[Federal Register Volume 78, Number 241 (Monday, December 16, 2013)]
[Notices]
[Pages 76144-76146]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-29773]


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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: Notice is hereby given of the final approval of a proposed 
information collection by the Board of Governors of the Federal Reserve 
System (Board) under OMB delegated authority, pursuant to 5 CFR 1320.16 
(OMB Regulations on Controlling Paperwork Burdens on the Public). 
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 statement 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.

FOR FURTHER INFORMATION CONTACT:
Federal Reserve Board Clearance Officer--Cynthia Ayouch--Office of the 
Chief Data Officer, 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.
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.

    Final approval under OMB delegated authority of the implementation 
of the following information collection:
    Report title: Report of Selected Money Market Rates.
    Agency form number: FR 2420.
    OMB Control number: 7100--to be assigned.
    Effective Date: April 1, 2014.

[[Page 76145]]

    Frequency: Daily.
    Reporters: Domestically chartered commercial banks and thrifts that 
have $26 billion or more in total assets; U.S. branches and agencies of 
foreign banks with total third-party assets of $900 million or more.
    Estimated annual reporting hours: Commercial banks and thrifts--
18,750 hours; U.S. branches and agencies of foreign banks--26,250 
hours.
    Estimated average hours per response: Commercial banks and 
thrifts--1.5 hours; U.S. branches and agencies of foreign banks--1 
hour.
    Number of respondents: Commercial banks and thrifts--50; U.S. 
branches and agencies of foreign banks--105.
    General description of report: This information collection is 
authorized by sections 9 and 11(a)(2) of the Federal Reserve Act (12 
U.S.C. 324 and 248(a)) and by section 7(c)(2) of the International 
Banking Act (12 U.S.C. 3105(c)(2)) and may be made mandatory under 
those provisions. Individual respondent data are regarded as 
confidential under the Freedom of Information Act (5 U.S.C. 552(b)(4)) 
(FOIA). Exemption 4 of FOIA exempts from disclosure trade secrets and 
commercial or financial information that meets certain criteria.
    Abstract: The Federal Reserve proposed to implement the mandatory 
Report of Selected Money Market Rates (FR 2420). The FR 2420 would be a 
transaction-based report that collects daily liability data on federal 
funds, Eurodollar transactions, and certificates of deposits (CDs) from 
(1) domestically chartered commercial banks and thrifts that have $26 
billion or more in total assets and (2) U.S. branches and agencies of 
foreign banks with total third-party assets of $900 million or more. 
The FR 2420 data would be used to support a range of functions 
including the daily implementation of monetary policy and the analysis 
of broad money market conditions.
    Current Actions: On June 28, 2013, the Federal Reserve published a 
notice in the Federal Register (78 FR 38976) requesting public comment 
for 60 days on the implementation of the FR 2420. The comment period 
for this notice expired on August 27, 2013. The Federal Reserve 
received six comment letters on the proposed implementation of the FR 
2420: one from several trade organizations, two from commercial banks, 
and three from U.S. branches and agencies of foreign banks. The 
comments are summarized and addressed below.

Summary of Public Comments

A. Duplicative Data

    One U.S. agency of a foreign bank expressed concern that foreign 
banking organizations already provide the Federal Reserve with daily 
transaction level detail on all short-term financing transactions 
through a liquidity collection submitted to the Federal Reserve Bank of 
New York (4G templates). This commenter suggested avoiding unnecessary 
burden by sharing data among the different disciplines within the 
Federal Reserve System. The Federal Reserve compared these data 
collections and determined that there is no meaningful overlap or 
duplicative data between the proposed FR 2420 and the 4G templates or 
the Liquidity Monitoring Reports (FR 2052a; OMB No. 7100--to be 
assigned), which have been proposed to replace the 4G templates.
    The trade organizations stated that the 4G templates require daily 
submissions of similar data by certain large banks, but such 
submissions are made on a two-day lag, which allows reporting banks to 
ensure the accuracy of the data submitted. Since the 4G templates 
already collect (from certain large banks) amount and maturity 
information related to federal funds, Eurodollars, and Wholesale CDs, 
the trade organization strongly recommended making slight enhancements 
to the 4G templates, rather than requiring reporting entities to 
develop an entirely new reporting system to capture essentially the 
same information. These data collections have different data elements 
and are collected for different purposes--money market monitoring 
versus banking supervision. Moreover, the panel for the FR 2420 is a 
larger respondent panel than the panel for the 4G templates. 
Consequently, the Federal Reserve believes the 4G templates could not 
be revised effectively to meet the FR 2420 needs.

B. Burden Estimates

    One U.S. agency of a foreign bank noted that reporting would take 1 
hour each day to prepare each day's data, not 0.825 hour as estimated 
in the FR 2420 proposal. The Federal Reserve reviewed the burden 
estimates and will revise the estimate to reflect this feedback.

C. Submission Deadline

    Most commenters noted the 7:00 a.m. EST deadline would be difficult 
to meet and requested the Board consider a later deadline and a two-day 
lag. After considering these comments, the Federal Reserve determined 
that federal funds and Eurodollar data are needed by 7 a.m. each 
business day for the preceding day's reportable transactions to support 
the implementation of monetary policy and daily market monitoring and 
thus will retain those deadlines. However, upon further investigation, 
the Federal Reserve will extend the CD section deadline to a two day 
lag with a submission deadline of 2 p.m.

D. Implementation Date

    Several commenters noted that additional time would be needed to 
implement and validate data as well as update their systems. The 
Federal Reserve recognizes challenges associated with implementing the 
FR 2420. To provide the necessary lead time, the implementation date 
would be extended to April 1, 2014. However, with this extension, the 
transition periods outlined in the initial proposal regarding the 
submission deadline times would be eliminated.

E. Certificates of Deposit

    One commercial bank requested that the Federal Reserve consider an 
exemption on CDs since the rates rarely change from one day to the 
next. Another commercial bank requested that the threshold be raised to 
$1 million. To reduce reporting burden, therefore, the Federal Reserve 
will raise the threshold on all CDs to $1 million; however, there will 
not be a minimum threshold for the amounts reported on the federal 
funds and Eurodollar transactions.
    The trade organization requested that derivative `market-linked' 
CDs be excluded from the report since (1) the actual embedded floating 
rate may not be easily obtained, (2) calculating such information would 
require significant changes to systems, and (3) these CDs are only a 
small subset of reported CDs. Since, as commenters noted, these CDs 
represent a small amount of reported CDs and excluding them would 
reduce reporting burden, the Federal Reserve will exclude derivative 
`market-linked' CDs from the report.

F. Newly-Acquired Businesses

    The trade organization noted that it was not clear how an 
institution incorporates a new filer into the proposal's reporting 
requirements. Also, the trade organization requested that the final 
proposal include a 12-month transition period for all newly-acquired 
lines of business before such new acquisitions are required to be 
included in the FR 2420. The Federal Reserve will consider these types 
of requests on a case-by-case basis. However, the Federal Reserve 
believes that data from mergers and acquisitions should be

[[Page 76146]]

incorporated into the purchaser's reported data effective on the date 
of the acquisition.

    By order of the Board of Governors of the Federal Reserve 
System, December 11, 2013.
Robert deV. Frierson,
Secretary of the Board.
[FR Doc. 2013-29773 Filed 12-13-13; 8:45 am]
BILLING CODE 6210-01-P