[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]
[Notices]
[Pages 58752-58755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-23186]


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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 or CFTC) 
is revising a system of records under the Privacy Act of 1974, CFTC-12, 
Fitness Investigations, and renaming the system ``National Futures 
Association (NFA) Applications Suite System (Exempted)'' to more 
broadly cover the activities of NFA on behalf of the Commission by 
delegated authority and also cover new data collections for swap 
dealers, major swap participants and retail foreign exchange dealers as 
required by the Dodd-Frank Wall Street Reform Act and recent Commission 
rules.

DATES: Comments must be received on or before October 30, 2014. This 
action will be effective without further notice on November 10, 2014, 
unless revised pursuant to comments received.

ADDRESSES: You may submit comments identified by ``NFA Applications 
Suite System (Exempted)'' 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 collect, maintain, 
and use information that is personally identifiable 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.

II. NFA Applications Suite System (Exempt)

    The Commission proposes to revise a system of records notice 
(SORN), CFTC-12, ``Fitness Investigations,'' and rename the notice as 
``National Futures Association (NFA) Applications Suite System 
(Exempted).'' The notice revises the description of the system and 
enhancements to more broadly cover the activities of NFA on behalf of 
the Commission by delegated authority and also covers new data 
collections for swap dealers, major swap participants and retail 
foreign exchange dealers as required by the Dodd-Frank Wall Street 
Reform Act and recent Commission rules. The revised notice also exempts 
from certain Privacy Act requirements those records in this system that 
refer, relate to or are from third-party sources related to fitness or 
other investigations of registrants or applicants for registration. 
Though subject to change with future information technology upgrades, 
the notice covers activities that are currently automated by the 
following NFA databases and applications:

[[Page 58753]]

     BASIC--Background Affiliation Status Information Center;
     Fingerprint system;
     DDOC--Disclosure Document System;
     EFC--Electronic Filing Cabinet;
     EasyFile;
     FACTS--Financial Analysis & Audit Compliance Tracking 
System;
     Fitness Image;
     NFA Audit System;
     ORS--Online Registration System;
     WinjammerTM Online Filing System.
    This single SORN will replace and rename CFTC-12, ``Fitness 
Investigations,'' and will result in retirement of two other SORNs, 
CFTC-20, ``Registration,'' and CFTC-28, ``Self-Regulatory Organization 
Disciplinary Action Files.''

    Issued in Washington, DC, on September 24, 2014, by the 
Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
CFTC-12

System Name:
    National Futures Association (NFA) Applications Suite System 
(Exempted).

Security Classification:
    Unclassified.

System Location:
    The electronic applications and databases that comprise the NFA 
Applications Suite System (Exempted) are located in two primary 
locations, NFA, 300 South Riverside, Suite 1800, Chicago, Illinois 
60606 and the CFTC, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581. Some information is also located at CFTC regional 
offices at 525 West Monroe Street, Suite 1100, Chicago, IL 60661; 140 
Broadway, 19th Floor, New York, NY 10005; and 4900 Main Street, Suite 
500, Kansas City, MO 64112.

Categories Of Individuals Covered By The System:
    Individuals who have applied or who may apply for registration as 
futures commission merchants, introducing brokers, commodity pool 
operators, commodity trading advisors, leverage transaction merchants, 
swap dealers, major swap participants, retail foreign exchange dealers 
and agricultural trade option merchants (ATOMs); individuals who file 
notices of exemption or claims for exemption from certain CFTC 
requirements; individuals who are or may become principals (as defined 
in 17 CFR 3.1); individuals who have applied or who may apply for 
registration as associated persons of the foregoing firms; and floor 
brokers and floor traders. Also individuals, who have been suspended, 
expelled, disciplined, or denied access to or by a self-regulatory 
organization (SRO), including, but not limited to, NFA or who have been 
subject to a CFTC civil or administrative action.

Categories Of Records In The System:
    Information pertaining to the fitness of the individuals or firms 
to engage in business subject to the Commission's jurisdiction, 
including but not limited to registration forms, schedules and 
supplements, fingerprint cards which are required for certain 
individual registrants as provided under CFTC rules, correspondence 
relating to registration, fitness investigations, and reports and 
memoranda reflecting information developed from various sources. This 
system includes investigatory material compiled for law enforcement 
purposes whose disclosure the Commission staff has determined could 
compromise Commission investigations, or would reveal the identity of a 
source who furnished information to the Commission under an express 
promise that the identity of the source would be held in confidence.
    Information pertaining to disciplinary or other adverse action 
taken by an SRO or the CFTC, including the name of the person against 
whom such action was taken, the action taken, and the reasons.
    Information submitted by certain individuals or firms to enable NFA 
and/or CFTC supervision and oversight of activities governed by the 
Commodity Exchange Act, such as financial statements, reports and 
notice filings; disclosure documents; and submissions by swap dealers 
and major swap participants pursuant to Commission Regulation 
3.10(a)(1)(v)(A) and information developed by the NFA and/or CFTC 
related to such information.
    Information submitted by individuals related to notices of 
exemption or claims for exemption from certain CFTC requirements and 
information developed by NFA and/or the CFTC related to the notice of 
exemption or claim for exemption.

Authority For Maintenance Of The System:
    The Commodity Exchange Act, 7 U.S.C. 1, et seq., and the rules and 
regulations promulgated thereunder.

Purpose(s):
    The records in this system are used to support the Commission's 
registration and other regulatory authority as delegated to NFA. This 
involves maintaining fitness investigation and other fitness related 
records, including investigatory material compiled for law enforcement 
purposes, non-fitness registration records, images of registration 
records, information related to disciplinary action taken by the CFTC 
and self-regulatory organizations including NFA; processing hard copy 
and electronic fingerprint cards; and maintaining a web based 
registration system, records related to notices of exemption or claims 
for exemption from certain CFTC requirements, and financial statements, 
reports, notices and other filings that enable NFA and the CFTC to 
oversee registrant activities for compliance with legal requirements.

Routine Uses Of Records Maintained In The System, Including Categories 
Of Users And The Purposes Of Such Uses:
    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 NFA rules that have been approved by the 
Commission or permitted to become effective without Commission 
approval. Disclosures must be made under circumstances authorized by 
the Commission as consistent with the Commission's regulations and 
routine uses.
    NFA generally makes available to the public on NFA Web site(s), 
including the Background Affiliation Status Information Center (BASIC), 
firm directories, registration forms, business addresses, telephone 
numbers, registration categories, biographical supplements (except for 
any confidential information on supplementary attachments to the 
forms), effective dates of registration, registration status, and 
disciplinary action taken concerning futures commission merchants, 
introducing brokers, commodity pool operators, commodity trading 
advisors, swap dealers, major swap participants and retail foreign 
exchange dealers and their associated persons. NFA also will release 
records or portions of records to any member of the public if such 
records or portions are ``public'' or ``publicly available'' under CFTC 
Regulations 1.10(g) or 145.0.
    For information not made available to the public as explained 
above, NFA may disclose information contained in those portions of this 
system of records maintained by NFA:
    (1) To any person with whom an applicant or registrant is or plans 
to be associated as an associated person or affiliated as a principal 
or with whom an individual is or plans on being associated as a swap 
associated person;
    (2) to any futures commission merchant or retail foreign exchange 
dealer with whom an introducing

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broker, whether an applicant or registrant, has or plans to enter into 
a guarantee agreement under CFTC Regulation 1.10;
    (3) to boards of trade designated as contract markets or to any 
other futures associations registered with the Commission to assist 
those organizations in carrying out their responsibilities under the 
Act, or to national securities exchanges or national securities 
associations registered with the Securities & Exchange Commission to 
assist those organizations in carrying out their responsibilities under 
the Securities Exchange Act of 1934;
    (4) to federal, state or local law enforcement or regulatory 
agencies acting within the scope of their jurisdiction or for their use 
in meeting responsibilities assigned to them under law (to the same 
extent that the Commission may disclose such registration information 
under Sections 8(e) and 8(g) of the Act);
    (5) pursuant to an order of a court of competent jurisdiction; 
except that, subpoenas and summonses covering non-public portions of 
registration records and copies of the non-public records shall be 
promptly forwarded to the Commission to enable the Commission to 
consult with NFA on how to proceed;
    (6) otherwise with the authorization of the FOI, Privacy and 
Sunshine Act Compliance staff or the General Counsel of the Commission 
or his or her designee, in accordance with CFTC Regulations 145.7(b), 
(h) and (i); the Freedom of Information Act, 5 U.S.C. 552; and the 
Privacy Act, 5 U.S.C. 552a; and
    (7) to any individual or firm, or person acting on behalf of the 
individual or firm, who seeks access to registration records, excluding 
any reports reflecting information developed from sources outside the 
Commission or NFA compiled or generated in connection with determining 
fitness for registration or affiliation as a principal, in connection 
with that individual's or firm's application for registration.
    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, which can be found in the Federal Register at 76 FR 5974 (Feb. 
2, 2011).

Disclosure To Consumer Reporting Agencies:
    None.

Policies And Practices For Storing, Retrieving, Accessing, Retaining, 
And Disposing Of Records In The System:
Storage:
    Paper records are stored in file folders and binders. Electronic 
records, including computer files, are stored on the Commission's 
network, NFA databases or applications, NFA Web site, and other 
electronic media (e.g., microfiche) as needed.

Retrievability:
    By the name of the individual or firm, an NFA identification 
number, docket number or by cross-indexing an individual's file to the 
name of the firm with which the individual is associated or affiliated 
(e.g., the name of the futures commission merchant).

Safeguards:
    Records are protected from unauthorized access and improper use 
through administrative, technical and physical security measures. 
Administrative measures includes workforce security awareness training. 
Technical security measures within the NFA and CFTC include 
restrictions on computer access to authorized individuals, required use 
of 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:
    These records are retained and disposed of in accordance with CFTC 
Records Schedules available at: www.cftc.gov/ucm/groups/public/@aboutcftc/documents/file/recordsdispositionschedule.pdf.

System Manager(s) And Address:
    For records held by the Commission related to fitness 
investigations and registration: Director, Division of Swap Dealer and 
Intermediary Oversight (DSIO), Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581. 
Surveillance Branch Chiefs in the regional offices at 525 West Monroe 
Street, Suite 1100, Chicago, IL 60661 and 140 Broadway, 19th Floor, New 
York, NY 10005. For records held by the Commission related to 
disciplinary action: Director, Division of Market Oversight (DMO), 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW., Washington, DC 20581.
    For records held by NFA: Vice President for Registration, National 
Futures Association, 300 South Riverside, Suite 1800, Chicago, Illinois 
60606.

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 FOIA/Privacy Act Request, Commodity Futures 
Trading Commission, Three Lafayette Centre, 1155 21st Street NW., 
Washington, DC 20581. Telephone (202) 418-5000.
    Individuals may also request registration information by telephone 
directly from the NFA information center at (800) 621-3570 or (312) 
781-1410. Inquiries can also be made to NFA by fax at (312) 781-1459 or 
via the Internet at [email protected]. NFA will query the 
system about current registration status and registration and 
disciplinary history, and will provide instructions on how to make 
written requests for copies of records. The Internet may be used to 
obtain information on current registration status and futures-related 
regulatory actions at www.nfa.futures.org.

Record Source Categories:
    The individual or firm on whom the record is maintained; the 
individual's employer; individuals filing reparations complaints or 
answers; Federal, state and local regulatory and law enforcement 
agencies; commodities and securities exchanges; NFA; Financial Industry 
Regulatory Authority (FINRA); foreign futures and securities 
authorities and INTERPOL; self-regulatory organizations notifying the 
Commission of disciplinary or other adverse actions taken; and other 
miscellaneous sources.

Exemptions Claimed For The System:
    The records in this system that refer, relate to or are from third-
party sources related to fitness or other investigations of applicants 
for registration or registrants are exempted by the Commission from 
certain provisions of the Privacy Act of 1974 pursuant to the terms of 
the Privacy Act, 5 U.S.C. 552a(k)(2), and the Commission's rules 
promulgated thereunder, 17 CFR 146.12. These records are exempt from 
the notification procedures, records access procedures, and record 
contest procedures set forth in the system notices of other systems of 
records, and

[[Page 58755]]

from the requirement that the sources of records in the system be 
described.

[FR Doc. 2014-23186 Filed 9-29-14; 8:45 am]
BILLING CODE 6351-01-P