2023-24875
[Federal Register Volume 88, Number 217 (Monday, November 13, 2023)]
[Notices]
[Pages 77562-77563]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24875]
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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 December 13, 2023.
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. 3038-0092, 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.
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\1\ 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: Catherine Brescia, Attorney Advisor,
Market Participants Division, Commodity Futures Trading Commission,
(202) 418-6236; email: [email protected], and refer to OMB Control No.
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3038-0092.
SUPPLEMENTARY INFORMATION:
Title: Customer Clearing Documentation and Timing of Acceptance for
Clearing (OMB Control No. 3038-0092). This is a request for extension
of a currently approved information collection.
Abstract: Section 4d(c) of the Commodity Exchange Act (``CEA''), as
amended by the Dodd-Frank Wall Street Reform and Consumer Protection
Act (``Dodd-Frank Act''), directs the Commission to require futures
commission merchants (``FCMs'') to implement conflict of interest
procedures that address such issues as the Commission determines to be
appropriate. Similarly, section 4s(j)(5) of the CEA, as added by the
Dodd-Frank Act, requires swap dealers (``SDs'') and major swap
participants (``MSPs'') to
[[Page 77563]]
implement conflict of interest procedures that address such issues as
the Commission determines to be appropriate. Section 4s(j)(5) also
requires SDs and MSPs to ensure that any persons providing clearing
activities or making determinations as to accepting clearing customers
are separated by appropriate informational partitions from persons
whose involvement in pricing, trading, or clearing activities might
bias their judgment or contravene the core principle of open access.
Section 4s(j)(6) of the CEA prohibits a SD or MSP from adopting any
process or taking any action that results in any unreasonable restraint
on trade or imposes any material anticompetitive burden on trading or
clearing, unless necessary or appropriate to achieve the purposes of
the Act. Section 2(h)(1)(B)(ii) of the CEA requires that derivatives
clearing organization (``DCO'') rules provide for the nondiscriminatory
clearing of swaps executed bilaterally or through an unaffiliated
designated contract market or swap execution facility.
To address these provisions, the Commission promulgated regulations
that prohibit arrangements involving FCMs, SDs, MSPs, and DCOs that
would (a) disclose to an FCM, SD, or MSP the identity of a customer's
original executing counterparty (Sec. Sec. 1.72(a), 23.608(a), and
39.12(a)(1)(vi)); (b) limit the number of counterparties with whom a
customer may enter into a trade (Sec. Sec. 1.72(b), 23.608(b), and
39.12(a)(1)(vi)); (c) restrict the size of the position a customer may
take with any individual counterparty, apart from an overall credit
limit for all positions held by the customer at the FCM (Sec. Sec.
1.72(c), 23.608(c), and 39.12(a)(1)(vi)); (d) impair a customer's
access to execution of a trade on terms that have a reasonable
relationship to the best terms available (Sec. Sec. 1.72(d),
23.608(d), and 39.12(a)(1)(vi)); or (e) prevent compliance with
specified time frames for acceptance of trades into clearing set forth
in 1.74(b), 23.610(b), or 39.12(b)(7) (Sec. Sec. 1.72(e), 23.608(e),
and 39.12(a)(1)(vi)). Additionally, the Commission requires, through
regulation 39.12(b)(7)(i)(B), DCOs to coordinate with clearing members
to establish prompt processing of trades. Regulations 1.74(a) and
23.610(a) require reciprocal coordination by FCMs, SDs, and MSPs that
are clearing members.
Under the above regulations, SDs, MSPs, FCMs, and DCOs are required
to develop and maintain written customer clearing documentation and
trade processing procedures. Maintenance of contracts, policies, and
procedures is prudent business practice. All SDs, MSPs, FCMs, and DCOs
maintain documentation consistent with these regulations. The
regulations are crucial both for effective risk management and for the
efficient operation of trading venues among SDs, MSPs, FCMs, and DCOs.
Each of these entities has a general recordkeeping obligation for these
requirements under the Commission's regulations (Sec. 39.20 for DCOs;
Sec. 23.606 for SDs and MSPs; and Sec. 1.73 for FCMs).
The information collection burden arising from the regulations
primarily is restricted to the costs associated with the affected
registrants' obligation to maintain records related to clearing
documentation between the customer and the customer's clearing member,
and trade processing procedures between DCOs and FCMs, SDs, and MSPs.
The information collection obligations are necessary to implement
certain provisions of the CEA, including ensuring that registrants
exercise effective risk management, and are also appropriate for the
efficient operation of trading venues among SDs, MSPs, FCMs, and DCOs.
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.\2\ On August 25, 2023, 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, 88 FR 58251 (``60-Day
Notice''). The Commission did not receive any comments on the 60-Day
Notice.
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\2\ 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8 (b)(3)(vi).
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Burden Statement: The respondent burden for this collection is
estimated to be as follows:
Estimated Number of Respondents: 180.
Estimated Average Burden Hours per Respondent: 40.
Estimated Total Annual Burden Hours: 7,200.
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: November 6, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-24875 Filed 11-9-23; 8:45 am]
BILLING CODE 6351-01-P