CFTC Alert! CFTC OPENS public comment on the proposed renewal of a collection of Swaps-Records of Transactions information by the agency.
Source: https://public-inspection.federalregister.gov/2023-07912.pdf
Background:
- Adaptation of Regulations to Incorporate Swaps-Records of Transactions; Exclusion of Utility Operations Related Swaps with Utility Special Entities from De Minimis Threshold for Swaps with Special Entities (OMB Control No. 3038-0090).
- This is a request for extension of a currently approved information collection.
- Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act, Pub L. No. 111-203, 124 Stat. 1376 (2010)) amended the Commodity Exchange Act (CEA) to establish a comprehensive new statutory framework for swaps.
- These amendments required the Commodity Futures Trading Commission to amend several of its regulations to implement the new framework.
- The information collection obligations imposed by the “Adaptation of Regulations to Incorporate Swaps” final regulations are necessary to implement section 721 of the Dodd-Frank Act, which amended the definitions of futures commission merchant (FCM) and introducing broker (IB) to permit these intermediaries to trade swaps on behalf of customers.
- They also are necessary to implement section 733 of the Dodd-Frank Act which introduced swap execution facilities (SEFs) as a new trading platform for swaps. As a result of the enactment of sections 721 and 733, the Commission needed to amend certain recordkeeping regulations (1.31, 1.33, 1.35, 1.37, and 1.39) so that records of swap transactions are maintained analogously to how futures transactions are maintained.
- Further, the “Exclusion of Utility Operations-Related Swaps with Utility Special Entities From De Minimis Threshold for Swaps with Special Entities” regulation amended the Commission’s swap dealer definition to permit a person to exclude “utility operations-related swaps” with “utility special entities” in their de minimis threshold calculations.
- The regulation requires a person claiming the exclusion to maintain in accordance with Commission regulation 1.31 any written representations that the person receives form utility special entities related to this exclusion
How to Comment:
- Comments due 60 days form 4/14/23
You may submit comments, identified by “OMB Control No. 3038- 0090” by any of the following methods:
- The Agency’s website, at https://comments.cftc.gov/. Follow the instructions for submitting comments through the web site--may not be searchable until 4/14.
- 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.
- Please submit your comments using only one method.
- All comments must be submitted in English, or if not, accompanied by an English translation.
- Comments will be posted as received to https://www.cftc.gov.
With respect to the collection of information, the CFTC invites comments on:
- Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information will have a practical use.
- The accuracy of the Commission’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used.
- Ways to enhance the quality, usefulness, and clarity of the information to be collected.
- Ways to minimize the burden of collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology; e.g., permitting electronic submission of responses.
TLDRS:
- This is a request for extension of a currently approved information collection.
- CFTC OPENS public comment on the proposed renewal of a collection of Swaps-Records of Transactions information by the agency.
With respect to the collection of information, the CFTC invites comments on:
- Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information will have a practical use.
- The accuracy of the Commission’s estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used.
- Ways to enhance the quality, usefulness, and clarity of the information to be collected.
- Ways to minimize the burden of collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology; e.g., permitting electronic submission of responses.
