Agency Information Collection Activities Under OMB Review, 34933-34934 [2017-15767]

Download as PDF mstockstill on DSK30JT082PROD with NOTICES Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices Supporting statements. A copy of the supporting statements for the collection of information discussed herein may be obtained by visiting http://RegInfo.gov. Comment instructions. All comments must be submitted in English, or if not, accompanied by an English translation. Comments will be posted as received to http://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 (‘‘FOIA’’), 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, 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, 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 FOIA. Title: Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy (OMB Control No. 3038–0075). This is a request for an extension of a currently approved information collection. Abstract: On November 6, 2013, the Commission issued final rules implementing statutory provisions pursuant to Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (‘‘Dodd-Frank Act’’) and imposing requirements on swap dealers (‘‘SD’’) and major swap participants (‘‘MSP’’) with respect to the treatment of collateral posted by their counterparties to margin, guarantee, or secure uncleared swaps.1 Additionally, the final rule includes revisions to ensure that, for purposes of subchapter IV of chapter 7 of the Bankruptcy Code, securities held in a portfolio margining account that is a futures account or a Cleared Swaps Customer Account constitute ‘‘customer property’’; and owners of such accounts constitute ‘‘customers.’’ 2 Section 4s(l) of the Commodity Exchange Act (‘‘CEA’’) sets forth certain requirements concerning the rights of counterparties of SDs and 1 78 FR 66621 (Nov. 6, 2013). 2 Id. VerDate Sep<11>2014 19:17 Jul 26, 2017 Jkt 241001 MSPs with respect to the segregation of money, securities, or other property used to margin, guarantee, or otherwise secure uncleared swaps. Section 23.701 of the Commission’s regulations implements part of the new statutory requirements by specifying that certain information must be provided to counterparties about the terms and conditions of segregation, including price information, to the extent that the SD or MSP has such information, and the identity of one or more independent depositories for segregated collateral. Section 23.704 implements the requirements of CEA section 4s(l)(4), which dictates that, in certain circumstances, an SD or MSP must report to the counterparty, on a quarterly basis, ‘‘that the back office procedures of the swap dealer or major swap participant relating to margin and collateral requirements are in compliance with the agreement of the counterparties.’’ As discussed above, the rules establish reporting and recordkeeping requirements that are mandated by section 4s(l) of the CEA, which states that SDs and MSPs must notify their counterparties of the right to have their initial margin segregated and to maintain the confirmations and elections related to such notices as business records. The reporting and recordkeeping requirements are necessary to implement the objectives of section 4s(1). For example, the information received by uncleared swap counterparties pursuant to § 23.701 of the Commission’s regulations would alert counterparties to their statutory right, if they so choose, to have funds or property used as margin in uncleared swaps transactions with SDs and MSPs kept segregated from the property of the SD or MSP. Likewise, the information provided would further alert counterparties of the need to request such segregation if they wish to exercise this right. Similarly, the information received by uncleared swap counterparties pursuant to § 23.704 would be used to confirm that the back office procedures followed by a SD or MSP with whom they are dealing comply with the agreement of the parties. On May 12, 2017, the Commission published in the Federal Register a notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension. See 82 FR 22118 (May 12, 2017). The Commission received no relevant comments. Burden Statement: The Commission is revising its estimate of the burden for this collection to reflect the current PO 00000 Frm 00011 Fmt 4703 Sfmt 4703 34933 number of registered SDs and MSPs. Accordingly, the respondent burden for this collection is estimated to be as follows: Number of Registrants: 102. Estimated Average Burden Hours per Registrant: 3406. Estimated Aggregate Burden Hours: 347,412. Frequency of Recordkeeping: As applicable. Authority: 44 U.S.C. 3501 et seq. Dated: July 24, 2017. Christopher J. Kirkpatrick, Secretary of the Commission. [FR Doc. 2017–15857 Filed 7–26–17; 8:45 am] BILLING CODE 6351–01–P COMMODITY FUTURES TRADING COMMISSION Agency Information Collection Activities Under OMB Review Commodity Futures Trading Commission. ACTION: Notice. AGENCY: 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 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 August 28, 2017. ADDRESSES: Comments regarding the burden estimated or any other aspect of the information collection, including suggestions for reducing the burden, may be submitted directly to the Office of Information and Regulatory Affairs (‘‘OIRA’’) in OMB, within 30 days of the notice’s publication, by either of the following methods. Please identify the comments by OMB Control No. 3038– 0091. • By email addressed to: OIRAsubmissions@omb.eop.gov; or • By mail addressed to: Office of Information and Regulatory Affairs, Office of Management and Budget, Attention: Desk Officer for the Commodity Futures Trading Commission, 725 17th Street NW., Washington, DC 20503. A copy of all comments submitted to OIRA should be sent to the Commodity Futures Trading Commission (‘‘CFTC’’ or ‘‘Commission’’) by either of the following methods. The copies should refer to OMB Control No. 3038–0091. • By submission through the Commission’s Web site: http:// SUMMARY: E:\FR\FM\27JYN1.SGM 27JYN1 mstockstill on DSK30JT082PROD with NOTICES 34934 Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices comments.cftc.gov. Please follow the instructions for submitting comments through the Web site; • By mail addressed to: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; or • By hand delivery/courier to: the address listed above for submission by mail. FOR FURTHER INFORMATION CONTACT: Jacob Chachkin, Special Counsel, 202– 418–5496, email: jchachkin@cftc.gov; or Joshua Beale, Special Counsel, 202– 418–5446, email: jbeale@cftc.gov, both in the CFTC Division of Swap Dealer and Intermediary Oversight. SUPPLEMENTARY INFORMATION: Supporting statements. A copy of the supporting statements for the collection of information discussed herein may be obtained by visiting http://RegInfo.gov. Comment instructions. All comments must be submitted in English or, if not, accompanied by an English translation. Comments will be posted as received to http://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 (‘‘FOIA’’), 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, 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, 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 FOIA. Title: Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral (OMB Control No. 3038–0091). This is a request for an extension of a currently approved information collection. Abstract: Part 22 of the Commission’s regulations under the Commodity Exchange Act (‘‘CEA’’) establishes rules for the protection of customer collateral held by futures commission merchants (‘‘FCM’’) and derivatives clearing organizations (‘‘DCO’’) to serve as margin in cleared swaps transactions. VerDate Sep<11>2014 19:17 Jul 26, 2017 Jkt 241001 As part of this regulatory scheme, §§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16, and 22.17 impose recordkeeping and third-party disclosure requirements on FCMs and DCOs. In addition, § 22.13(c)(2) indirectly requires FCMs who post excess collateral with DCOs to perform certain computations regarding such collateral, although it is not expected to materially affect the total paperwork burden associated with Part 22. Section 22.2(g) requires each FCM with Cleared Swaps Customer Accounts 1 to, among other things, compute daily and report to the Commission the amount of Cleared Swaps Customer Collateral 2 on deposit in such accounts, the amount of such collateral required to be on deposit in such accounts and the amount of the FCM’s residual financial interest in such accounts. Section 22.5(a) requires an FCM or DCO to obtain, from each depository with which it deposits cleared swaps customer funds, a letter acknowledging that such funds belong to the Cleared Swaps Customers 3 of the FCM or DCO, and not the FCM, DCO, or any other person. Section 22.11 requires each FCM that intermediates cleared swaps for customers on or subject to the rules of a DCO, whether directly as a clearing member or indirectly through a Collecting FCM,4 to provide the DCO or the Collecting FCM, as appropriate, with information sufficient to identify each customer of the FCM whose swaps are cleared by the FCM. Section 22.11 also requires the FCM, at least once daily, to provide the DCO or the Collecting FCM, as appropriate, with information sufficient to identify each customer’s portfolio of rights and obligations arising out of cleared swaps intermediated by the FCM. Section 22.12 requires that each Collecting FCM and DCO, on a daily basis, calculate, based on information received pursuant to § 22.11 and on information generated and used in the ordinary course of business by the Collecting FCM or DCO, and record certain information about the amount of collateral required for each Cleared Swaps Customer and the sum of these amounts. Section 22.16 requires that each FCM who has Cleared Swaps Customers disclose to each of such customers the governing provisions, as established by DCO rules or customer agreements between collecting and depositing FCMs, relating to use of the definition of Cleared Swaps Customer Account, see 17 CFR 22.1. 2 Id. 3 Id. 4 Id. PO 00000 1 For Frm 00012 Fmt 4703 Sfmt 4703 customer collateral, transfer, neutralization of the risks, or liquidation of cleared swaps in the event of default by a Depositing FCM 5 relating to a Cleared Swaps Customer Account. Section 22.17 requires that FCM produce a written notice of the reasons and the details concerning withdrawals from Cleared Swaps Customers Account not for the benefit of Cleared Swap Customers if such withdrawal will exceed 25% of the FCMs residual interest in such account. The Commission believes that the information collection obligations imposed by Commission regulations in §§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16, and 22.17 are essential (i) to ensuring that FCMs and DCOs develop and maintain adequate customer protections and procedures over Cleared Swap Customer funds as required by the CEA, and Commission regulations, and (ii) to the effective evaluation of these registrants’ actual compliance with the CEA and Commission regulations. On April 24, 2017, the Commission published in the Federal Register a notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension. See 82 FR 18900 (April 24, 2017). The Commission received no comments. Burden Statement: The Commission is revising its estimate of the burden for this collection to reflect the current number of affected registrants. Accordingly, the respondent burden for this collection is estimated to be as follows: Number of Registrants: 68. Estimated Average Burden Hours per Registrant: 365. Estimated Aggregate Burden Hours: 24,820. Frequency of Recordkeeping: As applicable. Authority: 44 U.S.C. 3501 et seq. Dated: July 21, 2017. Christopher J. Kirkpatrick, Secretary of the Commission. [FR Doc. 2017–15767 Filed 7–26–17; 8:45 am] BILLING CODE 6351–01–P DEPARTMENT OF DEFENSE Office of the Secretary [Transmittal No. 16–84] Arms Sales Notification Defense Security Cooperation Agency, Department of Defense. ACTION: Arms sales notice. AGENCY: 5 Id. E:\FR\FM\27JYN1.SGM 27JYN1

Agencies

[Federal Register Volume 82, Number 143 (Thursday, July 27, 2017)]
[Notices]
[Pages 34933-34934]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-15767]


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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 
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 August 28, 2017.

ADDRESSES: Comments regarding the burden estimated or any other aspect 
of the information collection, including suggestions for reducing the 
burden, may be submitted directly to the Office of Information and 
Regulatory Affairs (``OIRA'') in OMB, within 30 days of the notice's 
publication, by either of the following methods. Please identify the 
comments by OMB Control No. 3038-0091.
     By email addressed to: OIRAsubmissions@omb.eop.gov; or
     By mail addressed to: Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention: Desk Officer for 
the Commodity Futures Trading Commission, 725 17th Street NW., 
Washington, DC 20503.
    A copy of all comments submitted to OIRA should be sent to the 
Commodity Futures Trading Commission (``CFTC'' or ``Commission'') by 
either of the following methods. The copies should refer to OMB Control 
No. 3038-0091.
     By submission through the Commission's Web site: http://

[[Page 34934]]

comments.cftc.gov. Please follow the instructions for submitting 
comments through the Web site;
     By mail addressed to: Christopher Kirkpatrick, Secretary 
of the Commission, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; or
     By hand delivery/courier to: the address listed above for 
submission by mail.

FOR FURTHER INFORMATION CONTACT: Jacob Chachkin, Special Counsel, 202-
418-5496, email: jchachkin@cftc.gov; or Joshua Beale, Special Counsel, 
202-418-5446, email: jbeale@cftc.gov, both in the CFTC Division of Swap 
Dealer and Intermediary Oversight.

SUPPLEMENTARY INFORMATION:
    Supporting statements. A copy of the supporting statements for the 
collection of information discussed herein may be obtained by visiting 
http://RegInfo.gov.
    Comment instructions. All comments must be submitted in English or, 
if not, accompanied by an English translation. Comments will be posted 
as received to http://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 (``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, 
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, 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 FOIA.
    Title: Disclosure and Retention of Certain Information Relating to 
Cleared Swaps Customer Collateral (OMB Control No. 3038-0091). This is 
a request for an extension of a currently approved information 
collection.
    Abstract: Part 22 of the Commission's regulations under the 
Commodity Exchange Act (``CEA'') establishes rules for the protection 
of customer collateral held by futures commission merchants (``FCM'') 
and derivatives clearing organizations (``DCO'') to serve as margin in 
cleared swaps transactions. As part of this regulatory scheme, 
Sec. Sec.  22.2(g), 22.5(a), 22.11, 22.12, 22.16, and 22.17 impose 
recordkeeping and third-party disclosure requirements on FCMs and DCOs. 
In addition, Sec.  22.13(c)(2) indirectly requires FCMs who post excess 
collateral with DCOs to perform certain computations regarding such 
collateral, although it is not expected to materially affect the total 
paperwork burden associated with Part 22.
    Section 22.2(g) requires each FCM with Cleared Swaps Customer 
Accounts \1\ to, among other things, compute daily and report to the 
Commission the amount of Cleared Swaps Customer Collateral \2\ on 
deposit in such accounts, the amount of such collateral required to be 
on deposit in such accounts and the amount of the FCM's residual 
financial interest in such accounts. Section 22.5(a) requires an FCM or 
DCO to obtain, from each depository with which it deposits cleared 
swaps customer funds, a letter acknowledging that such funds belong to 
the Cleared Swaps Customers \3\ of the FCM or DCO, and not the FCM, 
DCO, or any other person. Section 22.11 requires each FCM that 
intermediates cleared swaps for customers on or subject to the rules of 
a DCO, whether directly as a clearing member or indirectly through a 
Collecting FCM,\4\ to provide the DCO or the Collecting FCM, as 
appropriate, with information sufficient to identify each customer of 
the FCM whose swaps are cleared by the FCM. Section 22.11 also requires 
the FCM, at least once daily, to provide the DCO or the Collecting FCM, 
as appropriate, with information sufficient to identify each customer's 
portfolio of rights and obligations arising out of cleared swaps 
intermediated by the FCM. Section 22.12 requires that each Collecting 
FCM and DCO, on a daily basis, calculate, based on information received 
pursuant to Sec.  22.11 and on information generated and used in the 
ordinary course of business by the Collecting FCM or DCO, and record 
certain information about the amount of collateral required for each 
Cleared Swaps Customer and the sum of these amounts. Section 22.16 
requires that each FCM who has Cleared Swaps Customers disclose to each 
of such customers the governing provisions, as established by DCO rules 
or customer agreements between collecting and depositing FCMs, relating 
to use of customer collateral, transfer, neutralization of the risks, 
or liquidation of cleared swaps in the event of default by a Depositing 
FCM \5\ relating to a Cleared Swaps Customer Account. Section 22.17 
requires that FCM produce a written notice of the reasons and the 
details concerning withdrawals from Cleared Swaps Customers Account not 
for the benefit of Cleared Swap Customers if such withdrawal will 
exceed 25% of the FCMs residual interest in such account.
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    \1\ For the definition of Cleared Swaps Customer Account, see 17 
CFR 22.1.
    \2\ Id.
    \3\ Id.
    \4\ Id.
    \5\ Id.
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    The Commission believes that the information collection obligations 
imposed by Commission regulations in Sec. Sec.  22.2(g), 22.5(a), 
22.11, 22.12, 22.16, and 22.17 are essential (i) to ensuring that FCMs 
and DCOs develop and maintain adequate customer protections and 
procedures over Cleared Swap Customer funds as required by the CEA, and 
Commission regulations, and (ii) to the effective evaluation of these 
registrants' actual compliance with the CEA and Commission regulations. 
On April 24, 2017, the Commission published in the Federal Register a 
notice of the proposed extension of this information collection and 
provided 60 days for public comment on the proposed extension. See 82 
FR 18900 (April 24, 2017). The Commission received no comments.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection to reflect the current number of affected 
registrants. Accordingly, the respondent burden for this collection is 
estimated to be as follows:
    Number of Registrants: 68.
    Estimated Average Burden Hours per Registrant: 365.
    Estimated Aggregate Burden Hours: 24,820.
    Frequency of Recordkeeping: As applicable.

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

    Dated: July 21, 2017.
Christopher J. Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2017-15767 Filed 7-26-17; 8:45 am]
 BILLING CODE 6351-01-P