60-Day Federal Register Notice

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Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices
regulations that it believes are
reasonably necessary to effectuate any of
the provisions or to accomplish any of
the purposes of the CEA. Risk
management systems are critical to the
avoidance of systemic risk.
Section 4s(j)(2) of the CEA requires
each Swap Dealer (‘‘SD’’) and Major
Swap Participant (‘‘MSP’’) to have risk
management systems adequate for
managing its business. Section 4s(j)(4)
requires each SD and MSP to have
internal systems and procedures to
perform any of the functions set forth in
Section 4s.
Section 4d requires Futures
Commission Merchants (‘‘FCMs’’) to
register with the Commission. It further
requires FCMs to segregate customer
funds. Section 4f requires FCMs to
maintain certain levels of capital.
Section 4g establishes reporting and
recordkeeping requirements for FCMs.
Pursuant to these provisions, the
Commission adopted Commission
regulation 1.73 which applies to
clearing members that are FCMs and
Commission regulation 23.609 which
applies to clearing members that are SDs
or MSPs. These provisions require these
clearing members to have procedures to
limit the financial risks they incur as a
result of clearing trades and liquid
resources to meet the obligations that
arise. The regulations require each
clearing members to: (1) Establish credit
and market risk-based limits based on
position size, order size, margin
requirements, or similar factors; (2) use
automated means to screen orders for
compliance with the risk-based limits;
(3) monitor for adherence to the riskbased limits intra-day and overnight; (4)
conduct stress tests of all positions in
the proprietary account and all
positions in any customer account that
could pose material risk to the futures
commission merchant at least once per
week; (5) evaluate its ability to meet
initial margin requirements at least once
per week; (6) evaluate its ability to meet
variation margin requirements in cash at
least once per week; (7) evaluate its
ability to liquidate the positions it clears
in an orderly manner, and estimate the
cost of the liquidation at least once per
month; and (8) test all lines of credit at
least once per quarter.
Each of these items has been observed
by Commission staff as an element of an
existing sound risk management
program at an SD, MSP, or FCM. The
Commission regulations require each
clearing member to establish written
procedures to comply with this
regulation and to keep records
documenting its compliance. The
information collection obligations
imposed by the regulations are

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necessary to implement certain
provisions of the CEA, including
ensuring that registrants exercise
effective risk management and for the
efficient operation of trading venues
among SDs, MSPs, and FCMs.
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.
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
to the procedures established in § 145.9
of the Commission Regulations.2
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 of information from
clearing members of derivatives clearing
organizations who are swap dealers,
major swap participants, and/or futures
commission merchants. The respondent
burden for this collection is estimated to
be as follows:
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Estimated Number of Respondents:
167 (108 Clearing Member Swap Dealers
and 59 Clearing Member Futures
Commission Merchants).
Estimated Average Burden Hours per
Respondent: 504 hours.
Estimated Total Annual Burden
Hours: 84,168 hours.
Frequency of Collection: As needed.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: February 16, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022–03700 Filed 2–18–22; 8:45 am]
BILLING CODE 6351–01–P

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
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

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 reporting requirements
relating to uncleared swaps between
certain affiliated entities electing the
exemption under Commission
regulation 50.52 (Exemption for swaps
between affiliates).
DATES: Comments must be submitted on
or before April 25, 2022.
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
SUMMARY:

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Federal Register / Vol. 87, No. 35 / Tuesday, February 22, 2022 / Notices

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. 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.
FOR FURTHER INFORMATION CONTACT:
Christopher W. Cummings, Special
Counsel, Market Participants Division,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581; (202) 418–5445; 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.1
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 swap
dealers and major swap participants to
notify uncleared swap counterparties
that they have the right to request that
property provided as margin be
segregated, and to report quarterly to
counterparties who have not requested
1 The OMB control numbers for the CFTC
regulations were published on December 30, 1981.
See 46 FR 63035 (Dec. 30, 1981).

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segregated accounts that the back office
procedures of the swap dealer or major
swap participant with respect to margin
and collateral comply with the parties’
agreement. 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 swap dealer or major
swap participant 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.
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
to the procedures established in § 145.9
of the Commission’s regulations.2
The Commission reserves the right,
but shall have no obligation, to review,
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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
continues to estimate that the
respondent burden for this collection is
as follows:
• Regulation 23.701:
Estimated Number of Respondents:
108.
Estimated Average Burden Hours per
Respondent: 600 hours.
Estimated Total Annual Burden
Hours: 64,800 hours.
Frequency of Collection: Beginning of
the swap trading relationship with a
counterparty.
• Regulation 23.704:
Estimated Number of Respondents:
108.
Estimated Average Burden Hours per
Respondent: 806 hours.
Estimated Total Annual Burden
Hours: 87,048 hours.
Frequency of Collection: Quarterly (4
times per year).
• Total Annual Burden for the
Collection: 151,848 hours.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: February 16, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022–03699 Filed 2–18–22; 8:45 am]
BILLING CODE 6351–01–P

DEPARTMENT OF DEFENSE
Department of the Air Force
[Docket ID: USAF–2021–HQ–0008]

Submission for OMB Review;
Comment Request
Air Combat Command (ACC),
Department of Defense (DoD).
ACTION: 30-Day information collection
notice.
AGENCY:

The Department of Defense
has submitted to OMB for clearance the
following proposal for collection of
information under the provisions of the
Paperwork Reduction Act.

SUMMARY:

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