90 FR 88 pgs. 19473-19475 - Agency Information Collection Activities Under OMB Review
Type: NOTICEVolume: 90Number: 88Pages: 19473 - 19475
Pages: 19473, 19474, 19475FR document: [FR Doc. 2025-08066 Filed 5-7-25; 8:45 am]
Agency: Commodity Futures Trading Commission
Official PDF Version: PDF Version
[top]
COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities Under OMB Review
AGENCY:
Commodity Futures Trading Commission.
ACTION:
Notice.
SUMMARY:
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 June 9, 2025.
ADDRESSES:
[top] 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
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. 3038-0094, 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 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 ("FOIA"), 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, pre-screen, 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 FOIA.
Footnotes:
1 ?17 CFR 145.9, 74 FR 17395 (Apr. 15, 2009).
FOR FURTHER INFORMATION CONTACT:
Catherine Brescia, Attorney Advisor, Market Participants Division, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; (202) 418-6236; email: cbrescia@cftc.gov.
SUPPLEMENTARY INFORMATION:
Title: Clearing Member Risk Management (OMB Control No. 3038-0094). This is a request for an extension of a currently approved information collection.
Abstract: Section 3(b) of the Commodity Exchange Act ("Act" or "CEA") provides that one of the purposes of the Act is to ensure the financial integrity of all transactions subject to the Act and to avoid systemic risk. Section 8a(5) of the CEA authorizes the Commission to promulgate such regulations that it believes are reasonably necessary to effectuate any of the provisions or to accomplish any of the purposes of the CEA. Risk management systems are critical to the avoidance of systemic risk.
Section 4d of the CEA requires Futures Commission Merchants ("FCMs") to register with the Commission. It further requires FCMs to segregate customer funds. Section 4f of the CEA requires FCMs to maintain certain levels of capital and Section 4g of the CEA establishes reporting and recordkeeping requirements for FCMs.
Section 4s(j)(2) of the CEA requires each Swap Dealer ("SD") and Major Swap Participant ("MSP") to have risk management systems adequate for managing its day-to-day business. Section 4s(j)(4) of the CEA requires each SD and MSP to have internal systems and procedures to obtain any necessary information to perform any of the functions set forth in Section 4s.
Pursuant to these provisions, the Commission adopted Commission regulation 1.73 which applies to clearing members that are FCMs and Commission regulation 23.609 which applies to clearing members that are SDs or MSPs. 2 These provisions require these clearing members to have procedures to limit the financial risks they incur as a result of clearing trades and liquid resources to meet obligations.
Footnotes:
2 ?77 FR 21278 (Apr. 9, 2012).
The regulations require clearing members, who are FCMs, SDs, or MSPs to: (1) establish risk-based limits based on position size, order size, margin requirements, or similar factors, and for FCMs, risk-based limits must be established for the proprietary account and in each customer account; (2) screen orders for compliance with the risk-based limits; (3) monitor for adherence to the risk-based limits intra-day and overnight; (4) conduct stress tests under extreme but plausible conditions of all positions at least once per week, and for FCMs, the stress tests must be conducted for all positions in the proprietary account and in each customer account that could pose material risk to the FCM; (5) evaluate its ability to meet initial margin requirements at least once per week; (6) evaluate its ability to meet variation margin requirements in cash at least once per week; (7) evaluate its ability to liquidate the positions it clears in an orderly manner, and estimate the cost of the liquidation, and for FCMs, the evaluation must be done at least once per quarter and conducted for all positions in the proprietary account and customer accounts; and (8) test all lines of credit at least once per year.
Each of these items has been observed by Commission staff as an element of an existing sound risk management program at an FCM, SD, or MSP. The Commission regulations require each FCM, SD, or MSP clearing member to establish written procedures to comply with these regulations and to keep records documenting its compliance.
The information collection obligations imposed by the regulations are necessary to implement certain provisions of the CEA, including ensuring that registrants exercise effective risk management and for the efficient operation of trading venues among FCMs, SDs, and MSPs that are clearing members, in order to maintain financial stability at derivatives clearing organizations ("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. 3 On February 4, 2025, 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, 90 FR 8927 ("60-Day Notice"). The Commission did not receive any relevant comments on the 60-Day Notice.
Footnotes:
3 ?44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8(b)(3)(vi). See also 46 FR 63035 (Dec. 30, 1981).
Burden Statement: The Commission is not revising its estimate of the burden for this collection, as the total number of respondents has not changed. The respondent burden for this collection is estimated to be as follows:
Estimated Number of Respondents: 167 (61 Clearing Member FCMs and 106 Clearing Member SDs). 4
Footnotes:
4 ?The 60-Day Notice reflected an estimate of 168 respondents. Based on this number of respondents, the Commission had previously estimated that the annual burden hours for all respondents totaled 84,672. These estimates have been updated based on the most recent available data on the total number of respondents as shown here.
[top]
Estimated Average Burden Hours per Respondent: 504 hours.
Estimated Total Annual Burden Hours: 84,168 hours.
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: May 5, 2025.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2025-08066 Filed 5-7-25; 8:45 am]
BILLING CODE 6351-01-P