[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18521-18522]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08809]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection Numbers 3038-0068 and 3038-0083: Confirmation, 
Portfolio Reconciliation, Portfolio Compression, and Swap Trading 
Relationship Documentation Requirements for Swap Dealers and Major Swap 
Participants

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 renewal of two collections 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, including each proposed extension 
of an existing collection of information, and to allow 60 days for 
public comment. This notice solicits comments on the collections of 
information mandated by Commission regulations (Confirmation, Portfolio 
Reconciliation, Portfolio Compression, and Swap Trading Relationship 
Documentation Requirements for Swap Dealers and Major Swap 
Participants).

DATES: Comments must be submitted on or before July 1, 2019.

ADDRESSES: You may submit comments, identified by ``Confirmation, 
Portfolio Reconciliation, Portfolio Compression, and Swap Trading 
Relationship Documentation Requirements for Swap Dealers and Major Swap 
Participants,'' and Collection Numbers 3038-0068 and 3038-0083, by any 
of the following methods:
     The Agency's website, at http://comments.cftc.gov/. Follow 
the instructions for submitting comments through the website.
     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.
    Please submit your comments using only one method. 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: Gregory Scopino, Special Counsel, 
Division of Swap Dealer and Intermediary Oversight, Commodity Futures 
Trading Commission, (202) 418-5175; 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

[[Page 18522]]

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, including each proposed extension of an existing 
collection of information, before submitting the collection to OMB for 
approval. To comply with this requirement, the CFTC is publishing 
notice of the proposed collections of information--treated as a 
consolidated collection--listed below.
    Title: Confirmation, Portfolio Reconciliation, Portfolio 
Compression, and Swap Trading Relationship Documentation Requirements 
for Swap Dealers and Major Swap Participants (OMB Control Nos. 3038-
0068 and 3038-0083).\1\ This is a request for an extension of currently 
approved information collections.
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    \1\ Historically, PRA Collections 3038-0068, 3038-0083, and 
3038-0088, which impose interrelated requirements, were renewed as a 
consolidated collection. See 81 FR 6241 (Feb. 5, 2016). However, on 
April 1, 2019, the CFTC published an interim final rule (IFR), which 
allows uncleared swaps to retain its legacy status when transferred 
in connection with a no-deal Brexit. See 84 FR 12233. This IFR 
directly affects the calculation of burdens in PRA Collection 3038-
0088. Accordingly, the proposed renewal now treats collections 3038-
0068 and 3038-0083 as a consolidated collection, with collection 
3038-0088 being considered separately.
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    Abstract: On September 11, 2012 the Commission adopted Commission 
regulations 23.500--23.505 (Confirmation, Portfolio Reconciliation, 
Portfolio Compression, and Swap Trading Relationship Documentation 
Requirements for Swap Dealers and Major Swap Participants) \2\ under 
sections 4s(f), (g) and (i) \3\ of the Commodity Exchange Act 
(``CEA''). Commission regulations 23.500--23.505 require, among other 
things, that swap dealers (``SDs'') \4\ and major swap participants 
(``MSPs'') \5\ develop and retain written swap trading relationship 
documentation. The regulations also establish requirements for SDs and 
MSPs regarding swap confirmation, portfolio reconciliation, and 
portfolio compression. Under the regulations, swap dealers and major 
swap participants are obligated to maintain records of the policies and 
procedures required by the rules.\6\ Confirmation, portfolio 
reconciliation, and portfolio compression are important post-trade 
processing mechanisms for reducing risk and improving operational 
efficiency. The information collection obligations imposed by the 
regulations are necessary to ensure that each swap dealer and major 
swap participant maintains the required records of their business 
activities and an audit trail sufficient to conduct comprehensive and 
accurate trade reconstruction. The information collections contained in 
the regulations are essential to ensuring that swap dealers and major 
swap participants document their swaps, reconcile their swap portfolios 
to resolve discrepancies and disputes, and wholly or partially 
terminate some or all of their outstanding swaps through regular 
portfolio compression exercises. The collections of information are 
mandatory. 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.
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    \2\ 17 CFR 23.500-23.505.
    \3\ 7 U.S.C. 6s(f), (g) & (i).
    \4\ For the definition of SD, see Section 1a(49) of the CEA and 
Commission regulation 1.3, 7 U.S.C. 1a(49) and 17 CFR 1.3.
    \5\ For the definitions of MSP, see Section 1a(33) of the CEA 
and Commission regulation 1.3, 7 U.S.C. 1a(33) and 17 CFR 1.3.
    \6\ SDs and MSPs are required to maintain all records of 
policies and procedures in accordance with Commission regulation 
1.31, including policies, procedures and models used for eligible 
master netting agreements and custody agreements that prohibit 
custodian of margin from re-hypothecating, repledging, reusing, or 
otherwise transferring the funds held by the custodian.
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    With respect to the collections of information, the CFTC invites 
comments on:
     Whether the proposed collections of information are 
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 burdens 
of the proposed collections 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 burdens 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.
    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 confidential treatment of the exempt information may be 
submitted according to the procedures established in Sec.  145.9 of the 
Commission's regulations.\7\
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    \7\ 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 Commission is revising its estimate of the 
burdens for the collections to reflect the current number of 
respondents and estimated burden hours. The respondent burdens for the 
collections are estimated to be as follows:
     OMB Control No. 3038-0068 (Confirmation, Portfolio 
Reconciliation, and Portfolio Compression Requirements for Swap Dealers 
and Major Swap Participants)
    Number of Registrants: 101.
    Estimated Average Burden Hours per Registrant: 1,274.5.
    Estimated Aggregate Burden Hours: 128,724.5.
    Frequency of Recordkeeping: As applicable.
     OMB Control No. 3038-0083 (Orderly Liquidation Termination 
Provision in Swap Trading Relationship Documentation for Swap Dealers 
and Major Swap Participants)
    Number of Registrants: 101.
    Estimated Average Burden Hours per Registrant: 270.
    Estimated Aggregate Burden Hours: 27,270.
    Frequency of Recordkeeping: As applicable.

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


    Dated: April 26, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-08809 Filed 4-30-19; 8:45 am]
 BILLING CODE 6351-01-P