30 Day Notice

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Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices
Supporting statements. A copy of the
supporting statements for the collection
of information discussed herein may be
obtained by visiting http://RegInfo.gov.
Comment instructions. All comments
must be submitted in English, or if not,
accompanied by an English translation.
Comments will be posted as received to
http://www.cftc.gov. You should submit
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 (‘‘FOIA’’), 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, 17 CFR
145.9. 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 http://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 FOIA.
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: On November 6, 2013, the
Commission issued final rules
implementing statutory provisions
pursuant to Title VII of the Dodd-Frank
Wall Street Reform and Consumer
Protection Act (‘‘Dodd-Frank Act’’) and
imposing requirements on swap dealers
(‘‘SD’’) and major swap participants
(‘‘MSP’’) with respect to the treatment of
collateral posted by their counterparties
to margin, guarantee, or secure
uncleared swaps.1 Additionally, the
final rule includes revisions to ensure
that, for purposes of subchapter IV of
chapter 7 of the Bankruptcy Code,
securities held in a portfolio margining
account that is a futures account or a
Cleared Swaps Customer Account
constitute ‘‘customer property’’; and
owners of such accounts constitute
‘‘customers.’’ 2 Section 4s(l) of the
Commodity Exchange Act (‘‘CEA’’) sets
forth certain requirements concerning
the rights of counterparties of SDs and
1 78

FR 66621 (Nov. 6, 2013).

2 Id.

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MSPs with respect to the segregation of
money, securities, or other property
used to margin, guarantee, or otherwise
secure uncleared swaps. Section 23.701
of the Commission’s regulations
implements part of the new statutory
requirements by specifying that certain
information must be provided to
counterparties about the terms and
conditions of segregation, including
price information, to the extent that the
SD or MSP has such information, and
the identity of one or more independent
depositories for segregated collateral.
Section 23.704 implements the
requirements of CEA section 4s(l)(4),
which dictates 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.’’
As discussed above, the rules
establish reporting and recordkeeping
requirements that are mandated by
section 4s(l) of the CEA, which states
that SDs and MSPs must notify their
counterparties of the right to have their
initial margin segregated and to
maintain the confirmations and
elections related to such notices as
business records. The reporting and
recordkeeping requirements are
necessary to implement the objectives of
section 4s(1). For example, the
information received by uncleared swap
counterparties pursuant to § 23.701 of
the Commission’s regulations would
alert counterparties to their statutory
right, if they so choose, to have funds
or property used as margin in uncleared
swaps transactions with SDs and MSPs
kept segregated from the property of the
SD or MSP. Likewise, the information
provided would further alert
counterparties of the need to request
such segregation if they wish to exercise
this right. Similarly, the information
received by uncleared swap
counterparties pursuant to § 23.704
would be used to confirm that the back
office procedures followed by a SD or
MSP with whom they are dealing
comply with the agreement of the
parties. On May 12, 2017, the
Commission published in the Federal
Register a notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension.
See 82 FR 22118 (May 12, 2017). The
Commission received no relevant
comments.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection to reflect the current

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number of registered SDs and MSPs.
Accordingly, the respondent burden for
this collection is estimated to be as
follows:
Number of Registrants: 102.
Estimated Average Burden Hours per
Registrant: 3406.
Estimated Aggregate Burden Hours:
347,412.
Frequency of Recordkeeping: As
applicable.
Authority: 44 U.S.C. 3501 et seq.
Dated: July 24, 2017.
Christopher J. Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2017–15857 Filed 7–26–17; 8:45 am]
BILLING CODE 6351–01–P

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities Under OMB Review
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

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 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 August 28, 2017.
ADDRESSES: Comments regarding the
burden estimated or any other aspect of
the information collection, including
suggestions for reducing the burden,
may be submitted directly to the Office
of Information and Regulatory Affairs
(‘‘OIRA’’) in OMB, within 30 days of the
notice’s publication, by either of the
following methods. Please identify the
comments by OMB Control No. 3038–
0091.
• By email addressed to:
[email protected]; or
• By mail addressed to: Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Attention: Desk Officer for the
Commodity Futures Trading
Commission, 725 17th Street NW.,
Washington, DC 20503.
A copy of all comments submitted to
OIRA should be sent to the Commodity
Futures Trading Commission (‘‘CFTC’’
or ‘‘Commission’’) by either of the
following methods. The copies should
refer to OMB Control No. 3038–0091.
• By submission through the
Commission’s Web site: http://
SUMMARY:

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Federal Register / Vol. 82, No. 143 / Thursday, July 27, 2017 / Notices

comments.cftc.gov. Please follow the
instructions for submitting comments
through the Web site;
• By mail addressed to: Christopher
Kirkpatrick, Secretary of the
Commission, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street NW.,
Washington, DC 20581; or
• By hand delivery/courier to: the
address listed above for submission by
mail.
FOR FURTHER INFORMATION CONTACT:
Jacob Chachkin, Special Counsel, 202–
418–5496, email: [email protected]; or
Joshua Beale, Special Counsel, 202–
418–5446, email: [email protected], both
in the CFTC Division of Swap Dealer
and Intermediary Oversight.
SUPPLEMENTARY INFORMATION:
Supporting statements. A copy of the
supporting statements for the collection
of information discussed herein may be
obtained by visiting http://RegInfo.gov.
Comment instructions. All comments
must be submitted in English or, if not,
accompanied by an English translation.
Comments will be posted as received to
http://www.cftc.gov. You should submit
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 (‘‘FOIA’’), 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, 17 CFR
145.9. 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 http://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 FOIA.
Title: Disclosure and Retention of
Certain Information Relating to Cleared
Swaps Customer Collateral (OMB
Control No. 3038–0091). This is a
request for an extension of a currently
approved information collection.
Abstract: Part 22 of the Commission’s
regulations under the Commodity
Exchange Act (‘‘CEA’’) establishes rules
for the protection of customer collateral
held by futures commission merchants
(‘‘FCM’’) and derivatives clearing
organizations (‘‘DCO’’) to serve as
margin in cleared swaps transactions.

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As part of this regulatory scheme,
§§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16,
and 22.17 impose recordkeeping and
third-party disclosure requirements on
FCMs and DCOs. In addition,
§ 22.13(c)(2) indirectly requires FCMs
who post excess collateral with DCOs to
perform certain computations regarding
such collateral, although it is not
expected to materially affect the total
paperwork burden associated with Part
22.
Section 22.2(g) requires each FCM
with Cleared Swaps Customer
Accounts 1 to, among other things,
compute daily and report to the
Commission the amount of Cleared
Swaps Customer Collateral 2 on deposit
in such 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. 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 3 of the
FCM or DCO, and not the FCM, DCO,
or any other person. 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,4 to
provide the DCO or the Collecting FCM,
as appropriate, 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 or the Collecting FCM, as
appropriate, with information sufficient
to identify each customer’s portfolio of
rights and obligations arising out of
cleared swaps intermediated by the
FCM. Section 22.12 requires that each
Collecting FCM and DCO, on a daily
basis, calculate, based on information
received pursuant to § 22.11 and on
information generated and used in the
ordinary course of business by the
Collecting FCM or DCO, and record
certain information about the amount of
collateral required for each Cleared
Swaps Customer and the sum of these
amounts. 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
the definition of Cleared Swaps Customer
Account, see 17 CFR 22.1.
2 Id.
3 Id.
4 Id.

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customer collateral, transfer,
neutralization of the risks, or liquidation
of cleared swaps in the event of default
by a Depositing FCM 5 relating to a
Cleared Swaps Customer Account.
Section 22.17 requires that FCM
produce a written notice of the reasons
and the details concerning withdrawals
from 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.
The Commission believes that the
information collection obligations
imposed by Commission regulations in
§§ 22.2(g), 22.5(a), 22.11, 22.12, 22.16,
and 22.17 are essential (i) to ensuring
that FCMs and DCOs develop and
maintain adequate customer protections
and procedures over Cleared Swap
Customer funds as required by the CEA,
and Commission regulations, and (ii) to
the effective evaluation of these
registrants’ actual compliance with the
CEA and Commission regulations. On
April 24, 2017, the Commission
published in the Federal Register a
notice of the proposed extension of this
information collection and provided 60
days for public comment on the
proposed extension. See 82 FR 18900
(April 24, 2017). The Commission
received no comments.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection to reflect the current
number of affected registrants.
Accordingly, the respondent burden for
this collection is estimated to be as
follows:
Number of Registrants: 68.
Estimated Average Burden Hours per
Registrant: 365.
Estimated Aggregate Burden Hours:
24,820.
Frequency of Recordkeeping: As
applicable.
Authority: 44 U.S.C. 3501 et seq.
Dated: July 21, 2017.
Christopher J. Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2017–15767 Filed 7–26–17; 8:45 am]
BILLING CODE 6351–01–P

DEPARTMENT OF DEFENSE
Office of the Secretary
[Transmittal No. 16–84]

Arms Sales Notification
Defense Security Cooperation
Agency, Department of Defense.
ACTION: Arms sales notice.
AGENCY:

5 Id.

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