Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices 77563 

2 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8 

(b)(3)(vi). 

implement conflict of interest 

procedures that address such issues as 

the Commission determines to be 

appropriate. Section 4s(j)(5) also 

requires SDs and MSPs to ensure that 

any persons providing clearing activities 

or making determinations as to 

accepting clearing customers are 

separated by appropriate informational 

partitions from persons whose 

involvement in pricing, trading, or 

clearing activities might bias their 

judgment or contravene the core 

principle of open access. Section 4s(j)(6) 

of the CEA prohibits a SD or MSP from 

adopting any process or taking any 

action that results in any unreasonable 

restraint on trade or imposes any 

material anticompetitive burden on 

trading or clearing, unless necessary or 

appropriate to achieve the purposes of 

the Act. Section 2(h)(1)(B)(ii) of the CEA 

requires that derivatives clearing 

organization (‘‘DCO’’) rules provide for 

the nondiscriminatory clearing of swaps 

executed bilaterally or through an 

unaffiliated designated contract market 

or swap execution facility. 

To address these provisions, the 

Commission promulgated regulations 

that prohibit arrangements involving 

FCMs, SDs, MSPs, and DCOs that would 

(a) disclose to an FCM, SD, or MSP the 

identity of a customer’s original 

executing counterparty (§§ 1.72(a), 

23.608(a), and 39.12(a)(1)(vi)); (b) limit 

the number of counterparties with 

whom a customer may enter into a trade 

(§§ 1.72(b), 23.608(b), and 

39.12(a)(1)(vi)); (c) restrict the size of the 

position a customer may take with any 

individual counterparty, apart from an 

overall credit limit for all positions held 

by the customer at the FCM (§§ 1.72(c), 

23.608(c), and 39.12(a)(1)(vi)); (d) 

impair a customer’s access to execution 

of a trade on terms that have a 

reasonable relationship to the best terms 

available (§§ 1.72(d), 23.608(d), and 

39.12(a)(1)(vi)); or (e) prevent 

compliance with specified time frames 

for acceptance of trades into clearing set 

forth in 1.74(b), 23.610(b), or 39.12(b)(7) 

(§§ 1.72(e), 23.608(e), and 

39.12(a)(1)(vi)). Additionally, the 

Commission requires, through 

regulation 39.12(b)(7)(i)(B), DCOs to 

coordinate with clearing members to 

establish prompt processing of trades. 

Regulations 1.74(a) and 23.610(a) 

require reciprocal coordination by 

FCMs, SDs, and MSPs that are clearing 

members. 

Under the above regulations, SDs, 

MSPs, FCMs, and DCOs are required to 

develop and maintain written customer 

clearing documentation and trade 

processing procedures. Maintenance of 

contracts, policies, and procedures is 

prudent business practice. All SDs, 

MSPs, FCMs, and DCOs maintain 

documentation consistent with these 

regulations. The regulations are crucial 

both for effective risk management and 

for the efficient operation of trading 

venues among SDs, MSPs, FCMs, and 

DCOs. Each of these entities has a 

general recordkeeping obligation for 

these requirements under the 

Commission’s regulations (§ 39.20 for 

DCOs; § 23.606 for SDs and MSPs; and 

§ 1.73 for FCMs). 

The information collection burden 

arising from the regulations primarily is 

restricted to the costs associated with 

the affected registrants’ obligation to 

maintain records related to clearing 

documentation between the customer 

and the customer’s clearing member, 

and trade processing procedures 

between DCOs and FCMs, SDs, and 

MSPs. The information collection 

obligations are necessary to implement 

certain provisions of the CEA, including 

ensuring that registrants exercise 

effective risk management, and are also 

appropriate for the efficient operation of 

trading venues among SDs, MSPs, 

FCMs, and DCOs. 

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.2 On August 25, 2023, 

the Commission published in the 

Federal Register notice of the proposed 

extension of this information collection 

and provided 60 days for public 

comment on the proposed extension, 88 

FR 58251 (‘‘60-Day Notice’’). The 

Commission did not receive any 

comments on the 60-Day Notice. 

Burden Statement: The respondent 

burden for this collection is estimated to 

be as follows: 

Estimated Number of Respondents: 

180. 

Estimated Average Burden Hours per 

Respondent: 40. 

Estimated Total Annual Burden 

Hours: 7,200. 

Frequency of Collection: As needed. 

There are no capital costs or operating 

and maintenance costs associated with 

this collection. 

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

Dated: November 6, 2023. 

Robert Sidman, 

Deputy Secretary of the Commission. 

[FR Doc. 2023–24875 Filed 11–9–23; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

Agency Information Collection 

Activities Under OMB Review 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice. 

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 December 13, 2023. 

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 (‘‘CFTC’’ or the 

‘‘Commission’’) by clicking on the 

‘‘Submit Comment’’ box next to the 

descriptive entry for ‘‘OMB Control No. 

3038–0091,’’ at https://

comments.cftc.gov/FederalRegister/ 

PublicInfo.aspx. 

Or by either of the following methods: 

• Mail: Christopher Kirkpatrick, 

Secretary of the Commission, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street NW, Washington, DC 

20581. 

• 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 


khammond on DSKJM1Z7X2PROD with NOTICES
77564 Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices 

1 17 CFR 145.9. 

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 § 145.9 

of the Commission’s regulations.1 The 

Commission reserves the right, but shall 

have no obligation, to review, prescreen, 

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. 

FOR FURTHER INFORMATION CONTACT: 

Maria Aguilar-Rocha, Attorney Advisor, 

Market Participants Division, 

Commodity Futures Trading 

Commission, (202) 418–5840, maguilarrocha@cftc.gov, and refer to OMB 

Control No. 3038–0091. 

SUPPLEMENTARY INFORMATION: 

Title: Disclosure and Retention of 

Certain Information Relating to Cleared 

Swaps Customer Collateral (OMB 

Control No. 3038–0091). This is a 

request for extension of a currently 

approved information collection. 

Abstract: Section 724(a) of the DoddFrank Wall Street Reform and Consumer 

Protection Act, Public Law 111–023, 

124 stat. 1376, amended the Commodity 

Exchange Act (‘‘CEA’’), 7 U.S.C. 1 et 

seq., to add, as section 4d(f) thereof, 

provisions concerning the protection of 

collateral provided by a Cleared Swaps 

Customer to margin, guaranty, or secure 

a swap cleared by or through a 

derivatives clearing organization 

(‘‘DCO’’). Broadly speaking, in cleared 

swaps transactions customers provide 

collateral to futures commission 

merchants (‘‘FCMs’’) through whom 

they clear their transactions. FCMs, in 

turn, may provide customer collateral to 

DCOs, through which FCMs clear 

transactions for their customers. 17 CFR 

part 22 is intended to implement CEA 

section 4d(f). Several of the sections of 

part 22 require collections of 

information. 

Section 22.2(g) requires each FCM 

with Cleared Swaps Customer Accounts 

to compute daily the amount of Cleared 

Swaps Customer Collateral on deposit 

in Cleared Swaps Customer Accounts, 

the amount of such collateral required 

to be on deposit in such accounts and 

the amount of the FCM’s residual 

financial interest in such accounts. The 

purpose of this collection of information 

is to help ensure that FCMs’ Cleared 

Swaps Customer Accounts are in 

compliance at all times with statutory 

and regulatory requirements for such 

accounts. 

Section 22.5(a) requires an FCM or 

DCO to obtain, from each depository 

with which it deposits cleared swaps 

customer funds, a letter acknowledging 

that such funds belong to the Cleared 

Swaps Customers of the FCM, and not 

the FCM itself or any other person. The 

purpose of this collection of information 

is to confirm that the depository 

understands its responsibilities with 

respect to protection of cleared swaps 

customer funds. 

Section 22.11 requires each FCM that 

intermediates cleared swaps for 

customers on or subject to the rules of 

a DCO, whether directly as a clearing 

member or indirectly through a 

Collecting FCM, to provide the DCO 

with information sufficient to identify 

each customer of the FCM whose swaps 

are cleared by the FCM. Section 22.11 

also requires the FCM, at least once 

daily, to provide the DCO with 

information sufficient to identify each 

customer’s portfolio of rights and 

obligations arising out of cleared swaps 

intermediated by the FCM. The purpose 

of this collection of information is to 

facilitate risk management by DCOs in 

the event of default by the FCM, to 

enable DCOs to perform their duty, 

pursuant to section 22.15, to treat the 

collateral attributed to each customer of 

the FCM on an individual basis. 

Section 22.12 requires that each DCO 

and FCM, on a daily basis, calculate, 

based on information received pursuant 

to section 22.11 and on information 

generated and used in the ordinary 

course of business by the DCO or FCM, 

and record certain information about the 

amount of collateral required for each 

Cleared Swaps Customer and the sum of 

these amounts. As with section 22.11, 

the purpose of this collection of 

information is to facilitate risk 

management by DCOs and in the event 

of default by the FCM, to enable DCOs 

to perform their duty, pursuant to 

section 22.15, to treat the collateral 

attributed to each customer of the FCM 

on an individual basis. 

Section 22.16 requires that each FCM 

who has Cleared Swaps Customers 

disclose to each of such customers the 

governing provisions, as established by 

DCO rules or customer agreements 

between collecting and depositing 

FCMs, relating to use of customer 

collateral, transfer, neutralization of the 

risks, or liquidation of cleared swaps in 

the event of a default by a Depositing 

FCM relating to a Cleared Swaps 

Customer Account. The purpose of this 

collection of information is to ensure 

that Cleared Swaps Customers are 

informed of the procedures to which 

accounts containing their swaps 

collateral may be subject in the event of 

a default by their FCM. 

Section 22.17 requires that each FCM 

produce a written notice of the reasons 

and the details concerning withdrawals 

from a Cleared Swaps Customers 

Account not for the benefit of Cleared 

Swap Customers if such withdrawal 

will exceed 25% of the FCMs residual 

interest in such account. 

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 August 29, 2023, 

the Commission published in the 

Federal Register notice of the proposed 

extension of this information collection 

and provided 60 days for public 

comment on the proposed extension, 88 

FR 59510 (‘‘60-Day Notice’’). The 

Commission did not receive any 

relevant comments on the 60-Day 

Notice. 

Burden Statement: The Commission 

is revising its estimate of the burden for 

this collection for 75 respondents (60 

FCMs and 15 DCOs). The respondent 

burden for this collection is estimated to 

be as follows: 

Estimated Number of Respondents: 

75. 

Estimated Average Burden Hours per 

Respondent: 334. 

Estimated Total Annual Burden 

Hours: 25,050. 

Frequency of Collection: Section 

22.2(g)—Daily. Section 22.5(a)—Once. 

Section 22.11—Daily. Section 22.12— 

Daily. Section 22.16—Once. Section 

22.17—On occasion. 

There is no capital cost associated 

with this collection. 

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

Dated: November 7, 2023. 

Robert Sidman, 

Deputy Secretary of the Commission. 

[FR Doc. 2023–24948 Filed 11–9–23; 8:45 am] 

BILLING CODE 6351–01–P 


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