Commodity Futures Trading Commission May 31, 2016 – Federal Register Recent Federal Regulation Documents

The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is announcing an opportunity for public comment on the proposed 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 is being published concurrently with the publication and adoption of the final rule titled ``Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap ParticipantsCross-Border Application of the Margin Requirements'' (``Final Rule''), which addresses the cross-border application of the Commission's margin requirements for uncleared swaps of covered swap entities (``CSEs''). This notice solicits comments on a new information collection that applies to CSEs that rely on a special provision of the Final Rule applicable to certain foreign jurisdictions where CSEs are unable to conclude, with a well-founded basis, that the netting agreement with a counterparty in that foreign jurisdiction meets the definition of an ``eligible master netting agreement'' set forth in the Commission's final margin rule (``Final Margin Rule'') (``non-netting jurisdictions''). This notice also solicits comments on a new information collection that applies to Foreign Consolidated Subsidiaries (as defined in the Final Rule) and foreign branches of U.S. CSEs that rely on a special provision of the Final Rule applicable to certain foreign jurisdictions where limitations in the legal or operational infrastructure of the jurisdiction make it impracticable for the CSE and its counterparty to post initial margin pursuant to custodial arrangements that comply with the Final Margin Rule (``non- segregation jurisdictions''). The new information collections covered by this notice require CSEs that avail themselves of the special provisions for non-netting jurisdictions and non-segregation jurisdictions, respectively, to maintain books and records properly documenting that all of the requirements of the special provision(s) upon which they rely are satisfied (including policies and procedures ensuring that they are in compliance with any applicable requirements).