Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
Form 1-FR-FCM Regulations and Forms Pertaining to Financial Integrity of the Market Place	Form	Unchanged	Available
Uncleared Margin PRA Supporting Statement 3038-0024 12-16-15.docx	Supporting Statement A	Uploaded 2016-03-22	Available

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
29065	Regulations and Forms Pertaining to Financial Integrity of the Market Place	Form	Unchanged
213122	Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants		Modified

ICR Details

OMB Control No: 3038-0024	ICR Reference No: 201512-3038-007
Status: Historical Active	Previous ICR Reference No: 201409-3038-006
Agency/Subagency: CFTC	Agency Tracking No:
Title: Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved with change	Conclusion Date: 05/10/2016
	Date Received in OIRA: 01/06/2016
Terms of Clearance:

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	05/31/2019	36 Months From Approved	09/30/2017
Responses	95,533	0	95,479
Time Burden (Hours)	56,102	0	43,142
Cost Burden (Dollars)	0	0	0

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Abstract: Regulation 23.154(b) will require SDs and MSPs that do not have a prudential regulator (“CSEs”) that are using a model to compute initial margin requirements to submit the model for review and approval by the Commission or a registered futures association (“RFA”). CSEs must also notify the Commission upon making certain changes to the model, including modifying material modeling assumptions and extending the model to additional product types. CSEs must also meet various other requirements, including validating and demonstrating the reasonableness of the process for modeling and measuring hedging benefits. The collections of information that are proposed by this rulemaking are necessary to implement Section 4s(e) of the CEA, which expressly requires the Commission to adopt rules governing margin requirements for covered swap entities. The information required for the prior written approval of the margin model is needed to demonstrate that the model satisfied all of the requirements of Regulation 23.154(b). The initial margin requirements for models are designed to ensure that CSEs collect sufficient amounts of collateral from their counterparties to protect them in the case of a possible default by their counterparty. The soundness and adequacy of margin models help ensure the safety and soundness of a CSE and the stability of the U.S. financial market.

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Authorizing Statute(s): US Code: 7 USC 6s, 12a Name of Law: CEA
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 124 Stat. 1376 (2010) Name of Law: Dodd Frank Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AC97	Final or interim final rulemaking	81 FR 636	01/06/2016

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

table that charts list of burden

IC Title	Form No.	Form Name
Regulations and Forms Pertaining to Financial Integrity of the Market Place	1-FR-FCM	Statement of Financial Condition
Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants

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ICR Summary of Burden

table that charts list of burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	95,533	95,479	0	54	0	0
Annual Time Burden (Hours)	56,102	43,142	0	12,960	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The regulations associated with Collection 3038-0024 are designed to enhance the safety and soundness of the markets which the Commission oversees and to enable the Commission to evaluate the soundness of the participants in those markets. Section 731 of the Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank Act"), P.L. 111-023, 124 stat. 1376, amended the Commodity Exchange Act ("CEA"), 7 U.S.C. §§ 1 et seq., to add, as section 4s(e) thereof, provisions concerning the setting of initial and variation margin requirements for swap dealers ("SDs") and major swap participants ("MSPs"). The Commission is proposing the margin rule to implement this section 4s of the CEA to require CSEs that are using a model to compute initial margin requirements to submit the model for review and approval by the Commission. This collection of information will add additional burdens on an estimated 54 entities for a total of 12,960 hours annually. This reflects a reduction from the proposal of six (6) CSEs that are no longer subject to the Commission’s jurisdiction and margin requirements.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 01/06/2016

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