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2017-16019

  • Federal Register, Volume 82 Issue 146 (Tuesday, August 1, 2017)

    [Federal Register Volume 82, Number 146 (Tuesday, August 1, 2017)]

    [Notices]

    [Pages 35764-35767]

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

    [FR Doc No: 2017-16019]

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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 31, 2017.

    ADDRESSES: Comments regarding the burden estimate 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 this notice's

    publication by either of the following methods. Please identify the

    comments by ``OMB Control No. 3038-0081''.

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

    By mail addressed to: the 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 (the ``Commission'') by either of

    the following methods. The copies should refer to ``OMB Control No.

    3038-0081''.

    By mail addressed to: Christopher Kirkpatrick, Secretary

    of the Commission, Commodity Futures Trading Commission, Three

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

    By Hand Delivery/Courier to the same address; or

    Through the Commission's Web site at http://comments.cftc.gov. Please follow the instructions for submitting

    comments through the Web site.

    A copy of the supporting statement for the collection of

    information discussed herein may be obtained by visiting http://RegInfo.gov.

    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.\1\ The

    [[Page 35765]]

    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 Freedom of

    Information Act.

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    \1\ 17 CFR 145.9.

    FOR FURTHER INFORMATION CONTACT: Robert Wasserman, Chief Counsel,

    Division of Clearing and Risk, Commodity Futures Trading Commission,

    (202) 418-5092; email: rwasserman@cftc.gov, and refer to OMB Control

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    No. 3038-0081.

    SUPPLEMENTARY INFORMATION:

    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. containing two

    information collections consolidated into OMB Control No. 3038-0081.

    Derivatives Clearing Organization General Provisions and Core

    Principles.\2\ 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.\3\ The DCO Final Rule requires the

    appointment of a CCO, the filing of an annual report and adherence to

    certain recordkeeping requirements.\4\ The information collected

    pursuant to those regulations is necessary for the Commission to

    evaluate whether DCOs are complying with Commission regulations.

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    \2\ The 60-day Federal Register notice, 82 FR 24688, May 30,

    2017, identified this information collection as ``Annual report

    provided for in Derivatives Clearing Organization General Provisions

    and Core Principles.''

    \3\ See Derivatives Clearing Organization General Provisions and

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

    \4\ 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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    Derivatives Clearing Organizations and International Standards.\5\

    In the SIDCO-Subpart C DCO Final Rule, the Commission adopted

    amendments to its regulations to establish additional standards for

    compliance with the DCO core principles set forth in Section 5b(c)(2)

    of the CEA for systemically important DCOs (``SIDCOs'') and DCOs that

    elect to opt-in to the SIDCO regulatory requirements (``Subpart C

    DCOs'') which are consistent with certain international standards.\6\

    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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    \5\ The 60-day Federal Register notice, 82 FR 24688, May 30,

    2017, identified this information collection as Subpart C Election

    Form and other reporting and recordkeeping requirements provided for

    in subpart C, part 39 of the Commission Regulations.

    \6\ 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 the

    SIDCO-Subpart C DCO Final Rule, 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.

    An agency may not conduct or sponsor, and a person is not required

    to respond to, a collection of information unless it displays a

    currently valid OMB control number. On May 30, 2017, the Commission

    published in the Federal Register notice of the proposed extension of

    this information collection and provided 60 days for public comment on

    the proposed extension, 82 FR 24688 (``60-Day Notice'').

    Burden Statement: The Commission is not revising its estimate of

    the burden for this collection. The respondent burden for this

    collection is estimated to be as follows:

    Estimated Number of Respondents: With respect to the DCO Final

    Rule, the estimated number of respondents is 12. With respect to the

    SIDCO-Subpart C DCO Rule, the estimated number of respondents is 7.

    Estimated Average Burden Hours Per Respondent: With respect to the

    DCO Final Rule, the estimated average burden hours is 80. With respect

    to the SIDCO-Subpart C DCO Rule, the estimated average burden hours is

    2,502.

    Estimated Total Annual Burden Hours: With respect to the DCO Final

    Rule, the total annual burden hours is estimated to be 960. With

    respect to the SIDCO-Subpart C DCO Rule, the total annual burden hours

    is estimated to be 17,512.

    Frequency of Collection: With respect to the DCO Final Rule, the

    estimated frequency of collection is annual. With respect to the SIDCO-

    Subpart C DCO Rule, the frequency of collection is annual and

    occasional.

    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

    Derivatives Clearing Organizations and International Standards (Subpart

    C Election Form and other reporting and recordkeeping requirements

    provided

    [[Page 35766]]

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

    There are no capital costs or operating and maintenance costs

    associated with this collection.

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

    Dated: July, 25, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    Note: The following appendices will not appear in the Code of

    Federal Regulations.

    Appendix A--Derivatives Clearing Organization General Provisions and

    Core Principles OMB Collection 3038-0081.

    The regulations under this final rulemaking require DCOs to

    report information to the Commission on an annual basis but allow

    the Commission to collect information at other times as necessary.

    Annual Reporting Requirements For Derivatives Clearing Organizations

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    Estimated

    total number

    Reports Estimated of hours of

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

    each responses of hours per in fiscal year

    respondent response (maximum:

    12x80)

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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

    SIDCO/Subpart C DCO Regulations--Reporting Collection

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    Estimated

    Estimated Estimated total number

    number of Reports Total annual average of hours of

    respondents annually by responses number of annual burden

    per year each hours per in fiscal

    response 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 Estimated total number

    number of Records to be Total annual average of hours of

    recordkeepers kept annually responses number of annual burden

    per year by each hours per in fiscal

    record year

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

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    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 1960

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    Totals...................... .............. 118 662 31 4570

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    [FR Doc. 2017-16019 Filed 7-31-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: August 1, 2017