2023 30-Day FRN 3038-0091

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implement conflict of interest
procedures that address such issues as
the Commission determines to be
appropriate. Section 4s(j)(5) also
requires SDs and MSPs to ensure that
any persons providing clearing activities
or making determinations as to
accepting clearing customers are
separated by appropriate informational
partitions from persons whose
involvement in pricing, trading, or
clearing activities might bias their
judgment or contravene the core
principle of open access. Section 4s(j)(6)
of the CEA prohibits a SD or MSP from
adopting any process or taking any
action that results in any unreasonable
restraint on trade or imposes any
material anticompetitive burden on
trading or clearing, unless necessary or
appropriate to achieve the purposes of
the Act. Section 2(h)(1)(B)(ii) of the CEA
requires that derivatives clearing
organization (‘‘DCO’’) rules provide for
the nondiscriminatory clearing of swaps
executed bilaterally or through an
unaffiliated designated contract market
or swap execution facility.
To address these provisions, the
Commission promulgated regulations
that prohibit arrangements involving
FCMs, SDs, MSPs, and DCOs that would
(a) disclose to an FCM, SD, or MSP the
identity of a customer’s original
executing counterparty (§§ 1.72(a),
23.608(a), and 39.12(a)(1)(vi)); (b) limit
the number of counterparties with
whom a customer may enter into a trade
(§§ 1.72(b), 23.608(b), and
39.12(a)(1)(vi)); (c) restrict the size of the
position a customer may take with any
individual counterparty, apart from an
overall credit limit for all positions held
by the customer at the FCM (§§ 1.72(c),
23.608(c), and 39.12(a)(1)(vi)); (d)
impair a customer’s access to execution
of a trade on terms that have a
reasonable relationship to the best terms
available (§§ 1.72(d), 23.608(d), and
39.12(a)(1)(vi)); or (e) prevent
compliance with specified time frames
for acceptance of trades into clearing set
forth in 1.74(b), 23.610(b), or 39.12(b)(7)
(§§ 1.72(e), 23.608(e), and
39.12(a)(1)(vi)). Additionally, the
Commission requires, through
regulation 39.12(b)(7)(i)(B), DCOs to
coordinate with clearing members to
establish prompt processing of trades.
Regulations 1.74(a) and 23.610(a)
require reciprocal coordination by
FCMs, SDs, and MSPs that are clearing
members.
Under the above regulations, SDs,
MSPs, FCMs, and DCOs are required to
develop and maintain written customer
clearing documentation and trade
processing procedures. Maintenance of
contracts, policies, and procedures is

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prudent business practice. All SDs,
MSPs, FCMs, and DCOs maintain
documentation consistent with these
regulations. The regulations are crucial
both for effective risk management and
for the efficient operation of trading
venues among SDs, MSPs, FCMs, and
DCOs. Each of these entities has a
general recordkeeping obligation for
these requirements under the
Commission’s regulations (§ 39.20 for
DCOs; § 23.606 for SDs and MSPs; and
§ 1.73 for FCMs).
The information collection burden
arising from the regulations primarily is
restricted to the costs associated with
the affected registrants’ obligation to
maintain records related to clearing
documentation between the customer
and the customer’s clearing member,
and trade processing procedures
between DCOs and FCMs, SDs, and
MSPs. The information collection
obligations are necessary to implement
certain provisions of the CEA, including
ensuring that registrants exercise
effective risk management, and are also
appropriate for the efficient operation of
trading venues among SDs, MSPs,
FCMs, and DCOs.
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.2 On August 25, 2023,
the Commission published in the
Federal Register notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension, 88
FR 58251 (‘‘60-Day Notice’’). The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
180.
Estimated Average Burden Hours per
Respondent: 40.
Estimated Total Annual Burden
Hours: 7,200.
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: November 6, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023–24875 Filed 11–9–23; 8:45 am]
BILLING CODE 6351–01–P
2 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8
(b)(3)(vi).

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77563

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 Information and Regulatory
Affairs (‘‘OIRA’’), of 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 December 13, 2023.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be
submitted within 30 days of this
notice’s publication to OIRA, at https://
www.reginfo.gov/public/do/PRAMain.
Please find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the website’s
search function. Comments can be
entered electronically by clicking on the
‘‘comment’’ button next to the
information collection on the ‘‘OIRA
Information Collections Under Review’’
page, or the ‘‘View ICR—Agency
Submission’’ page. A copy of the
supporting statement for the collection
of information discussed herein may be
obtained by visiting https://
www.reginfo.gov/public/do/PRAMain.
In addition to the submission of
comments to https://Reginfo.gov as
indicated above, a copy of all comments
submitted to OIRA may also be
submitted to the Commodity Futures
Trading Commission (‘‘CFTC’’ or the
‘‘Commission’’) by clicking on the
‘‘Submit Comment’’ box next to the
descriptive entry for ‘‘OMB Control No.
3038–0091,’’ at https://
comments.cftc.gov/FederalRegister/
PublicInfo.aspx.
Or by either of the following methods:
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Same as
Mail above.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments
submitted to the Commission should
SUMMARY:

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Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices

include 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, 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.1 The
Commission reserves the right, but shall
have no obligation, to review, prescreen,
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
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
Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT:
Maria Aguilar-Rocha, Attorney Advisor,
Market Participants Division,
Commodity Futures Trading
Commission, (202) 418–5840, [email protected], and refer to OMB
Control No. 3038–0091.
SUPPLEMENTARY INFORMATION:
Title: Disclosure and Retention of
Certain Information Relating to Cleared
Swaps Customer Collateral (OMB
Control No. 3038–0091). This is a
request for extension of a currently
approved information collection.
Abstract: Section 724(a) of the DoddFrank Wall Street Reform and Consumer
Protection Act, Public Law 111–023,
124 stat. 1376, amended the Commodity
Exchange Act (‘‘CEA’’), 7 U.S.C. 1 et
seq., to add, as section 4d(f) thereof,
provisions concerning the protection of
collateral provided by a Cleared Swaps
Customer to margin, guaranty, or secure
a swap cleared by or through a
derivatives clearing organization
(‘‘DCO’’). Broadly speaking, in cleared
swaps transactions customers provide
collateral to futures commission
merchants (‘‘FCMs’’) through whom
they clear their transactions. FCMs, in
turn, may provide customer collateral to
DCOs, through which FCMs clear
transactions for their customers. 17 CFR
part 22 is intended to implement CEA
section 4d(f). Several of the sections of
part 22 require collections of
information.
Section 22.2(g) requires each FCM
with Cleared Swaps Customer Accounts
to compute daily the amount of Cleared
1 17

CFR 145.9.

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Swaps Customer Collateral on deposit
in Cleared Swaps Customer 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. The
purpose of this collection of information
is to help ensure that FCMs’ Cleared
Swaps Customer Accounts are in
compliance at all times with statutory
and regulatory requirements for 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 of the FCM, and not
the FCM itself or any other person. The
purpose of this collection of information
is to confirm that the depository
understands its responsibilities with
respect to protection of cleared swaps
customer funds.
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, to provide the DCO
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 with
information sufficient to identify each
customer’s portfolio of rights and
obligations arising out of cleared swaps
intermediated by the FCM. The purpose
of this collection of information is to
facilitate risk management by DCOs in
the event of default by the FCM, to
enable DCOs to perform their duty,
pursuant to section 22.15, to treat the
collateral attributed to each customer of
the FCM on an individual basis.
Section 22.12 requires that each DCO
and FCM, on a daily basis, calculate,
based on information received pursuant
to section 22.11 and on information
generated and used in the ordinary
course of business by the DCO or FCM,
and record certain information about the
amount of collateral required for each
Cleared Swaps Customer and the sum of
these amounts. As with section 22.11,
the purpose of this collection of
information is to facilitate risk
management by DCOs and in the event
of default by the FCM, to enable DCOs
to perform their duty, pursuant to
section 22.15, to treat the collateral
attributed to each customer of the FCM
on an individual basis.
Section 22.16 requires that each FCM
who has Cleared Swaps Customers
disclose to each of such customers the

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governing provisions, as established by
DCO rules or customer agreements
between collecting and depositing
FCMs, relating to use of customer
collateral, transfer, neutralization of the
risks, or liquidation of cleared swaps in
the event of a default by a Depositing
FCM relating to a Cleared Swaps
Customer Account. The purpose of this
collection of information is to ensure
that Cleared Swaps Customers are
informed of the procedures to which
accounts containing their swaps
collateral may be subject in the event of
a default by their FCM.
Section 22.17 requires that each FCM
produce a written notice of the reasons
and the details concerning withdrawals
from a 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.
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. On August 29, 2023,
the Commission published in the
Federal Register notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension, 88
FR 59510 (‘‘60-Day Notice’’). The
Commission did not receive any
relevant comments on the 60-Day
Notice.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection for 75 respondents (60
FCMs and 15 DCOs). The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
75.
Estimated Average Burden Hours per
Respondent: 334.
Estimated Total Annual Burden
Hours: 25,050.
Frequency of Collection: Section
22.2(g)—Daily. Section 22.5(a)—Once.
Section 22.11—Daily. Section 22.12—
Daily. Section 22.16—Once. Section
22.17—On occasion.
There is no capital cost associated
with this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: November 7, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023–24948 Filed 11–9–23; 8:45 am]
BILLING CODE 6351–01–P

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