Federal Register, Volume 85 Issue 187 (Friday, September 25, 2020)
[Federal Register Volume 85, Number 187 (Friday, September 25, 2020)]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-21224]
COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities Under OMB Review
AGENCY: Commodity Futures Trading Commission.
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.
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. 3038-0091, 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: Mark Bretscher, Special Counsel,
Division of Swap Dealers and Intermediary Oversight, Commodity Futures
Trading Commission, (312) 596-0529; email: [email protected], and
refer to OMB Control No. 3038-0091.
Title: Disclosure and Retention of Certain Information Relating to
Cleared Swaps Customer Collateral (OMB Control No. 3038-0091). This is
a request for extension and revision of a currently approved
Abstract: Section 724(a) of the Dodd-Frank Wall Street Reform and
Consumer Protection Act, Public Law 111-023, 124 stat. 1376, amended
the Commodity Exchange Act (``CEA''), 7 U.S.C. 1 et seq., to add, as
section 4d(f) thereof, provisions concerning the protection of
collateral provided by a Cleared Swaps Customer to margin, guaranty, or
secure a swap cleared by or through a
derivatives clearing organization (``DCO''). Broadly speaking, in
cleared swaps transactions customers provide collateral to futures
commission merchants (``FCMs'') through whom they clear their
transactions. FCMs, in turn, may provide customer collateral to DCOs,
through which FCMs clear transactions for their customers. 17 CFR part
22 is intended to implement CEA section 4d(f). Several of the sections
of Part 22 require collections of information.
Section 22.2(g) requires each FCM with Cleared Swaps Customer
Accounts to compute daily the amount of Cleared Swaps Customer
Collateral on deposit in Cleared Swaps Customer Accounts, the amount of
such collateral required to be on deposit in such accounts and the
amount of the FCM's residual financial interest in such accounts. The
purpose of this collection of information is to help ensure that FCMs'
Cleared Swaps Customer Accounts are in compliance at all times with
statutory and regulatory requirements for such accounts.
Section 22.5(a) requires an FCM or DCO to obtain, from each
depository with which it deposits cleared swaps customer funds, a
letter acknowledging that such funds belong to the Cleared Swaps
Customers of the FCM, and not the FCM itself or any other person. The
purpose of this collection of information is to confirm that the
depository understands its responsibilities with respect to protection
of cleared swaps customer funds.
Section 22.11 requires each FCM that intermediates cleared swaps
for customers on or subject to the rules of a DCO, whether directly as
a clearing member or indirectly through a Collecting FCM, to provide
the DCO with information sufficient to identify each customer of the
FCM whose swaps are cleared by the FCM. Section 22.11 also requires the
FCM, at least once daily, to provide the DCO with information
sufficient to identify each customer's portfolio of rights and
obligations arising out of cleared swaps intermediated by the FCM. The
purpose of this collection of information is to facilitate risk
management by DCOs in the event of default by the FCM, to enable DCOs
to perform their duty, pursuant to section 22.15, to treat the
collateral attributed to each customer of the FCM on an individual
Section 22.12 requires that each DCO and FCM, on a daily basis,
calculate, based on information received pursuant to section 22.11 and
on information generated and used in the ordinary course of business by
the DCO or FCM, and record certain information about the amount of
collateral required for each Cleared Swaps Customer and the sum of
these amounts. As with section 22.11, the purpose of this collection of
information is to facilitate risk management by DCOs and in the event
of default by the FCM, to enable DCOs to perform their duty, pursuant
to section 22.15, to treat the collateral attributed to each customer
of the FCM on an individual basis.
Section 22.16 requires that each FCM who has Cleared Swaps
Customers disclose to each of such customers the governing provisions,
as established by DCO rules or customer agreements between collecting
and depositing FCMs, relating to use of customer collateral, transfer,
neutralization of the risks, or liquidation of cleared swaps in the
event of a default by a Depositing FCM relating to a Cleared Swaps
Customer Account. The purpose of this collection of information is to
ensure that Cleared Swaps Customers are informed of the procedures to
which accounts containing their swaps collateral may be subject in the
event of a default by their FCM.
Section 22.17 requires that each FCM produce a written notice of
the reasons and the details concerning withdrawals from a Cleared Swaps
Customers Account not for the benefit of Cleared Swap Customers if such
withdrawal will exceed 25% of the FCMs residual interest in such
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 17, 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 43547 (``60-Day Notice'') The Commission
did not receive any comments on the 60-Day Notice.
Burden Statement: The Commission is revising its estimate of the
burden for this collection for 78 respondents (63 FCMs and 15 DCOs).
The respondent burden for this collection is estimated to be as
Estimated Number of Respondents: 78.
Estimated Average Burden Hours per Respondent: 331.
Estimated Total Annual Burden Hours: 25,890.
Frequency of Collection: Section 22.2(g)--Daily.
Section 22.17--On occasion.
Authority: 44 U.S.C. 3501 et seq.
Dated: September 22, 2020.
Deputy Secretary of the Commission.
[FR Doc. 2020-21224 Filed 9-24-20; 8:45 am]
BILLING CODE 6351-01-P