[Federal Register Volume 87, Number 36 (Wednesday, February 23, 2022)]
[Notices]
[Pages 10175-10176]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-03829]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Renew Collection Numbers 3038-0068, 3038-0083, and 3038-0088: 
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 three 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 certain 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 April 25, 2022.

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, 3038-0083, and 3038-
0088 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 www.cftc.gov.

FOR FURTHER INFORMATION CONTACT: Benjamin DeMaria, Special Counsel, 
Market Participants Division, Commodity Futures Trading Commission at 
(202) 418-5988 or [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 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

[[Page 10176]]

notice of the proposed collections of information--treated as a 
consolidated collection--listed below.\1\
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    \1\ 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 conrol number. See 46 FR 63035 (Dec. 
30, 1981).
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    Title: Confirmation, Portfolio Reconciliation, Portfolio 
Compression, and Swap Trading Relationship Documentation Requirements 
for Swap Dealers and Major Swap Participants (OMB Control Nos. 3038-
0068, 3038-0083, 3038-0088).\2\ This is a request for an extension of 
currently approved information collections.
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    \2\ Historically, PRA Collections 3038-0068, 3038-0083, and 
3038-0088 were renewed as a consolidated collection. See 82 FR 6241 
(Feb. 5, 2016). However, on April 1, 2019, the CFTC published an 
interim final rule (``IFR''), which allowed uncleared swaps to 
retain legacy status when transferred in connection with what was, 
at the time, a potential no-deal Brexit. See 84 FR 12065 (Apr. 1, 
2019). As the IFR only affected the burdens calculations in PRA 
collection 3038-0088, collection 3038-0088 was considered separately 
from collections 3038-0068 and 3038-0083 for purposes of 
incorporating the burdens related to the IFR. Id. Since there is no 
need now to separate collection 3038-0088 for purposes of renewing 
these three collections, this proposed renewal once again will treat 
PRA collections 3038-0068, 3038-0083, and 3038-0088 as a 
consolidated collection.
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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) \3\ under 
sections 4s(f), (g) and (i) \4\ of the Commodity Exchange Act 
(``CEA''). Commission regulations 23.500-23.505 require, among other 
things, that swap dealers (``SDs'') \5\ and major swap participants 
(``MSPs'') \6\ 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, SDs and MSPs are 
obligated to maintain records of the policies and procedures required 
by the rules.\7\
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    \3\ 17 CFR 23.500-23.505.
    \4\ 7 U.S.C. 6s(f), (g) & (i).
    \5\ 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.
    \6\ 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.
    \7\ SDs and MSPs are required to maintain all records of 
policies and procedures in accordance with Commission regulations 
23.203 and, by extension, 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. See 17 CFR 1.31 and 23.203.
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    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 SD and MSP 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 also essential to ensuring that SDs and MSPs 
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.
    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.\8\
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    \8\ 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, for reasons 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: 107.
    Estimated Average Burden Hours per Registrant: 1,274.5.
    Estimated Aggregate Burden Hours: 136,371.5.
    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: 107.
    Estimated Average Burden Hours per Registrant: 270.
    Estimated Aggregate Burden Hours: 28,890.
    Frequency of Recordkeeping: As applicable.
     OMB Control No. 3038-0088 (Swap Trading Relationship 
Documentation Requirements for Swap Dealers and Major Swap 
Participants).
    Number of Registrants: 107.
    Estimated Average Burden Hours per Registrant: 6284.
    Estimated Aggregate Burden Hours: 672,388.
    Frequency of Recordkeeping: As applicable.

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

    Dated: February 17, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-03829 Filed 2-22-22; 8:45 am]
BILLING CODE 6351-01-P