[Federal Register Volume 80, Number 209 (Thursday, October 29, 2015)]
[Notices]
[Pages 66493-66495]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-27535]


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COMMODITY FUTURES TRADING COMMISSION


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

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of 2015 schedule of fees.

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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``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 rule enforcement programs, specifically 
National Futures Association, a registered futures association, and the 
designated contract markets. The calculation of the fee amounts charged 
for 2015 by this notice is based upon an average of actual program 
costs incurred during fiscal year (``FY'') 2012, FY 2013, and FY 2014.

DATES: Effective date: Each self-regulatory organization is required to 
remit electronically the applicable fee on or before December 28, 2015.

FOR FURTHER INFORMATION CONTACT: Mary Jean Buhler, Chief Financial 
Officer, Commodity Futures Trading Commission; (202) 418-5089; Three 
Lafayette Centre, 1155 21st Street NW., Washington, DC 20581. For 
information on electronic payment, contact Jennifer Fleming; (202) 418-
5034; Three Lafayette Centre, 1155 21st Street NW., Washington, DC 
20581.

SUPPLEMENTARY INFORMATION: 

I. Background Information

A. General

    This notice relates to fees for the Commission's review of the rule 
enforcement programs at the registered

[[Page 66494]]

futures associations \1\ and designated contract markets (``DCM''), 
each of which is a self-regulatory organization (``SRO'') regulated by 
the Commission. The Commission recalculates the fees charged each year 
to cover the costs of operating this Commission program.\2\ The fees 
are set each year based on direct program costs, plus an overhead 
factor. The Commission calculates actual costs, then calculates an 
alternate fee taking volume into account, and then charges the lower of 
the two.\3\
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    \1\ National Futures Association is the only registered futures 
association.
    \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.
    \3\ 58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, app. B.
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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 generally consist 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): 161 percent for FY 2012, 
181 percent for FY 2013, and 180 percent for FY 2014.

C. Conduct of SRO Rule Enforcement Reviews

    Under the formula adopted by the Commission in 1993, 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.
    As noted above, 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 = 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 of the resulting fee for each entity:

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                                                             Actual total costs                                               Volume
                                                  --------------------------------------- 3-Year average  3-Year percent     adjusted     2015  Assessed
                                                     FY 2012      FY 2013      FY 2014     actual costs      of volume         costs            fee
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CBOE Futures.....................................      $29,278     $235,567          $--         $88,282           0.98          $50,853         $50,853
Chicago Board of Trade...........................      238,392      164,974       55,515         152,960          30.02          281,079         152,960
Chicago Mercantile Exchange......................      757,347      391,917      225,701         458,322          44.93          535,344         458,322
ELX Futures......................................       34,593      134,267  ...........          56,287           0.026          28,320          28,320
ICE Futures U.S..................................      221,813      360,223       81,176         221,071           8.56          168,880         168,880
Kansas City Board of Trade.......................       34,335          559  ...........          11,631           0.12            6,615           6,615
Minneapolis Grain Exchange.......................       60,897      220,975       47,648         109,840           0.04           55,225          55,225
NADEX North American.............................       11,293      101,252          980          37,842           0.033          19,147          19,147
New York Mercantile Exchange ....................        7,411      135,316      225,672         122,800          14.69          161,480         122,800
NYSE LIFFE US....................................       71,317       24,802  ...........          32,039           0.34           18,354          18,354
One Chicago......................................       55,755      128,599       31,196          71,850           0.241          37,568          37,568
                                                  ------------------------------------------------------------------------------------------------------
    Subtotal.....................................    1,522,431    1,898,451      667,888       1,362,924         100           1,362,865       1,119,044
National Futures Association.....................      487,328      186,499      292,102         321,976  ..............  ..............         321,976
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        Total....................................    2,009,759    2,084,950      959,990       1,684,900  ..............  ..............       1,441,020
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    An example of how the fee is calculated for one exchange, the 
Chicago Board of Trade, is set forth here:
    a. Actual three-year average costs equal $152,960.
    b. The alternative computation is: (.5) ($152,960) + (.5) (.30) 
($1,347,041) = $278,695.
    c. The fee is the lesser of a or b; in this case $152,960.
    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 2012 through 2014 was $321,976. The fee to be paid by the NFA for 
the current fiscal year is $321,976.

[[Page 66495]]

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 are as follows:

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                                                                                                2015 Fee lesser
                                                          3-Year average    3-Year percent of     of actual or
                                                           actual cost           volume          calculated fee
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CBOE Futures..........................................            $88,282              0.98              $50,853
Chicago Board of Trade................................            152,960             30.02              152,960
Chicago Mercantile Exchange...........................            458,322             44.93              458,322
ELX Futures...........................................             56,287              0.03               28,320
ICE Futures U.S.......................................            221,071              8.56              168,880
Kansas City Board of Trade............................             11,631              0.12                6,615
Minneapolis Grain Exchange............................            109,840              0.04               55,225
NADEX North American..................................             37,842              0.03               19,147
New York Mercantile Exchange..........................            122,800             14.69              122,800
NYSE LIFFE US.........................................             32,039              0.34               18,354
One Chicago...........................................             71,850              0.2412             37,568
                                                       ---------------------------------------------------------
    Subtotal..........................................          1,362,924            100               1,119,044
National Futures Association..........................            321,976  ..................            321,976
                                                       ---------------------------------------------------------
        Total.........................................          1,684,900  ..................          1,441,020
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III. 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 
Jennifer Fleming at (202) 418-5034 or [email protected], or see the 
CFTC Web site at www.cftc.gov, specifically, www.cftc.gov/cftc/cftcelectronicpayments.htm.

(Authority: 7 U.S.C. 16a)

    Issued in Washington, DC, on October 23, 2015, by the 
Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2015-27535 Filed 10-28-15; 8:45 am]
BILLING CODE 6351-01-P