Notice2021-23432
Agency Information Collection Activities: Announcement of Board Approval Under Delegated Authority and Submission to OMB
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 28, 2021
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to implement the Treasury Securities and Agency Debt and Mortgage-Backed Securities Reporting Requirements (FR 2956; OMB No. 7100-NEW). The Board has adopted an implementation timeline with the first reporting under this collection beginning on September 1, 2022.
Full Text
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<title>Federal Register, Volume 86 Issue 206 (Thursday, October 28, 2021)</title>
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[Federal Register Volume 86, Number 206 (Thursday, October 28, 2021)]
[Notices]
[Pages 59716-59718]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-23432]
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FEDERAL RESERVE SYSTEM
Agency Information Collection Activities: Announcement of Board
Approval Under Delegated Authority and Submission to OMB
AGENCY: Board of Governors of the Federal Reserve System.
SUMMARY: The Board of Governors of the Federal Reserve System (Board)
is adopting a proposal to implement the Treasury Securities and Agency
Debt and Mortgage-Backed Securities Reporting Requirements (FR 2956;
OMB No. 7100-NEW). The Board has adopted an implementation timeline
with the first reporting under this collection beginning on September
1, 2022.
FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of
Governors of the Federal Reserve System, Washington, DC 20551, (202)
452-3829.
Office of Management and Budget (OMB) Desk Officer for the Federal
Reserve Board, Office of Information and Regulatory Affairs, Office of
Management and Budget, New Executive Office Building, Room 10235, 725
17th Street, NW, Washington, DC 20503, or by fax to (202) 395-6974.
SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board
authority under the Paperwork Reduction Act (PRA) to approve and assign
OMB control numbers to collections of information conducted or
sponsored by the Board. Board-approved collections of information are
incorporated into the official OMB inventory of currently approved
collections of information. The OMB inventory, as well as copies of the
PRA Submission, supporting statements, and approved collection of
information instrument(s) are available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>. These documents are also available on the Federal
Reserve Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested from the agency clearance
officer, whose name appears above.
Final Approval Under OMB Delegated Authority of the Implementation of
the Following Information Collection
Report title: Treasury Securities and Agency Debt and Mortgage-
Backed Securities Reporting Requirements.
Agency form number: FR 2956.
OMB control number: 100-NEW.
Frequency: Daily.
Respondents: Depository institutions that meet the reporting
thresholds and daily transact in trading of marketable U.S. Treasury
securities and the trading of the debt and mortgage-backed securities
(MBS) issued by agencies.
Estimated number of respondents: Treasury securities, 10; Agency
debt and MBS, 12.
Estimated average hours per response: 3.
Estimated annual burden hours: 16,500.
General description of report: The FR 2956 will collect detailed
data on depository institutions' daily transactions of marketable U.S.
Treasury securities and of the debt and MBS issued by U.S. federal
government agencies including government-sponsored enterprises
(agencies). The report will have two parts: Part 1 will collect data on
transactions in U.S. Treasury securities, and Part 2 will collect
transactions in debt and MBS issued by agencies. Depository
institutions subject to reporting under the FR 2956 collection will be
required to report all the transaction details, information, and fields
as described in the applicable Trade Reporting and Compliance Engine
(TRACE) technical documentation, FAQs, and guides located at <a href="https://www.finra.org/filing-reporting/trace">https://www.finra.org/filing-reporting/trace</a>. This information will include,
but is not limited to, the Committee on Uniform Securities
Identification Procedures (CUSIP) number or similar identifier, the
transaction size (volume), price of the transaction, date of trade
execution, time of execution, and date of
[[Page 59717]]
settlement. The Board is adopting an implementation timeline for first
reporting under this collection of September 1, 2022.
Reporting transactions will be event-generated and estimated to
occur daily. Depository institutions will be required to assess
annually whether they meet the reporting criteria. If a depository
institution meets the event-generated threshold to report based on the
average of its daily transactions from October 1 of the previous year
through September 30, the depository institution will be required to
begin to report the implemented FR 2956 effective January 1 of the
following year and continue reporting such transactions throughout that
calendar year.\1\ If a depository institution that reports on the
implemented FR 2956 falls below the threshold based on the average of
its daily transactions from October 1 of the previous year through
September 30, the depository institution will be required to continue
to report through December 31 of that year but will not be required to
report for the next calendar year.
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\1\ For the initial reporting under FR 2956 beginning on
September 1, 2022, depository institutions should assess their
transactions from October 1, 2020, through September 30, 2021, to
determine whether they will be required to report.
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Every national bank, state member bank, state non-member bank,
savings association, or U.S. branch and agency of a foreign bank filing
a Notice of Government Securities Broker or Government Dealer
Activities Form (Form G-FIN; OMB No. 7100-0224) with average daily
transaction volumes of over $100 million for U.S. Treasury securities,
or over $50 million for agency-issued debt and MBS, during the prior
fiscal year will be subject to the proposed reporting requirements.
Depository institutions subject to the reporting requirements of the
adopted FR 2956 will electronically report transactions through the
Board's data collection provider, the Financial Industry Regulatory
Authority (FINRA), utilizing its Trade Reporting and Compliance Engine
(TRACE).
Legal authorization and confidentiality: The FR 2956 is authorized
by sections 2A and 11 of the Federal Reserve Act (FRA). Section 2A of
the FRA requires that the Board and the Federal Open Market Committee
(FOMC) maintain long-run growth of the monetary and credit aggregates
commensurate with the economy's long run potential to increase
production, so as to promote effectively the goals of maximum
employment, stable prices, and moderate long-term interest rates.\2\
Section 11 of the FRA authorizes the Board to require reports from
depository institutions as it may deem necessary and authorizes the
Board to prescribe reports of liabilities and assets from insured
depository institutions to enable the Board to discharge its
responsibility to monitor and control monetary and credit
aggregates.\3\
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\2\ 12 U.S.C. 225a. Treasury Securities, agency debt, and MBS
are an important channel of monetary policy transmission. The
information to be collected by the FR 2956 is not available from
other sources, and collecting these transaction data will help the
Board and FOMC better monitor and interpret fluctuations in supply
and demand as well as interest rate movements in these key credit
aggregates.
\3\12 U.S.C. 248(a).
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The obligation to respond to the FR 2956 is mandatory. The
information collected through the FR 2956 may generally be considered
confidential under exemption 4 of the Freedom of Information Act as
confidential commercial or financial information that is both
customarily and actually treated as private.\4\
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\4\ 5 U.S.C. 552(b)(4).
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Current actions: On January 21, 2021, the Board published a notice
in the Federal Register (86 FR 6329) requesting public comment for 60
days on the implementation of the Treasury Securities and Agency Debt
and Mortgage-Backed Securities Reporting Requirements. The comment
period for this notice expired on March 22, 2021.
Detailed Discussion of Public Comments
The Board received two public comments on the proposed FR 2956. One
commenter raised a few technical questions regarding Market Participant
Identity (MPID) as applied to reporting depository institutions under
this information collection. To provide greater clarity, the Board
anticipates FINRA will assign MPIDs to depository institutions subject
to TRACE reporting and include these MPIDs in the Participant Master,
which is available to all TRACE reporting participants. Depository
institutions that are required to report and have a non-FINRA-member
subscriber MPID(s) (for contra use only) will be reassigned a reporting
MPID, which will be communicated to the corresponding covered
alternative trading system(s) (ATS). Depository institutions that
operate an ATS and are required to report will receive a reporting MPID
for the ATS distinct from that of a trading desk. Depository
institutions that are not required to report and are ATS subscribers
will continue to be identified in ATS trade reports using their current
MPIDs.
One commenter also questioned whether depository institutions would
be eligible to enter into Uniform Service Agreements with broker-
dealers and other depository institutions. The Board notes that
depository institutions would be required to enter into the
Participation Agreement, as do FINRA members, to use the TRACE system.
In addition, depository institutions may enter into, and provide to
FINRA, a Uniform Services Agreement executed with another depository
institution or broker-dealer.
In addition, the Board received two comments on the scope and
applicability of the reporting requirement. As explained in the
``General description of report'' section of this notice, only a
depository institution that files a Notice of Government Securities
Broker or Government Dealer Activities Form (Form G-FIN; OMB No. 7100-
0224) with average daily transaction volumes of over $100 million for
U.S. Treasury debt, or over $50 million for agency-issued debt and MBS,
during the prior fiscal year will be subject to the proposed reporting
requirements. Consistent with TRACE reporting by FINRA members and the
intent of this collection, reporting institutions will be required to
report all Treasury transactions that they are party to, regardless of
whether the institution is acting in a dealer capacity or whether
activity was with clients inside or outside the United States. The
reporting requirements will include all departments or divisions of a
reporting institution.
The Board received a comment requesting clarification on the
supervisory and enforcement authority of the collection. As explained
in the ``Legal authorization and confidentiality'' section of this
notice, section 11 of the Federal Reserve Act authorizes the Board to
require reports from depository institutions. This collection is being
adopted under that authority and nothing in the proposed information
collection alters or modifies the supervisory and enforcement authority
of the Federal banking agencies over the depository institutions that
are subject to the reporting. The Board is using FINRA as its data
collection provider and utilizing its TRACE platform.
The Board received a comment requesting clarification about the
dissemination of Treasury trades as a result of this proposed
information collection. The statement about inclusion of depository
institution data in TRACE data products available to market
participants referred to existing real time and aggregate data products
and not the creation of new ones.
[[Page 59718]]
The Board also received comments on the implementation timeline
and, in particular, how coordinating with FINRA on its own proposed
changes would be beneficial. Commenters noted the importance of enough
lead time prior to reporting to allow for systems to be implemented or
updated as needed. The Board understands the balance between minimizing
compliance burdens on depository institutions as well as the critical
need to gain insight into this segment of the Treasury securities and
agency-issued debt and MBS markets. As a result, the Board intends to
provide appropriate lead time to permit depository institutions the
necessary time to prepare before the initial reporting under this
collection will be required. In addition, the Board anticipates that
any modifications adopted by FINRA and incorporated in the Board's
reporting requirement in the future will also provide ample lead time
to prepare to comply with any proposed modifications. In response to
these comments, the Board is adopting an implementation timeline for
first reporting under this collection of September 1, 2022.
Board of Governors of the Federal Reserve System, October 21,
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-23432 Filed 10-27-21; 8:45 am]
BILLING CODE 6210-01-P
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</html>Indexed from Federal Register on October 28, 2021.
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