2016-25925
Federal Register, Volume 81 Issue 207 (Wednesday, October 26, 2016)
[Federal Register Volume 81, Number 207 (Wednesday, October 26, 2016)]
[Notices]
[Pages 74408-74410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25925]
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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
[[Page 74409]]
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 November 25, 2016.
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 in OMB, within 30 days of publication of the notice,
by email at [email protected]. Please identify the comments
by OMB Control No. 3038-0096. Please provide the Commission with a copy
of all submitted comments at the address listed below. Please refer to
OMB Reference No. 3038-0096, 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 the Commission through its Web site at http://comments.cftc.gov. Follow the instructions for submitting comments
through the Web site.
Comments may also be mailed 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 at the same address.
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: Andrew Ridenour, Special Counsel,
(202) 418-5438, [email protected], or Owen Kopon, Attorney-Advisor,
(202) 418-5360, [email protected], Division of Market Oversight, and
refer to OMB Control No. 3038-0096.
SUPPLEMENTARY INFORMATION:
Title: Revised Collection, Comment Request: Amendments to Swap Data
Recordkeeping and Reporting Requirements for Cleared Swaps, Final Rule
(OMB Control No. 3038-0096). This is a request for a revision to a
currently approved information collection.
Abstract: The Commission recently adopted a final rule regarding
the reporting of cleared swap transactions (the ``Cleared Swap
Reporting Release''),\1\ which will require entities reporting swaps to
report certain additional data elements. This Cleared Swap Reporting
Release will also require registered derivatives clearing organizations
(``DCOs'') to terminate ``original swaps'' (as defined in that final
rule), which may require DCOs to connect to multiple registered swap
data repositories (``SDRs''). 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. The Federal
Register notice with a 60-day comment period soliciting comments on
this collection of information (``60 Day Notice''), implicated by the
requirements of the Cleared Swap Reporting Release, was published on
July 21, 2016 (81 FR 47362). The 60 Day Notice included a burden
estimate for (a) DCOs to connect to SDRs for purposes of terminating
original swaps, estimated to require a one-time hours burden of 3,000
per DCO and a recurring annual cost of $250,000; and (b) changes to
reporting systems by all reporting entities and SDRs to account for
additional and amended primary economic terms (``PET'') data fields in
the Cleared Swap Reporting Release and future changes required by
changes to PET fields and developments in the swaps market, estimated
as a recurring burden of 200 hours per year.\2\
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\1\ See Amendments to Swap Data Recordkeeping and Reporting
Requirements for Cleared Swaps, Final Rule, 81 FR 41736 (June 27,
2016).
\2\ While not connected to the Cleared Swap Reporting Release,
the Commission also proposed in the 60 Day Notice to reduce the
number of SDRs in collection 3038-0096 from 15 to 4. When submitting
the original OMB information collection for part 45 reporting, the
Commission had assumed that up to 15 entities would register as
SDRs. Currently, there are four SDRs provisionally registered with
the Commission. Three other entities had submitted SDR applications.
Two withdrew applications in 2012 and 2014. One (GTR) withdrew its
application and resubmitted under the corporate entity DTCC Data
Repository (US) LLC, which currently operates as a provisionally
registered SDR. As the Commission has not received any SDR
applications since 2012, the Commission believes that four is a
reasonable number of SDRs for calculating PRA burdens.
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The Commission received one comment letter in response to the 60
Day Notice. CME Group commented that the Commission's assumptions
relating to economies of scale for connections to more than one SDR
were erroneous. CME Group also commented that the Commission's
assumption that DCOs would not need to connect to every SDR because not
every SDR accepted every asset class of swaps was erroneous, because
only the equities asset class was accepted by fewer than four SDRs.
While not providing a specific number of burden hours associated with
the Cleared Swap Reporting Release, CME Group estimated that the build
to comply with the rule would be ``almost 50% above the Commission's
estimate[.]'' CME Group also commented that the Commission's estimate
of annual costs was low because the incorrect assumptions on economies
of scale and limited numbers of SDR connections applied to costs as
well as burden hours. (CME Group Sept. 19, 2016 Letter, at 2-5).\3\ The
CME Group letter did not address the 200 hour recurring burden for
changes to PET fields, and the Commission received no other comments on
the 60 Day Notice.
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\3\ The Commission received a comment from Robert Rutkowski on
Sept. 15, 2016 under this comment file. However, this comment letter
related to the de minimis report, not the Cleared Swap Reporting
Release or PRA Notice.
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Burden Statement: Based on the comment letter received in response
to the 60 Day Notice, the Commission is revising its estimate of the
burden for this collection by increasing the estimated costs associated
with the termination of original swaps by 50 percent. The Commission is
not revising the burden estimate association with additional and
amended PET fields.
Below are tables indicating the increase in burden hours and costs
above those in the current collection 3038-0096:
[[Page 74410]]
Additional and Amended PET Fields
[Same as in 60 day notice]
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Affected entities SDRs, SEFs, DCMs, DCOs, SD/MSPs, non-SD/MSP reporting entities
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Number of
Burden type Burden per respondent respondents Total burden
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Annual hours burden................... 200 hours................ 449 89,800 hours.
Annual costs.......................... $0....................... 449 $0.
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Termination of Original Swaps
[Increased by 50% from 60 day notice]
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Affected entities DCOs
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Number of
Burden type Burden per respondent respondents Total burden
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One-time hours burden................. 4,500 hours.............. 12 54,000 hours.
Annual costs.......................... $375,000................. 12 $4,500,000.
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Increases in Hours Burdens and New Total Hours Burden
Based on an increase in annual burden hours of 89,800, Commission
staff estimate that the revised aggreagate total annual time burden for
the collection is 562,945 hours.
Increases in Aggregate Costs
There are three components to the aggregate increase in annual
costs associated with this revision, (a) costs associated with changes
to reporting systems, to be incurred by 449 entities; (b) annualized
costs associated with establishing SDR connections by DCOs; and (c)
costs associated with maintaining SDR connections by DCOs.
First, the Commission estimates that the costs associated with
additional and amended PET fields will be $15,196 per entity (200 hours
x $75.98 per hour).\4\ The aggregate increase across all 449 reporting
entities and SDRs for the additional and amended PET fields is
therefore $6,823,004.
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\4\ In calculating the cost figures associated with burden
hours, the Commission estimated the appropriate wage rate based on
salary information for the securities industry compiled by the
Securities Industry and Financial Markets Association (``SIFMA'').
Commission staff arrived at an hourly rate of $75.98 using figures
from a weighted average of salaries and bonuses across different
professions from the SIFMA Report on Management & Professional
Earnings in the Securities Industry 2013, modified to account for an
1800-hour work-year and multiplied by 1.3 to account for overhead
and other benefits. The Commission estimated appropriate wage rate
is a weighted national average of salary and bonuses for
professionals with the following titles (and their relative weight):
``programmer (senior)'' (30% weight); ``programmer'' (30%);
``compliance advisor (intermediate)'' (20%); ``systems analyst''
(10%), and ``assistant/associate general counsel'' (10%).
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Second, the Commission estimates that DCO to SDR connections will
require each DCO to incur a one-time start-up cost of $341,910 (4,500
hours x $75.98 per hour). The Commission estimates that DCOs will use
these connections for 20 years, and therefore the annualized start-up
cost for SDR connections will be $17,095 per DCO. Based on 12 DCOs, the
aggregate annualized start-up cost for SDR connections will be
$205,146.
Third, DCOs will incur an aggregate annual cost of $4,500,000 to
maintain those SDR connections.
By combining these three components, the aggregate increase to
annual costs associated with this collection will be $11,528,150.
Total Aggregate Costs
Commission staff estimate that the revised aggregate total annual
cost for the collection is $99,462,062. The burden estimate represents
the burden that SDRs, swap execution facilities (``SEFs''), designated
contract markets (``DCMs''), DCOs, swap dealers (``SDs''), major swap
participants (``MSPs''), and non-SD/MSP swap counterparties incur to
operate and maintain swap recordkeeping and reporting systems to
facilitate the recordkeeping and reporting of swaps.
Respondents/Affected Entities: SDRs, SEFs, DCMs, DCOs, SDs, MSPs,
and non-SD/MSP swap counterparties.
Estimated Number of Respondents: 30,210.
Estimated Total Annual Burden on Respondents: 562,945 hours.
Estimated Total Annual Cost: $99,462,062.
Frequency of Collection: Ongoing.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: October 21, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-25925 Filed 10-25-16; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: October 26, 2016