[Federal Register Volume 83, Number 70 (Wednesday, April 11, 2018)]
[Notices]
[Pages 15557-15559]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-07365]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities Under OMB Review
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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SUMMARY: In compliance with the Paperwork Reduction Act (PRA), this
notice announces that the Information Collection Request (``ICR'')
abstracted below has been forwarded to the Office of Management and
Budget (``OMB'') for review and comment. The ICR describes the nature
of the information collections and its expected costs and burden.
DATES: Comments must be submitted on or before May 11, 2018.
ADDRESSES: Comments regarding the burden estimate or any other aspect
of the information collections, including suggestions for reducing the
burden, may be submitted directly to the Office of Information and
Regulatory Affairs (``OIA'') in OMB within 30 days of this notice's
publication by either of the following methods. Please identify the
comments by ``OMB Control Nos. 3038-0052 or 3038-0074.''
By email addressed to: [email protected] or
[[Page 15558]]
By mail addressed to: The Office of Information and
Regulatory Affairs, Office of Management and Budget, Attention Desk
Officer for the Commodity Futures Trading Commission, 725 17th Street
NW, Washington, DC 20503.
A copy of all comments submitted to OIRA should be sent to the
Commodity Futures Trading Commission (``CFTC'' or ``Commission'') by
either of the following methods. The copies should refer to ``OMB
Control Nos. 3038-0052 or 3038-0074.''
By mail addressed to: Christopher Kirkpatrick, Secretary
of the Commission, Commodity Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581;
By Hand Delivery/Courier to the same address; or
Through the Commission's website at http://comments.cftc.gov. Please follow the instructions for submitting
comments through the website.
Please submit your comments using only one method. A copy of the
supporting statements for the collection of information discussed
herein may be obtained by visiting http://RegInfo.gov.
All comments must be submitted in English, or if not, accompanied
by an English translation. Comments will be posted as received to
http://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.\1\
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\1\ 17 CFR 145.9.
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The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse or remove any or all of your
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 ICR will be retained in the public comment file and
will be considered as required under the Administrative Procedure Act
and other applicable laws, and may be accessible under the Freedom of
Information Act.
FOR FURTHER INFORMATION CONTACT: David Steinberg, Associate Director,
Division of Market Oversight, Commodity Futures Trading Commission,
202-418-5102 or [email protected], and refer to OMB Control Nos.
3038-0052 or 3038-0074.
SUPPLEMENTARY INFORMATION:
Title: Core Principles and Other Requirements for Designated
Contract Markets (OMB Control No. 3038-0052), and Core Principles and
Other Requirements for Swap Execution Facilities (OMB Control No. 3038-
0074). This is a request for an extension of currently approved
information collections.
Abstract: The regulations governing designated contract markets
(``DCMs'') were adopted pursuant to the requirements of the Commodity
Futures Modernization Act of 2000 (``CFMA'').\2\ Part 38 of the
Commission's regulations governs the activities of DCMs. The
information collected pursuant to part 38 is necessary for the
Commission to evaluate whether entities operating as, or applying to
become DCMs, comply with the part 38 requirements including 23 core
principles. Collection 3038-0052 was created in response to the part 38
regulatory requirements for DCMs.
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\2\ 7 U.S.C. 1 et seq.
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In June 2012, the Commission implemented core principles and other
requirements for DCMs (``DCM Final Rules'').\3\ The Commission stated
in the DCM Final Rules that 18 DCMs were registered with the
Commission.\4\ However, since publication of the DCM Final Rules, the
number of DCMs registered with the Commission has decreased from 18 to
15. Accordingly, the Commission is revising the below burden statement
for OMB Control No 3038-0052 to account for the decrease in the number
of registered DCMs.
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\3\ 77 FR 36612 (June 19, 2012).
\4\ Id. at 36663.
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Title VII of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (``Dodd-Frank Act'') added new section 5h to the
Commodity Exchange Act (``CEA'') to impose requirements concerning the
registration and operation of swap execution facilities (``SEFs''),
which the Commission has incorporated in part 37 of its regulations.
These information collections are needed for the Commission to ensure
that SEFs comply with these requirements. Among other requirements,
part 37 of the Commission's regulations imposes SEF registration
requirements for a trading platform or system, obligates SEFs to
provide transaction confirmations to swap counterparties, and requires
SEFs to comply with 15 core principles. Collection 3038-0074 was
created in response to the part 37 regulatory requirements for SEFs.
In September 2016, the Commission published a 30-Day Notice of
Intent to Renew Collection 3038-0074 (30-Day Renewal Notice) and stated
that 23 SEFs were registered with the Commission.\5\ However, since
publication of the 30-day Renewal Notice, the Commission has granted
permanent registration to two additional SEFs, for a total of 25
registered SEFs. Therefore, the Commission is revising the below burden
statement for OMB Control No. 3038-0074 to account for the increase in
the number of registered SEFs.
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\5\ 81 FR 65630 (Sept. 23, 2016).
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In January 2018, the Commission adopted regulation 9.11(b)(3)(ii)
requiring a DCM or SEF (collectively, ``exchange'') to include two
additional elements in the disciplinary or access denial notice action
provided to the National Futures Association.\6\ First, an exchange
must include the type of product (as applicable) involved in the
adverse action.\7\ Requiring an exchange to provide this information in
the disciplinary or access denial notice will provide the Commission,
market participants, the public, and other exchanges with greater
transparency concerning where market abuses originate and whether the
abuses are concentrated among certain product types. Second, an
exchange must indicate in its notice of disciplinary or access denial
actions whether the violation underlying the notice resulted in
financial harm to any customers. This requirement codifies the
clarification contained in an advisory previously issued by the
Commission (``Part 9 Advisory'').\8\ The Commission believes that the
inclusion of customer harm is essential because it cannot effectively
perform its regulatory and oversight functions without knowledge of
those instances in which brokers violate their fiduciary duty to
customers by taking advantage of customer orders and engaging in
fraudulent activity. The collections of information are mandatory.
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\6\ 83 FR 1538 (Jan. 12, 2018).
\7\ For example, a product trading on a DCM might be specified
as a July 2016 Eurodollar future; while a product trading on a SEF
may be a CDX North American High Yield Series 26 5 year.
\8\ The Part 9 Advisory permitted an exchange to file
disciplinary or access denial notices with the Commission or the
National Futures Association. 64 FR 39915 (July 23, 1999).
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An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number. The OMB control numbers for the
CFTC's regulations were published on December 30, 1981. See 46 FR 63035
(Dec. 30, 1981).
[[Page 15559]]
The Federal Register notice with a 60-day comment period soliciting
comments on this collection of information was published on January 12,
2018 (83 FR 1609). The Commission did not receive any comments
addressing the 60-day Notice.
Burden Statement: The Commission believes that the additional
burden for an exchange to add the two additional elements in the
contents of the disciplinary or access denial notice is de minimis.\9\
Accordingly, the Commission is maintaining its current estimate of the
burden for both collections as result of these reporting requirements.
However, the Commission is amending its estimates for the collections
to account for the change in the number of DCMs and SEFs currently
registered with the Commission. The current respondent burden for these
collections are estimated to be as follows:
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\9\ The Commission stated in the Notice of Proposed Rulemaking
that the burden associated with Commission regulation 9.11(b)(3)(ii)
requiring an exchange to specify the product involved in the
disciplinary or access denial action would be de minimis. 82 FR 7745
(Jan. 23, 2017). The Commission did not receive any comments
regarding this determination. The Commission estimates that it will
take an exchange just a few seconds to add the product involved in
the adverse action and whether the violation underlying the notice
resulted in financial harm to any customers.
OMB Control No. 3038-0052 (Core Principles and Other
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Requirements for Designated Contract Markets)
Number of Respondents: 15.
Estimated Annual Burden Hours per Respondent: 490.5.
Estimated Total Annual Burden Hours on Respondents: 7,357.5.
Frequency of Collection: As applicable.
OMB Control No. 3038-0074 (Core Principles and Other
Requirements for Swap Execution Facilities)
Number of Respondents: 25.
Estimated Annual Burden Hours per Respondent: 1,000.
Estimated Total Annual Burden Hours on Respondents: 25,000.\10\
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\10\ The Commission notes that collection 3038-0074 includes an
additional 1,200 burden hours for SEF registration applicants that
have not been affected by this amendment. Therefore, the total
burden for this collection is 26,200 hours.
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Frequency of Collection: As applicable.
The regulations require no new startup or operations and
maintenance costs.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: April 5, 2018.
Robert N. Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2018-07365 Filed 4-10-18; 8:45 am]
BILLING CODE 6351-01-P