Risk Management Requirements for Derivatives Clearing Organizations

Forms and Documents

Document Name	Status
(2019) NPRM Supporting Statement-revised-0076 alternative DCO proposal-7-17-19.doc Supporting Statement A	2019-07-19

IC Document Collections

IC ID	Document Title	Status
195766	Risk Management Requirement for Derivative Clearing Orgnization	Modified

ICR Details

OMB Control No: 3038-0076	ICR Reference No: 201907-3038-005
Status: Historical Inactive	Previous ICR Reference No: 201809-3038-003
Agency/Subagency: CFTC	Agency Tracking No:
Title: Risk Management Requirements for Derivatives Clearing Organizations
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule and continue	Conclusion Date: 09/17/2019
	Date Received in OIRA: 07/19/2019
Terms of Clearance: 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. Resubmit when proposed rule is finalized.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2021	36 Months From Approved	12/31/2021
Responses	51	0	51
Time Burden (Hours)	2,003	0	2,003
Cost Burden (Dollars)	0	0	0

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Abstract: Commission Regulations 39.12, 39.13, 39.14, 39.15, 39.16 and 39.18 establish risk management requirements for registered derivatives clearing organizations (“DCOs”). Regulation 39.3 requires any person seeking to register as a DCO to submit a completed Form DCO as provided in the appendix to Part 39, accompanied by all applicable exhibits. The Commission will use the information in this collection to assess compliance of DCOs and DCO applicants with requirements for DCOs prescribed in the Commodity Exchange Act and Commission regulations. Part 39 of the Commission’s regulations establishes regulatory requirements for derivatives clearing organizations (“DCOs”). The Commission is proposing regulations that would permit non-U.S. clearing organizations that do not pose substantial risk to the U.S. financial system to register with the Commission, yet comply with the core principles applicable to registered DCOs through compliance with their home country regulatory regime, subject to certain conditions and limitations. The information that would be collected under these proposed regulations is necessary for the Commission to determine whether a clearing organization qualifies for DCO registration pursuant to the alternative compliance procedures, to evaluate its continued eligibility for such status, to review compliance by the DCO subject to alternative compliance with any conditions the Commission has established, or to conduct oversight of U.S. persons and the swaps that are cleared by or for U.S. persons through the DCO subject to alternative compliance. The Commission is also proposing to reduce the number of registered DCOs subject to Part 39 reporting and recordkeeping requirements due to the proposed alternative compliance option.

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Authorizing Statute(s): PL: Pub.L. 111 - 203 124 Stat. 1376 (2010) Name of Law: Dodd - Frank Act
   US Code: 7 USC 7a-1 Name of Law: Commodity Exchange Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AE87	Proposed rulemaking	84 FR 34819	07/19/2019

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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: 1

IC Title	Form No.	Form Name
Risk Management Requirement for Derivative Clearing Orgnization

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

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: The proposal by the Commission would amend part 39 of its regulations to establish a regulatory framework within which the Commission may register under certain conditions a non-U.S. clearing organization in connection with the clearing of swaps. The proposal sets forth new reporting requirements pursuant to the application process for DCO registration with alternative compliance, and ongoing compliance with the conditions of such registration. Because several registered DCOs may convert to the proposed alternative compliance status, the Commission is reducing the number of registered DCOs in the current information collection.

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Annual Cost to Federal Government: $86,320

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     Yes

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: 07/19/2019

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