FR 2024-29457

The recent notice from the Commodity Futures Trading Commission (CFTC) outlines an Information Collection Request (ICR) under the Paperwork Reduction Act of 1995. The focus is on extending an existing collection related to swap data access provisions mandated by the Dodd-Frank Act. Public feedback on this request is being solicited until January 15, 2025. The extension impacts four respondents, each with an average annual burden of 19,679.5 hours, resulting in a total burden of 78,718 hours. Additionally, there are ongoing costs of about $2 million per respondent, though there are no initial start-up costs involved.

Significant Issues and Concerns

Several issues within this notice merit attention:

1. Lack of Specific Information: The document fails to clearly specify the exact nature of the data being collected. This lack of clarity could hinder meaningful public comments, as stakeholders may not fully understand what is being asked of them or the implications of the collection.

2. High Burden Hours: An estimated average of 19,679.5 hours per respondent is notably high. This could indicate inefficiencies in the process or errors in estimating the burden, raising concerns over the calculation's accuracy and the burden placed on respondents.

3. Cost Transparency: There is a lack of detailed explanation regarding the ongoing $2 million operating costs per respondent. Without a clear breakdown, it is challenging to assess whether this expenditure is justified or if there are any areas where efficiency could be improved.

4. Complex Language: The notice employs regulatory language that may not be easily understood by individuals without a background in regulation. This could make it difficult for a broader audience to engage with the document and participate effectively in commenting.

5. Potential Bias in Selection: The document does not clarify if there is any bias in how respondents have been selected, or if there is favoritism towards certain organizations. This raises potential concerns about fairness and transparency in the selection process.

Public and Stakeholder Impact

Broad Public Impact: The lack of detailed information and the complex language could limit public engagement. This might reduce the opportunity for critical feedback that could help refine and improve the process or collection procedures.

Stakeholder Impact: For the four identified respondents, the significant time (19,679.5 hours) and financial commitment ($2 million) present a substantial burden. If these estimates are accurate, stakeholders need assurance that these resources are utilized effectively to improve oversight and governance, as stipulated by the Dodd-Frank Act.

Conclusion

This notice from the CFTC raises critical questions about transparency, efficiency, and stakeholder engagement. While the extension is part of regulatory obligations under the Dodd-Frank Act, the potential excessive burden placed on respondents alongside the need for more transparent information poses significant concerns. Addressing these issues could lead to more informed public participation and ensure that regulatory practices are efficient, fair, and effectively serving their intended purpose.

The document from the Commodity Futures Trading Commission outlines an Information Collection Request (ICR) that has been sent to the Office of Information and Regulatory Affairs for review. Financial aspects play a significant role in understanding the implications of this ICR, particularly concerning the ongoing operating costs associated with the information collection.

Ongoing Operating Costs

The document indicates that while there are no start-up costs associated with this collection, there is an average of $2 million in ongoing operating costs per respondent. This considerable financial burden highlights an area of concern that warrants further scrutiny. Without detailed insight into what these ongoing costs entail, it raises questions about efficiency and whether these expenses are justified or could be reduced. Understanding the specifics of these costs could help identify potential inefficiencies or areas for cost reduction.

Relation to Identified Issues

One of the primary issues identified is the excessively high estimated average burden hours per respondent, which is pegged at 19,679.5 hours. This might indicate inefficiencies in the process and could be reflective of the high ongoing operating costs. It raises the question of whether the $2 million costs are a direct consequence of the extensive time required and whether the process could be streamlined to reduce both time and financial expenditure.

Another issue is the lack of detailed breakdown for the financial figures presented, which could obscure areas of potential wasteful spending. Clearer financial delineation would allow for better public and regulatory scrutiny, ensuring that funds are being utilized effectively and efficiently. This ties back to the overall transparency of the ICR process, emphasizing the need for detailed financial reporting.

In summary, the document outlines significant financial allocations related to the ongoing operating costs for respondents but lacks transparency in detailing these costs. This raises potential issues concerning the efficiency and necessity of the financial burdens imposed, suggesting a need for clearer breakdowns and potential cost reductions.