Requirements for Derivatives Clearing Organizations

Forms and Documents

Document Name	Status
Form 3038-0076 Requirements for Derivative Clearing Organizations Form	Modified
2023 Supporting Statement 3038-0076 (DCO Reporting Final Rule).docx Supporting Statement A	2023-08-29
2023 DCO Reporting Final Rule (3038-0076) (88 FR 53664).pdf Supplementary Document	2023-08-29

IC Document Collections

IC ID	Document Title	Status
195766	Requirements for Derivative Clearing Organizations Form	Modified

ICR Details

OMB Control No: 3038-0076	ICR Reference No: 202308-3038-003
Status: Received in OIRA	Previous ICR Reference No: 202303-3038-001
Agency/Subagency: CFTC	Agency Tracking No:
Title: Requirements for Derivatives Clearing Organizations
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 08/29/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	05/31/2026
Responses	22,578	22,578
Time Burden (Hours)	63,311	63,311
Cost Burden (Dollars)	905,674	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. In order to register and maintain registration with the Commission, a DCO must comply with the DCO Core Principles and all applicable Commission regulations. This information collection, as a whole, covers the burden associated with various requirements under Part 39 of the Commission’s regulations, including applications for registration as a DCO, reporting and recordkeeping requirements for registered DCOs, and compliance with Subpart C of Part 39 by systemically important DCOs and DCOs electing to be subject to Subpart C. The Commission is amending the reporting and public information requirements for DCOs. The amendments merely clarify, narrow, or remove various requirements or add new but relatively minor requirements, such as requirements to report items that are expected to occur infrequently. The Commission estimates that these amendments will have have no effect or at most a negligible effect on the reporting burden under these rules. Accordingly, as described in further detail below, the Commission is retaining its existing burden hour and labor cost estimates under the rule without change. The Commission is also adding appendix C to part 39 that sets out the data fields that a DCO will be required to provide on a daily basis. This new appendix will both clarify existing requirements and add a few additional requirements. Specifically, the Commission is proposing to require that a DCO that clears interest rate swaps include in its daily reports the delta ladder, gamma ladder, vega ladder, zero rate curves, and yield curves that the DCO uses in connection with managing risks associated with interest rate swaps positions. The Commission also is requiring a DCO that clears interest rate swaps, forward rate agreements, or inflation index swaps to include in its daily reports the actual trade date for each position, along with an event description. The Commission is further requiring that each DCO include in its daily reports timing information about variation margin calls and payments, and also to include in its daily reports information that reflects that the daily report is complete. Lastly, in connection with adding to § 39.19(c)(1)(i) a requirement that a DCO include in its daily reports the results of its required daily margin model back testing, the Commission also is adding to new appendix C the additional data fields necessary to implement this requirement. The Commission needs this information to better ascertain and evaluate the risks associated with these positions and to improve its risk surveillance of DCOs. The Commission estimates that DCOs may incur some additional capital and start-up costs in order to adapt their systems to report the fields required under the new Appendix C.

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

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AF12	Final or interim final rulemaking	88 FR 53664	08/08/2023

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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
Requirements for Derivative Clearing Organizations	3038-0076	Form DCO

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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	22,578	22,578	0	0	0	0
Annual Time Burden (Hours)	63,311	63,311	0	0	0	0
Annual Cost Burden (Dollars)	905,674	0	0	905,674	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement:

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Annual Cost to Federal Government: $219,726

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: 08/29/2023

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