Federal Register, Volume 85 Issue 186 (Thursday, September 24, 2020) 
[Federal Register Volume 85, Number 186 (Thursday, September 24, 2020)]
[Pages 60135-60137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21096]



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 Information and
Regulatory Affairs (OIRA), of 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 26, 2020.

ADDRESSES: Written comments and recommendations for the proposed
information collection should be submitted within 30 days of this
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by
selecting ``Currently under 30-day Review--Open for Public Comments''
or by using the website's search function. Comments can be entered
electronically by clicking on the ``comment'' button next to the
information collection on the ``OIRA Information Collections Under
Review'' page, or the ``View ICR--Agency Submission'' page. A copy of
the supporting statement for the collection of information discussed
herein may be obtained by visiting https://www.reginfo.gov/public/do/PRAMain.

[[Page 60136]]

    In addition to the submission of comments to https://Reginfo.gov as
indicated above, a copy of all comments submitted to OIRA may also be
submitted to the Commodity Futures Trading Commission (the
``Commission'' or ``CFTC'') by clicking on the ``Submit Comment'' box
next to the descriptive entry for OMB Control No. 3038-0079, at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
    Or by either of the following methods:
     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.
    All comments must be submitted in English, or if not, accompanied
by an English translation. Comments submitted to the Commission should
include 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.\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 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: Jacob Chachkin, Special Counsel,
Division of Swap Dealer and Intermediary Oversight, Commodity Futures
Trading Commission, (202) 418-5496; email: [email protected], and
refer to OMB Control No. 3038-0079.

    Title: Swap Dealer and Major Swap Participant Conflicts of Interest
and Business Conduct Standards with Counterparties (OMB Control No.
3038-0079). This is a request for an extension of a currently approved
information collection.
    Abstract: Section 731 of Title VII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act, Public Law 111-203,
124 Stat. 1376 (2010)) amended the Commodity Exchange Act (CEA) to add
sections 4s(h) and 4s(j)(5) (7 U.S.C. 6s(h) and (j)(5)) which provide
the Commission with both mandatory and discretionary rulemaking
authority to impose business conduct requirements on swap dealers (SDs)
and major swap participants (MSPs) in their dealings with
counterparties, including ``Special Entities,'' \2\ and require that
each SD and MSP implement conflicts of interest systems and procedures.
Congress granted the Commission broad discretionary authority to
promulgate business conduct requirements, as appropriate in the public
interest, for the protection of investors, or otherwise in furtherance
of the purposes of the CEA.\3\

    \2\ Such entities are generally defined to include Federal
agencies, States and political subdivisions, employee benefit plans
as defined under the Employee Retirement Income Security Act of 1974
(ERISA), governmental plans as defined under ERISA, and endowments.
    \3\ See CEA Section 4s(h)(3)(D) (Business conduct requirements
adopted by the Commission shall establish such other standards and
requirements as the Commission may determine are appropriate in the
public interest, for the protection of investors, or otherwise in
furtherance of the purposes of the CEA.); see also Sections
4s(h)(1)(D), 4s(h)(5)(B) and 4s(h)(6).

    Accordingly, the Commission has adopted Subpart H of Part 23 of its
regulations (EBCS Rules) and Commission regulation 23.605,\4\ requiring
SDs and MSPs to follow specified procedures and provide specified
disclosures in their dealings with counterparties, to adopt and
implement conflicts of interest procedures and disclosures, and to
maintain specified records related to those requirements.

    \4\ 17 CFR part 23, subpart H and 17 CFR 23.605. Subpart H of
Part 23 is titled ``Business Conduct Standards for Swap Dealers and
Major Swap Participants Dealing with Counterparties, Including
Special Entities.'' Subpart H includes the following provisions:
Sec.  23.400 (Scope); Sec.  23.401 (Definitions); Sec.  23.402
(General Provisions); Sec.  23.410 (Prohibition on fraud,
manipulation and other abusive practices); Sec.  23.430
(Verification of counterparty eligibility); Sec.  23.431
(Disclosures of material information); Sec.  23.432 (Clearing
disclosures); Sec.  23.433 (Communications--fair dealing); Sec. 
23.434 (Recommendations to counterparties--institutional
suitability; Sec.  23.440 (Requirements for SDs acting as advisors
to Special Entities); Sec.  23.450 (Requirements for SDs and MSPs
acting counterparties to Special Entities); and Sec.  23.451
(Political contributions by certain SDs). Sec.  23.605 is titled
Conflicts of interest policies and procedures.

    In addition, the Commission recently finalized certain exceptions
from the EBCS Rules for certain foreign swaps in Sec.  23.23(e).\5\ To
the extent a swap dealer or major swap participant avails itself of one
or more of these exceptions, when effective, Sec.  23.23(h)(1) imposes
information collection requirements in lieu of such requirements in the
EBCS Rules.\6\

    \5\ 17 CFR part 23.23(e). See Cross-Border Application of the
Registration Thresholds and Certain Requirements Applicable to Swap
Dealers and Major Swap Participants, 85 FR 56924 (Sep. 14, 2020).
    \6\ 17 CFR part 23.23(h)(1).

    The recordkeeping and third-party disclosure obligations imposed by
the regulations are essential to ensuring that SDs and MSPs develop and
maintain procedures and disclosures required by the CEA and Commission

    \7\ Reporting under Commission regulation 23.451 (Political
contributions by certain SDs) is optional and it is unknown how many
registrants, if any, will engage in such reporting and how much
burden, if any, will be incurred. Nevertheless, the Commission is
providing an estimate of the regulation's burden for purposes of the
PRA below.

    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 July 20, 2020, 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, 85 FR 43821 (``60-Day Notice''). The Commission
did not receive any relevant comment on the 60-Day Notice.
    Burden Statement: The Commission is revising its estimate of the
burden for this collection based on the current number of registered
SDs.\8\ The respondent burden for this collection is estimated to be as

    \8\ Specifically, the change for the renewal is based solely on
the increased number of entities registered as SDs (102 at the last
renewal in 2017 and 109 as of September 9, 2020), since the burden
hour per respondent remains the same, at approximately 2352.9 hours.
The total annual burden estimate in the 60-Day Notice was based on
107 registered SDs, but, as noted above, this number has increased
to 109. (And just as before, there are no entities currently
registered as MSPs.)

    Estimated Number of Respondents: 109.
    Estimated Average Burden Hours per Respondent: 2352.9 hours.\9\

    \9\ The Commission expects the paperwork burden of Sec. 
23.23(h)(1), where applicable, in relation to exceptions from the
EBCS Rules in Sec.  23.23(e) would be less than that of the EBCS
Rules. However, in an effort to be conservative, because the
Commission does not know how many swap dealers and/or major swap
participants will choose to avail themselves of the exceptions in
Sec.  23.23(e) and for how many of their swaps, the Commission is
not reducing the estimated burden of these rules to reflect the
availability of such exceptions.

    Estimated Total Annual Burden Hours: 256,470 hours.\10\

    \10\ The total annual burden estimated in the 60-Day Notice, at
251,765 hours, was based on 107 entities registered as SDs. (See
also fn.8.) Since this number has increased to 109, the current
total annual burden, at 256,470 hours, reflects this increase.


[[Page 60137]]

    Frequency of Collection: Ongoing.
    There are no capital costs or operating and maintenance costs
associated with this collection.

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

    Dated: September, 21, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-21096 Filed 9-23-20; 8:45 am]