Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral

Forms and Documents

Forms and supporting documents for this ICR

Document	Type	Status	Availability
2023 Supporting Statement 3038-0024, 3038-0091 (Rule 1.25 NPRM).docx	Supporting Statement A	Uploaded 2023-12-28	Repair queued

IC Document Collections

Information collection document groups

IC ID	Collection	Type	Status	Form
198102	Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral		Modified

ICR Details

OMB Control No: 3038-0091	ICR Reference No: 202312-3038-008
Status: Historical Inactive	Previous ICR Reference No: 202308-3038-001
Agency/Subagency: CFTC	Agency Tracking No:
Title: Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule and continue	Conclusion Date: 02/26/2024
Retrieve Notice of Action (NOA)	Date Received in OIRA: 12/28/2023
Terms of Clearance: OMB files this comment in accordance with 5 CFR 1320.11(c). This OMB action is not an approval to conduct or sponsor an information collection under the Paperwork Reduction Act of 1995. This action has no effect on any current approvals. If OMB has assigned this ICR a new OMB Control Number, the OMB Control Number will not appear in the active inventory. For future submissions of this information collection, reference the OMB Control Number provided. Resubmit when proposed rule is finalized.

table that charts list comparision

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	12/31/2026	36 Months From Approved	12/31/2026
Responses	112,425	0	112,425
Time Burden (Hours)	25,050	0	25,050
Cost Burden (Dollars)	0	0	0

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Abstract: Commission Regulation 1.20 requires that FCMs obtain a written acknowledgement from each bank, trust company, or FCM that serves as a depository for futures customer funds, declaring, among other statements, that funds placed with the depository are customer funds held in accordance with the CEA and CFTC regulations. Regulations 22.5 and 30.7 contain related requirements for Cleared Swaps Customer Collateral and 30.7 funds, respectively. In addition, Regulation 1.26 requires each FCM or DCO that invests futures customer funds in certain financial instruments, as permitted by Regulation 1.25, to separately account for such instruments and to segregate the instruments from its own funds. The FCM or DCO also must obtain and retain in its files a written acknowledgment from the depository holding the instruments stating that the depository was informed that the instruments belong to futures customers and are being held in accordance with the provisions of the CEA and CFTC regulations. Regulation 1.26 also specifies how direct investments in money market funds (“MMFs”) must be held and sets forth the template acknowledgement letter to be used with respect to direct investments in MMFs. Regulations 22.5 and 30.7(d) set forth similar requirements with respect to Cleared Swaps Customer Collateral and 30.7 customer funds. The Commission is proposing to amend its regulations governing the investment of customer funds to, among other changes, add certain exchange-traded funds (“ETFs”) to the list of permitted investments in Regulation 1.25. To account for the proposed addition of ETFs, the Commission is also proposing conforming changes to Regulation 1.26. The proposed amendments to Regulation 1.26 would require FCMs and DCOs segregating customer funds in a permitted ETF account to obtain and maintain in their files an acknowledgment letter from the depository or fund in which customer funds are held and to file such acknowledgment letter electronically with the Commission. The Commission is proposing an analogous amendment to Regulation 30.7(d)(2) with respect to investments of 30.7 customer funds by FCMs. The Commission notes that an amendment to Regulation 22.5 would not be necessary as this regulation cross-references Regulation 1.26. The burden hour estimates in connection with the requirements under Regulation 22.5, however, would be adjusted, to reflect the proposed amendments to Regulation 1.26.

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Authorizing Statute(s): US Code: 7 USC 6d(f) Name of Law: CEA
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AF24	Proposed rulemaking	88 FR 81236	11/21/2023

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

table that charts list of burden

IC Title	Form No.	Form Name
Disclosure and Retention of Certain Information Relating to Cleared Swaps Customer Collateral

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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 annual reporting and recordkeeping burden hours have been updated to account for the proposed revisions to Regulations 1.26 and 30.7, which would result in a requirement for FCMs and DCOs to obtain acknowledgment letters in connection with investments of customer funds in ETFs. If adopted, this proposal would result in a slight increase in recordkeeping burden hours of 11 hours annually. This yields an overall increase in recordkeeping burden hours for this collection of 13,061 burden hours (up from the previous total of 13,050). Due to this increase, the total burden hours for this collection would increase from 25,050 burden hours to 25,061 burden hours annually.

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Annual Cost to Federal Government: $0

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.     No

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: 12/28/2023

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