[Federal Register Volume 84, Number 131 (Tuesday, July 9, 2019)]
[Notices]
[Pages 32834-32835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-14544]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Office of the Comptroller of the Currency


Agency Information Collection Activities: Information Collection 
Renewal; Submission for OMB Review; Margin and Capital Requirements for 
Covered Swap Entities

AGENCY: Office of the Comptroller of the Currency (OCC), Treasury. 
ACTION: Notice and request for comment.
SUMMARY: The OCC, as part of its continuing effort to reduce paperwork 
and respondent burden, invites the general public and other federal 
agencies to take this opportunity to comment on the renewal of an 
information collection as required by the Paperwork Reduction Act of 
1995 (PRA).
    An agency may not conduct or sponsor, and respondents are not 
required to respond to, an information collection unless it displays a 
currently valid Office of Management and Budget (OMB) control number.
    The OCC is soliciting comment concerning the renewal of its 
information collection titled, ``Margin and Capital Requirements for 
Covered Swap Entities.'' The OCC also is giving notice that it has sent 
the collection to OMB for review.

DATES: Comments must be submitted on or before August 8, 2019.

ADDRESSES: Commenters are encouraged to submit comments by email, if 
possible. You may submit comments by any of the following methods:
     Email: [email protected].
     Mail: Chief Counsel's Office, Attention: Comment 
Processing, 1557-0251, Office of the Comptroller of the Currency, 400 
7th Street SW, Suite 3E-218, Washington, DC 20219.
     Hand Delivery/Courier: 400 7th Street SW, Suite 3E-218, 
Washington, DC 20219.
     Fax: (571) 465-4326.
    Instructions: You must include ``OCC'' as the agency name and 
``1557-0251'' in your comment. In general, the OCC will publish 
comments on www.reginfo.gov without change, including any business or 
personal information provided, such as name and address information, 
email addresses, or phone numbers. Comments received, including 
attachments and other supporting materials, are part of the public 
record and subject to public disclosure. Do not include any information 
in your comment or supporting materials that you consider confidential 
or inappropriate for public disclosure.
    Additionally, please send a copy of your comments by mail to: OCC 
Desk Officer, 1557-0251, U.S. Office of Management and Budget, 725 17th 
Street NW, #10235, Washington, DC 20503 or by email to 
[email protected].
    You may review comments and other related materials that pertain to 
this information collection \1\ following the close of the 30-day 
comment period for this notice by any of the following methods:
---------------------------------------------------------------------------

    \1\ On March 29, 2019, the OCC published a 60-day notice for 
this information collection, 84 FR 12031.
---------------------------------------------------------------------------

     Viewing Comments Electronically: Go to www.reginfo.gov. 
Click on the ``Information Collection Review'' tab. Underneath the 
``Currently under Review'' section heading, from the drop-down menu 
select ``Department of Treasury'' and then click ``submit.'' This 
information collection can be located by searching by OMB control 
number ``1557-0251'' or ``Margin and Capital Requirements for Covered 
Swap Entities.'' Upon finding the appropriate information collection, 
click on the related ``ICR Reference Number.'' On the next screen, 
select ``View Supporting Statement and Other Documents'' and then click 
on the link to any comment listed at the bottom of the screen.
     For assistance in navigating www.reginfo.gov, please 
contact the Regulatory Information Service Center at (202) 482-7340.
     Viewing Comments Personally: You may personally inspect 
comments at the OCC, 400 7th Street SW, Washington, DC. For security 
reasons, the OCC requires that visitors make an appointment to inspect 
comments. You may do so by calling (202) 649-6700 or, for persons who 
are deaf or hearing impaired, TTY, (202) 649-5597. Upon arrival, 
visitors will be required to present valid government-issued photo 
identification and submit to security screening in order to inspect 
comments.

FOR FURTHER INFORMATION CONTACT: Shaquita Merritt, Clearance Officer, 
(202) 649-5490 or, for persons who are deaf or hearing impaired, TTY, 
(202) 649-5597, Chief Counsel's Office, Office of the Comptroller of 
the Currency, 400 7th Street SW, Suite 3E-218, Washington, DC 20219.

SUPPLEMENTARY INFORMATION: Under the PRA (44 U.S.C. 3501 et seq.), 
federal agencies must obtain approval from OMB for each collection of 
information that they conduct or sponsor. ``Collection of information'' 
is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3(c) to include agency 
requests or requirements that members of the public submit reports, 
keep records, or provide information to a third party. The OCC requests 
that OMB extend its emergency approval of the interim final rule 
described in this notice to the customary three years.
    Title: Margin and Capital Requirements for Covered Swap Entities.
    OMB Control No.: 1557-0251.
    Description: On March 19, 2019,\2\ the OCC, the Board of Governors 
of the Federal Reserve System, the Federal Deposit Insurance 
Corporation, the Farm Credit Administration, and the Federal Housing 
Finance Agency

[[Page 32835]]

(agencies) issued an interim final rule amending the agencies' 
regulations that require swap dealers and security based swap dealers 
(Swap Margin Rule) under the agencies' respective jurisdictions to 
exchange margin with their counterparties for swaps that are not 
centrally cleared. Swaps entered into before the effective dates of the 
Swap Margin Rule are grandfathered by the Swap Margin Rule until they 
expire according to their terms. There are currently financial services 
firms in the United Kingdom (U.K.) that conduct swap dealing activities 
subject to the Swap Margin Rule. If the U.K. withdraws from the 
European Union (E.U.) without a negotiated agreement between the U.K. 
and E.U., entities located in the U.K. may not be authorized to provide 
full-scope financial services to swap counterparties located in the 
E.U. The agencies are addressing a scenario whereby entities located in 
the U.K. might transfer their existing swap portfolios that face 
counterparties located in the E.U. over to an affiliate or other 
related establishment located within the E.U. or the United States 
(U.S.). These transfers, if carried out in accordance with the 
conditions of the interim final rule, will not trigger the application 
of the Swap Margin Rule to grandfathered swaps that were entered into 
before the Swap Margin Rule's compliance dates.
---------------------------------------------------------------------------

    \2\ 84 FR 9940.
---------------------------------------------------------------------------

    The interim final rule distinguishes transfers initiated by the 
financial entity standing as the covered swap entity at the completion 
of the transaction from a transfer initiated by the covered swap 
entity's counterparty. In the case of transfers initiated by the 
covered swap entity's counterparty, the counterparty must make a 
representation to the covered swap entity that the counterparty carried 
out the swap in accordance with both elements of the purpose test.\3\ 
Twelve CFR 45.1(h) specifies that transfers of legacy swaps initiated 
by a covered swap entity's counterparty require a representation to the 
covered swap entity that the counterparty carried out the swap in 
accordance with both elements of the purpose test in order to remain 
outside the scope of the Swap Margin. This requirement constitutes a 
third party disclosure under the PRA.
---------------------------------------------------------------------------

    \3\ The purpose test requires that the financial entity located 
in the U.K. arrange to make the amendments to the non- cleared swap 
solely for the purpose of transferring the non-cleared swap to an 
affiliate or other related establishment that is located in an E.U. 
Member State or the United States. This purpose test also contains a 
requirement that the transfer be made in connection with the U.K. 
entity's planning for the possibility that the U.K. might exit the 
E.U. without a negotiated agreement, or the U.K. entity's response 
to such an event.
---------------------------------------------------------------------------

    Estimated Number of Respondents: 10.
    Estimated Burden per Response: 1 hour.
    Total Estimated Burden: 10 hours.
    Type of Review: Regular.
    Affected Public: Individuals; Businesses or other for-profit.
    Frequency of Response: On occasion.
    Comments submitted in response to this notice will be summarized, 
included in the request for OMB approval, and become a matter of public 
record. Comments are invited on:
    (a) Whether the collection of information is necessary for the 
proper performance of the functions of the OCC, including whether the 
information has practical utility;
    (b) The accuracy of the OCC's estimate of the burden of the 
collection of information;
    (c) Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    (d) Ways to minimize the burden of the collection on respondents, 
including through the use of automated collection techniques or other 
forms of information technology; and
    (e) Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.

    Dated: July 2, 2019.
Theodore J. Dowd,
Deputy Chief Counsel, Office of the Comptroller of the Currency.
[FR Doc. 2019-14544 Filed 7-8-19; 8:45 am]
BILLING CODE 4810-33-P