The Commission is revising control number 3038-0093 in connection with final amendments to the Commissionâs regulations under Part 40 (including regulations 40.2, 40.3, 40.4, 40.5, 40.6 and 40.10). Part 40 provides procedures for the submission of rules and rule amendments by registered entities, including designated contract markets, swap execution facilities, derivatives clearing organizations, and swap data repositories. It establishes the procedures for submitting the âwritten certificationâ required by Section 5c of the Commodity Exchange Act (âCEAâ) in connection with a product or rule certification.
The Commission is amending the Part 40 regulations to clarify, simplify, and enhance their utility for market participants and the Commission. Commission staff has observed a trend that some of the submissions under part 40 tend not to include sufficient information. Accordingly, the Commission is adding language clarifying that the submissions must be âcomplete.â
These amendments are likely to modestly increase the PRA reporting burden for registered entities, although some registered entities are already providing the information required under the final rule. While the amendments are not intended to expand or otherwise alter the scope of the current regulation, the Commission conservatively estimates some reporting entities may expend some additional time cognizable under the PRA to ensure the completeness of their submissions.
Regulation 40.10 also contains submission procedures for certain risk-related rules proposed by a systemically important derivatives clearing organization (âSIDCOâ). The SIDCO regulations require, among other things, 60-days advance notice of proposed rules or rule amendments that may materially affect the nature or level of risks presented by the SIDCO. The SIDCO reporting burden will not be impacted by the amendments.
US Code:
7 USC 7a-2
Name of Law: Procedures for Registered Entities, etc.
The final rules would amend the Part 40 regulations that provide procedures for the submission of new products, rules and rule amendments by registered entities, including designated contract markets, swap execution facilities, derivatives clearing organizations, and swap data repositories. These changes would increase information submission requirements for the product and rule submissions to ensure that Commission staff receive the information necessary to assess whether new rules and products, and amendments to existing rules and product terms and conditions, comply with the CEA and Commission regulations.
As described in Attachment A, the proposal would result in a new total of 22,080 burden hours (this represents an increase of 1,540 burden hours from the currently approved total of 20,540 burden hours).
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.
2023 Coinbase Derivatives Comment (Part 40 NPRM) (3038-0093).pdf
2024 Supporting Statement 3038-0093 (Part 40 Final Rule).docx
Part 40, Provisions Common To Registered Entities