[Federal Register Volume 77, Number 220 (Wednesday, November 14, 2012)]
[Notices]
[Pages 67816-67819]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-27623]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: On June 15, 1984, the Office of Management and Budget (OMB) 
delegated to the Board of Governors of the Federal Reserve System 
(Board) its approval authority under the Paperwork Reduction Act (PRA), 
pursuant to 5 CFR 1320.16, to approve of and assign OMB control numbers 
to collection of information requests and requirements conducted or 
sponsored by the Board

[[Page 67817]]

under conditions set forth in 5 CFR 1320 Appendix A.1. Board-approved 
collections of information are incorporated into the official OMB 
inventory of currently approved collections of information. Copies of 
the Paperwork Reduction Act Submission, supporting statements and 
approved collection of information instruments are placed into OMB's 
public docket files. The Federal Reserve may not conduct or sponsor, 
and the respondent is not required to respond to, an information 
collection that has been extended, revised, or implemented on or after 
October 1, 1995, unless it displays a currently valid OMB control 
number.

DATES: Comments must be submitted on or before January 14, 2013.

ADDRESSES: You may submit comments, identified by FR 1379, FR 2436, FR 
3036, FR 4001, by any of the following methods:
     Agency Web site: http://www.federalreserve.gov. Follow the 
instructions for submitting comments at http://www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm.
     Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
     Email: [email protected]. Include OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Robert deV. Frierson, 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 web site at 
www.federalreserve.gov/generalinfo/foia/ProposedRegs.cfm as submitted, 
unless modified for technical reasons. Accordingly, your comments will 
not be edited to remove any identifying or contact information. Public 
comments may also be viewed electronically or in paper form in Room MP-
500 of the Board's Martin Building (20th and C Streets NW.) between 
9:00 a.m. and 5:00 p.m. on weekdays.
    Additionally, commenters may send a copy of their comments to the 
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: A copy of the PRA OMB submission, 
including the proposed reporting form and instructions, supporting 
statement, and other documentation will be placed into OMB's public 
docket files, once approved. These documents will also be made 
available on the Federal Reserve Board's public Web site at: http://www.federalreserve.gov/boarddocs/reportforms/review.cfm or may be 
requested from the agency clearance officer, whose name appears below.
    Federal Reserve Board Clearance Officer--Cynthia Ayouch--Division 
of Research and Statistics, Board of Governors of the Federal Reserve 
System, Washington, DC 20551 (202) 452-3829. Telecommunications Device 
for the Deaf (TDD) users may contact (202) 263-4869, Board of Governors 
of the Federal Reserve System, Washington, DC 20551.

SUPPLEMENTARY INFORMATION: 

Request for Comment on Information Collection Proposals

    The following information collections, which are being handled 
under this delegated authority, have received initial Board approval 
and are hereby published for comment. At the end of the comment period, 
the proposed information collections, along with an analysis of 
comments and recommendations received, will be submitted to the Board 
for final approval under OMB delegated authority. Comments are invited 
on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Federal Reserve's functions; including 
whether the information has practical utility;
    b. The accuracy of the Federal Reserve'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 start up costs and costs of operation, 
maintenance, and purchase of services to provide information.

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, With Revision, of the Following Reports

    1. Report title: Consumer Satisfaction Questionnaire, the Federal 
Reserve Consumer Help--Consumer Survey, the Consumer Online Complaint 
Form, and the Appraisal Complaint Form.
    Agency form number: FR 1379a, FR 1379b, FR 1379c, and FR 1379d.
    OMB control number: 7100-0135.
    Frequency: Event generated.
    Reporters: Consumers, appraisers, and financial institutions.
    Estimated annual reporting hours: FR 1379a: 116 hours; FR 1379b: 
167 hours; FR 1379c: 1,351 hours; FR 1379d: 100 hours.
    Estimated average hours per response: FR 1379a: 5 minutes; FR 
1379b: 5 minutes; FR 1379c: 10 minutes; FR 1379d: 30 minutes.
    Number of respondents: FR 1379a: 1,391; FR 1379b: 2,001; FR 1379c: 
8,107; FR 1379d: 200.
    General description of report: This information collection is 
voluntary and is authorized by law pursuant to section 11(a) of the 
Federal Reserve Act (12 U.S.C. 248(a), and sections 3(q) and 8 of the 
Federal Deposit Insurance Act (FDIC Act), 12 U.S.C. 1813(Q) and 1818. 
Additionally the Federal Reserve is authorized to collect the 
information on the FR 1379d pursuant to section 1103 of the Financial 
Institutions and Reform, Recovery, and Enforcement Act, which 
authorizes the Federal Financial Institutions Examination Council--
Appraisal Subcommittee to ``perform research, as [it] considers 
appropriate,'' for the purpose of carrying out its duties, 12 U.S.C. 
3335. The FR 1379a is not considered confidential. The FR 1379b 
collects the respondent's name and the respondent may provide other 
personal information and information regarding his or her complaint. 
The FR 1379c collects the respondent's third-party representative if 
the respondent has such a representative. The proposed FR 1379d would 
collect the respondent's name and the respondent may provide other 
personal information and information regarding his or her complaint. 
Thus, some of the information collected on the FR 1379b, FR 1379c, and 
FR 1379d may be considered confidential under the Freedom of 
Information Act (5 U.S.C. 552(b)(4), (b)(6), (b)(7)).
    Abstract: The FR 1379a questionnaire is sent to consumers who have 
filed complaints with the Federal Reserve against state member banks. 
The information is used to assess their satisfaction with the Federal 
Reserve's handling and written response to their complaint at the 
conclusion of an investigation. The FR 1379b questionnaire is sent as 
needed to consumers who contact the FRCH to file a complaint or 
inquiry. The information is used to determine whether consumers are 
satisfied with the way the FRCH handled their complaint. Consumers use 
the FR 1379c to electronically submit a complaint against a financial 
institution to the FRCH.

[[Page 67818]]

    Current Actions: The Federal Reserve proposes to revise the FR 1379 
by implementing a new voluntary Appraisal Complaint Form (FR 1379d). 
The FR 1379d would collect information about complaints regarding a 
regulated institution's non-compliance with the appraisal independence 
standards and the Uniform Standards of Professional Appraisal 
Practice,\1\ including complaints from appraisers, individuals, 
financial institutions, and other entities. The information collected 
is necessary so that the federal agencies \2\ may better assist the 
Federal Financial Institutions Examination Council--Appraisal 
Subcommittee (FFIEC-ASC) \3\ in its efforts to implement Dodd-Frank 
Wall Street Reform and Consumer Protection Act \4\ that requires a 
national hotline be established for appraisal related complaints.
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    \1\ www.appraisalfoundation.org.
    \2\ ``Agencies'' include the Board of Governors of the Federal 
Reserve System, Federal Deposit Insurance Corporation, Office of the 
Comptroller of the Currency, National Credit Union Administration, 
and Consumer Financial Protection Bureau.
    \3\ Title XI of the Financial Institutions Reform, Recovery, and 
Enforcement Act (FIRREA) of 1989 amended the FIRIRCA Act of 1978 to 
create the ASC ``within'' the FFIEC on August 9, 1989. Per Title XI, 
the ASC's mission is to monitor federal, state, and appraisal 
industry initiatives relative to the appraisal process at federally 
regulated financial institutions and maintain a national registry of 
appraisers eligible to perform appraisals for federally related real 
estate transactions. As an independent FFIEC subcommittee, the ASC 
is funded by fees collected through the registry. The ASC board has 
seven members, one from each of these agencies: OCC, FRB, FDIC, 
NCUA, CFPB, FHFA and U.S. Department of Housing and Urban 
Development (HUD). The ASC Web site may be found at www.asc.gov/Home.aspx.
    \4\ Dodd-Frank Wall Street Reform and Consumer Protection Act 
Sec.  1473, Public Law 111-203, 124 Stat. 1376, July 21, 2010.
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    2. Report title: Semiannual Report of Derivatives Activity.
    Agency form number: FR 2436.
    OMB control number: 7100-0286.
    Frequency: Semiannually.
    Reporters: U.S. dealers of over-the-counter derivatives.
    Estimated annual reporting hours: 2,120 hours.
    Estimated average hours per response: 212 hours.
    Number of respondents: 5.
    General description of report: This information collection is 
voluntary (12 U.S.C. 225a, 248(a), 348(a), 263, and 353-359) and is 
given confidential treatment under the Freedom of Information Act (5 
U.S.C. 552(b)(4)).
    Abstract: This collection of information complements the triennial 
Survey of Foreign Exchange and Derivatives Market Activity (FR 3036; 
OMB No. 7100-0285). The FR 2436 collects similar data on the 
outstanding volume of derivatives, but not on derivatives turnover. The 
Federal Reserve conducts both surveys in coordination with other 
central banks and forwards the aggregated data furnished by U.S. 
reporters to the Bank for International Settlements (BIS), which 
publishes global market statistics that are aggregations of national 
data.
    Current Actions: The Federal Reserve proposes to revise the FR 2436 
by collecting additional data on credit default swaps (CDS) 
counterparties in Table 4E. Following the broad expansion of CDS data 
collected on the report and implemented during 2010 and 2011, it was 
determined that the data on location of CDS counterparties needed 
further refinement in order to align the data collection with current 
BIS standards and to improve the interpretive power of the CDS 
counterparty data.
    3. Report title: Central Bank Survey of Foreign Exchange and 
Derivative Market Activity.
    Agency form number: FR 3036.
    OMB control number: 7100-0285.
    Frequency: One-time.
    Reporters: Financial institutions that serve as intermediaries in 
the wholesale foreign exchange and derivatives market and dealers.
    Estimated annual reporting hours: Turnover Survey, 2,275 hours; 
Outstandings survey, 210 hours.
    Estimated average hours per response: Turnover Survey, 65 hours; 
Outstandings survey, 70 hours.
    Number of respondents: Turnover Survey, 35; Outstandings survey, 3.
    General description of report: This information collection is 
voluntary (12 U.S.C. 225a and 263) and is given confidential treatment 
(5 U.S.C. 552(b)(4)).
    Abstract: The FR 3036 is the U.S. part of a global data collection 
that is conducted by central banks once every three years. More than 50 
central banks plan to conduct the survey in 2013. The BIS compiles 
aggregate national data from each central bank to produce global market 
statistics. The Federal Reserve System and other government agencies 
use the survey to monitor activity in the foreign exchange and 
derivatives markets. Respondents also use the published data to gauge 
their market share.
    Current actions: The Turnover portion would cover approximately 35 
market-making financial institutions. The Derivatives Outstanding 
portion would cover only three firms because it is collected (on a 
fully consolidated basis) only from derivatives dealers that are 
headquartered in the United States and that do not report the FR 2436 
and because market-making in OTC derivatives is more concentrated than 
in foreign exchange. The Federal Reserve Bank of New York plans to 
invite the three institutions targeted for the Derivatives Outstanding 
portion of the survey to participate instead on the FR 2436 beginning 
in June 2013, in which case the Derivatives Outstanding portion of the 
survey would not be conducted in 2013.
    Differences between the proposed survey and the 2010 survey are:
    1. A more detailed counterparty breakdown for ``other financial 
institutions'' for credit default swap reporting would be added to the 
Outstanding survey to be consistent with the FR 2436. The growth in the 
credit derivative market has made these data an important component of 
understanding the structure and activity of the overall over-the-
counter derivatives market.
    2. The Canadian dollar would be added in tables for foreign 
exchange and interest rate derivatives on the Outstanding survey to be 
consistent with the FR 2436 and to align with the BIS global reporting 
requirements.
    3. An additional 18 currency pairs would be added in tables for 
foreign exchange transactions on the Turnover survey, accompanied by 
full instrument and counterparty breakdowns. This change would 
facilitate reporting of currency pairs in carry trade strategies and 
ensure comprehensive identification of turnover in all participating 
countries' currencies.
    4. A new item ``of which non-deliverable'' would be added under the 
total of ``outright forwards'' for six emerging market currency pairs 
opposite the U.S. dollar that have significant non-deliverable forward 
(NDF) volumes, and for the total amount of NDFs included under 
``outright forwards.'' In prior surveys, NDF turnover was captured 
under ``outright forwards.'' With some previously non-deliverable 
currencies now being traded in deliverable forms, this new item will 
help distinguish between their deliverable and non-deliverable forward 
turnover. These data will provide insight into turnover in currencies 
for which there is not a deliverable market offshore due to limitations 
placed on such activity by local market authorities.
    5. The counterparty breakdown would be modified to add more 
granularity to the ``other financial institutions'' category for the 
foreign exchange section of the Turnover survey. Other financial 
institutions would be split according to their primary business

[[Page 67819]]

activity into non-reporting banks, institutional investors, hedge funds 
and proprietary trading firms, and official sector financial 
institutions, Other, and Undistributed.\5\ This additional granularity 
would provide better information on the contribution of the different 
types of other financial institutions, which have accounted for a large 
part of the growth in foreign exchange turnover in recent years, to 
foreign exchange market growth more explicitly.
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    \5\ ``Undistributed'' was added to prepare for the possibility 
that some reporting dealers may be technically incapable of 
reporting in full the new breakdowns under ``other financial 
institutions.'' This entry captures the amount of ``other financial 
institutions'' turnover that fails to be allocated into one of the 
sub-categories above.
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    6. A new item ``of which prime brokered'' would be added to the 
foreign exchange section of the Turnover survey to capture deals done 
via prime brokerage relationships for the reported totals for each 
instrument and currency pair. This would help assess the extent to 
which prime brokerage adds to foreign exchange turnover and which 
instruments and currencies are favored by prime brokerage customers. It 
will also add some insight to the geographic distribution of prime 
brokerage activity. Only survey respondents that act as foreign 
exchange prime brokers will need to report this item.
    7. A new item ``of which retail driven'' would be added to the 
reported totals for each instrument and currency pair for the foreign 
exchange section of the Turnover survey. This new item will capture 
transactions with wholesale financial counterparties that cater to 
retail investors as well as direct transactions with non-wholesale 
investors. This would help assess the extent to which retail customers 
contribute to the turnover between dealers and could provide insight in 
to the geographic distribution of retail investors and the instrument 
and currencies preferred by retail investors.
    8. The Execution Method schedule on the Turnover survey would be 
modified to breakdown execution methods for foreign exchange turnover 
by instrument (spot, forward, swaps, and option) and counterparty 
(reporting dealers, other financial institutions, and non-financial 
institutions). The enhanced breakdown of the execution method 
categories better reflects current market practices and simultaneously 
disentangles execution methods from counterparty types. Execution would 
be reported as:
    a. Voice-Direct--not intermediated by a third party
    b. Voice-Indirect--intermediated by a third party
    c. Electronic-Direct--not intermediated by a third party
    i. Single bank proprietary trading system (electronic-direct)
    ii. Other (electronic-direct) such as: Reuters Conversational 
Dealing, Bloomberg, etc.
    d. Electronic-Indirect--intermediated by a third party electronic 
platform, i.e., via a matching system
    i. Reuters Matching or Electronic Broking Services (EBS)--major 
electronic trading platforms that are geared towards the interdealer 
market
    ii. Other electronic communication networks (ECNs)--multi-bank 
dealing systems such as Currenex, FXall, Hotspot, Bloomberg Tradebook, 
etc.
    iii. Other (electronic-indirect)
    e. Undistributed--captures the amount of turnover for each 
instrument and counterparty that fails to be allocated into one of the 
aforementioned execution method categories.
    9. The Turnover survey would add three quantitative questions on 
``retail driven'' transactions asking for estimated percentage shares 
of transactions with ``wholesale'' counterparties, ``non-wholesale'' 
on-line transactions, and ``non-wholesale'' voice transactions.\6\ This 
change would allow for the differentiation of turnover in the ``non-
financial customer'' category of customer trades driven by retail 
investors versus those that are wholesale driven. This would yield 
information useful to assess the extent to which retail investors 
contribute to turnover between dealers and their customers. It may also 
provide some insight into the currency pairs and methods of execution 
favored by retail investors.
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    \6\ For ease of reporting, the ``non-wholesale'' transactions 
excludes branch retail spot transactions, transfers of funds 
denominated in different currencies across any two accounts, and 
electronic transactions using ATM, credit card, and stored value 
transactions that are executed in a foreign currency. They would 
also exclude transactions conducted by retail clients as part of a 
commercial transaction even if denominated in a foreign currency.
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    10. The Turnover survey would add three quantitative questions on 
algorithmic and high frequency trading asking for estimated percentage 
shares of these types in spot turnover reported with hedge funds and 
proprietary trading firms for all currency pairs, major currency pairs 
and non-major currency pairs. This change would allow for estimates of 
the growth in foreign exchange turnover due to high frequency trading, 
which has expanded rapidly in recent years. As high frequency trading 
is a general trading style adoptable by any firm with access to the 
relevant technology, it is not practical to capture this activity under 
a single counterparty category.

Proposal To Approve Under OMB Delegated Authority the Extension for 
Three Years, Without Revision, of the Following Report

    Report title: Domestic Branch Notification.
    Agency form number: FR 4001.
    OMB control number: 7100-0097.
    Frequency: On occasion.
    Reporters: State member banks (SMBs).
    Estimated annual reporting hours: 501 hours.
    Estimated average hours per response: 30 minutes for expedited 
notifications and 1 hour for nonexpedited notifications.
    Number of respondents: 207 expedited and 397 nonexpedited.
    General description of report: This information collection is 
mandatory per section 9(3) of the Federal Reserve Act (12 U.S.C. 321). 
This requirement is implemented by the provisions of section 208.6 of 
the Board's Regulation H (12 CFR 208.6). The individual respondent 
information in the notification is not considered confidential.
    Abstract: The Federal Reserve Act and Regulation H require an SMB 
to seek prior approval of the Federal Reserve System before 
establishing or acquiring a domestic branch. Such requests for approval 
must be filed as notifications at the appropriate Reserve Bank for the 
SMB. Due to the limited information that an SMB generally has to 
provide for branch proposals, there is no formal reporting form for a 
domestic branch notification. An SMB is required to notify the Federal 
Reserve by letter of its intent to establish one or more new branches 
and provide with the letter evidence that public notice of the proposed 
branch(es) has been published by the SMB in the appropriate 
newspaper(s). The Federal Reserve uses the information provided to 
fulfill its statutory obligation to review any public comment on 
proposed branches before acting on the proposals and otherwise to 
supervise SMBs.

    Board of Governors of the Federal Reserve System, November 8, 
2012.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2012-27623 Filed 11-13-12; 8:45 am]
BILLING CODE 6210-01-P