[Federal Register Volume 87, Number 160 (Friday, August 19, 2022)]
[Pages 51065-51066]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-17840]



Agency Information Collection Activities: Notice of Intent To 
Revise Collection Number 3038-0088: Swap Documentation

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.


SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') is announcing an opportunity for public comment on the 
proposed revisions to the collection of certain information by the 
agency. Under the Paperwork Reduction Act (``PRA''), Federal agencies 
are required to publish notice in the Federal Register concerning each 
proposed collection of information, including each proposed revision of 
an existing collection of information, and to allow 60 days for public 
comment. This notice solicits comments on certain collections of 
information mandated by subpart I of part 23 of the Commission's 
Regulations (Swap Documentation).

DATES: Comments must be submitted on or before October 18, 2022.

ADDRESSES: You may submit comments, identified by ``Swap 
Documentation,'' and Collection Number 3038-0088 by any of the 
following methods:
     The Agency's website, at https://comments.cftc.gov/. 
Follow the instructions for submitting comments through the website.
     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.
    Please submit your comments using only one method. 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.

FOR FURTHER INFORMATION CONTACT: Dina Moussa, Attorney Advisor, Market 
Participants Division, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581, at (202) 
418-5696 or [email protected]

SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain 
approval from the Office of Management and Budget (``OMB'') for each 
collection of information they conduct or sponsor. ``Collection of 
Information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3

[[Page 51066]]

and includes agency requests or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
Section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3506(c)(2)(A), requires 
Federal agencies to provide a 60-day notice in the Federal Register 
concerning each proposed collection of information, including revisions 
to an existing collection of information, before submitting the 
collection to OMB for approval. To comply with this requirement, the 
CFTC is publishing notice of the proposed revision to an existing 
collection of information.\1\

    \1\ 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, 44 U.S.C. 3512, 5 CFR 
1320.5(b)(2)(i) and 1320.8(b)(3)(vi).

    Title: Swap Documentation (OMB Control No. 3038-0088).\2\ This is a 
request to revise a currently approved information collection.

    \2\ The collections of information under OMB control numbers 
3038-0068, 3038-0083, and 3038-0088 are now consolidated under OMB 
control number 3038-0088, and OMB control numbers 3038-0068 and 
3038-0083 have been withdrawn as of July 5, 2022. Concurrently with 
this change, the Commission has changed the name associated with OMB 
control number 3038-0088 to ``Swap Documentation''.

    Abstract: On September 11, 2012, the Commission adopted Commission 
Regulations 23.500-23.505 \3\ under sections 4s(f), (g) and (i) \4\ of 
the Commodity Exchange Act (``CEA''). Commission Regulations 23.500-
23.505 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, SDs 
and MSPs are obligated to maintain records of the policies and 
procedures required by the rules.\7\

    \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 Regulations 
23.203 and, by extension, 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. See 17 CFR 1.31 and 23.203.

    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 SD and MSP 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 also essential to ensuring that SDs and MSPs 
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. These collections of information are mandatory.
    In this particular instance, the Commission is revising its 
aggregate burden for this information collection by removing the burden 
hour estimate on cleared swap recordkeeping, as this subcategory was 
proposed but not finalized by the Commission and its burden estimate 
had been included erroneously under this information collection in 
previous renewals.\8\ Additionally, in light of the increased number of 
Commission-registered SDs and MSPs, the total number of respondents 
(combined SDs and MSPs) is being increased to 108. The overall burden 
hours for each remaining category within the information collection 
have increased proportionally, to reflect the increase in the number of 

    \8\ See 77 FR 55903 (Sept. 11, 2012) (The Commission has 
considered the commenters' recommendation to delete the clearing 
record provisions of Sec.  23.504(b)(6)(iii) and (iv) and agrees 
that there is no need to include in the trading documentation a 
record of the names of the clearing members for the SD, MSP, or 
counterparty. Once a swap is accepted for clearing, the identity of 
a counterparty's clearing member is no longer relevant and requiring 
such a record has the possibility to undermine the anonymity of 
central clearing. Therefore, those provisions have been deleted from 
the final rule. Similarly, Sec.  23.504(b)(6)(i) and (ii) have been 
removed because those records will be captured under the SD and MSP 
recordkeeping requirement, Sec.  23.201(a)(3), and the Commission 
believes those records are sufficient.).

    With respect to the collections of information, the CFTC invites 
comments on:
     Whether the proposed collections of information are 
necessary for the proper performance of the functions of the 
Commission, including whether the information will have a practical 
     The accuracy of the Commission's estimate of the burdens 
of the proposed collections of information, including the validity of 
the methodology and assumptions used;
     Ways to enhance the quality, usefulness, and clarity of 
the information to be collected; and
     Ways to minimize the burdens of collection of information 
on those who are to respond, including through the use of appropriate 
automated electronic, mechanical, or other technological collection 
techniques or other forms of information technology; e.g., permitting 
electronic submission of responses.
    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, 
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.\9\

    \9\ 17 CFR 145.9.

    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 http://www.cftc.gov that it may deem to be 
inappropriate for publication, for reasons such as obscene language. 
All submissions that have been redacted or removed that contain 
comments on the merits of the information collection request 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.
    Burden Statement: Based on the proposed revisions to the estimated 
aggregate burden as discussed above, the respondent burden for the 
collection is estimated to be as follows:

 OMB Control No. 3038-0088 (Swap Documentation)

    Number of Registrants: 108.
    Estimated Average Burden Hours per Registrant: 7,324.5.
    Estimated Aggregate Burden Hours: 791,046.
    Frequency of Recordkeeping: As applicable.

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

    Dated: August 15, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-17840 Filed 8-18-22; 8:45 am]