[Federal Register Volume 84, Number 81 (Friday, April 26, 2019)]
[Notices]
[Pages 17811-17814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08397]


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COMMODITY FUTURES TRADING COMMISSION


Privacy Act of 1974; System of Records

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of a modified system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, the Commodity Futures Trading Commission (CFTC or 
Commission) is republishing existing SORN: National Futures Association 
(NFA) Applications Suite System, CFTC-12. The modification will add two 
routine uses, clarify existing routine uses, and bring the SORN in 
compliance with the Office of Management and Budget (OMB) Circular A-
108 SORN template. The two new routine uses pertain to sharing 
information to mitigate a breach and are required by OMB Memorandum 17-
12. Other updates include identifying the specific routine uses 
applicable to the system of records rather than relying on CFTC's 
previously published blanket routine uses, and administrative updates 
to comply with the OMB Circular A-108 SORN template format.

DATES: Comments must be received on or before May 28, 2019. This action 
will be effective without further notice on May 28, 2019, unless 
revised pursuant to comments received.

ADDRESSES: You may submit comments identified as pertaining to 
``National Futures Association Applications Suite System'' by any of 
the following methods:
     Agency website, via its Comments Online process: https://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. You should submit only information that you wish 
to make available publicly.
    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 comment file and will 
be considered as required under all applicable laws, and may be 
accessible under the FOIA.

FOR FURTHER INFORMATION CONTACT: Melissa Jurgens, Acting Chief Privacy 
Officer, 202-418-5516, [email protected], Office of the Executive 
Director, Commodity Futures Trading Commission, Three Lafayette Centre, 
1155 21st Street NW, Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. National Futures Association

    The National Futures Association (NFA) is a not-for-profit 
membership corporation formed in 1976 that serves as an industry self-
regulatory organization under Section 17 of the Commodity Exchange Act 
(CEA). NFA's formal designation as a ``registered futures association'' 
was granted by the

[[Page 17812]]

CFTC in 1981 and NFA's regulatory operations began in 1982.
    The Commodities Futures Trading Commission (CFTC or Commission) has 
delegated to the NFA the authority to perform certain functions and act 
as custodian of certain CFTC records to support the CFTC's mission of 
protecting market participants and the public from fraud, manipulation, 
abusive practices and systemic risk related to futures and swaps 
derivatives and to foster transparent, open, competitive and 
financially sound markets. The NFA Applications Suite System 
(``Applications Suite'') is a collection of the NFA databases and 
applications specifically designed to allow NFA to fulfill the mission 
and business objectives set forth by the Commission through delegated 
authority.

II. 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 by some identifying number, symbol, or other 
identifying particular assigned to the individual. The Privacy Act 
establishes the means by which government agencies must collect, 
maintain, and use information about an individual in a government 
system of records.
    Each government agency is required to publish a notice in the 
Federal Register in which the agency identifies and describes each 
system of records it maintains, the reasons why the agency uses the 
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.
    In accordance with 5 U.S.C. 552a(r), CFTC has provided a report of 
this system of records to the Office of Management and Budget (OMB) and 
to Congress.

III. Notice: National Futures Association (NFA) Applications Suite 
System, CFTC-12.

SYSTEM NAME AND NUMBER
    National Futures Association (NFA) Applications Suite System, CFTC-
12.

SECURITY CLASSIFICATION:
    Unclassified.

SYSTEM LOCATION:
    This system is located at the National Futures Association, 300 S. 
Riverside Plaza, Chicago, IL 60606 and the Commodity Futures Trading 
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 
20581.

SYSTEM MANAGER(S):
    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 contact: Vice 
President for Registration, National Futures Association, 300 South 
Riverside, Suite 1800, Chicago, Illinois 60606.

AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
    The collection of this information is authorized under The 
Commodity Exchange Act, 7 U.S.C. 1, et seq., and the rules and 
regulations promulgated thereunder.

PURPOSE(S) OF THE SYSTEM:
    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; 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.

CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
    This system includes information about 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. 
This system also includes information about 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:
    This system includes 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. The system also includes 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. Additionally, this system 
includes 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.

[[Page 17813]]

RECORD SOURCE CATEGORIES:
    Sources of the information include 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.

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 website(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 
Commission 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.
    These records and information in these records may be used:
    (a) To disclose 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;
    (b) To disclose to any futures commission merchant or retail 
foreign exchange dealer with whom an introducing broker, whether an 
applicant or registrant, has or plans to enter into a guarantee 
agreement under CFTC Regulation 1.10;
    (c) To disclose 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;
    (d) To disclose 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;
    (e) To disclose to the public certain background information about 
firms and industry professionals to allow them to understand NFA 
membership, CFTC registration status, and relevant background 
information;
    (f) To disclose in any administrative proceeding before the 
Commission, in any injunctive action authorized under the Commodity 
Exchange Act, or in any other action or proceeding in which the 
Commission or its staff participates as a party or the Commission 
participates as amicus curiae;
    (g) To disclose to Federal, State, local, territorial, Tribal, or 
foreign agencies for use in meeting their statutory or regulatory 
requirements;
    (h) To disclose to any ``registered entity,'' as defined in section 
1a of the Commodity Exchange Act, 7 U.S.C. 1, et seq. (``the Act''), to 
the extent disclosure is authorized and will assist the registered 
entity in carrying out its responsibilities under the Act. Information 
may also be disclosed to any registered futures association registered 
under section 17 of the Act to assist it in carrying out its self-
regulatory responsibilities under the Act, and to any national 
securities exchange or national securities association registered with 
the Securities and Exchange Commission to assist those organizations in 
carrying out their self-regulatory responsibilities under the 
Securities Exchange Act of 1934, 15 U.S.C. 78a, et seq.;
    (i) To disclose to contractors, grantees, volunteers, experts, 
students, and others performing or working on a contract, service, 
grant, cooperative agreement, or job for the Federal government when 
necessary to accomplish an agency function;
    (j) To disclose to Congress upon its request, acting within the 
scope of its jurisdiction, pursuant to the Commodity Exchange Act, 7 
U.S.C. 1 et seq., and the rules and regulations promulgated thereunder;
    (k) To disclose to appropriate agencies, entities, and persons when 
(1) the Commission suspects or has confirmed that there has been a 
breach of the system of records; (2) the Commission has determined that 
as a result of the suspected or confirmed breach there is a risk of 
harm to individuals, the Commission (including its information systems, 
programs, and operations), the Federal Government, or national 
security; and (3) the disclosure made to such agencies, entities, and 
persons is reasonably necessary to assist in connection with the 
Commission's efforts to respond to the suspected or confirmed breach or 
to prevent, minimize, or remedy such harm; or
    (l) To disclose to another Federal agency or Federal entity, when 
the Commission determines that information from this system of records 
is reasonably necessary to assist the recipient agency or entity in (1) 
responding to a suspected or confirmed breach or (2) preventing, 
minimizing, or remedying the risk of harm to individuals, the recipient 
agency or entity (including its information systems, programs, and 
operations), the Federal Government, or national security, resulting 
from a suspected or confirmed breach.

POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
    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 website, and other secure 
electronic media as needed.

POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
    Information covered by this system of records notice may be 
retrieved 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).

POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
    The records will be maintained in accordance with records 
disposition schedules approved by the National Archives and Records 
Administration. The schedules are available at http://www.cftc.gov.

[[Page 17814]]

ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
    Records are protected from unauthorized access and improper use 
through administrative, technical, and physical security measures. 
Administrative safeguards include written guidelines on handling 
personal information including agency-wide procedures for safeguarding 
personally identifiable information. In addition, all NFA and CFTC 
staff are required to take annual privacy and security training. 
Technical security measures within NFA and CFTC include restrictions on 
computer access to authorized individuals who have a legitimate need to 
know the information; required use of strong passwords that are 
frequently changed; multi-factor authentication for remote access and 
access to many network components; use of encryption for certain data 
types and transfers; firewalls and intrusion detection applications; 
and regular review of security procedures and best practices to enhance 
security. Physical safeguards include restrictions on building access 
to authorized individuals, 24-hour security guard service, and 
maintenance of records in lockable offices and filing cabinets.

RECORD ACCESS PROCEDURES:
    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 should address written 
inquiries to the Office of General Counsel, Commodity Futures Trading 
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 
20581. See 17 CFR 146.3 for full details on what to include in a 
Privacy Act access request.
    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.

CONTESTING RECORD PROCEDURES:
    Individuals contesting the content of records about themselves 
contained in this system of records should address written inquiries to 
the Office of General Counsel, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See 
17 CFR 146.8 for full details on what to include in a Privacy Act 
amendment request.

NOTIFICATION PROCEDURES:
    Individuals seeking notification of any records about themselves 
contained in this system of records should address written inquiries to 
the Office of General Counsel, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See 
17 CFR 146.3 for full details on what to include in a Privacy Act 
notification request. 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 http://www.nfa.futures.org.

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

HISTORY:
    A previous version of this SORN was published in the Federal 
Register on September 30th, 2014 at 79 FR 58752.

    Issued in Washington, DC, on April 22, 2019, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-08397 Filed 4-25-19; 8:45 am]
BILLING CODE 6351-01-P