[Federal Register Volume 85, Number 139 (Monday, July 20, 2020)]
[Notices]
[Pages 43821-43822]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-15604]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Extend Collection 3038-0079: Swap Dealer and Major Swap Participant 
Conflicts of Interest and Business Conduct Standards With 
Counterparties

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 a 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, including proposed extension of an existing collection of 
information, and to allow 60 days for public comment. This notice 
solicits comments on the information collections included in Subpart H 
of Part 23 of the Commission's regulations and Commission regulation 
23.605, requiring swap dealers (SDs) and major swap participants (MSPs) 
to follow specified procedures and provide specified disclosures in 
their dealings with counterparties, to adopt and implement conflicts of 
interest procedures and disclosures, and to maintain specified records 
related to those requirements.

DATES: Comments must be submitted on or before September 18, 2020.

ADDRESSES: You may submit comments, identified by ``OMB Control No. 
3038-0079,'' by any of the following methods:
     The Agency's website, at https://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 https://www.cftc.gov.

FOR FURTHER INFORMATION CONTACT: Jacob Chachkin, Special Counsel, 
Division of Swap Dealer and Intermediary Oversight, Commodity Futures 
Trading Commission, (202) 418-5496; email: [email protected].

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq., 
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, 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 collection of information listed below. 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.
    Title: Swap Dealer and Major Swap Participant Conflicts of Interest 
and Business Conduct Standards with Counterparties (OMB Control No. 
3038-0079). This is a request for an extension of a currently approved 
information collection.
    Abstract: Section 731 of Title VII of the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (Dodd-Frank Act, Pub L. No. 111-203, 
124 Stat. 1376 (2010)) amended the Commodity Exchange Act (CEA) to add 
sections 4s(h) and 4s(j)(5) (7 U.S.C. 6s(h) and (j)(5)) which provide 
the Commission with both mandatory and discretionary rulemaking 
authority to impose business conduct requirements on SDs and MSPs in 
their dealings with counterparties, including ``Special Entities,'' \1\ 
and require that each SD and MSP implement conflicts of interest 
systems and procedures. Congress granted the Commission broad 
discretionary authority to promulgate business conduct requirements, as 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the CEA.\2\
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    \1\ Such entities are generally defined to include Federal 
agencies, States and political subdivisions, employee benefit plans 
as defined under the Employee Retirement Income Security Act of 1974 
(ERISA), governmental plans as defined under ERISA, and endowments.
    \2\ See CEA Section 4s(h)(3)(D) (Business conduct requirements 
adopted by the Commission shall establish such other standards and 
requirements as the Commission may determine are appropriate in the 
public interest, for the protection of investors, or otherwise in 
furtherance of the purposes of the CEA.); see also Sections 
4s(h)(1)(D), 4s(h)(5)(B) and 4s(h)(6).

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[[Page 43822]]

    Accordingly, the Commission has adopted Subpart H of Part 23 of its 
regulations (EBCS Rules) and Commission regulation 23.605,\3\ requiring 
swap dealers and major swap participants to follow specified procedures 
and provide specified disclosures in their dealings with 
counterparties, to adopt and implement conflicts of interest procedures 
and disclosures, and to maintain specified records related to those 
requirements.
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    \3\ 17 CFR part 23, subpart H and 17 CFR 23.605. Subpart H of 
Part 23 is titled ``Business Conduct Standards for Swap Dealers and 
Major Swap Participants Dealing with Counterparties, Including 
Special Entities.'' Subpart H includes the following provisions: 
Sec.  23.400 (Scope); Sec.  23.401 (Definitions); Sec.  23.402 
(General Provisions); Sec.  23.410 (Prohibition on fraud, 
manipulation and other abusive practices); Sec.  23.430 
(Verification of counterparty eligibility); Sec.  23.431 
(Disclosures of material information); Sec.  23.432 (Clearing 
disclosures); Sec.  23.433 (Communications--fair dealing); Sec.  
23.434 (Recommendations to counterparties--institutional 
suitability; Sec.  23.440 (Requirements for swap dealers acting as 
advisors to Special Entities); Sec.  23.450 (Requirements for swap 
dealers and major swap participants acting counterparties to Special 
Entities); and Sec.  23.451 (Political contributions by certain swap 
dealers). Sec.  23.605 is titled Conflicts of interest policies and 
procedures.
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    The recordkeeping and third-party disclosure obligations imposed by 
the regulations are essential to ensuring that swap dealers and major 
swap participants develop and maintain procedures and disclosures 
required by the CEA and Commission regulations.\4\
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    \4\ Reporting under Commission regulation 23.451 (Political 
contributions by certain swap dealers) is optional and it is unknown 
how many registrants, if any, will engage in such reporting and how 
much burden, if any, will be incurred. Nevertheless, the Commission 
is providing an estimate of the regulation's burden for purposes of 
the PRA below.
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    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.
    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.\5\
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    \5\ 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 https://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 ICR 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 
burden for this collection based on the current number of registered 
SDs.\6\ The respondent burden for this collection is estimated to be as 
follows:
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    \6\ Specifically, the change for the renewal is based solely on 
the increased number of entities registered as swap dealers (102 
previously and 107 currently), since the annual total burden hours 
has remained the same--at 2,352.9 hours per respondent. And just as 
before, there are no entities currently registered as MSPs.
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    Estimated Number of Respondents: 107.
    Estimated Average Burden Hours per Respondent: 2,352.9 hours.
    Estimated Total Annual Burden Hours: 251,765 hours.
    Frequency of Collection: Ongoing.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

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

    Dated: July 15, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-15604 Filed 7-17-20; 8:45 am]
BILLING CODE 6351-01-P