📊CFTC Notice on Information Collection for Swap Dealers and MSPs
Agency Information Collection Activities: Notice of Intent To Extend Collection 3038-0075: Protection of Collateral of Counterparties to Uncleared Swaps; Treatment of Securities in a Portfolio Margining Account in a Commodity Broker Bankruptcy
Summary
The Commodity Futures Trading Commission ("Commission" or "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 each proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments on the Commission's burden estimates associated with the requirements for swap dealers ("SDs") and major swap participants ("MSPs") to notify counterparties of their right to require segregation of initial margin, and to allow the counterparty to change that election by written notice to the SD or MSP, and to report quarterly to the counterparty that the back office procedures of the SD or MSP relating to margin and collateral requirements are in compliance with the agreement of the counterparties.
Agencies
- Commodity Futures Trading Commission
Business Impact
$$ - Med
The notice outlines compliance requirements for swap dealers and major swap participants related to margin and collateral, which directly affects financial and operational strategies for businesses engaging in swap transactions. They must adhere to the reporting obligations and inform counterparties about their rights, indicating potential administrative burdens on businesses.