[Federal Register Volume 80, Number 94 (Friday, May 15, 2015)]
[Notices]
[Pages 27930-27932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-11726]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection 3038-0092, Customer Clearing Documentation and Timing 
of Acceptance for Clearing

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') 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 and to allow 60 days for public comment. The 
Commission adopted final rules, which prohibit

[[Page 27931]]

swap dealers (``SDs'') and major swap participants (``MSPs'') from 
interfering or attempting to influence the decisions of affiliated 
future commission merchants (``FCMs'') with regard to the provision of 
clearing services and activities and prohibit FCMs from permitting them 
to do so. The Commission also adopted rules to prohibit SDs and MSPs 
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 Commodity Exchange Act. The Commission 
adopted further rules requiring that derivatives clearing organization 
(``DCO'') rules provide for the non-discriminatory clearing of swaps 
executed bilaterally or through an unaffiliated designated contract 
market or swap execution facility. This notice solicits comments on the 
obligation to maintain records related to clearing documentation 
between the customer and the customer's clearing member.

DATES: Comments must be submitted on or before July 14, 2015.

ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0092, 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: 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.
     Federal eRulemaking Portal: http://www.regulations.gov/. 
Follow the instructions for submitting comments through the Portal.
    Please submit your comments using only one method.

FOR FURTHER INFORMATION CONTACT: Christopher Hower, Special Counsel, 
Division of Clearing and Risk, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581; 
(202) 418-6703; email: [email protected].

SUPPLEMENTARY INFORMATION: 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 and 
includes agency requests or requirements that members of the public 
submit reports, keep records, or provide information to a third party. 
Section 3506(c)(2)(A) of the PRA, 44 U.S.C. 3506(c)(2)(A), requires 
Federal agencies to provide a 60-day notice in the Federal Register 
concerning each proposed collection of information before submitting 
the collection to OMB for approval. To comply with this requirement, 
the CFTC is publishing notice of the proposed collection of information 
listed below.
    Title: Customer Clearing Documentation and Timing of Acceptance for 
Clearing (OMB Control No. 3038-0092). This is a request for extension 
of a currently approved information collection.
    Abstract: Section 4d(c) of the Commodity Exchange Act (``CEA'' or 
``Act''), as amended by the Dodd-Frank Act, directs the Commission to 
require futures commission merchants to implement conflict of interest 
procedures that address such issues the Commission determines to be 
appropriate. Similarly, section 4s(j)(5), as added by the Dodd-Frank 
Act, requires swap dealers and major swap participants to implement 
conflict of interest procedures that address such issues the Commission 
determines to be appropriate. Section 4s(j)(5) also requires swap 
dealers and major swap participants 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 swap 
dealer and major swap participant 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 rules provide for the non-discriminatory clearing of swaps 
executed bilaterally or through an unaffiliated designated contract 
market or swap execution facility.
    Pursuant to these provisions, the Commission adopted Sec.  
1.71(d)(1) relating to FCMs and Sec.  23.605(d)(1) relating to swap 
dealers and major swap participants. These regulations prohibit swap 
dealers and major swap participants from interfering or attempting to 
influence the decisions of affiliated FCMs with regard to the provision 
of clearing services and activities and would prohibit FCMs from 
permitting them to do so. The Commission also adopted Sec.  23.607 to 
prohibits a swap dealer and major swap participant 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. The Commission adopted Sec.  39.12(b)(2) to require that 
derivatives clearing organization rules provide for the non-
discriminatory clearing of swaps executed bilaterally or through an 
unaffiliated designated contract market or swap execution facility.
    As discussed further below, the additional 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.
    The information collection obligations imposed by the regulations 
are necessary to implement certain provisions of the CEA, including 
ensuring that registrants exercise effective risk management and for 
the efficient operation of trading venues among SDs, MSPs, FCMs, and 
DCOs.
    With respect to the 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 enhance the quality, usefulness, and clarity of 
the information to be collected; and
     Ways to minimize the burden of collection of information 
on those who are to respond, including through the use of appropriate 
automated electronic, mechanical, or other technological collection 
techniques or other forms of information technology; e.g., permitting 
electronic submission of responses.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
http://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

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confidential treatment of the exempt information may be submitted 
according to the procedures established in Sec.  145.9 of the 
Commission's regulations.\1\
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    \1\ 17 CFR 145.9.
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    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse or remove any or all of your 
submission from http://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 Information Collection Request 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.
    Burden Statement: The respondent burden for this collection is 
estimated to average between 16 hours for FCMs and SDs and MSPs, and 40 
hours for DCOs per response. This estimate includes the total time, 
effort, or financial resources expended by persons to generate, 
maintain, retain, disclose, or provide information to or for a federal 
agency. The total annual cost burden per respondent is estimated to be 
$736 for FCMs, SDs, and MSPs and $1,840 for DCOs. The Commission based 
its calculation on an hourly wage rate of $46 for a financial manager 
to maintain the data.
    Respondents/Affected Entities: Swap dealers, Major Swap 
Participants, Futures Commission Merchants, and Derivatives Clearing 
Organizations.
    Estimated number of respondents: 239 Swap Dealers, Major Swap 
Participants and Futures Commission Merchants, and 14 Derivatives 
Clearing Organizations.
    Estimated total annual burden on respondents: 3,824 for FCMs, SDs, 
and MSPs, and 560 hours for DCOs.
    Frequency of collection: As needed.

    Authority: 44 U.S.C. 3501 et seq.

    Dated: May 11, 2015.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2015-11726 Filed 5-14-15; 8:45 am]
 BILLING CODE 6351-01-P