Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0079: Swap Dealer and Major Swap Participant Conflicts of Interest and Business Conduct Standards With Counterparties, 43085-43086 [2023-14248]
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Federal Register / Vol. 88, No. 128 / Thursday, July 6, 2023 / Notices
COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Notice of Intent To Extend
Collection 3038–0079: Swap Dealer
and Major Swap Participant Conflicts
of Interest and Business Conduct
Standards With Counterparties
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
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 a proposed
extension of an existing collection of
information, and to allow 60 days for
public comment. This notice solicits
comments on the information
collections included in certain
Commission’s regulations, requiring
swap dealers (‘‘SDs’’) and major swap
participants (‘‘MSPs’’) to follow
specified procedures and provide
specified disclosures in their dealings
with counterparties, to adopt and
implement conflicts of interest
procedures and disclosures, and to
maintain specified records related to
those requirements.
DATES: Comments must be submitted on
or before September 5, 2023.
ADDRESSES: You may submit comments,
identified by ‘‘OMB Control No. 3038–
0079,’’ by any of the following methods:
• Online: The CFTC Comments
Portal, on the agency’s website, is
available at https://comments.cftc.gov.
Select the ‘‘Submit Comments’’ link for
this rulemaking and follow the
instructions on the Public Comment
Form.
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Follow the
same instructions as for Mail above.
Please submit your comments using
only one of these methods. 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: Dina
Moussa, Special Counsel, 202–418–
lotter on DSK11XQN23PROD with NOTICES1
SUMMARY:
VerDate Sep<11>2014
17:07 Jul 05, 2023
Jkt 259001
5696, dmoussa@cftc.gov, Market
Participants Division, Commodity
Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW,
Washington, DC 20581.
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 2 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.
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
Title: Swap Dealer and Major Swap
Participant Conflicts of Interest and
Business Conduct Standards with
Counterparties (OMB Control No. 3038–
0079). This is a request for an extension
of a currently approved information
collection.
Abstract: Section 731 of Title VII of
the Dodd-Frank Wall Street Reform and
Consumer Protection Act 4 amended the
Commodity Exchange Act (‘‘CEA’’) to
add sections 4s(h) and 4s(j)(5) 5, which
provide the Commission with both
mandatory and discretionary
rulemaking authority to impose
business conduct requirements on SDs
and MSPs in their dealings with
counterparties, including ‘‘Special
Entities,’’ 6 and require that each SD and
MSP implement conflicts of interest
systems and procedures. Congress
granted the Commission broad
discretionary authority to promulgate
business conduct requirements, as
U.S.C. 3501 et seq.
U.S.C. 3506(c)(2)(A).
3 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8
(b)(3)(vi).
4 Dodd-Frank Act, Public Law 111–203, 124 Stat.
1376 (2010).
5 7 U.S.C. 6s(h) and (j)(5).
6 Such entities are generally defined to include
Federal agencies, States and political subdivisions,
employee benefit plans as defined under the
Employee Retirement Income Security Act of 1974
(‘‘ERISA’’), governmental plans as defined under
ERISA, and endowments.
PO 00000
1 44
2 44
Frm 00007
Fmt 4703
Sfmt 4703
43085
appropriate in the public interest, for
the protection of investors, or otherwise
in furtherance of the purposes of the
CEA.7
Accordingly, the Commission has
adopted subpart H of part 23 of its
regulations (‘‘EBCS Rules’’) 8 and
§ 23.605,9 requiring SDs and MSPs to
follow specified procedures and provide
specified disclosures in their dealings
with counterparties, to adopt and
implement conflicts of interest
procedures and disclosures, and to
maintain specified records related to
those requirements.
The recordkeeping and third-party
disclosure obligations imposed by the
regulations are essential to ensuring that
SDs and MSPs develop and maintain
procedures and disclosures required by
the CEA and Commission regulations.10
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
7 See section 4s(h)(3)(D) of the CEA, 7 U.S.C.
6s(h)(3)(D) (Business conduct requirements adopted
by the Commission shall establish such other
standards and requirements as the Commission may
determine are appropriate in the public interest, for
the protection of investors, or otherwise in
furtherance of the purposes of the CEA); see also
sections 4s(h)(1)(D), 4s(h)(5)(B) and 4s(h)(6) of the
CEA; 7 U.S.C. 6s(h)(1)(D), 6s(h)(5)(B) and 6s(h)(6).
8 17 CFR part 23, subpart H. Subpart H of part 23
(titled Business Conduct Standards for Swap
Dealers and Major Swap Participants Dealing with
Counterparties, Including Special Entities) includes
the following provisions: § 23.400 (Scope); § 23.401
(Definitions); § 23.402 (General Provisions);
§ 23.410 (Prohibition on fraud, manipulation and
other abusive practices); § 23.430 (Verification of
counterparty eligibility); § 23.431 (Disclosures of
material information); § 23.432 (Clearing
disclosures); § 23.433 (Communications—fair
dealing); § 23.434 (Recommendations to
counterparties—institutional suitability; § 23.440
(Requirements for swap dealers acting as advisors
to Special Entities); § 23.450 (Requirements for
swap dealers and major swap participants acting
counterparties to Special Entities); and § 23.451
(Political contributions by certain swap dealers).
9 17 CFR 23.605. Section 23.605 is titled Conflicts
of interest policies and procedures.
10 Reporting under § 23.451 (Political
contributions by certain swap dealers) is optional
and it is unknown how many registrants, if any,
will engage in such reporting and how much
burden, if any, will be incurred. Nevertheless, the
Commission is providing an estimate of the
regulation’s burden for purposes of the PRA below.
E:\FR\FM\06JYN1.SGM
06JYN1
43086
Federal Register / Vol. 88, No. 128 / Thursday, July 6, 2023 / Notices
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 (‘‘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.11
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
FOIA.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection based on a decrease in
the current number of Commissionregistered SDs.12 The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
106.
Estimated Average Burden Hours per
Respondent: 2,352.9 hours.
Estimated Total Annual Burden
Hours: 249,412 hours.
Frequency of Collection: Ongoing.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: June 30, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023–14248 Filed 7–5–23; 8:45 am]
lotter on DSK11XQN23PROD with NOTICES1
BILLING CODE 6351–01–P
11 17
CFR 145.9.
the change for the renewal is
based solely on the decreased number of entities
provisionally-registered with the Commission as
SDs (109 at the last renewal in 2020 and 106,
currently, as of June 7, 2023), as the annual total
burden hours has remained the same—at 2,352.9
hours per respondent. And just as before, there are
no entities currently registered as MSPs.
12 Specifically,
VerDate Sep<11>2014
17:07 Jul 05, 2023
Jkt 259001
COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Notice of Intent To Revise
Collection 3038–0096, Swap Data
Recordkeeping and Reporting
Requirements
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
The Commodity Futures
Trading Commission (‘‘CFTC’’ or
‘‘Commission’’) is announcing an
opportunity for public comment on the
proposed revision of an information
collection 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 the information
collections pertaining to the
Commission’s swap data recordkeeping
and reporting requirements. These rules
impose recordkeeping and reporting
requirements on the following entities:
Swap Dealers (‘‘SDs’’), Major Swap
Participants (‘‘MSPs’’), Swap Execution
Facilities (‘‘SEFs’’), designated contract
markets (‘‘DCMs’’), swap data
repositories (‘‘SDRs’’), derivatives
clearing organizations (‘‘DCOs’’), and
swap counterparties that are neither
swap dealers nor major swap
participants (‘‘non-SD/MSP
counterparties’’).
DATES: Comments must be submitted on
or before September 5, 2023.
ADDRESSES: You may submit comments,
identified by ‘‘Revision of Information
Collection Pertaining to Swap Data
Recordkeeping and Reporting
Requirements, OMB Control No. 3038–
0096,’’ 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. 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.
SUMMARY:
PO 00000
Frm 00008
Fmt 4703
Sfmt 4703
FOR FURTHER INFORMATION CONTACT:
Chase Lindsey, Assistant Chief Counsel,
Division of Market Oversight,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581 (202) 740–4833; email: clindsey@
cftc.gov.
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 information collection
including each proposed extension of an
existing information collection, before
submitting the collection to OMB for
approval. To comply with this
requirement, the CFTC is publishing
notice of a proposed revision of the
currently approved information
collection listed below. An agency may
not conduct or sponsor, and a person is
not required to respond to, an
information collection unless it displays
a currently valid OMB control number.
Title: Swap Data Recordkeeping and
Reporting Requirements (OMB Control
No. 3038–0096). This is a request for
revision of a currently approved
information collection.
Abstract: The collection of
information is needed to ensure that the
CFTC and other regulators have access
to swap data as required by the
Commodity Exchange Act, as amended
by the Dodd-Frank Wall Street Reform
and Consumer Protection Act (‘‘DoddFrank Act’’). The Dodd-Frank Act
directed the CFTC to adopt rules
providing for the reporting of data
relating to swaps. In 2012, the CFTC
adopted Regulation 45, which imposes
recordkeeping and reporting
requirements relating to swaps. The
Commission is revising its burden hours
and hourly labor cost estimates
following the Commission’s designation
of a Unique Product Identifier (‘‘UPI’’)
and product classification system for
certain swap asset classes. The
Commission is revising its burden
estimates associated with the reporting
obligations under part 45 of the
Commission rules to account for new
burden associated with the
requirements of part 45.7.
E:\FR\FM\06JYN1.SGM
06JYN1
]]>Agencies
[Federal Register Volume 88, Number 128 (Thursday, July 6, 2023)]
[Notices]
[Pages 43085-43086]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-14248]
[[Page 43085]]
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Extend Collection 3038-0079: Swap Dealer and Major Swap Participant
Conflicts of Interest and Business Conduct Standards With
Counterparties
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
-----------------------------------------------------------------------
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 a proposed extension of
an existing collection of information, and to allow 60 days for public
comment. This notice solicits comments on the information collections
included in certain Commission's regulations, requiring swap dealers
(``SDs'') and major swap participants (``MSPs'') to follow specified
procedures and provide specified disclosures in their dealings with
counterparties, to adopt and implement conflicts of interest procedures
and disclosures, and to maintain specified records related to those
requirements.
DATES: Comments must be submitted on or before September 5, 2023.
ADDRESSES: You may submit comments, identified by ``OMB Control No.
3038-0079,'' by any of the following methods:
Online: The CFTC Comments Portal, on the agency's website,
is available at https://comments.cftc.gov. Select the ``Submit
Comments'' link for this rulemaking and follow the instructions on the
Public Comment Form.
Mail: Christopher Kirkpatrick, Secretary of the
Commission, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW, Washington, DC 20581.
Hand Delivery/Courier: Follow the same instructions as for
Mail above.
Please submit your comments using only one of these methods. 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: Dina Moussa, Special Counsel, 202-418-
5696, [email protected], Market Participants Division, Commodity Futures
Trading Commission, Three Lafayette Centre, 1155 21st Street NW,
Washington, DC 20581.
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 \2\ 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. 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\
---------------------------------------------------------------------------
\1\ 44 U.S.C. 3501 et seq.
\2\ 44 U.S.C. 3506(c)(2)(A).
\3\ 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8 (b)(3)(vi).
---------------------------------------------------------------------------
Title: Swap Dealer and Major Swap Participant Conflicts of Interest
and Business Conduct Standards with Counterparties (OMB Control No.
3038-0079). This is a request for an extension of a currently approved
information collection.
Abstract: Section 731 of Title VII of the Dodd-Frank Wall Street
Reform and Consumer Protection Act \4\ amended the Commodity Exchange
Act (``CEA'') to add sections 4s(h) and 4s(j)(5) \5\, which provide the
Commission with both mandatory and discretionary rulemaking authority
to impose business conduct requirements on SDs and MSPs in their
dealings with counterparties, including ``Special Entities,'' \6\ and
require that each SD and MSP implement conflicts of interest systems
and procedures. Congress granted the Commission broad discretionary
authority to promulgate business conduct requirements, as appropriate
in the public interest, for the protection of investors, or otherwise
in furtherance of the purposes of the CEA.\7\
---------------------------------------------------------------------------
\4\ Dodd-Frank Act, Public Law 111-203, 124 Stat. 1376 (2010).
\5\ 7 U.S.C. 6s(h) and (j)(5).
\6\ Such entities are generally defined to include Federal
agencies, States and political subdivisions, employee benefit plans
as defined under the Employee Retirement Income Security Act of 1974
(``ERISA''), governmental plans as defined under ERISA, and
endowments.
\7\ See section 4s(h)(3)(D) of the CEA, 7 U.S.C. 6s(h)(3)(D)
(Business conduct requirements adopted by the Commission shall
establish such other standards and requirements as the Commission
may determine are appropriate in the public interest, for the
protection of investors, or otherwise in furtherance of the purposes
of the CEA); see also sections 4s(h)(1)(D), 4s(h)(5)(B) and 4s(h)(6)
of the CEA; 7 U.S.C. 6s(h)(1)(D), 6s(h)(5)(B) and 6s(h)(6).
---------------------------------------------------------------------------
Accordingly, the Commission has adopted subpart H of part 23 of its
regulations (``EBCS Rules'') \8\ and Sec. 23.605,\9\ requiring SDs and
MSPs to follow specified procedures and provide specified disclosures
in their dealings with counterparties, to adopt and implement conflicts
of interest procedures and disclosures, and to maintain specified
records related to those requirements.
---------------------------------------------------------------------------
\8\ 17 CFR part 23, subpart H. Subpart H of part 23 (titled
Business Conduct Standards for Swap Dealers and Major Swap
Participants Dealing with Counterparties, Including Special
Entities) includes the following provisions: Sec. 23.400 (Scope);
Sec. 23.401 (Definitions); Sec. 23.402 (General Provisions); Sec.
23.410 (Prohibition on fraud, manipulation and other abusive
practices); Sec. 23.430 (Verification of counterparty eligibility);
Sec. 23.431 (Disclosures of material information); Sec. 23.432
(Clearing disclosures); Sec. 23.433 (Communications--fair dealing);
Sec. 23.434 (Recommendations to counterparties--institutional
suitability; Sec. 23.440 (Requirements for swap dealers acting as
advisors to Special Entities); Sec. 23.450 (Requirements for swap
dealers and major swap participants acting counterparties to Special
Entities); and Sec. 23.451 (Political contributions by certain swap
dealers).
\9\ 17 CFR 23.605. Section 23.605 is titled Conflicts of
interest policies and procedures.
---------------------------------------------------------------------------
The recordkeeping and third-party disclosure obligations imposed by
the regulations are essential to ensuring that SDs and MSPs develop and
maintain procedures and disclosures required by the CEA and Commission
regulations.\10\
---------------------------------------------------------------------------
\10\ Reporting under Sec. 23.451 (Political contributions by
certain swap dealers) is optional and it is unknown how many
registrants, if any, will engage in such reporting and how much
burden, if any, will be incurred. Nevertheless, the Commission is
providing an estimate of the regulation's burden for purposes of the
PRA below.
---------------------------------------------------------------------------
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
[[Page 43086]]
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
(``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.\11\
---------------------------------------------------------------------------
\11\ 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 FOIA.
Burden Statement: The Commission is revising its estimate of the
burden for this collection based on a decrease in the current number of
Commission-registered SDs.\12\ The respondent burden for this
collection is estimated to be as follows:
---------------------------------------------------------------------------
\12\ Specifically, the change for the renewal is based solely on
the decreased number of entities provisionally-registered with the
Commission as SDs (109 at the last renewal in 2020 and 106,
currently, as of June 7, 2023), as the annual total burden hours has
remained the same--at 2,352.9 hours per respondent. And just as
before, there are no entities currently registered as MSPs.
---------------------------------------------------------------------------
Estimated Number of Respondents: 106.
Estimated Average Burden Hours per Respondent: 2,352.9 hours.
Estimated Total Annual Burden Hours: 249,412 hours.
Frequency of Collection: Ongoing.
There are no capital costs or operating and maintenance costs
associated with this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: June 30, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-14248 Filed 7-5-23; 8:45 am]
BILLING CODE 6351-01-P
