[Federal Register Volume 87, Number 15 (Monday, January 24, 2022)]
[Notices]
[Pages 3539-3540]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01259]



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FEDERAL RESERVE SYSTEM


Agency Information Collection Activities: Announcement of Board 
Approval Under Delegated Authority and Submission to OMB

AGENCY: Board of Governors of the Federal Reserve System.

SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
is adopting a proposal to extend for three years, with revision, the 
Report of Selected Money Market Rates (FR 2420; OMB No. 7100-0357). The 
revisions are effective with the September 1, 2022, as of date.

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.
    Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, 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.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. Board-approved collections of information are 
incorporated into the official OMB inventory of currently approved 
collections of information. The OMB inventory, as well as copies of the 
PRA Submission, supporting statements, and approved collection of 
information instrument(s) are available at https://www.reginfo.gov/public/do/PRAMain. These documents are also available on the Federal 
Reserve 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.

Final Approval Under OMB Delegated Authority of the Extension for Three 
Years, With Revision, of the Following Information Collection

    Report title: Report of Selected Money Market Rates.
    Agency form number: FR 2420.
    OMB control number: 7100-0357.
    Effective Date: September 1, 2022, as of date.
    Frequency: Daily.
    Respondents: Commercial banks, savings associations, U.S. 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: Commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations, 181; international banking 
facilities, 77.
    Estimated average hours per response: Commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations, 2.0; international banking 
facilities, 1.1.
    Estimated annual burden hours: Commercial banks, savings 
associations, U.S. branches and agencies of foreign banks, and 
significant banking organizations, 90,500; international banking 
facilities, 21,175.
    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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    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)).
    Current actions: On May 5, 2021, the Board published a notice in 
the Federal Register (86 FR 23971) requesting public comment for 60 
days on the extension, with revision, of the FR 2420. The Board 
proposed 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 proposed 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 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 comment 
period for this notice expired on July 6, 2021. The Board received two 
comment letters from two banking industry associations. As more fully 
explained below, the commenters opposed changing the submission 
deadline for certain parts of the FR 2420 from the morning after the 
transaction is completed (next-day deadline) to the evening the 
transaction is completed (same-day deadline) and suggested a later 
implementation date for changing the submission deadline for CD and 
time deposit transactions (Part C). One comment also argued that 
certain proposed additions to the FR 2420 instructions, pertaining to 
securities lending, Certificate of Deposit Account Registry Service 
(CDARS), and insured cash sweep transactions, would significantly alter 
the scope of required reporting and increase the reporting burden. In 
light of the comments, the Board has finalized the proposed revisions 
to FR 2420, with certain

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modifications intended to mitigate any increase in reporting burden.

Same Day Submission Deadline for Parts A, B, and D of FR 2420

    The commenters indicated that the proposed same-day deadline for 
submission of data related to Federal Funds Purchased (Part A), 
Eurodollars (Part B), and Selected Deposits (Part D) transactions from 
the morning after the transaction is completed (next-day deadline) to 
the evening the transaction is completed (same-day deadline) would not 
be feasible for certain reporters and would leave insufficient time for 
reporting controls and other due diligence processes. The commenters 
also suggested that the proposed deadline would lead to an increase in 
re-filings of the FR 2420 report, as firms would need to re-file to 
correct mistakes which would also increase the reporting burden.
    In consideration of the additional burden on certain reporters that 
would have resulted from the proposed same-day deadline, the Board has 
not finalized this proposed revision to the FR 2420. The deadline for 
the above noted parts of FR 2420 will remain 7 a.m. ET on the day after 
the transaction date. However, the Board will nonetheless encourage 
firms to submit reports as early as possible in order to reduce 
operational risk associated with the publication of reference rates. 
The majority of reporting firms already submit data for these parts of 
FR 2420 on the same day as the transactions are completed, and the 
Board encourages other reporters to follow this convention when 
practicable. Reducing risks associated with reference rates production 
provides benefits to the public and financial markets, in addition to 
aiding monetary policy implementation, and the Board may repropose a 
same-day submission deadline in connection with a future renewal of the 
FR 2420.

Submission Deadline for Part C of FR 2420

    The commenters requested that implementation of the proposed 
earlier next-day deadline for Part C of FR 2420 be delayed at least 
until August 1, 2022, or 12 months after the release of the final form 
and instructions. The commenters argue that this later implementation 
date is needed for reporting firms to have sufficient time to adjust 
their internal reporting and control processes to accommodate the 
earlier reporting deadline. In light of the additional burden for 
reporting firms, the Board will require compliance with the next-day 
deadline for Part C, along with other changes to the instructions, 
starting on September 1, 2022.

Changes to Instructions

    One commenter opposed several additions to the FR 2420 
instructions, including provisions concerning securities lending, 
CDARS, and insured cash sweep transactions. Regarding securities 
lending transactions collateralized by cash, the commenter inquired why 
these transactions would be considered selected deposits. With respect 
to CDARS and insured cash sweep transactions, the commenter asserted 
that the proposed additions to the instructions may entail a 
significant increase in firms' reporting burden, as the added language 
appeared to require data that may not be in the possession of reporting 
firms, but rather third parties. In response to the concerns raised by 
the commenter, the Board will not include the proposed additions 
concerning securities lending, CDARS, and insured cash sweep 
transactions in the final instructions.\2\
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    \2\ The commenters also noted that the proposed reporting 
instructions were not made publicly available at the time the 
proposal was published in the Federal Register and requested that 
certain proposed changes to the instructions not be adopted as a 
result. The initial Federal Register notice stated that copies of 
the reporting form and instructions could be requested from the 
Board's clearance officer, who was also identified in the notice. In 
response to the commenters' letter, the proposed form and 
instructions were provided to the commenters and posted on the 
Board's public website.
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    The Board adopted the remaining revisions to the FR 2420 as 
proposed.

    Board of Governors of the Federal Reserve System, January 19, 
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-01259 Filed 1-21-22; 8:45 am]
BILLING CODE 6210-01-P