[Federal Register Volume 86, Number 85 (Wednesday, May 5, 2021)]
[Notices]
[Pages 23971-23973]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-09424]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Report of

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Selected Money Market Rates (FR 2420; OMB No. 7100-0357).

DATES: Comments must be submitted on or before July 6, 2021.

ADDRESSES: You may submit comments, identified by FR 2420, by any of 
the following methods:
     Agency Website: https://www.federalreserve.gov/. Follow 
the instructions for submitting comments at https://www.federalreserve.gov/apps/foia/proposedregs.aspx.
     Email: [email protected]. Include the OMB 
number in the subject line of the message.
     Fax: (202) 452-3819 or (202) 452-3102.
     Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
https://www.federalreserve.gov/apps/foia/proposedregs.aspx as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any identifying or 
contact information. Public comments may also be viewed electronically 
or in paper in Room 146, 1709 New York Avenue NW, Washington, DC 20006, 
between 9:00 a.m. and 5:00 p.m. on weekdays. For security reasons, the 
Board requires that visitors make an appointment to inspect comments. 
You may do so by calling (202) 452-3684. Upon arrival, visitors will be 
required to present valid government-issued photo identification and to 
submit to security screening in order to inspect and photocopy 
comments.
    Additionally, commenters may send a copy of their comments to the 
Office of Management and Budget (OMB) Desk Officer--Shagufta Ahmed--
Office of Information and Regulatory Affairs, Office of Management and 
Budget, New Executive Office Building, Room 10235, 725 17th Street NW, 
Washington, DC 20503, or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the PRA to approve and assign OMB control numbers to 
collections of information conducted or sponsored by the Board. In 
exercising this delegated authority, the Board is directed to take 
every reasonable step to solicit comment. In determining whether to 
approve a collection of information, the Board will consider all 
comments received from the public and other agencies.
    A copy of the Paperwork Reduction Act (PRA) OMB submission, 
including the reporting form and instructions, supporting statement, 
and other documentation will be available at https://www.reginfo.gov/public/do/PRAMain, if approved. These documents will also be made 
available on the Board's public website at https://www.federalreserve.gov/apps/reportforms/review.aspx or may be requested 
from the agency clearance officer, whose name appears above.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information 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.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, With 
Revision, the Following Information Collection

    Report title: Report of Selected Money Market Rates.
    Agency form number: FR 2420.
    OMB control number: 7100-0357.
    Frequency: Daily.
    Respondents: Commercial banks, savings associations, branches and 
agencies of foreign banks, international banking facilities, and 
significant banking organizations representing entities actively 
participating in the federal funds and/or other money markets.
    Estimated number of respondents: 181 commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations; 77 international banking facilities.
    Estimated average hours per response: 2.0 commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations; 1.1 international banking 
facilities.
    Estimated annual burden hours: 90,500 commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations; 21,175 international banking 
facilities.
    General description of report: The FR 2420 is a transaction-based 
report that collects daily liability data on federal funds purchased, 
selected borrowings from non-exempt entities,\1\ Eurodollar 
transactions, and time deposits and certificates of deposits (CDs) from 
(1) domestically chartered commercial banks and savings associations 
that have $18 billion or more in total assets as well as those that 
have total assets above $5 billion but less than $18 billion and meet 
the activity threshold, (2) U.S. branches and agencies of foreign banks 
with total third-party assets of $2.5 billion or more, and (3) 
significant banking organizations that are active participants in money 
markets. The FR 2420 also collects daily data on Eurodollar 
transactions from International Banking Facilities (IBFs) of the above-
referenced institutions. The FR 2420 data are used in the publication 
of the Effective Federal Funds Rate (EFFR) and Overnight Bank Funding 
Rate (OBFR) and in analysis of current money market conditions.
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    \1\ A selected borrowing from a non-exempt entity is an 
unsecured borrowing (an unsecured primary obligation undertaken by 
the reporting institution as a means of obtaining funds) in U.S. 
dollars from a counterparty that is a non-exempt entity as derived 
from Regulation D, section 204.2(a)(vii).
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    Proposed revisions: The Board proposes to add a data item to 
specify the day-count convention used for all interest rates reported 
on the FR 2420 reporting form. The Board also proposes revisions to the 
FR 2420 instructions to allow for more timely collection of data, 
improve monitoring of the transition away from the London Interbank 
Offered Rate (LIBOR), strengthen the reference rate production process, 
and ensure the integrity of reported data. The proposed revisions 
support the

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Board's monetary policy and supervisory mandates by providing greater 
insight into funding market conditions in periods where conditions 
change rapidly, potentially affecting policy measures taken by the 
Federal Reserve. The proposed revisions to FR 2420 would be effective 
with the January 1, 2022, as of date.

Reporting Form Revisions

    The Board proposes to add a data item to specify the day-count 
convention used for all interest rates reported on FR 2420. The Federal 
Reserve has identified limited instances of reporting institutions 
using multiple day-count conventions in calculating reported interest 
rates, specifically found in the reporting of Part C interest rates. 
The proposed revision would improve the accuracy of reported data, 
benefiting the Federal Reserve's monitoring of funding market 
conditions and strengthening the production of the EFFR and OBFR. The 
proposed data item would provide the following day-count conventions as 
options: Actual/360, actual/365, 30/360, 30/365, actual/actual, and 
other.

Instruction Revisions

Additional Reference Rate Options for Floating-Rate Time Deposits and 
CDs (Part C)
    The Board proposes to include additional reference rates to which 
floating-rate time deposits and CDs are tied. The additional rates 
include the Secured Overnight Financing Rate (SOFR), other SOFR-based 
rates, and OBFR, all of which are published daily by the Federal 
Reserve Bank of New York (FRBNY). Other SOFR-based rates include the 
SOFR Index and the SOFR Averages over 30, 90, and 180 days. This 
revision would improve the ability of the Federal Reserve to monitor 
the progress of the transition from LIBOR to SOFR with respect to 
floating-rate money market instruments.\2\
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    \2\ The Alternative Reference Rates Committee is a group of 
private-market participants convened by the Board and the FRBNY to 
help ensure a successful transition from U.S. dollar LIBOR to a more 
robust reference rate, its recommended alternative, the SOFR.
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Earlier Deadline for Submission of Time Deposit and CD Data (General 
Instructions)
    The Board proposes to change the deadline for submission of time 
deposit and CD data in Part C to 2 p.m. ET one business day (T+1) after 
the report date, rather than two business days (T+2) after the report 
date. This proposed change would provide more timely data and improve 
the Federal Reserve's monitoring of funding market conditions. The 
change would be particularly beneficial on occasions when market 
conditions change quickly, such as when a deterioration in time deposit 
and CD markets may produce spillovers to other markets.
Earlier Deadline for Submission of Federal Funds Purchased, Eurodollar, 
and Selected Deposits Data (General Instructions)
    The Board proposes to change the deadline for submission of Federal 
Funds Purchased, Eurodollars, and Selected Deposits data in Parts A, B, 
and D to 7 p.m. ET the same day (T+0) as the transaction date, rather 
than 7 a.m. ET one business day (T+1) after the transaction date. The 
proposed earlier reporting deadline would allow for more opportunity 
for data review and validation, reducing operational risk associated 
with the publication of the EFFR and OBFR.
Clarifications To Prevent Errors (Parts C and D)
    The Board proposes other minor additions to the FR 2420 
instructions to prevent confusion and errors on the part of reporting 
institutions. Guidance would be added for certain reciprocal deposits, 
including insured deposit cash sweeps and Certificate of Deposit 
Account Registry Service deposits (Part C). Additional guidance would 
be included on the correct reporting of brokered deposits (Part C) and 
certain securities lending transactions (Part D).
    Legal authorization and confidentiality: The FR 2420 is authorized 
by section 11 of the Federal Reserve Act (FRA) and section 7 of the 
International Banking Act of 1978 (IBA). Section 11 of the FRA 
authorizes the Board to require reports from depository institutions as 
it may deem necessary and authorizes the Board to prescribe reports of 
liabilities and assets from insured depository institutions to enable 
the Board to discharge its responsibility to monitor and control 
monetary and credit aggregates (12 U.S.C. 248(a)). Section 7 of the IBA 
provides that federal branches and agencies of foreign banks are 
subject to section 11 of the FRA as if they were state member banks (12 
U.S.C. 3105(c)). The obligation to respond to the FR 2420 is mandatory.
    The FRBNY uses aggregate data from the FR 2420 to publish the EFFR, 
OBFR, and associated statistics daily. The information provided by 
individual respondents to the FR 2420 is nonpublic commercial or 
financial information, which is both customarily and actually treated 
as private by the respondents. Responses to the FR 2420 are therefore 
accorded confidential treatment pursuant to exemption 4 of the Freedom 
of Information Act (5 U.S.C. 552(b)(4)).
    Consultation outside the agency: A group of large FR 2420 
respondents (less than 10) were consulted in November 2020 regarding 
the feasibility of reporting timestamps for FR 2420 transactions, 
shifting reporting deadlines, and the day-count conventions used when 
reporting interest rates on FR 2420 transactions. Outreach results 
suggest that timestamps for transactions are not recorded in a 
consistent fashion across respondents, and thus the current proposals 
do not call for the reporting of timestamps. Outreach also suggests 
that most respondents currently report Parts A, B, and D of the FR 2420 
report on a T+0 basis, and no respondents consulted suggested that a 
T+0 reporting deadline for Parts A, B, and D was not feasible. Most 
respondents consulted noted that they should be able to report Part C 
transactions on a T+1 basis. Feedback also showed that most 
transactions are reported using the actual/360 day-count convention for 
interest rates, but other day-count conventions are used for some 
reported transactions.

    Board of Governors of the Federal Reserve System, April 29, 
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-09424 Filed 5-4-21; 8:45 am]
BILLING CODE 6210-01-P