Notice2025-12639
Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0111: Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants-Cross-Border Application of the Margin Requirements
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Published
July 8, 2025
Issuing agencies
Commodity Futures Trading Commission
Abstract
The Commodity Futures Trading Commission ("CFTC" or "Commission") is announcing an opportunity for public comment on the proposed renewal of a collection of certain information by the agency. Under the Paperwork Reduction Act ("PRA"), Federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments on the burdens associated with the information collections associated with the Commission's Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap Participants--Cross-Border Application of the Margin Requirements, including (1) requesting a comparability determination from the Commission; (2) maintaining policies and procedures for compliance with the Commission's special provisions for non-netting jurisdictions and non-segregation jurisdictions; and (3) maintaining books and records properly documenting that all of the requirements of the special provisions for non-netting jurisdictions and non-segregation jurisdictions are satisfied.
Full Text
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<title>Federal Register, Volume 90 Issue 128 (Tuesday, July 8, 2025)</title>
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[Federal Register Volume 90, Number 128 (Tuesday, July 8, 2025)]
[Notices]
[Pages 30055-30058]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-12639]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Extend Collection 3038-0111: Margin Requirements for Uncleared Swaps
for Swap Dealers and Major Swap Participants--Cross-Border Application
of the Margin Requirements
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or
``Commission'') is announcing an opportunity for public comment on the
proposed renewal of a collection of certain information by the agency.
Under the Paperwork Reduction Act (``PRA''), Federal agencies are
required to publish notice in the Federal Register concerning each
proposed collection of information, including each proposed extension
of an existing collection of information, and to allow 60 days for
public comment. This notice solicits comments on the burdens associated
with the information collections associated with the Commission's
Margin Requirements for Uncleared Swaps for Swap Dealers and Major Swap
Participants--Cross-Border Application of the Margin Requirements,
including (1) requesting a comparability determination from the
Commission; (2) maintaining policies and procedures for compliance with
the Commission's special provisions for non-netting jurisdictions and
non-segregation jurisdictions; and (3) maintaining books and records
properly documenting that all of the requirements of the special
provisions for non-netting jurisdictions and non-segregation
jurisdictions are satisfied.
DATES: Comments must be submitted on or before September 8, 2025.
ADDRESSES: You may submit comments, identified by ``Margin Requirements
for Uncleared Swaps for Swap Dealers and Major Swap Participants--
Cross-Border Application of the Margin Requirements,'' Collection
Number 3038-0111, by any of the following methods:
<bullet> The Agency's website, at <a href="https://comments.cftc.gov/">https://comments.cftc.gov/</a>.
Follow the instructions for submitting comments through the website.
<bullet> Mail: Christopher Kirkpatrick, Secretary of the
Commission, Commodity Futures Trading Commission, Three Lafayette
Centre, 1155 21st Street NW, Washington, DC 20581.
<bullet> Hand Delivery/Courier: Same as ``Mail'' above.
Please submit your comments using only one method. All comments
must be submitted in English, or if not, accompanied by an English
translation. Comments will be posted as received to <a href="https://www.cftc.gov">https://www.cftc.gov</a>.
FOR FURTHER INFORMATION CONTACT: Dina Moussa, Special Counsel, Market
Participants Division, at (202) 418-5696, or <a href="/cdn-cgi/l/email-protection#91f5fcfee4e2e2f0d1f2f7e5f2bff6fee7"><span class="__cf_email__" data-cfemail="3c585153494f4f5d7c5f5a485f125b534a">[email protected]</span></a>; or
Catherine Brescia, Attorney Advisor, Market Participants Division,
(202) 418-6236, or <a href="/cdn-cgi/l/email-protection#3a5958485f4959535b7a595c4e59145d554c"><span class="__cf_email__" data-cfemail="c6a5a4b4a3b5a5afa786a5a0b2a5e8a1a9b0">[email protected]</span></a>, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC
20581; and refer to OMB Control No. 3038-0111.
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq.,
Federal agencies must obtain approval from the Office of Management and
Budget (``OMB'') for each collection of information they conduct or
sponsor. ``Collection of Information'' is defined in 44 U.S.C. 3502(3)
and 5 CFR 1320.3 and includes agency requests or
[[Page 30056]]
requirements that members of the public submit reports, keep records,
or provide information to a third party. Section 3506(c)(2)(A) of the
PRA, 44 U.S.C. 3506(c)(2)(A), requires Federal agencies to provide a
60-day notice in the Federal Register concerning each proposed
collection of information, including each proposed extension of an
existing collection of information, before submitting the collection to
OMB for approval. To comply with this requirement, the CFTC is
publishing notice of the proposed extension of the existing collections
of information listed below. 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.
Title: Margin Requirements for Uncleared Swaps for Swap Dealers and
Major Swap Participants--Cross-Border Application of the Margin
Requirements (OMB Control No. 3038-0111). This is a request for an
extension of currently approved information collections.
Abstract: Section 731 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act \1\ amended the Commodity Exchange Act
(``CEA'') \2\ to add, as Section 4s(e) thereof, provisions concerning
the setting of initial and variation margin requirements for swap
dealers (``SDs'') and major swap participants (``MSPs'').\3\ Each SD
and MSP for which there is a Prudential Regulator, as defined in
Section 1a(39) of the CEA,\4\ must meet margin requirements established
by the applicable Prudential Regulator, and each SD and MSP for which
there is no Prudential Regulator (``Covered Swap Entities'' or
``CSEs'') must comply with the Commission's Regulations governing
margin on all swaps that are not centrally cleared.
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\1\ Public Law 111-023, 124 Stat. 1376 (2010).
\2\ 7 U.S.C. 1 et seq.
\3\ 7 U.S.C. 6s(e).
\4\ 7 U.S.C. 1a(39).
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With regard to the cross-border application of the Commission's
margin rules, Section 2(i) \5\ of the CEA provides the Commission with
express authority over activities outside the United States relating to
swaps when certain conditions are met. Section 2(i) of the CEA provides
that the provisions of the CEA relating to swaps that were enacted by
the Wall Street Transparency and Accountability Act of 2010 (including
any rule prescribed or regulation promulgated under that Act), shall
not apply to activities outside the United States unless those
activities (1) have a direct and significant connection with activities
in, or effect on, commerce of the United States or (2) contravene such
rules or regulations as the Commission may prescribe or promulgate as
are necessary or appropriate to prevent the evasion of any provision of
the CEA that was enacted by the Wall Street Transparency and
Accountability Act of 2010.
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\5\ 7 U.S.C. 2(i).
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On May 31, 2016, the Commission published the Final Rule addressing
the cross-border application of its margin requirements for uncleared
swaps applicable to CSEs.\6\ The Final Rule contains a collection of
information under Commission Regulation 23.160(c) \7\ regarding
requests for comparability determinations, and information collections
regarding non-netting jurisdictions,\8\ and non-segregation
jurisdictions.\9\
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\6\ See Margin Requirements for Uncleared Swaps for Swap Dealers
and Major Swap Participants-Cross-Border Application of the Margin
Requirements, 81 FR 34818 (May 31, 2016).
\7\ 17 CFR 23.160(c).
\8\ As used in the adopting release, a ``non-netting
jurisdiction'' is a jurisdiction in which a CSE cannot conclude,
with a well-founded basis, that the netting agreement with a
counterparty in that foreign jurisdiction meets the definition of an
``eligible master netting agreement'' set forth in Commission
Regulation 23.151, and as described in Section II.B.5.b of the
adopting release.
\9\ As used in the adopting release, a ``non-segregation
jurisdiction'' is a jurisdiction where inherent limitations in the
legal or operational infrastructure of the foreign jurisdiction make
it impracticable for the CSE and its counterparty to post initial
margin pursuant to custodial arrangements that comply with the
Commission's margin rules, as further described in Section II.B.4.b
of the adopting release.
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Under Commission Regulation 23.160(c)(1),\10\ a CSE that is
eligible for substituted compliance, or a foreign regulatory agency
that has direct supervisory authority over one or more CSEs and that is
responsible for administering the relevant foreign jurisdiction's
margin requirements, may request, individually or collectively, that
the Commission make a determination that a CSE that complies with
margin requirements in the relevant foreign jurisdiction would be
deemed to be in compliance with the Commission's corresponding margin
rule (a ``comparability determination''). Once a comparability
determination is made for a jurisdiction, it applies for all entities
or transactions in that jurisdiction to the extent provided in the
comparability determination, as approved by the Commission and subject
to any conditions specified by the Commission. All CSEs, regardless of
whether they rely on a comparability determination, remain subject to
the Commission's examination and enforcement authority.
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\10\ 17 CFR 23.1609(c)(1).
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Commission Regulation 23.160(c)(2) \11\ requires that applicants
for a comparability determination provide copies of the relevant
foreign jurisdiction's margin requirements and descriptions of their
objectives, how they differ from the margin policy framework for non-
cleared, bilateral derivatives set forth by the Basel Committee on
Banking Supervision and the International Organization of Securities
Commissions, and how they address the elements of the Commission's
margin requirements. The applicant must identify the specific legal and
regulatory provisions of the foreign jurisdiction's margin requirements
that correspond to each element and, if necessary, whether the relevant
foreign jurisdiction's margin requirements do not address a particular
element.
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\11\ 17 CFR 23.1609(c)(2).
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Commission Regulation 23.160(d) \12\ includes a special provision
for non-netting jurisdictions. This provision allows CSEs that cannot
conclude after sufficient legal review with a well-founded basis that
the netting agreement with a counterparty in a foreign jurisdiction
meets the definition of an ``eligible master netting agreement'' set
forth in Commission Regulation 23.151 \13\ to nevertheless net
uncleared swaps in determining the amount of margin that they post,
provided that certain conditions are met. In order to avail itself of
this special provision, a CSE must treat the uncleared swaps covered by
the agreement on a gross basis in determining the amount of initial and
variation margin that it must collect, but may net those uncleared
swaps in determining the amount of initial and variation margin it must
post to the counterparty, in accordance with the netting provisions of
Commission Regulations 23.152(c) and 23.153(d).\14\ A CSE that enters
into uncleared swaps in ``non-netting'' jurisdictions in reliance on
this provision must have policies and procedures ensuring that it
complies with the special provision's requirements, and maintain books
and records properly documenting that all of the requirements of this
exception are satisfied.
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\12\ 17 CFR 23.160(d).
\13\ 17 CFR 23.151.
\14\ 17 CFR 23.152(c); 17 CFR 23.153(d).
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Commission Regulation 23.160(e) \15\ includes a special provision
for non-segregation jurisdictions that allows non-U.S. CSEs that are
Foreign Consolidated Subsidiaries (``FCS'') (as
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defined in Commission Regulation 23.160(a)(1)) \16\ and foreign
branches of U.S. CSEs to engage in swaps in foreign jurisdictions where
inherent limitations in the legal or operational infrastructure make it
impracticable for the CSE and its counterparty to post collateral in
compliance with the custodial arrangement requirements of the
Commission's margin rules, subject to certain conditions. In order to
rely on this special provision, a FCS or foreign branch of a U.S. CSE
is required to satisfy all of the conditions of the rule, including
that (1) inherent limitations in the legal or operational
infrastructure of the foreign jurisdiction make it impracticable for
the CSE and its counterparty to post any form of eligible initial
margin collateral for the uncleared swap pursuant to custodial
arrangements that comply with the Commission's margin rules; (2)
foreign regulatory restrictions require the CSE to transact in
uncleared swaps with the counterparty through an establishment within
the foreign jurisdiction and do not permit the posting of collateral
for the swap in compliance with the custodial arrangements of
Commission Regulation 23.157 \17\ in the United States or a
jurisdiction for which the Commission has issued a comparability
determination under Commission Regulation 23.160(c) with respect to
Commission Regulation 23.157; (3) the CSE's counterparty is not a U.S.
person and is not a CSE, and the counterparty's obligations under the
uncleared swap are not guaranteed by a U.S. person; (4) the CSE
collects initial margin in cash on a gross basis, and posts and
collects variation margin in cash, in accordance with specific
requirements; (5) for each broad risk category, as set out in
Commission Regulation 23.154(b)(2)(v),\18\ the total outstanding
notional value of all uncleared swaps in that broad risk category, as
to which the CSE is relying on under Commission Regulation
23.160(e),\19\ may not exceed 5 percent of the CSE's total outstanding
notional value for all uncleared swaps in the same broad risk category;
(6) the CSE has policies and procedures ensuring that it is in
compliance with the requirements of this provision; and (7) the CSE
maintains books and records properly documenting that all of the
requirements of this provision are satisfied.
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\15\ 17 CFR 23.160(e).
\16\ 17 CFR 23.160(a)(1).
\17\ 17 CFR 23.157.
\18\ 17 CFR 23.154(b)(2)(v).
\19\ 17 CFR 23.160.
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With respect to the collection of information, the CFTC invites
comments on:
<bullet> Whether the proposed collections of information are
necessary for the proper performance of the functions of the
Commission, including whether the information will have a practical
use;
<bullet> The accuracy of the Commission's estimate of the burdens
of the proposed collections of information, including the validity of
the methodology and assumptions used;
<bullet> Ways to enhance the quality, usefulness, and clarity of
the information to be collected; and
<bullet> Ways to minimize the burdens of collection of information
on those who are to respond, including through the use of appropriate
automated electronic, mechanical, or other technological collection
techniques or other forms of information technology (e.g., permitting
electronic submission of responses).
You should submit 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
Sec. 145.9 of the Commission's regulations.\20\
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\20\ 17 CFR 145.9. See Confidential Information and Commission
Records and Information, 74 FR 17395 (Apr. 15, 2009).
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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 <a href="https://www.cftc.gov">https://www.cftc.gov</a> 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 information collection requests 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.
<bullet> Burden Statement--Information Collection for Comparability
Determinations:
The Commission estimates that 50 CSEs may request a comparability
determination pursuant to Commission Regulation 23.160(c).\21\ The
Commission notes that any foreign regulatory agency that has direct
supervisory authority over one or more CSEs and that is responsible for
administering the relevant foreign jurisdiction's margin requirements
may also apply for a comparability determination. However, once a
comparability determination is made for a jurisdiction, it will apply
for all entities or transactions in that jurisdiction to the extent
provided in the determination, as approved by the Commission. To date,
the Commission has issued a comparability determination for 3
jurisdictions.\22\ Accordingly, the Commission estimates that it will
receive requests from the 13 remaining jurisdictions within the Group
of 20 (``G20''),\23\ in addition to Switzerland. The number of burden
hours associated with such requests is estimated to be 40 hours.
Accordingly, the respondent burden for this collection is estimated to
be as follows:
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\21\ Currently, there are 107 swap entities registered with the
Commission. Of the 107 Commission-registered swap entities, the
Commission estimates that 50 are CSEs not subject to Prudential
Regulation; and are therefore subject to the Commission's margin
rules. Since the last PRA renewal of this information collection,
the number of CSEs has decreased from 53 to 50. Therefore, the
Commission is revising its estimate in light of the current number
of Commission-registered CSEs.
\22\ See Comparability Determination for Japan: Margin
Requirements for Uncleared Swaps for Swap Dealers and Major Swap
Participants, 81 FR 63376 (Sep. 15, 2016); Comparability
Determination for the European Union: Margin Requirements for
Uncleared Swaps for Swap Dealers and Major Swap Participants, 82 FR
48394 (Oct. 18, 2017); Comparability Determination for Australia:
Margin Requirements for Uncleared Swaps for Swap Dealers and Major
Swap Participants, 84 FR 12908 (Apr. 3, 2019). The Commission
subsequently amended its comparability determination for Japan. See
Amendment to Comparability Determination for Japan: Margin
Requirements for Uncleared Swaps for Swap Dealers and Major Swap
Participants, 84 FR 12074 (Apr. 1, 2019).
\23\ The G20 is comprised of foreign leaders and central bank
managers from the top 19 countries with the largest economies along
with the European Union.
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Estimated Number of Respondents: 14.
Estimated Number of Responses per Respondent: 1.
Estimated Average Burden Hours per Respondent: 40.
Estimated Total Annual Burden Hours: 560.
Frequency of Collection: Once.
There are no capital costs or operating and maintenance costs
associated with this collection.
<bullet> Burden Statement--Information Collection for Non-Netting
Jurisdictions:
The Commission is revising its estimate of the burden for this
collection to reflect the current number of registrants subject to the
Commission's margin requirements for uncleared swaps. Specifically, the
Commission estimates that approximately 50 CSEs may rely on Commission
Regulation 23.160(d).\24\ Furthermore, the
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Commission estimates that these CSEs would incur an average of 10
annual burden hours to maintain books and records properly documenting
that all of the requirements of this exception are satisfied (including
policies and procedures ensuring compliance). Accordingly, the
respondent burden for this collection is estimated to be as follows:
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\24\ See supra n.21. Because all of these CSEs are eligible to
use the special provision for non-netting jurisdictions, the
Commission estimates that 50 CSEs may rely on Commission Regulation
23.160(d). Since the prior renewal of this information collection,
the number of CSEs decreased from 53 to 50.
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Estimated Number of Respondents: 50.
Estimated Average Burden Hours per Respondent: 10.
Estimated Total Annual Burden Hours: 500.
Frequency of Collection: Once; As needed.
There are no capital costs or operating and maintenance costs
associated with this collection.
<bullet> Burden Statement--Information Collection for Non-
Segregation Jurisdictions:
The Commission estimates that there are eight jurisdictions for
which the first two conditions specified above for non-segregation
jurisdictions are satisfied and where FCSs and foreign branches of U.S.
CSEs that are subject to the Commission's margin rules may engage in
swaps. The Commission estimates that approximately 12 FCSs or foreign
branches of U.S. CSEs may rely on Commission Regulation 23.160(e) in
some or all of these jurisdictions. The Commission estimates that each
FCS or foreign branch of a U.S. CSE relying on this provision would
incur an average of 20 annual burden hours to maintain books and
records properly documenting that all of the requirements of this
provision are satisfied (including policies and procedures for ensuring
compliance) with respect to each jurisdiction as to which they rely on
the special provision. Thus, based on the estimate of eight non-
segregation jurisdictions, the Commission estimates that each of the
approximately 12 FCSs and foreign branches of U.S. CSEs that may rely
on this provision will incur an estimated 160 average burden hours per
year (i.e., 20 average burden hours per jurisdiction multiplied by 8).
Accordingly, the respondent burden for this collection is estimated to
be as follows:
Estimated Number of Respondents: 12.
Estimated Average Burden Hours per Respondent: 160.
Estimated Total Annual Burden Hours: 1,920.
Frequency of Collection: Once; 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: July 3, 2025.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2025-12639 Filed 7-7-25; 8:45 am]
BILLING CODE 6351-01-P
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