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2012-23496

  • Federal Register, Volume 77 Issue 185 (Monday, September 24, 2012)[Federal Register Volume 77, Number 185 (Monday, September 24, 2012)]

    [Notices]

    [Pages 58814-58816]

    From the Federal Register Online via the Government Printing Office [www.gpo.gov]

    [FR Doc No: 2012-23496]

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    COMMODITY FUTURES TRADING COMMISSION

    Privacy Act of 1974 System of Records Notice

    AGENCY: Commodity Futures Trading Commission

    ACTION: Notice; publication of character of a revised system of

    records.

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    SUMMARY: The Commodity Futures Trading Commission (Commission) is

    revising a system of records under the Privacy Act of 1974, CFTC-15,

    Large Trader Report Files (Integrated Surveillance System), and

    renaming the system ``Enterprise Surveillance, Oversight & Risk

    Monitoring System'' to be more descriptive of its contents and

    enhancements.

    DATES: Comments must be received on or before October 24, 2012. This

    action will be effective without further notice on November 5, 2012,

    unless revised pursuant to comments received.

    ADDRESSES: You may submit comments identified by ``Enterprise

    Surveillance, Oversight & Risk Monitoring System SORN'' by any of the

    following methods:

    Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments

    through the Web site.

    Federal eRulemaking Portal: Comments may be submitted at

    http://www.regulations.gov. Follow the instructions for submitting

    comments.

    Mail: 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

    www.cftc.gov. You should submit only information that you wish to make

    available publicly. If you wish the Commission to consider information

    that you believe is exempt from disclosure under the Freedom of

    Information Act, a petition for confidential treatment of the exempt

    information may be submitted according to the procedures established in

    Sec. 145.9 of the Commission's regulations, 17 CFR 145.9.

    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 public comment file

    and will be considered as required under all applicable laws, and may

    be accessible under the Freedom of Information Act.

    FOR FURTHER INFORMATION CONTACT: Kathy Harman-Stokes, Chief Privacy

    Officer, kharman-stokes@cftc.gov, 202-418-6629, Office of the Executive

    Director, Commodity Futures Trading Commission, Three Lafayette Centre,

    1155 21st Street NW., Washington, DC 20581.

    SUPPLEMENTARY INFORMATION:

    I. 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 other personal identifier. The Privacy Act

    establishes the means by which government agencies must collect,

    maintain, and use personally identifiable information associated with

    an individual in a government system of records.

    Each government agency is required to publish a notice in the

    Federal Register of a system of records in which the agency identifies

    and describes each system of records it maintains, the reasons why the

    agency uses the personally identifying 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 to determine if the system contains information about them, among

    other things.

    [[Page 58815]]

    II. Routine Uses

    Information in the systems of records covered by this Federal

    Register notice may be disclosed in accordance with the blanket routine

    uses numbered 1 through 19 published at 76 FR 5974 (Feb. 2, 2011).

    These blanket routine uses apply to all CFTC systems of records, except

    as otherwise provided in a specific system of records notice.

    III. Enterprise Surveillance, Oversight & Risk Monitoring System

    The Commission proposes to revise a system of records, CFTC-15

    ``Large Trader Report Files (Integrated Surveillance System),'' and

    rename the system as ``Enterprise Surveillance, Oversight & Risk

    Monitoring System.'' The notice revises the description of the system

    and enhancements to more broadly cover the Commission's market

    oversight, and market, risk and financial surveillance activities. The

    data covered by this expanded system includes records required to

    monitor the commodity futures and swaps markets, perform various

    mission-critical commodity futures and swaps market analyses, review

    activities of registered entities for compliance with the Commodity

    Exchange Act and Commission rules, and conduct surveillance on both

    intra and inter-exchange and across side-by-side electronic trading

    platforms.

    Enterprise Surveillance, Oversight & Risk Monitoring System

    SYSTEM NUMBER:

    CFTC-15.

    SYSTEM NAME:

    Enterprise Surveillance, Oversight & Risk Monitoring System

    SECURITY CLASSIFICATION:

    Unclassified.

    SYSTEM LOCATION:

    The electronic systems that comprise the Enterprise Surveillance,

    Oversight & Risk Monitoring System are located at the Commodity Futures

    Trading Commission, Three Lafayette Centre, 1155 21st Street NW.,

    Washington, DC 20581.

    CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:

    Individuals who own, hold, or control a reportable position, volume

    threshold account, or reportable sub-account, individuals who have

    reporting, regulatory, or oversight responsibility at firms regulated

    by the Commission, and individuals requesting exemptions, as defined in

    17 CFR parts 17, 18, 19, 20, 39 and 151, including but not limited to

    individuals who process reportable positions, volume threshold

    accounts, or reportable sub-accounts and/or submit information related

    to such positions, accounts, or sub-accounts to the Commission;

    employees, officers or agents of registered derivatives clearing

    organizations (DCOs); and individuals whose cleared positions are

    reported by a DCO pursuant to Commission regulations.

    CATEGORIES OF RECORDS IN THE SYSTEM: \1\

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    \1\ On July 26, 2012, the Commission published a Notice of

    Proposed Rulemaking, which proposes new rules and related forms for

    public comment that are designed to enhance the Commission's

    identification of futures and swap market participants. The proposed

    rules would leverage the Commission's existing position and

    transaction reporting programs by requiring the electronic

    submission of trader identification and market participant data on

    amended Forms 102 and 40, and on new Form 71. See Federal Register

    Vol. 77, No. 144, July 26, 2012, RIN 3038-AD31, Ownership and

    Control Reports, Forms 102/102S, 40/40S, and 71.

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    1. Reports filed by the individual who owns, holds or controls the

    reportable position, volume threshold account, or reportable sub-

    account:

    a. Statements of Reporting Trader (CFTC Forms 40 and 40S).

    b. Information reported on CFTC Form 40 is described in part 18 of

    the Commission's rules and regulations.

    c. Large trader reporting form (Series 04 Form).

    2. Reports to be filed by futures commission merchants, designated

    contract markets, clearing members and other members of contract

    markets, originating firms, foreign brokers, swap dealers, and, for

    large option traders, by contract markets:

    a. Identification of ``Special Accounts'' (CFTC Form 102A).

    b. Identification of ``Volume Threshold Accounts'' (CFTC Form

    102B).

    c. Identification of ``Omnibus Volume Threshold Accounts'' and

    ``Reportable Sub-Accounts'' (CFTC Form 71).

    d. Information reported on CFTC Forms 102A, 102B and 71 is

    described in part 17 of the Commission's rules and regulations.

    e. Identification and Reporting of a Swap Counterparty or Customer

    ``Consolidated Account'' with a Reportable Position (CFTC Form 102S).

    f. Information reported on CFTC Form 102S is described in part 20

    of the Commission's rules and regulations.

    g. Large trader reporting form (Series 01 Form).

    3. Computer records prepared from information on the forms

    described in items (1) and (2) above.

    4. Other information submitted to the Commission by the covered

    individuals via registration channels or gathered by the Commission to

    review compliance with the Commodity Exchange Act and Commission rules.

    5. Correspondence and memoranda of telephone conversations between

    the Commission and the individual or between the Commission and other

    agencies dealing with matters of official business concerning the

    covered individual.

    6. Regulatory report filings, regulatory notice filings and

    correspondence and memoranda with individuals concerning such filings.

    7. Records containing contact information on individuals associated

    with registration applicants or registered firms or other entities,

    including business, home and cell phone numbers, email addresses and

    home addresses.

    8. Other miscellaneous information, including intra-agency

    correspondence and memoranda concerning the individual and documents

    relating to official actions taken by the Commission against the

    individual.

    9. Reports by DCOs of cleared positions of clearing member

    customers.

    10. Information related to hedge exemptions and requests for

    disaggregation and re-aggregation in accordance with Part 151 of the

    Commission's rules.

    AUTHORITY FOR MAINTENANCE OF THE SYSTEM:

    The Commodity Exchange Act, 7 U.S.C. 1 et seq., including Sections

    4g, 4i, 8, 7 U.S.C. 4t, 6g, 6i, 12, 2(d), 76 FR 43851 Section 20 and

    the rules and regulations promulgated thereunder.

    PURPOSE(S):

    The records in this system are used to support market oversight,

    and market, risk and financial surveillance activities, specifically,

    monitoring the commodity futures and swaps markets, performing various

    mission-critical commodity futures, and swaps market analyses,

    reviewing activities of registered entities for compliance with the

    Commodity Exchange Act and Commission regulations, and conducting

    surveillance on both intra and inter-exchange and across side-by-side

    electronic trading platforms. Records are also used to support firm and

    registrant oversight, including compliance with the Commission's

    financial and regulatory requirements.

    ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES

    OF USERS AND THE PURPOSES OF SUCH USES:

    Information concerning firms, traders and their activities may be

    disclosed and made public by the Commission to

    [[Page 58816]]

    the extent permitted by law when deemed appropriate to further the

    practices and policies of the Commodity Exchange Act. When not

    otherwise prohibited by law, information in this system may also be

    disclosed in accordance with the blanket routine uses numbered 1

    through 19 that appear at the beginning of the Commission's compilation

    of its systems of records notices.

    DISCLOSURE TO CONSUMER REPORTING AGENCIES:

    None.

    POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESS CONTROLS,

    SAFEGUARDS, RETAINING, AND DISPOSING OF RECORDS IN THE SYSTEM:

    STORAGE:

    The data will be collected and maintained electronically and/or in

    paper files. Paper records are stored in file folders, binders,

    computer files and computer disks. Electronic records, including

    computer files and electronically maintained data, are stored on the

    Commission's network and other electronic media as needed, such as

    encrypted hard drives.

    RETRIEVABILITY:

    Files may be retrieved by firm or registrant name, individual name

    or other identifier (e.g., account number or firm number) related to

    the individual.

    ACCESS CONTROLS, SAFEGUARDS:

    Records are protected from unauthorized access and improper use

    through administrative, technical and physical security measures.

    Technical security measures within CFTC include restrictions on

    computer access to authorized individuals, strong passwords that are

    frequently changed, use of encryption for certain data types and

    transfers, and regular review of security procedures and best practices

    to enhance security. Physical measures include restrictions on building

    access to authorized individuals and maintenance of records in lockable

    offices and filing cabinets.

    RETENTION AND DISPOSAL:

    The records will be maintained in accordance with records

    disposition schedules approved by the National Archives and Records

    Administration. The schedules are available at www.cftc.gov.

    SYSTEM MANAGER(S) AND ADDRESS:

    Chief Information Officer, Office of Data and Technology, Commodity

    Futures Trading Commission, Three Lafayette Centre, 1155 21st Street

    NW., Washington, DC 20581.

    NOTIFICATION PROCEDURE:

    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, or contesting the content

    of records about themselves contained in this system of records should

    address written inquiry to the Office of General Counsel, Paralegal

    Specialist, Commodity Futures Trading Commission, Three Lafayette

    Centre, 1155 21st Street NW., Washington, DC 20581. Telephone (202)

    418-5011.

    RECORD SOURCE CATEGORIES:

    Individuals, agencies, firms, Exchanges, DCOs and Designated Self-

    Regulatory Organizations will provide the information for this system

    of records, which includes correspondence from individuals, agencies,

    firms, Exchanges, DCOs and Designated Self-Regulatory Organizations

    requested to provide information on the individual.

    EXEMPTIONS CLAIMED FOR THIS SYSTEM:

    None.

    Issued in Washington, DC, on this 19th day of September, by the

    Commission.

    Sauntia S. Warfield,

    Assistant Secretary of the Commission.

    [FR Doc. 2012-23496 Filed 9-21-12; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: September 24, 2012