2016-22957

Federal Register, Volume 81 Issue 185 (Friday, September 23, 2016)

[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]

[Notices]

[Pages 65630-65631]

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

[FR Doc No: 2016-22957]

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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 October 24, 2016.

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 the notice's

publication, by email at [email protected]. Please identify

the comments by OMB Control No. 3038-0074. Please provide the

Commission with a copy of all submitted comments at the address listed

below. Please refer to OMB Reference No. 3038-0074, found on http://reginfo.gov. Comments may also be mailed 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, and to: Christopher Kirkpatrick,

Secretary of the Commission, Commodity Futures Trading Commission,

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

by Hand Deliver/Courier at the same address; or through the Agency's

Web site at http://comments.cftc.gov. Follow the instructions for

submitting comments through the Web site.

A copy of the supporting statements for the collection of

information discussed above 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.

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:

Title: Core Principles and Other Requirements for Swap Execution

Facilities (OMB Control No. 3038-0074). This is a request for extension

of a currently approved information collection.

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

registered with the Commission (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 enumerated core principles.\2\

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\1\ In general, this OMB Control Number covers all 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 not included under this control number

and are instead 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 establish standards with respect to

SEFs: 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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The Commission initially estimated that there would be 35 SEFs

registered with the Commission, but in the 60-Day Notice of Intent to

Renew Collection 3038-0074 (60-Day Renewal Notice), the Commission

stated that 22 SEFs, rather than 35 SEFs as initially estimated, were

registered with the Commission.\3\ However, since the publication of

the 60-Day Renewal Notice, the Commission has granted permanent

registration to an additional SEF, for a total of 23 registered

SEFs.\4\ Accordingly, the Commisison is revising the below burden

statement from the 60-Day Renewal Notice to account for the increase

from 22 to 23 registered SEFs.

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\3\ See 81 FR 47779, 47780 (July 22, 2016).

\4\ Commission granted permanent registration to the additional

SEF on August 23, 2016.

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The Commission did not receive any relevant comments on the 60-Day

Renewal Notice.

[[Page 65631]]

Burden Statement: The Commission estimates that a respondent's

burden for this information collection will be (i) 1,000 on-going

annual burden hours per respondent registered SEF and (ii) 300 burden

hours per respondent applicant for permanent SEF registration.\5\

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\5\ The Commission notes that SEFs did not exist prior to either

the Dodd-Frank Act or the Commission's original submission of this

OMB Control Number, and so the Commission is revising its burden

estimate now that it has had the opportunity to observe SEFs'

operations and receive feedback from market participants. The

Commission notes that while its revised estimate of 1,000 annual

burden hours per respondent SEF is an increase from its original

estimate of 308 burden hours per respondent SEF, the Commission's

estimate does not represent any new information collection burdens

or adjustments to existing information collections. See 78 FR 33476,

33551 (June 4, 2013) (discussing the Commission's original PRA

estimate).

The Commission further notes that the separate estimate of 300

burden hours for applicants for permanent SEF registration does not

represent new information collection burdens or adjustments to

existing information collections. Rather, while the Commission did

consider the burden hours related to the SEF application process in

its original information collection submission for this OMB Control

Number, the Commission did not explicitly distinguish the burden

hours related to the registration process for SEF applicants from

the Commission's estimate of the on-going annual burden hours for

registered SEFs, but rather provided an aggregate number. See id. at

33549-51. For the sake of clarity, the Commission is explicitly

distinguishing in this notice between the burden hours for

registered SEFs and for applicants for SEF registration.

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Annual Burden Hours for Registered SEFs

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Respondents/Affected Registered SEFs.

Entities:.

Estimated number of 23. \1\

respondents:.

Estimated annual burden hours 1,000 burden hours.

per respondent:.

Estimated total annual burden 23,000 hours. \2\

on respondents:.

Frequency of collection:..... Per trade day. \3\

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Burden Hours for Applicants for Permanent SEF Registration

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Respondents/Affected Applicants for SEF Registration.

Entities:.

Estimated number of 4. \4\

respondents:.

Estimated annual burden hours 300 burden hours.

per respondent:.

Estimated total annual burden 1,200 burden hours. \5\

on respondents:.

Frequency of collection:..... Initial registration.

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\1\ In the part 37 final rule release, the Commission estimated that

there would be 35 SEFs. See 78 FR 33476, 33549 (June 4, 2013). The

Commission, however, notes that 23 SEFs are currently registered with

the Commission. In the 60-Day Renewal Notice, the Commission stated

that there were 22 then-registered SEFs; however, since the pulication

of the 60-Day Renewal Notice, the Commission has granted permanent

registration to an additional SEF. 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 revised number of

SEFs to 23.

\2\ 1,000 average annual burden hours per respondent SEF x 23 registered

SEFs = 23,000 total burden hours for all registered SEFs.

\3\ The Commission notes that registered SEFs also are required to

provide four quarterly reports and one annual report as part of their

annual information collection obligations.

\4\ 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 four applications per year for permanent SEF

registration.

\5\ 300 average initial burden hours per respondent SEF applicant x 4

anticipated SEF applicants = 1,200 total burden hours incurred for all

anticipated SEF applicants per year.

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

Dated: September 20, 2016.

Robert N. Sidman,

Deputy Secretary of the Commission.

[FR Doc. 2016-22957 Filed 9-22-16; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: September 23, 2016