[Federal Register Volume 59, Number 146 (Monday, August 1, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-18631]


[[Page Unknown]]

[Federal Register: August 1, 1994]


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COMMODITY FUTURES TRADING COMMISSION
 

Privacy Act of 1974; Modified Descriptions of Systems of Records

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of modified descriptions of systems of records.

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SUMMARY: The Commodity Futures Trading Commission (Commission) is 
modifying the descriptions of one of its existing systems of records to 
reflect its Order, set forth in a separate notice published elsewhere 
today in the Federal Register, authorizing National Futures Association 
(NFA) to take adverse registration actions with respect to floor 
brokers (FBs), floor traders (FTs) and applicants for registration in 
either category and to maintain Commission records related to such 
actions.

EFFECTIVE DATE: August 1, 1994.

FOR FURTHER INFORMATION CONTACT: Robert P. Shiner, Assistant Director, 
Division of Trading and Markets, Commodity Futures Trading Commission, 
2033 K Street NW, Washington, DC 20581, Telephone: (202) 254-3688.

SUPPLEMENTARY INFORMATION:

Introduction

    Pursuant to the Privacy Act of 1974, the Commission currently 
maintains two systems of records related to the registration of persons 
engaging in certain types of commodity-related activities: CFTC-12 
(Fitness Investigations) and CFTC-20 (Registration of Floor Brokers, 
Floor Traders, Futures Commission Merchants, Introducing Brokers, 
Commodity Trading Advisors, Commodity Pool Operators, Leverage 
Transaction Merchants and Associated Persons). As currently set forth, 
these two systems contain registration forms, related supplements and 
schedules, fingerprint cards, correspondence, and reports reflecting 
information developed from various sources relating to the registration 
or fitness of applicants, registrants and persons affiliated with 
futures commission merchants (FCMs), introducing brokers (IBs), 
commodity pool operators (CPOs), commodity trading advisors (CTAs), 
leverage transaction merchants (LTMs), FBs and FTs.1 NFA, in 
performing certain registration functions on behalf of the Commission, 
currently maintains the Commission's registration records with respect 
to FCMs, IBs, CPOs, CTAs, LTMs and their respective associated persons 
(APs), as well as certain registration records of FBs and FTs.2
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    \1\See 49 FR 45472 (November 16, 1984); 58 FR 19659 (April 15, 
1993).
    \2\Id. See also 49 FR 39593 (October 9, 1984); 49 FR 45418 
(November 16, 1984); 50 FR 34885 (August 28, 1985); 51 FR 25929 
(July 17, 1986); and 54 FR 19594 (May 8, 1989).
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    NFA's Board of Directors voted at its meetings on May 20, 1993 and 
February 24, 1994 to authorize NFA to perform for the Commission the 
function of taking adverse registration actions against FBs, FTs and 
applicants for registration in either category. Upon consideration, the 
Commission has determined to authorize NFA, effective August 1, 1994, 
to perform such registration functions in accordance with the standards 
established by the Act and rules promulgated thereunder. Because the 
maintenance of Commission records associated with those activities is 
an essential aspect of any such authority granted to NFA by the 
Commission, the Commission is also authorizing NFA to perform records 
custodianship functions with respect to adverse registration actions.
    In light of the Commission's Order authorizing NFA to perform 
certain registration functions concerning FBs, FTs and applicants and 
to become custodian of the relevant records, the Commission has 
modified its description of the CFTC-12 records system to provide for 
NFA's expanded role with respect to these registration categories. 
Because the Commission believes that authorizing NFA to perform records 
custodianship functions for adverse actions involving the FB and FT 
registration categories will assist NFA in carrying out 
responsibilities under the Commodity Exchange Act, the concomitant 
disclosure to NFA of personal information on individuals that may be 
contained in those records is permissible under the Commission's 
current routine use of such information under the Privacy Act.3 
This Notice is being published to inform the public--and, in 
particular, individuals about whom information is maintained in either 
system--as to the location of these Commission records.
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    \3\See Routine Use No. 3 at 47 FR 44830, 44831 (October 12, 
1982).
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Description of Systems of Records

CFTC-12
    Fitness Investigations.
    Records for floor brokers and floor traders with respect to matters 
commenced prior to August 1, 1994; associated persons and principals of 
leverage transaction merchants whose registration status as such was 
inactive prior to January 1, 1986; and also for all other categories 
where registration status in every applicable capacity was inactive 
prior to October 1, 1983: Division of Trading and Markets, 2033 K 
Street NW, Washington, DC 20581.
    Records for futures commission merchants, introducing brokers, 
commodity pool operators, commodity trading advisors, their respective 
associated persons and principals, with active registration status in 
any capacity on or after October 1, 1983; leverage transaction 
merchants and their associated persons and principals with active 
registration status as such on or after April 13, 1984, except as noted 
above; records for floor brokers and floor traders with respect to 
matters commenced on or after August 1, 1994: National Futures 
Association (NFA), 200 West Madison Street, Suite 1400, Chicago, 
Illinois 60606.
    (See also ``Retention and Disposal,'' infra.)
    Persons who have applied to the Commission or NFA, as applicable, 
or who may apply to NFA for registration as floor brokers, floor 
traders or as associated persons, and principals (as defined in 17 CFR 
3.1) of futures commission merchants, introducing brokers, commodity 
pool operators, commodity trading advisors and leverage transaction 
merchants.
    Information pertaining to the fitness of the above-described 
individuals to engage in business subject to the Commission's 
jurisdiction. The system contains information in computerized and 
hardcopy format including registration forms, schedules and 
supplements; fingerprint cards; correspondence relating to 
registration; and reports and memoranda reflecting information 
developed from various sources outside the CFTC or NFA. In addition, 
the system contains records of each CFTC or NFA fitness investigation.
    Sections 4f(1), 4k(4), 4k(5), 4n(l), 8a(1)-(5), 8a(10), 8a(11), 
17(o) and 19 of the Commodity Exchange Act, 7 U.S.C. 6f(1), 6k(4), 
6k(5), 6n(1), 12a(1)-(5), 12a(10), 12a(11), 21(o) and 23 (1988 and 
Supp. IV 1992).
    The routine uses applicable to all of the Commission's systems of 
records, including this system, were set forth under the caption, 
``General Statement of Routine Uses,'' in 47 FR 43759, 43760-61 
(October 4, 1982), and subsequently modified in 47 FR 44830, 44831 
(October 12, 1982). In addition, information contained in this system 
of records may be disclosed by the Commission as follows:
    1. Information contained in this system of records may be disclosed 
to any person with whom an applicant or registrant is or plans to be 
associated as an associated person or affiliated as a principal.
    2. Information contained in this system of records may be disclosed 
to any registered futures commission merchants with whom an applicant 
or registered introducing broker has or plans to enter into a guarantee 
agreement in accordance with Commission regulation 1.10 (17 CFR 1.10).
    NFA may disclose information contained in those portions of this 
system of records maintained by NFA, but any such disclosure must be 
made in accordance with Commission-approved NFA rules and under 
circumstances authorized by the Commission as consistent with the 
Commission's regulations and routine uses. The currently authorized 
circumstances are set forth in the Commission's September 28, 1984 
Order authorizing NFA to perform certain Commission registration 
functions including the maintenance of Commission records and are 
published at 49 FR 39593, 39596 (October 9, 1984), except that Item 2b 
therein was modified to eliminate the requirement of specific consent 
by the applicant or registered introducing broker to the disclosure of 
information to the futures commission merchant with whom it has or 
plans to enter a guarantee agreement. 51 FR 25930, 25931 (July 17, 
1986).
    Paper records in file folders, computer memory, computer printouts, 
index cards, microfiche.
    By the name of the individual of firm, or by assigned 
identification number. Where applicable, the NFA's computer cross-
indexes the individual's file to the name of the futures commission 
merchant, introducing broker, commodity trading advisor, commodity pool 
operator or leverage transaction merchant with which the individual is 
associated or affiliated.
    General office security measures including secured rooms or 
premises and, in appropriate cases, lockable file cabinets with access 
limited to persons whose official duties require access.
    Applications, biographical supplements, other forms, related 
documents and correspondence are maintained on the CFTC's or NFA's 
premises, as applicable, for three years after the individual's 
registration(s) or affiliation(s) as a principal becomes inactive. 
Records are then stored at an appropriate site for an additional seven 
years before being destroyed; CFTC-held records are stored in the 
Federal Records Center, and NFA-held records are to be stored either on 
NFA's premises or in appropriate fireproof off-site facilities.
    Computer records are maintained permanently on NFA's premises and 
are updated periodically as long as the individual remains pending for 
registration, registered in any capacity, or affiliated with any 
registrant as a principal. Computer records on persons who may apply 
may be maintained indefinitely. Microfiche records, when produced, are 
maintained permanently on the CFTC's or NFA's premises.
    Assistant Director, Registration Unit, Division of Trading and 
Markets, at the Commission's principal office, or his designee.
    For records held by NFA: Vice President for Registration or the 
Records Custodian, National Futures Association, 200 West Madison 
Street, Suite 1400, Chicago, Illinois 60606, or a designee.
    Individuals seeking to determine whether this system of records 
contains information about themselves, seeking access to records about 
themselves in this system of records, or contesting the content of 
records about themselves contained in this system of records, should 
address written inquiries to the FOI, Privacy and Sunshine Acts 
Compliance Staff, Commodity Futures Trading Commission, 2033 K Street 
NW, Washington, DC 20581; telephone (202) 254-3382.
    The individual or firm on whom the record is maintained; the 
individual's employer; federal, state or local regulatory and law 
enforcement agencies; commodities and securities exchanges, National 
Futures Association and National Association of Securities Dealers; 
foreign futures and securities authorities and INTERPOL; and other 
miscellaneous sources. Computer records are prepared from the forms, 
supplements, attachments and related documents submitted to the 
Commission or NFA and from information developed during the fitness 
inquiry.

    Issued in Washington, DC, on July 26, 1994 by the Commission.
Jean A. Webb,
Secretary of the Commission.
[FR Doc. 94-18631 Filed 7-29-94; 8:45 am]
BILLING CODE 6351-01-P