Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices 9583 

2 17 CFR 145.9. 

regulations that it believes are 

reasonably necessary to effectuate any of 

the provisions or to accomplish any of 

the purposes of the CEA. Risk 

management systems are critical to the 

avoidance of systemic risk. 

Section 4s(j)(2) of the CEA requires 

each Swap Dealer (‘‘SD’’) and Major 

Swap Participant (‘‘MSP’’) to have risk 

management systems adequate for 

managing its business. Section 4s(j)(4) 

requires each SD and MSP to have 

internal systems and procedures to 

perform any of the functions set forth in 

Section 4s. 

Section 4d requires Futures 

Commission Merchants (‘‘FCMs’’) to 

register with the Commission. It further 

requires FCMs to segregate customer 

funds. Section 4f requires FCMs to 

maintain certain levels of capital. 

Section 4g establishes reporting and 

recordkeeping requirements for FCMs. 

Pursuant to these provisions, the 

Commission adopted Commission 

regulation 1.73 which applies to 

clearing members that are FCMs and 

Commission regulation 23.609 which 

applies to clearing members that are SDs 

or MSPs. These provisions require these 

clearing members to have procedures to 

limit the financial risks they incur as a 

result of clearing trades and liquid 

resources to meet the obligations that 

arise. The regulations require each 

clearing members to: (1) Establish credit 

and market risk-based limits based on 

position size, order size, margin 

requirements, or similar factors; (2) use 

automated means to screen orders for 

compliance with the risk-based limits; 

(3) monitor for adherence to the riskbased limits intra-day and overnight; (4) 

conduct stress tests of all positions in 

the proprietary account and all 

positions in any customer account that 

could pose material risk to the futures 

commission merchant at least once per 

week; (5) evaluate its ability to meet 

initial margin requirements at least once 

per week; (6) evaluate its ability to meet 

variation margin requirements in cash at 

least once per week; (7) evaluate its 

ability to liquidate the positions it clears 

in an orderly manner, and estimate the 

cost of the liquidation at least once per 

month; and (8) test all lines of credit at 

least once per quarter. 

Each of these items has been observed 

by Commission staff as an element of an 

existing sound risk management 

program at an SD, MSP, or FCM. The 

Commission regulations require each 

clearing member to establish written 

procedures to comply with this 

regulation and to keep records 

documenting its compliance. The 

information collection obligations 

imposed by the regulations are 

necessary to implement certain 

provisions of the CEA, including 

ensuring that registrants exercise 

effective risk management and for the 

efficient operation of trading venues 

among SDs, MSPs, and FCMs. 

With respect to the collection of 

information, the CFTC invites 

comments on: 

• Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information will have a practical use; 

• The accuracy of the Commission’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

• Ways to enhance the quality, 

usefulness, and clarity of the 

information to be collected; and 

• Ways to minimize the burden of 

collection of information on those who 

are to respond, including through the 

use of appropriate automated electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses. 

You should submit only information 

that you wish to make available 

publicly. If you wish for 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 Regulations.2

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 Information Collection 

Request 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. 

Burden Statement: The Commission 

is revising its estimate of the burden for 

this collection of information from 

clearing members of derivatives clearing 

organizations who are swap dealers, 

major swap participants, and/or futures 

commission merchants. The respondent 

burden for this collection is estimated to 

be as follows: 

Estimated Number of Respondents: 

167 (108 Clearing Member Swap Dealers 

and 59 Clearing Member Futures 

Commission Merchants). 

Estimated Average Burden Hours per 

Respondent: 504 hours. 

Estimated Total Annual Burden 

Hours: 84,168 hours. 

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: February 16, 2022. 

Robert Sidman, 

Deputy Secretary of the Commission. 

[FR Doc. 2022–03700 Filed 2–18–22; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

Agency Information Collection 

Activities: Notice of Intent To Extend 

Collection 3038–0075: Protection of 

Collateral of Counterparties to 

Uncleared Swaps; Treatment of 

Securities in a Portfolio Margining 

Account in a Commodity Broker 

Bankruptcy 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice. 

SUMMARY: The Commodity Futures 

Trading Commission (‘‘Commission’’ or 

‘‘CFTC’’) is announcing an opportunity 

for public comment on the proposed 

renewal of a collection of certain 

information by the agency. Under the 

Paperwork Reduction Act (‘‘PRA’’), 

Federal agencies are required to publish 

notice in the Federal Register 

concerning each proposed collection of 

information, including each proposed 

extension of an existing collection of 

information, and to allow 60 days for 

public comment. This notice solicits 

comments on reporting requirements 

relating to uncleared swaps between 

certain affiliated entities electing the 

exemption under Commission 

regulation 50.52 (Exemption for swaps 

between affiliates). 

DATES: Comments must be submitted on 

or before April 25, 2022. 

ADDRESSES: You may submit comments, 

identified by ‘‘OMB Control No. 3038– 

0075’’ by any of the following methods: 

• The Agency’s website, at https://

comments.cftc.gov/. Follow the 

instructions for submitting comments 

through the website. 

• Mail: Christopher Kirkpatrick, 

Secretary of the Commission, 

Commodity Futures Trading 


lotter on DSK11XQN23PROD with NOTICES1
9584 Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices 

1The OMB control numbers for the CFTC 

regulations were published on December 30, 1981. 

See 46 FR 63035 (Dec. 30, 1981). 2 17 CFR 145.9. 

Commission, Three Lafayette Centre, 

1155 21st Street NW, Washington, DC 

20581. 

• Hand Delivery/Courier: Same as 

Mail above. 

Please submit your comments using 

only one method. All comments must be 

submitted in English, or if not, 

accompanied by an English translation. 

Comments will be posted as received to 

https://www.cftc.gov. 

FOR FURTHER INFORMATION CONTACT: 

Christopher W. Cummings, Special 

Counsel, Market Participants Division, 

Commodity Futures Trading 

Commission, Three Lafayette Centre, 

1155 21st Street NW, Washington, DC 

20581; (202) 418–5445; email: 

ccummings@cftc.gov. 

SUPPLEMENTARY INFORMATION: Under the 

PRA, 44 U.S.C. 3501 et seq., Federal 

agencies must obtain approval from the 

Office of Management and Budget 

(‘‘OMB’’) for each collection of 

information they conduct or sponsor. 

‘‘Collection of Information’’ is defined 

in 44 U.S.C. 3502(3) and 5 CFR 1320.3 

and includes agency requests or 

requirements that members of the public 

submit reports, keep records, or provide 

information to a third party. Section 

3506(c)(2)(A) of the PRA, 44 U.S.C. 

3506(c)(2)(A), requires Federal agencies 

to provide a 60-day notice in the 

Federal Register concerning each 

proposed collection of information, 

including each proposed extension of an 

existing collection of information, 

before submitting the collection to OMB 

for approval. To comply with this 

requirement, the Commission is 

publishing notice of the proposed 

extension of the existing collection of 

information listed below. 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.1

Title: Protection of Collateral of 

Counterparties to Uncleared Swaps; 

Treatment of Securities in a Portfolio 

Margining Account in a Commodity 

Broker Bankruptcy (OMB Control No. 

3038–0075). This is a request for an 

extension of a currently approved 

information collection. 

Abstract: Section 4s(l) of the 

Commodity Exchange Act requires swap 

dealers and major swap participants to 

notify uncleared swap counterparties 

that they have the right to request that 

property provided as margin be 

segregated, and to report quarterly to 

counterparties who have not requested 

segregated accounts that the back office 

procedures of the swap dealer or major 

swap participant with respect to margin 

and collateral comply with the parties’ 

agreement. Regulations 23.701 and 

23.704 establish reporting requirements 

that are mandated by Section 4s(l) and, 

thus, are necessary to implement the 

objectives of Section 4s(l). Regulation 

23.701 requires that the SD or MSP 

notify the counterparty at the beginning 

of the swap trading relationship of the 

counterparty’s right to require 

segregation of initial margin, and to 

permit the counterparty to change that 

election by written notice to the SD or 

MSP. Regulation 23.704 requires that, in 

certain circumstances, an SD or MSP 

must report to the counterparty, on a 

quarterly basis, that the back office 

procedures of the swap dealer or major 

swap participant relating to margin and 

collateral requirements are in 

compliance with the agreement of the 

counterparties. The data required to be 

compiled and maintained pursuant to 

Regulations 23.701 and 23.704 would be 

used by uncleared swap counterparties 

(and, in some instances, the CFTC and 

self-regulatory organizations). 

With respect to the collection of 

information, the CFTC invites 

comments on: 

• Whether the proposed collection of 

information is necessary for the proper 

performance of the functions of the 

Commission, including whether the 

information will have a practical use; 

• The accuracy of the Commission’s 

estimate of the burden of the proposed 

collection of information, including the 

validity of the methodology and 

assumptions used; 

• Ways to enhance the quality, 

usefulness, and clarity of the 

information to be collected; and 

• Ways to minimize the burden of 

collection of information on those who 

are to respond, including through the 

use of appropriate automated electronic, 

mechanical, or other technological 

collection techniques or other forms of 

information technology; e.g., permitting 

electronic submission of responses. 

You should submit only information 

that you wish to make available 

publicly. If you wish for 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.2

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 Information Collection 

Request 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. 

Burden Statement: The Commission 

continues to estimate that the 

respondent burden for this collection is 

as follows: 

• Regulation 23.701: 

Estimated Number of Respondents: 

108. 

Estimated Average Burden Hours per 

Respondent: 600 hours. 

Estimated Total Annual Burden 

Hours: 64,800 hours. 

Frequency of Collection: Beginning of 

the swap trading relationship with a 

counterparty. 

• Regulation 23.704: 

Estimated Number of Respondents: 

108. 

Estimated Average Burden Hours per 

Respondent: 806 hours. 

Estimated Total Annual Burden 

Hours: 87,048 hours. 

Frequency of Collection: Quarterly (4 

times per year). 

• Total Annual Burden for the 

Collection: 151,848 hours. 

There are no capital costs or operating 

and maintenance costs associated with 

this collection. 

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

Dated: February 16, 2022. 

Robert Sidman, 

Deputy Secretary of the Commission. 

[FR Doc. 2022–03699 Filed 2–18–22; 8:45 am] 

BILLING CODE 6351–01–P 

DEPARTMENT OF DEFENSE 

Department of the Air Force 

[Docket ID: USAF–2021–HQ–0008] 

Submission for OMB Review; 

Comment Request 

AGENCY: Air Combat Command (ACC), 

Department of Defense (DoD). 

ACTION: 30-Day information collection 

notice. 

SUMMARY: The Department of Defense 

has submitted to OMB for clearance the 

following proposal for collection of 

information under the provisions of the 

Paperwork Reduction Act. 


lotter on DSK11XQN23PROD with NOTICES1