2016-17374
Federal Register, Volume 81 Issue 141 (Friday, July 22, 2016)
[Federal Register Volume 81, Number 141 (Friday, July 22, 2016)]
[Notices]
[Pages 47779-47781]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-17374]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Renew Collection 3038-0074, Core Principles and Other Requirements for
Swap Execution Facilities
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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SUMMARY: The Commodity Futures Trading Commission (Commission) is
announcing an opportunity for public comment on the renewal of the
collection of certain information by the agency. Under the Paperwork
Reduction Act (PRA), Federal agencies are required to publish notice in
the Federal Register concerning each proposed collection of information
and to allow 60 days for public comment. This notice solicits comments
in connection with part 37 of the Commission's regulations, which
requires certain recordkeeping and reporting information collections
for swap execution facilities (SEFs).
DATES: Comments must be submitted on or before September 20, 2016.
ADDRESSES: You may submit comments, identified by ``Renewal of
Collection Pertaining to Core Principles and Other Requirements for
Swap Execution Facilities'' 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: Steven A. Haidar, Attorney-Advisor,
Division of Market Oversight, Commodity Futures Trading Commission,
(202) 418-5611; email: [email protected], and refer to OMB Control No.
3038-0074.
SUPPLEMENTARY INFORMATION: Under the PRA, 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 Commission is publishing notice of the existing collections of
information listed below.
Title: Core Principles and Other Requirements for Swap Execution
Facilities (OMB Control No. 3038-0074). This is a request for extension
of currently approved information collections.
Abstract: Title VII of the Dodd-Frank Wall Street Reform and
Consumer Protection Act (Dodd-Frank Act) added new section 5h to the
Commodity Exchange Act (CEA) to impose requirements concerning the
registration and operation of SEFs, which the Commission has
incorporated in part 37 of its regulations.\1\ These information
collections are needed for the Commission to ensure that SEFs (and
entities applying for SEF registration) comply with these requirements.
Among other requirements, part 37 of the Commission's regulations
imposes SEF registration requirements for a trading platform or system,
obligates SEFs to provide transaction confirmations to swap
counterparties, and requires SEFs to comply with 15 core principles.\2\
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\1\ In general, this OMB control number covers the information
collections in part 37 of the Commission's regulations, including
subpart A and the SEF core principles (i.e., subparts B and C).
However, any information collections related to Sec. 37.10 of the
Commission's regulations are subject to a separate information
collection with OMB control number 3038-0099 (Process for a Swap
Execution Facility or Designated Contract Market to Make a Swap
Available to Trade).
\2\ These 15 core principles include: Enforcing rules; listing
contracts for trading that are not readily susceptible to
manipulation; monitoring trading to prevent market manipulation;
obtaining information; adopting position limits or position
accountability levels; adopting rules to enforce financial integrity
of swaps transactions entered on or through the SEF; adopting rules
to provide for the exercise of emergency authority, in consultation
with the Commission; making public information regarding prices and
volume on a timely basis; maintaining records of all activities of
the business of the contract market in a form and manner acceptable
to the Commission for five years; avoiding rules that result in
unreasonable restraints of trade or anticompetitive burden on
trading; enforcing rules to minimize conflicts of interest in its
decision-making process; maintaining adequate financial resources;
establishing system safeguards; and designating a chief compliance
officer.
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[[Page 47780]]
With respect to these information collections, the Commission
invites comments on:
Whether the collections of information are 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 collections 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.\3\
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\3\ 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: Part 37 of the Commission's regulations result in
information collection requirements within the meaning of the PRA.
These regulations impose requirements concerning the registration and
operation of SEFs, including requiring SEFs to continually be in
compliance with 15 core principles. The Commission initially estimated
that each respondent SEF would incur annually 308 burden hours in
connection with collections of information and that there would be 35
SEF respondents for an aggregate of 10,780 annual burden hours.\4\
Based on the Commission's observation of registered SEFs' operations
and compliance with part 37's requirements, the Commission is
increasing this estimate and now estimates that each respondent SEF
would incur annually 1,000 burden hours. Additionally, the Commission
notes that rather than the initial estimate of 35 SEFs, there currently
are 22 SEFs registered with the Commission. The recurring annual burden
hours for each SEF are increased as noted in the applicable table
below.
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\4\ See 78 FR 33476, 33549. (35 SEFs x 308 burden hours = 10,780
hours per SEF).
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Furthermore, in its initial PRA analysis, the Commission did not
explicitly distinguish the non-recurring burden hours related to the
registration process from the Commission's estimate of the recurring,
annual burden hours, but rather provided an aggregated number.\5\ Based
on the experience gained by the Commission during the SEF permanent
registration review process, the Commission estimates that each SEF
incurs approximately 300 non-recurring burden hours in connection with
completing the registration process. The non-recurring burden hours for
each SEF are noted in the applicable table below.
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\5\ See id.
\6\ In the part 37 final rule release, the Commission estimated
that there would be 35 SEFs. See id. The Commission, however, notes
that 22 SEFs are currently registered with the Commission.
Accordingly, the revised aggregate burden hour estimate accounts for
both the increased annual burden hours estimate to 1,000 hours per
SEF as well as the decrease in the number of SEFs from 35 to 22.
\7\ 1,000 average recurring burden hours per respondent SEF x 22
registered SEFs = 22,000 total burden hours for all registered SEFs.
\8\ The Commission notes that respondent SEFs also are required
to provide 4 quarterly reports and one annual report as part of
their recurring information collection obligations.
\9\ Based on the number of applicants that have applied for
permanent SEF registration since the Commission first granted
permanent registration status to SEFs on January 22, 2016, the
Commission expects to receive 4 applications per year for permanent
SEF registration.
\10\ 300 average initial burden hours per respondent SEF x 4
anticipated SEF applicants = 1,200 total burden hours incurred for
all anticipated SEF applicants.
Recurring Annual Burden Hours for SEFs
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Respondents/Affected Entities.............. SEFs.
Estimated number of respondents............ 22.\6\
Estimated annual burden hours per 1000 burden hours.
respondent SEF.
Estimated total annual burden on 22,000 hours.\7\
respondents.
Frequency of collection.................... Once per trade day.\8\
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Non-Recurring Annual Burden Hours for SEFs
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Respondents/Affected Entities.............. SEFs.
Estimated number of respondents............ 4.\9\
Estimated annual burden hours per 300.
respondent SEF.
Estimated total annual burden on 1,200.\10\
respondents.
Frequency of collection.................... Initial registration.
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[[Page 47781]]
Authority: 44 U.S.C. 3501 et seq.
Dated: July 19, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-17374 Filed 7-21-16; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: July 22, 2016