Federal Register, Volume 84 Issue 72 (Monday, April 15, 2019) 
[Federal Register Volume 84, Number 72 (Monday, April 15, 2019)]
[Pages 15190-15191]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-07380]



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 burdens.

DATES: Comments must be submitted on or before May 15, 2019.

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 publication
of this notice, by either of the following methods. Please identify the
comments by ``OMB Control No. 3038-0094.''
     By email addressed to: OIRA [email protected] 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 (``CFTC'' or ``Commission'') by
any of the following methods. The copies sent to the Commission also
should refer to ``OMB Control No. 3038-0094.''
     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 website at http://comments.cftc.gov. Please follow the instructions for submitting
comments through the website.

[[Page 15191]]

    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 information of
the exempt information may be submitted according to the procedures
established in Sec.  145.9 of the Commission's regulations.\1\ 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 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.

    \1\ 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Jocelyn Partridge, Special Counsel,
Division of Clearing and Risk, Commodity Futures Trading Commission,
(202) 418-5926; email: [email protected].

    Title: Clearing Member Risk Management (OMB Control No. 3038-0094).
This is a request for extension of a currently approved information
    Abstract: Section 3(b) of the Commodity Exchange Act (``Act'' or
``CEA'') provides that one of the purposes of the Act is to ensure the
financial integrity of all transactions subject to the Act and to avoid
systemic risk. Section 8a(5) authorizes the Commission to promulgate
such regulations that it believes are reasonably necessary to
effectuate any of the provisions or to accomplish any of the purposes
of the Act. Risk management systems are critical to the avoidance of
systemic risks.
    Section 4s(j)(2) requires each Swap Dealer (``SD'') and Major Swap
Participant (``MSP'') to have risk management systems adequate for
managing its business. Section 4s(j)(4) requires each SD and MSP to
have internal systems and procedures to perform any of the functions
set forth in Section 4s.
    Section 4d requires FCMs to register with the Commodity Futures
Trading Commission (``Commission''). It further requires Futures
Commission Merchants (``FCMs'') to segregate customer funds. Section 4f
requires FCMs to maintain certain levels of capital. Section 4g
establishes reporting and recordkeeping requirements for FCMs.
    Pursuant to these provisions, the Commission adopted Sec.  1.73
which applies to clearing members that are FCMs and Sec.  23.609 which
applies to clearing members that are SDs or MSPs. These provisions
require these clearing members to have procedures to limit the
financial risks they incur as a result of clearing trades and liquid
resources to meet the obligations that arise. The regulations require
clearing members to: (1) Establish credit and market risk-based limits
based on position size, order size, margin requirements, or similar
factors; (2) use automated means to screen orders for compliance with
the risk-based limits; (3) monitor for adherence to the risk-based
limits intra-day and overnight; (4) conduct stress tests of all
positions in the proprietary account and all positions in any customer
account that could pose material risk to the futures commission
merchant at least once per week; (5) evaluate its ability to meet
initial margin requirements at least once per week; (6) evaluate its
ability to meet variation margin requirements in cash at least once per
week; (7) evaluate its ability to liquidate the positions it clears in
an orderly manner, and estimate the cost of the liquidation at least
once per month; and (8) test all lines of credit at least once per
    Each of these items has been observed by Commission staff as an
element of an existing sound risk management program at an SD, MSP, or
FCM. The Commission regulations require each clearing member to
establish written procedures to comply with this regulation and to keep
records documenting its compliance. The information collection
obligations imposed by the regulations are necessary to implement
certain provisions of the CEA, including ensuring that registrants
exercise effective risk management and for the efficient operation of
trading venues among SDs, MSPs, and FCMs.
    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.\2\ On November 14, 2018, 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, 83 FR 56828 (``60-Day
Notice''). The Commission did not receive any relevant comments.
Accordingly, it did not alter the burden estimates set forth in the 60-
Day Notice.

    \2\ The OMB control numbers for the CFTC's regulations were
published on December 30, 1981. See 46 FR 63035 (Dec. 30, 1981).

    Burden Statement: The respondent burden for this collection is
estimated to average 2 hours per response for an estimated annual
burden of 504 hours per respondent. This estimate includes the total
time, effort, or financial resources expended by persons to generate,
maintain, retain, disclose, or provide information to or for a federal
    Respondents/Affected Entities: Clearing member Swap Dealers, Major
Swap Participants, and Futures Commission Merchants.
    Estimated Number of Respondents: 166 (101 Clearing Member Swap
Dealers and 65 Clearing Member Futures Commission Merchants).
    Estimated Average Burden Hours per Respondent: 504.
    Estimated Total Annual Burden Hours: 83,664 hours.
    Frequency of Collection: As needed.
    There are no capital costs or operating and maintenance costs
associated with this collection.

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

    Dated: April 9, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-07380 Filed 4-12-19; 8:45 am]