2017-13243

Federal Register, Volume 82 Issue 121 (Monday, June 26, 2017)

[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]

[Rules and Regulations]

[Pages 28763-28770]

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

[FR Doc No: 2017-13243]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Parts 5, 11, 16, 17, 18, 19, 20, 21, 48, 140, and 150

RIN 3038-AE42

Commission Delegated Authority Provisions and Technical

Amendments

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

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SUMMARY: The Commodity Futures Trading Commission (the ``Commission''

or ``CFTC'') is adopting final rules to establish new and amend certain

existing delegations of authority to Commission staff. The Commission

is also adopting amendments to update statutory authority citations and

correct limited typographical and technical errors in certain rules.

DATES: This rule is effective June 26, 2017.

FOR FURTHER INFORMATION CONTACT: David Van Wagner, Chief Counsel,

Division of Market Oversight, (202) 418-5481, [email protected];

Jeanette Curtis, Special Counsel, Division of Market Oversight, (202)

418-5669, [email protected]; Gretchen L. Lowe, Chief Counsel, Division

of Enforcement, (202) 418-5379, [email protected]; or Edward Wehner, IT

Specialist, Office of Data and Technology, (202) 418-6764,

[email protected].

SUPPLEMENTARY INFORMATION:

I. Background

A. Commission Delegations of Authority

The Commission is adopting final rules to establish new and amend

certain existing delegations of authority to Commission staff.

Previously, the Commission delegated, to the Director of the Division

of Market Oversight (``DMO''), various authorities for implementing

certain Commission regulations.\1\ Many of these delegated authorities

have been carried out by staff in DMO's Surveillance Branch. However,

as a result of the recent Commission organizational restructuring,

which moved DMO's Surveillance Branch to the Division of Enforcement

(``DOE''), the Commission has completed a full review of DMO delegated

authorities and decided to remove certain delegated authorities from

the DMO Director, other division directors, and certain Commission

staff. The Commission is delegating such authorities to the Director of

DOE or the Director of the Office of Data and Technology (``ODT''). In

addition, the Commission is adding new delegations of authority to

certain of the part 48 provisions that govern the registration of

Foreign Boards of Trade (``FBOT'').

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\1\ 17 CFR 5.20(d), 11.2(a), 16.07, 18.03, 19.00(a)(3), 20.8,

21.05, 140.72(a), 140.73, 140.74, 140.97, 150.3(b), and 150.4(e)

(Commission delegations of authority to the DMO Director prior to

this final rule).

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B. Statutory Authority Citations and Technical Corrections

For certain regulations, the Commission is revising the statutory

authority citations to reflect the most current citation. On July 21,

2010, President Obama signed the Wall Street Reform and Consumer

Protection Act (the ``Dodd-Frank Act'') into law.\2\ Title VII of the

Dodd-Frank Act amended provisions of the Commodity Exchange Act

(``CEA'') \3\ to establish a comprehensive framework for the regulation

of swaps and security-based swaps. However, according to the Federal

Register drafting handbook, it is recommended that the Commission only

list the current United States Code (``U.S.C.'') citation when it is

available.\4\ As such, the Commission need only cite the Dodd-Frank Act

as the amending statutory authority for each rule part until such

amendments are codified in the U.S.C. Since the Dodd-Frank Act

provisions have been codified in the U.S.C., the Commission is revising

the citation authority preceding certain Commission regulations to

reflect the current U.S.C. citations.

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\2\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).

\3\ 7 U.S.C. 1 et seq. (2012).

\4\ See National Archives and Records Administration, Office of

the Federal Register, Document Drafting Handbook, section 3.12

(Authority citations), 3-26 (May 2017 update, Revision 2, June 7,

2017).

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In addition, the Commission is amending certain of its regulations

to revise a limited number of typographical and formatting errors, and

to delete a duplicate regulation.

II. Amended Regulations

A. Part 5

Part 5 of the Commission's regulations governs off-exchange foreign

currency transactions. Section 5.20(d) covers Commission delegated

authority to the DMO Director to make special calls for information on

controlled accounts from retail foreign exchange dealers, futures

commission merchants (``FCMs'') and introducing brokers (``IBs''), and

to make special calls for information on open contracts in accounts

carried or introduced by FCMs, IBs, and foreign brokers. The Commission

is amending its delegation of authority in Sec. 5.20(d) to remove the

DMO Director from its list of delegates and to delegate such authority

to the DOE Director, or such other employee or employees as the

Director may designate from time to time. The Commission is also

deleting the Dodd-Frank Act reference from the part 5 statutory

authority citation.

B. Part 11

Part 11 of the Commission's regulations establishes rules relating

to investigations. Section 11.2(a) delegates authority to the DOE

Director, the Director of the Division of Swap Dealer and Intermediary

Oversight (``DSIO''), the Director of the Division of Clearing and Risk

(``DCR''), the Director of DMO, the Chief Economist, and members of

their staffs acting within the scope of their respective

responsibilities, to

[[Page 28764]]

conduct investigations in particular matters. The Commission has

decided to delegate such investigatory authority to the DOE Director

and members of Commission staff acting pursuant to the Director's

authority and under the Director's direction to conduct investigations.

The Commission is amending its delegation of authority in Sec. 11.2(a)

to remove the Chief Economist and the Directors of DSIO, DCR and DMO

and their staff from its list of delegates. The Commission is also

updating the part 11 statutory authority citation to reflect the

correct numerical ordering of the statutory provisions cited.

C. Part 16

Part 16 of the Commission's regulations governs reports by

designated contract markets and swap execution facilities. Section

16.07(a) delegates authority to the DMO Director to determine the form,

manner and time of filing reports required in Sec. Sec. 16.00(b) and

16.01(d). Section 16.07(b) delegates authority to the DMO Director to

determine the format, coding structure and electronic data transmission

procedures used by reporting markets pursuant to Sec. Sec.

16.00(b)(1), 16.01(d)(1) and 16.06. The Commission is amending its

delegations of authority in Sec. 16.07(a) and (b) to remove the DMO

Director from its list of delegates and to delegate such authority to

the ODT Director, with the concurrence of the DMO Director, or such

other employee or employees as the Directors each may designate from

time to time. The Commission is also deleting the Dodd-Frank Act

reference from the part 16 statutory authority citation and updating

the part 16 statutory authority citation to reflect the correct

numerical ordering of the statutory provisions cited. The Commission is

also amending the outline formatting of Sec. 16.07.

D. Part 17

Part 17 of the Commission's regulations governs reports by

reporting markets, futures commission merchants, clearing members, and

foreign brokers. In Sec. 17.03, the Commission is adding a delegation

of authority, pursuant to Sec. 17.01(e), to the ODT Director, in

consultation with the DMO Director, or such other employee or employees

as the Directors each may designate from time to time, to issue

requests for Forms 102 and 71. The Commission is also making

typographical corrections to the time formatting in Sec. 17.02, and

deleting the Dodd-Frank Act reference from the part 17 statutory

authority citation.

E. Part 18

Part 18 of the Commission's regulations governs reports by certain

traders. Section 18.03 governs Commission delegated authority to the

DMO Director to issue special calls for certain reports and information

to be furnished by traders, and to request information related to the

maintenance of books and records. The Commission is amending its

delegation of authority in Sec. 18.03 to remove the DMO Director from

its list of delegates for issuing special calls for information

pursuant to Sec. Sec. 18.00 and 18.05, and to delegate such authority

to the DOE Director, or such other employee or employees as the

Director may designate from time to time. The Commission is also

amending its delegation of authority in Sec. 18.03 to remove the DMO

Director from its list of delegates for issuing special calls for

information pursuant to Sec. 18.04, and to delegate such authority to

the ODT Director, in consultation with the DMO Director, or such other

employee or employees as the Directors each may designate from time to

time. Finally, the Commission is deleting the Dodd-Frank Act reference

from the part 18 statutory authority citation.

F. Part 19

Part 19 of the Commission's regulations governs reports by persons

holding bona fide hedge positions, and by merchants and dealers in

cotton. Section 19.00(a)(3) governs Commission delegated authority to

the DMO Director to issue special calls for Series `04 reports (cash

market positions of large traders in cotton and grains). The Commission

is amending its delegation of authority in Sec. 19.00(a)(3) to remove

the DMO Director from its list of delegates and to delegate such

authority to the DOE Director, or such other employee or employees as

the Director may designate from time to time. The Commission is also

deleting the Dodd-Frank Act reference from the part 19 statutory

authority citation.

G. Part 20

Part 20 of the Commission's regulations governs large trader

reporting for physical commodity swaps. Section 20.8 governs Commission

delegated authority to the DMO Director to: Issue special calls for

certain forms, books and records; determine the form and manner of

reporting; and determine compliance schedules. The Commission is

amending its delegation of authority in Sec. 20.8 to remove the DMO

Director as its delegate for issuing Sec. 20.6(d) special calls for

books and records, and to delegate such authority to the DOE Director,

or such other employee or employees as the Director may designate from

time to time. The Commission is also amending its Sec. 20.8 delegation

of authority to remove the DMO Director as its delegate for issuing

Sec. 20.5 requests for 102S and 40S filings, and to delegate such

authority to the ODT Director, in consultation with the DMO Director,

or such other employee or employees as the Directors each may designate

from time to time. Finally, the Commission is amending its Sec. 20.8

delegation of authority to remove the DMO Director as its delegate for

determining the form and coding structure of reporting in Sec. 20.7,

and will delegate such authority to the ODT Director, with the

concurrence of the DMO Director, or such other employee or employees as

the Directors each may designate from time to time. Finally, the

Commission is also making typographical corrections to the time

formatting in Sec. 20.5, and deleting the Dodd-Frank Act reference

from the part 20 statutory authority citation.

H. Part 21

Part 21 of the Commission's regulations governs various types of

Commission special calls. Section 21.05 particularly governs Commission

delegated authority to the DMO Director to issue special calls for

information on certain controlled accounts and open interest contracts

in certain accounts. The Commission is amending its delegation of

authority in Sec. 21.05 to remove the DMO Director from its list of

delegates and to delegate such authority to the DOE Director, or such

other employee or employees as the Director may designate from time to

time. The Commission is also deleting the Dodd-Frank Act reference from

the part 21 statutory authority citation.

I. Part 48

Part 48 of the Commission's regulations governs the registration of

FBOTs. The Commission is amending the part 48 rules to add a new Sec.

48.11 that addresses delegations of authority to DMO. Section 48.11

will address delegations with respect to the following provisions:

1. Section 48.7 governs FBOT requirements for registration. The

Commission is delegating authority, pursuant to Sec. 48.7, for the DMO

Director and his designated staff to request additional information and

documentation in connection with an application for registration.

2. Section 48.9 governs the revocation of an FBOT's registration.

The Commission is delegating authority,

[[Page 28765]]

pursuant to Sec. 48.9(a)(1) and (c), for the DMO Director and his

designated staff to: (i) Notify an FBOT that, pursuant to Sec.

48.9(a)(1), the registered FBOT or the clearing organization has failed

to satisfy any registration requirements or conditions for

registration; and (ii) pursuant to Sec. 48.9(c), request that the FBOT

file a written demonstration, containing such supporting data,

information, and documents, in such form and manner and within such

timeframe as the Commission may specify, that the foreign board of

trade or clearing organization is in compliance with the registration

requirements and/or conditions for registration.

3. Section 48.10 requires that FBOTs that wish to make additional

contracts available to trade by members or participants located in the

United States with direct access to the FBOT's trade-matching system

must submit to the Commission a written request before offering the

additional contracts in the U.S. The FBOT can offer the additional

contracts for trading 10 business days after the Commission receives

the FBOT's written request unless the Commission notifies the FBOT that

additional time is needed to complete its review of policy or other

issues pertinent to the additional contracts. The Commission is

delegating authority, under Sec. 48.10, for the DMO Director and his

designated staff to, within the 10-day review period, notify an FBOT

whether additional time is needed to complete its review of policy or

other issues pertinent to the additional contracts, or that the

contract can be made available for trading by direct access.

J. Part 140

Part 140 of the Commission's regulations governs organization,

functions and procedures of the Commission. The Commission is making

the following amendments to the part 140 regulations.

1. Section 140.72, pertaining to delegation of authority to

disclose confidential information to a registered entity, swap

execution facility, swap data repository, registered futures

association or self-regulatory organization.

Currently, Sec. 140.72 delegates authority directly to the various

Commission Division directors and certain identified senior staff

positions to disclose confidential information. The Commission is

amending its delegation of authority in Sec. 140.72(a) to delegate

authority to Division directors and their designated staff members.

2. Section 140.73, pertaining to delegation of authority to

disclose information to United States, states, and foreign government

agencies and foreign futures authorities.

Currently, Sec. 140.73 delegates authority directly to the various

Commission Division directors and certain identified senior staff

positions to disclose confidential information. The Commission is

amending its delegation of authority in Sec. 140.72(a) to delegate

authority to Division directors and their designated staff members.

3. Section 140.74, pertaining to delegation of authority to issue

special calls for series 03 reports and Form 40.

The Commission is amending Sec. 140.74 to remove the delegation of

authority to the DMO Director, and to delegate such authority to the

DOE Director, or such other employee or employees as the Director may

designate from time to time, for issuing special calls for series 03

reports. The Commission is also amending Sec. 140.74 to delete a

duplicate rule provision regarding authority to issue special calls for

Form 40.

4. Section 140.97, pertaining to delegation of authority regarding

requests for classification of positions as bona fide hedging.

The Commission is amending Sec. 140.97 to remove the delegation of

authority to the DMO Director, and to delegate such authority to the

DOE Director, or such other employee or employees as the Director may

designate from time to time.

K. Part 150

Part 150 of the Commission's regulations governs limits on

positions. Sections 150.3(b) and 150.4(e) govern Commission delegated

authority to the DMO Director to issue calls for information related to

claims of exemptions from positions limits, certain position, trading

and business relationship information, and to determine the form,

coding structure and transmission procedures for submitting data. The

Commission is amending its special call delegation of authority in

Sec. Sec. 150.3(b) and 150.4(e) to remove the DMO Director from its

list of delegates and to delegate such authority to the DOE Director,

or such other employee or employees as the Director may designate from

time to time. The Commission is also amending its form and manner

delegation of authority in Sec. 150.4(e) to remove the DMO Director

from its list of delegates and to delegate such authority to the ODT

Director, with the concurrence of the DOE Director, or such other

employee or employees as the Directors each may designate from time to

time. The Commission is also deleting the Dodd-Frank Act reference from

the part 150 statutory authority citation.

III. Administrative Compliance

A. Administrative Procedure Act

The Administrative Procedure Act (``APA'') \5\ generally requires a

Federal agency to publish notice of a proposed rulemaking in the

Federal Register and to allow opportunity for public comment before

promulgating a final rule.\6\ This requirement does not apply, however,

to ``rules of agency organization, procedure, or practice.'' \7\ This

final rule makes conforming amendments to various Commission

regulations to reflect the recent organizational restructuring at the

Commission, including corresponding updates to Commission delegations

of authority to staff, which changes fit squarely into the category of

``rules of agency organization, procedure, or practice.'' \8\ This

final rule also corrects typographical errors and outdated statutory

references, which have no impact on substantive rights or obligations

under the CEA and are entirely ministerial and procedural in nature.

Therefore, this rulemaking is excepted from the public rulemaking

provisions of the APA.\9\ Conforming amendments to certain delegations

of authority to reflect organizational changes, updating of relevant

statutory authority and other technical corrections, will not cause any

party to undertake new or additional efforts to comply with the

regulations as revised. This final rule shall become effective upon

publication in the Federal Register.

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\5\ 5 U.S.C. 551 et seq.

\6\ 5 U.S.C. 553.

\7\ 5 U.S.C. 553(b)(A). Notice or hearing is not required in

these circumstances by the Commodity Exchange Act, 7 U.S.C. 1 et

seq.

\8\ Id.

\9\ 5 U.S.C. 553(b).

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B. Regulatory Flexibility Act

The Regulatory Flexibility Act requires the Commission to consider

whether the regulations it adopts will have a significant economic

impact on a substantial number of small entities.\10\ The Commission is

obligated to conduct a regulatory flexibility analysis for any rule for

which the agency publishes a general notice of proposed rulemaking

pursuant to section 553(b) of the APA.\11\ However, this rulemaking is

excepted from the public rulemaking provisions

[[Page 28766]]

of the APA.\12\ Accordingly, the Commission is not obligated to conduct

a regulatory flexibility analysis for this rulemaking.

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\10\ See 5 U.S.C. 601 et seq.

\11\ 5 U.S.C. 601(2).

\12\ 5 U.S.C. 553(b)(A) (``rules of agency organization,

procedure, or practice''); 5 U.S.C. 553(b)(B) (``agency for good

cause finds . . . that notice and public procedure thereon are . . .

unnecessary . . . .'').

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C. Paperwork Reduction Act

The Commission may not conduct or sponsor, and a respondent is not

required to respond to, a collection of information contained in a

rulemaking unless the information collection displays a currently valid

control number issued by the Office of Management and Budget (``OMB'')

pursuant to the Paperwork Reduction Act.\13\ This rulemaking contains

no collection of information that obligates the Commission to obtain a

control number from OMB.

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\13\ See 44 U.S.C. 3501 et seq.

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D. Cost-Benefit Considerations

1. Introduction

Section 15(a) of the CEA requires the Commission to consider the

costs and benefits of its actions before promulgating a regulation

under the CEA or issuing certain orders.\14\ 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 futures markets; (3) price discovery; (4) sound

risk management practices; and (5) other public interest

considerations. The Commission considers the costs and benefits

resulting from its discretionary determinations with respect to the

section 15(a) factors.

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\14\ 7 U.S.C. 19(a).

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The Commission is amending its delegations of authority in

Sec. Sec. 5.20(d), 11.2(a), 16.07, 18.03, 19.00(a)(3), 20.8, 21.05,

140.72(a), 140.73, 140.74, 140.97, 150.3(b) and 150.4(c), and in part

48. The Commission is also amending certain statutory citations in, and

making limited technical and typographical corrections to parts 5, 11,

16, 18, 19, 20, 21, 140, and 150. For assessing whether and to what

extent costs or benefits are likely to flow from the amendments, the

Commission is using the CEA and related regulations that currently

instruct market participants as to which delegated authorities may ask

for and receive requested information. The proposed amendments do not

change the status quo.

2. Costs

There are no costs to the industry or the public associated with

the amendments to certain Commission delegations of authority,

regulation statutory citations, or typographical errors in the

regulations.

3. Benefits

The Commission believes that market participants and the public

will benefit from these ministerial rule amendments since the updated

delegations of authority will reflect the Commission's ``mission to

identify and prosecute violations of law and regulation'' and ``foster

increased efficiencies through knowledge sharing and cross training

under unified leadership; thus benefitting the Commission's

surveillance mission and enforcement responsibilities.'' \15\ The

amendments will also benefit market participants and the public by

eliminating outdated statutory authority references in the regulation

text and making limited technical and typographical corrections.

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\15\ See Remarks of Acting Chairman J. Christopher Giancarlo

before the 42nd Annual International Futures Industry Conference in

Boca Raton, FL, CFTC: A New Direction Forward (March 15, 2017)

available at http://www.cftc.gov/PressRoom/SpeechesTestimony/opagiancarlo-20.

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4. Section 15(a) Factors

Protection of market participants and the public. The Commission

believes that correcting minor technical and typographical errors in

certain parts of its rules and updating certain delegations of

authority to accurately reflect recent organizational changes advances

its mission to protect market participants and the public.

Efficiency, competitiveness, and financial integrity of futures

markets. The Commission believes that the amendments will not

materially affect the efficiency, competitiveness, and financial

integrity of futures markets because the rule changes are ministerial

and do not affect the operations of markets.

Price discovery. The Commission believes that the amendments will

not materially affect the price discovery process because the rule

changes are ministerial and do not affect the operations of markets.

Sound risk management practices. The Commission believes that the

amendments will not materially affect sound risk management practices

because the rule changes are ministerial and do not affect how market

participants conduct risk management.

Other public interest considerations. The Commission has not

identified any other public interest consideration.

List of Subjects

17 CFR Part 5

Commodity futures, Consumer protection, Foreign currencies, Off-

exchange transactions, Reporting and recordkeeping requirements,

Securities, Trade practices.

17 CFR Part 11

Administrative practice and procedure, Investigations.

17 CFR Part 16

Contract markets, Reporting and recordkeeping requirements, Swap

execution facilities.

17 CFR Part 17

Brokers, Clearing members, Foreign brokers, Futures commission

merchants, Reporting and recordkeeping requirements, Reporting markets.

17 CFR Part 18

Reporting and recordkeeping requirements, Traders.

17 CFR Part 19

Bona fide hedge positions, Cotton, Grains, Merchants and dealers,

Reporting and recordkeeping requirements.

17 CFR Part 20

Administrative practice and procedure, Large traders, Physical

commodity swaps, Reporting and recordkeeping requirements.

17 CFR Part 21

Brokers, Reporting and recordkeeping requirements, Special calls.

17 CFR Part 48

Foreign boards of trade, Registration requirements, Reporting and

recordkeeping requirements.

17 CFR Part 140

Authority delegations (government agencies), Conflicts of interest,

Organization and functions (government agencies).

17 CFR Part 150

Cotton, Grains, Position limits.

For the reasons stated in the preamble, the Commodity Futures

Trading Commission amends 17 CFR chapter I as set forth below:

PART 5--OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS

0

1. The authority citation for part 5 is revised to read as follows:

Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h,

6i, 6k, 6m, 6n, 6o, 8, 9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21,

and 23.

[[Page 28767]]

0

2. In Sec. 5.20, revise paragraph (d) to read as follows:

Sec. 5.20 Special calls for account and transaction information.

* * * * *

(d) Delegation of authority to the Director of the Division of Swap

Dealer and Intermediary Oversight and the Director of the Division of

Enforcement. The Commission hereby delegates, until the Commission

orders otherwise, to the Director of the Division of Swap Dealer and

Intermediary Oversight and the Director of the Division of Enforcement,

or to the respective Director's designees, the authority set forth in

this section to make special calls for information on controlled

accounts from retail foreign exchange dealers, futures commission

merchants and from introducing brokers, and to make special calls for

information on open contracts in accounts carried or introduced by

futures commission merchants, introducing brokers, and foreign brokers.

Either Director may submit to the Commission for its consideration any

matter that has been delegated pursuant to this section. Nothing in

this section shall be deemed to prohibit the Commission, at its

election, from exercising the authority delegated in this section to

the Directors.

PART 11--RULES RELATING TO INVESTIGATIONS

0

3. The authority citation for part 11 is revised to read as follows:

Authority: 7 U.S.C. 4a(j), 9, 12, 12a(5) and 15.

0

4. In Sec. 11.2, revise paragraph (a) to read as follows:

Sec. 11.2 Authority to conduct investigations.

(a) The Director of the Division of Enforcement and members of the

Commission staff acting pursuant to his authority and under his

direction may conduct such investigations as he deems appropriate to

determine whether any persons have violated, are violating, or are

about to violate the provisions of the Commodity Exchange Act, as

amended, or the rules, regulations or orders adopted by the Commission

pursuant to that Act, or, in accordance with the provisions of section

12(f) of the Act, whether any persons have violated, are violating or

are about to violate the laws, rules or regulations relating to futures

or options matters administered or enforced by a foreign futures

authority, or whether an applicant for registration or designation

meets the requisite statutory criteria. For this purpose, the Director

may obtain evidence through voluntary statements and submissions,

through exercise of inspection powers over boards of trade, reporting

traders, and persons required by law to register with the Commission,

or when authorized by order of the Commission, through the issuance of

subpoenas. The Director shall report to the Commission the results of

his investigations and recommend to the Commission such enforcement

action as he deems appropriate.

* * * * *

PART 16--REPORTS BY CONTRACT MARKETS AND SWAP EXECUTION FACILITIES

0

5. The authority citation for part 16 is revised to read as follows:

Authority: 7 U.S.C. 2, 6a, 6c, 6g, 6i, 7, and 7b-3.

0

6. Revise Sec. 16.07 to read as follows:

Sec. 16.07 Delegation of authority to the Director of the Office of

Data and Technology and to the Director of the Division of Market

Oversight.

(a) The Commission hereby delegates, until the Commission orders

otherwise, the authority set forth in paragraphs (b) and (c) of this

section to the Director of the Office of Data and Technology, with the

concurrence of the Director of the Division of Market Oversight, or

such other employee or employees as the Directors each may designate

from time to time. The Commission hereby delegates, until the

Commission orders otherwise, the authority set forth in paragraph (d)

of this section to the Director of the Division of Market Oversight, to

be exercised by such Director or by such other employee or employees of

such Director as may be designated from time to time by the Director.

The Directors may submit to the Commission for its consideration any

matter which has been delegated in this paragraph. Nothing in this

paragraph prohibits the Commission, at its election, from exercising

the authority delegated in this paragraph.

(b) Pursuant to Sec. Sec. 16.00(b) and 16.01(d), as applicable,

the authority to, with the concurrence of the Director of the Division

of Market Oversight or the Director's delegate, determine whether

reporting markets must submit data in hard copy, and the time that such

data may be submitted where the Director determines that a reporting

market is unable to meet the requirements set forth in the regulations.

(c) Pursuant to Sec. Sec. 16.00(b)(1), 16.01(d)(1), and 16.06, the

authority to, with the concurrence of the Director of the Division

Market Oversight or the Director's delegate, approve the format, coding

structure and electronic data transmission procedures used by reporting

markets.

(d) Pursuant to Sec. 16.02, the authority to determine the

specific content of any daily trade and supporting data report, request

that such reports be accompanied by data that identifies or facilitates

the identification of each trader for each transaction or order

included in a submitted trade and supporting data report, and establish

the time for the submission of and the manner and format of such

reports.

PART 17--REPORTS BY REPORTING MARKETS, FUTURES COMMISSION

MERCHANTS, CLEARING MEMBERS, AND FOREIGN BROKERS

0

7. The authority citation for part 17 is revised to read as follows:

Authority: 7 U.S.C. 2, 6a, 6c, 6d, 6f, 6g, 6i, 6t, 7, 7a, and

12a.

0

8. In Sec. 17.02, revise paragraphs (b)(2)(i) and (ii) and (c)(2)(i)

and (ii) to read as follows:

Sec. 17.02 Form, manner and time of filing reports.

* * * * *

(b) * * *

(2) * * *

(i) The applicable reporting party shall submit a completed Form

102 to the Commission no later than 9 a.m. on the business day

following the date on which the special account becomes reportable, or

on such other date as directed by special call of the Commission or its

designee, and as periodically required thereafter by paragraphs (b)(3)

and (4) of this section. Such form shall include all required

information, including the names of the owner(s) and controller(s) of

each trading account that is not an omnibus account, and that comprises

a special account reported on the form, provided that, with respect to

such owners(s) and controller(s), information other than the names of

such parties may be reported in accordance with the instructions and

schedule set forth in paragraph (b)(2)(ii) of this section. Unless

otherwise specified by the Commission or its designee, the stated time

is Eastern Time for information concerning markets located in that time

zone, and Central Time for information concerning all other markets.

(ii) With respect to the owner(s) and controller(s) of each trading

account that is not an omnibus account, and that comprises a special

account reported on Form 102, information other than the names of such

parties must be provided on Form 102 no later than 9 a.m. on the third

business day following the date on which the special account becomes

[[Page 28768]]

reportable, or on such other date as directed by special call of the

Commission or its designee, and as periodically required thereafter by

paragraphs (b)(3) and (4) of this section. Unless otherwise specified

by the Commission or its designee, the stated time is Eastern Time for

information concerning markets located in that time zone, and Central

Time for information concerning all other markets.

* * * * *

(c) * * *

(2) * * *

(i) The clearing member shall submit a completed Form 102 to the

Commission no later than 9 a.m. on the business day following the date

on which the volume threshold account becomes reportable, or on such

other date as directed by special call of the Commission or its

designee, and as periodically required thereafter by paragraphs (c)(3)

and (4) of this section. Such form shall include all required

information, including the names of the owner(s) and controller(s) of

each volume threshold account reported on the form that is not an

omnibus account, provided that, with respect to such owners(s) and

controller(s), information other than the names of such parties may be

reported in accordance with the instructions and schedule set forth in

paragraph (c)(2)(ii) of this section. Unless otherwise specified by the

Commission or its designee, the stated time is Eastern Time for

information concerning markets located in that time zone, and Central

Time for information concerning all other markets.

(ii) With respect to the owner(s) and controller(s) of each volume

threshold account reported on Form 102 that is not an omnibus account,

information other than the names of such parties must be provided on

Form 102 no later than 9 a.m. on the third business day following the

date on which the volume threshold account becomes reportable, or on

such other date as directed by special call of the Commission or its

designee, and as periodically required thereafter by paragraphs (c)(3)

and (4) of this section. Unless otherwise specified by the Commission

or its designee, the stated time is Eastern Time for information

concerning markets located in that time zone, and Central Time for

information concerning all other markets.

* * * * *

0

9. In Sec. 17.03, revise paragraphs (e), (f), and (g) and add

paragraph (h) to read as follows:

Sec. 17.03 Delegation of authority to the Director of the Office of

Data and Technology or the Director of the Division of Market

Oversight.

* * * * *

(e) Pursuant to Sec. 17.01(c), the authority shall be designated

to the Director of the Office of Data and Technology, in consultation

with the Director of the Division of Market Oversight, or such other

employee or employees as the Directors each may designate from time to

time, to make special calls on Form 71 for omnibus volume threshold

account originators and omnibus reportable sub-account originators

information as set forth in Sec. 17.01(c).

(f) Pursuant to Sec. 17.01(e), the authority shall be designated

to the Director of the Office of Data and Technology, in consultation

with the Director of the Division of Market Oversight, or such other

employee or employees as the Directors each may designate from time to

time, to request information required to be filed by futures commission

merchants, clearing members, foreign brokers, and reporting markets as

set forth in Sec. 17.01.

(g) Pursuant to Sec. 17.02(b)(4), the authority shall be

designated to the Director of the Division of Market Oversight to

determine the date on which each futures commission merchant, clearing

member, or foreign broker shall update or otherwise resubmit every Form

102 that it has submitted to the Commission for each of its special

accounts.

(h) Pursuant to Sec. 17.02(c)(4), the authority shall be

designated to the Director of the Division of Market Oversight to

determine the date on which each clearing member shall update or

otherwise resubmit every Form 102 that it has submitted to the

Commission for each of its volume threshold accounts.

PART 18--REPORTS BY TRADERS

0

10. The authority citation for part 18 is revised to read as follows:

Authority: 7 U.S.C. 2, 4, 5, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 6t,

12a, and 19.

0

11. Revise Sec. 18.03 to read as follows:

Sec. 18.03 Delegation of authority.

(a) The Commission hereby delegates, until the Commission orders

otherwise, the authority to make special calls on traders for

information as set forth in Sec. Sec. 18.00 and 18.05 to the Director

of the Division of Enforcement, or such other employee or employees as

the Director may designate from time to time.

(b) The Commission hereby delegates, until the Commission orders

otherwise, the authority to make special calls for information as set

forth in Sec. 18.04 to the Director of the Office of Data and

Technology to be exercised by the Director, in consultation with the

Director of the Division of Market Oversight, or such other employee or

employees as the Directors each may designate from time to time.

(c) The Directors of the Division of Enforcement and Office of Data

and Technology may submit to the Commission for its consideration any

matter which has been delegated in this section.

(d) Nothing in this section prohibits the Commission, at its

election, from exercising the authority delegated in this section.

PART 19--REPORTS BY PERSONS HOLDING BONA FIDE HEDGE POSITIONS

PURSUANT TO Sec. 1.3(z) OF THIS CHAPTER AND BY MERCHANTS AND

DEALERS IN COTTON

0

12. The authority citation for part 19 is revised to read as follows:

Authority: 7 U.S.C. 6g(a), 6i, and 12a(5).

0

13. In Sec. 19.00, revise paragraph (a)(3) to read as follows:

Sec. 19.00 General provisions.

(a) * * *

(3) All persons holding or controlling positions for future

delivery that are reportable pursuant to Sec. 15.00(p)(1) of this

chapter who have received a special call for series `04 reports from

the Commission or its designee. Filings in response to a special call

shall be made within one business day of receipt of the special call

unless otherwise specified in the call. For the purposes of this

paragraph, the Commission hereby delegates to the Director of the

Division of Enforcement, or such other employee or employees as the

Director may designate from time to time, authority to issue calls for

series `04 reports.

* * * * *

PART 20--LARGE TRADER REPORTING FOR PHYSICAL COMMODITY SWAPS

0

14. The authority citation for part 20 is revised to read as follows:

Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6c, 6f, 6g, 6t, 12a, 19.

0

15. In Sec. 20.5, revise paragraphs (a)(4) and (b) to read as follows:

Sec. 20.5 Series S filings.

(a) * * *

(4) Change updates. If any change causes the information filed by a

clearing member or swap dealer on a Form 102 for a consolidated account

to

[[Page 28769]]

no longer be accurate, then such clearing member or swap dealer shall

file an updated Form 102 with the Commission no later than 9 a.m. on

the business day after such change occurs, or on such other date as

directed by special call of the Commission, provided that, a clearing

member or swap dealer may stop providing change updates for a Form 102

that it has submitted to the Commission for any consolidated account

upon notifying the Commission or its designee that the account in

question is no longer reportable as a consolidated account and has not

been reportable as a consolidated account for the past six months.

Unless otherwise specified by the Commission or its designee, the

stated time is Eastern Time for information concerning markets located

in that time zone, and Central Time for information concerning all

other markets.

* * * * *

(b) 40S filing. Every person subject to books or records

requirement under Sec. 20.6 shall after a special call upon such

person by the Commission file with the Commission a 40S filing at such

time and place as directed in the call. A 40S filing shall consist of

the submission of a Form 40, which shall be completed by such person as

if any references to futures or option contracts were references to

paired swaps or swaptions as defined in Sec. 20.1.

0

16. Revise Sec. 20.8 to read as follows:

Sec. 20.8 Delegation of authority.

(a) The Commission hereby delegates, until it orders otherwise, to

the Director of the Division of Enforcement, or such other employee or

employees as the Director may designate from time to time, the

authority in Sec. 20.6(d) for issuing a special call.

(b) The Commission hereby delegates, until it orders otherwise, to

the Director of the Division of Market Oversight or such other employee

or employees as the Director may designate from time to time, the

authority in Sec. 20.10 for determining the described compliance

schedules.

(c) The Commission hereby delegates, until it orders otherwise, to

the Director of the Office of Data and Technology, in consultation with

the Director of the Division of Market Oversight, or such other

employee or employees as the Directors each may designate from time to

time, the authority:

(1) In Sec. 20.5(a)(3) for issuing a special call for a 102S

filing; and

(2) In Sec. 20.5(b) for issuing a special call for a 40S filing.

(d) The Commission hereby delegates, until it orders otherwise, to

the Director of the Office of Data and Technology, with the concurrence

of the Director of the Division of Market Oversight, or such other

employee or employees as the Directors each may designate from time to

time, the authority, in Sec. 20.7, for providing instructions or

determining the format, coding structure, and electronic data

transmission procedures for submitting data records and any other

information required under this part.

(e) The Directors of the Division of Enforcement, Division of

Market Oversight, and the Office of Data and Technology may submit to

the Commission for its consideration any matter which has been

delegated in this section.

(f) Nothing in this section prohibits the Commission, at its

election, from exercising the authority delegated in this section.

PART 21--SPECIAL CALLS

0

17. The authority citation for part 21 is revised to read as follows:

Authority: 7 U.S.C. 1a, 2, 2a, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m,

6n, 7, 7a, 12a, 19 and 21.

0

18. Revise Sec. 21.05 to read as follows:

Sec. 21.05 Delegation of authority.

The Commission hereby delegates, until the Commission orders

otherwise, the special call authority set forth in Sec. Sec. 21.01 and

21.02 to the Director of the Division of Enforcement, or such other

employee or employees as the Director may designate from time to time.

The Director of the Division of Enforcement may submit to the

Commission for its consideration any matter which has been delegated in

this paragraph. Nothing in this section shall be deemed to prohibit the

Commission, at its election, from exercising the authority delegated in

this section.

PART 48--REGISTRATION OF FOREIGN BOARDS OF TRADE

0

19. The authority citation for part 48 continues to read as follows:

Authority: 7 U.S.C. 5, 6 and 12a, unless otherwise noted.

0

20. Add Sec. 48.11 to read as follows:

Sec. 48.11 Delegation of authority.

(a) The Commission hereby delegates, until it orders otherwise, to

the Director of the Division of Market Oversight, or such other

employee or employees as the Director may designate from time to time,

the authority:

(1) In Sec. 48.7, to request additional information and

documentation in connection with an application for registration;

(2) In Sec. 48.9(a)(1), to notify a registered foreign board of

trade that it or the clearing organization has failed to satisfy any

registration requirements or conditions for registration;

(3) In Sec. 48.9(c), to request that a registered foreign board of

trade file with the Commission a written demonstration, containing such

supporting data, information, and documents, in such form and manner

and within such timeframe as the Commission may specify, that the

foreign board of trade or clearing organization is in compliance with

the registration requirements and/or conditions for registration; and

(4) In Sec. 48.10, to notify a foreign board of trade whether

additional time is needed for staff to complete its review of policy or

other issues pertinent to the additional contracts, or that the

contract can be made available for trading by direct access.

(b) The Director of the Division of Market Oversight may submit to

the Commission for its consideration any matter which has been

delegated in this section.

(c) Nothing in this section prohibits the Commission, at its

election, from exercising the authority delegated in this section.

PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION

0

21. The authority citation for part 140 continues to read as follows:

Authority: 7 U.S.C. 2(a)(12), 12a, 13(c), 13(d), 13(e), and

16(b).

0

22. In Sec. 140.72, revise paragraph (a) to read as follows:

Sec. 140.72 Delegation of authority to disclose confidential

information to a registered entity, swap execution facility, swap data

repository, registered futures association or self-regulatory

organization.

(a) Pursuant to the authority granted under sections 2(a)(11),

8a(5) and 8a(6) of the Act, the Commission hereby delegates, until such

time as the Commission orders otherwise, to the Executive Director, the

Director of the Division of Swap Dealer and Intermediary Oversight, the

Director of the Division of Clearing and Risk, the Chief Accountant,

the General Counsel, the Director of the Division of Market Oversight,

the Director of the Division of Enforcement, the Chief Economist of the

Office of the Chief Economist, the Director of the Office of

International Affairs, or such other employee or employees as the

General Counsel, Directors, Chief Accountant or Chief Economist each

may designate from

[[Page 28770]]

time to time, the authority to disclose to an official of any

registered entity, swap execution facility, swap data repository,

registered futures association, or self-regulatory organization as

defined in section 3(a)(26) of the Securities Exchange Act of 1934, any

information necessary or appropriate to effectuate the purposes of the

Act, including, but not limited to, the full facts concerning any

transaction or market operation, including the names of the parties

thereto. This authority to disclose shall be based on a determination

that the transaction or market operation disrupts or tends to disrupt

any market or is otherwise harmful or against the best interests of

producers, consumers, or investors or that disclosure is necessary or

appropriate to effectuate the purposes of the Act.

* * * * *

0

23. In Sec. 140.73, revise paragraph (a) introductory text to read as

follows:

Sec. 140.73 Delegation of authority to disclose information to

United States, States, and foreign government agencies and foreign

futures authorities.

(a) Pursuant to sections 2(a)(11), 8a(5) and 8(e) of the Act, the

Commission hereby delegates, until such time as the Commission orders

otherwise, to the General Counsel, the Director of the Division of

Enforcement, the Director of the Division of Market Oversight, the

Director of the Division of Swap Dealer and Intermediary Oversight, the

Director of the Division of Clearing and Risk, the Chief Economist of

the Office of the Chief Economist, the Director of the Office of

International Affairs, or such other employee or employees as the

General Counsel, Chief Economist or Directors listed in this section

each may designate from time to time the authority to furnish

information in the possession of the Commission obtained in connection

with the administration of the Act, upon written request, to:

* * * * *

0

24. Revise Sec. 140.74 to read as follows:

Sec. 140.74 Delegation of authority to issue special calls for

Series 03 Reports.

(a) The Commodity Futures Trading Commission hereby delegates,

until such time as the Commission orders otherwise, to the Director of

the Division of Enforcement, or such other employee or employees as the

Director may designate from time to time, the authority to issue

special calls for series 03 reports under Sec. 18.00 of this chapter.

(b) The Director of the Division of Enforcement may submit any

matter which has been delegated to the Director under this section to

the Commission for its consideration.

(c) Nothing in this section may prohibit the Commission, at its

election, from exercising the authority delegated to the Director of

the Division of Enforcement under paragraph (a) of this section.

0

25. Revise Sec. 140.97 to read as follows:

Sec. 140.97 Delegation of authority regarding requests for

classification of positions as bona fide hedging.

(a) The Commodity Futures Trading Commission hereby delegates,

until such time as the Commission orders otherwise, to the Director of

the Division of Enforcement, or such other employee or employees as the

Director may designate from time to time, all functions reserved to the

Commission in Sec. Sec. 1.47 and 1.48 of this chapter.

(b) The Director of the Division of Enforcement may submit any

matter which has been delegated to the Director under paragraph (a) of

this section to the Commission for its consideration.

(c) Nothing in this section may prohibit the Commission, at its

election, from exercising the authority delegated to the Director of

the Division of Enforcement under paragraph (a) of this section.

PART 150--LIMITS ON POSITIONS

0

26. The authority citation for part 150 is revised to read as follows:

Authority: 7 U.S.C. 6a, 6c, and 12a(5).

0

27. In Sec. 150.3, revise paragraph (b) to read as follows:

Sec. 150.3 Exemptions.

* * * * *

(b) Call for information. Upon call by the Commission or the

Director of the Division of Enforcement, or such other employee or

employees as the Director may designate from time to time, any person

claiming an exemption from speculative position limits under this

section must provide to the Commission or the Division of Enforcement

such information as specified in the call relating to the positions

owned or controlled by that person; trading done pursuant to the

claimed exemption; the futures, options or cash market positions which

support the claim of exemption; and the relevant business relationships

supporting a claim of exemption.

0

28. In Sec. 150.4, revise paragraph (e) to read as follows:

Sec. 150.4 Aggregation of positions.

* * * * *

(e) Delegation of authority. (1) The Commission hereby delegates,

until it orders otherwise, to the Director of the Division of

Enforcement, or such other employee or employees as the Director may

designate from time to time, the authority:

(i) In paragraph (b)(8)(iv) of this section to call for additional

information from a person claiming the exemption in paragraph (b)(8) of

this section.

(ii) In paragraph (c)(3) of this section to call for additional

information from a person claiming an aggregation exemption under this

section.

(2) The Commission hereby delegates, until it orders otherwise, to

the Director of the Office of Data and Technology, with the concurrence

of the Director of the Division of Enforcement, or such other employee

or employees as the Directors each may designate from time to time, the

authority in paragraph (d) of this section to provide instructions or

determine the format, coding structure, and electronic data

transmission procedures for submitting data records and any other

information required under this part.

(3) The Directors of the Division of Enforcement and the Office of

Data and Technology may submit to the Commission for its consideration

any matter which has been delegated in this section.

(4) Nothing in this section prohibits the Commission, at its

election, from exercising the authority delegated in this section.

Issued in Washington, DC, on June 20, 2017, by the Commission.

Christopher J. Kirkpatrick,

Secretary of the Commission.

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

Federal Regulations.

Appendix to Commission Delegated Authority Provisions and Technical

Amendments--Commission Voting Summary

On this matter, Acting Chairman Giancarlo and Commissioner Bowen

voted in the affirmative. No Commissioner voted in the negative.

[FR Doc. 2017-13243 Filed 6-23-17; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: June 26, 2017