Overview
Title
Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0074: Core Principles and Other Requirements for Swap Execution Facilities
Agencies
ELI5 AI
The Commodity Futures Trading Commission (CFTC) wants to make sure places where people trade swaps, called SEFs, are following the rules. They are asking people to share their thoughts about this by March 22, 2021, to improve how they collect information about these trading places.
Summary AI
The Commodity Futures Trading Commission (CFTC) is seeking public comments on the proposed renewal of information collection related to Swap Execution Facilities (SEFs). This collection is part of the regulatory requirements set by the Dodd-Frank Act to ensure SEFs comply with specific standards. The CFTC aims to revise its current estimates on the number of registered SEFs and invites feedback on various aspects of the information collection process, including its necessity and potential improvements. Comments can be submitted through various methods by March 22, 2021.
Abstract
The Commodity Futures Trading Commission (CFTC) 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 proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments, as described below, on the proposed Information Collection Requests ("ICR") titled: OMB Control Number 3038-0074 and Part 37, Relating to Core Principles and Other Requirements for Swap Execution Facilities.
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AnalysisAI
The Federal Register document issued by the Commodity Futures Trading Commission (CFTC) seeks public comments on the proposed renewal of information collection requirements related to Swap Execution Facilities (SEFs). Under the Paperwork Reduction Act (PRA), federal agencies must seek approval from the Office of Management and Budget (OMB) for information they collect from the public. This process includes inviting public comments to assess the necessity and effectiveness of such collections. The current notice reflects adjustments in the number of registered SEFs and invites input on various information collection aspects, including its potential burden on respondents.
General Summary
The document primarily serves to announce the CFTC's intent to renew the information collection under OMB Control Number 3038-0074, associated with SEFs. SEFs are trading systems regulated to ensure compliance with core principles mandated by the Dodd-Frank Act. The Commission is updating its burden estimates due to changes in the number of registered SEFs and welcomes public input on this matter until March 22, 2021. The notice is part of a broader regulatory framework to ensure transparency and accountability in the financial markets.
Significant Issues or Concerns
A prominent concern within the document is the heavy use of legal and technical jargon, including terms like "SEFs," references to sections of the Dodd-Frank Act, and various legal codes. Such language may be inaccessible to individuals without a legal or financial background. The lack of definitions and explanations for these terms could hinder public understanding and participation in the comment process.
Moreover, while the document mentions that some information might be exempt from disclosure under the Freedom of Information Act, it fails to clarify the criteria for such exemptions. This could create uncertainty for those interested in submitting comments, particularly regarding what information can be shared confidentially or publicly.
The "burden" of information collection is another term used without clear explanation, leaving room for ambiguity about whether it solely pertains to time or involves other factors like cost and resource allocation.
Impact on the Public
For the general public, this document highlights an administrative procedure that affects how SEFs are regulated within the financial system. While the average individual may not be directly involved with SEFs, the effectiveness of such regulatory practices influences the broader economic environment, potentially affecting financial market stability and integrity.
However, the complexity of the language and lack of straightforward explanations could inhibit broader public engagement, limiting input from individuals who might provide valuable perspectives on the proposed information collection.
Impact on Specific Stakeholders
Specific stakeholders, likely those engaged directly with SEFs, including financial institutions and trading platforms, may experience more immediate impacts from this notice. The proposed changes to the information collection requirement could alter the operational procedures or increase administrative duties for these entities. However, the document also provides a platform for stakeholders to express concerns or suggest improvements, which might lead to more efficient regulatory practices.
On a positive note, by inviting public comments, the CFTC demonstrates transparency and openness to feedback, which could lead to refinements that better accommodate stakeholders' needs while maintaining regulatory intent. Nonetheless, accessible communication remains crucial to facilitate effective participation and ensure stakeholders are informed adequately.
Issues
• The document refers to the Paperwork Reduction Act (PRA) and its requirements but does not clearly explain what the PRA entails, which may be complex for those unfamiliar with the act.
• The document uses legal and technical jargon such as 'SEFs', 'TVII of the Dodd-Frank Act', '5 CFR 1320.3', and '44 U.S.C. 3501 et seq.' without providing definitions or explanations, making it potentially difficult for a layperson to understand.
• The document references specific sections of laws and CFR (Code of Federal Regulations) which may not be easily accessible or understandable without a legal background.
• There is a mention of certain information being exempt from disclosure under the Freedom of Information Act, but the criteria for exemption are not defined or clarified.
• The term 'burden' is used in relation to respondents but is not explicitly defined, which may lead to confusion about whether it refers only to time or includes other types of burdens.
• The document lists contact names and emails for further information but does not specify alternative communication methods for those who may not have access to email.
• There is a lack of clarity on how public comments will be used or evaluated in the renewal process for the information collection.
• The document assumes familiarity with specific regulatory and legal processes, which may exclude or limit participation from members of the public unfamiliar with these processes.