[Federal Register Volume 81, Number 185 (Friday, September 23, 2016)]
[Notices]
[Pages 65630-65631]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22957]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA), 
this notice announces that the Information Collection Request (ICR) 
abstracted below has been forwarded to the Office of Management and 
Budget (OMB) for review and comment. The ICR describes the nature of 
the information collection and its expected costs and burden.

DATES: Comments must be submitted on or before October 24, 2016.

ADDRESSES: Comments regarding the burden estimate or any other aspect 
of the information collection, including suggestions for reducing the 
burden, may be submitted directly to the Office of Information and 
Regulatory Affairs (OIRA) in OMB, within 30 days of the notice's 
publication, by email at [email protected]. Please identify 
the comments by OMB Control No. 3038-0074. Please provide the 
Commission with a copy of all submitted comments at the address listed 
below. Please refer to OMB Reference No. 3038-0074, found on http://reginfo.gov. Comments may also be mailed to the Office of Information 
and Regulatory Affairs, Office of Management and Budget, Attention: 
Desk Officer for the Commodity Futures Trading Commission, 725 17th 
Street NW., Washington, DC 20503, and to: Christopher Kirkpatrick, 
Secretary of the Commission, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581 or 
by Hand Deliver/Courier at the same address; or through the Agency's 
Web site at http://comments.cftc.gov. Follow the instructions for 
submitting comments through the Web site.
    A copy of the supporting statements for the collection of 
information discussed above may be obtained by visiting http://
RegInfo.gov. 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.

FOR FURTHER INFORMATION CONTACT: Steven A. Haidar, Attorney-Advisor, 
Division of Market Oversight, Commodity Futures Trading Commission, 
(202) 418-5611; email: [email protected], and refer to OMB Control No. 
3038-0074.

SUPPLEMENTARY INFORMATION: 
    Title: Core Principles and Other Requirements for Swap Execution 
Facilities (OMB Control No. 3038-0074). This is a request for extension 
of a currently approved information collection.
    Abstract: Title VII of the Dodd-Frank Wall Street Reform and 
Consumer Protection Act (Dodd-Frank Act) added new section 5h to the 
Commodity Exchange Act (CEA) to impose requirements concerning the 
registration and operation of SEFs, which the Commission has 
incorporated in part 37 of its regulations.\1\ These information 
collections are needed for the Commission to ensure that SEFs 
registered with the Commission (and entities applying for SEF 
registration) comply with these requirements. Among other requirements, 
part 37 of the Commission's regulations imposes SEF registration 
requirements for a trading platform or system, obligates SEFs to 
provide transaction confirmations to swap counterparties, and requires 
SEFs to comply with 15 enumerated core principles.\2\
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    \1\ In general, this OMB Control Number covers all information 
collections in part 37 of the Commission's regulations, including 
Subpart A and the SEF core principles (i.e., Subparts B and C). 
However, any information collections related to Sec.  37.10 of the 
Commission's regulations are not included under this control number 
and are instead subject to a separate information collection with 
OMB Control Number 3038-0099 (Process for a Swap Execution Facility 
or Designated Contract Market to Make a Swap Available to Trade).
    \2\ These 15 core principles establish standards with respect to 
SEFs: Enforcing rules; listing contracts for trading that are not 
readily susceptible to manipulation; monitoring trading to prevent 
market manipulation; obtaining information; adopting position limits 
or position accountability levels; adopting rules to enforce 
financial integrity of swaps transactions entered on or through the 
SEF; adopting rules to provide for the exercise of emergency 
authority, in consultation with the Commission; making public 
information regarding prices and volume on a timely basis; 
maintaining records of all activities of the business of the 
contract market in a form and manner acceptable to the Commission 
for five years; avoiding rules that result in unreasonable 
restraints of trade or anticompetitive burden on trading; enforcing 
rules to minimize conflicts of interest in its decision-making 
process; maintaining adequate financial resources; establishing 
system safeguards; and designating a chief compliance officer.
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    The Commission initially estimated that there would be 35 SEFs 
registered with the Commission, but in the 60-Day Notice of Intent to 
Renew Collection 3038-0074 (60-Day Renewal Notice), the Commission 
stated that 22 SEFs, rather than 35 SEFs as initially estimated, were 
registered with the Commission.\3\ However, since the publication of 
the 60-Day Renewal Notice, the Commission has granted permanent 
registration to an additional SEF, for a total of 23 registered 
SEFs.\4\ Accordingly, the Commisison is revising the below burden 
statement from the 60-Day Renewal Notice to account for the increase 
from 22 to 23 registered SEFs.
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    \3\ See 81 FR 47779, 47780 (July 22, 2016).
    \4\ Commission granted permanent registration to the additional 
SEF on August 23, 2016.
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    The Commission did not receive any relevant comments on the 60-Day 
Renewal Notice.

[[Page 65631]]

    Burden Statement: The Commission estimates that a respondent's 
burden for this information collection will be (i) 1,000 on-going 
annual burden hours per respondent registered SEF and (ii) 300 burden 
hours per respondent applicant for permanent SEF registration.\5\
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    \5\ The Commission notes that SEFs did not exist prior to either 
the Dodd-Frank Act or the Commission's original submission of this 
OMB Control Number, and so the Commission is revising its burden 
estimate now that it has had the opportunity to observe SEFs' 
operations and receive feedback from market participants. The 
Commission notes that while its revised estimate of 1,000 annual 
burden hours per respondent SEF is an increase from its original 
estimate of 308 burden hours per respondent SEF, the Commission's 
estimate does not represent any new information collection burdens 
or adjustments to existing information collections. See 78 FR 33476, 
33551 (June 4, 2013) (discussing the Commission's original PRA 
estimate).
    The Commission further notes that the separate estimate of 300 
burden hours for applicants for permanent SEF registration does not 
represent new information collection burdens or adjustments to 
existing information collections. Rather, while the Commission did 
consider the burden hours related to the SEF application process in 
its original information collection submission for this OMB Control 
Number, the Commission did not explicitly distinguish the burden 
hours related to the registration process for SEF applicants from 
the Commission's estimate of the on-going annual burden hours for 
registered SEFs, but rather provided an aggregate number. See id. at 
33549-51. For the sake of clarity, the Commission is explicitly 
distinguishing in this notice between the burden hours for 
registered SEFs and for applicants for SEF registration.

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                 Annual Burden Hours for Registered SEFs
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Respondents/Affected           Registered SEFs.
 Entities:.
Estimated number of            23. \1\
 respondents:.
Estimated annual burden hours  1,000 burden hours.
 per respondent:.
Estimated total annual burden  23,000 hours. \2\
 on respondents:.
Frequency of collection:.....  Per trade day. \3\
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       Burden Hours for Applicants for Permanent SEF Registration
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Respondents/Affected           Applicants for SEF Registration.
 Entities:.
Estimated number of            4. \4\
 respondents:.
Estimated annual burden hours  300 burden hours.
 per respondent:.
Estimated total annual burden  1,200 burden hours. \5\
 on respondents:.
Frequency of collection:.....  Initial registration.
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\1\ In the part 37 final rule release, the Commission estimated that
  there would be 35 SEFs. See 78 FR 33476, 33549 (June 4, 2013). The
  Commission, however, notes that 23 SEFs are currently registered with
  the Commission. In the 60-Day Renewal Notice, the Commission stated
  that there were 22 then-registered SEFs; however, since the pulication
  of the 60-Day Renewal Notice, the Commission has granted permanent
  registration to an additional SEF. Accordingly, the revised aggregate
  burden hour estimate accounts for both the increased annual burden
  hours estimate to 1,000 hours per SEF as well as the revised number of
  SEFs to 23.
\2\ 1,000 average annual burden hours per respondent SEF x 23 registered
  SEFs = 23,000 total burden hours for all registered SEFs.
\3\ The Commission notes that registered SEFs also are required to
  provide four quarterly reports and one annual report as part of their
  annual information collection obligations.
\4\ Based on the number of applicants that have applied for permanent
  SEF registration since the Commission first granted permanent
  registration status to SEFs on January 22, 2016, the Commission
  expects to receive four applications per year for permanent SEF
  registration.
\5\ 300 average initial burden hours per respondent SEF applicant x 4
  anticipated SEF applicants = 1,200 total burden hours incurred for all
  anticipated SEF applicants per year.


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

    Dated: September 20, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-22957 Filed 9-22-16; 8:45 am]
 BILLING CODE 6351-01-P