2021-04667
Federal Register, Volume 86 Issue 43 (Monday, March 8, 2021)
[Federal Register Volume 86, Number 43 (Monday, March 8, 2021)]
[Notices]
[Pages 13341-13343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04667]
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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 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 April 7, 2021.
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. 3038-0070, at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
Or by either of the following methods:
Mail: Christopher Kirkpatrick, Secretary of the
Commission,
[[Page 13342]]
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.
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\1\ 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: Meghan Tente, Division of Data,
Commodity Futures Trading Commission, (202) 418-5785, email:
_____________________________________-
[email protected], and refer to OMB Control No. 3038-0070.
SUPPLEMENTARY INFORMATION:
Title: Real Time Public Reporting and Block Trades (OMB Control No.
3038-0070). This is a request for comment on revision of a currently
approved information collection.
Abstract: The collection of information is needed to ensure that
swap data repositories publicly disseminate swap data as required by
the Commodity Exchange Act, as amended by the Dodd-Frank Wall Street
Reform and Consumer Protection Act (``Dodd-Frank Act'').\2\ The Dodd-
Frank Act directed the CFTC to adopt rules providing for the real-time
public reporting and dissemination of swap data and rules for block
trades.
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\2\ Public Law 111-203, 124 Stat. 1376 (2010).
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On September 17, 2020, the Commission adopted a rulemaking amending
its part 43 regulations.\3\ In the release accompanying the Final Rule,
the Commission included some cost and burden estimates that were not
included in the Proposal, including changes to some of its previous
estimates.\4\ The Commission explains these cost and burden estimates
further below.
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\3\ The Commission proposed the amendments to part 43 in
February 2020. Real-Time Public Reporting Requirements, 85 FR 21516
(Apr. 17, 2020) (the ``Proposal''). The final rule was published in
the Federal Register, 85 FR 75422 (Nov. 25, 2020) (the ``Final
Rule'').
\4\ In the Final Rule, the Commission revised the information
collection to reflect the adoption of amendments to part 43,
including changes to reflect adjustments that were made to the Final
Rule in response to comments on the Proposal (not relating to PRA).
In the Proposal, the Commission omitted the aggregate reporting
burden for proposed Sec. 43.3 and Sec. 43.4 in the preamble and
instead provided PRA estimates for all of part 43. In the Final
Rule, the Commission included PRA estimates for final Sec. 43.3 and
Sec. 43.4 which are set forth below. In addition, in the Final
Rule, the Commission revised the information collection to include
burden estimates for one-time costs that SDRs, SEFs, DCMs, and
reporting counterparties could incur to modify their systems to
adopt the changes to part 43, as well as burden estimates for these
entities to perform any annual maintenance or adjustments to
reporting systems related to the changes. These estimates are also
set forth below. The Commission did not include PRA estimates for
all of part 43 in the Final Rule preamble as the Final Rule only
affects PRA estimates for Sec. 43.3 and Sec. 43.4. However, PRA
estimates for all of part 43 were included in the supporting
statement being filed with OMB in connection with the Final Rule
(excluding estimates related to the Commission's block trade
regulation, as the block trade regulation is not affected by the
final rulemaking).
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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 December 2, 2020, the Commission
published in the Federal Register notice of the proposed revision of
this information collection (including estimated costs related to the
modification or maintenance of systems in order to be in compliance
with the amendments to Sec. 43.3 that were adopted in the Final Rule),
and provided 60 days for public comment on the proposed revision, 85 FR
77437 (``60-Day Notice''). The Commission did not receive any comments
on the 60-Day Notice.
1. Amendments to Regulation 43.3
In the Proposal, the Commission omitted the aggregate reporting
burden for proposed Sec. 43.3 (as well as Sec. 43.4) and instead
provided PRA estimates for all of part 43. The Final Rule included the
estimated aggregate reporting burden for Sec. 43.3 as follows:
Estimated Number of Respondents: 1,729 SEFs, DCMs, and reporting
counterparties.
Estimated Number of Reports per Respondent: 2,998.
Average Number of Hours per Report: 0.067.
Estimated Gross Annual Reporting Burden: 725,696.
Existing Sec. 43.3 requires reporting counterparties to send swap
reports to swap data repositories (``SDRs'') as soon as technologically
practicable after execution. The Commission did not include any burden
estimates in the Proposal related to the modification or maintenance of
systems in order to be in compliance with the proposed amendments to
Sec. 43.3.\5\ However, for the Final Rule, the Commission recognized
certain entities would incur start-up costs to modify their reporting
systems and operational costs to maintain them going forward to adopt
the changes to Sec. 43.3 \6\ in the Final Rule, as explained below.
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\5\ The supporting statement for part 43 submitted for the
Proposal only showed negative incremental changes in Attachment A
(e.g., showed a negative adjustment of 30,300 responses and negative
2,030.10 burden hours).
\6\ The Commission did not include any burden estimates in the
Final Rule related to the modification or maintenance of systems in
order to be in compliance with the amendments to Sec. 43.4. To
avoid double-counting, the Commission included the costs associated
with updates to Sec. 43.4 in the estimates for Sec. 43.3, as they
would be captured in the costs of updating systems based on the list
of swap data elements in part 43.
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In the Final Rule, the Commission estimated the cost for a
reporting entity, including designated contracts markets (``DCMs''),
derivatives clearing organizations (``DCOs''), major swap participants
(``MSPs''), swap dealers (``SDs''), non-SD/MSP/DCO counterparties, and
swap execution facilities (``SEFs''), to modify their systems and
maintain those modifications going forward to adopt the Final Rule
could range from $24,000 to $74,000 per entity. There are an estimated
1,732 reporting entities, for a total estimated cost of $84,868,000.\7\
As described in the Final Rule, the estimated cost range is based on a
number of assumptions that cover tasks required to design, test, and
implement an updated data system based on the new swap data elements
contained in part 43.
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\7\ Based on the Commission's eight years of experience in
administering the existing-real time reporting regulation, the
Commission believes that the costs to reporting entities to
implement the Final Rule will be on the lower end of the range,
closer to $24,000 than to $74,000.
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In the Final Rule, the Commission further estimated that the cost
for an SDR to modify their systems, including their data reporting,
ingestion, and validation systems, and maintain those modifications
going forward may range from $144,000 to $510,000 per SDR. There are
currently three SDRs, for an estimated total cost of $981,000.\8\
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\8\ As described in the Final Rule, the estimated cost ranges
are based on a number of assumptions that cover the set of tasks
required for the SDR to design, test, and implement an updated data
system based on the new swap data elements contained in part 43.
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[[Page 13343]]
2. Amendments to Regulation 43.4
In the Final Rule, the Commission estimated that the amendments
would reduce the number of mirror swaps SDRs would need to publicly
disseminate by 100 reports per each SDR, for an aggregate burden hour
reduction of 20.10 hours. In addition, the Commission estimated that
the aggregate reporting burden total for Sec. 43.4, as adjusted for
the reduction in reporting by SDRs of mirror swaps, is as follows:
Estimated Number of Respondents: 3.
Estimated Number of Reports per Respondent: 1,499,900.
Average Number of Hours per Report: 0.009.
Estimated Gross Annual Reporting Burden: 40,497.
The Commission did not include any burden estimates in the Proposal
related to the modification or maintenance of systems in order to be in
compliance with the proposed amendments to Sec. 43.4. To avoid double-
counting, the Commission included the costs associated with updates to
Sec. 43.4 in the estimates for Sec. 43.3 discussed above, as they
would be captured in the costs of updating systems based on the list of
swap data elements in part 43.
Burden Statement: Provisions of CFTC Regulations 43.3, 43.4, and
43.6 result in information collection requirements within the meaning
of the PRA. With respect to the ongoing reporting and recordkeeping
burdens associated with swaps, the CFTC is revising its estimate of the
burden of this collection (excluding estimates related to the
Commission's block trade regulation, which is not affected by the final
rulemaking). The Commission believes that SDs, MSPs, SEFs, DCMs, DCOs,
and non-SD/MSP/DCO counterparties incur an annual time-burden of
771,831 hours. This time-burden represents a proportion of the burden
respondents incur to operate and maintain their swap data recordkeeping
and reporting systems. The respondent burden for this collection
(excluding estimates related to the Commission's block trade
regulation) is estimated to be as follows:
Respondents/Affected Entities: SDs, MSPs, and other counterparties
to a swap transaction (i.e., non-SD/MSP/DCO counterparties).
Estimated Number of Respondents: 1,732.
Estimated Average Burden Hours per Respondent: 445.
Estimated Total Annual Burden Hours: 771,831 hours.
Frequency of Collection: Ongoing.
Capital or Operating and Maintenance Costs: $85,849,000.\9\
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\9\ In the Proposal, the Commission omitted the aggregate
reporting burden for proposed Sec. 43.3 and Sec. 43.4 in the
preamble and instead provided PRA estimates for all of part 43
(excluding estimates related to the Commission's block trade
regulation, which is not affected by the final rulemaking). In the
Final Rule, the Commission included PRA estimates for final Sec.
43.3 and Sec. 43.4 in the preamble because these are the only
sections of part 43 affected by the final rulemaking. Attachment A
to the supporting statement for the Proposal only showed the changes
in the burden estimates for Sec. 43.3 and Sec. 43.4 for the
Proposal. For the Final Rule, the Commission revised Attachment A to
the supporting statement that was filed with OMB to include
aggregate burden estimates for all requirements in the collection
(excluding estimates related to the Commission's block trade
regulation, as the burden estimates for the block trade regulation
are not affected by the final rulemaking). In addition, in the Final
Rule, the Commission revised the information collection to include
burden estimates for one-time costs that SDRs, SEFs, DCMs, and
reporting counterparties could incur to modify their systems to
adopt the changes to part 43, as well as burden estimates for these
entities to perform any annual maintenance or adjustments to
reporting systems related to the changes. The estimates in the
supporting statements for the Final Rule are consistent with the
estimates shown in the Burden Statement above (e.g., the supporting
statement for the Final Rule reflects that there are 1,732
respondents and that the total annual number of burden hours across
all respondents is 771,831.)
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Authority: 44 U.S.C. 3501 et seq.
Dated: March 2, 2021.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2021-04667 Filed 3-5-21; 8:45 am]
BILLING CODE 6351-01-P