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

Forms and Documents
Document
Name
Status
Supporting Statement A
2018-07-27
ICR Details
3038-0075 201807-3038-003
Historical Inactive 201707-3038-005
CFTC
Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
Revision of a currently approved collection   No
Regular
Comment filed on proposed rule and continue 11/29/2018
Retrieve Notice of Action (NOA) 07/30/2018
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.

PL: Pub.L. 113 - 203 124 Stat 1376 (2010) Name of Law: Dodd-Frank Act
   US Code: 7 USC 6s Name of Law: CEA
  
None

3038-AE78 Proposed rulemaking 83 FR 36484 07/30/2018

No

No
Yes
Changing Regulations
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.
07/30/2018


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