[Federal Register Volume 89, Number 117 (Monday, June 17, 2024)]
[Notices]
[Pages 51315-51317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13254]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Extend Collection 3038-0021, Regulations Governing Bankruptcies of 
Commodity Brokers

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (CFTC or Commission) 
is announcing an opportunity for public comment on the proposed 
extension of the 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 each proposed extension of an 
existing collection, and to allow 60 days for public comment. This 
notice solicits comments on the collection of information provided for 
by the Commission's regulations governing bankruptcies of commodity 
brokers.

DATES: Comments must be submitted on or before August 16, 2024.

ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0021, by any of the following methods:
     The agency's website, at https://www.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 of these methods. All 
comments must be submitted in English, or if not, accompanied by an 
English translation. Comments will be posted as received to https://www.cftc.gov.

FOR FURTHER INFORMATION CONTACT: Robert B. Wasserman, Chief Counsel and 
Senior Advisor, Division of Clearing and Risk, Commodity Futures 
Trading Commission, (202) 418-5092; email: [email protected].

SUPPLEMENTARY INFORMATION: Under the PRA, 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. 
An agency may not conduct or sponsor, and a person is not required to 
respond to, a collection of information unless it displays a valid OMB 
control number. 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 
before submitting the collection to OMB for approval. To comply with 
this requirement, the CFTC is publishing notice of the proposed 
extension of the collection of information listed below.
    Title: Regulations Governing Bankruptcies of Commodity Brokers (OMB 
Control No. 3038-0021). This is a request for an extension of a 
currently approved information collection.\1\
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    \1\ There are two information collections associated with OMB 
Control No. 3038-0021. The first includes the reporting, 
recordkeeping, and third party disclosure requirements applicable to 
a single respondent in a commodity broker liquidation (e.g., a 
single commodity broker or a single trustee) within the relevant 
time period provided for in Commission regulations 190.02(b)(1), 
190.02(b)(2), 190.02(c)(1), 190.02(c)(2), 190.02(c)(4), 190.05(b), 
190.05(d), 190.07(b)(5), 190.12(a)(2), 190.12(b)(1), 190.12(b)(2), 
190.12(c)(1), 190.12(c)(2), and 190.14(a), and 190.14(d). The second 
information collection includes third party disclosure requirements 
that are applicable on a regular basis to multiple respondents 
(i.e., multiple FCMs) provided for in Commission regulations 1.41, 
1.43 and 1.55(p).
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    Abstract: This collection of information involves the reporting, 
recordkeeping, and third party disclosure requirements set forth in the 
CFTC's bankruptcy regulations for commodity broker liquidations, 17 CFR 
part 190. These regulations apply to commodity broker liquidations 
under Chapter 7, Subchapter IV of the Bankruptcy Code.\2\ The reporting 
requirements include, for example, notices to the Commission regarding 
the filing of petitions for bankruptcy and notices to the Commission 
regarding the intention to transfer open commodity contracts in a 
commodity broker liquidation. The recordkeeping requirements include, 
for example, the statements of customer accounts that a trustee 
appointed for the purposes of a commodity broker liquidation (Trustee) 
must generate and adjust as set forth in the regulations. The third 
party disclosure requirements include, for example, the disclosure 
statement that a commodity broker must provide to its customers 
containing information regarding the manner in which customer property 
is treated under part 190 of the Commission's regulations in the event 
of a bankruptcy and, in the event of a commodity broker liquidation, 
certain notices that a Trustee must provide to customers and to the 
persons to whom commodity contracts and specifically identifiable 
customer property have been or will be transferred. The information 
collection requirements are necessary, and will be used, to facilitate 
the effective, efficient, and fair conduct of liquidation proceedings 
for commodity brokers and to protect the interests of customers in 
these proceedings both directly and by facilitating the participation 
of the CFTC in such proceedings. With respect to the collections of 
information, the CFTC invites comments on:
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    \2\ 11 U.S.C. 761 et seq.
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     Whether the proposed collection of information is 
necessary for the proper

[[Page 51316]]

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 the 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 
(FOIA), 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.\3\
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    \3\ 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 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 information collection requirements 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 FOIA.
    Burden Statement: The Commission notes that commodity broker 
liquidations occur at unpredictable and irregular intervals when 
particular commodity brokers become insolvent. While a commodity broker 
liquidation has not occurred in the past three years, the Commission 
took the conservative approach of maintaining the assumptions contained 
in the previous renewal of this information collection that, on 
average, a Futures Commission Merchant (``FCM'') commodity broker 
liquidation would occur every three years and that a Derivatives 
Clearing Organization (``DCO'') commodity broker liquidation would 
occur every fifty years. The Commission generally has retained the 
burden hour estimates set forth in the previous information collection 
as there have been no interim experiences nor are there currently 
apparent circumstances that would warrant altering those estimates. The 
Commission further notes, however, that the information collection 
burden will vary in particular commodity broker liquidations depending 
on the size of the commodity broker, the extent to which accounts are 
able to be quickly transferred, and other factors specific to the 
circumstances of the liquidation.
    The respondent burden for this information collection is estimated 
to be as follows: \4\
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    \4\ Because an FCM commodity broker liquidation is estimated to 
occur only once every three years, this information collection 
expresses such burdens in terms of those that would be imposed on 
one respondent during the three-year period.
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 Reporting--FCMs 5
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    \5\ The reporting requirements for FCMs are contained in 
Commission regulations 190.03(b)(1) and 190.03(b)(2).
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    Estimated Number of Respondents: 1.
    Estimated Annual Number of Responses per Respondent: 1.
    Estimated Total Annual Number of Responses: 1.
    Estimated Annual Number of Burden Hours per Respondent: 1.
    Estimated Total Annual Burden Hours: 1.
    Type of Respondents: FCM commodity brokers who have filed a 
petition in bankruptcy, Trustees.
    Frequency of Collection: On occasion.

 Recordkeeping--FCMs 6
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    \6\ The recordkeeping requirements for FCMs are contained in 
Commission regulations 190.05(b) and 190.05(d).
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    Estimated Number of Respondents: 1.
    Estimated Annual Number of Responses per Respondent: 26,666.67.
    Estimated Total Annual Number of Responses: 26,666.67.
    Estimated Annual Number of Burden Hours per Respondent: 266.67.
    Estimated Total Annual Burden Hours: 266.67.
    Type of Respondents: Trustees.
    Frequency of Collection: Only during the pendency of an FCM 
bankruptcy: daily and on occasion.

 Third Party Disclosures Applicable to a Single Respondent--
FCMs 7
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    \7\ These third party disclosure requirements are contained in 
Commission regulations 190.03(c)(1), 190.03(c)(2), 190.02(c)(4), and 
190.07(b)(5).
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    Estimated Number of Respondents: 1.
    Estimated Annual Number of Responses per Respondent: 10,003.32.
    Estimated Total Annual Number of Responses: 10,003.32.
    Estimated Annual Number of Burden Hours per Respondent: 1,336.66.
    Estimated Total Annual Burden Hours: 1,336.66.
    Type of Respondents: Trustees.
    Frequency of Collection: On occasion.

 Reporting--DCOs 8
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    \8\ The reporting requirements for DCOs are contained in 
Commission regulations 190.12(a)(2), 190.12(b)(1), 190.12(b)(2), 
190.12(c)(1), and 190.12(c)(2).
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    Estimated Number of Respondents: 9 1.
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    \9\ Because a DCO commodity broker liquidation is estimated to 
occur only once every fifty years, this information collection 
expresses such burdens in terms of those that would be imposed on 
one respondent during the fifty-year period.
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    Estimated Annual Number of Responses per Respondent: 1.
    Estimated Total Annual Number of Responses: 1.
    Estimated Annual Number of Burden Hours per Respondent: 2.98.
    Estimated Total Annual Burden Hours: 0.61.
    Type of Respondents: DCO commodity brokers who have filed a 
petition in bankruptcy, Trustees.
    Frequency of Collection: On occasion.

 Recordkeeping--DCOs 10
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    \10\ The recordkeeping requirements for DCOs are contained in 
Commission regulation 190.14(d).
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    Estimated Number of Respondents: 1.
    Estimated Annual Number of Responses per Respondent: 9.
    Estimated Total Annual Number of Responses: 9.
    Estimated Annual Number of Burden Hours per Respondent: 0.9.
    Estimated Total Annual Burden Hours: 0.9.
    Type of Respondents: Trustees.
    Frequency of Collection: Only during the pendency of a DCO 
bankruptcy: daily.

 Third Party Disclosures Applicable to a Single Respondent--
DCOs 11
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    \11\ The third-party disclosure requirements for DCOs are 
contained in Commission regulation 190.14(a).
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    Estimated Number of Respondents: 1.
    Estimated Annual Number of Responses per Respondent: 0.9.
    Estimated Total Annual Number of Responses: 0.9.
    Estimated Annual Number of Burden Hours per Respondent: 0.18.
    Estimated Total Annual Burden Hours: 0.18.
    Type of Respondents: Trustees.
    Frequency of Collection: On occasion.

 Third Party Disclosures Applicable to Multiple Respondents 
During Business as Usual 12
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    \12\ The third-party disclosure requirements that are applicable 
on a regular basis to multiple respondents (i.e., multiple FCMs) are 
contained in Commission regulations 1.41, 1.43 and 1.55(p).
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    Estimated Number of Respondents: 125.

[[Page 51317]]

    Estimated Annual Number of Responses per Respondent: 3,000.
    Estimated Total Annual Number of Responses: 375,000.
    Estimated Annual Number of Burden Hours per Respondent: 60.
    Estimated Total Annual Burden Hours: 7,500.
    Type of Respondents: FCMs.
    Frequency of Collection: On occasion.
    There are no new capital or start-up or operations costs associated 
with this information collection, nor are there any maintenance costs 
associated with this information collection.
    Authority: 44 U.S.C. 3501 et seq.

    Dated: June 12, 2024.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2024-13254 Filed 6-14-24; 8:45 am]
BILLING CODE 6351-01-P