM's residual

    financial interest in such accounts. Section 22.5(a) requires an FCM or

    DCO to obtain, from each depository with which it deposits cleared

    swaps customer funds, a letter acknowledging that such funds belong to

    the Cleared Swaps Customers \3\ of the FCM or DCO, and not the FCM,

    DCO, or any other person. Section 22.11 requires each FCM that

    intermediates cleared swaps for customers on or subject to the rules of

    a DCO, whether directly as a clearing member or indirectly through a

    Collecting FCM,\4\ to provide the DCO or the Collecting FCM, as

    appropriate, with information sufficient to identify each customer of

    the FCM whose swaps are cleared by the FCM. Section 22.11 also requires

    the FCM, at least once daily, to provide the DCO or the Collecting FCM,

    as appropriate, with information sufficient to identify each customer's

    portfolio of rights and obligations arising out of cleared swaps

    intermediated by the FCM. Section 22.12 requires that each Collecting

    FCM and DCO, on a daily basis, calculate, based on information received

    pursuant to Sec. 22.11 and on information generated and used in the

    ordinary course of business by the Collecting FCM or DCO, and record

    certain information about the amount of collateral required for each

    Cleared Swaps Customer and the sum of these amounts. Section 22.16

    requires that each FCM who has Cleared Swaps Customers disclose to each

    of such customers the governing provisions, as established by DCO rules

    or customer agreements between collecting and depositing FCMs, relating

    to use of customer collateral, transfer, neutralization of the risks,

    or liquidation of cleared swaps in the event of default by a Depositing

    FCM \5\ relating to a Cleared Swaps Customer Account. Section 22.17

    requires that FCM produce a written notice of the reasons and the

    details concerning withdrawals from Cleared Swaps Customers Account not

    for the benefit of Cleared Swap Customers if such withdrawal will

    exceed 25% of the FCMs residual interest in such account.

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    \1\ For the definition of Cleared Swaps Customer Account, see 17

    CFR 22.1.

    \2\ Id.

    \3\ Id.

    \4\ Id.

    \5\ Id.

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    The Commission believes that the information collection obligations

    imposed by Commission regulations in Sec. Sec. 22.2(g), 22.5(a),

    22.11, 22.12, 22.16, and 22.17 are essential (i) to ensuring that FCMs

    and DCOs develop and maintain adequate customer protections and

    procedures over Cleared Swap Customer funds as required by the CEA, and

    Commission regulations, and (ii) to the effective evaluation of these

    registrants' actual compliance with the CEA and Commission regulations.

    On April 24, 2017, the Commission published in the Federal Register a

    notice of the proposed extension of this information collection and

    provided 60 days for public comment on the proposed extension. See 82

    FR 18900 (April 24, 2017). The Commission received no comments.

    Burden Statement: The Commission is revising its estimate of the

    burden for this collection to reflect the current number of affected

    registrants. Accordingly, the respondent burden for this collection is

    estimated to be as follows:

    Number of Registrants: 68.

    Estimated Average Burden Hours per Registrant: 365.

    Estimated Aggregate Burden Hours: 24,820.

    Frequency of Recordkeeping: As applicable.

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

    Dated: July 21, 2017.

    Christopher J. Kirkpatrick,

    Secretary of the Commission.

    [FR Doc. 2017-15767 Filed 7-26-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: July 27, 2017