[Federal Register Volume 77, Number 191 (Tuesday, October 2, 2012)]
[Notices]
[Pages 60114-60116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-24131]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of intent to renew.

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SUMMARY: The Commodity Futures Trading Commission (CFTC) is announcing 
an opportunity for public comment on the proposed collection of certain 
information by the agency. Under the Paperwork Reduction Act (44 U.S.C. 
3501 et seq.), Federal agencies are required to publish notice in the 
Federal Register concerning each proposed collection of information, 
including each proposed extension of an existing collection of 
information, and to allow 60 days for public comment in response to the 
notice. This notice solicits comments on collections of information 
provided for by the Disclosure and Retention of Certain Information 
Related to Cleared Swaps, Customer Collateral.

DATES: Comments must be submitted on or before December 3, 2012.

[[Page 60115]]


ADDRESSES: Send comments regarding the burden estimated or any other 
aspect of the information collection, including suggestions for 
reducing the burden, to the addresses below. Please refer to OMB 
Control No. 3038-0091 in any correspondence.

Martin B. White, Office of the General Counsel, Commodity Futures 
Trading Commission, 1155 21st Street NW., Washington, DC 20581; and
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Attention: Desk Officer for CFTC, 725 17th Street, Washington, 
DC 20503.

    Comments may also be submitted by any of the following methods:
    The agency's Web site, at http://comments.cftc.gov. Follow the 
instructions for submitting comments through the Web site.
    Mail: Sauntia S. Warfield, Assistant 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.
    Federal eRulemaking Portal: http://www.regulations.gov. Follow the 
instructions for submitting comments.
    Please submit your comments using only one method and identity that 
it is for the renewal of 3038-0091.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
www.cftc.gov. 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. See 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Martin B. White, Office of the General 
Counsel, Commodity Futures Trading Commission, 1155 21st Street NW., 
Washington, DC 20581, (202) 418-5129; Fax: (202) 418-5567; email: 
[email protected] and refer to OMB Control No. 3038-0091.

SUPPLEMENTARY INFORMATION: Title: Disclosure and Retention of Certain 
Information Related to Cleared Swaps, Customer Collateral (OMB Control 
No. 3038-0091). This is a request for extension of a currently approved 
information collection. Abstract: Under the PRA, 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(c) and 
include agency requests or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
Section 350(c)(2)(A) of the PRA, 44 Section 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 to approve. To comply with this 
requirement, the CFTC is publishing notice of the proposed collection 
of the information below.
    With respect to the following 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 minimize the burden of collection of information on those 
who are to respond, including through the use of appropriate 
electronic, mechanical, or other technological collection techniques or 
other forms of information technology; e.g., permitting electronic 
submission of responses.

Disclosure and Retention of Certain Information Related to Cleared 
Swaps, Customer Collateral. OMB Control No. 3038-0091--Extension

    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. The OMB control numbers for the 
CFTC's regulations were published on December 30, 1981. See 46 FR 63035 
(Dec. 30, 1981). The Federal Register notice with a 60-day comment 
period soliciting comments on this collection of information was 
published on December 29, 2012 (73 FR 81916).
    Burden statement: Section 22.2(g) requires each futures commission 
merchant (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. Section 22.5(a) requires an FCM or 
derivatives clearing organization (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. 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 or the 
Collecting FCM, as appropriate, 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 or 
the Collecting FCM, as appropriate, with information sufficient to 
identify each customer's portfolio of rights and obligations arising 
out of cleared swaps intermediated by the FCM. Section 22.12 requires 
that each Collecting FCM and DCO, 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 Collecting 
FCM or DCO, and record certain information about the amount of 
collateral required for each Cleared Swaps Customer and the sum of 
these amounts. 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 Commission estimates the average burden of this collection of 
information as follows:
    The recordkeeping and disclosure requirements of sections 22.2(g) 
and 22.11 are expected to apply to approximately 100 entities on a 
daily basis. The recordkeeping requirement of section 22.5 is expected 
to apply to approximately 100 entities on an approximately annual 
basis. Based on experience with analogous recordkeeping and disclosure 
requirements for FCMs in futures transactions, the recordkeeping and 
disclosure required by section 22.2(g) is expected to require about 100 
hours annually per entity, for a total burden of approximately 10,000 
hours.
    The disclosure required by section 22.11 involves information that 
FCMs that intermediate swaps generate and

[[Page 60116]]

use in the usual and customary ordinary course of their business. It is 
expected that the required disclosure will be performed using automated 
data systems that FCMs maintain and use in the usual and customary 
ordinary course of their business but that certain additional 
functionality will need to be added to these systems to perform the 
required disclosure. Because of the novel character of proposed section 
22.11, it is not possible to make a precise estimate of the paperwork 
burden. The necessary modifications to, and maintenance of, systems may 
require a range of between 20 and 40 hours of work annually.
    The recordkeeping required by section 22.12 involves information 
that Collecting FCMs and DCOs will receive pursuant to section 22.11 or 
that they generate and use in the usual and customary ordinary course 
of their business. It is expected that the required recordkeeping will 
be performed using automated data systems that Collecting FCMs and DCOs 
maintain and use in the usual and customary ordinary course of their 
business but that certain additional functionality will need to be 
added to these systems to perform the required disclosure. Because of 
the novel character of section 22.12, it is not possible to make a 
precise estimate of the paperwork burden. The necessary modifications 
to, and maintenance of, systems may require a range of between 20 and 
40 hours of work annually. It is expected that the required 
recordkeeping will be performed by approximately 100 entities. The 
total annual burden for section 22.11 therefore is estimated at 2,000 
to 4,000 hours.
    Section 22.16 would apply to the same estimated 100 entities as 
sections 22.2(g), 22.5(a), and 22.11. The required disclosure would 
have to be made once each time a swaps customer begins to be cleared 
through a particular DCO or collecting FCM and each time a DCO or 
collecting FCM through which a customer's swaps are cleared changes it 
polices on the matters covered by the disclosure. It is expected that 
each disclosure would require about 0.2 hours of staff time by staff. 
It is uncertain what average number of swaps customers FCMs will have, 
and what average number of disclosures will be required for each 
customer annually. Assuming an average of 500 customers per FCM and two 
disclosures per customer per year, the estimated total annual burden 
would be 200 hours.
    There are estimated to be no capital costs or operating and 
maintenance costs associated with this collection.

    Dated September 26, 2012.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012-24131 Filed 10-1-12; 8:45 am]
BILLING CODE 6351-01-P