[Federal Register Volume 88, Number 128 (Thursday, July 6, 2023)]
[Pages 43085-43086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14248]

[[Page 43085]]



Agency Information Collection Activities: Notice of Intent To 
Extend Collection 3038-0079: Swap Dealer and Major Swap Participant 
Conflicts of Interest and Business Conduct Standards With 

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 renewal of a 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 a proposed extension of 
an existing collection of information, and to allow 60 days for public 
comment. This notice solicits comments on the information collections 
included in certain Commission's regulations, requiring swap dealers 
(``SDs'') and major swap participants (``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 

DATES: Comments must be submitted on or before September 5, 2023.

ADDRESSES: You may submit comments, identified by ``OMB Control No. 
3038-0079,'' by any of the following methods:
     Online: The CFTC Comments Portal, on the agency's website, 
is available at https://comments.cftc.gov. Select the ``Submit 
Comments'' link for this rulemaking and follow the instructions on the 
Public Comment Form.
     Mail: Christopher Kirkpatrick, Secretary of the 
Commission, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW, Washington, DC 20581.
     Hand Delivery/Courier: Follow the same instructions as for 
Mail above.
    Please submit your comments using only one of these methods. 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, Special Counsel, 202-418-
5696, [email protected], Market Participants Division, Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW, 
Washington, DC 20581.

SUPPLEMENTARY INFORMATION: Under the PRA,\1\ 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 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 \2\ requires Federal agencies to 
provide a 60-day notice in the Federal Register concerning each 
proposed collection of information, including each proposed extension 
of 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 collection of information 
listed 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.\3\

    \1\ 44 U.S.C. 3501 et seq.
    \2\ 44 U.S.C. 3506(c)(2)(A).
    \3\ 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8 (b)(3)(vi).

    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 \4\ amended the Commodity Exchange 
Act (``CEA'') to add sections 4s(h) and 4s(j)(5) \5\, which provide the 
Commission with both mandatory and discretionary rulemaking authority 
to impose business conduct requirements on SDs and MSPs in their 
dealings with counterparties, including ``Special Entities,'' \6\ 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.\7\

    \4\ Dodd-Frank Act, Public Law 111-203, 124 Stat. 1376 (2010).
    \5\ 7 U.S.C. 6s(h) and (j)(5).
    \6\ 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 
    \7\ See section 4s(h)(3)(D) of the CEA, 7 U.S.C. 6s(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) 
of the CEA; 7 U.S.C. 6s(h)(1)(D), 6s(h)(5)(B) and 6s(h)(6).

    Accordingly, the Commission has adopted subpart H of part 23 of its 
regulations (``EBCS Rules'') \8\ and Sec.  23.605,\9\ 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.

    \8\ 17 CFR part 23, subpart H. Subpart H of part 23 (titled 
Business Conduct Standards for Swap Dealers and Major Swap 
Participants Dealing with Counterparties, Including Special 
Entities) 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 swap dealers acting as 
advisors to Special Entities); Sec.  23.450 (Requirements for swap 
dealers and major swap participants acting counterparties to Special 
Entities); and Sec.  23.451 (Political contributions by certain swap 
    \9\ 17 CFR 23.605. Section 23.605 is titled Conflicts of 
interest policies and procedures.

    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 

    \10\ Reporting under Sec.  23.451 (Political contributions by 
certain swap dealers) 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.

    With respect to the collection of information, the CFTC invites 
comments on:
     Whether the proposed collection of information is 
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 burden of 
the proposed collection 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 burden of collection of information 
on those who

[[Page 43086]]

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 
(``FOIA''), 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.\11\

    \11\ 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 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 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 FOIA.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection based on a decrease in the current number of 
Commission-registered SDs.\12\ The respondent burden for this 
collection is estimated to be as follows:

    \12\ Specifically, the change for the renewal is based solely on 
the decreased number of entities provisionally-registered with the 
Commission as SDs (109 at the last renewal in 2020 and 106, 
currently, as of June 7, 2023), as the annual total burden hours has 
remained the same--at 2,352.9 hours per respondent. And just as 
before, there are no entities currently registered as MSPs.

    Estimated Number of Respondents: 106.
    Estimated Average Burden Hours per Respondent: 2,352.9 hours.
    Estimated Total Annual Burden Hours: 249,412 hours.
    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: June 30, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-14248 Filed 7-5-23; 8:45 am]