Exemption from Derivatives Clearing Organization Registration

Forms and Documents

Document Name	Status
2019 Exemption from DCO Registration SNPRM (84 FR 35456).pdf Supplementary Document	2023-08-09
2021 Exemption from DCO Registration Final Rule (86 FR 949).pdf Supplementary Document	2023-08-09
2023 Supporting Statement 3038-0117.docx Supporting Statement A	2023-08-09
2023 30-Day FRN 3038-0117 (88 FR 53870).pdf Supplementary Document	2023-08-09
2023 60-Day FRN 3038-0117 (88 FR 34489).pdf Supplementary Document	2023-08-09

IC Document Collections

IC ID	Document Title	Status
237041	Requirements for Derivatives Clearing Organizations	Modified

ICR Details

OMB Control No: 3038-0117	ICR Reference No: 202305-3038-003
Status: Received in OIRA	Previous ICR Reference No: 201907-3038-006
Agency/Subagency: CFTC	Agency Tracking No:
Title: Exemption from Derivatives Clearing Organization Registration
Type of Information Collection: Existing collection in use without an OMB Control Number	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 08/09/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved
Responses	2,385	0
Time Burden (Hours)	257	0
Cost Burden (Dollars)	0	0

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Abstract: Section 5b(a) of the Commodity Exchange Act (CEA) provides that a clearing organization may not perform the functions of a derivatives clearing organization (DCO) with respect to swaps unless the clearing organization is registered with the Commission. Section 5b(h) of the CEA, however, permits the Commission to conditionally or unconditionally exempt a clearing organization from registration as a DCO for the clearing of swaps if the Commission determines that the clearing organization is subject to “comparable, comprehensive supervision and regulation” by the clearing organization’s home country government regulator. This Supporting Statement relates specifically to the regulations that the Commission adopted in 2021 to codify the policies and procedures that it is currently following with respect to granting exemptions from registration as a DCO for the clearing of proprietary swaps for U.S. persons and futures commission merchants (FCMs). See 86 FR 949 (Jan. 7, 2021). The rules include reporting requirements that are collections of information requiring approval under the PRA. Specifically, the Commission amended Part 39 to specify the conditions and procedures under which a clearing organization may apply for exemption from registration as a DCO, the information that must be provided to the Commission to obtain and maintain such exemption, and procedures for termination of an exemption. The information that is collected under these regulations is necessary for the Commission to determine whether a clearing organization qualifies for exemption from DCO registration, to evaluate the continued eligibility of the exempt DCO for exemption from registration, to review compliance by the exempt DCO with any conditions of such exemption, or to conduct its oversight of U.S. persons and the swaps that are cleared by U.S. persons through the exempt DCO.

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Authorizing Statute(s): US Code: 7 USC 7a-1 Name of Law: Commodity Exchange Act (Derivatives Clearing Organizations)
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 34489	05/30/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 53870	08/09/2023
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
Requirements for Derivatives Clearing Organizations

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ICR Summary of Burden

	Total Request	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	2,385	0	0	2,385	0	0
Annual Time Burden (Hours)	257	0	0	257	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: Changing Regulations

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

Burden Reduction Due to:

Short Statement: This is an existing collection in use without an approved OMB control number. In 2019, the CFTC issued a Supplemental Notice of Proposed Rulemaking that proposed changes to Part 39.6 of the Commission’s regulations. The proposed changes included new information collection requirements. See 84 FR 35456, 35466 (July 23, 2019). OMB assigned new Control Number 3038-0117 in connection with the SNRPM proposal. In 2021, the Commission amended part 39.6 to adopt several of the proposed changes and establish a regulatory framework within which the Commission may exempt a clearing organization organized outside of the United States from registration as a DCO in connection with the clearing organization’s clearing of swaps. See 86 FR 949 (Jan. 7, 2021). The Commission inadvertently failed to file a request with OMB to approve the new information collection requirements under Collection 3038-0117 when this Final Rule was published. The new regulations adopted in the Final Rule included several reporting requirements associated with the application process for the exemption from DCO registration, but the Commission declined to adopt a proposed third-party reporting (disclosure) requirement that was proposed in the SNPRM. As a result, the annual hours burden associated with this request includes 257 hours of reporting burden, as shown in Attachment A.

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Annual Cost to Federal Government: $48,360

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.     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? No

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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: 08/09/2023

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