Font Size: AAA // Print // Bookmark


  • Federal Register, Volume 82 Issue 179 (Monday, September 18, 2017)

    [Federal Register Volume 82, Number 179 (Monday, September 18, 2017)]


    [Pages 43527-43528]

    From the Federal Register Online via the Government Publishing Office []

    [FR Doc No: 2017-19749]




    Agency Information Collection Activities: Notice of Intent To

    Renew Collection Number 3038-0062, Off-Exchange Foreign Currency


    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.


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

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

    proposed renewal of a collection of certain information by the agency.

    Under the Paperwork Reduction Act (``PRA''), Federal agencies are

    required to publish notice in the Federal Register concerning each

    proposed collection of information, including each proposed extension

    of an existing collection of information, and to allow 60 days for

    public comment. This notice solicits comments on the collections of

    information provided for by part 5 of the Commission's regulations

    under the Commodity Exchange Act (``CEA'') relating to off-exchange

    foreign currency transactions.

    DATES: Comments must be submitted on or before November 17, 2017.

    ADDRESSES: You may submit comments, identified by ``Off-Exchange

    Foreign Currency Transactions,'' and Collection Number 3038-0062 by any

    of the following methods:

    The Agency's Web site, at

    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. Please submit

    your comments using only one method.

    Federal eRulemaking Portal:

    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

    FOR FURTHER INFORMATION CONTACT: Lauren Bennett, Special Counsel, 202-

    418-5290,, Division of Swap Dealer and Intermediary

    Oversight, Commodity Futures Trading Commission.

    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 collection 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 control number.

    Title: Off-Exchange Foreign Currency Transactions (OMB Control No.

    3038-0062). This is a request for an extension of a currently approved

    information collection.

    Abstract: Part 5 of the Commission's regulations under the CEA

    establishes rules applicable to retail foreign exchange dealers

    (``RFEDs''), futures commission merchants (``FCMs''), introducing

    brokers (``IBs''), commodity trading advisors (``CTAs''), and commodity

    pool operators (``CPOs'') engaged in the offer and sale of off-exchange

    forex contracts to retail customers. Specifically:

    Regulation 5.5 requires RFEDs, FCMs, and IBs to distribute

    risk disclosure statements to new retail forex customers.

    Regulation 5.6 requires RFEDs and FCMs to report any

    failures to maintain the minimum capital required by Commission


    Regulation 5.8 requires RFEDs and FCMs to calculate their

    total retail forex obligation.

    Regulation 5.10 requires RFEDs to maintain and preserve

    certain risk assessment documentation.

    Regulation 5.11(a)(1) requires RFEDs to submit certain

    risk assessment documentation to the Commission within 60 days of the

    effective date of their registration.

    Regulation 5.11(a)(2) requires RFEDs to submit certain

    financial documentation to the Commission within 105 calendar days of

    the end of each fiscal year. RFEDs must also submit additional

    information, if requested, regarding affiliates' financial impact on an

    RFED's organizational structure.

    Regulation 5.12(a) requires RFED applicants to submit a

    Form 1-FR-FCM concurrently with their registration application.

    Regulation 5.12(b) requires registered RFEDs to file a

    Form 1-FR-FCM on a monthly and annual basis.

    Regulation 5.12(g) states that, in the event that an RFED

    cannot file its Form 1-FR-FCM for any period within the time specified

    in Regulation 5.12(b), the RFED may file an application for an

    extension of time with its self-regulatory organization.

    Regulation 5.13(a) requires RFEDs and FCMs to provide

    monthly account statements to their customers.

    Regulation 5.13(b) requires RFEDs and FCMs to provide

    confirmation statements to their customers within one business day

    after the execution of any retail forex or forex option transaction.

    Regulation 5.14 requires RFEDs and FCMs to maintain

    current ledgers of each transaction affecting its asset, liability,

    income, expense and capital accounts.

    Regulation 5.18(g) requires each RFED, FCM, CPO, CTA, and

    IB subject

    [[Page 43528]]

    to part 5 to maintain a record of all communications received that give

    rise to possible violations of the Act, rules, regulations or orders

    thereunder related to their retail forex business.

    Regulation 5.18(i) requires each RFED and FCM to prepare

    and maintain on a quarterly basis a calculation of non-discretionary

    retail forex customer accounts open for any period of time during the

    quarter that were profitable, and the percentage of such accounts that

    were not profitable.

    Regulation 5.18(j) requires the CCO of each RFED and FCM

    to certify annually that the firm has in place processes to establish,

    maintain, review, modify and test policies and procedures reasonably

    designed to achieve compliance with the Act, rules, regulations and

    orders thereunder.

    Regulation 5.19 requires each RFED, FCM, CPO, CTA, and IB

    subject to part 5 to submit to the Commission copies of any dispositive

    or partially dispositive decision for which a notice of appeal has been

    filed in any material legal proceeding (1) to which the firm is a party

    to or to which its property or assets is subject with respect to retail

    forex transactions, or (2) instituted against any person who is a

    principal of the firm arising from conduct in such person's capacity as

    a principal of that firm.

    Regulation 5.20 requires RFEDs, FCMs and IBs to submit

    documentation requested pursuant to certain types of special calls by

    the Commission.

    Regulation 5.23 requires RFEDs, FCMs and IBs to notify the

    Commission regarding bulk transfers and bulk liquidations of customer


    The rules establish reporting and recordkeeping requirements that

    are necessary to implement the provisions of the Food, Conservation,

    and Energy Act of 2008 \1\ regarding off-exchange transactions in

    foreign currency with members of the public. The rules are intended to

    promote customer protection by providing safeguards against

    irresponsible or fraudulent business practices.\2\


    \1\ Public Law 110-246, 122 Stat. 1651, 2189-220 (2008).

    \2\ See Regulation of Off-Exchange Retail Foreign Exchange

    Transactions and Intermediaries, 75 FR 55410, 55416 (Sept. 10,



    With respect to the collection of information, the CFTC invites

    comments on:

    Whether the proposed collection of information is

    necessary for the proper performance of the functions of the

    Commission, including whether the information will have a practical


    The accuracy of the Commission's estimate of the burden of

    the proposed collection of information, including the validity of the

    methodology and assumptions used;

    Ways to enhance the quality, usefulness, and clarity of

    the information to be collected; and

    Ways to minimize the burden of collection of information

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

    automated electronic, mechanical, or other technological collection

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

    electronic submission of responses.

    All comments must be submitted in English, or if not, accompanied

    by an English translation. Comments will be posted as received to 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.\3\


    \3\ 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 your

    submission from 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.

    Burden Statement: The Commission is revising its estimate of the

    burden for this collection to reflect the current number of affected

    registrants and revised burden estimates. Accordingly, the respondent

    burden for this collection is estimated to be as follows:

    Number of Registrants: 169.

    Estimated Average Burden Hours per Registrant: 777.

    Estimated Aggregate Burden Hours: 131,259.

    Frequency of Recordkeeping: As applicable.

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

    Dated: September 12, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    [FR Doc. 2017-19749 Filed 9-15-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: September 18, 2017