Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (âDodd-Frank Actâ) added new section 5h to the Commodity Exchange Act to impose requirements concerning the registration and operation of swap execution facilities (âSEFsâ), which the Commission has incorporated in part 37 of its regulations. The information collections under this Control Number are necessary for the Commission to evaluate whether SEFs, or entities applying to become SEFs, comply with the part 37 regulatory requirements.
The Commission is not proposing any program changes or adjustments, but the Commission is revising its burden hour estimates based on (a) its observation of SEFs and feedback from market participants, as SEFs did not exist prior to either the Dodd-Frank Act or the Commissionâs original 3038-0074 submission, and (b) the revised number of 23 currently-registered SEFs (the Commission had initially estimated that there would be 35 SEFs). The Commission makes two further observations:
First, in the supporting statement to this submission, the Commission is clarifying that applicants for permanent SEF registration incur approximately 300 burden hours. However, as discussed above, this 300-hour estimate does not represent a new information collection burden or adjustment for applicants for SEF registration. Rather, as noted above, while the Commission did consider the burden hours related to the SEF application process in its original information collection submission for this OMB Control Number, the Commission did not explicitly distinguish the burden hours related to the registration process for SEF applicants from the Commissionâs estimate of the on-going annual burden hours for registered SEFs, but rather provided an aggregate number. For the sake of clarity, the Commission is explicitly distinguishing in its Supporting Statement between the burden hours for registered SEFs and applicants for SEF registration.
Second, the Commission is clarifying that registered SEFs incur approximately 563 hours in connection with the information collection requirements under § 37.6(b), which requires SEFs to provide counterparties with transaction confirmations and obtain copies of the applicable underlying swap agreements. However, this requirement does not represent a new information collection burden or adjustment. Rather, the Commission is separately identifying this requirement in its Supporting Statement for the sake of clarity to allow the reader to understand more clearly the nature of a SEFâs information collection obligations. By creating a separate line item in the Table in Attachment A, the Commission does not mean to imply that SEFsâ information collection obligations under § 37.6(b) are new or not otherwise already part of the general Designation and Compliance obligations.
For calculating the total number of hours, responses, and hours per response, the Commission is aggregating the burden hours for both registered SEFs as well as applicants for SEF registration and dividing by 27 (23 registered SEFs + 4 applicants for SEF registration = 27 total respondents).
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.
Form Appendix A Core Principles and Other Requirements for Swap Execution Facilities
30-day Notice 9-23-16.pdf
Part 37 PRA Supporting Statement 0074 (09.16.16).doc
Core Principles and Other Requirements for Swap Execution Facilities