30-Day Federal Register Notice

(2023) 30-Day FR Notice - 3038-0092.pdf

Customer Clearing Documentation and Timing of Acceptance for Clearing

30-Day Federal Register Notice

OMB: 3038-0092

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Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices

A. Discontinuing the Rebuilding Plan
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in this agenda may come before the
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Council action during its 197th meeting.
However, Council action on regulatory
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Kitty M. Simonds, (808) 522–8220
(voice) or (808) 522–8226 (fax), at least
5 days prior to the meeting date.
Authority: 16 U.S.C. 1801 et seq.
Dated: November 7, 2023.
Rey Israel Marquez,
Acting Deputy Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2023–24946 Filed 11–9–23; 8:45 am]
BILLING CODE 3510–22–P

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities Under OMB Review
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

In compliance with the
Paperwork Reduction Act of 1995
(PRA), this notice announces that the
Information Collection Request (ICR)
abstracted below has been forwarded to
the Office of Information and Regulatory
Affairs (OIRA), of the Office of
Management and Budget (OMB), for
review and comment. The ICR describes
the nature of the information collection
and its expected costs and burden.
DATES: Comments must be submitted on
or before December 13, 2023.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be
submitted within 30 days of this
notice’s publication to OIRA, at https://
www.reginfo.gov/public/do/PRAMain.
Please find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the website’s
search function. Comments can be
entered electronically by clicking on the
‘‘comment’’ button next to the
information collection on the ‘‘OIRA
Information Collections Under Review’’
page, or the ‘‘View ICR—Agency
Submission’’ page. A copy of the
supporting statement for the collection
of information discussed herein may be
obtained by visiting https://
www.reginfo.gov/public/do/PRAMain.
In addition to the submission of
comments to https://Reginfo.gov as
indicated above, a copy of all comments
submitted to OIRA may also be
submitted to the Commodity Futures
Trading Commission (the
‘‘Commission’’ or ‘‘CFTC’’) by clicking
on the ‘‘Submit Comment’’ box next to
the descriptive entry for OMB Control
No. 3038–0092, at https://
comments.cftc.gov/FederalRegister/
PublicInfo.aspx.
SUMMARY:

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Or by either of the following methods:
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Same as
Mail above.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments
submitted to the Commission should
include only information that you wish
to make available publicly. If you wish
the Commission to consider information
that you believe is exempt from
disclosure under the Freedom of
Information Act, a petition for
confidential treatment of the exempt
information may be submitted according
to the procedures established in § 145.9
of the Commission’s regulations.1 The
Commission reserves the right, but shall
have no obligation, to review, prescreen, filter, redact, refuse or remove
any or all of your submission from
https://www.cftc.gov that it may deem to
be inappropriate for publication, such as
obscene language. All submissions that
have been redacted or removed that
contain comments on the merits of the
ICR will be retained in the public
comment file and will be considered as
required under the Administrative
Procedure Act and other applicable
laws, and may be accessible under the
Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT:
Catherine Brescia, Attorney Advisor,
Market Participants Division,
Commodity Futures Trading
Commission, (202) 418–6236; email:
[email protected], and refer to OMB
Control No. 3038–0092.
SUPPLEMENTARY INFORMATION:
Title: Customer Clearing
Documentation and Timing of
Acceptance for Clearing (OMB Control
No. 3038–0092). This is a request for
extension of a currently approved
information collection.
Abstract: Section 4d(c) of the
Commodity Exchange Act (‘‘CEA’’), as
amended by the Dodd-Frank Wall Street
Reform and Consumer Protection Act
(‘‘Dodd-Frank Act’’), directs the
Commission to require futures
commission merchants (‘‘FCMs’’) to
implement conflict of interest
procedures that address such issues as
the Commission determines to be
appropriate. Similarly, section 4s(j)(5) of
the CEA, as added by the Dodd-Frank
Act, requires swap dealers (‘‘SDs’’) and
major swap participants (‘‘MSPs’’) to
1 17

CFR 145.9.

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khammond on DSKJM1Z7X2PROD with NOTICES

Federal Register / Vol. 88, No. 217 / Monday, November 13, 2023 / Notices
implement conflict of interest
procedures that address such issues as
the Commission determines to be
appropriate. Section 4s(j)(5) also
requires SDs and MSPs to ensure that
any persons providing clearing activities
or making determinations as to
accepting clearing customers are
separated by appropriate informational
partitions from persons whose
involvement in pricing, trading, or
clearing activities might bias their
judgment or contravene the core
principle of open access. Section 4s(j)(6)
of the CEA prohibits a SD or MSP from
adopting any process or taking any
action that results in any unreasonable
restraint on trade or imposes any
material anticompetitive burden on
trading or clearing, unless necessary or
appropriate to achieve the purposes of
the Act. Section 2(h)(1)(B)(ii) of the CEA
requires that derivatives clearing
organization (‘‘DCO’’) rules provide for
the nondiscriminatory clearing of swaps
executed bilaterally or through an
unaffiliated designated contract market
or swap execution facility.
To address these provisions, the
Commission promulgated regulations
that prohibit arrangements involving
FCMs, SDs, MSPs, and DCOs that would
(a) disclose to an FCM, SD, or MSP the
identity of a customer’s original
executing counterparty (§§ 1.72(a),
23.608(a), and 39.12(a)(1)(vi)); (b) limit
the number of counterparties with
whom a customer may enter into a trade
(§§ 1.72(b), 23.608(b), and
39.12(a)(1)(vi)); (c) restrict the size of the
position a customer may take with any
individual counterparty, apart from an
overall credit limit for all positions held
by the customer at the FCM (§§ 1.72(c),
23.608(c), and 39.12(a)(1)(vi)); (d)
impair a customer’s access to execution
of a trade on terms that have a
reasonable relationship to the best terms
available (§§ 1.72(d), 23.608(d), and
39.12(a)(1)(vi)); or (e) prevent
compliance with specified time frames
for acceptance of trades into clearing set
forth in 1.74(b), 23.610(b), or 39.12(b)(7)
(§§ 1.72(e), 23.608(e), and
39.12(a)(1)(vi)). Additionally, the
Commission requires, through
regulation 39.12(b)(7)(i)(B), DCOs to
coordinate with clearing members to
establish prompt processing of trades.
Regulations 1.74(a) and 23.610(a)
require reciprocal coordination by
FCMs, SDs, and MSPs that are clearing
members.
Under the above 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

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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 (§ 39.20 for
DCOs; § 23.606 for SDs and MSPs; and
§ 1.73 for FCMs).
The information collection burden
arising from the regulations primarily is
restricted to the costs associated with
the affected registrants’ obligation to
maintain records related to clearing
documentation between the customer
and the customer’s clearing member,
and trade processing procedures
between DCOs and FCMs, SDs, and
MSPs. The information collection
obligations are necessary to implement
certain provisions of the CEA, including
ensuring that registrants exercise
effective risk management, and are also
appropriate for the efficient operation of
trading venues among SDs, MSPs,
FCMs, and DCOs.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a currently valid OMB
control number.2 On August 25, 2023,
the Commission published in the
Federal Register notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension, 88
FR 58251 (‘‘60-Day Notice’’). The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
180.
Estimated Average Burden Hours per
Respondent: 40.
Estimated Total Annual Burden
Hours: 7,200.
Frequency of Collection: As needed.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: November 6, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023–24875 Filed 11–9–23; 8:45 am]
BILLING CODE 6351–01–P
2 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8
(b)(3)(vi).

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77563

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities Under OMB Review
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

In compliance with the
Paperwork Reduction Act of 1995
(‘‘PRA’’), this notice announces that the
Information Collection Request (‘‘ICR’’)
abstracted below has been forwarded to
the Office of Information and Regulatory
Affairs (‘‘OIRA’’), of the Office of
Management and Budget (‘‘OMB’’), for
review and comment. The ICR describes
the nature of the information collection
and its expected costs and burden.
DATES: Comments must be submitted on
or before December 13, 2023.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be
submitted within 30 days of this
notice’s publication to OIRA, at https://
www.reginfo.gov/public/do/PRAMain.
Please find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the website’s
search function. Comments can be
entered electronically by clicking on the
‘‘comment’’ button next to the
information collection on the ‘‘OIRA
Information Collections Under Review’’
page, or the ‘‘View ICR—Agency
Submission’’ page. A copy of the
supporting statement for the collection
of information discussed herein may be
obtained by visiting https://
www.reginfo.gov/public/do/PRAMain.
In addition to the submission of
comments to https://Reginfo.gov as
indicated above, a copy of all comments
submitted to OIRA may also be
submitted to the Commodity Futures
Trading Commission (‘‘CFTC’’ or the
‘‘Commission’’) by clicking on the
‘‘Submit Comment’’ box next to the
descriptive entry for ‘‘OMB Control No.
3038–0091,’’ at https://
comments.cftc.gov/FederalRegister/
PublicInfo.aspx.
Or by either of the following methods:
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Same as
Mail above.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments
submitted to the Commission should
SUMMARY:

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