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

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


    [Pages 34932-34933]

    From the Federal Register Online via the Government Publishing Office []

    [FR Doc No: 2017-15857]




    Agency Information Collection Activities Under OMB Review

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.


    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. 3038-0075.

    By email addressed to:; 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. 3038-0075.

    By submission through the Commission's Web site: 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 mail.

    FOR FURTHER INFORMATION CONTACT: Gregory Scopino, Special Counsel, 202-

    418-5175, email:, CFTC Division of Swap Dealer and

    Intermediary Oversight.


    [[Page 34933]]

    Supporting statements. A copy of the supporting statements for the

    collection of information discussed herein may be obtained by visiting

    Comment instructions. All comments must be submitted in English, or

    if not, accompanied by an English translation. Comments will be posted

    as received to 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 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: Protection of Collateral of Counterparties to Uncleared

    Swaps; Treatment of Securities in a Portfolio Margining Account in a

    Commodity Broker Bankruptcy (OMB Control No. 3038-0075). This is a

    request for an extension of a currently approved information


    Abstract: On November 6, 2013, the Commission issued final rules

    implementing statutory provisions pursuant to Title VII of the Dodd-

    Frank Wall Street Reform and Consumer Protection Act (``Dodd-Frank

    Act'') and imposing requirements on swap dealers (``SD'') and major

    swap participants (``MSP'') with respect to the treatment of collateral

    posted by their counterparties to margin, guarantee, or secure

    uncleared swaps.\1\ Additionally, the final rule includes revisions to

    ensure that, for purposes of subchapter IV of chapter 7 of the

    Bankruptcy Code, securities held in a portfolio margining account that

    is a futures account or a Cleared Swaps Customer Account constitute

    ``customer property''; and owners of such accounts constitute

    ``customers.'' \2\ Section 4s(l) of the Commodity Exchange Act

    (``CEA'') sets forth certain requirements concerning the rights of

    counterparties of SDs and MSPs with respect to the segregation of

    money, securities, or other property used to margin, guarantee, or

    otherwise secure uncleared swaps. Section 23.701 of the Commission's

    regulations implements part of the new statutory requirements by

    specifying that certain information must be provided to counterparties

    about the terms and conditions of segregation, including price

    information, to the extent that the SD or MSP has such information, and

    the identity of one or more independent depositories for segregated

    collateral. Section 23.704 implements the requirements of CEA section

    4s(l)(4), which dictates that, in certain circumstances, an SD or MSP

    must report to the counterparty, on a quarterly basis, ``that the back

    office procedures of the swap dealer or major swap participant relating

    to margin and collateral requirements are in compliance with the

    agreement of the counterparties.''


    \1\ 78 FR 66621 (Nov. 6, 2013).

    \2\ Id.


    As discussed above, the rules establish reporting and recordkeeping

    requirements that are mandated by section 4s(l) of the CEA, which

    states that SDs and MSPs must notify their counterparties of the right

    to have their initial margin segregated and to maintain the

    confirmations and elections related to such notices as business

    records. The reporting and recordkeeping requirements are necessary to

    implement the objectives of section 4s(1). For example, the information

    received by uncleared swap counterparties pursuant to Sec. 23.701 of

    the Commission's regulations would alert counterparties to their

    statutory right, if they so choose, to have funds or property used as

    margin in uncleared swaps transactions with SDs and MSPs kept

    segregated from the property of the SD or MSP. Likewise, the

    information provided would further alert counterparties of the need to

    request such segregation if they wish to exercise this right.

    Similarly, the information received by uncleared swap counterparties

    pursuant to Sec. 23.704 would be used to confirm that the back office

    procedures followed by a SD or MSP with whom they are dealing comply

    with the agreement of the parties. On May 12, 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 22118 (May 12, 2017). The Commission

    received no relevant comments.

    Burden Statement: The Commission is revising its estimate of the

    burden for this collection to reflect the current number of registered

    SDs and MSPs. Accordingly, the respondent burden for this collection is

    estimated to be as follows:

    Number of Registrants: 102.

    Estimated Average Burden Hours per Registrant: 3406.

    Estimated Aggregate Burden Hours: 347,412.

    Frequency of Recordkeeping: As applicable.

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

    Dated: July 24, 2017.

    Christopher J. Kirkpatrick,

    Secretary of the Commission.

    [FR Doc. 2017-15857 Filed 7-26-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: July 27, 2017