Core Principles and Other Requirements for Swap Execution Facilities
Revision of a currently approved collection
No
Regular
04/16/2021
Requested
Previously Approved
36 Months From Approved
05/31/2021
739,557
880,554
22,200
26,200
0
0
In January 2018, the Commission adopted regulation 9.11(b)(3)(ii) requiring a designated contract market (DCM) or swap execution facility (SEF) (collectively, âexchangeâ) to include two additional elements in the disciplinary or access denial notice action provided to the National Futures Association. First, an exchange must include the type of product (as applicable) involved in the adverse action. Requiring an exchange to provide this information in the disciplinary or access denial notice will provide the Commission, market participants, the public, and other exchanges with greater transparency concerning where market abuses originate and whether the abuses are concentrated among certain product types. Second, an exchange must indicate in its notice of disciplinary or access denial actions whether the violation underlying the notice resulted in financial harm to any customers. The Commission believes that the inclusion of customer harm is essential because it cannot effectively perform its regulatory and oversight functions without knowledge of those instances in which brokers violate their fiduciary duty to customers by taking advantage of customer orders and engaging in fraudulent activity. The Commission concluded that the additional burden for an exchange to add the two additional elements in the contents of the disciplinary or access denial notice is de minimis and will not change the burden hours for the collection.
In April 2018, the Commission published a 30-Day Notice of Intent to Renew Collection 3038â0074 (30-Day Renewal Notice) and stated that 25 SEFs were registered with the Commission. However, since publication of the 30-Day Renewal Notice, the Commission has granted permanent registration to several additional SEFs, while others SEFs have had their registrations vacated or have been deemed dormant under part 40 of the Commission regulations, for a total of 21 registered SEFs. Therefore, the Commission is revising the below burden statement for OMB Control No. 3038â0074 to account for the decrease in the number of registered SEFs.
The Commission is amending control number 3038-0074 to account for a change in the number of SEFs currently registered with the Commission from 25 to 21. The decrease in the number of SEFs registered with the Commission will decrease the total information collection burden for 3038-0074 from 25,000 hours to 21,000 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.
(2021) 0074 Supporting Statement Renewal 1-12-21.docx
Core Principles and Other Requirements for Swap Execution Facilities