[Federal Register Volume 84, Number 64 (Wednesday, April 3, 2019)]
[Notices]
[Pages 13008-13009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06444]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Revise Collection 3038-0052; Core Principles and Other Requirements for 
Designated Contract Markets

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (``Commission'') is 
announcing an opportunity for public comment on the proposed revision 
of a collection of certain information by the agency. Under the 
Paperwork Reduction Act (``PRA''), Federal agencies are required to 
publish notice in the Federal Register concerning each proposed 
collection of information, including proposed revision of an existing 
collection of information, and to allow 60 days for public comment. 
This notice solicits comments on the revision of estimates contained in 
information collection requirements related to the recent amendment of 
the timing and scope of a report required to be filed by self-
regulatory organizations (SROs) pursuant to Commission Regulation 1.52.

DATES: Comments must be submitted on or before June 3, 2019.

ADDRESSES: You may submit comments, identified by ``OMB Control No. 
3038-0052'' by any of the following methods:
     The Agency's website, at http://comments.cftc.gov/. Follow 
the instructions for submitting comments through the website.
     Mail: Christopher Kirkpatrick, 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 http://www.cftc.gov.

FOR FURTHER INFORMATION CONTACT: Joshua Beale, Associate Director, 
Division of Swap Dealer and Intermediary Oversight, Commodity Futures 
Trading Commission, (202) 418-5447; email: [email protected].

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq., 
Federal agencies must obtain approval from the Office of Management and 
Budget (``OMB'') for each collection of information they conduct or 
sponsor. ``Collection of Information'' is defined in 44 U.S.C. 3502(3) 
and 5 CFR 1320.3 and includes agency requests or requirements that 
members of the public submit reports, keep records, or provide 
information to a third party. Section 3506(c)(2)(A) of the PRA, 44 
U.S.C. 3506(c)(2)(A), requires Federal agencies to provide a 60-day 
notice in the Federal Register concerning each proposed collection of 
information, including each proposed revision of an existing collection 
of information, before submitting the collection to OMB for approval. 
To comply with this requirement, the CFTC is publishing notice for the 
amendment of the collection listed below. 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.
    Title: Core Principles and Other Requirements for Designated 
Contract Markets (OMB Control No. 3038-0052). This is a request for a 
revision of a currently approved information collection.
    Abstract: The Commission has recently amended its regulation 1.52 
to revise the scope and potential frequency of a third-party expert's 
evaluation of SROs' financial surveillance programs. The evaluation 
report requirement is a portion of the existing information collection 
of requirements for SROs under Commission regulation 1.52, including 
Designated Contract Markets and the National Futures Association. The 
Commission's rulemaking will not alter the requirement for an SRO to 
engage an examinations expert to evaluate its supervisory program prior 
to the initial use of the supervisory program. The Commission, however, 
is eliminating the requirement that the examinations expert must review 
the SRO's ongoing application of its supervisory program during 
periodic reviews and the analysis of the supervisory program's design 
to detect material weaknesses in internal controls during both periodic 
reviews and the initial review prior to the program's initial use. The 
Commission also is revising the frequency of when an SRO must engage an 
examinations expert. Regulation 1.52 required an SRO to engage an 
examinations expert at least once every three years to perform such a 
review. The Commission amended Regulation 1.52 to require an SRO to 
engage an examinations expert whenever the Public Company Accounting 
Oversight Board (``PCAOB'') issues new or revised auditing standards 
that are material to the SRO's examination of member FCMs. The 
amendments further require an SRO to engage an examinations expert at 
least once every five years even if the SRO determined that the PCAOB 
did not issue new or revised auditing standards during the previous 
five-year period that are material to its examinations of member FCMs. 
The changes to the examinations expert reviews impact the resulting 
expert reports information collection burden. The information 
collection is necessary to enhance the ability of the Commission and 
the designated self-regulatory organization to identify problematic 
financial matters in time to avoid market disruptions when an FCM may 
fail, particularly with respect to the tie-up of customer funds that 
may result.

[[Page 13009]]

    The Commission, when originally proposing changes to regulation 
1.52, invited comments on its assessment that although the costs 
associated with obtaining the third-party expert would be reduced by 
the amendment, the paperwork burden impact of the amended scope of the 
report would be minimal. The Commission received no comments and has 
adopted the final rule. However, the Commission has determined that a 
slight revision of the expected burden hours associated with the 
information collection is possible due to the changes related to the 
third-party examinations expert report. Accordingly, the Commission is 
revising the total burden hours related to regulation 1.52 included in 
this collection.
    The Commission previously estimated the entire burden hours for 
designated contract markets as SROs associated with regulation 1.52 as 
50 hours per respondent. The revised scope of the third-party 
evaluation report should slightly reduce personnel hours needed to 
coordinate obtaining the report, although most of the burden hours 
included in this collection are associated with other aspects of the 
financial surveillance program requirements. Therefore, the Commission 
is revising the estimate of the burden hours associated with regulation 
1.52 to be 49 hours per respondent. Additionally, the Commission notes 
that the number of registered, active DCMs has decreased from 15 to 14.
    With respect to the collection of information, the CFTC invites 
comments on:
     Whether the proposed collection of information is 
necessary for the proper performance of the functions of the 
Commission, including whether the information will have a practical 
use;
     The accuracy of the Commission's estimate of the burden of 
the proposed collection of information, including the validity of the 
methodology and assumptions used;
     Ways to enhance the quality, usefulness, and clarity of 
the information to be collected; and
     Ways to minimize the burden of collection of information 
on those who are to respond, including through the use of appropriate 
automated electronic, mechanical, or other technological collection 
techniques or other forms of information technology; e.g., permitting 
electronic submission of responses.
    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.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection.\2\ The respondent burden for this 
collection is estimated to be as follows:
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    \2\ There are three Information Collection's (ICs) that fall 
within OMB Control No. 3038-0052. The changes in the Final rules 
adopted herein only pertain to IC: Enhancing Protections Afforded 
Customers and Customer Funds Held by Futures Commission Merchants 
and Derivatives Clearing Organizations and relate only to amendments 
to Regulation 1.52, which has been reduced by 1 burden hour per 
respondent. Additionally, the number of respondents has decreased 
from 15 to 14.
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    Respondents/Affected Entities: Designated Contract Markets and 
Self-regulatory Organizations.
    Estimated Number of Respondents: 14.
    Estimated Average Burden Hours per Respondent: 49.
    Estimated Total Annual Burden Hours: 686.
    Frequency of Collection: Various.
    The amended regulations require no new startup or operations and 
maintenance costs.

(Authority: 44 U.S.C. 3501 et seq.)

    Dated: March 29, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-06444 Filed 4-2-19; 8:45 am]
 BILLING CODE 6351-01-P