[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]
[Notices]
[Pages 58814-58816]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-23496]


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COMMODITY FUTURES TRADING COMMISSION


Privacy Act of 1974 System of Records Notice

AGENCY: Commodity Futures Trading Commission

ACTION: Notice; publication of character of a revised system of 
records.

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SUMMARY: The Commodity Futures Trading Commission (Commission) is 
revising a system of records under the Privacy Act of 1974, CFTC-15, 
Large Trader Report Files (Integrated Surveillance System), and 
renaming the system ``Enterprise Surveillance, Oversight & Risk 
Monitoring System'' to be more descriptive of its contents and 
enhancements.

DATES: Comments must be received on or before October 24, 2012. This 
action will be effective without further notice on November 5, 2012, 
unless revised pursuant to comments received.

ADDRESSES: You may submit comments identified by ``Enterprise 
Surveillance, Oversight & Risk Monitoring System SORN'' by any of the 
following methods:
     Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments 
through the Web site.
     Federal eRulemaking Portal: Comments may be submitted at 
http://www.regulations.gov. Follow the instructions for submitting 
comments.
     Mail: Secretary of the Commission, Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581.
     Hand Delivery/Courier: Same as mail above.
    Please submit your comments using only one method.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
www.cftc.gov. You should submit only information that you wish to make 
available publicly. If you wish the Commission to consider information 
that you believe is exempt from disclosure under the Freedom of 
Information Act, a petition for confidential treatment of the exempt 
information may be submitted according to the procedures established in 
Sec.  145.9 of the Commission's regulations, 17 CFR 145.9.
    The Commission reserves the right, but shall have no obligation, to 
review, pre-screen, filter, redact, refuse or remove any or all of a 
submission from http://www.cftc.gov that it may deem to be 
inappropriate for publication, such as obscene language. All 
submissions that have been redacted or removed that contain comments on 
the merits of the notice will be retained in the public comment file 
and will be considered as required under all applicable laws, and may 
be accessible under the Freedom of Information Act.

FOR FURTHER INFORMATION CONTACT: Kathy Harman-Stokes, Chief Privacy 
Officer, [email protected], 202-418-6629, Office of the Executive 
Director, Commodity Futures Trading Commission, Three Lafayette Centre, 
1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. The Privacy Act

    Under the Privacy Act of 1974, 5 U.S.C. 552a, a ``system of 
records'' is defined as any group of records under the control of a 
federal government agency from which information about individuals is 
retrieved by name or other personal identifier. The Privacy Act 
establishes the means by which government agencies must collect, 
maintain, and use personally identifiable information associated with 
an individual in a government system of records.
    Each government agency is required to publish a notice in the 
Federal Register of a system of records in which the agency identifies 
and describes each system of records it maintains, the reasons why the 
agency uses the personally identifying information therein, the routine 
uses for which the agency will disclose such information outside the 
agency, and how individuals may exercise their rights under the Privacy 
Act to determine if the system contains information about them, among 
other things.

[[Page 58815]]

II. Routine Uses

    Information in the systems of records covered by this Federal 
Register notice may be disclosed in accordance with the blanket routine 
uses numbered 1 through 19 published at 76 FR 5974 (Feb. 2, 2011). 
These blanket routine uses apply to all CFTC systems of records, except 
as otherwise provided in a specific system of records notice.

III. Enterprise Surveillance, Oversight & Risk Monitoring System

    The Commission proposes to revise a system of records, CFTC-15 
``Large Trader Report Files (Integrated Surveillance System),'' and 
rename the system as ``Enterprise Surveillance, Oversight & Risk 
Monitoring System.'' The notice revises the description of the system 
and enhancements to more broadly cover the Commission's market 
oversight, and market, risk and financial surveillance activities. The 
data covered by this expanded system includes records required to 
monitor the commodity futures and swaps markets, perform various 
mission-critical commodity futures and swaps market analyses, review 
activities of registered entities for compliance with the Commodity 
Exchange Act and Commission rules, and conduct surveillance on both 
intra and inter-exchange and across side-by-side electronic trading 
platforms.
Enterprise Surveillance, Oversight & Risk Monitoring System

SYSTEM NUMBER:
    CFTC-15.

SYSTEM NAME:
    Enterprise Surveillance, Oversight & Risk Monitoring System

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    The electronic systems that comprise the Enterprise Surveillance, 
Oversight & Risk Monitoring System are located at the Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    Individuals who own, hold, or control a reportable position, volume 
threshold account, or reportable sub-account, individuals who have 
reporting, regulatory, or oversight responsibility at firms regulated 
by the Commission, and individuals requesting exemptions, as defined in 
17 CFR parts 17, 18, 19, 20, 39 and 151, including but not limited to 
individuals who process reportable positions, volume threshold 
accounts, or reportable sub-accounts and/or submit information related 
to such positions, accounts, or sub-accounts to the Commission; 
employees, officers or agents of registered derivatives clearing 
organizations (DCOs); and individuals whose cleared positions are 
reported by a DCO pursuant to Commission regulations.

CATEGORIES OF RECORDS IN THE SYSTEM: \1\
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    \1\ On July 26, 2012, the Commission published a Notice of 
Proposed Rulemaking, which proposes new rules and related forms for 
public comment that are designed to enhance the Commission's 
identification of futures and swap market participants. The proposed 
rules would leverage the Commission's existing position and 
transaction reporting programs by requiring the electronic 
submission of trader identification and market participant data on 
amended Forms 102 and 40, and on new Form 71. See Federal Register 
Vol. 77, No. 144, July 26, 2012, RIN 3038-AD31, Ownership and 
Control Reports, Forms 102/102S, 40/40S, and 71.
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    1. Reports filed by the individual who owns, holds or controls the 
reportable position, volume threshold account, or reportable sub-
account:
    a. Statements of Reporting Trader (CFTC Forms 40 and 40S).
    b. Information reported on CFTC Form 40 is described in part 18 of 
the Commission's rules and regulations.
    c. Large trader reporting form (Series 04 Form).
    2. Reports to be filed by futures commission merchants, designated 
contract markets, clearing members and other members of contract 
markets, originating firms, foreign brokers, swap dealers, and, for 
large option traders, by contract markets:
    a. Identification of ``Special Accounts'' (CFTC Form 102A).
    b. Identification of ``Volume Threshold Accounts'' (CFTC Form 
102B).
    c. Identification of ``Omnibus Volume Threshold Accounts'' and 
``Reportable Sub-Accounts'' (CFTC Form 71).
    d. Information reported on CFTC Forms 102A, 102B and 71 is 
described in part 17 of the Commission's rules and regulations.
    e. Identification and Reporting of a Swap Counterparty or Customer 
``Consolidated Account'' with a Reportable Position (CFTC Form 102S).
    f. Information reported on CFTC Form 102S is described in part 20 
of the Commission's rules and regulations.
    g. Large trader reporting form (Series 01 Form).
    3. Computer records prepared from information on the forms 
described in items (1) and (2) above.
    4. Other information submitted to the Commission by the covered 
individuals via registration channels or gathered by the Commission to 
review compliance with the Commodity Exchange Act and Commission rules.
    5. Correspondence and memoranda of telephone conversations between 
the Commission and the individual or between the Commission and other 
agencies dealing with matters of official business concerning the 
covered individual.
    6. Regulatory report filings, regulatory notice filings and 
correspondence and memoranda with individuals concerning such filings.
    7. Records containing contact information on individuals associated 
with registration applicants or registered firms or other entities, 
including business, home and cell phone numbers, email addresses and 
home addresses.
    8. Other miscellaneous information, including intra-agency 
correspondence and memoranda concerning the individual and documents 
relating to official actions taken by the Commission against the 
individual.
    9. Reports by DCOs of cleared positions of clearing member 
customers.
    10. Information related to hedge exemptions and requests for 
disaggregation and re-aggregation in accordance with Part 151 of the 
Commission's rules.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The Commodity Exchange Act, 7 U.S.C. 1 et seq., including Sections 
4g, 4i, 8, 7 U.S.C. 4t, 6g, 6i, 12, 2(d), 76 FR 43851 Section 20 and 
the rules and regulations promulgated thereunder.

PURPOSE(S):
    The records in this system are used to support market oversight, 
and market, risk and financial surveillance activities, specifically, 
monitoring the commodity futures and swaps markets, performing various 
mission-critical commodity futures, and swaps market analyses, 
reviewing activities of registered entities for compliance with the 
Commodity Exchange Act and Commission regulations, and conducting 
surveillance on both intra and inter-exchange and across side-by-side 
electronic trading platforms. Records are also used to support firm and 
registrant oversight, including compliance with the Commission's 
financial and regulatory requirements.

ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES 
OF USERS AND THE PURPOSES OF SUCH USES:
    Information concerning firms, traders and their activities may be 
disclosed and made public by the Commission to

[[Page 58816]]

the extent permitted by law when deemed appropriate to further the 
practices and policies of the Commodity Exchange Act. When not 
otherwise prohibited by law, information in this system may also be 
disclosed in accordance with the blanket routine uses numbered 1 
through 19 that appear at the beginning of the Commission's compilation 
of its systems of records notices.

DISCLOSURE TO CONSUMER REPORTING AGENCIES:
    None.

POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESS CONTROLS, 
SAFEGUARDS, RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
    The data will be collected and maintained electronically and/or in 
paper files. Paper records are stored in file folders, binders, 
computer files and computer disks. Electronic records, including 
computer files and electronically maintained data, are stored on the 
Commission's network and other electronic media as needed, such as 
encrypted hard drives.

RETRIEVABILITY:
    Files may be retrieved by firm or registrant name, individual name 
or other identifier (e.g., account number or firm number) related to 
the individual.

ACCESS CONTROLS, SAFEGUARDS:
    Records are protected from unauthorized access and improper use 
through administrative, technical and physical security measures. 
Technical security measures within CFTC include restrictions on 
computer access to authorized individuals, strong passwords that are 
frequently changed, use of encryption for certain data types and 
transfers, and regular review of security procedures and best practices 
to enhance security. Physical measures include restrictions on building 
access to authorized individuals and maintenance of records in lockable 
offices and filing cabinets.

RETENTION AND DISPOSAL:
    The records will be maintained in accordance with records 
disposition schedules approved by the National Archives and Records 
Administration. The schedules are available at www.cftc.gov.

SYSTEM MANAGER(S) AND ADDRESS:
    Chief Information Officer, Office of Data and Technology, Commodity 
Futures Trading Commission, Three Lafayette Centre, 1155 21st Street 
NW., Washington, DC 20581.

NOTIFICATION PROCEDURE:
    Individuals seeking to determine whether this system of records 
contains information about themselves or 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 inquiry to the Office of General Counsel, Paralegal 
Specialist, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581. Telephone (202) 
418-5011.

RECORD SOURCE CATEGORIES:
    Individuals, agencies, firms, Exchanges, DCOs and Designated Self-
Regulatory Organizations will provide the information for this system 
of records, which includes correspondence from individuals, agencies, 
firms, Exchanges, DCOs and Designated Self-Regulatory Organizations 
requested to provide information on the individual.

EXEMPTIONS CLAIMED FOR THIS SYSTEM:
    None.

    Issued in Washington, DC, on this 19th day of September, by the 
Commission.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012-23496 Filed 9-21-12; 8:45 am]
BILLING CODE 6351-01-P