Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
ICR 201807-3038-003
OMB: 3038-0075
Federal Form Document
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 3038-0075 can be found here:
Protection of Collateral of
Counterparties to Uncleared Swaps; Treatment of Securities in a
Portfolio Margining Account in a Commodity Broker Bankruptcy
OMB files this
comment in accordance with 5 CFR 1320.11( c ). This OMB action is
not an approval to conduct or sponsor an information collection
under the Paperwork Reduction Act of 1995. This action has no
effect on any current approvals. If OMB has assigned this ICR a new
OMB Control Number, the OMB Control Number will not appear in the
active inventory. For future submissions of this information
collection, reference the OMB Control Number provided. Pursuant to
5 CFR 1320.11(c), OMB files this comment on this information
collection request (ICR). The agency shall examine public comment
in response to the NPRM and will describe in the supporting
statement of its next collection any public comments received
regarding the collection as well as why (or why it did not)
incorporate the commenter’s recommendation. The next submission to
OMB must include the draft final rule.
Inventory as of this Action
Requested
Previously Approved
11/30/2020
36 Months From Approved
11/30/2020
397,800
0
397,800
347,412
0
347,412
0
0
0
Regulations 23.701 and 23.704
establish reporting requirements that are mandated by Section 4s(l)
of the CEA, which states that SDs and MSPs must notify their
counterparties of the right to have their initial margin segregated
and to maintain the confirmations and elections related to such
notices as business records. The reporting and recordkeeping
requirements are necessary to implement the objectives of Section
4s(1). The data required to be compiled and maintained pursuant to
regulation 23.701 and 23.704 would be used by uncleared swap
counterparties (and, in some instances, the CFTC and
self-regulatory organizations). For example, the information
received by uncleared swap counterparties pursuant to Regulation
23.701 would alert counterparties to their statutory right, if they
so choose, to have funds or property used as margin in uncleared
swaps transactions with SDs and MSPs kept segregated from the
property of the SD or MSP. Likewise, the information provided would
further alert counterparties of the need to request such
segregation if they wish to exercise this right. The Commodity
Futures Trading Commission is proposing to amend selected
provisions of its regulations in order to simplify certain
requirements for swap dealers and major swap participants
concerning notification of counterparties of their right to
segregate initial margin for uncleared swaps, and to modify
requirements for the handling of segregated initial
margin.
The burdens have been adjusted
to reflect the Commission’s new estimate for the number of
responses and burden hours as a result of the changes to the timing
for providing the right to segregation notification by SDs or MSP
to counterparties. The aggregate burden hours (143,412) is a
reduction from from the previous figure (346,412) reflecting the
Commission’s revised estimate of the annual number of anticipated
new counterparties per SD or MSP from 1,300 to 300.
$0
No
No
No
No
Yes
No
Uncollected
Herminio Castro 202 418-6705
hcastro@cftc.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.