Swap Dealer and Major Swap
Participant Conflicts of Interest and Business Conduct Standards
with Counterparties
Revision of a currently approved collection
No
Regular
09/30/2025
Requested
Previously Approved
36 Months From Approved
12/31/2026
145,152
141,120
234,686
247,059
0
0
The Commission has adopted Subpart H
of Part 23 of its regulations (EBCS Rules) and Commission
regulation 23.605, requiring swap dealers and major swap
participants to follow specified procedures and provide specified
disclosures in their dealings with counter-parties, to adopt and
implement conflicts of interest procedures and disclosures, and to
maintain specified records related to those requirements. In
addition, the Commission recently finalized certain exceptions from
the EBCS Rules for certain foreign swaps in § 23.23(e). To the
extent a swap dealer or major swap participant avails itself of one
or more of these exceptions, when effective, § 23.23(h)(1) imposes
information collection requirements in lieu of such requirements in
the EBCS Rules. The information collection obligations imposed by
the regulations are essential to ensuring that swap dealers and
major swap participants develop and maintain procedures and
disclosures required by the Commodity Exchange Act (CEA) and
Commission regulations. In its notice of proposed rulemaking (the
“Proposal”), the Commission proposes to (1) amend certain business
conduct standards for SDs and MSPs (together “Swap Entities”) in
their dealings with counterparties contained in the EBCS Rules; and
(2) amend the swap trading relationship documentation rule for Swap
Entities in existing Commission regulation 23.504. These amendments
would provide exceptions to compliance with such requirements when
executing swaps that are: (1) intended by the parties to be cleared
contemporaneously with execution; or (2) subject to prime broker
arrangements that meet certain qualifying conditions. These
proposed amendments, if adopted, are intended to supersede the
Market Participants Division’s (“MPD”) no-action positions
contained in CFTC Staff Letters 12-58, 13-11, 13-12, 19-06, and
23-01 (collectively, the “Covered Staff Letters”) and to make other
adjustments to such rules in order to harmonize such requirements
with those of the Securities and Exchange Commission (“SEC”) and
the Municipal Securities Rulemaking Board to reduce administrative
burdens on dually-registered entities.
The Commission is proposing to
amend the information collection under OMB Control No. 3038–0079 to
reduce the burden for SDs. As discussed in the Proposal, the
Commission preliminarily estimates that eliminating the requirement
to provide a PTMMM will decrease SDs’ burden hours incurred for
each swap transaction under Commission regulation 23.431 by 10% on
average across all SDs; and eliminating the Scenario Analysis
Requirement as proposed will decrease a SD’s burden hours incurred
for each swap transaction under Commission regulation 23.431 by 5%
on average across all SDs. Thus, the Commission estimates that the
burden hours for compliance with Commission regulation 23.431 will
decrease by 15% (from app. 129,540 to 110,108 burden hours). This
results in an overall decrease in the Commission’s estimate of
total annual burden hours from 254,118 to234,686 (a decrease of
19,432 annual burden hours), as well as a decrease in associated
labor costs from $235,294 to $217,302 (a reduction in annual labor
costs of $17,992).
$0
No
No
No
No
Yes
No
No
Kenny Wright 202 326-2907
kwright@ftc.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.
2025 Supporting Statement 3038-0079 (Prime Brokerage NPRM).docx
Swap Dealer and Major Swap Participant Conflicts of Interest and Business Conduct Standards with Counterparties