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Federal Register / Vol. 86, No. 4 / Thursday, January 7, 2021 / Rules and Regulations
home country regulatory and supervisory frameworks. However, JSCC
did not provide any estimate of what the expected cost of an application would be. As stated in the Proposal, the Commission based its cost estimate of $10,500 for the exempt DCO application on the significantly reduced requirements as compared to a DCO
registration application, which the Commission estimated would cost $100,000. The Commission has not received any information indicating what the amount of additional costs over $10,500 would be, nor has it revised any of the elements of the proposal that would affect the cost estimate. Therefore, the Commission is retaining the burden estimates it included in the proposal.

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1. Application for Exemption From DCO
Registration Under 39.6
Based on its experience in addressing petitions for exemption, the Commission anticipates receiving one application for exemption per year, and one request for termination of an exemption every three years.48 Burden hours and costs were estimated based on existing information collections for DCO registration and reporting, adjusted to reflect the significantly lower burden of the proposed regulations. The Commission has estimated the burden hours for this collection of information as follows:
Application for exemption, including all exhibits, supplements and amendments 49
Estimated number of respondents: 1
Estimated number of reports per respondent: 1
Average number of hours per report:
40
Estimated gross annual reporting burden: 40
Termination of exemption Estimated number of respondents: 1
Estimated number of reports per 48 The Commission has determined that one termination every three years is a more appropriate estimate than one per year, which was used in the information burden estimate for the 2018 Proposal.
49 Although the 2018 Proposal included separate burden estimates for the application and for information requested by the Commission during its review, these estimates were combined in the 2019
Proposal and in this final rule. The estimated number of applications has been revised to one per year from two in the 2018 Proposal in response to the Commissions adoption of the Alternative Compliance framework, which had not been proposed at the time of the 2018 Proposal, and which provides an alternative that could lead to a reduced number of exemption applications. See Registration with Alternative Compliance for NonU.S. Derivatives Clearing Organizations, 85 FR
67160 Oct. 21, 2020. In addition, burden estimates for reporting by exempt DCOs have been updated based on recent observations of filing frequency by existing exempt DCOs.

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respondent: 0.33
Average number of hours per report:
2 Estimated gross annual reporting burden: 0.66
Notice to clearing members of termination of exemption Estimated number of respondents: 1
Estimated number of reports per respondent: 8
Average number of hours per report:
0.1
Estimated gross annual reporting burden: 0.8
2. Reporting by Exempt DCOs The number of respondents for the daily and quarterly reporting and annual certification requirements is conservatively estimated at a maximum of seven, based on the number of existing exempt DCOs 4 and one application for exemption each year.
Reporting of specific events is expected to occur infrequently, and the estimated number of respondents reflects that not all exempt DCOs will experience events subject to the notification requirement:
Daily reporting Estimated number of respondents: 7
Estimated number of reports per respondent: 250
Average number of hours per report:
0.1
Estimated gross annual reporting burden: 175
Quarterly reporting Estimated number of respondents: 7
Estimated number of reports per respondent: 4
Average number of hours per report:
1 Estimated gross annual reporting burden: 28
Event-specific reporting Estimated number of respondents: 4
Estimated number of reports per respondent: 1
Average number of hours per report:
0.5
Estimated gross annual reporting burden: 2
Annual certification Estimated number of respondents: 7
Estimated number of reports per respondent: 1
Average number of hours per report:
1.5
Estimated gross annual reporting burden: 10.5
3. Reporting by Exempt DCOs in Accordance With Part 45
Regulation 39.6d requires an exempt DCO to report data regarding the two swaps resulting from the novation of an original swap to an SDR, if the original
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swap had been reported to an SDR
pursuant to part 45 of the Commissions regulations. The Commission is revising the information collection for part 45 to include a separate information collection under OMB Control No.
30380096. The burden for exempt DCOs reporting in accordance with part 45 is estimated to be approximately onefifth of the burden for registered DCOs because exempt DCOs will not be required to report all swaps, only those that result from the novation of original swaps that have been reported to an SDR. Consequently, the burden hours for the collection of information in this rulemaking have been estimated as follows:
Reporting in accordance with part 45
Estimated number of respondents: 7.
Estimated number of reports per respondent: 8,074 50
Average number of hours per report:
0.1
Estimated gross annual reporting burden: 5649
C. Cost-Benefit Considerations 1. Introduction Section 15a of the CEA requires the Commission to consider the costs and benefits of its actions before promulgating a regulation under the CEA or issuing certain orders.51 Section 15a further specifies that the costs and benefits shall be evaluated in light of five broad areas of market and public concern: 1 Protection of market participants and the public; 2
efficiency, competitiveness, and financial integrity of futures markets; 3
price discovery; 4 sound risk management practices; and 5 other public interest considerations. The Commission considers the costs and benefits resulting from its discretionary determinations with respect to the section 15a factors.
The baseline for the Commissions consideration of the costs and benefits of this rulemaking are: 1 The DCO
Core Principles; 3 the general provisions applicable to registered DCOs under subparts A and B of part 39; 4 Form DCO in Appendix A to part 39; and 5 part 40 of the Commissions regulations.
This rulemaking codifies certain conditions and procedures that the 50 While updating the number of reports based on recent data, the Commission discovered that the estimated number in the NPRM1987
inadvertently reflected a quarterly, rather than annual, number of reports. The estimate of 8074
reports per respondent represents the median number of swaps reported to SDRs by existing exempt DCOs during calendar year 2019.
51 7 U.S.C. 19a.

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