Title VII of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (DFA) established a
comprehensive regulatory framework for derivatives, which are
generally characterized as swaps and security-based swaps. Sections
731 and 764 of the DFA require the registration and regulation of
certain “swap entities”. For certain types of swap entities that
are prudentially regulated by one of the Agencies ("covered swap
entities"), sections 731 and 764 of the DFA require the Agencies to
jointly adopt rules for swap entities under their respective
jurisdictions imposing capital requirements and initial and
variation margin requirements on all non-cleared swaps. The
swaps-related provisions are intended to reduce risk, increase
transparency, promote market integrity within the financial system,
and, in particular, address a number of weaknesses in the
regulation and structure of the swaps markets that were revealed
during the financial crisis. The opacity of swap transactions among
dealers and between dealers and their counterparties created
uncertainty about whether market participants were significantly
exposed to the risk of a default by a swap counterparty. The OCC,
Board, FDIC, FCA, and FHFA (the Agencies) issued an interim final
rule (Brexit Interim Final Rule) that addresses a potential impact
of the scenario in which the United Kingdom (U.K.) exits from the
European Union (E.U.) without a negotiated withdrawal agreement
allowing financial services firms located in the U.K. to continue
providing full-scope financial services in the E.U. The Brexit
Interim Final Rule includes a new information collection
requirement for transfers initiated by a covered swap entity’s
counterparty. For those transfers, the counterparty must make a
representation to the covered swap entity that the counterparty
performed the transfer in compliance with the requirements of the
rule.
In late 2022 and early 2023,
PRA and legal representatives from the FDIC, Federal Reserve Board
(FRB) and Office of the Comptroller of Currency (OCC) (together,
agencies) reviewed the set of ICs in each agency’s respective ICR.
Based on this review and the FDIC’s own internal review, the FDIC
has determined that only six of the eleven existing ICs continue to
capture the PRA burden imposed by 349 Subpart A. A new IC has been
added to capture recordkeeping burden previously included within
one of the removed ICs.
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.
FR2-0204 Margin and Capital Requirements for Swap Entities 88 FR 65678 Sept 25 2023.pdf
SPST-0204 AF08 Margin and Capital Requirements for Covered Swap Entities 2023 Revisions.docx
Documentation