[Federal Register Volume 89, Number 117 (Monday, June 17, 2024)]
[Rules and Regulations]
[Pages 51208-51215]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-12685]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 146

RIN 3038-AF22


Privacy Act Regulations

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

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SUMMARY: The Commodity Futures Trading Commission (CFTC or Commission) 
is adopting amendments to certain of its regulations regarding 
exemptions for certain systems of records from one or more provisions 
of the Privacy Act of 1974 (Privacy Act) in order to better conform to 
the requirements of the Privacy Act and the guidance contained in 
Office of Management and Budget (OMB) Circular A-108, Federal Agency 
Responsibilities for Review, Reporting, and Publication Under the 
Privacy Act (OMB A-108). The final rule more specifically identifies 
the systems of records currently included in the regulation, adds 
additional systems of records that the Commission is exempting, 
enumerates the sections of the Privacy Act from which the Commission is 
exempting each system of records, sets forth the reasons for those 
exemptions, and reorganizes the regulations for ease of reference.

DATES: This rule is effective July 17, 2024.

FOR FURTHER INFORMATION CONTACT: Kellie Cosgrove Riley, Chief Privacy 
Officer, [email protected], 202-418-5610, Office of the General Counsel, 
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st 
Street NW, Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. Background

A. The Privacy Act

    The Privacy Act \1\ establishes a code of fair information practice 
principles that govern Federal agencies' collection, maintenance, use, 
and dissemination of an individual's personal information. The Privacy 
Act applies to information that is maintained in a ``system of 
records,'' defined as a group of any records under the control of an 
agency from which information is retrieved by the name of the 
individual or by some identifying number, symbol, or other identifying 
particular assigned to the individual.\2\
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    \1\ 5 U.S.C. 552a.
    \2\ 5 U.S.C. 552a(a)(5).
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    In addition to establishing a code of fair information practice 
principles, the Privacy Act restricts disclosure of records containing 
personal information that an agency maintains.\3\ The Privacy Act also 
grants individuals an increased right of access to records maintained 
about themselves as well as the right to request amendment of those 
records upon a showing that they are not accurate, relevant, timely, or 
complete.\4\ The Privacy Act also permits agencies, where certain 
requirements are met and subject to limitations set forth in the 
Privacy Act, to specifically exempt systems of records from certain 
provisions of the Privacy Act, mainly pertaining to the Privacy Act's 
provisions permitting individuals to access and request amendment of 
their records.\5\ In order to claim an exemption, the agency must 
engage in a rulemaking process pursuant to the Administrative Procedure 
Act \6\ and make clear to the public why particular exemptions are 
being invoked.\7\
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    \3\ 5 U.S.C. 552a(b).
    \4\ 5 U.S.C. 552a(d).
    \5\ 5 U.S.C. 552a(j) and (k).
    \6\ 5 U.S.C. 553.
    \7\ 5 U.S.C. 552a(j) and (k).
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II. The Proposal

    On February 2, 2024, the Commission published a notice of proposed 
rulemaking (NPRM) \8\ to revise certain of the Commission's part 146 
regulations.\9\ Current Commission regulations Sec. Sec.  146.12 and 
146.13 (together, Privacy Act regulations) assert exemptions for 
certain of the Commission's systems of records that contain records 
related to the Commission's investigatory mission and personnel 
security obligations. After reviewing those regulations, the Commission 
preliminarily determined that the current Privacy Act regulations do 
not include all of the systems of records for which the Commission 
would, in fact, assert exemptions, and those systems of records that 
are currently referenced are not clearly identified with each system of 
records' number and accurate title. The Commission also preliminarily 
determined to add more specificity regarding the rationale for 
exempting each of the systems of records in order to better demonstrate 
the Commission's compliance with sections (j) and (k) of the Privacy 
Act \10\ and the corresponding guidance in OMB Circular A-108.\11\

[[Page 51209]]

OMB A-108, issued in 2016, provides that, at minimum, an agency's 
Privacy Act exemption regulations shall include the specific name of 
any systems of records that will be exempt pursuant to the regulations, 
the specific provisions of the Privacy Act from which the systems of 
records will be exempt and the reasons therefor, and an explanation of 
why the exemption is necessary and appropriate.
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    \8\ 89 FR 7307 (Feb. 2, 2024).
    \9\ 17 CFR part 146.
    \10\ 5 U.S.C. 552a(j) and (k).
    \11\ OMB A-108, available at https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/circulars/A108/omb_circular_a-108.pdf, at page 25.
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    In the NPRM, the Commission proposed to identify more specifically 
CFTC-10 Investigatory Records, CFTC-31 Closed Commission Meetings, and 
CFTC-44 Personnel Clearance System, identified in the current Privacy 
Act regulations as Exempted Investigatory Records, Exempted Closed 
Commission Meetings, and Exempted Employee Background Investigation 
Material, respectively; and proposed to add CFTC-1 Enforcement Matter 
Register and Matter Indices, CFTC-12 National Futures Association (NFA) 
Applications Suite System, and CFTC-49 Whistleblower Records. The 
Commission also proposed to remove Privacy Act regulation Sec.  146.13, 
which provides for exempting CFTC-32 Office of the Inspector General 
Investigative Files, in favor of incorporating that system of records 
and the corresponding exemptions into Privacy Act regulation Sec.  
146.12. In addition, for all of the identified systems of records, the 
Commission proposed to specifically enumerate each provision of the 
Privacy Act from which each system of records was being exempted and 
the rationale for each exemption. Finally, the Commission proposed to 
reorganize the regulations for ease of reference.

III. Comments

    The Commission requested comment on the justification for and the 
scope of each of the proposed exemptions. The Commission received no 
comments regarding the proposed modification to its Privacy Act 
regulations nor regarding any of the related matters for which comment 
was requested in the NPRM. Accordingly, the Commission is adopting the 
proposed modifications with no changes for the reasons set forth in the 
NPRM, as explained below.

IV. Final Rule

    The Commission is modifying Privacy Act regulation Sec.  146.12 to 
add additional systems of records that the Commission is exempting from 
certain provisions of the Privacy Act, clearly identify those which it 
has previously exempted, remove current Privacy Act regulation Sec.  
146.13 in favor of adding the exemptions for the Office of Inspector 
General's system of records to Sec.  146.12, and add more specificity 
regarding the rationale for exempting each of the systems of records in 
order to better demonstrate the Commission's compliance with sections 
(j) and (k) of the Privacy Act \12\ and the corresponding guidance in 
OMB Circular A-108.\13\ Specifically, the Commission is exempting the 
following systems of records:
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    \12\ 5 U.S.C. 552a(j) and (k).
    \13\ OMB A-108, available at https://www.whitehouse.gov/wp-content/uploads/legacy_drupal_files/omb/circulars/A108/omb_circular_a-108.pdf, at page 25.
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1. CFTC-1 Enforcement Matter Register and Matter Indices (CFTC-1)

    CFTC-1 contains an index and registry of enforcement 
investigations. The Commission is exempting this system of records 
because the records are compiled for law enforcement purposes and must 
be protected from disclosure in order to maintain the integrity of the 
investigative process and not provide to any individual an opportunity 
to access records and compromise that process, such as through the 
destruction of evidence, interference with witnesses, or otherwise. In 
addition, the Commission is exempting this system of records in order 
to keep confidential the identity of sources who provided information 
to the Commission during the course of the investigation under an 
express promise that their identities would remain confidential. If an 
individual can access the identities of confidential sources, those 
sources may be unwilling to provide information that the Commission 
needs for its law enforcement activities. Specifically, the Commission 
is exempting CFTC-1, pursuant to section (k)(2) of the Privacy Act \14\ 
and subject to the requirements and limitations set forth therein, from 
the following provisions of the Privacy Act: 5 U.S.C. 552a(c)(3); 
(d)(1) through (4); (e)(1); (e)(4)(G) through (I); and (f).
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    \14\ 5 U.S.C. 552a(k)(2).
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2. CFTC-10 Investigatory Records (CFTC-10)

    CFTC-10 contains records compiled for law enforcement purposes, 
including records developed during an investigation of violations or 
potential violations of the Commodity Exchange Act (CEA or Act).\15\ 
The Commission is identifying this system of records by its proper 
title and number, rather than as ``Exempted Investigatory Records'' as 
it was previously identified in the regulations, and setting forth the 
specific reasons for which it is being exempted from particular 
provisions of the Privacy Act. To that end, the Commission is exempting 
this system of records because the records must be protected from 
disclosure in order to maintain the integrity of the investigative 
process and not provide an individual an opportunity to access records 
and compromise that process, such as through the destruction of 
evidence, interference with witnesses, or otherwise. In addition, the 
Commission is exempting this system of records in order to keep 
confidential the identity of sources who provided information to the 
Commission during the course of the investigation under an express 
promise that their identities would remain confidential. If an 
individual can access the identities of confidential sources, those 
sources may be unwilling to provide information that the Commission 
needs for its law enforcement activities. Specifically, the Commission 
is exempting CFTC-10, pursuant to section (k)(2) of the Privacy Act 
\16\ and subject to the requirements and limitations set forth therein, 
from the following provisions of the Privacy Act: 5 U.S.C. 552a(c)(3); 
(d)(1) through (4); (e)(1); (e)(4)(G) through (I); and (f).
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    \15\ 7 U.S.C. 1 et seq.
    \16\ 5 U.S.C. 552a(k)(2).
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3. CFTC-12 National Futures Association (NFA) Applications Suite System 
(CFTC-12)

    CFTC-12 contains records held by NFA on behalf of the Commission by 
delegated authority to support the Commission's registration and other 
regulatory authority. These records include records pertaining to the 
fitness of individuals to be registered with the Commission and engage 
in business activities that are subject to the Commission's 
jurisdiction and records pertaining to disciplinary or other adverse 
action investigated or taken with respect to individual registrants. 
The Commission is exempting this system of records because, to the 
extent the records pertaining to individuals that NFA holds on behalf 
of the Commission are investigatory records compiled for law 
enforcement purposes, they must be protected from disclosure in order 
to maintain the integrity of the investigative process and not provide 
to any individual an opportunity to access records and compromise that 
process, such as through the destruction of evidence, interference with 
witnesses, or otherwise. In addition, the Commission is exempting this 
system of records in order to keep confidential the identity of sources 
who provided information to NFA acting on behalf of the Commission 
during the course of the investigation under an express promise

[[Page 51210]]

that their identities would remain confidential. If an individual can 
access the identities of confidential sources, those sources may be 
unwilling to provide information that the Commission needs for its law 
enforcement activities. Specifically, the Commission is exempting CFTC-
12, pursuant to section (k)(2) of the Privacy Act \17\ and subject to 
the requirements and limitations set forth therein, from the following 
provisions of the Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); 
(e)(1); (e)(4)(G) through (I); and (f).
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    \17\ 5 U.S.C. 552a(k)(2).
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4. CFTC-31 Closed Commission Meetings (CFTC-31)

    CFTC-31 contains records about individuals who are the subject of 
discussion at closed Commission meetings, including those who are the 
subject of investigations or who are being considered for employment. 
The Commission is identifying this system of records by its proper 
title and number rather than ``Exempted Closed Commission Meetings'' as 
it was previously identified in the regulations and setting forth the 
specific reasons for which it is being exempted from particular 
provisions of the Privacy Act. To that end, to the extent the records 
in this system of records pertain to law enforcement investigations, 
the Commission is exempting this system of records because the records 
must be protected from disclosure in order to maintain the integrity of 
the investigative process and not provide to any individual an 
opportunity to compromise that process, such as through the destruction 
of evidence, interference with witnesses, or otherwise. In addition, 
the Commission is exempting this system of records in order to keep 
confidential the identity of sources who provided information to the 
Commission during the course of the investigation under an express 
promise that their identities would remain confidential. If an 
individual can access the identities of confidential sources, those 
sources may be unwilling to provide information that the Commission 
needs for its law enforcement activities. Finally, to the extent 
records in this system of records are compiled solely for the purpose 
of determining the suitability, eligibility, or qualifications of an 
individual who is being considered for employment with the Commission, 
the Commission is exempting this system of records where the disclosure 
of records would reveal the identity of somebody who provided 
information in the context of the Commission's determination and who 
had expressly requested that their identity remain confidential. The 
Commission has determined that such an exemption is necessary in order 
to obtain information relevant to its eligibility determinations. 
Accordingly, the Commission is exempting CFTC-31, pursuant to sections 
(k)(2) and (5) of the Privacy Act \18\ and subject to the requirements 
and limitations set forth therein, from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) 
through (I); and (f).
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    \18\ 5 U.S.C. 552a(k)(2) and (5), respectively.
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5. CFTC-32 Office of the Inspector General Investigative Files (CFTC-
32)

    CFTC-32 contains records relevant to criminal and civil 
investigations conducted by the Office of the Inspector General (OIG). 
This system of records was previously included in the Commission 
regulation Sec.  146.13 with exemptions promulgated pursuant to 
sections (j)(2) and (k)(2) of the Privacy Act, the former for records 
related to the OIG's criminal law enforcement activities and the latter 
for investigatory records compiled for law enforcement purposes not 
within the scope of section (j)(2). The Commission concluded that a 
separate Privacy Act regulation Sec.  146.13 for exemptions taken for 
this OIG system of records is not required by the Privacy Act or OMB 
guidance. Accordingly, the Commission, after consultation with the OIG, 
is removing current Commission regulation Sec.  146.13 and 
incorporating the exemptions for CFTC-32 into Commission regulation 
Sec.  146.12. Moreover, the Commission is setting forth the specific 
reasons for which this system of records is being exempted from 
particular provisions of the Privacy Act. To that end, the Commission 
is exempting this system of records because the records must be 
protected from disclosure in order to maintain the integrity of the 
investigative process and not provide to any individual an opportunity 
to access records and compromise that process, such as through the 
destruction of evidence, interference with witnesses, or otherwise. In 
addition, the Commission is exempting this system of records in order 
to keep confidential the identity of sources who provided information 
to the Commission during the course of the investigation under an 
express promise that their identities would remain confidential. This 
is consistent with the Inspector General Act of 1978, as amended, which 
prohibits disclosing the identities of Federal employees who submit 
complaints or other information related to investigations to the Office 
of the Inspector General.\19\
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    \19\ 5 U.S.C. 407(b).
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    If an individual can access the identities of confidential sources, 
those sources may be unwilling to provide information that the 
Commission needs for its law enforcement activities, Federal employee 
and contractor witnesses may risk retaliation in the Federal workplace, 
and any witness may risk witness interference tactics including 
threats, harassment, and physical and emotional harm. Specifically, the 
Commission is exempting this system of records, pursuant to section 
(j)(2) of the Privacy Act \20\ and subject to the requirements and 
limitations set forth therein, from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3) and (4); (d)(1) through (4); (e)(1) 
through (3), (e)(4)(G) through (I), (e)(5) and (8); (f); and (g). In 
addition, the Commission is exempting this system of records, pursuant 
to section (k)(2) of the Privacy Act \21\ and subject to the 
requirements and limitations set forth therein, from the following 
provisions of the Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); 
(e)(1); (e)(4)(G) through (I); and (f).
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    \20\ 5 U.S.C. 552a(j)(2).
    \21\ 5 U.S.C. 552a(k)(2).
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6. CFTC-44 Personnel Clearance System (CFTC-44)

    CFTC-44 contains records related to the background investigations 
and security clearances of individuals who have been or are being 
considered for access to Commission facilities, information technology 
systems, and classified or confidential information. These records may 
include statements from individuals who have provided information in 
the course of a background investigation and have requested that their 
identity remain confidential, and records that constitute investigatory 
materials compiled for law enforcement purposes. The Commission is 
identifying this system of records by its proper title and number, 
rather than as ``Exempted Employee Background Investigation Material'' 
as it was previously identified in the regulations, and setting forth 
the specific reasons for which it is being exempted from particular 
provisions of the Privacy Act pursuant to both section (k)(2) and (5) 
of the Privacy Act.\22\ To that end, to the extent records in this 
system of records are compiled solely for the purpose of determining an 
individual's suitability, eligibility, or qualifications for employment 
with the Commission, the Commission is explaining in

[[Page 51211]]

Commission regulation Sec.  146.12 that this system of records is 
exempt where the disclosure of records would reveal the identity of 
somebody who provided information in the context of the Commission's 
determination and who had expressly requested that their identity 
remain confidential in order to maintain the promised confidentiality 
and enable the Commission to obtain information relevant to its 
eligibility determinations. In addition, to the extent records in this 
system of records pertain to law enforcement investigations, the 
Commission is exempting this system of records because the records must 
be protected from disclosure in order to maintain the integrity of the 
investigative process and not provide to any individual the opportunity 
to compromise that process, such as through the destruction of 
evidence, interference with witnesses, or otherwise. The Commission 
also is exempting this system of records in order to keep confidential 
the identity of sources who provided information to the Commission 
during the course of the investigation under an express promise that 
their identities would remain confidential. If an individual can access 
the identities of confidential sources, those sources may be unwilling 
to provide information that the Commission needs for its law 
enforcement activities. Specifically, the Commission is exempting this 
system of records, pursuant to sections (k)(2) and (5) of the Privacy 
Act \23\ and subject to the requirements and limitations set forth 
therein, from the following provisions of the Privacy Act: 5 U.S.C. 
552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) through (I); and (f).
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    \22\ 5 U.S.C. 552a(k)(2) and (5).
    \23\ 5 U.S.C. 552a(k)(2) and (5).
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7. CFTC-49 Whistleblower Records (CFTC-49)

    CFTC-49 contains records related to whistleblower tips, complaints 
and referrals, records related to investigations and inquiries into 
whistleblower complaints, and records related to the whistleblower 
award claim and determination process. The Commission is exempting this 
system of records because the records are compiled for law enforcement 
purposes and must be protected from disclosure in order to maintain the 
integrity of the whistleblower process and not provide to any 
individual an opportunity to access records and compromise an 
investigation, such as through the destruction of evidence, 
interference with witnesses, or otherwise. In addition, the Commission 
is exempting this system of records in order to keep confidential the 
identity of sources who provided information during the course of the 
investigation under an express promise that their identities would 
remain confidential. If an individual can access the identities of 
confidential sources, those sources may be unwilling to provide 
information that the Commission needs to investigate whistleblower 
tips, complaints, and referrals. Specifically, the Commission is 
exempting this system of records, pursuant to section (k)(2) of the 
Privacy Act \24\ and subject to the requirements and limitations set 
forth therein, from the following provisions of the Privacy Act: 5 
U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) through (I); 
and (f).
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    \24\ 5 U.S.C. 552a(k)(2).
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V. Related Matters

A. Regulatory Flexibility Act

    The Regulatory Flexibility Act (RFA) requires Federal agencies to 
consider whether the rules they adopt will have a significant economic 
impact on a substantial number of small entities and, if so, to provide 
a regulatory flexibility analysis regarding the economic impact on 
those entities.\25\ This final rule provides additional specificity 
regarding the systems of records that the Commission is exempting from 
the Privacy Act, sets forth the reasons for those exemptions, and 
reorganizes the regulations for ease of reference. These changes 
clarify the exemptions established under the Commission's regulations 
and do not impose any additional burden on individuals who may seek 
access to records under the Privacy Act.
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    \25\ 5 U.S.C. 601 et seq.
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    Moreover, the final rules will not impact small entities as defined 
under the RFA. The modified regulations, issued under the Privacy Act, 
exempt certain systems of records maintained by the Commission from 
certain provisions of the Privacy Act, primarily those provisions 
related to an individual's right to access and seek amendment of those 
records. Individuals are defined in the Privacy Act as United States 
citizens or aliens lawfully admitted to the United States for permanent 
residence.\26\ Small entities, as defined in the RFA, are not 
individuals under the Privacy Act and are not provided rights 
thereunder; therefore, the final rules do not impact small entities as 
defined under the RFA. Accordingly, the Chairman, on behalf of the 
Commission, hereby certifies pursuant to 5 U.S.C. 605(b), that this 
rule will not have a significant economic impact on a substantial 
number of small entities.
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    \26\ 5 U.S.C. 552a(a)(2).
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B. Paperwork Reduction Act

    The Paperwork Reduction Act (PRA) imposes certain requirements on 
Federal agencies in connection with their conducting or sponsoring any 
collection of information.\27\ The Commission may not conduct or 
sponsor, and a respondent is not required to respond to, a request for 
collection of information unless the information collection request 
displays a currently valid control number issued by OMB. This rule does 
not contain a ``collection of information,'' as defined in the PRA. 
Accordingly, the requirements imposed by the PRA are not applicable to 
this rule.
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    \27\ 5 U.S.C. 3501 et seq.
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C. Cost-Benefit Considerations

    Section 15(a) of the CEA provides that, before promulgating a 
regulation under the CEA or issuing an order, the Commission shall 
consider the costs and benefits of the action of the Commission.\28\ 
Section 15(a) further specifies that the costs and benefits shall be 
evaluated in light of five broad areas of market and public concern: 
(1) protection of market participants and the public; (2) efficiency, 
competitiveness, and financial integrity of the futures markets; (3) 
price discovery; (4) sound risk management practices; and (5) other 
public interest considerations.\29\ The modified rules are being 
promulgated under the Privacy Act and pertain to the rights of 
individuals with respect to records the Commission maintains about 
them. The modified rules are not being promulgated under the CEA. 
Therefore, the Commission finds that the considerations enumerated in 
section 15(a)(2) of the CEA are not applicable here.
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    \28\ 7 U.S.C. 19(a).
    \29\ 7 U.S.C. 19(a)(2).
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D. Antitrust Considerations

    Section 15(b) of the CEA requires the Commission to ``take into 
consideration the public interest to be protected by the antitrust laws 
and endeavor to take the least anticompetitive means of achieving the 
purposes of this Act, in issuing any order or adopting any Commission 
rule or regulation (including any exemption under section 4(c) or 
4c(b)), or in requiring or approving any bylaw, rule, or regulation of 
a contract market or registered futures association established 
pursuant to section 17 of this Act.'' \30\
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    \30\ 7 U.S.C. 19(b).

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[[Page 51212]]

    The Commission believes that the public interest to be protected by 
the antitrust laws is generally to protect competition. The Commission 
requested comment on whether the proposed rule implicates any other 
specific public interest to be protected by the antitrust laws; the 
Commission received no comments in response to this request.
    The Commission has considered the modified rule to determine 
whether it is anticompetitive and has preliminarily identified no 
anticompetitive effects. The Commission requested comment on whether 
the proposed rule is anticompetitive and, if it is, what the 
anticompetitive effects are; the Commission received no comments in 
response to this request.
    Because the Commission has determined that the modified rule is not 
anticompetitive and has no anticompetitive effects, the Commission has 
not identified any less anticompetitive means of achieving the purposes 
of the Act. The Commission requested comment on whether there are less 
anticompetitive means of achieving the relevant purposes of the Act 
that would otherwise be served by adopting the proposed rule; the 
Commission received no comments in response to this request.

List of Subjects in 17 CFR Part 146

    Privacy.

    For the reasons stated in the preamble, the Commodity Futures 
Trading Commission amends 17 CFR part 146 as follows:

PART 146--RECORDS MAINTAINED ON INDIVIDUALS

0
1. The authority citation for part 146 continues to read as follows:

    Authority: 88 Stat. 1896 (5 U.S.C. 552a), as amended; 88 Stat. 
1389 (7 U.S.C. 4a(j)).


0
2. Revise Sec.  146.12 to read as follows:


Sec.  146.12  Exemptions.

    The Commission is exempting from certain provisions of the Privacy 
Act the systems of records set forth in this section. In addition, when 
these systems of records and any other of the Commission's systems of 
records maintain a record received from another system of records that 
is exempted from one or more provisions of the Privacy Act, the 
Commission will claim the same exemptions for that record that are 
claimed for the system of records from which it originated.
    (a) CFTC-1 Enforcement Matter Register and Matter Indices. The 
system of records identified as CFTC-1 Enforcement Matter Register and 
Matter Indices contains an index and registry of enforcement 
investigations. Pursuant to 5 U.S.C. 552a(k)(2) and subject to the 
requirements and limitations set forth therein, the Commission is 
exempting this system of records from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) 
through (I); and (f), and from the following corresponding sections of 
these rules: Sec. Sec.  146.3; 146.5; 146.6(d); 146.11(a)(7) through 
(9); and 146.7(a). Exemptions from these particular sections of the 
Privacy Act and CFTC's rules promulgated thereunder are justified for 
the following reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the investigation. In addition, 
providing an individual with access to these records may reveal the 
identity of a source who furnished information under an express promise 
that their identity would remain confidential. Allowing the subject of 
the investigation to amend records in this system of records could 
likewise interfere with ongoing law enforcement proceedings and impose 
an impossible administrative burden by requiring law enforcement 
investigations to be continuously reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of investigations into potential violations of 
law, the significance of certain information may not be clear or the 
information may not be strictly relevant or necessary to a specific 
investigation; but, effective law enforcement requires the retention of 
all information that may aid in establishing patterns of unlawful 
activity and providing investigative leads.
    (4) From section (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (b) CFTC-10 Investigatory Records. The system of records identified 
as CFTC-10 Investigatory Records contains records compiled for law 
enforcement purposes, including records developed during an 
investigation of violations or potential violations of the CEA. 
Pursuant to 5 U.S.C. 552a(k)(2) and subject to the requirements and 
limitations set forth therein, the Commission is exempting this system 
of records from the following provisions of the Privacy Act: 5 U.S.C. 
552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) through (I); and (f), 
and from the following corresponding sections of these rules: 
Sec. Sec.  146.3; 146.5; 146.6(d); 146.11(a)(7) through (9); and 
146.7(a). Exemptions from these particular sections of the Privacy Act 
and CFTC's rules promulgated thereunder are justified for the following 
reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the

[[Page 51213]]

investigation. In addition, providing an individual with access to 
these records may reveal the identity of a source who furnished 
information under an express promise that their identity would remain 
confidential. Allowing the subject of the investigation to amend 
records in this system of records could likewise interfere with ongoing 
law enforcement proceedings and impose an impossible administrative 
burden by requiring law enforcement investigations to be continuously 
reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of investigations into potential violations of 
law, the significance of certain information may not be clear or the 
information may not be strictly relevant or necessary to a specific 
investigation; but, effective law enforcement requires the retention of 
all information that may aid in establishing patterns of unlawful 
activity and providing investigative leads.
    (4) From sections (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (c) CFTC-12 National Futures Association (NFA) Applications Suite 
System. The system of records identified as CFTC-12 National Futures 
Association (NFA) Applications Suite System contains records held by 
NFA on behalf of the Commission, by delegated authority to support the 
Commission's registration and other regulatory authority. These records 
include records pertaining to the fitness of individuals to be 
registered with the Commission and engage in business activities that 
are subject to the Commission's jurisdiction and records pertaining to 
disciplinary or other adverse action investigated or taken with respect 
to individual registrants. Pursuant to 5 U.S.C. 552a(k)(2) and subject 
to the requirements and limitations set forth therein, the Commission 
is exempting this system of records from the following provisions of 
the Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); 
(e)(4)(G) through (I); and (f), and from the following corresponding 
sections of these rules: Sec. Sec.  146.3; 146.5; 146.6(d); 
146.11(a)(7) through (9); and 146.7(a). Exemptions from these 
particular sections of the Privacy Act are justified for the following 
reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of accountings of certain disclosures could alert the 
subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the investigation. In addition, 
providing an individual with access to these records may reveal the 
identity of a source who furnished information under an express promise 
that their identity would remain confidential. Allowing the subject of 
the investigation to amend records in this system of records could 
likewise interfere with ongoing law enforcement proceedings and impose 
an impossible administrative burden by requiring law enforcement 
investigations to be continuously reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of investigations into potential violations of 
law, the significance of certain information may not be clear or the 
information may not be strictly relevant or necessary to a specific 
investigation; but, effective law enforcement requires the retention of 
all information that may aid in establishing patterns of unlawful 
activity and providing investigative leads.
    (4) From sections (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (d) CFTC-31 Closed Commission Meetings. The system of records 
identified as CFTC-31 Closed Commission Meetings contains records about 
individuals who are the subject of discussion at closed Commission 
meetings, including those who are the subject of investigations or who 
are being considered for employment. These records may include 
statements from individuals who have provided information in the course 
of an applicant's or employee's background investigation or other 
Commission investigation and who have requested that their identities 
remain confidential. Pursuant to 5 U.S.C. 552a(k)(2) and (5) and 
subject to the requirements and limitations set forth therein, the 
Commission is exempting this system of records from the following 
provisions of the Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); 
(e)(1); (e)(4)(G) through (I); and (f), and from the following 
corresponding sections of these rules: Sec. Sec.  146.3; 146.5; 
146.6(d); 146.11(a)(7) through (9); and 146.7(a). Exemptions from these 
particular sections of the Privacy Act are justified for the following 
reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the investigation. In addition, 
providing an individual with access to these records may reveal the 
identity of a source who furnished information under an express promise 
that their identity would remain confidential. Allowing the subject of 
the investigation to amend

[[Page 51214]]

records in this system of records could likewise interfere with ongoing 
law enforcement proceedings and impose an impossible administrative 
burden by requiring law enforcement investigations to be continuously 
reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of investigations into potential violations of 
law, the significance of certain information may not be clear or the 
information may not be strictly relevant or necessary to a specific 
investigation; but, effective law enforcement requires the retention of 
all information that may aid in establishing patterns of unlawful 
activity and providing investigative leads.
    (4) From section (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (e) CFTC-32, Office of the Inspector General Investigative Files. 
The system of records identified as CFTC-32 Office of the Inspector 
General Investigative Files contains records relevant to criminal and 
civil investigations conducted by the Office of the Inspector General, 
including records about individuals being investigated for fraudulent 
and abusive activities. Pursuant to 5 U.S.C. 552a(j)(2) and subject to 
the requirements and limitations set forth therein, the Commission is 
exempting this system of records from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3) and (4); (d)(1) through (4); (e)(1) 
through (3), (e)(4)(G) through (I), and (e)(5) and (8); (f); and (g), 
and from the following corresponding sections of these rules: 
Sec. Sec.  146.3; 146.4; 146.5; 146.6(b), (d), and (e); 146.7(a), (c), 
and (d); 146.8; 146.9; 146.10; and 146.11(a)(7) through (9). In 
addition, pursuant to 5 U.S.C. 552a(k)(2) and subject to the 
requirements and limitations set forth therein, the Commission is 
exempting this system of records from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) 
through (I); and (f), and from the following corresponding sections of 
these rules: Sec. Sec.  146.3; 146.5; 146.6(d); 146.11(a)(7) through 
(9); and 146.7(a). Exemptions from these particular sections of the 
Privacy Act are justified for the following reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From section (c)(4) (Notice of Correction), because this system 
is exempt from the access and amendment provisions of section (d), as 
noted below.
    (3) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the investigation. In addition, 
providing an individual with access to these records may reveal the 
identity of a source who furnished information under an express promise 
that their identity would remain confidential. Allowing the subject of 
the investigation to amend records in this system of records could 
likewise interfere with ongoing law enforcement proceedings and impose 
an impossible administrative burden by requiring law enforcement 
investigations to be continuously reinvestigated.
    (4) From section (e)(1) (Relevancy and Necessity of Information) 
and (5) (Accuracy, Timeliness, Relevance, and Completeness), because in 
the course of investigations into potential violations of law, the 
significance of certain information may not be clear or the information 
may not be strictly relevant or necessary to a specific investigation; 
but, effective law enforcement requires the retention of all 
information that may aid in establishing patterns of unlawful activity 
and providing investigative leads. (5) From section (e)(2) (Collect 
from Individual), because in a law enforcement investigation the 
requirement that information be collected to the greatest extent 
possible from the subject individual would present a serious impediment 
to law enforcement, in that the subject of the investigation would be 
informed of the existence of the investigation and would therefore be 
able to avoid detection, apprehension, or legal obligations or duties.
    (6) From section (e)(3) (Privacy Act Statement), because to comply 
with the requirements of this section during the course of an 
investigation could impede the information gathering process and hamper 
the investigation.
    (7) From sections (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (8) From section (e)(8) (Serve Notice), because the application of 
this provision could prematurely reveal an ongoing criminal 
investigation to the subject of the investigation, present a serious 
impediment to law enforcement by interfering with the ability to issue 
subpoenas or otherwise gather information, and reveal investigative 
techniques, procedures, or evidence.
    (9) From section (g) (Civil Remedies), because this system of 
records is exempt from the individual access and amendment provisions 
in section (d) of the Privacy Act for the reasons stated in paragraph 
(e)(3) of this section; therefore, the Commission is not subject to 
civil action for failure to adhere to those requirements.
    (f) CFTC-44 Personnel Clearance System. The system of records 
identified as CFTC-44 Personnel Clearance System contains records 
related to the background investigations and security clearances of 
individuals who have been or are being considered for access to 
Commission facilities, information technology systems, and classified 
or confidential information. These records may include statements from 
individuals who have provided information in the course of a background 
investigation and have requested that their identity remain 
confidential. Pursuant to 5 U.S.C. 552a(k)(2) and (5) and subject to 
the requirements and limitations set forth therein, the Commission is 
exempting this system of records from the following provisions of the 
Privacy Act: 5 U.S.C. 552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) 
through (I); and (f), and from the following corresponding sections of 
these rules: Sec. Sec.  146.3; 146.5; 146.6(d); 146.11(a)(7) through 
(9); and 146.7(a). Exemptions from these particular sections of the 
Privacy Act are justified for the following reasons:

[[Page 51215]]

    (1) From sections (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the extent of that investigation and 
reveal investigative interests of the Commission and the recipient 
entity that were previously unknown to the individual. Release of such 
information to the subject of an investigation could reasonably be 
anticipated to impede and interfere with the Commission's efforts to 
adequately assess an individual when making a decision about the 
individual's access to Commission facilities, information technology 
systems, and classified and confidential information.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because the records contained in this system may be related to ongoing 
investigations, and individual access to these records could alert the 
subject of an investigation to the extent of that investigation and 
reveal investigative interests of the Commission and others that were 
previously unknown to the individual. Providing a subject with access 
to these records could impair the effectiveness of the Commission's 
investigations and could significantly impede the investigation by 
providing the opportunity for the subject to destroy documentary 
evidence, improperly influence witnesses and confidential sources, 
fabricate testimony, and engage in other activities that could 
compromise the investigation. In addition, providing an individual with 
access to these records may reveal the identity of a source who 
furnished information under an express promise that their identity 
would remain confidential. Amendment of the records in this system of 
records would interfere with ongoing law enforcement proceedings and 
impose an impossible administrative burden by requiring law enforcement 
investigations to be continuously reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of conducting and adjudicating background 
investigations, the significance of certain information may not be 
clear or the information may not be strictly relevant or necessary to a 
specific investigation; but, effective investigations require the 
retention of all information that may aid in the investigation and 
provide investigative leads.
    (4) From sections (e)(4)(G) through (I) (Agency Requirements), and 
(f) (Agency Rules), because the Commission is not required to establish 
requirements, rules, or procedures related to access and amendment of 
records in a system of records that is exempt from the individual 
access and amendment provisions in section (d) of the Privacy Act.
    (g) CFTC-49 Whistleblower Records. The system of records identified 
as CFTC-49 Whistleblower Records contains records related to 
whistleblower tips, complaints and referrals, records related to 
investigations and inquiries into whistleblower complaints, and records 
related to the whistleblower award claim and determination process. 
Pursuant to 5 U.S.C. 552a(k)(2) and subject to the requirements and 
limitations set forth therein, the Commission is exempting this system 
of records from the following provisions of the Privacy Act: 5 U.S.C. 
552a(c)(3); (d)(1) through (4); (e)(1); (e)(4)(G) through (I); and (f), 
and from the following corresponding sections of these rules: 
Sec. Sec.  146.3; 146.5; 146.6(d); 146.11(a) through (9); and 146.7(a). 
Exemptions from these particular sections of the Privacy Act are 
justified for the following reasons:
    (1) From section (c)(3) (Accounting of Certain Disclosures), 
because release of the accounting of certain disclosures could alert 
the subject of an investigation to the existence and extent of that 
investigation and reveal the investigative interests of the Commission 
and the recipient entity. Release of such information to the subject of 
an investigation could reasonably be anticipated to impede and 
interfere with the Commission's efforts to identify and investigate 
unlawful activities.
    (2) From sections (d)(1) through (4) (Access and Amendment), 
because individual access to these records could alert the subject of 
an investigation to the existence and extent of that investigation and 
reveal the investigative interests of the Commission and others. 
Providing a subject with access to these records could impair the 
effectiveness of the Commission's investigations and could 
significantly impede the investigation by providing the opportunity for 
the subject to destroy documentary evidence, improperly influence 
witnesses and confidential sources, fabricate testimony, and engage in 
other activities that could compromise the investigation. Allowing the 
subject of the investigation to amend records in this system of records 
could likewise interfere with ongoing law enforcement proceedings and 
impose an impossible administrative burden by requiring law enforcement 
investigations to be continuously reinvestigated.
    (3) From section (e)(1) (Relevancy and Necessity of Information), 
because in the course of investigations, the significance of certain 
information may not be clear or the information may not be strictly 
relevant or necessary to a specific investigation; but, effective 
investigations require the retention of all information that may aid in 
the investigation or aid in establishing patterns of activity and 
provide investigative leads. (4) From sections (e)(4)(G) through (I) 
(Agency Requirements) and (f) (Agency Rules), because the Commission is 
not required to establish requirements, rules, or procedures related to 
access and amendment of records in a system of records that is exempt 
from the individual access and amendment provisions in section (d) of 
the Privacy Act.


Sec.  146.13  [Removed]

0
3. Remove Sec.  146.13.

    Issued in Washington, DC, on June 5, 2024, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.


    Note:  The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Privacy Act Regulations--Voting Summary

Appendix 1--Voting Summary

    On this matter, Chairman Behnam and Commissioners Johnson, and 
Goldsmith Romero, Mersinger, and Pham voted in the affirmative. No 
Commissioner voted in the negative.

[FR Doc. 2024-12685 Filed 6-14-24; 8:45 am]
BILLING CODE 6351-01-P