The Commission is revising control
number 3038-0093 in connection with final amendments to the
Commission’s 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 “written
certification” required by Section 5c of the Commodity Exchange Act
(“CEA”) 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 “complete.” 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 (“SIDCO”). 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.
2024 Supporting Statement 3038-0093 (Part 40 Final Rule).docx
Part 40, Provisions Common To Registered Entities