Departmental Offices; Proposed Collection; Comment Request

DEPARTMENT OF THE TREASURY

Departmental Offices; Proposed Collection; Comment Request

ACTION: Notice and request for comments.

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SUMMARY: .

DATES: The Department of the Treasury, as part of its continuing effort

to reduce paperwork and respondent burden, invites the general public

and other Federal agencies to comment on continuing information

collections, as required by the Paperwork Reduction Act of 1995, Public

Law 104-13 (44 U.S.C. 3506(c)(2)(A)). Currently, the Office of

International Financial Analysis within the Department of the Treasury

is soliciting comments concerning Revisions to Foreign Currency Forms

FC-1 (OMB No. 1505-0012) Weekly Consolidated Foreign Currency Report of

Major Market Participants, FC-2 (OMB No. 1505-0010) Monthly

Consolidated Foreign Currency Report of Major Market Participants, and

FC-3 (OMB No. 1505-0014) Quarterly Consolidated Foreign Currency

Report. The reports are mandatory.

DATES: Written comments should be received on or before September 11,

1998 to be assured of consideration.

ADDRESSES: Direct all written comments to T. Ashby McCown, Director,

Office of International Financial Analysis, Department of the Treasury

1500 Pennsylvania Avenue, N.W., Room 5453, Washington, D.C. 20220,

Telephone (202) 622-2250.

FOR FURTHER INFORMATION CONTACT:

Requests for additional information or copies of the forms and

instructions should be directed to T. Ashby McCown, director, Office of

International Financial Analysis, Department of the Treasury,

Washington, D.C. 20220. Telephone (202) 622-2250, FAX (202) 622-0607.

SUPPLEMENTARY INFORMATION:

Title: Weekly Consolidated Foreign Currency Report of major market

Participants, Foreign Currency Form FC-1.

OMB Number: 1505-0012.

Title: Monthly Consolidated Foreign Currency Report of Major Market

Participants, Foreign Currency Form FC-2.

OMB Number: 1505-0010.

Title: Quarterly Consolidated Foreign Currency Report, Foreign

Currency Form FC-3.

OMB Number: 1505-0014.

Abstract: Foreign Currency Forms FC-1, FC-2, and FC-3 are required

by Public Law 93-110 (31 U.S.C. 5313 and 5321 (a)(3)), which directs

the Secretary of the Treasury to prescribe regulations reports on

foreign currency transactions conducted by a United States person or

foreign person controlled by a United States person. The regulations

governing forms FC-1, FC-2, and FC-3 are contained in Title 31 part 128

of the Code of Federal Regulations (31 CFR 128) which were published in

the Federal Register on November 2, 1993 (58 FR 58494-58497).

Current Actions: The proposed revisions in the forms and

instructions are prompted by the introduction of the new European

currency, the Euro, on January 1, 1999, and by the anticipated

discontinuation of the Federal Financial Institutions Examination

Council (FFIEC) report 035, `'Monthly Consolidated Foreign Currency

Report of Banks in the United States,'' currently filed by banks and

banking institutions in lieu of forms FC-2 and FC-3. Several modest

changes and clarifications in the forms and instructions for reports

FC-1, FC-2, and FC-3 are proposed as part of these revision requests.

1. An increase in the exemption level of the FC-3, from $1 billion

to $5 billion equivalent in foreign exchange contracts on the last

business day of any quarter of the previous year, is being proposed. It

is estimated that the overall number of respondents filing FC-2, FC-3

or FFIEC 035 reports will decline by over 40%.

2. Columns for the U.S. dollar and Euro currencies have been added

to the face of each form FC-1, FC-2, and FC-3; and to the Options

Addenda on forms FC-2 and FC-3. Special instructions for reporting the

Euro currency have been included in Section E. Definitions, Specified

Currencies of FC-1, FC-2, and FC-3. We anticipate that the current high

level of German mark contracts reported will be replaced by reported

Euro contracts. The proposal to maintain a column on the forms for mark

contracts gives respondents the option to report such contracts either

as German marks or as Euros.

3. Columns for ``All Other combined [currencies] (excludes US$ and

currencies in columns 1-5) in US$ equivalent' have been removed from

forms FC-2 and FC-3 and their Options Addenda.

4. The requirement to report the ``Memorandum-Cross Currency

Interest Rate Swaps'' has been removed from forms FC-2 and FC-3.

5. The exemption level for reporting on the Options Addendum has

been raised from $100 million to $500 million on forms FC-2 and FC-3.

In addition, the exemption level for reporting ``Net Options Position,

Delta Equivalent Value Long or (Short)'' has been raised from $100

million to $500 million on form FC-1.

6. The requirement to report the ``Currency Code'' and ``Net Delta

Equivalent Value'' of the two largest currencies on the form FC-2

Options Addendum has been removed.

7. A requirement to report all foreign currency denominated assets

and all foreign currency denominated liabilities has been added to

forms FC-2 and FC-3. This replaces a requirement to report foreign

currency denominated non-capital assets and non-capital liabilities on

forms FC-2 and FC-3; and a requirement to report the foreign currency

denominated ``Net Capital Asset (Liability) Position'' on form FC-2.

Type of Review: Revision.

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Affected Public: Business or other for-profit organizations.

Estimated Number of Respondents:

Foreign Currency Form FC-1: 35 respondents

Foreign Currency Form FC-2: 35 respondents

Foreign Currency Form FC-3: 66 respondents

Estimated Time Per Respondent:

Foreign Currency Form FC-1: One (1) hour per respondent per response

Foreign Currency Form FC-2: Four (4) hours per respondent per response

Foreign Currency Form FC-3: Eight (8) hours per respondent per response

Estimated Total Annual Burden Hours:

Foreign Currency Form FC-1: 1,820 hours, based on 52 reporting periods

per year.

Foreign Currency Form FC-2: 1,680 hours, based on 12 reporting periods

per year.

Foreign Currency Form FC-3: 2,112 hours, based on 4 reporting periods

per year.

Request for Comments: Comments submitted in response to this notice

will be summarized and/or included in the request for OMB approval. All

comments will become a matter of public record. Comments are invited

on: (1) Whether Foreign Currency Forms FC-1, FC-2, FC-3 are necessary

for the proper performance of the functions of the Department of the

Treasury, including whether the information has practical uses; (b) the

accuracy of the agency's estimate of the burden of the collection of

information; (c) ways to enhance the quality, utility, and clarity of

the information to be collected; and (d) ways to minimize the burden of

the collection of information on respondents, including the use of

automated collection techniques or other forms of information

technology.

T. Ashby McCown,

Director, Office of International Financial Anaysis.

[FR Doc. 98-18480 Filed 7-10-98; 8:45 am]

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