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: [email protected]; 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: [email protected]; or Joshua Beale, Special Counsel,

202-418-5446, email: [email protected], 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