2025-08066
[Federal Register Volume 90, Number 88 (Thursday, May 8, 2025)]
[Notices]
[Pages 19473-19475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08066]
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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 June 9, 2025.
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
[[Page 19474]]
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 (``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.\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 FOIA.
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\1\ 17 CFR 145.9, 74 FR 17395 (Apr. 15, 2009).
FOR FURTHER INFORMATION CONTACT: Catherine Brescia, Attorney Advisor,
Market Participants Division, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581;
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(202) 418-6236; email: [email protected].
SUPPLEMENTARY INFORMATION:
Title: Clearing Member Risk Management (OMB Control No. 3038-0094).
This is a request for an extension of a currently approved information
collection.
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 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.
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 day-to-day business. Section 4s(j)(4) of the
CEA requires each SD and MSP to have internal systems and procedures to
obtain any necessary information to perform any of the functions set
forth in Section 4s.
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.\2\ 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 obligations.
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\2\ 77 FR 21278 (Apr. 9, 2012).
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The regulations require clearing members, who are FCMs, SDs, or
MSPs to: (1) establish risk-based limits based on position size, order
size, margin requirements, or similar factors, and for FCMs, risk-based
limits must be established for the proprietary account and in each
customer account; (2) 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 under extreme but plausible
conditions of all positions at least once per week, and for FCMs, the
stress tests must be conducted for all positions in the proprietary
account and in each customer account that could pose material risk to
the FCM; (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, and for FCMs, the evaluation must
be done at least once per quarter and conducted for all positions in
the proprietary account and customer accounts; and (8) test all lines
of credit at least once per year.
Each of these items has been observed by Commission staff as an
element of an existing sound risk management program at an FCM, SD, or
MSP. The Commission regulations require each FCM, SD, or MSP clearing
member to establish written procedures to comply with these regulations
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 FCMs, SDs, and MSPs
that are clearing members, in order to maintain financial stability at
derivatives clearing organizations (``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.\3\ On February 4, 2025, 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, 90 FR 8927 (``60-Day
Notice''). The Commission did not receive any relevant comments on the
60-Day Notice.
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\3\ 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8(b)(3)(vi).
See also 46 FR 63035 (Dec. 30, 1981).
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Burden Statement: The Commission is not revising its estimate of
the burden for this collection, as the total number of respondents has
not changed. The respondent burden for this collection is estimated to
be as follows:
Estimated Number of Respondents: 167 (61 Clearing Member FCMs and
106 Clearing Member SDs).\4\
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\4\ The 60-Day Notice reflected an estimate of 168 respondents.
Based on this number of respondents, the Commission had previously
estimated that the annual burden hours for all respondents totaled
84,672. These estimates have been updated based on the most recent
available data on the total number of respondents as shown here.
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[[Page 19475]]
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: May 5, 2025.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2025-08066 Filed 5-7-25; 8:45 am]
BILLING CODE 6351-01-P