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, [email protected]; or August A. Imholtz III, Special Counsel,
(202) 418-5140, [email protected], 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