[Federal Register Volume 88, Number 28 (Friday, February 10, 2023)]
[Rules and Regulations]
[Pages 8752-8755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-01979]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 23


Reporting, Recordkeeping, Daily Trading Records, and Swap 
Documentation Requirements for Swap Dealers and Major Swap 
Participants; Corrections

AGENCY: Commodity Futures Trading Commission.

ACTION: Correcting amendments.

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SUMMARY: The Commission is making correcting amendments in its 
regulations concerning swap documentation, swap reporting, and daily 
trading records requirements to conform those regulations to previous 
amendments of other regulations, and to correct other minor errors. 
These correcting amendments do not substantively affect any Commission 
requirements.

DATES: Effective on March 13, 2023.

FOR FURTHER INFORMATION CONTACT: Matthew Jones, Attorney Advisor, (202) 
418-6710, [email protected], or Philip Newsom, Attorney Advisor; 
[email protected], Market Participants Division, Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW, 
Washington, DC 20581.

SUPPLEMENTARY INFORMATION: In September 2020, the Commodity Futures 
Trading Commission (Commission) adopted final rules to revise, among 
other things, part 45 of its regulations on swap data recordkeeping and 
reporting requirements for swap data repositories, derivatives clearing 
organizations, swap execution facilities, designated contract markets, 
swap dealers (SDs), major swap participants (MSPs), and swap 
counterparties that are neither SDs nor MSPs.\1\ Part 23 of the 
Commission's regulations contains multiple cross-references to, and 
relies on terms defined in, part 45 of the Commission's regulations. 
The Commission has identified the following errors in part 23 relating 
to part 45 as well as certain other similar errors, and is correcting 
them as shown in the regulatory text in this Federal Register document.
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    \1\ Swap Data Recordkeeping and Reporting Requirements, 85 FR 
75503 (Nov. 25, 2020) (the ``2020 Final Rule'') (updating the 
Commission regulations in part 45 in addition to parts 46 and 49).
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    In accordance with the Administrative Procedure Act, the Commission 
has good cause to find that it is unnecessary to provide the public

[[Page 8753]]

prior notice and an opportunity to comment on these technical 
amendments.\2\ As more fully described below, the amendments make only 
typographical and clerical changes that are necessary to avoid 
confusion or mistakes. There is no substantive change on which the 
public could comment. As the revisions to the Commission's regulations 
in this rulemaking are only technical in nature and will not cause any 
party to undertake any new obligations, the Commission has determined 
to publish this rulemaking without prior notice and comment. Similarly, 
because the Commission is not promulgating, changing, or deleting any 
regulatory requirement, consideration of costs and benefits and 
consideration of the public interest to be protected by the antitrust 
laws are not required by the Commodity Exchange Act.\3\ Finally, these 
correcting amendments do not implicate any requirements under the 
Paperwork Reduction Act of 1995.\4\
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    \2\ See 5 U.S.C. 553(b)(3)(B).
    \3\ See 7 U.S.C. 19(b).
    \4\ See 44 U.S.C. 3501 et seq.
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A. Correcting Cross-References

    Commission regulation Sec.  23.202 (Daily trading records) \5\ 
erroneously cross-references Commission regulations Sec.  45.4(a), (b), 
and (c). The Commission is correcting the cross-references to 
Commission regulations Sec. Sec.  45.5, 45.6, and 45.7, respectively.
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    \5\ 17 CFR 23.202.
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    Commission regulation Sec.  23.205(a) (Real-time public reporting 
of swap transaction and pricing data) \6\ erroneously cross-references 
the real-time public ``recording'' requirements in part 43 of the 
Commission's regulations. The Commission is correcting the reference to 
replace the word ``recording'' with the word ``reporting.''
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    \6\ 17 CFR 23.205(a).
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B. Updating the Term ``Unique Transaction Identifier''

    The Commission is replacing the term unique swap identifier (USI) 
with the term unique transaction identifier (UTI). The Commission 
previously updated part 45 to make this change,\7\ but did not make the 
necessary conforming changes in part 23 where it is referenced.\8\
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    \7\ See 2020 Final Rule at 75515 (``The Commission is amending 
Sec.  45.5 to adopt requirements for UTIs, the globally accepted 
transaction identifier, replacing USIs in existing Sec.  45.5.'')
    \8\ See 17 CFR 23.202(a)(2)(iii) and 17 CFR part 23, subpart I, 
appendix 1, Exhibits A through D.
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C. Updating the Term ``Legal Entity Identifier''

    The Commission is updating and conforming its references to a 
counterparty's identifier to clarify that a counterparty must provide 
its legal entity identifier (LEI) or, when applicable, an alternate 
identifier.\9\ Part 23 does not consistently use the term LEI (in one 
instance using the term unique counterparty identifier instead),\10\ 
and does not clearly address the full set of circumstances when a 
counterparty may use an alternate identifier in lieu of an LEI, but 
rather only provides for the use of an alternate identifier where the 
counterparty is a natural person.\11\
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    \9\ The Commission previously updated part 45 to allow a 
counterparty that is not eligible to receive an LEI to use an 
alternate identifier. See 2020 Final Rule at 75527.
    \10\ See 17 CFR 23.202(a)(2)(v).
    \11\ See 17 CFR part 23, subpart I, appendix 1, Exhibits A 
through D.
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D. Updating Use of the Term ``Unique Product Identifier''

    The Commission is updating and conforming its references to a 
swap's unique product identifier (UPI) to clarify that the swap trading 
record shall include the UPI and description using the product 
classification system as prescribed in part 45, when applicable.\12\ 
Commission regulation Sec.  23.202(a)(2)(vii) does not address the 
possibility that a swap may not have a UPI.\13\
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    \12\ See Swap Data Recordkeeping and Reporting Requirements, 77 
FR 2136, 2166 (Jan. 13, 2012) (explaining that each swap must be 
identified by a UPI and product classification system, when 
applicable).
    \13\ See 17 CFR 23.202(a)(2)(vii).
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E. Updating Example of a Floating Rate

    The Commission is replacing the example floating rate in Exhibit C 
of part 23, subpart I, appendix 1, to use ``Fed Funds.'' Exhibit C 
currently uses the outdated ``USD-Libor-BBA'' as an example for the 
field labeled Floating rate index name/rate period.\14\
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    \14\ 17 CFR part 23, subpart I, appendix 1, Exhibit C. The 
British Bankers Association no longer administers the London 
Interbank Offered Rate (LIBOR), and the ICE Benchmark Administration 
Limited has decided to cease the publication of all remaining LIBOR 
settings on June 30, 2023. See Announcements on the end of LIBOR, 
March 5, 2021, available at: https://www.fca.org.uk/news/press-releases/announcements-end-libor. See also ICE Benchmark 
Administration Publishes Feedback Statement for the Consultation on 
Its Intention to Cease the Publication of LIBOR[supreg] Settings, 
March 5, 2021, available at: https://ir.theice.com/press/news-details/2021/ICE-Benchmark-Administration-Publishes-Feedback-Statement-for-the-Consultation-on-Its-Intention-to-Cease-the-Publication-of-LIBOR-Settings/default.aspx.
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List of Subjects in 17 CFR Part 23

    Reporting and recordkeeping requirements, Swaps, Trading records.

    For the reasons stated in the preamble, 17 CFR part 23 is corrected 
by making the following correcting amendments:

PART 23--SWAP DEALERS AND MAJOR SWAP PARTICIPANTS

0
1. The authority citation for part 23 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6b-1, 6c, 6p, 6r, 6s, 6t, 
9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21.

    Section 23.160 also issued under 7 U.S.C. 2(i); Sec. 721(b), 
Pub. L. 111-203, 124 Stat. 1641 (2010).


0
2. In Sec.  23.202, revise paragraphs (a)(2)(iii), (v), and (vii) to 
read as follows:


Sec.  23.202  Daily trading records.

    (a) * * *
    (2) * * *
    (iii) The unique transaction identifier, as required by Sec.  45.5 
of this chapter, for each swap;
* * * * *
    (v) The name of the counterparty with which each such swap was 
executed, including its legal entity identifier or alternate 
identifier, as required by Sec.  45.6 of this chapter;
* * * * *
    (vii) The product name of each swap, including its unique product 
identifier and description using the product classification system, as 
required by Sec.  45.7 of this chapter;
* * * * *

0
3. In Sec.  23.205, revise paragraph (a) to read as follows:


Sec.  23.205  Real-time public reporting.

    (a) Real-time public reporting of swap transaction and pricing 
data. Each swap dealer and major swap participant shall report all 
information and swap transaction and pricing data required to be 
reported in accordance with the real-time public reporting requirements 
in part 43 of this chapter.
* * * * *

0
4. In appendix 1 to subpart I of part 23:
0
a. In Exhibit A:
0
i. Remove the entry for ``The Unique Swap Identifier for the swap'' and 
add the entry ``The Unique Transaction Identifier for the swap'' in its 
place;
0
ii. Remove the entry ``The Legal Entity Identifier of the reporting 
counterparty'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the reporting counterparty'' in its place;
0
iii. Remove the entry ``The Legal Entity Identifier of the non-
reporting party'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the non-reporting party'' in its place; and

[[Page 8754]]

0
iv. Revise the entries for ``An indication of the counterparty 
purchasing protection'', ``An indication of the counterparty selling 
protection'', and ``Information identifying the reference entity''.
0
b. In Exhibit B:
0
i. Remove the entry for ``The Unique Swap Identifier for the swap'' and 
add the entry ``The Unique Transaction Identifier for the swap'' in its 
place;
0
ii. Remove the entry ``The Legal Entity Identifier of the reporting 
counterparty'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the reporting counterparty'' in its place; and
0
iii. Remove the entry ``The Legal Entity Identifier of the non-
reporting party'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the non-reporting party'' in its place.
0
c. In Exhibit C:
0
i. Remove the entry for ``The Unique Swap Identifier for the swap'' and 
add the entry ``The Unique Transaction Identifier for the swap'' in its 
place;
0
ii. Remove the entry ``The Legal Entity Identifier of the reporting 
counterparty'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the reporting counterparty'' in its place;
0
iii. Remove the entry ``The Legal Entity Identifier of the non-
reporting counterparty'' and add the entry ``The Legal Entity 
Identifier or alternate identifier of the non-reporting counterparty'' 
in its place; and
0
iv. Revise the entry for ``Floating rate index name/rate period''.
0
d. In Exhibit D:
0
i. Remove the entry for ``The Unique Swap Identifier for the swap'' and 
add the entry ``The Unique Transaction Identifier for the swap'' in its 
place;
0
ii. Remove the entry ``The Legal Entity Identifier of the reporting 
counterparty'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the reporting counterparty'' in its place;
0
iii. Remove the entry ``The Legal Entity Identifier of the non-
reporting party'' and add the entry ``The Legal Entity Identifier or 
alternate identifier of the non-reporting party'' in its place; and
0
iv. Revise the entries for ``Buyer'' and ``Seller''.
    The additions and revisions read as follows:

Part 23, Subpart I, Appendix 1--Exhibits A-D

 Exhibit A--Minimum Primary Economic Terms Data--Credit Swaps and Equity
                                  Swaps
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   Data categories and fields for all
                 swaps                               Comment
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                              * * * * * * *
The Unique Transaction Identifier for    The UTI is a unique identifier
 the swap.                                assigned to all swap
                                          transactions which identifies
                                          the transaction (the swap and
                                          its counterparties) uniquely
                                          throughout its duration.
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the reporting    this chapter.
 counterparty.
 
                              * * * * * * *
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the non-         this chapter.
 reporting party.
 
                              * * * * * * *
An indication of the counterparty        Field values: LEI, or alternate
 purchasing protection.                   identifier.
An indication of the counterparty        Field values: LEI, or alternate
 selling protection.                      identifier.
Information identifying the reference    The entity that is the subject
 entity.                                  of the protection being
                                          purchased and sold in the
                                          swap. Field values: LEI, or
                                          alternate identifier.
 
                              * * * * * * *
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    Exhibit B--Minimum Primary Economic Terms Data--Foreign Exchange
                              Transactions
                    [Other than cross-currency swaps]
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       Data fields for all swaps                     Comment
------------------------------------------------------------------------
 
                              * * * * * * *
The Unique Transaction Identifier for    The UTI is a unique identifier
 the swap.                                assigned to all swap
                                          transactions which identifies
                                          the transaction (the swap and
                                          its counterparties) uniquely
                                          throughout its duration.
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the reporting    this chapter.
 counterparty.
 
                              * * * * * * *
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the non-         this chapter.
 reporting party.
 
                              * * * * * * *
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[[Page 8755]]


   Exhibit C--Minimum Primary Economic Terms Data--Interest Rate Swaps
                    [Including cross-currency swaps]
------------------------------------------------------------------------
       Data fields for all swaps                     Comment
------------------------------------------------------------------------
 
                              * * * * * * *
The Unique Transaction Identifier for    The UTI is a unique identifier
 the swap.                                assigned to all swap
                                          transactions which identifies
                                          the transaction (the swap and
                                          its counterparties) uniquely
                                          throughout its duration.
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the reporting    this chapter.
 counterparty.
 
                              * * * * * * *
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the non-         this chapter.
 reporting counterparty.
 
                              * * * * * * *
Floating rate index name/rate period...  E.g., Fed Funds.
 
                              * * * * * * *
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  Exhibit D--Minimum Primary Economic Terms Data--Other Commodity Swaps
------------------------------------------------------------------------
       Data fields for all swaps                     Comment
------------------------------------------------------------------------
 
                              * * * * * * *
The Unique Transaction Identifier for    The UTI is a unique identifier
 the swap.                                assigned to all swap
                                          transactions which identifies
                                          the transaction (the swap and
                                          its counterparties) uniquely
                                          throughout its duration.
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the reporting    this chapter.
 counterparty.
 
                              * * * * * * *
The Legal Entity Identifier or           As provided in Sec.   45.6 of
 alternate identifier of the non-         this chapter.
 reporting party.
 
                              * * * * * * *
Buyer..................................  The counterparty purchasing the
                                          product: (E.g., the payer of
                                          the fixed price (for a swap),
                                          or the payer of the floating
                                          price on the underlying swap
                                          (for a put swaption), or the
                                          payer of the fixed price on
                                          the underlying swap (for a
                                          call swaption). Field values:
                                          LEI, if available, or
                                          alternate identifier.
Seller.................................  The counterparty offering the
                                          product: (E.g., the payer of
                                          the floating price (for a
                                          swap), the payer of the fixed
                                          price on the underlying swap
                                          (for a put swaption), or the
                                          payer of the floating price on
                                          the underlying swap (for a
                                          call swaption). Field values:
                                          LEI, or alternate identifier.
 
                              * * * * * * *
------------------------------------------------------------------------


    Issued in Washington, DC, on January 26, 2023, by the 
Commission.
Christopher Kirkpatrick,
Secretary of the Commission.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Reporting, Recordkeeping, Daily Trading Records, and Swap 
Documentation Requirements for Swap Dealers and Major Swap 
Participants; Corrections--Commission Voting Summary

    On this matter, Chairman Behnam and Commissioners Johnson, 
Goldsmith Romero, Mersinger, and Pham voted in the affirmative. No 
Commissioner voted in the negative.

[FR Doc. 2023-01979 Filed 2-9-23; 8:45 am]
BILLING CODE 6351-01-P