[Federal Register Volume 74, Number 172 (Tuesday, September 8, 2009)]
[Notices]
[Pages 46115-46116]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-21545]


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COMMODITY FUTURES TRADING COMMISSION


Fees for Reviews of the Rule Enforcement Programs of Contract 
Markets and Registered Futures Associations

AGENCY: Commodity Futures Trading Commission.

ACTION: Establish the FY 2009 schedule of fees.

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SUMMARY: The Commission charges fees to designated contract markets and 
registered futures associations to recover the costs incurred by the 
Commission in the operation of its program of oversight of self-
regulatory organization (SRO) rule enforcement programs (17 CFR part 1 
Appendix B) (National Futures Association (NFA), a registered futures 
association, and the contract markets are referred to as SROs). The 
calculation of the fee amounts to be charged for FY 2009 is based upon 
an average of actual program costs incurred during FY 2006, 2007, and 
2008, as explained below. The FY 2009 fee schedule is set forth in the 
SUPPLEMENTARY INFORMATION. Electronic payment of fees is required.

DATES: Effective Dates: The FY 2009 fees for Commission oversight of 
each SRO rule enforcement program must be paid by each of the named 
SROs in the amount specified by no later than November 9, 2009.

FOR FURTHER INFORMATION CONTACT: Stacy Dean Yochum, Deputy Executive 
Director, Commodity Futures Trading Commission, (202) 418-5157, Three 
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581. For 
information on electronic payment, contact Angela Clark, Three 
Lafayette Centre, 1155 21st Street, NW., Washington, DC 20581, (202) 
418-5178.

SUPPLEMENTARY INFORMATION:

I. General

    This notice relates to fees for the Commission's review of the rule 
enforcement programs at the registered futures associations \1\ and 
designated contract markets (DCM), which are referred to as SROs, 
regulated by the Commission.
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    \1\ NFA is the only registered futures association.
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II. Schedule of Fees

    Fees for the Commission's review of the rule enforcement programs 
at the registered futures associations and DCMs regulated by the 
Commission:

 
------------------------------------------------------------------------
                           Entity                             Fee amount
------------------------------------------------------------------------
Chicago Board of Trade.....................................      $77,371
Chicago Mercantile Exchange................................      121,071
New York Mercantile Exchange...............................      197,535
Kansas City Board of Trade.................................       10,127
ICE Futures U.S............................................       32,683
Minneapolis Grain Exchange.................................       62,449
HedgeStreet................................................       14,375
Chicago Climate Futures Exchange...........................       12,259
U.S. Futures Exchange......................................       18,601
OneChicago.................................................        1,157
National Futures Association...............................      179,641
                                                            ------------
    Total..................................................      727,270
------------------------------------------------------------------------

III. Background Information

A. General

    The Commission recalculates the fees charged each year with the 
intention of recovering the costs of operating this Commission 
program.\2\ All costs are accounted for by the Commission's Management 
Accounting Structure Codes (MASC) system, which records each employee's 
time for each pay period. The fees are set each year based on direct 
program costs, plus an overhead factor.
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    \2\ See Section 237 of the Futures Trading Act of 1982, 7 U.S.C. 
16a and 31 U.S.C. 9701. For a broader discussion of the history of 
Commission Fees, see 52 FR 46070 (Dec. 4, 1987).
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B. Overhead Rate

    The fees charged by the Commission to the SROs are designed to 
recover program costs, including direct labor costs and overhead. The 
overhead rate is calculated by dividing total Commission-wide overhead 
direct program labor costs into the total amount of the Commission-wide 
overhead pool. For this purpose, direct program labor costs are the 
salary costs of personnel working in all Commission programs. Overhead 
costs consist generally of the following Commission-wide costs: 
indirect personnel costs (leave and benefits), rent, communications, 
contract services, utilities, equipment, and supplies. This formula has 
resulted in the following overhead rates for the most recent three 
years (rounded to the nearest whole percent): 109 percent for fiscal 
year 2006, 140 percent for fiscal year 2007, and 144 percent for fiscal 
year 2008.

C. Conduct of SRO Rule Enforcement Reviews

    Under the formula adopted in 1993 (58 FR 42643, Aug. 11, 1993), 
which appears at 17 CFR Part 1 Appendix B, the Commission calculates 
the fee to recover the costs of its rule enforcement reviews and 
examinations, based on the three-year average of the actual cost of 
performing such reviews and examinations at each SRO. The cost of 
operation of the Commission's SRO oversight program varies from SRO to 
SRO, according to the size and complexity of each SRO's program. The 
three-year averaging computation method is intended to smooth out year-
to-year variations in cost. Timing of the Commission's reviews and 
examinations may affect costs--a review or examination may span two 
fiscal years and reviews and examinations are not conducted at each SRO 
each year. Adjustments to actual costs may be made to relieve the 
burden on an SRO with a disproportionately large share of program 
costs.
    The Commission's formula provides for a reduction in the assessed 
fee if an SRO has a smaller percentage of United States industry 
contract volume than its percentage of overall Commission oversight 
program costs. This adjustment reduces the costs so that, as a 
percentage of total Commission SRO oversight program costs, they are in 
line with the pro rata percentage for that SRO of United States 
industry-wide contract volume.
    The calculation is made as follows: The fee required to be paid to 
the Commission by each DCM is equal to the lesser of actual costs based 
on the three-year historical average of costs for that DCM or one-half 
of average costs incurred by the Commission for each DCM for the most 
recent three years, plus a pro rata share (based on average trading 
volume for the most recent three years) of the aggregate of average 
annual costs of all DCMs for the most recent three years. The formula 
for calculating the second factor is: 0.5a + 0.5 vt =

[[Page 46116]]

current fee. In this formula, ``a'' equals the average annual costs, 
``v'' equals the percentage of total volume across DCMs over the last 
three years, and ``t'' equals the average annual costs for all DCMs. 
NFA has no contracts traded; hence, its fee is based simply on costs 
for the most recent three fiscal years.
    This table summarizes the data used in the calculations and the 
resulting fee for each entity:

------------------------------------------------------------------------
                                                               2009 Fee
                                      3-year    3-year % of   (lesser of
                                     average       volume     actual or
                                      actual     (percent)    calculated
                                      costs                      fee)
------------------------------------------------------------------------
Chicago Board of Trade...........      $77,371      31.0879      $77,371
Chicago Mercantile Exchange......      121,071      55.2977      121,071
New York Mercantile Exchange.....      306,092      11.2605      197,535
Kansas City Board of Trade.......       18,998       0.1591       10,127
ICE Futures U.S..................       50,712       1.8545       32,683
Minneapolis Grain Exchange.......      124,466       0.0548       62,449
North American Derivatives              28,685       0.0082       14,375
 Exchange........................
Chicago Climate Futures Exchange.       24,457       0.0076       12,259
U.S. Futures Exchange............       37,173       0.0038       18,601
OneChicago.......................        1,157       0.2367        1,157
Subtotal.........................      790,181  ...........      547,628
National Futures Association.....      179,641  ...........      179,641
                                  --------------------------------------
    Total........................      969,822  ...........      727,270
------------------------------------------------------------------------

    An example of how the fee is calculated for one exchange, the 
Minneapolis Grain Exchange, is set forth here:
    a. Actual three-year average costs equal $124,466.
    b. The alternative computation is:

(.5) ($124,466) + (.5) (.000548) ($790,181) = $62,449

    c. The fee is the lesser of a or b; in this case $62,449.
    As noted above, the alternative calculation based on contracts 
traded is not applicable to NFA because it is not a DCM and has no 
contracts traded. The Commission's average annual cost for conducting 
oversight review of the NFA rule enforcement program during fiscal 
years 2007 through 2009 was $179,641 (one-third of $538,923). The fee 
to be paid by the NFA for the current fiscal year is $179,641.
Payment Method
    The Debt Collection Improvement Act (DCIA) requires deposits of 
fees owed to the government by electronic transfer of funds (See 31 
U.S.C. 3720). For information about electronic payments, please contact 
Angela Clark at (202) 418-5178 or [email protected], or see the CFTC Web 
site at http://www.cftc.gov, specifically, http://www.cftc.gov/cftc/cftcelectronicpayments.htm.
Regulatory Flexibility Act
    The Regulatory Flexibility Act, 5 U.S.C. 601, et seq., requires 
agencies to consider the impact of rules on small business. The fees 
implemented in this release affect contract markets and registered 
futures associations. The Commission has previously determined that 
contract markets and registered futures associations are not ``small 
entities'' for purposes of the Regulatory Flexibility Act. Accordingly, 
the Chairman, on behalf of the Commission, certifies pursuant to 5 
U.S.C. 605(b) that the fees implemented here will not have a 
significant economic impact on a substantial number of small entities.

    Issued in Washington, DC on September 1, 2009, by the 
Commission.
David Stawick,
Secretary of the Commission.
[FR Doc. E9-21545 Filed 9-4-09; 8:45 am]
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