Agency Information Collection Activities Under OMB Review, 77563-77564 [2023-24948]

Download as PDF khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices implement conflict of interest procedures that address such issues as the Commission determines to be appropriate. Section 4s(j)(5) also requires SDs and MSPs to ensure that any persons providing clearing activities or making determinations as to accepting clearing customers are separated by appropriate informational partitions from persons whose involvement in pricing, trading, or clearing activities might bias their judgment or contravene the core principle of open access. Section 4s(j)(6) of the CEA prohibits a SD or MSP from adopting any process or taking any action that results in any unreasonable restraint on trade or imposes any material anticompetitive burden on trading or clearing, unless necessary or appropriate to achieve the purposes of the Act. Section 2(h)(1)(B)(ii) of the CEA requires that derivatives clearing organization (‘‘DCO’’) rules provide for the nondiscriminatory clearing of swaps executed bilaterally or through an unaffiliated designated contract market or swap execution facility. To address these provisions, the Commission promulgated regulations that prohibit arrangements involving FCMs, SDs, MSPs, and DCOs that would (a) disclose to an FCM, SD, or MSP the identity of a customer’s original executing counterparty (§§ 1.72(a), 23.608(a), and 39.12(a)(1)(vi)); (b) limit the number of counterparties with whom a customer may enter into a trade (§§ 1.72(b), 23.608(b), and 39.12(a)(1)(vi)); (c) restrict the size of the position a customer may take with any individual counterparty, apart from an overall credit limit for all positions held by the customer at the FCM (§§ 1.72(c), 23.608(c), and 39.12(a)(1)(vi)); (d) impair a customer’s access to execution of a trade on terms that have a reasonable relationship to the best terms available (§§ 1.72(d), 23.608(d), and 39.12(a)(1)(vi)); or (e) prevent compliance with specified time frames for acceptance of trades into clearing set forth in 1.74(b), 23.610(b), or 39.12(b)(7) (§§ 1.72(e), 23.608(e), and 39.12(a)(1)(vi)). Additionally, the Commission requires, through regulation 39.12(b)(7)(i)(B), DCOs to coordinate with clearing members to establish prompt processing of trades. Regulations 1.74(a) and 23.610(a) require reciprocal coordination by FCMs, SDs, and MSPs that are clearing members. Under the above regulations, SDs, MSPs, FCMs, and DCOs are required to develop and maintain written customer clearing documentation and trade processing procedures. Maintenance of contracts, policies, and procedures is VerDate Sep<11>2014 17:12 Nov 09, 2023 Jkt 262001 prudent business practice. All SDs, MSPs, FCMs, and DCOs maintain documentation consistent with these regulations. The regulations are crucial both for effective risk management and for the efficient operation of trading venues among SDs, MSPs, FCMs, and DCOs. Each of these entities has a general recordkeeping obligation for these requirements under the Commission’s regulations (§ 39.20 for DCOs; § 23.606 for SDs and MSPs; and § 1.73 for FCMs). The information collection burden arising from the regulations primarily is restricted to the costs associated with the affected registrants’ obligation to maintain records related to clearing documentation between the customer and the customer’s clearing member, and trade processing procedures between DCOs and FCMs, SDs, and MSPs. The information collection obligations are necessary to implement certain provisions of the CEA, including ensuring that registrants exercise effective risk management, and are also appropriate for the efficient operation of trading venues among SDs, MSPs, FCMs, and DCOs. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control number.2 On August 25, 2023, the Commission published in the Federal Register notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension, 88 FR 58251 (‘‘60-Day Notice’’). The Commission did not receive any comments on the 60-Day Notice. Burden Statement: The respondent burden for this collection is estimated to be as follows: Estimated Number of Respondents: 180. Estimated Average Burden Hours per Respondent: 40. Estimated Total Annual Burden Hours: 7,200. Frequency of Collection: As needed. There are no capital costs or operating and maintenance costs associated with this collection. (Authority: 44 U.S.C. 3501 et seq.) Dated: November 6, 2023. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2023–24875 Filed 11–9–23; 8:45 am] BILLING CODE 6351–01–P 2 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8 (b)(3)(vi). PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 77563 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 Information and Regulatory Affairs (‘‘OIRA’’), of 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 December 13, 2023. ADDRESSES: Written comments and recommendations for the proposed information collection should be submitted within 30 days of this notice’s publication to OIRA, at https:// www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the website’s search function. Comments can be entered electronically by clicking on the ‘‘comment’’ button next to the information collection on the ‘‘OIRA Information Collections Under Review’’ page, or the ‘‘View ICR—Agency Submission’’ page. A copy of the supporting statement for the collection of information discussed herein may be obtained by visiting https:// www.reginfo.gov/public/do/PRAMain. In addition to the submission of comments to https://Reginfo.gov as indicated above, a copy of all comments submitted to OIRA may also be submitted to the Commodity Futures Trading Commission (‘‘CFTC’’ or the ‘‘Commission’’) by clicking on the ‘‘Submit Comment’’ box next to the descriptive entry for ‘‘OMB Control No. 3038–0091,’’ at https:// comments.cftc.gov/FederalRegister/ PublicInfo.aspx. Or by either of the following methods: • 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. All comments must be submitted in English, or if not, accompanied by an English translation. Comments submitted to the Commission should SUMMARY: E:\FR\FM\13NON1.SGM 13NON1 khammond on DSKJM1Z7X2PROD with NOTICES 77564 Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices include only information that you wish to make available publicly. If you wish the Commission to consider information that you believe is exempt from disclosure under the Freedom of Information Act, a petition for confidential treatment of the exempt information may be submitted according to the procedures established in § 145.9 of the Commission’s regulations.1 The Commission reserves the right, but shall have no obligation, to review, prescreen, 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. FOR FURTHER INFORMATION CONTACT: Maria Aguilar-Rocha, Attorney Advisor, Market Participants Division, Commodity Futures Trading Commission, (202) 418–5840, maguilarrocha@cftc.gov, and refer to OMB Control No. 3038–0091. SUPPLEMENTARY INFORMATION: Title: Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral (OMB Control No. 3038–0091). This is a request for extension of a currently approved information collection. Abstract: Section 724(a) of the DoddFrank 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 1 17 CFR 145.9. VerDate Sep<11>2014 17:12 Nov 09, 2023 Jkt 262001 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 PO 00000 Frm 00016 Fmt 4703 Sfmt 4703 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. 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. 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. On August 29, 2023, the Commission published in the Federal Register notice of the proposed extension of this information collection and provided 60 days for public comment on the proposed extension, 88 FR 59510 (‘‘60-Day Notice’’). The Commission did not receive any relevant comments on the 60-Day Notice. Burden Statement: The Commission is revising its estimate of the burden for this collection for 75 respondents (60 FCMs and 15 DCOs). The respondent burden for this collection is estimated to be as follows: Estimated Number of Respondents: 75. Estimated Average Burden Hours per Respondent: 334. Estimated Total Annual Burden Hours: 25,050. 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: November 7, 2023. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2023–24948 Filed 11–9–23; 8:45 am] BILLING CODE 6351–01–P E:\FR\FM\13NON1.SGM 13NON1

Agencies

[Federal Register Volume 88, Number 217 (Monday, November 13, 2023)]
[Notices]
[Pages 77563-77564]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-24948]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

-----------------------------------------------------------------------

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 
Information and Regulatory Affairs (``OIRA''), of 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 December 13, 2023.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be submitted within 30 days of this 
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by 
selecting ``Currently under 30-day Review--Open for Public Comments'' 
or by using the website's search function. Comments can be entered 
electronically by clicking on the ``comment'' button next to the 
information collection on the ``OIRA Information Collections Under 
Review'' page, or the ``View ICR--Agency Submission'' page. A copy of 
the supporting statement for the collection of information discussed 
herein may be obtained by visiting https://www.reginfo.gov/public/do/PRAMain.
    In addition to the submission of comments to https://Reginfo.gov as 
indicated above, a copy of all comments submitted to OIRA may also be 
submitted to the Commodity Futures Trading Commission (``CFTC'' or the 
``Commission'') by clicking on the ``Submit Comment'' box next to the 
descriptive entry for ``OMB Control No. 3038-0091,'' at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
    Or by either of the following methods:
     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.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments submitted to the Commission should

[[Page 77564]]

include 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\ The Commission reserves the right, but 
shall have no obligation, to review, prescreen, 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.
---------------------------------------------------------------------------

    \1\ 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Maria Aguilar-Rocha, Attorney Advisor, 
Market Participants Division, Commodity Futures Trading Commission, 
(202) 418-5840, [email protected], and refer to OMB Control No. 
---------------------------------------------------------------------------
3038-0091.

SUPPLEMENTARY INFORMATION: 
    Title: Disclosure and Retention of Certain Information Relating to 
Cleared Swaps Customer Collateral (OMB Control No. 3038-0091). This is 
a request for 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.
    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.
    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. On August 29, 2023, the Commission 
published in the Federal Register notice of the proposed extension of 
this information collection and provided 60 days for public comment on 
the proposed extension, 88 FR 59510 (``60-Day Notice''). The Commission 
did not receive any relevant comments on the 60-Day Notice.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection for 75 respondents (60 FCMs and 15 DCOs). 
The respondent burden for this collection is estimated to be as 
follows:
    Estimated Number of Respondents: 75.
    Estimated Average Burden Hours per Respondent: 334.
    Estimated Total Annual Burden Hours: 25,050.
    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: November 7, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-24948 Filed 11-9-23; 8:45 am]
BILLING CODE 6351-01-P
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