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2017-08559

  • Federal Register, Volume 82 Issue 81 (Friday, April 28, 2017)

    [Federal Register Volume 82, Number 81 (Friday, April 28, 2017)]

    [Notices]

    [Pages 19663-19665]

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

    [FR Doc No: 2017-08559]

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    COMMODITY FUTURES TRADING COMMISSION

    Agency Information Collection Activities: Proposed Collection

    Revision, Comment Request: Adoption of Revised Registration Form 8-R

    and Cancellation of Form 3-R

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.

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

    ``Commission'') is announcing an opportunity for public comment on the

    proposed revision to the collection of certain information by the

    Commission. Under the Paperwork Reduction Act (``PRA''), Federal

    agencies are required to publish notice in the Federal Register

    concerning each proposed collection of information and to allow 60 days

    for public comment. The Commission revised its Form 8-R, the

    application form that individuals use to register with the Commission

    or to be listed as a principal. This notice solicits comments on the

    PRA implications of the revisions to Form 8-R, including comments that

    address the burdens associated with the modified information collection

    requirements of the revised Form 8-R. Additionally, this notice also

    solicits comments on the PRA implications of reassigning the burdens

    associated with the information collections requirements of Commission

    Form 3-R, which is no longer used, to Commission Forms 7-R and 8-R.

    DATES: Comments must be submitted on or before June 27, 2017.

    ADDRESSES: You may submit comments, identified by ``OMB control numbers

    3038-0023 and 3038-0072; Adoption of Revised Registration Form 8-R and

    Cancellation of Form 3-R,'' by any of the following methods:

    The Commission's Web site, via its Comments Online process

    at http://comments.cftc.gov/. Follow the instructions for submitting

    comments through the Web site.

    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.

    Federal eRulemaking Portal: http://www.regulations.gov/.

    Follow the instructions for submitting comments through the Portal.

    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

    http://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 Regulation 145.9.\1\

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    \1\ 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 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 information collection request will be retained in

    the public comment file and will be considered as required under the

    Administrative Procedure Act and other applicable laws, and may be

    accessible under the Freedom of Information Act.

    FOR FURTHER INFORMATION CONTACT: Laura Gardy, Associate Director, (202)

    418-7645, lgardy@cftc.gov; or August A. Imholtz III, Special Counsel,

    (202) 418-5140, aimholtz@cftc.gov, Division of Swap Dealer and

    Intermediary Oversight, Commodity Futures Trading Commission, 1155 21st

    Street NW., Washington, DC 20581.

    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.

    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 revision to the

    collections of information listed below. An agency may not conduct or

    sponsor, and a person is not required to respond to, a collection of

    information unless it displays a currently valid OMB number.

    Titles: Registration Under the Commodity Exchange Act (OMB control

    number 3038-0023); Registration of Swap Dealers and Major Swap

    Participants (OMB control number 3038-0072). This is a request for

    extension and revision of these currently approved information

    collections.

    Abstract: The Commission recently revised its Form 8-R, the

    application form that individuals must use to register with the

    Commission as an associated person, floor broker, or floor trader, or

    to be listed as a principal. The collections of information related to

    Form 8-R were previously approved by OMB in accordance with the PRA and

    assigned OMB control numbers 3038-0023 and 3038-0072. Additionally, the

    Commission no longer requires individuals and entities to use

    Commission Form 3-R to update their registration information, which now

    can be updated directly on Forms 7-R or 8-R. The Commission therefore

    is reassigning to Forms 7-R and 8-R the information collection burdens

    previously associated with Commission Form 3-R. The collection of

    information related to Form 3-R was previously approved by OMB in

    accordance with the PRA and assigned OMB control number 3038-0023.

    1. Form 8-R Revision

    The revised Form 8-R contains several changes that increase the

    existing information collection burden, currently 0.8 hours, associated

    with Form 8-R. The Commission estimates that the changes, which are

    discussed below, when considered together in aggregate add a total of

    0.1 burden hours to the information collection burdens associated with

    Form 8-R.

    [[Page 19664]]

    First, in the ``Fingerprint Card Information'' section, revised

    Form 8-R adds two new questions. One new question addresses new

    requirements and exemptions thereto contained in Commission Regulation

    3.21(e) applicable to non-U.S. persons. The other new question

    addresses the fingerprinting requirement exception for certain outside

    directors of registered firms. Second, in the section titled

    ``Disciplinary Information--Regulatory Disclosures,'' a new question

    was added to existing Question E. Among other things, Question E

    inquires whether the applicant (or an entity of which the applicant was

    a principal) violated, or aided and abetted the violation of, any

    investment-related statutes or regulations, a potential statutory basis

    for refusing or conditioning registration. The new question directs the

    applicant to disclose whether he or she has ever been found to have

    ``failed to supervise another person's activities under any investment-

    related statute or regulation.'' Third, in the section titled

    ``Disciplinary Information--Financial Disclosures,'' the Commission

    revised Question J. Prior to the revision, Question J asked whether the

    applicant has ``currently failed to comply with any order to pay any

    futures-related civil monetary penalties, restitution amounts,

    disgorgement amounts, reparation amounts or arbitration awards.'' As

    revised, Question J now inquires whether the applicant ``failed to pay

    any arbitration awards involving CFTC-regulated products, CFTC civil

    monetary penalties, CFTC restitution amounts, CFTC disgorgement

    amounts, or CFTC reparation amounts.''

    The revised Form 8-R also contains several changes that do not

    alter the information collection burdens associated with Form 8-R.

    First, the revised Form 8-R combines into a single form two separate,

    existing versions of the Form 8-R, the Form 8-R ``Individual

    Application'' and the Form 8-R ``Floor Trader Order Enterer Individual

    Application,'' both of which were previously approved by OMB. In the

    section titled ``Sponsor Information and Registration Categories,'' the

    revised Form 8-R adds ``floor trader order enterer'' as a new category

    of persons that can be associated with a sponsor. Also in connection

    with this change, the revised Form 8-R includes two newly defined

    terms: ``entity floor trader'' and ``floor trader order enterer.''

    Second, in the section titled ``Principal Information,'' the prior

    version of Form 8-R contained a blank space in which an applicant

    entered a title. In the revised Form 8-R, the space is replaced with a

    list of available titles for applicants to choose from. Third, NFA is

    simplifying the process by which it requests supplemental information

    and documentation regarding the applicant's criminal, regulatory or

    financial disclosures. The prior version of Form 8-R requested that

    applicants provide a written explanation of the facts and circumstances

    regarding any such disclosures. Applicants were also separately

    requested to provide NFA with copies of pertinent documents associated

    with each disclosure. To consolidate and modernize this process, the

    revised Form 8-R allows applicants to complete a separate ``Disclosure

    Matter Page'' for each matter, instance or event requiring disclosure

    and to simultaneously upload all pertinent documents associated with

    each disclosure. The Disclosure Matter Page provides applicants with an

    efficient and effective method of supplying the supplemental

    information and documentation that NFA requests in the normal course

    whenever an applicant responds affirmatively to any of the questions

    regarding criminal, regulatory or financial disclosures.

    Lastly, the revised Form 8-R contains numerous changes to the

    language, formatting and organization of Form 8-R, all of which--

    individually and collectively--do not alter the information collection

    burdens associated with Form 8-R. The only changes to Form 8-R that

    affect the information collection burdens associated with the form are

    those discussed above.

    2. Cancellation of Form 3-R

    Commission Regulations 3.11 and 3.31 historically required entities

    and individuals to use Commission Form 3-R to update or correct certain

    types of information that originally was supplied on Commission Forms

    7-R or 8-R, the registration forms for entities and individuals

    respectively. Regulations 3.11 and 3.31 were amended in 2012 to reflect

    a new practice whereby Forms 7-R and 8-R could be directly updated

    online, and the requirement to use Form 3-R for updates, or for any

    other purpose, was deleted from the Commission rules. At that time,

    however, the Commission did not reassign to Forms 7-R and 8-R the

    information collection burden associated with the Form 3-R. The

    Commission is doing so now.

    The information collection burden associated with Form 3-R is 0.1

    hours. In reassigning that burden to Forms 7-R and 8-R, the Commission

    believes that it is appropriate to adopt a conservative approach and

    assign an additional 0.1 hours each to the Form 7-R and 8-R.

    Accordingly, by virtue of cancelling Form 3-R, and reassigning to Forms

    7-R and 8-R the information collection burdens associated with Form 3-

    R, the information collections burdens for Forms 7-R and 8-R each will

    increase by 0.1 hours. The reassignment of the information collection

    burden from Form 3-R to Forms 7-R and 8-R reallocates the information

    collection burdens within OMB control number 3038-0023, and does not

    increase or decrease the total information collection burden under that

    control number.

    3. Invitation to Comment

    With respect to the information collections discussed above, the

    CFTC invites comments on:

    Whether the proposed revision to the collection of

    information is necessary for the proper 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 revision to the 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 collection of information

    on those who are to respond, including through the further use of

    appropriate automated electronic, mechanical, or other technological

    collection techniques or other forms of information technology; e.g.,

    permitting electronic submission of responses.

    Burden Statement: As explained above, the Commission believes that

    the revisions to Form 8-R increase the information collection burdens

    associated with that Form under OMB control numbers 3038-0023 and 3038-

    0072. Additionally, the Commission believes that reassigning to Forms

    7-R and 8-R the information collection burdens formerly associated with

    Commission Form 3-R reallocates the information collection burdens

    within OMB control number 3038-0023, and therefore does not increase or

    decrease the total information collection burden under that control

    number.

    The Commission estimates the burden of this collection of

    information under OMB control number 3038-0023 to be:

    Respondents/Affected Entities: (1) Users of Form 7-R, specifically

    futures commission merchants, retail foreign exchange dealers,

    introducing brokers, commodity trading advisors, commodity pool

    operators, floor trader firms, and

    [[Page 19665]]

    leverage transaction merchants; and (2) users of Form 8-R, specifically

    (i) associated persons of futures commission merchants, retail foreign

    exchange dealers, introducing brokers, commodity trading advisors,

    commodity pool operators, and leverage transaction merchants; floor

    brokers; (ii) principals of futures commission merchants, retail

    foreign exchange dealers, introducing brokers, commodity trading

    advisors, commodity pool operators, floor trader firms, or leverage

    transaction merchants; (iii) floor brokers; (iv) floor traders; and (v)

    floor trader order enterers.

    Estimated Number of Respondents: 78,109.

    Estimated Total Annual Burden on Respondents: 7,210 hours.

    Frequency of Collection: Periodically.

    There are no capital costs or operating and maintenance costs

    associated with this collection.

    The Commission estimates the burden of this collection of

    information under OMB control number 3038-0072 to be:

    Respondents/Affected Entities: (1) Users of Form 7-R, specifically

    swap dealers and major swap participants; and (2) users of Form 8-R,

    specifically principals of swap dealers and of major swap participants.

    Estimated Number of Respondents: 770.

    Estimated Total Annual Burden on Respondents: 648 hours.

    Frequency of Collection: Periodically.

    There are no capital costs or operating and maintenance costs

    associated with this collection.

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

    Dated: April 24, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    [FR Doc. 2017-08559 Filed 4-27-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: April 28, 2017