Confirmation, Portfolio Reconciliation, and Portfolio Compression Requirements for Swap Dealers and Major Swap Participants 77 FR 55094 (Dec. 28, 20102)
ICR 201508-3038-005
OMB: 3038-0068
Federal Form Document
⚠️ Notice: This information collection may be outdated. More recent filings for OMB 3038-0068 can be found here:
Confirmation, Portfolio
Reconciliation, and Portfolio Compression Requirements for Swap
Dealers and Major Swap Participants 77 FR 55094 (Dec. 28,
20102)
OMB files this
comment in accordance with 5 CFR 1320.11( c ). This OMB action is
not an approval to conduct or sponsor an information collection
under the Paperwork Reduction Act of 1995. This action has no
effect on any current approvals. If OMB has assigned this ICR a new
OMB Control Number, the OMB Control Number will not appear in the
active inventory. For future submissions of this information
collection, reference the OMB Control Number provided. OMB files
this comment in accordance with 5 CFR 1320.11( c ). This OMB action
is not an approval to conduct or sponsor an information collection
under the Paperwork Reduction Act of 1995. This action has no
effect on any current approvals. If OMB has assigned this ICR a new
OMB Control Number, the OMB Control Number will not appear in the
active inventory. For future submissions of this information
collection, reference the OMB Control Number provided. Pursuant to
5 CFR 1320.11(c), OMB files this comment on this information
collection request (ICR. The agency shall examine public comment in
response to the NPRM and will describe in the supporting statement
of its next collection any public comments received regarding the
collection as well as why (or why it did not) incorporate the
commenter’s recommendation. The next submission to OMB must include
the draft final rule.
Inventory as of this Action
Requested
Previously Approved
02/29/2016
36 Months From Approved
04/30/2016
1,175,250
0
1,175,250
160,313
0
160,313
16,031,250
0
16,031,250
Section 4s(i) to the Commodity
Exchange Act (CEA) requires the Commission to prescribe standards
for swap dealers (SDs) and major swap participants (MSPs) related
to the timely and accurate confirmation, processing, netting,
documentation, and valuation of swaps. These regulations set forth
requirements for swap confirmation, portfolio reconciliation,
portfolio compression for SDs and MSPs. Under § 23.502, SDs and
MSPs must reconcile their swap portfolios with one another and
provide non-SD and non-MSP counterparties with regular
opportunities for portfolio reconciliation. Section 23.500(i)
defines the term, "portfolio reconciliation," as "any process by
which the two parties to one or more swaps: (1) exchange the terms
of all swaps in the swap portfolio between the counterparties; (2)
exchange each counterparty's valuation of each swap in the swap
portfolio between the counterparties as of the close of business on
the immediately preceding business day; and (3) resolve any
discrepancy in material terms and valuations." Section 23.500(g)
defines "material terms" to mean "all terms of a swap required to
be reported in accordance with part 45 of this chapter." Thus,
portfolio reconciliation seeks to enable "the swap market to
operate efficiently and to reduce systemic risk" by requiring
counterparties periodically to (1) exchange the terms of their
mutual swaps, and (2) locate and resolve discrepancies in material
terms of mutual swaps. In particular, the Commission recognized
that "portfolio reconciliation [would] facilitate the
identification and resolution of discrepancies between the
counterparties with regard to valuations of collateral held as
margin." The Commission's proposal would to alleviate the burden of
resolving discrepancies in terms of a swap that are not relevant to
the ongoing rights and obligations of the parties and the valuation
of the swap, or to the Commission's regulatory mission. The
proposed amendment to Regulation 23.500(g) would reduce the number
of "material terms" that counterparties would need to resolve for
discrepancies in portfolio reconciliation exercises, but would not
eliminate the portfolio reconciliation requirement itself.
The proposed amendment to
Regulation 23.500(g) would reduce the number of "material terms"
that counterparties would need to resolve for discrepancies in
portfolio reconciliation exercises. The Commission believes that
the changes proposed to the regulatory definition of "material
terms" described herein would reduce the time burden for portfolio
reconciliation by one burden hour for each SD and MSP, which would
reduce the annual burden to 1,281.5 hours per SD and MSP. There are
currently 106 provisionally registered SDs and MSPs and the
Commission believes that the proposed rule would result in one hour
of less work for computer programmers for SDs and MSPs because the
programmers who have to match the needed data fields from two
different databases would have fewer data fields to obtain and
resolve for discrepancies.
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.
(2015) Supporting Statement - 0068.docx
Confirmation, Portfolio Reconciliation, and Portfolio Compression Reauirement for Swap Dealers and Major Swap Participants