[Federal Register Volume 81, Number 207 (Wednesday, October 26, 2016)]
[Notices]
[Pages 74408-74410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-25925]


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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

[[Page 74409]]

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 November 25, 2016.

ADDRESSES: Comments regarding the burden estimated 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 in OMB, within 30 days of publication of the notice, 
by email at [email protected]. Please identify the comments 
by OMB Control No. 3038-0096. Please provide the Commission with a copy 
of all submitted comments at the address listed below. Please refer to 
OMB Reference No. 3038-0096, 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 the Commission through its Web site at http://comments.cftc.gov. Follow the instructions for submitting comments 
through the Web site.
    Comments may also be mailed to: Christopher Kirkpatrick, Secretary 
of the Commission, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581, or by 
Hand Delivery/Courier at the same address.
    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: Andrew Ridenour, Special Counsel, 
(202) 418-5438, [email protected], or Owen Kopon, Attorney-Advisor, 
(202) 418-5360, [email protected], Division of Market Oversight, and 
refer to OMB Control No. 3038-0096.

SUPPLEMENTARY INFORMATION: 
    Title: Revised Collection, Comment Request: Amendments to Swap Data 
Recordkeeping and Reporting Requirements for Cleared Swaps, Final Rule 
(OMB Control No. 3038-0096). This is a request for a revision to a 
currently approved information collection.
    Abstract: The Commission recently adopted a final rule regarding 
the reporting of cleared swap transactions (the ``Cleared Swap 
Reporting Release''),\1\ which will require entities reporting swaps to 
report certain additional data elements. This Cleared Swap Reporting 
Release will also require registered derivatives clearing organizations 
(``DCOs'') to terminate ``original swaps'' (as defined in that final 
rule), which may require DCOs to connect to multiple registered swap 
data repositories (``SDRs''). 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 Federal 
Register notice with a 60-day comment period soliciting comments on 
this collection of information (``60 Day Notice''), implicated by the 
requirements of the Cleared Swap Reporting Release, was published on 
July 21, 2016 (81 FR 47362). The 60 Day Notice included a burden 
estimate for (a) DCOs to connect to SDRs for purposes of terminating 
original swaps, estimated to require a one-time hours burden of 3,000 
per DCO and a recurring annual cost of $250,000; and (b) changes to 
reporting systems by all reporting entities and SDRs to account for 
additional and amended primary economic terms (``PET'') data fields in 
the Cleared Swap Reporting Release and future changes required by 
changes to PET fields and developments in the swaps market, estimated 
as a recurring burden of 200 hours per year.\2\
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    \1\ See Amendments to Swap Data Recordkeeping and Reporting 
Requirements for Cleared Swaps, Final Rule, 81 FR 41736 (June 27, 
2016).
    \2\ While not connected to the Cleared Swap Reporting Release, 
the Commission also proposed in the 60 Day Notice to reduce the 
number of SDRs in collection 3038-0096 from 15 to 4. When submitting 
the original OMB information collection for part 45 reporting, the 
Commission had assumed that up to 15 entities would register as 
SDRs. Currently, there are four SDRs provisionally registered with 
the Commission. Three other entities had submitted SDR applications. 
Two withdrew applications in 2012 and 2014. One (GTR) withdrew its 
application and resubmitted under the corporate entity DTCC Data 
Repository (US) LLC, which currently operates as a provisionally 
registered SDR. As the Commission has not received any SDR 
applications since 2012, the Commission believes that four is a 
reasonable number of SDRs for calculating PRA burdens.
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    The Commission received one comment letter in response to the 60 
Day Notice. CME Group commented that the Commission's assumptions 
relating to economies of scale for connections to more than one SDR 
were erroneous. CME Group also commented that the Commission's 
assumption that DCOs would not need to connect to every SDR because not 
every SDR accepted every asset class of swaps was erroneous, because 
only the equities asset class was accepted by fewer than four SDRs. 
While not providing a specific number of burden hours associated with 
the Cleared Swap Reporting Release, CME Group estimated that the build 
to comply with the rule would be ``almost 50% above the Commission's 
estimate[.]'' CME Group also commented that the Commission's estimate 
of annual costs was low because the incorrect assumptions on economies 
of scale and limited numbers of SDR connections applied to costs as 
well as burden hours. (CME Group Sept. 19, 2016 Letter, at 2-5).\3\ The 
CME Group letter did not address the 200 hour recurring burden for 
changes to PET fields, and the Commission received no other comments on 
the 60 Day Notice.
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    \3\ The Commission received a comment from Robert Rutkowski on 
Sept. 15, 2016 under this comment file. However, this comment letter 
related to the de minimis report, not the Cleared Swap Reporting 
Release or PRA Notice.
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    Burden Statement: Based on the comment letter received in response 
to the 60 Day Notice, the Commission is revising its estimate of the 
burden for this collection by increasing the estimated costs associated 
with the termination of original swaps by 50 percent. The Commission is 
not revising the burden estimate association with additional and 
amended PET fields.
    Below are tables indicating the increase in burden hours and costs 
above those in the current collection 3038-0096:

[[Page 74410]]



                                        Additional and Amended PET Fields
                                           [Same as in 60 day notice]
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           Affected entities                 SDRs, SEFs, DCMs, DCOs, SD/MSPs, non-SD/MSP reporting entities
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                                                                      Number of
              Burden type                 Burden per respondent      respondents            Total burden
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Annual hours burden...................  200 hours................             449  89,800 hours.
Annual costs..........................  $0.......................             449  $0.
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                                          Termination of Original Swaps
                                      [Increased by 50% from 60 day notice]
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           Affected entities                                              DCOs
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                                                                      Number of
              Burden type                 Burden per respondent      respondents            Total burden
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One-time hours burden.................  4,500 hours..............              12  54,000 hours.
Annual costs..........................  $375,000.................              12  $4,500,000.
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Increases in Hours Burdens and New Total Hours Burden

    Based on an increase in annual burden hours of 89,800, Commission 
staff estimate that the revised aggreagate total annual time burden for 
the collection is 562,945 hours.

Increases in Aggregate Costs

    There are three components to the aggregate increase in annual 
costs associated with this revision, (a) costs associated with changes 
to reporting systems, to be incurred by 449 entities; (b) annualized 
costs associated with establishing SDR connections by DCOs; and (c) 
costs associated with maintaining SDR connections by DCOs.
    First, the Commission estimates that the costs associated with 
additional and amended PET fields will be $15,196 per entity (200 hours 
x $75.98 per hour).\4\ The aggregate increase across all 449 reporting 
entities and SDRs for the additional and amended PET fields is 
therefore $6,823,004.
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    \4\ In calculating the cost figures associated with burden 
hours, the Commission estimated the appropriate wage rate based on 
salary information for the securities industry compiled by the 
Securities Industry and Financial Markets Association (``SIFMA''). 
Commission staff arrived at an hourly rate of $75.98 using figures 
from a weighted average of salaries and bonuses across different 
professions from the SIFMA Report on Management & Professional 
Earnings in the Securities Industry 2013, modified to account for an 
1800-hour work-year and multiplied by 1.3 to account for overhead 
and other benefits. The Commission estimated appropriate wage rate 
is a weighted national average of salary and bonuses for 
professionals with the following titles (and their relative weight): 
``programmer (senior)'' (30% weight); ``programmer'' (30%); 
``compliance advisor (intermediate)'' (20%); ``systems analyst'' 
(10%), and ``assistant/associate general counsel'' (10%).
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    Second, the Commission estimates that DCO to SDR connections will 
require each DCO to incur a one-time start-up cost of $341,910 (4,500 
hours x $75.98 per hour). The Commission estimates that DCOs will use 
these connections for 20 years, and therefore the annualized start-up 
cost for SDR connections will be $17,095 per DCO. Based on 12 DCOs, the 
aggregate annualized start-up cost for SDR connections will be 
$205,146.
    Third, DCOs will incur an aggregate annual cost of $4,500,000 to 
maintain those SDR connections.
    By combining these three components, the aggregate increase to 
annual costs associated with this collection will be $11,528,150.

Total Aggregate Costs

    Commission staff estimate that the revised aggregate total annual 
cost for the collection is $99,462,062. The burden estimate represents 
the burden that SDRs, swap execution facilities (``SEFs''), designated 
contract markets (``DCMs''), DCOs, swap dealers (``SDs''), major swap 
participants (``MSPs''), and non-SD/MSP swap counterparties incur to 
operate and maintain swap recordkeeping and reporting systems to 
facilitate the recordkeeping and reporting of swaps.
    Respondents/Affected Entities: SDRs, SEFs, DCMs, DCOs, SDs, MSPs, 
and non-SD/MSP swap counterparties.
    Estimated Number of Respondents: 30,210.
    Estimated Total Annual Burden on Respondents: 562,945 hours.
    Estimated Total Annual Cost: $99,462,062.
    Frequency of Collection: Ongoing.

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

    Dated: October 21, 2016.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2016-25925 Filed 10-25-16; 8:45 am]
 BILLING CODE 6351-01-P