Agency Information Collection Activities: Notice of Intent To Renew Collection Number 3038-0078, Conflicts of Interest Policies and Procedures by Futures Commission Merchants and Introducing Brokers, 73732-73733 [2015-30047]

Download as PDF 73732 Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Notices 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. Title: Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants (OMB Control Nos. 3038–0068, 3038– 0083, 3038–0088). This is a request for an extension of currently approved information collections. Abstract: On September 11, 2012 the Commission adopted Commission regulations 23.500–23.505 (Confirmation, Portfolio Reconciliation, Portfolio Compression, and Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants) 1 under sections 4s(f), (g) and (i) 2 of the Commodity Exchange Act (‘‘CEA’’). Commission regulations 23.500–23.505 require, among other things, that swap dealers (‘‘SD’’) 3 and major swap participants (‘‘MSP’’) 4 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, swap dealers and major swap participants are obligated to maintain records of the policies and procedures required by the rules.5 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 swap dealer and major swap participant 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 essential to ensuring that 1 17 CFR 23.500–23.505. U.S.C. 6s(f),(g) & (i). 3 For the definition of SD, see section 1a(49) of the CEA and Commission regulation 1.3(ggg). 7 U.S.C. 1a(49) and 17 CFR 1.3(ggg). 4 For the definitions of MSP, see section 1a(33) of the CEA and Commission regulation 1.3(hhh). 7 U.S.C. 1a(33) and 17 CFR 1.3(hhh). 5 SDs and MSPs are required to maintain all records of policies and procedures in accordance with Commission regulation 1.31, including policies, procedures and models used for eligible master netting agreements and custody agreements that prohibit custodian of margin from rehypothecating, repledging, reusing, or otherwise transferring the funds held by the custodian. tkelley on DSK3SPTVN1PROD with NOTICES 27 VerDate Sep<11>2014 19:15 Nov 24, 2015 Jkt 238001 swap dealers and major swap participants 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. The collections of information are mandatory. 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. 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 use; • 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 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. 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. 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 § 145.9 of the Commission’s regulations.6 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 6 17 PO 00000 CFR 145.9. Frm 00035 Fmt 4703 Sfmt 4703 laws, and may be accessible under the Freedom of Information Act. 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: • OMB Control No. 3038–0068 (Confirmation, Portfolio Reconciliation, and Portfolio Compression Requirements for Swap Dealers and Major Swap Participants). Number of Registrants: 106. Estimated Average Burden Hours per Registrant: 1,282.5. Estimated Aggregate Burden Hours: 135,945. Frequency of Recordkeeping: As applicable. • OMB Control No. 3038–0083 (Orderly Liquidation Termination Provision in Swap Trading Relationship Documentation for Swap Dealers and Major Swap Participants). Number of Registrants: 106. Estimated Average Burden Hours per Registrant: 270. Estimated Aggregate Burden Hours: 28,620. Frequency of Recordkeeping: As applicable. • OMB Control No. 3038–0088 (Swap Trading Relationship Documentation Requirements for Swap Dealers and Major Swap Participants). Number of Registrants: 106. Estimated Average Burden Hours per Registrant: 6284. Estimated Aggregate Burden Hours: 135,945. Frequency of Recordkeeping: As applicable. There are no capital costs or operating and maintenance costs associated with this collection. (Authority: 44 U.S.C. 3501 et seq.) Dated: November 20, 2015. Robert N. Sidman, Deputy Secretary of the Commission. [FR Doc. 2015–30048 Filed 11–24–15; 8:45 am] BILLING CODE 6351–01–P COMMODITY FUTURES TRADING COMMISSION Agency Information Collection Activities: Notice of Intent To Renew Collection Number 3038–0078, Conflicts of Interest Policies and Procedures by Futures Commission Merchants and Introducing Brokers Commodity Futures Trading Commission. ACTION: Notice. AGENCY: E:\FR\FM\25NON1.SGM 25NON1 Federal Register / Vol. 80, No. 227 / Wednesday, November 25, 2015 / Notices 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 each proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments on the collections of information mandated by Commission regulation 1.71 (Conflicts of interest policies and procedures by futures commission merchants and introducing brokers). DATES: Comments must be submitted on or before January 25, 2016. ADDRESSES: You may submit comments, identified by ‘‘Conflicts of Interest Policies and Procedures by Futures Commission Merchants and Introducing Brokers,’’ and Collection Number 3038– 0078 by any of the following methods: • The Agency’s Web site, at https:// comments.cftc.gov/. Follow the instructions for submitting comments through the Web site. • 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. • Federal eRulemaking Portal: https:// www.regulations.gov/. Follow the instructions for submitting comments through the Portal. 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: Jacob Chachkin, Special Counsel, Division of Swap Dealer and Intermediary Oversight, Commodity Futures Trading Commission, (202) 418–5496, email: jchachkin@cftc.gov. 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 tkelley on DSK3SPTVN1PROD with NOTICES SUMMARY: 1 44 U.S.C. 3501 et seq. VerDate Sep<11>2014 19:15 Nov 24, 2015 Jkt 238001 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 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. Title: Conflicts of Interest Policies and Procedures by Futures Commission Merchants and Introducing Brokers (OMB Control No. 3038–0078). This is a request for an extension of a currently approved information collection. Abstract: On April 3, 2012, the Commission adopted Commission regulation 1.71 (Conflicts of interest policies and procedures by futures commission merchants and introducing brokers)2 pursuant to section 4d(c)3 of the Commodity Exchange Act (‘‘CEA’’). Commission regulation 1.71 requires generally that, among other things, futures commission merchants (‘‘FCM’’)4 and introducing brokers (‘‘IB’’)5 develop conflicts of interest procedures and disclosures, adopt and implement written policies and procedures reasonably designed to ensure compliance with their conflicts of interest and disclosure obligations, and maintain specified records related to those requirements.6 The Commission believes that the information collection obligations imposed by Commission regulation 1.71 are essential (i) to ensuring that FCMs and IBs develop and maintain the conflicts of interest systems, procedures and disclosures required by the CEA, and Commission regulations, and (ii) to the effective evaluation of these registrants’ actual compliance with the CEA and Commission regulations. 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. With respect to the collection of information, the CFTC invites comments on: • Whether the proposed collection of information is necessary for the proper 2 17 CFR 1.71. U.S.C. 6d(c). 4 For the definition of FCM, see section 1a(28) of the CEA and Commission regulation 1.3(p). 7 U.S.C. 1a(28) and 17 CFR 1.3(p). 5 For the definition of IB, see section 1a(31) of the CEA and Commission regulation 1.3(mm). 7 U.S.C. 1a(31) and 17 CFR 1.3(mm). 6 See 17 CFR 1.71. 37 PO 00000 Frm 00036 Fmt 4703 Sfmt 9990 73733 performance of the functions of the Commission, including whether the information will have a practical use; • 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 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 § 145.9 of the Commission’s regulations.7 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 the Freedom of Information Act. Burden Statement: The Commission is revising its estimate of the burden for this collection to reflect the current number of registered FCMs and IBs. Accordingly, the respondent burden for this collection is estimated to be as follows: Number of Registrants: 1,381. Estimated Average Burden Hours per Registrant: 44.5. Estimated Aggregate Burden Hours: 61,454.5. Frequency of Recordkeeping: As applicable. (Authority: 44 U.S.C. 3501 et seq.) Dated: November 20, 2015. Robert N. Sidman, Deputy Secretary of the Commission. [FR Doc. 2015–30047 Filed 11–24–15; 8:45 am] BILLING CODE 6351–01–P 7 17 CFR 145.9. E:\FR\FM\25NON1.SGM 25NON1

Agencies

Commodity Futures Trading Commission

[Federal Register Volume 80, Number 227 (Wednesday, November 25, 2015)]
[Notices]
[Pages 73732-73733]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-30047]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection Number 3038-0078, Conflicts of Interest Policies and 
Procedures by Futures Commission Merchants and Introducing Brokers

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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[[Page 73733]]

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 each proposed extension 
of an existing collection of information, and to allow 60 days for 
public comment. This notice solicits comments on the collections of 
information mandated by Commission regulation 1.71 (Conflicts of 
interest policies and procedures by futures commission merchants and 
introducing brokers).

DATES: Comments must be submitted on or before January 25, 2016.

ADDRESSES: You may submit comments, identified by ``Conflicts of 
Interest Policies and Procedures by Futures Commission Merchants and 
Introducing Brokers,'' and Collection Number 3038-0078 by any of the 
following methods:
     The Agency's Web site, at https://comments.cftc.gov/. 
Follow the instructions for submitting comments through the Web site.
     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.
     Federal eRulemaking Portal: https://www.regulations.gov/. 
Follow the instructions for submitting comments through the Portal.
    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: Jacob Chachkin, Special Counsel, 
Division of Swap Dealer and Intermediary Oversight, Commodity Futures 
Trading Commission, (202) 418-5496, email: jchachkin@cftc.gov.

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, 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 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.
---------------------------------------------------------------------------

    \1\ 44 U.S.C. 3501 et seq.
---------------------------------------------------------------------------

    Title: Conflicts of Interest Policies and Procedures by Futures 
Commission Merchants and Introducing Brokers (OMB Control No. 3038-
0078). This is a request for an extension of a currently approved 
information collection.
    Abstract: On April 3, 2012, the Commission adopted Commission 
regulation 1.71 (Conflicts of interest policies and procedures by 
futures commission merchants and introducing brokers)\2\ pursuant to 
section 4d(c)\3\ of the Commodity Exchange Act (``CEA''). Commission 
regulation 1.71 requires generally that, among other things, futures 
commission merchants (``FCM'')\4\ and introducing brokers (``IB'')\5\ 
develop conflicts of interest procedures and disclosures, adopt and 
implement written policies and procedures reasonably designed to ensure 
compliance with their conflicts of interest and disclosure obligations, 
and maintain specified records related to those requirements.\6\ The 
Commission believes that the information collection obligations imposed 
by Commission regulation 1.71 are essential (i) to ensuring that FCMs 
and IBs develop and maintain the conflicts of interest systems, 
procedures and disclosures required by the CEA, and Commission 
regulations, and (ii) to the effective evaluation of these registrants' 
actual compliance with the CEA and Commission regulations. 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\ 17 CFR 1.71.
    \3\ 7 U.S.C. 6d(c).
    \4\ For the definition of FCM, see section 1a(28) of the CEA and 
Commission regulation 1.3(p). 7 U.S.C. 1a(28) and 17 CFR 1.3(p).
    \5\ For the definition of IB, see section 1a(31) of the CEA and 
Commission regulation 1.3(mm). 7 U.S.C. 1a(31) and 17 CFR 1.3(mm).
    \6\ See 17 CFR 1.71.
---------------------------------------------------------------------------

    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 
use;
     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 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.\7\
---------------------------------------------------------------------------

    \7\ 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 the Freedom of Information Act.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection to reflect the current number of registered 
FCMs and IBs. Accordingly, the respondent burden for this collection is 
estimated to be as follows:
    Number of Registrants: 1,381.
    Estimated Average Burden Hours per Registrant: 44.5.
    Estimated Aggregate Burden Hours: 61,454.5.
    Frequency of Recordkeeping: As applicable.
(Authority:
    44 U.S.C. 3501 et seq.)

    Dated: November 20, 2015.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2015-30047 Filed 11-24-15; 8:45 am]
BILLING CODE 6351-01-P

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