Notice2022-01259
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
January 24, 2022
Issuing agencies
Federal Reserve System
Abstract
The Board of Governors of the Federal Reserve System (Board) is adopting a proposal to extend for three years, with revision, the Report of Selected Money Market Rates (FR 2420; OMB No. 7100-0357). The revisions are effective with the September 1, 2022, as of date.
Full Text
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<title>Federal Register, Volume 87 Issue 15 (Monday, January 24, 2022)</title>
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[Federal Register Volume 87, Number 15 (Monday, January 24, 2022)]
[Notices]
[Pages 3539-3540]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-01259]
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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 extend for three years, with revision, the
Report of Selected Money Market Rates (FR 2420; OMB No. 7100-0357). The
revisions are effective with the September 1, 2022, as of date.
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 Extension for Three
Years, With Revision, of the Following Information Collection
Report title: Report of Selected Money Market Rates.
Agency form number: FR 2420.
OMB control number: 7100-0357.
Effective Date: September 1, 2022, as of date.
Frequency: Daily.
Respondents: Commercial banks, savings associations, U.S. branches
and agencies of foreign banks, international banking facilities, and
significant banking organizations representing entities actively
participating in the federal funds and/or other money markets.
Estimated number of respondents: Commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations, 181; international banking
facilities, 77.
Estimated average hours per response: Commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations, 2.0; international banking
facilities, 1.1.
Estimated annual burden hours: Commercial banks, savings
associations, U.S. branches and agencies of foreign banks, and
significant banking organizations, 90,500; international banking
facilities, 21,175.
General description of report: The FR 2420 is a transaction-based
report that collects daily liability data on federal funds purchased,
selected borrowings from non-exempt entities,\1\ Eurodollar
transactions, and time deposits and certificates of deposits (CDs) from
(1) domestically chartered commercial banks and savings associations
that have $18 billion or more in total assets as well as those that
have total assets above $5 billion but less than $18 billion and meet
the activity threshold, (2) U.S. branches and agencies of foreign banks
with total third-party assets of $2.5 billion or more, and (3)
significant banking organizations that are active participants in money
markets. The FR 2420 also collects daily data on Eurodollar
transactions from International Banking Facilities (IBFs) of the above-
referenced institutions. The FR 2420 data are used in the publication
of the Effective Federal Funds Rate (EFFR) and Overnight Bank Funding
Rate (OBFR) and in analysis of current money market conditions.
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\1\ A selected borrowing from a non-exempt entity is an
unsecured borrowing (an unsecured primary obligation undertaken by
the reporting institution as a means of obtaining funds) in U.S.
dollars from a counterparty that is a non-exempt entity as derived
from Regulation D, section 204.2(a)(vii).
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Legal authorization and confidentiality: The FR 2420 is authorized
by section 11 of the Federal Reserve Act (FRA) and section 7 of the
International Banking Act of 1978 (IBA). 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 (12 U.S.C. 248(a)). Section 7 of the IBA
provides that federal branches and agencies of foreign banks are
subject to section 11 of the FRA as if they were state member banks (12
U.S.C. 3105(c)). The obligation to respond to the FR 2420 is mandatory.
The FRBNY uses aggregate data from the FR 2420 to publish the EFFR,
OBFR, and associated statistics daily. The information provided by
individual respondents to the FR 2420 is nonpublic commercial or
financial information, which is both customarily and actually treated
as private by the respondents. Responses to the FR 2420 are therefore
accorded confidential treatment pursuant to exemption 4 of the Freedom
of Information Act (5 U.S.C. 552(b)(4)).
Current actions: On May 5, 2021, the Board published a notice in
the Federal Register (86 FR 23971) requesting public comment for 60
days on the extension, with revision, of the FR 2420. The Board
proposed to add a data item to specify the day-count convention used
for all interest rates reported on the FR 2420 reporting form. The
Board also proposed revisions to the FR 2420 instructions to allow for
more timely collection of data, improve monitoring of the transition
away from the London Interbank Offered Rate (LIBOR), strengthen the
reference rate production process, and ensure the integrity of reported
data. The proposed revisions support the Board's monetary policy and
supervisory mandates by providing greater insight into funding market
conditions in periods where conditions change rapidly, potentially
affecting policy measures taken by the Federal Reserve. The comment
period for this notice expired on July 6, 2021. The Board received two
comment letters from two banking industry associations. As more fully
explained below, the commenters opposed changing the submission
deadline for certain parts of the FR 2420 from the morning after the
transaction is completed (next-day deadline) to the evening the
transaction is completed (same-day deadline) and suggested a later
implementation date for changing the submission deadline for CD and
time deposit transactions (Part C). One comment also argued that
certain proposed additions to the FR 2420 instructions, pertaining to
securities lending, Certificate of Deposit Account Registry Service
(CDARS), and insured cash sweep transactions, would significantly alter
the scope of required reporting and increase the reporting burden. In
light of the comments, the Board has finalized the proposed revisions
to FR 2420, with certain
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modifications intended to mitigate any increase in reporting burden.
Same Day Submission Deadline for Parts A, B, and D of FR 2420
The commenters indicated that the proposed same-day deadline for
submission of data related to Federal Funds Purchased (Part A),
Eurodollars (Part B), and Selected Deposits (Part D) transactions from
the morning after the transaction is completed (next-day deadline) to
the evening the transaction is completed (same-day deadline) would not
be feasible for certain reporters and would leave insufficient time for
reporting controls and other due diligence processes. The commenters
also suggested that the proposed deadline would lead to an increase in
re-filings of the FR 2420 report, as firms would need to re-file to
correct mistakes which would also increase the reporting burden.
In consideration of the additional burden on certain reporters that
would have resulted from the proposed same-day deadline, the Board has
not finalized this proposed revision to the FR 2420. The deadline for
the above noted parts of FR 2420 will remain 7 a.m. ET on the day after
the transaction date. However, the Board will nonetheless encourage
firms to submit reports as early as possible in order to reduce
operational risk associated with the publication of reference rates.
The majority of reporting firms already submit data for these parts of
FR 2420 on the same day as the transactions are completed, and the
Board encourages other reporters to follow this convention when
practicable. Reducing risks associated with reference rates production
provides benefits to the public and financial markets, in addition to
aiding monetary policy implementation, and the Board may repropose a
same-day submission deadline in connection with a future renewal of the
FR 2420.
Submission Deadline for Part C of FR 2420
The commenters requested that implementation of the proposed
earlier next-day deadline for Part C of FR 2420 be delayed at least
until August 1, 2022, or 12 months after the release of the final form
and instructions. The commenters argue that this later implementation
date is needed for reporting firms to have sufficient time to adjust
their internal reporting and control processes to accommodate the
earlier reporting deadline. In light of the additional burden for
reporting firms, the Board will require compliance with the next-day
deadline for Part C, along with other changes to the instructions,
starting on September 1, 2022.
Changes to Instructions
One commenter opposed several additions to the FR 2420
instructions, including provisions concerning securities lending,
CDARS, and insured cash sweep transactions. Regarding securities
lending transactions collateralized by cash, the commenter inquired why
these transactions would be considered selected deposits. With respect
to CDARS and insured cash sweep transactions, the commenter asserted
that the proposed additions to the instructions may entail a
significant increase in firms' reporting burden, as the added language
appeared to require data that may not be in the possession of reporting
firms, but rather third parties. In response to the concerns raised by
the commenter, the Board will not include the proposed additions
concerning securities lending, CDARS, and insured cash sweep
transactions in the final instructions.\2\
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\2\ The commenters also noted that the proposed reporting
instructions were not made publicly available at the time the
proposal was published in the Federal Register and requested that
certain proposed changes to the instructions not be adopted as a
result. The initial Federal Register notice stated that copies of
the reporting form and instructions could be requested from the
Board's clearance officer, who was also identified in the notice. In
response to the commenters' letter, the proposed form and
instructions were provided to the commenters and posted on the
Board's public website.
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The Board adopted the remaining revisions to the FR 2420 as
proposed.
Board of Governors of the Federal Reserve System, January 19,
2022.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2022-01259 Filed 1-21-22; 8:45 am]
BILLING CODE 6210-01-P
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</html>Indexed from Federal Register on January 24, 2022.
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