[Federal Register Volume 86, Number 43 (Monday, March 8, 2021)]
[Notices]
[Pages 13341-13343]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-04667]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: In compliance with the Paperwork Reduction Act of 1995 
(``PRA''), this notice announces that the Information Collection 
Request (``ICR'') abstracted below has been forwarded to the Office of 
Information and Regulatory Affairs (``OIRA''), of the Office of 
Management and Budget (``OMB''), for review and comment. The ICR 
describes the nature of the information collection and its expected 
costs and burden.

DATES: Comments must be submitted on or before April 7, 2021.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be submitted within 30 days of this 
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by 
selecting ``Currently under 30-day Review--Open for Public Comments'' 
or by using the website's search function. Comments can be entered 
electronically by clicking on the ``comment'' button next to the 
information collection on the ``OIRA Information Collections Under 
Review'' page, or the ``View ICR--Agency Submission'' page. A copy of 
the supporting statement for the collection of information discussed 
herein may be obtained by visiting https://www.reginfo.gov/public/do/PRAMain.
    In addition to the submission of comments to https://Reginfo.gov as 
indicated above, a copy of all comments submitted to OIRA may also be 
submitted to the Commodity Futures Trading Commission (the 
``Commission'' or ``CFTC'') by clicking on the ``Submit Comment'' box 
next to the descriptive entry for OMB Control No. 3038-0070, at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
    Or by either of the following methods:
    <bullet> Mail: Christopher Kirkpatrick, Secretary of the 
Commission,

[[Page 13342]]

Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW, Washington, DC 20581.
    <bullet> Hand Delivery/Courier: Same as Mail above.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments submitted to the Commission should 
include 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.\1\ 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 https://www.cftc.gov that 
it may deem to be inappropriate for publication, such as obscene 
language. All submissions that have been redacted or removed that 
contain comments on the merits of the ICR 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.
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    \1\ 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Meghan Tente, Division of Data, 
Commodity Futures Trading Commission, (202) 418-5785, email: 
_____________________________________-
<a href="/cdn-cgi/l/email-protection#ff928b9a918b9abf9c998b9cd1989089"><span class="__cf_email__" data-cfemail="cda0b9a8a3b9a88daeabb9aee3aaa2bb">[email protected]</span></a>, and refer to OMB Control No. 3038-0070.

SUPPLEMENTARY INFORMATION: 
    Title: Real Time Public Reporting and Block Trades (OMB Control No. 
3038-0070). This is a request for comment on revision of a currently 
approved information collection.
    Abstract: The collection of information is needed to ensure that 
swap data repositories publicly disseminate swap data as required by 
the Commodity Exchange Act, as amended by the Dodd-Frank Wall Street 
Reform and Consumer Protection Act (``Dodd-Frank Act'').\2\ The Dodd-
Frank Act directed the CFTC to adopt rules providing for the real-time 
public reporting and dissemination of swap data and rules for block 
trades.
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    \2\ Public Law 111-203, 124 Stat. 1376 (2010).
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    On September 17, 2020, the Commission adopted a rulemaking amending 
its part 43 regulations.\3\ In the release accompanying the Final Rule, 
the Commission included some cost and burden estimates that were not 
included in the Proposal, including changes to some of its previous 
estimates.\4\ The Commission explains these cost and burden estimates 
further below.
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    \3\ The Commission proposed the amendments to part 43 in 
February 2020. Real-Time Public Reporting Requirements, 85 FR 21516 
(Apr. 17, 2020) (the ``Proposal''). The final rule was published in 
the Federal Register, 85 FR 75422 (Nov. 25, 2020) (the ``Final 
Rule'').
    \4\ In the Final Rule, the Commission revised the information 
collection to reflect the adoption of amendments to part 43, 
including changes to reflect adjustments that were made to the Final 
Rule in response to comments on the Proposal (not relating to PRA). 
In the Proposal, the Commission omitted the aggregate reporting 
burden for proposed Sec.  43.3 and Sec.  43.4 in the preamble and 
instead provided PRA estimates for all of part 43. In the Final 
Rule, the Commission included PRA estimates for final Sec.  43.3 and 
Sec.  43.4 which are set forth below. In addition, in the Final 
Rule, the Commission revised the information collection to include 
burden estimates for one-time costs that SDRs, SEFs, DCMs, and 
reporting counterparties could incur to modify their systems to 
adopt the changes to part 43, as well as burden estimates for these 
entities to perform any annual maintenance or adjustments to 
reporting systems related to the changes. These estimates are also 
set forth below. The Commission did not include PRA estimates for 
all of part 43 in the Final Rule preamble as the Final Rule only 
affects PRA estimates for Sec.  43.3 and Sec.  43.4. However, PRA 
estimates for all of part 43 were included in the supporting 
statement being filed with OMB in connection with the Final Rule 
(excluding estimates related to the Commission's block trade 
regulation, as the block trade regulation is not affected by the 
final rulemaking).
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    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 control number. On December 2, 2020, the Commission 
published in the Federal Register notice of the proposed revision of 
this information collection (including estimated costs related to the 
modification or maintenance of systems in order to be in compliance 
with the amendments to Sec.  43.3 that were adopted in the Final Rule), 
and provided 60 days for public comment on the proposed revision, 85 FR 
77437 (``60-Day Notice''). The Commission did not receive any comments 
on the 60-Day Notice.

1. Amendments to Regulation 43.3

    In the Proposal, the Commission omitted the aggregate reporting 
burden for proposed Sec.  43.3 (as well as Sec.  43.4) and instead 
provided PRA estimates for all of part 43. The Final Rule included the 
estimated aggregate reporting burden for Sec.  43.3 as follows:
    Estimated Number of Respondents: 1,729 SEFs, DCMs, and reporting 
counterparties.
    Estimated Number of Reports per Respondent: 2,998.
    Average Number of Hours per Report: 0.067.
    Estimated Gross Annual Reporting Burden: 725,696.
    Existing Sec.  43.3 requires reporting counterparties to send swap 
reports to swap data repositories (``SDRs'') as soon as technologically 
practicable after execution. The Commission did not include any burden 
estimates in the Proposal related to the modification or maintenance of 
systems in order to be in compliance with the proposed amendments to 
Sec.  43.3.\5\ However, for the Final Rule, the Commission recognized 
certain entities would incur start-up costs to modify their reporting 
systems and operational costs to maintain them going forward to adopt 
the changes to Sec.  43.3 \6\ in the Final Rule, as explained below.
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    \5\ The supporting statement for part 43 submitted for the 
Proposal only showed negative incremental changes in Attachment A 
(e.g., showed a negative adjustment of 30,300 responses and negative 
2,030.10 burden hours).
    \6\ The Commission did not include any burden estimates in the 
Final Rule related to the modification or maintenance of systems in 
order to be in compliance with the amendments to Sec.  43.4. To 
avoid double-counting, the Commission included the costs associated 
with updates to Sec.  43.4 in the estimates for Sec.  43.3, as they 
would be captured in the costs of updating systems based on the list 
of swap data elements in part 43.
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    In the Final Rule, the Commission estimated the cost for a 
reporting entity, including designated contracts markets (``DCMs''), 
derivatives clearing organizations (``DCOs''), major swap participants 
(``MSPs''), swap dealers (``SDs''), non-SD/MSP/DCO counterparties, and 
swap execution facilities (``SEFs''), to modify their systems and 
maintain those modifications going forward to adopt the Final Rule 
could range from $24,000 to $74,000 per entity. There are an estimated 
1,732 reporting entities, for a total estimated cost of $84,868,000.\7\ 
As described in the Final Rule, the estimated cost range is based on a 
number of assumptions that cover tasks required to design, test, and 
implement an updated data system based on the new swap data elements 
contained in part 43.
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    \7\ Based on the Commission's eight years of experience in 
administering the existing-real time reporting regulation, the 
Commission believes that the costs to reporting entities to 
implement the Final Rule will be on the lower end of the range, 
closer to $24,000 than to $74,000.
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    In the Final Rule, the Commission further estimated that the cost 
for an SDR to modify their systems, including their data reporting, 
ingestion, and validation systems, and maintain those modifications 
going forward may range from $144,000 to $510,000 per SDR. There are 
currently three SDRs, for an estimated total cost of $981,000.\8\
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    \8\ As described in the Final Rule, the estimated cost ranges 
are based on a number of assumptions that cover the set of tasks 
required for the SDR to design, test, and implement an updated data 
system based on the new swap data elements contained in part 43.

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[[Page 13343]]

2. Amendments to Regulation 43.4

    In the Final Rule, the Commission estimated that the amendments 
would reduce the number of mirror swaps SDRs would need to publicly 
disseminate by 100 reports per each SDR, for an aggregate burden hour 
reduction of 20.10 hours. In addition, the Commission estimated that 
the aggregate reporting burden total for Sec.  43.4, as adjusted for 
the reduction in reporting by SDRs of mirror swaps, is as follows:
    Estimated Number of Respondents: 3.
    Estimated Number of Reports per Respondent: 1,499,900.
    Average Number of Hours per Report: 0.009.
    Estimated Gross Annual Reporting Burden: 40,497.
    The Commission did not include any burden estimates in the Proposal 
related to the modification or maintenance of systems in order to be in 
compliance with the proposed amendments to Sec.  43.4. To avoid double-
counting, the Commission included the costs associated with updates to 
Sec.  43.4 in the estimates for Sec.  43.3 discussed above, as they 
would be captured in the costs of updating systems based on the list of 
swap data elements in part 43.
    Burden Statement: Provisions of CFTC Regulations 43.3, 43.4, and 
43.6 result in information collection requirements within the meaning 
of the PRA. With respect to the ongoing reporting and recordkeeping 
burdens associated with swaps, the CFTC is revising its estimate of the 
burden of this collection (excluding estimates related to the 
Commission's block trade regulation, which is not affected by the final 
rulemaking). The Commission believes that SDs, MSPs, SEFs, DCMs, DCOs, 
and non-SD/MSP/DCO counterparties incur an annual time-burden of 
771,831 hours. This time-burden represents a proportion of the burden 
respondents incur to operate and maintain their swap data recordkeeping 
and reporting systems. The respondent burden for this collection 
(excluding estimates related to the Commission's block trade 
regulation) is estimated to be as follows:
    Respondents/Affected Entities: SDs, MSPs, and other counterparties 
to a swap transaction (i.e., non-SD/MSP/DCO counterparties).
    Estimated Number of Respondents: 1,732.
    Estimated Average Burden Hours per Respondent: 445.
    Estimated Total Annual Burden Hours: 771,831 hours.
    Frequency of Collection: Ongoing.
    Capital or Operating and Maintenance Costs: $85,849,000.\9\
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    \9\ In the Proposal, the Commission omitted the aggregate 
reporting burden for proposed Sec.  43.3 and Sec.  43.4 in the 
preamble and instead provided PRA estimates for all of part 43 
(excluding estimates related to the Commission's block trade 
regulation, which is not affected by the final rulemaking). In the 
Final Rule, the Commission included PRA estimates for final Sec.  
43.3 and Sec.  43.4 in the preamble because these are the only 
sections of part 43 affected by the final rulemaking. Attachment A 
to the supporting statement for the Proposal only showed the changes 
in the burden estimates for Sec.  43.3 and Sec.  43.4 for the 
Proposal. For the Final Rule, the Commission revised Attachment A to 
the supporting statement that was filed with OMB to include 
aggregate burden estimates for all requirements in the collection 
(excluding estimates related to the Commission's block trade 
regulation, as the burden estimates for the block trade regulation 
are not affected by the final rulemaking). In addition, in the Final 
Rule, the Commission revised the information collection to include 
burden estimates for one-time costs that SDRs, SEFs, DCMs, and 
reporting counterparties could incur to modify their systems to 
adopt the changes to part 43, as well as burden estimates for these 
entities to perform any annual maintenance or adjustments to 
reporting systems related to the changes. The estimates in the 
supporting statements for the Final Rule are consistent with the 
estimates shown in the Burden Statement above (e.g., the supporting 
statement for the Final Rule reflects that there are 1,732 
respondents and that the total annual number of burden hours across 
all respondents is 771,831.)

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

    Dated: March 2, 2021.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2021-04667 Filed 3-5-21; 8:45 am]
BILLING CODE 6351-01-P


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