Proposed Agency Information Collection Activities; Comment Request, 23971-23973 [2021-09424]
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
confidential by the Board pursuant to
exemption 4 of the Freedom of
Information Act (‘‘FOIA’’).5 Some
survey responses may also contain
information contained in or related to
an examination of a financial
institution, which may be kept
confidential under exemption 8 of
FOIA.6 Responses to the FR 2023 are
tabulated and summarized at the Board
and the Federal Reserve Bank of New
York. This aggregate information is not
considered confidential, and a report
containing summary data is published
on the Board’s public website.7
Current actions: On February 3, 2021,
the Board published a notice in the
Federal Register (86 FR 8015)
requesting public comment for 60 days
on the extension, without revision, of
the Senior Financial Officer Surveys.
The comment period for this notice
expired on April 5, 2021. The Board did
not receive any comments.
Board of Governors of the Federal Reserve
System, April 29, 2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021–09466 Filed 5–4–21; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Agency Information Collection
Activities: Announcement of Board
Approval Under Delegated Authority
and Submission to OMB
Board of Governors of the
Federal Reserve System.
SUMMARY: The Board of Governors of the
Federal Reserve System (Board) is
adopting a proposal to extend for three
years, without revision, the Quarterly
Report of Assets and Liabilities of Large
Foreign Offices of U.S. Banks (FR 2502q;
OMB No. 7100–0079).
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, (202)
452–3829.
Office of Management and Budget
(OMB) Desk Officer—Shagufta Ahmed—
Office of Information and Regulatory
Affairs, Office of Management and
Budget, New Executive Office Building,
Room 10235, 725 17th Street NW,
Washington, DC 20503, or by fax to
(202) 395–6974.
AGENCY:
5 U.S.C. 552(b)(4).
5 U.S.C. 552(b)(8).
7 Survey reports are available at
www.federalreserve.gov/data/sfos/sfos.htm.
5
6
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On June
15, 1984, OMB delegated to the Board
authority under the PRA to approve and
assign OMB control numbers to
collections of information conducted or
sponsored by the Board. Boardapproved collections of information are
incorporated into the official OMB
inventory of currently approved
collections of information. The OMB
inventory, as well as copies of the PRA
Submission, supporting statements, and
approved collection of information
instrument(s) are available at https://
www.reginfo.gov/public/do/PRAMain.
These documents are also available on
the Federal Reserve Board’s public
website at https://www.federal
reserve.gov/apps/reportforms/
review.aspx or may be requested from
the agency clearance officer, whose
name appears above.
SUPPLEMENTARY INFORMATION:
Final Approval Under OMB Delegated
Authority of the Extension for Three
Years, Without Revision, of the
Following Information Collection
Report title: Quarterly Report of
Assets and Liabilities of Large Foreign
Offices of U.S. Banks.
Agency form number: FR 2502q.
OMB control number: 7100–0079.
Frequency: Quarterly.
Respondents: U.S. commercial banks,
bank holding companies (including
financial holding companies), and Edge
Act and agreement corporations.
Estimated number of respondents: 23.
Estimated average hours per response:
1.
Estimated annual burden hours: 92.
General description of report: U.S.
commercial banks, bank holding
companies, and Edge Act and agreement
corporations are required to file the FR
2502q reporting form, on a quarterly
basis, for their large branches (those that
have assets of $2 billion or more) and
banking subsidiaries (those that have
assets of $2 billion or more and deposits
of $10 million or more) that are located
in the United Kingdom or the
Caribbean. The Board has an interest in
knowing the amounts of the claims and
liabilities of U.S.-chartered banks with
respect to residents of individual
countries.
Legal authorization and
confidentiality: The Board is authorized
to collect the information in FR 2502q
from (1) bank holding companies
pursuant to section 5 of the Bank
Holding Company Act,1 which
authorizes the Board to require a bank
holding company and any subsidiary to
submit reports; (2) Edge Act and
agreement corporations pursuant to
sections 25(4) 25A(17) of the Federal
Reserve Act (FRA),2 which authorize the
Board to require Edge and agreement
corporations to make reports to the
Board; and (3) depository institutions
pursuant to sections 11(a)(1) and (2) of
the FRA,3 which authorize the Board to
require reports from each member bank
as it may deem necessary and to require
reports of liabilities and assets from
insured depository institutions to enable
the Board to discharge its responsibility
to monitor and control monetary and
credit aggregates.
The FR 2502q report is mandatory. To
the extent that the information from this
collection obtained by the Board
constitutes nonpublic commercial or
financial information, which is both
customarily and actually treated as
private by the financial institution, the
financial institution may request
confidential treatment pursuant to
exemption 4 of the Freedom of
Information Act.4
Current actions: On February 3, 2021,
the Board published a notice in the
Federal Register (86 FR 8014)
requesting public comment for 60 days
on the extension, without revision, of
the Quarterly Report of Assets and
Liabilities of Large Foreign Offices of
U.S. Banks. The comment period for
this notice expired on April 5, 2021.
The Board received one comment.
Detailed Discussion of Public
Comments
The U.S. Department of Commerce
Bureau of Economic Analysis provided
comment that it was in strong support
of the continued collection of the FR
2502q data.
Board of Governors of the Federal Reserve
System, April 29, 2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021–09460 Filed 5–4–21; 8:45 am]
BILLING CODE 6210–01–P
FEDERAL RESERVE SYSTEM
Proposed Agency Information
Collection Activities; Comment
Request
Board of Governors of the
Federal Reserve System.
ACTION: Notice, request for comment.
AGENCY:
The Board of Governors of the
Federal Reserve System (Board) invites
comment on a proposal to extend for
three years, with revision, the Report of
SUMMARY:
2 12
U.S.C. 602 and 12 U.S.C. 625.
U.S.C. 248(a)(1) and (2).
4 5 U.S.C. 552(b)(4).
3 12
1 12
PO 00000
U.S.C. 1844(c).
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
Selected Money Market Rates (FR 2420;
OMB No. 7100–0357).
DATES: Comments must be submitted on
or before July 6, 2021.
ADDRESSES: You may submit comments,
identified by FR 2420, by any of the
following methods:
• Agency Website: https://
www.federalreserve.gov/. Follow the
instructions for submitting comments at
https://www.federalreserve.gov/apps/
foia/proposedregs.aspx.
• Email: regs.comments@
federalreserve.gov. Include the OMB
number in the subject line of the
message.
• Fax: (202) 452–3819 or (202) 452–
3102.
• Mail: Ann E. Misback, Secretary,
Board of Governors of the Federal
Reserve System, 20th Street and
Constitution Avenue NW, Washington,
DC 20551.
All public comments are available
from the Board’s website at https://
www.federalreserve.gov/apps/foia/
proposedregs.aspx as submitted, unless
modified for technical reasons or to
remove personally identifiable
information at the commenter’s request.
Accordingly, comments will not be
edited to remove any identifying or
contact information. Public comments
may also be viewed electronically or in
paper in Room 146, 1709 New York
Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 p.m. on
weekdays. For security reasons, the
Board requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 452–3684.
Upon arrival, visitors will be required to
present valid government-issued photo
identification and to submit to security
screening in order to inspect and
photocopy comments.
Additionally, commenters may send a
copy of their comments to the Office of
Management and Budget (OMB) Desk
Officer—Shagufta Ahmed—Office of
Information and Regulatory Affairs,
Office of Management and Budget, New
Executive Office Building, Room 10235,
725 17th Street NW, Washington, DC
20503, or by fax to (202) 395–6974.
FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance
Officer—Nuha Elmaghrabi—Office of
the Chief Data Officer, Board of
Governors of the Federal Reserve
System, Washington, DC 20551, (202)
452–3829.
SUPPLEMENTARY INFORMATION: On June
15, 1984, OMB delegated to the Board
authority under the PRA to approve and
assign OMB control numbers to
collections of information conducted or
sponsored by the Board. In exercising
VerDate Sep<11>2014
23:06 May 04, 2021
Jkt 253001
this delegated authority, the Board is
directed to take every reasonable step to
solicit comment. In determining
whether to approve a collection of
information, the Board will consider all
comments received from the public and
other agencies.
A copy of the Paperwork Reduction
Act (PRA) OMB submission, including
the reporting form and instructions,
supporting statement, and other
documentation will be available at
https://www.reginfo.gov/public/do/
PRAMain, if approved. These
documents will also be made available
on the Board’s public website at https://
www.federalreserve.gov/apps/
reportforms/review.aspx or may be
requested from the agency clearance
officer, whose name appears above.
Request for Comment on Information
Collection Proposal
The Board invites public comment on
the following information collection,
which is being reviewed under
authority delegated by the OMB under
the PRA. Comments are invited on the
following:
a. Whether the proposed collection of
information is necessary for the proper
performance of the Board’s functions,
including whether the information has
practical utility;
b. The accuracy of the Board’s
estimate of the burden of the proposed
information collection, including the
validity of the methodology and
assumptions used;
c. Ways to enhance the quality,
utility, and clarity of the information to
be collected;
d. Ways to minimize the burden of
information collection on respondents,
including through the use of automated
collection techniques or other forms of
information technology; and
e. Estimates of capital or startup costs
and costs of operation, maintenance,
and purchase of services to provide
information.
At the end of the comment period, the
comments and recommendations
received will be analyzed to determine
the extent to which the Board should
modify the proposal.
Proposal Under OMB Delegated
Authority To Extend for Three Years,
With Revision, the Following
Information Collection
Report title: Report of Selected Money
Market Rates.
Agency form number: FR 2420.
OMB control number: 7100–0357.
Frequency: Daily.
Respondents: Commercial banks,
savings associations, branches and
agencies of foreign banks, international
PO 00000
Frm 00059
Fmt 4703
Sfmt 4703
banking facilities, and significant
banking organizations representing
entities actively participating in the
federal funds and/or other money
markets.
Estimated number of respondents:
181 commercial banks, savings
associations, U.S. branches and agencies
of foreign banks, and significant banking
organizations; 77 international banking
facilities.
Estimated average hours per response:
2.0 commercial banks, savings
associations, U.S. branches and agencies
of foreign banks, and significant banking
organizations; 1.1 international banking
facilities.
Estimated annual burden hours:
90,500 commercial banks, savings
associations, U.S. branches and agencies
of foreign banks, and significant banking
organizations; 21,175 international
banking facilities.
General description of report: The FR
2420 is a transaction-based report that
collects daily liability data on federal
funds purchased, selected borrowings
from non-exempt entities,1 Eurodollar
transactions, and time deposits and
certificates of deposits (CDs) from (1)
domestically chartered commercial
banks and savings associations that have
$18 billion or more in total assets as
well as those that have total assets above
$5 billion but less than $18 billion and
meet the activity threshold, (2) U.S.
branches and agencies of foreign banks
with total third-party assets of $2.5
billion or more, and (3) significant
banking organizations that are active
participants in money markets. The FR
2420 also collects daily data on
Eurodollar transactions from
International Banking Facilities (IBFs) of
the above-referenced institutions. The
FR 2420 data are used in the publication
of the Effective Federal Funds Rate
(EFFR) and Overnight Bank Funding
Rate (OBFR) and in analysis of current
money market conditions.
Proposed revisions: The Board
proposes to add a data item to specify
the day-count convention used for all
interest rates reported on the FR 2420
reporting form. The Board also proposes
revisions to the FR 2420 instructions to
allow for more timely collection of data,
improve monitoring of the transition
away from the London Interbank
Offered Rate (LIBOR), strengthen the
reference rate production process, and
ensure the integrity of reported data.
The proposed revisions support the
1 A selected borrowing from a non-exempt entity
is an unsecured borrowing (an unsecured primary
obligation undertaken by the reporting institution
as a means of obtaining funds) in U.S. dollars from
a counterparty that is a non-exempt entity as
derived from Regulation D, section 204.2(a)(vii).
E:\FR\FM\05MYN1.SGM
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Federal Register / Vol. 86, No. 85 / Wednesday, May 5, 2021 / Notices
Board’s monetary policy and
supervisory mandates by providing
greater insight into funding market
conditions in periods where conditions
change rapidly, potentially affecting
policy measures taken by the Federal
Reserve. The proposed revisions to FR
2420 would be effective with the
January 1, 2022, as of date.
Reporting Form Revisions
The Board proposes to add a data item
to specify the day-count convention
used for all interest rates reported on FR
2420. The Federal Reserve has
identified limited instances of reporting
institutions using multiple day-count
conventions in calculating reported
interest rates, specifically found in the
reporting of Part C interest rates. The
proposed revision would improve the
accuracy of reported data, benefiting the
Federal Reserve’s monitoring of funding
market conditions and strengthening the
production of the EFFR and OBFR. The
proposed data item would provide the
following day-count conventions as
options: Actual/360, actual/365, 30/360,
30/365, actual/actual, and other.
Instruction Revisions
Additional Reference Rate Options for
Floating-Rate Time Deposits and CDs
(Part C)
The Board proposes to include
additional reference rates to which
floating-rate time deposits and CDs are
tied. The additional rates include the
Secured Overnight Financing Rate
(SOFR), other SOFR-based rates, and
OBFR, all of which are published daily
by the Federal Reserve Bank of New
York (FRBNY). Other SOFR-based rates
include the SOFR Index and the SOFR
Averages over 30, 90, and 180 days.
This revision would improve the ability
of the Federal Reserve to monitor the
progress of the transition from LIBOR to
SOFR with respect to floating-rate
money market instruments.2
Earlier Deadline for Submission of Time
Deposit and CD Data (General
Instructions)
The Board proposes to change the
deadline for submission of time deposit
and CD data in Part C to 2 p.m. ET one
business day (T+1) after the report date,
rather than two business days (T+2)
after the report date. This proposed
change would provide more timely data
and improve the Federal Reserve’s
monitoring of funding market
2 The Alternative Reference Rates Committee is a
group of private-market participants convened by
the Board and the FRBNY to help ensure a
successful transition from U.S. dollar LIBOR to a
more robust reference rate, its recommended
alternative, the SOFR.
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conditions. The change would be
particularly beneficial on occasions
when market conditions change quickly,
such as when a deterioration in time
deposit and CD markets may produce
spillovers to other markets.
Earlier Deadline for Submission of
Federal Funds Purchased, Eurodollar,
and Selected Deposits Data (General
Instructions)
The Board proposes to change the
deadline for submission of Federal
Funds Purchased, Eurodollars, and
Selected Deposits data in Parts A, B, and
D to 7 p.m. ET the same day (T+0) as
the transaction date, rather than 7 a.m.
ET one business day (T+1) after the
transaction date. The proposed earlier
reporting deadline would allow for
more opportunity for data review and
validation, reducing operational risk
associated with the publication of the
EFFR and OBFR.
Clarifications To Prevent Errors (Parts C
and D)
The Board proposes other minor
additions to the FR 2420 instructions to
prevent confusion and errors on the part
of reporting institutions. Guidance
would be added for certain reciprocal
deposits, including insured deposit cash
sweeps and Certificate of Deposit
Account Registry Service deposits (Part
C). Additional guidance would be
included on the correct reporting of
brokered deposits (Part C) and certain
securities lending transactions (Part D).
Legal authorization and
confidentiality: The FR 2420 is
authorized by section 11 of the Federal
Reserve Act (FRA) and section 7 of the
International Banking Act of 1978 (IBA).
Section 11 of the FRA authorizes the
Board to require reports from depository
institutions as it may deem necessary
and authorizes the Board to prescribe
reports of liabilities and assets from
insured depository institutions to enable
the Board to discharge its responsibility
to monitor and control monetary and
credit aggregates (12 U.S.C. 248(a)).
Section 7 of the IBA provides that
federal branches and agencies of foreign
banks are subject to section 11 of the
FRA as if they were state member banks
(12 U.S.C. 3105(c)). The obligation to
respond to the FR 2420 is mandatory.
The FRBNY uses aggregate data from
the FR 2420 to publish the EFFR, OBFR,
and associated statistics daily. The
information provided by individual
respondents to the FR 2420 is nonpublic
commercial or financial information,
which is both customarily and actually
treated as private by the respondents.
Responses to the FR 2420 are therefore
accorded confidential treatment
PO 00000
Frm 00060
Fmt 4703
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23973
pursuant to exemption 4 of the Freedom
of Information Act (5 U.S.C. 552(b)(4)).
Consultation outside the agency: A
group of large FR 2420 respondents (less
than 10) were consulted in November
2020 regarding the feasibility of
reporting timestamps for FR 2420
transactions, shifting reporting
deadlines, and the day-count
conventions used when reporting
interest rates on FR 2420 transactions.
Outreach results suggest that
timestamps for transactions are not
recorded in a consistent fashion across
respondents, and thus the current
proposals do not call for the reporting
of timestamps. Outreach also suggests
that most respondents currently report
Parts A, B, and D of the FR 2420 report
on a T+0 basis, and no respondents
consulted suggested that a T+0 reporting
deadline for Parts A, B, and D was not
feasible. Most respondents consulted
noted that they should be able to report
Part C transactions on a T+1 basis.
Feedback also showed that most
transactions are reported using the
actual/360 day-count convention for
interest rates, but other day-count
conventions are used for some reported
transactions.
Board of Governors of the Federal Reserve
System, April 29, 2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021–09424 Filed 5–4–21; 8:45 am]
BILLING CODE 6210–01–P
DEPARTMENT OF HEALTH AND
HUMAN SERVICES
Administration for Children and
Families
Submission for OMB Review; Grants to
States for Access and Visitation, OMB
#0970–0204
Division of Program
Innovation, Office of Child Support
Enforcement, Administration for
Children and Families, HHS.
ACTION: Request for public comment.
AGENCY:
The Division of Program
Innovation (DPI), Office of Child
Support Enforcement (OCSE),
Administration for Children and
Families (ACF) is requesting a 3-year
extension of the Access and Visitation
Survey: Annual Report (OMB #0970–
0204, expiration 10/31/2021). There are
no changes requested to the form.
DATES: Comments due within 30 days of
publication. OMB must make a decision
about the collection of information
between 30 and 60 days after
publication of this document in the
SUMMARY:
E:\FR\FM\05MYN1.SGM
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]]>Agencies
[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 23971-23973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09424]
-----------------------------------------------------------------------
FEDERAL RESERVE SYSTEM
Proposed Agency Information Collection Activities; Comment
Request
AGENCY: Board of Governors of the Federal Reserve System.
ACTION: Notice, request for comment.
-----------------------------------------------------------------------
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
invites comment on a proposal to extend for three years, with revision,
the Report of
[[Page 23972]]
Selected Money Market Rates (FR 2420; OMB No. 7100-0357).
DATES: Comments must be submitted on or before July 6, 2021.
ADDRESSES: You may submit comments, identified by FR 2420, by any of
the following methods:
Agency Website: https://www.federalreserve.gov/. Follow
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
Email: [email protected]. Include the OMB
number in the subject line of the message.
Fax: (202) 452-3819 or (202) 452-3102.
Mail: Ann E. Misback, Secretary, Board of Governors of the
Federal Reserve System, 20th Street and Constitution Avenue NW,
Washington, DC 20551.
All public comments are available from the Board's website at
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as
submitted, unless modified for technical reasons or to remove
personally identifiable information at the commenter's request.
Accordingly, comments will not be edited to remove any identifying or
contact information. Public comments may also be viewed electronically
or in paper in Room 146, 1709 New York Avenue NW, Washington, DC 20006,
between 9:00 a.m. and 5:00 p.m. on weekdays. For security reasons, the
Board requires that visitors make an appointment to inspect comments.
You may do so by calling (202) 452-3684. Upon arrival, visitors will be
required to present valid government-issued photo identification and to
submit to security screening in order to inspect and photocopy
comments.
Additionally, commenters may send a copy of their comments to the
Office of Management and Budget (OMB) Desk Officer--Shagufta Ahmed--
Office of Information and Regulatory Affairs, Office of Management and
Budget, New Executive Office Building, Room 10235, 725 17th Street NW,
Washington, DC 20503, or by fax to (202) 395-6974.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the PRA to approve and assign OMB control numbers to
collections of information conducted or sponsored by the Board. In
exercising this delegated authority, the Board is directed to take
every reasonable step to solicit comment. In determining whether to
approve a collection of information, the Board will consider all
comments received from the public and other agencies.
A copy of the Paperwork Reduction Act (PRA) OMB submission,
including the reporting form and instructions, supporting statement,
and other documentation will be available at https://www.reginfo.gov/public/do/PRAMain, if approved. These documents will also be made
available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested
from the agency clearance officer, whose name appears above.
Request for Comment on Information Collection Proposal
The Board invites public comment on the following information
collection, which is being reviewed under authority delegated by the
OMB under the PRA. Comments are invited on the following:
a. Whether the proposed collection of information is necessary for
the proper performance of the Board's functions, including whether the
information has practical utility;
b. The accuracy of the Board's estimate of the burden of the
proposed information collection, including the validity of the
methodology and assumptions used;
c. Ways to enhance the quality, utility, and clarity of the
information to be collected;
d. Ways to minimize the burden of information collection on
respondents, including through the use of automated collection
techniques or other forms of information technology; and
e. Estimates of capital or startup costs and costs of operation,
maintenance, and purchase of services to provide information.
At the end of the comment period, the comments and recommendations
received will be analyzed to determine the extent to which the Board
should modify the proposal.
Proposal Under OMB Delegated Authority To Extend for Three Years, With
Revision, the Following Information Collection
Report title: Report of Selected Money Market Rates.
Agency form number: FR 2420.
OMB control number: 7100-0357.
Frequency: Daily.
Respondents: Commercial banks, savings associations, branches and
agencies of foreign banks, international banking facilities, and
significant banking organizations representing entities actively
participating in the federal funds and/or other money markets.
Estimated number of respondents: 181 commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations; 77 international banking facilities.
Estimated average hours per response: 2.0 commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations; 1.1 international banking
facilities.
Estimated annual burden hours: 90,500 commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations; 21,175 international banking
facilities.
General description of report: The FR 2420 is a transaction-based
report that collects daily liability data on federal funds purchased,
selected borrowings from non-exempt entities,\1\ Eurodollar
transactions, and time deposits and certificates of deposits (CDs) from
(1) domestically chartered commercial banks and savings associations
that have $18 billion or more in total assets as well as those that
have total assets above $5 billion but less than $18 billion and meet
the activity threshold, (2) U.S. branches and agencies of foreign banks
with total third-party assets of $2.5 billion or more, and (3)
significant banking organizations that are active participants in money
markets. The FR 2420 also collects daily data on Eurodollar
transactions from International Banking Facilities (IBFs) of the above-
referenced institutions. The FR 2420 data are used in the publication
of the Effective Federal Funds Rate (EFFR) and Overnight Bank Funding
Rate (OBFR) and in analysis of current money market conditions.
---------------------------------------------------------------------------
\1\ A selected borrowing from a non-exempt entity is an
unsecured borrowing (an unsecured primary obligation undertaken by
the reporting institution as a means of obtaining funds) in U.S.
dollars from a counterparty that is a non-exempt entity as derived
from Regulation D, section 204.2(a)(vii).
---------------------------------------------------------------------------
Proposed revisions: The Board proposes to add a data item to
specify the day-count convention used for all interest rates reported
on the FR 2420 reporting form. The Board also proposes revisions to the
FR 2420 instructions to allow for more timely collection of data,
improve monitoring of the transition away from the London Interbank
Offered Rate (LIBOR), strengthen the reference rate production process,
and ensure the integrity of reported data. The proposed revisions
support the
[[Page 23973]]
Board's monetary policy and supervisory mandates by providing greater
insight into funding market conditions in periods where conditions
change rapidly, potentially affecting policy measures taken by the
Federal Reserve. The proposed revisions to FR 2420 would be effective
with the January 1, 2022, as of date.
Reporting Form Revisions
The Board proposes to add a data item to specify the day-count
convention used for all interest rates reported on FR 2420. The Federal
Reserve has identified limited instances of reporting institutions
using multiple day-count conventions in calculating reported interest
rates, specifically found in the reporting of Part C interest rates.
The proposed revision would improve the accuracy of reported data,
benefiting the Federal Reserve's monitoring of funding market
conditions and strengthening the production of the EFFR and OBFR. The
proposed data item would provide the following day-count conventions as
options: Actual/360, actual/365, 30/360, 30/365, actual/actual, and
other.
Instruction Revisions
Additional Reference Rate Options for Floating-Rate Time Deposits and
CDs (Part C)
The Board proposes to include additional reference rates to which
floating-rate time deposits and CDs are tied. The additional rates
include the Secured Overnight Financing Rate (SOFR), other SOFR-based
rates, and OBFR, all of which are published daily by the Federal
Reserve Bank of New York (FRBNY). Other SOFR-based rates include the
SOFR Index and the SOFR Averages over 30, 90, and 180 days. This
revision would improve the ability of the Federal Reserve to monitor
the progress of the transition from LIBOR to SOFR with respect to
floating-rate money market instruments.\2\
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\2\ The Alternative Reference Rates Committee is a group of
private-market participants convened by the Board and the FRBNY to
help ensure a successful transition from U.S. dollar LIBOR to a more
robust reference rate, its recommended alternative, the SOFR.
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Earlier Deadline for Submission of Time Deposit and CD Data (General
Instructions)
The Board proposes to change the deadline for submission of time
deposit and CD data in Part C to 2 p.m. ET one business day (T+1) after
the report date, rather than two business days (T+2) after the report
date. This proposed change would provide more timely data and improve
the Federal Reserve's monitoring of funding market conditions. The
change would be particularly beneficial on occasions when market
conditions change quickly, such as when a deterioration in time deposit
and CD markets may produce spillovers to other markets.
Earlier Deadline for Submission of Federal Funds Purchased, Eurodollar,
and Selected Deposits Data (General Instructions)
The Board proposes to change the deadline for submission of Federal
Funds Purchased, Eurodollars, and Selected Deposits data in Parts A, B,
and D to 7 p.m. ET the same day (T+0) as the transaction date, rather
than 7 a.m. ET one business day (T+1) after the transaction date. The
proposed earlier reporting deadline would allow for more opportunity
for data review and validation, reducing operational risk associated
with the publication of the EFFR and OBFR.
Clarifications To Prevent Errors (Parts C and D)
The Board proposes other minor additions to the FR 2420
instructions to prevent confusion and errors on the part of reporting
institutions. Guidance would be added for certain reciprocal deposits,
including insured deposit cash sweeps and Certificate of Deposit
Account Registry Service deposits (Part C). Additional guidance would
be included on the correct reporting of brokered deposits (Part C) and
certain securities lending transactions (Part D).
Legal authorization and confidentiality: The FR 2420 is authorized
by section 11 of the Federal Reserve Act (FRA) and section 7 of the
International Banking Act of 1978 (IBA). Section 11 of the FRA
authorizes the Board to require reports from depository institutions as
it may deem necessary and authorizes the Board to prescribe reports of
liabilities and assets from insured depository institutions to enable
the Board to discharge its responsibility to monitor and control
monetary and credit aggregates (12 U.S.C. 248(a)). Section 7 of the IBA
provides that federal branches and agencies of foreign banks are
subject to section 11 of the FRA as if they were state member banks (12
U.S.C. 3105(c)). The obligation to respond to the FR 2420 is mandatory.
The FRBNY uses aggregate data from the FR 2420 to publish the EFFR,
OBFR, and associated statistics daily. The information provided by
individual respondents to the FR 2420 is nonpublic commercial or
financial information, which is both customarily and actually treated
as private by the respondents. Responses to the FR 2420 are therefore
accorded confidential treatment pursuant to exemption 4 of the Freedom
of Information Act (5 U.S.C. 552(b)(4)).
Consultation outside the agency: A group of large FR 2420
respondents (less than 10) were consulted in November 2020 regarding
the feasibility of reporting timestamps for FR 2420 transactions,
shifting reporting deadlines, and the day-count conventions used when
reporting interest rates on FR 2420 transactions. Outreach results
suggest that timestamps for transactions are not recorded in a
consistent fashion across respondents, and thus the current proposals
do not call for the reporting of timestamps. Outreach also suggests
that most respondents currently report Parts A, B, and D of the FR 2420
report on a T+0 basis, and no respondents consulted suggested that a
T+0 reporting deadline for Parts A, B, and D was not feasible. Most
respondents consulted noted that they should be able to report Part C
transactions on a T+1 basis. Feedback also showed that most
transactions are reported using the actual/360 day-count convention for
interest rates, but other day-count conventions are used for some
reported transactions.
Board of Governors of the Federal Reserve System, April 29,
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-09424 Filed 5-4-21; 8:45 am]
BILLING CODE 6210-01-P
