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[Federal Register Volume 90, Number 21 (Monday, February 3, 2025)]
[Notices]
[Pages 8793-8794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-02102]

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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.

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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 the Commission's 
burden estimates associated with the requirements for swap dealers 
(``SDs'') and major swap participants (``MSPs'') to notify 
counterparties of their right to require segregation of initial margin, 
and to allow the counterparty to change that election by written notice 
to the SD or MSP, and to report quarterly to the counterparty that the 
back office procedures of the SD or MSP relating to margin and 
collateral requirements are in compliance with the agreement of the 
counterparties.

DATES: Comments must be submitted on or before April 4, 2025.

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 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.

FOR FURTHER INFORMATION CONTACT: Catherine Brescia, Attorney Advisor, 
Market Participants Division, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; 
(202) 418-6236; email: [email protected].

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.
    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 SDs 
and MSPs to notify uncleared swap counterparties that they have the 
right to require that any initial margin the counterparty provides in 
connection with such transaction be segregated, and to report quarterly 
to counterparties who have not requested segregated accounts that the 
back office procedures of the SD or MSP relating to margin and 
collateral comply with the agreement of the counterparties.
    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 SD or MSP 
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.
    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/. 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

[[Page 8794]]

to the procedures established in Sec.  145.9 of the Commission's 
regulations.\1\
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    \1\ 17 CFR 145.9.
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    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 for 106 SDs. There are currently no 
registered MSPs. The respondents' burden for this collection is 
estimated to be as follows:
     Regulation 23.701:
    Estimated Number of Respondents: 106.
    Estimated Average Burden Hours per Respondent: 600 hours.
    Estimated Total Annual Burden Hours: 63,600 hours.
    Frequency of Collection: Beginning of the swap trading relationship 
with a counterparty.
     Regulation 23.704:
    Estimated Number of Respondents: 106.
    Estimated Average Burden Hours per Respondent: 806 hours.
    Estimated Total Annual Burden Hours: 85,436 hours.
    Frequency of Collection: Quarterly (4 times per year).
     Total Annual Burden for the Collection: 149,036 hours.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

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

    Dated: January 29, 2025.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2025-02102 Filed 1-31-25; 8:45 am]
BILLING CODE 6351-01-P
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