Requirements for Derivatives Clearing Organizations

Forms and Documents

Document Name	Status
Form 3038-0076 Requirements for Derivative Clearing Organizations Form	Modified
2023 30-Day FRN 3038-0076 (88 FR 72436) (DCO Governance Final Rule).pdf Supplementary Document	2023-10-20
2023 60-Day FRN 3038-0076 (88 FR 44781) (DCO Governance Final Rule).pdf Supplementary Document	2023-10-17
2023 Supporting Statement 3038-0076 (DCO Governance Final Rule).docx Supporting Statement A	2023-10-17

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: 202310-3038-001
Status: Received in OIRA	Previous ICR Reference No: 202308-3038-003
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: 10/20/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	10/31/2026
Responses	22,578	22,578
Time Burden (Hours)	64,157	63,311
Cost Burden (Dollars)	905,674	905,674

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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”) 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 Part 39 of the Commission’s regulations applicable to registered DCOs, including requirements related to DCO governance. On July 13, 2023, the Commission adopted the final rule titled “Governance Requirements for Derivatives Clearing Organizations” (“Final Rule”), which amends § 39.24 to require DCOs to establish and consult with one or more risk management committees (“RMCs”) comprised of clearing members and customers of clearing members on matters that could materially affect the risk profile of the DCO. See 88 FR 44675 (Jul. 13, 2023). In addition, the Final Rule sets minimum requirements for RMC composition and rotation, and requires DCOs to establish and enforce fitness standards for RMC members. The Final Rule also adopts requirements for DCOs to maintain written policies and procedures governing the RMC consultation process and the role of RMC members. Finally, the Final Rule requires DCOs to establish one or more market participant risk advisory working groups (“RWGs”) that must convene at least two times per year, and adopt written policies and procedures related to the formation and role of the RWG. The Commission is revising its burden estimate for OMB control number 3038-0076 to account for new information collections set forth in the Final Rule. Specifically, the Commission believes that the burden under this clearance will increase because the 15 DCOs subject to these requirements will be required under § 39.24(b)(11) to create and maintain minutes of each RMC meeting, and under § 39.24(b)(12) to document and provide to the RMC, at a minimum, a summary of the topics discussed and the main points raised during each meeting of the RWG.

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

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AF15	Final or interim final rulemaking	88 FR 44675	07/13/2023

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 44781	07/13/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 72436	10/20/2023
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)	64,157	63,311	0	846	0	0
Annual Cost Burden (Dollars)	905,674	905,674	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

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

Burden Reduction Due to:

Short Statement: The Commission is revising its burden estimate for OMB control number 3038-0076 to account for information collection requirements set forth in the Commission's Final Rule, "Governance Requirements for Derivatives Clearing Organizations," 88 FR 44674 (Jul. 13, 2023). Specifically, the Commission believes that the burden under this clearance will increase because the 15 DCOs subject to these new reporting requirements will be required under § 39.24(b)(11) to create and maintain minutes of each RMC meeting, and under § 39.24(b)(12) to document and provide to the RMC, at a minimum, a summary of the topics discussed and the main points raised during each meeting of the RWG. These changes result in an incremental increase of 846 burden hours annually.

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Annual Cost to Federal Government: $221,586

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: 10/20/2023

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