62364 Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 

1More detailed information regarding this 

collection, including more detailed burden 

estimates, can be found in the OMB Supporting 

Statement posted at https://www.federalreserve.gov/ 

apps/reportingforms/home/review. On the page 

displayed at the link, you can find the OMB 

Supporting Statement by referencing the collection 

identifier, FR R. 

of a U.S. person constitute less than 10 

percent of the total number of trust or 

fiduciary accounts of the foreign branch. 

Under section 218.723(c)(2)(ii) of 

Regulation R, a bank will be deemed to 

have reasonable cause to believe that a 

trust or fiduciary account of a foreign 

branch of the bank is not held by or for 

the benefit of a U.S. person if, among 

other things, the records of the foreign 

branch indicate that the 

accountholder(s) and beneficiary(ies) of 

the account is not a U.S. person. In 

order to receive the benefits of this 

provision the foreign branch must keep 

such records while the account(s) at 

issue are open, so that supervisors can 

monitor compliance. The Board has not 

estimated additional burden for this 

provision because it expects that records 

about whether accountholders and 

beneficiaries are U.S. persons would be 

compiled and maintained by banks in 

the normal course of their activities. 

Frequency: Event-generated. 

Respondents: Banks, as defined in the 

Exchange Act, that qualify for the 

exemptions from the Exchange Act 

definition of broker. 

Total estimated number of 

respondents: 3,185. 

Total estimated change in burden: 0. 

Total estimated annual burden hours: 

62,709.1

Board of Governors of the Federal Reserve 

System, September 5, 2023. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

[FR Doc. 2023–19477 Filed 9–8–23; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

Proposed Agency Information 

Collection Activities; Comment 

Request 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Notice, request for comment. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) invites 

comment on a proposal to extend for 

three years, with revision, the SingleCounterparty Credit Limits (FR 2590; 

OMB No. 7100–0377). 

DATES: Comments must be submitted on 

or before November 13, 2023. 

ADDRESSES: You may submit comments, 

identified by FR 2590, by any of the 

following methods: 

• Agency Website: https://

www.federalreserve.gov/. Follow the 

instructions for submitting comments at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx. 

• Email: regs.comments@

federalreserve.gov. Include the OMB 

number or FR number in the subject line 

of the message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Federal Reserve Board of 

Governors, Attn: Ann E. Misback, 

Secretary of the Board, Mailstop M– 

4775, 2001 C St. NW, Washington, DC 

20551. 

All public comments are available 

from the Board’s website at https://

www.federalreserve.gov/apps/foia/ 

proposedregs.aspx as submitted, unless 

modified for technical reasons or to 

remove personally identifiable 

information at the commenter’s request. 

Accordingly, comments will not be 

edited to remove any confidential 

business information, identifying 

information, or contact information. 

Public comments may also be viewed 

electronically or in paper in Room M– 

4365A, 2001 C St. NW, Washington, DC 

20551, between 9:00 a.m. and 5:00 p.m. 

on weekdays, except for Federal 

holidays. For security reasons, the 

Board requires that visitors make an 

appointment to inspect comments. You 

may do so by calling (202) 452–3684. 

Upon arrival, visitors will be required to 

present valid government-issued photo 

identification and to submit to security 

screening in order to inspect and 

photocopy comments. 

Additionally, commenters may send a 

copy of their comments to the Office of 

Management and Budget (OMB) Desk 

Officer for the Federal Reserve Board, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street NW, 

Washington, DC 20503, or by fax to 

(202) 395–6974. 

FOR FURTHER INFORMATION CONTACT: 

Federal Reserve Board Clearance 

Officer—Nuha Elmaghrabi—Office of 

the Chief Data Officer, Board of 

Governors of the Federal Reserve 

System, nuha.elmaghrabi@frb.gov, (202) 

452–3884. 

SUPPLEMENTARY INFORMATION: On June 

15, 1984, OMB delegated to the Board 

authority under the Paperwork 

Reduction Act (PRA) to approve and 

assign OMB control numbers to 

collections of information conducted or 

sponsored by the Board. In exercising 

this delegated authority, the Board is 

directed to take every reasonable step to 

solicit comment. In determining 

whether to approve a collection of 

information, the Board will consider all 

comments received from the public and 

other agencies. 

During the comment period for this 

proposal, a copy of the proposed PRA 

OMB submission, including the draft 

reporting form and instructions, 

supporting statement (which contains 

more detail about the information 

collection and burden estimates than 

this notice), and other documentation, 

will be made available on the Board’s 

public website at https://

www.federalreserve.gov/apps/ 

reportingforms/home/review or may be 

requested from the agency clearance 

officer, whose name appears above. 

Final versions of these documents will 

be made available at https://

www.reginfo.gov/public/do/PRAMain, if 

approved. 

Request for Comment on Information 

Collection Proposal 

The Board invites public comment on 

the following information collection, 

which is being reviewed under 

authority delegated by the OMB under 

the PRA. Comments are invited on the 

following: 

a. Whether the proposed collection of 

information is necessary for the proper 

performance of the Board’s functions, 

including whether the information has 

practical utility; 

b. The accuracy of the Board’s 

estimate of the burden of the proposed 

information collection, including the 

validity of the methodology and 

assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of 

information collection on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or startup costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

At the end of the comment period, the 

comments and recommendations 

received will be analyzed to determine 

the extent to which the Board should 

modify the proposal. 

Proposal Under OMB Delegated 

Authority To Extend for Three Years, 

With Revision, the Following 

Information Collection 

Collection title: Single-Counterparty 

Credit Limits. 

Collection identifier: FR 2590. 


ddrumheller on DSK120RN23PROD with NOTICES1
Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 62365 

1 83 FR 38460 (August 6, 2018). See also 84 FR 

59032 (November 1, 2019) (finalizing the SCCL rule 

for SLHCs). 

2See 12 CFR part 252, subparts H and Q. 

3See 12 CFR part 238, subpart Q. 

4 84 FR 64070, 64071 (November 20, 2019). 

5 83 FR 38460, 38461 (August 6, 2018); see also 

12 U.S.C. 5365(e)(1). 

6Note that only advanced approaches firms may 

request to use internal models. See 12 CFR 217, 

subpart E. 7Firms using IMM use two dedicated columns on 

Schedule G–4. A firm using CEM would report the 

gross credit exposure of derivative netting sets (precollateral exposure at default) on Schedule G–4, 

report collateral on Schedule M–1, report net credit 

exposures by deducting the collateral reported on 

Schedules M–1 from the gross credit exposures in 

Schedule G–4, and report risk-shifted exposures on 

Schedule G–5 for the adjusted market value of noncash collateral. 

8Under SA–CCR, collateral is included in both 

the recovery cost and the potential future exposure. 

See 12 CFR 217, subpart D. 

OMB control number: 7100–0377. 

General description of collection: The 

FR 2590 was implemented in 

connection with the Board’s singlecounterparty credit limits rule (SCCL 

rule),1 codified in the Board’s 

Regulation YY—Enhanced Prudential 

Standards (12 CFR part 252) 2 and the 

Board’s Regulation LL—Savings and 

Loan Holding Companies (12 CFR part 

238).3

The information collected by the FR 

2590 reporting form allows the Board to 

monitor a covered company’s or a 

covered foreign entity’s compliance 

with the SCCL rule. A covered company 

is any U.S. bank holding company 

(BHC) that is subject to Category I, II, or 

III standards or any savings and loan 

holding company (SLHC) that is subject 

to Category II or III standards. A covered 

foreign entity is a foreign banking 

organization (FBO) that is subject to 

Category II or III standards or that has 

total global consolidated assets of $250 

billion or more, and any U.S. 

intermediate holding company (IHC) 

that is subject to Category II or III 

standards. In addition to the reporting 

form, the FR 2590 information 

collection incorporates notice 

requirements pertaining to requests that 

may be made by a covered company or 

covered foreign entity to request 

temporary relief from specific 

requirements of the SCCL rule, as well 

as a requirement that filers of the FR 

2590 reporting form retain an exact copy 

of each completed FR 2590. 

Proposed revisions: The Board 

proposes to make four clarifications and 

one revision to the FR 2590 form and 

instructions. The Board proposes to 

clarify that a respondent that is an FBO 

subject to a large exposure standard on 

a consolidated basis established by its 

home-country supervisor that is 

consistent with the framework 

established by the Basel Committee on 

Banking Supervision (BCBS) may 

simply report that on line 1 of the FR 

2590 and is not required to submit 

additional documentation of 

compliance. This clarification is 

intended to confirm the intention 

expressed in the Federal Register notice 

for the final FR 2590 form, which states 

that ‘‘submission of the FR 2590 report 

with this [certification] box checked 

generally will be sufficient to meet the 

reporting requirement of the SCCL 

rule.’’ 4 The proposed revised 

instructions specify that a respondent 

may be required to provide additional 

information or reporting concerning its 

counterparty credit exposures upon 

written request by the Board, consistent 

with the SCCL rule. 

The Board further proposes to clarify 

that a respondent organization should 

use the tier 1 capital amount reported 

on the Consolidated Financial 

Statements for Holding Companies (FR 

Y–9C; OMB No. 7100–0128) or on the 

Capital and Asset Report for Foreign 

Banking Organization (FR Y–7Q; OMB 

No. 7100–0125) for the same reporting 

period as the FR 2590 form being 

submitted when calculating and 

reporting compliance with the SCCL 

rule (meaning that the FR 2590 form 

reporting compliance for Q1 of a given 

year should use the tier 1 capital 

amount reported by the firm on the FR 

Y–9C or FR Y–7Q for Q1 of that same 

year). Similarly, the amount included 

for the most recent quarter for 

calculating total consolidated assets on 

the FR Y–9C or FR Y–7Q should be that 

which is reported for the same reporting 

period as the FR 2590 form being 

submitted. To the extent that a firm’s 

tier 1 capital or total consolidated assets 

change significantly within a given 

quarter due to unplanned events (e.g., 

asset deterioration), the Board believes 

that it would be appropriate for a 

respondent organization to manage and 

to limit its net credit exposure to 

counterparties based on its actual tier 1 

capital or assets, including, if necessary, 

by reducing net credit exposure to a 

specific counterparty. This would be 

consistent with the purpose of the SCCL 

rule, which is to limit the risks posed to 

covered companies by the failure of any 

individual firm.5

The Board also proposes to clarify 

that a respondent organization must 

maintain in their files a physical or 

electronic scanned copy of the manually 

signed and attested printout of the data 

being submitted for a period of three 

years after submission, with the signed 

cover page of the FR 2590 being 

sufficient to fulfill the signature and 

attestation requirement. This 

requirement is aligned with other 

regulatory reporting forms and is 

intended to ensure appropriate 

oversight and accountability regarding 

submitted data. Currently, FR 2590 

respondents are required to maintain 

these records, but the instructions do 

not specify the duration of the 

recordkeeping requirement. 

The Board also proposes to clarify in 

the FR 2590 form that the order of 

counterparties should be the same 

across Schedules G–1 through G–4, M– 

1 through M–2, and the Summary of Net 

Credit Exposures. 

The Board also proposes to revise 

Schedule M–1 of the FR 2590 to allow 

respondents calculating derivative 

transaction exposures using 

standardized approach for counterparty 

credit risk (SA–CCR) to report collateral 

received in connection with those 

derivative transactions in a new Table 

B. Table B would not be included in the 

respondent’s summary of net credit 

exposures. For valuing credit exposure 

resulting from derivative transactions, 

firms are authorized to use any method 

they would be authorized to use for 

purposes of calculating compliance with 

the Board’s risk-based capital 

requirements, including the internal 

models method (IMM), the current 

exposure method (CEM), or SA–CCR.6

Firms using either CEM or IMM are 

currently able to report accurate 

derivative exposures.7 Firms calculating 

derivative exposures under SA–CCR, 

however, have experienced difficulties 

under the FR 2590 and current 

instructions in reporting accurately their 

gross credit exposure, collateral, and net 

credit exposure because collateral is 

factored directly into the SA–CCR 

calculation and cannot truly be 

separated out into the elements 

specified on FR 2590.8 For example, a 

respondent reporting both its gross 

credit exposure as calculated using SA– 

CCR and collateral received as separate 

items would cause collateral to be 

double-counted when calculating its net 

credit exposures, resulting in artificially 

lower net credit exposures with respect 

to the SCCL rule. To avoid this doublecounting, some respondents chose to 

not report collateral in such cases. 

Because of the importance of 

collateral as a risk mitigant, especially 

in exiting defaulted positions, the Board 

proposes creating a new table (Table B) 

in Schedule M–1 to allow respondents 

calculating derivative transaction 

exposures using SA–CCR to accurately 

report their exposure and collateral in 

connection with those derivative 


ddrumheller on DSK120RN23PROD with NOTICES1
62366 Federal Register / Vol. 88, No. 174 / Monday, September 11, 2023 / Notices 

9More detailed information regarding this 

collection, including more detailed burden 

estimates, can be found in the OMB Supporting 

Statement posted at https://www.federalreserve.gov/ 

apps/reportingforms/home/review. On the page 

displayed at the link, you can find the OMB 

Supporting Statement by referencing the collection 

identifier, FR 2590. 

transactions. This information is 

consistent with other information 

requested by FR 2590 and is not readily 

available through other regulatory 

reporting forms. 

Frequency: Quarterly, eventgenerated. 

Respondents: U.S. BHCs that are 

subject to Category I, II, or III standards, 

FBOs that are subject to Category II or 

III standards or that have total global 

consolidated assets of $250 billion or 

more, and SLHCs and U.S. IHCs that are 

subject to Category II or III standards. 

Total estimated number of 

respondents: 83. 

Estimated average hours per response: 

Reporting FR 2590 Form: 170.56. 

Reporting Requests for temporary 

relief: 10. 

Recordkeeping: 0.25. 

Total estimated change in burden: 0. 

Total estimated annual burden hours: 

56,719.9

Board of Governors of the Federal Reserve 

System, September 5, 2023. 

Michele Taylor Fennell, 

Deputy Associate Secretary of the Board. 

[FR Doc. 2023–19475 Filed 9–8–23; 8:45 am] 

BILLING CODE 6210–01–P 

FEDERAL RESERVE SYSTEM 

Proposed Agency Information 

Collection Activities; Comment 

Request 

AGENCY: Board of Governors of the 

Federal Reserve System. 

ACTION: Notice, request for comment. 

SUMMARY: The Board of Governors of the 

Federal Reserve System (Board) invites 

comment on a proposal to extend for 

three years, without revision, the 

Recordkeeping and Disclosure 

Requirements Associated with 

Regulation H (Securities Transactions 

by State Member Banks) (FR H–3; OMB 

No. 7100–0196). 

DATES: Comments must be submitted on 

or before November 13, 2023. 

ADDRESSES: You may submit comments, 

identified by FR H–3, by any of the 

following methods: 

• Agency Website: https://

www.federalreserve.gov/. Follow the 

instructions for submitting comments at 

https://www.federalreserve.gov/apps/ 

foia/proposedregs.aspx. 

• Email: regs.comments@

federalreserve.gov. Include the OMB 

number or FR number in the subject line 

of the message. 

• Fax: (202) 452–3819 or (202) 452– 

3102. 

• Mail: Federal Reserve Board of 

Governors, Attn: Ann E. Misback, 

Secretary of the Board, Mailstop M– 

4775, 2001 C St. NW, Washington, DC 

20551. 

All public comments are available 

from the Board’s website at https://

www.federalreserve.gov/apps/foia/ 

proposedregs.aspx as submitted, unless 

modified for technical reasons or to 

remove personally identifiable 

information at the commenter’s request. 

Accordingly, comments will not be 

edited to remove any confidential 

business information, identifying 

information, or contact information. 

Public comments may also be viewed 

electronically or in paper in Room M– 

4365A, 2001 C St. NW, Washington, DC 

20551, between 9:00 a.m. and 5:00 p.m. 

on weekdays, except for Federal 

holidays. For security reasons, the 

Board requires that visitors make an 

appointment to inspect comments. You 

may do so by calling (202) 452–3684. 

Upon arrival, visitors will be required to 

present valid government-issued photo 

identification and to submit to security 

screening in order to inspect and 

photocopy comments. 

Additionally, commenters may send a 

copy of their comments to the Office of 

Management and Budget (OMB) Desk 

Officer for the Federal Reserve Board, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, New Executive Office Building, 

Room 10235, 725 17th Street NW, 

Washington, DC 20503, or by fax to 

(202) 395–6974. 

FOR FURTHER INFORMATION CONTACT: 

Federal Reserve Board Clearance 

Officer—Nuha Elmaghrabi—Office of 

the Chief Data Officer, Board of 

Governors of the Federal Reserve 

System, nuha.elmaghrabi@frb.gov, (202) 

452–3884. 

SUPPLEMENTARY INFORMATION: On June 

15, 1984, OMB delegated to the Board 

authority under the Paperwork 

Reduction Act (PRA) to approve and 

assign OMB control numbers to 

collections of information conducted or 

sponsored by the Board. In exercising 

this delegated authority, the Board is 

directed to take every reasonable step to 

solicit comment. In determining 

whether to approve a collection of 

information, the Board will consider all 

comments received from the public and 

other agencies. 

During the comment period for this 

proposal, a copy of the proposed PRA 

OMB submission, including the draft 

reporting form and instructions, 

supporting statement (which contains 

more detail about the information 

collection and burden estimates than 

this notice), and other documentation, 

will be made available on the Board’s 

public website at https://

www.federalreserve.gov/apps/ 

reportingforms/home/review or may be 

requested from the agency clearance 

officer, whose name appears above. 

Final versions of these documents will 

be made available at https://

www.reginfo.gov/public/do/PRAMain, if 

approved. 

Request for Comment on Information 

Collection Proposal 

The Board invites public comment on 

the following information collection, 

which is being reviewed under 

authority delegated by the OMB under 

the PRA. Comments are invited on the 

following: 

a. Whether the proposed collection of 

information is necessary for the proper 

performance of the Board’s functions, 

including whether the information has 

practical utility; 

b. The accuracy of the Board’s 

estimate of the burden of the proposed 

information collection, including the 

validity of the methodology and 

assumptions used; 

c. Ways to enhance the quality, 

utility, and clarity of the information to 

be collected; 

d. Ways to minimize the burden of 

information collection on respondents, 

including through the use of automated 

collection techniques or other forms of 

information technology; and 

e. Estimates of capital or startup costs 

and costs of operation, maintenance, 

and purchase of services to provide 

information. 

At the end of the comment period, the 

comments and recommendations 

received will be analyzed to determine 

the extent to which the Board should 

modify the proposal. 

Proposal Under OMB Delegated 

Authority To Extend for Three Years, 

Without Revision, the Following 

Information Collection 

Collection title: Recordkeeping and 

Disclosure Requirements Associated 

with Regulation H (Securities 

Transactions by State Member Banks). 

Collection identifier: FR H–3. 

OMB control number: 7100–0196. 

General description of collection: 

Section 15C of the Securities Exchange 

Act of 1934 (the Act), establishes federal 

regulation of brokers and dealers of 


ddrumheller on DSK120RN23PROD with NOTICES1