[Federal Register Volume 87, Number 81 (Wednesday, April 27, 2022)]
[Pages 24974-24975]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09019]



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 May 27, 2022.

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. 3038-0094, 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: Melissa A. D'Arcy, Special Counsel, 
Division of Clearing and Risk, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW, Washington, DC

[[Page 24975]]

20581; (202) 418-5086; email: [email protected]

    Title: Clearing Member Risk Management (OMB Control No. 3038-0094). 
This is a request for an 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) of the CEA 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 CEA. Risk management systems are critical to the 
avoidance of systemic risk.
    Section 4s(j)(2) of the CEA requires each Swap Dealer (``SD'') and 
Major Swap Participant (``MSP'') to have risk management systems 
adequate for managing its business. Section 4s(j)(4) of the CEA 
requires each SD and MSP to have internal systems and procedures to 
perform any of the functions set forth in Section 4s.
    Section 4d of the CEA requires Futures Commission Merchants 
(``FCMs'') to register with the Commission. It further requires FCMs to 
segregate customer funds. Section 4f of the CEA requires FCMs to 
maintain certain levels of capital and Section 4g of the CEA 
establishes reporting and recordkeeping requirements for FCMs.
    Pursuant to these provisions, the Commission adopted Commission 
regulation 1.73 which applies to clearing members that are FCMs and 
Commission regulation 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 each clearing member 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 quarter.
    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. On February 22, 2022, 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, 87 FR 9582 (``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 
burden for this collection to reflect the current number of respondents 
and estimated burden hours. The respondent burden for this collection 
is estimated to be as follows:
    Estimated Number of Respondents: 167 (108 Clearing Member Swap 
Dealers and 59 Clearing Member Futures Commission Merchants).
    Estimated Average Burden Hours per Respondent: 504 hours.
    Estimated Total Annual Burden Hours: 84,168 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 22, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-09019 Filed 4-26-22; 8:45 am]