2019-14052
[Federal Register Volume 84, Number 127 (Tuesday, July 2, 2019)]
[Notices]
[Pages 31579-31580]
From the Federal Register Online via the Government Publishing Office
[www.gpo.gov]
[FR Doc No: 2019-14052]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Renew Collection Numbers 3038-0068 and 3038-0083: Confirmation,
Portfolio Reconciliation, Portfolio Compression, and Swap Trading
Relationship Documentation Requirements for Swap Dealers and Major Swap
Participants
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 1, 2019.
ADDRESSES: You may submit comments, identified by ``Confirmation,
Portfolio Reconciliation, Portfolio Compression, and Swap Trading
Relationship Documentation Requirements for Swap Dealers and Major Swap
Participants,'' and Collection Numbers 3038-0068 and 3038-0083, by
either of the following methods. Please identify the comments by ``OMB
Control Nos. 3038-0068 and 3038-0083'':
By email addressed to: [email protected]; or
By mail addressed to: 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 one of the
following methods. The copies should refer to ``OMB Control No. 3038-
0068 and 3038-0083.''
Through the Commission's website at https://comments.cftc.gov. Please
follow the instructions for submitting
comments through the website;
By mail addressed 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 to the same address as specified
for mail.
[[Page 31580]]
Please submit your comments to the Commission using only one
method. 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
https://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 (FOIA), 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 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 https://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 applicable laws, and may be
accessible under the FOIA.
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\1\ 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: Gregory Scopino, Special Counsel,
Division of Swap Dealer and Intermediary Oversight, Commodity Futures
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Trading Commission, (202) 418-5175; email: [email protected].
SUPPLEMENTARY INFORMATION:
Title: Confirmation, Portfolio Reconciliation, Portfolio
Compression, and Swap Trading Relationship Documentation Requirements
for Swap Dealers and Major Swap Participants (OMB Control Nos. 3038-
0068 and 3038-0083).\2\ This is a request for an extension of currently
approved information collections.
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\2\ Historically, PRA Collections 3038-0068, 3038-0083, and
3038-0088, which impose interrelated requirements, were renewed as a
consolidated collection. See 81 FR 6241 (Feb. 5, 2016). However, on
April 1, 2019, the CFTC published an interim final rule (IFR), which
allows uncleared swaps to retain its legacy status when transferred
in connection with a no-deal Brexit. See 84 FR 12233. This IFR
directly affects the calculation of burdens in PRA Collection 3038-
0088. Accordingly, the proposed renewal now treats collections 3038-
0068 and 3038-0083 as a consolidated collection, with collection
3038-0088 being considered separately.
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Abstract: On September 11, 2012 the Commission adopted Commission
regulations 23.500-23.505 (Confirmation, Portfolio Reconciliation,
Portfolio Compression, and Swap Trading Relationship Documentation
Requirements for Swap Dealers and Major Swap Participants) \3\ under
sections 4s(f), (g) and (i) \4\ of the Commodity Exchange Act
(``CEA''). The regulations require, among other things, that swap
dealers (``SDs'') \5\ and major swap participants (``MSPs'') \6\
develop and retain written swap trading relationship documentation. The
regulations also establish requirements for SDs and MSPs regarding swap
confirmation, portfolio reconciliation, and portfolio compression.
Under the regulations, swap dealers and major swap participants are
obligated to maintain records of the policies and procedures required
by the rules.\7\
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\3\ 17 CFR 23.500-23.505.
\4\ 7 U.S.C. 6s(f), (g) & (i).
\5\ For the definition of SD, see Section 1a(49) of the CEA and
Commission regulation 1.3, 7 U.S.C. 1a(49) and 17 CFR 1.3.
\6\ For the definitions of MSP, see Section 1a(33) of the CEA
and Commission regulation 1.3, 7 U.S.C. 1a(33) and 17 CFR 1.3.
\7\ SDs and MSPs are required to maintain all records of
policies and procedures in accordance with Commission regulation
1.31, including policies, procedures and models used for eligible
master netting agreements and custody agreements that prohibit
custodian of margin from re-hypothecating, repledging, reusing, or
otherwise transferring the funds held by the custodian.
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Confirmation, portfolio reconciliation, and portfolio compression
are important post-trade processing mechanisms for reducing risk and
improving operational efficiency. The information collection
obligations imposed by the regulations are necessary to ensure that
each swap dealer and major swap participant maintains the required
records of their business activities and an audit trail sufficient to
conduct comprehensive and accurate trade reconstruction. The
information collections contained in the regulations are essential to
ensuring that swap dealers and major swap participants document their
swaps, reconcile their swap portfolios to resolve discrepancies and
disputes, and wholly or partially terminate some or all of their
outstanding swaps through regular portfolio compression exercises. The
collections of information are mandatory.
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 1, 2019, 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, 84 FR 18521 (``60-Day Notice''). The Commission
did not receive any relevant comments on the 60-Day Notice.
Burden Statement: The Commission is revising its estimate of the
burdens for the collections to reflect the current number of
respondents and estimated burden hours. The respondent burdens for the
collections are estimated to be as follows:
OMB Control No. 3038-0068 (Confirmation, Portfolio
Reconciliation, and Portfolio Compression Requirements for Swap Dealers
and Major Swap Participants)
Number of Registrants: 101.
Estimated Average Burden Hours per Registrant: 1,274.5.
Estimated Aggregate Burden Hours: 128,724.5.
Frequency of Recordkeeping: As applicable.
OMB Control No. 3038-0083 (Orderly Liquidation Termination
Provision in Swap Trading Relationship Documentation for Swap Dealers
and Major Swap Participants)
Number of Registrants: 101.
Estimated Average Burden Hours per Registrant: 270.
Estimated Aggregate Burden Hours: 27,270.
Frequency of Recordkeeping: As applicable.
Authority: 44 U.S.C. 3501 et seq.
Dated: June 26, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-14052 Filed 7-1-19; 8:45 am]
BILLING CODE 6351-01-P