[Federal Register Volume 85, Number 249 (Tuesday, December 29, 2020)]
[Notices]
[Pages 85602-85604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28711]


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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 of 1995 (PRA), 
this notice announces that the Information Collection Request (ICR) 
abstracted below has been forwarded to the Office of Information and 
Regulatory Affairs (OIRA), of the Office of Management and Budget 
(OMB), for review and comment. The ICR describes

[[Page 85603]]

the nature of the information collection and its expected costs and 
burden.

DATES: Comments must be submitted on or before January 28, 2021.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be submitted within 30 days of this 
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by 
selecting ``Currently under 30-day Review--Open for Public Comments'' 
or by using the website's search function. Comments can be entered 
electronically by clicking on the ``comment'' button next to the 
information collection on the ``OIRA Information Collections Under 
Review'' page, or the ``View ICR--Agency Submission'' page. A copy of 
the supporting statement for the collection of information discussed 
herein may be obtained by visiting https://www.reginfo.gov/public/do/PRAMain.
    In addition to the submission of comments to https://Reginfo.gov as 
indicated above, a copy of all comments submitted to OIRA may also be 
submitted to the Commodity Futures Trading Commission (the 
``Commission'' or ``CFTC'') by clicking on the ``Submit Comment'' box 
next to the descriptive entry for OMB Control No. 3038-0062, at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
    Or by either of the following methods:
     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.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments submitted to the Commission should 
include 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\ 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 https://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.
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    \1\ 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Gregory Scopino, Special Counsel, 
Market Participants Division, Commodity Futures Trading Commission, 
(202) 418-5175; email: [email protected], and refer to OMB Control No. 
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3038-0062.

SUPPLEMENTARY INFORMATION: 
    Title: Off-Exchange Foreign Currency Transactions. (OMB Control No. 
3038-0062). This is a request for anextension of a currently approved 
information collection..
    Abstract: Part 5 of the Commission's regulations under the CEA 
establishes rules applicable to retail foreign exchange dealers 
(``RFEDs''), futures commission merchants (``FCMs''), introducing 
brokers (``IBs''), commodity trading advisors (``CTAs''), and commodity 
pool operators (``CPOs'') engaged in the offer and sale of off-exchange 
forex contracts to retail customers. Specifically:
     Regulation 5.5 requires RFEDs, FCMs, and IBs to distribute 
risk disclosure statements to new retail forex customers.
     Regulation 5.6 requires RFEDs and FCMs to report any 
failures to maintain the minimum capital required by Commission 
regulations.
     Regulation 5.8 requires RFEDs and FCMs to calculate their 
total retail forex obligation.
     Regulation 5.10 requires RFEDs to maintain and preserve 
certain risk assessment documentation.
     Regulation 5.11(a)(1) requires RFEDs to submit certain 
risk assessment documentation to the Commission within 60 days of the 
effective date of their registration.
     Regulation 5.11(a)(2) requires RFEDs to submit certain 
financial documentation to the Commission within 105 calendar days of 
the end of each fiscal year. RFEDs must also submit additional 
information, if requested, regarding affiliates' financial impact on an 
RFED's organizational structure.
     Regulation 5.12(a) requires RFED applicants to submit a 
Form 1-FR-FCM concurrently with their registration application.
     Regulation 5.12(b) requires registered RFEDs to file a 
Form 1-FR-FCM on a monthly and annual basis.
     Regulation 5.12(g) states that, in the event that an RFED 
cannot file its Form 1-FR-FCM for any period within the time specified 
in Regulation 5.12(b), the RFED may file an application for an 
extension of time with its self-regulatory organization.
     Regulation 5.13(a) requires RFEDs and FCMs to provide 
monthly account statements to their customers.
     Regulation 5.13(b) requires RFEDs and FCMs to provide 
confirmation statements to their customers within one business day 
after the execution of any retail forex or forex option transaction.
     Regulation 5.14 requires RFEDs and FCMs to maintain 
current ledgers of each transaction affecting its asset, liability, 
income, expense and capital accounts.
     Regulation 5.18(g) requires each RFED, FCM, CPO, CTA, and 
IB subject to part 5 to maintain a record of all communications 
received that give rise to possible violations of the Act, rules, 
regulations or orders thereunder related to their retail forex 
business.
     Regulation 5.18(i) requires each RFED and FCM to prepare 
and maintain on a quarterly basis a calculation of non-discretionary 
retail forex customer accounts open for any period of time during the 
quarter that were profitable, and the percentage of such accounts that 
were not profitable.
     Regulation 5.18(j) requires the CCO of each RFED and FCM 
to certify annually that the firm has in place processes to establish, 
maintain, review, modify and test policies and procedures reasonably 
designed to achieve compliance with the Act, rules, regulations and 
orders thereunder.
     Regulation 5.19 requires each RFED, FCM, CPO, CTA, and IB 
subject to part 5 to submit to the Commission copies of any dispositive 
or partially dispositive decision for which a notice of appeal has been 
filed in any material legal proceeding (1) to which the firm is a party 
to or to which its property or assets is subject with respect to retail 
forex transactions, or (2) instituted against any person who is a 
principal of the firm arising from conduct in such person's capacity as 
a principal of that firm.
     Regulation 5.20 requires RFEDs, FCMs and IBs to submit 
documentation requested pursuant to certain types of special calls by 
the Commission.
     Regulation 5.23 requires RFEDs, FCMs and IBs to notify the 
Commission regarding bulk transfers and bulk liquidations of customer 
accounts.
    The rules establish reporting and recordkeeping requirements that 
are necessary to implement the provisions

[[Page 85604]]

of the Food, Conservation, and Energy Act of 2008 \2\ regarding off-
exchange transactions in foreign currency with members of the public. 
The rules are intended to promote customer protection by providing 
safeguards against irresponsible or fraudulent business practices.\3\
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    \2\ Public Law 110-246, 122 Stat. 1651, 2189-220 (2008).
    \3\ See Regulation of Off-Exchange Retail Foreign Exchange 
Transactions and Intermediaries, 75 FR 55410, 55416 (Sept. 10, 
2010).
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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.\4\ On October 26, 2020, the 
Commission published in the Federal Register notice of the proposed 
extension of this information collection and provided 60 days for 
public comment on the proposed extension, 85 FR 67721 (``60-Day 
Notice''). The Commission did not receive any comments on the 60-Day 
Notice.
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    \4\ The OMB control numbers for the CFTC regulations were 
published on December 30, 1981. See 46 FR 63035 (Dec. 30, 1981).
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    Burden Statement: The Commission is revising its estimate of the 
burden for this collection for 146 respondents, which include RFEDs, 
FCMs, IBs, CPOs, and CTAs. The respondent burden for this collection is 
estimated to be as follows:
    Estimated Number of Respondents: 146.
    Estimated Average Burden Hours per Respondent: 2,865.\5\
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    \5\ This figure has been rounded to the nearest one: 2,864.972 
to 2865.
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    Estimated Total Annual Burden Hours: 418,286.
    Frequency of Collection: As applicable.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

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

    Dated: December 22, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-28711 Filed 12-28-20; 8:45 am]
BILLING CODE 6351-01-P