Documentation and Timing of Acceptance for Clearing
Extension without change of a currently approved collection
36 Months From Approved
Under the 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 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
(regulation 39.20 for DCOs; regulation 23.606 for SDs and MSPs; and
regulation 1.73 for FCMs). The regulations are an important part of
the Commission’s regulatory program for SDs, MSPs, FCMs, and DCOs.
The information required to be preserved is used by representatives
of the Commission to ensure compliance with the CEA and applicable
Commission regulations relating to clearing activities.
While the number of DCOs
remains the same, at 15 registrants as in 2020, the burden hour
adjustment is due to a decrease in the number of SDs, MSPs, and
FCMs from 168 to 165, resulting in 180 as the total number of
respondents (from 183 in 2020). While the burden hours, at 40 hours
per respondent, remains the same as in 2020, the renewal reflects
the increase in hourly burden cost from $100.00 to $120.00,
bringing the total annual respondent burden cost to $864,000 ($120
x 40 hrs. per respondent x 180 respondents), an increase from
$732,000 in respondent burden cost in 2020.