Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0091: Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral, 43547-43548 [2020-15466]

Agencies

• Commodity Futures Trading Commission

[Federal Register Volume 85, Number 138 (Friday, July 17, 2020)]
[Notices]
[Pages 43547-43548]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15466]



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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Extend Collection 3038-0091: Disclosure and Retention of Certain 
Information Relating to Cleared Swaps Customer Collateral

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (CFTC) 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 proposed extension of an existing collection of 
information, and to allow 60 days for public comment. This notice 
solicits comments on proposed extension of the existing collection of 
information relating to Cleared Swaps Customer Collateral.

DATES: Comments must be submitted on or before September 15, 2020.

ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0091 by any of the following methods:
     The Agency's Website, at https://comments.cftc.gov/. Follow 
the instructions for submitting comments through the website.
     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.
    Please submit your comments using only one method and identify that 
it is for the renewal of Collection Number 3038-0091. 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: Mark Bretscher, Special Counsel, 
Division of Swap Dealers and Intermediary Oversight, Commodity Futures 
Trading Commission, (312) 353-0529; email: [email protected].

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq., 
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 extension of an existing 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.
    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: Section 724(a) of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act, Public Law 111-023, 124 stat. 1376, amended 
the Commodity Exchange Act (``CEA''), 7 U.S.C. 1 et seq., to add, as 
section 4d(f) thereof, provisions concerning the protection of 
collateral provided by a Cleared Swaps Customer to margin, guaranty, or 
secure a swap cleared by or through a derivatives clearing organization 
(``DCO''). Broadly speaking, in cleared swaps transactions customers 
provide collateral to futures commission merchants (``FCMs'') through 
whom they clear their transactions. FCMs, in turn, may provide customer 
collateral to DCOs, through which FCMs clear transactions for their 
customers. 17 CFR part 22 is intended to implement CEA section 4d(f). 
Several of the sections of Part 22 require collections of information.
    Section 22.2(g) requires each FCM with Cleared Swaps Customer 
Accounts to compute daily the amount of Cleared Swaps Customer 
Collateral on deposit in Cleared Swaps Customer 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. The 
purpose of this collection of information is to help ensure that FCMs' 
Cleared Swaps Customer Accounts are in compliance at all times with 
statutory and regulatory requirements for 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 of the FCM, and not the FCM itself or any other person. The 
purpose of this collection of information is to confirm that the 
depository understands its responsibilities with respect to protection 
of cleared swaps customer funds.
    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, to provide 
the DCO 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 with information 
sufficient to identify each customer's portfolio of rights and 
obligations arising out of cleared swaps intermediated by the FCM. The 
purpose of this collection of information is to facilitate risk 
management by DCOs in the event of default by the FCM, to enable DCOs 
to perform their duty, pursuant to section 22.15, to treat the 
collateral attributed to each customer of the FCM on an individual 
basis.
    Section 22.12 requires that each DCO and FCM, on a daily basis, 
calculate, based on information received pursuant to section 22.11 and 
on information generated and used in the ordinary course of business by 
the DCO or FCM, and record certain information about the amount of 
collateral required for each Cleared Swaps Customer and the sum of 
these amounts. As with section 22.11, the purpose of this collection of 
information is to facilitate risk management by DCOs and in the event 
of default by the FCM, to enable DCOs to perform their duty, pursuant 
to section 22.15, to treat the collateral attributed to each customer 
of the FCM on an individual basis.
    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 a default by a Depositing FCM relating to a Cleared Swaps 
Customer Account. The purpose of this collection of information is to 
ensure that Cleared Swaps Customers are informed of the procedures to 
which accounts containing their swaps collateral may be subject in the 
event of a default by their FCM.

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    Section 22.17 requires that each FCM produce a written notice of 
the reasons and the details concerning withdrawals from a 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.
    With respect to the collection of information, the CFTC invites 
comments on:
     Whether the proposed extension of 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.\1\
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    \1\ 17 CFR 145.9.
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    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.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection for 78 respondents (63 FCMs and 15 DCOs). 
The respondent burden for this collection is estimated to be as 
follows:
    Estimated Number of Respondents: 78.
    Estimated Average Burden Hours per Respondent: 331.
    Estimated Total Annual Burden Hours: 25,890.
    Frequency of Collection: Section 22.2(g)--Daily. Section 22.5(a)--
Once. Section 22.11--Daily. Section 22.12--Daily. Section 22.16--Once. 
Section 22.17--On occasion.
    There is no capital cost associated with this collection.

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

    Dated: July 14, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-15466 Filed 7-16-20; 8:45 am]
BILLING CODE 6351-01-P