Part 40 provides procedures for the
submission of rules and rule amendments by registered entities,
including designated contract markets, swap execution facilities,
derivatives clearing organizations, and swap data repositories. It
establishes the procedures for submitting the “written
certification” required by Section 5c of the Commodity Exchange Act
(“CEA”) in connection with a product or rule certification.
Accordingly, new rules or rule amendments must be accompanied by
explanations and analyses of the purposes, operations, and effects
of the submissions. This information may be submitted as part of
the same submission containing the required “written
certification.” The Commission is proposing to amend the Part 40
regulations to clarify, simplify, and enhance their utility for
market participants and the Commission. This includes some
increased information submission requirements for the product and
rule submission to ensure that Commission staff receive the
information necessary to assess whether new rules and products, and
amendments to existing rules and product terms and conditions,
comply with the CEA and Commission regulations. The additional
explanation and analysis required by the proposed rules is
necessary for regulatory purposes. Without prompt receipt of
supporting information, staff must expend significant resources and
time to replicate the analysis required to support a product or
rule submission or to otherwise independently establish a product
or rule’s compliance with applicable law. Regulation 40.10 also
contains submission procedures for certain risk-related rules
proposed by a systemically important derivatives clearing
organization (“SIDCO”). The SIDCO regulations require, among other
things, 60-days advance notice of proposed rules or rule amendments
that may materially affect the nature or level of risks presented
by the SIDCO. The SIDCO reporting burden will not be impacted by
the proposed amendments.
US Code:
7 USC
7a-2 Name of Law: Procedures for Registered Entities, etc.
The proposed rules would amend
the Part 40 regulations that provide procedures for the submission
of new products, rules and rule amendments by registered entities,
including designated contract markets, swap execution facilities,
derivatives clearing organizations, and swap data repositories.
These changes would increase information submission requirements
for the product and rule submissions to ensure that Commission
staff receive the information necessary to assess whether new rules
and products, and amendments to existing rules and product terms
and conditions, comply with the CEA and Commission regulations. As
described in Attachment A, the proposal would revise the first
Information Collection under this clearance titled “Provisions
Common to Registered Entities,” resulting in a new total of 22,896
burden hours. The second information collection under this
clearance titled "Part 150 Position Limits" is unchanged.
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:
(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;
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.
2023 Supporting Statement 3038-0093 (Part 40 NPRM).docx
Part 150 Position Limits