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 âswap entitiesâ. 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 entityâs 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 agencyâs respective ICR. Based on this review and the FDICâs 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