[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