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  • Federal Register, Volume 82 Issue 227 (Tuesday, November 28, 2017)

    [Federal Register Volume 82, Number 227 (Tuesday, November 28, 2017)]


    [Pages 56221-56222]

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

    [FR Doc No: 2017-25698]




    Agency Information Collection Activities Under OMB Review

    AGENCY: Commodity Futures Trading Commission.

    ACTION: Notice.


    SUMMARY: In compliance with the Paperwork Reduction Act of 1995

    (``PRA''), this notice announces that the Information Collection

    Request (``ICR'') abstracted below has been forwarded to the Office of

    Management and Budget (``OMB'') for review and comment. The ICR

    describes the nature of the information collection and its expected

    costs and burden.

    DATES: Comments must be submitted on or before December 28, 2017.

    ADDRESSES: Comments regarding the burden estimated or any other aspect

    of the information collection, including suggestions for reducing the

    burden, may be submitted directly to the Office of Information and

    Regulatory Affairs (``OIRA'') in OMB, within 30 days of the notice's

    publication, by either of the following methods. Please identify the

    comments by OMB Control No. 3038-0091.

    By email addressed to: or

    By mail addressed to: The Office of Information and

    Regulatory Affairs, Office of Management and Budget, Attention Desk

    Officer for the Commodity Futures Trading Commission, 725 17th Street

    NW., Washington, DC 20503.

    A copy of all comments submitted to OIRA should be sent to the

    Commodity Futures Trading Commission (the ``Commission'') by either of

    the following methods. The copies should refer to ``OMB Control No.


    By mail addressed to: Christopher Kirkpatrick, Secretary

    of the Commission, Commodity Futures Trading Commission, Three

    Lafayette Centre, 1155 21st Street NW., Washington, DC 20581;

    By Hand Delivery/Courier to the same address; or

    Through the Commission's Web site at Please follow the instructions for submitting

    comments through the Web site.

    A copy of the supporting statements for the collection of

    information discussed herein may be obtained by visiting

    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. 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 ICR 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: Lauren Bennett, Special Counsel, 202-

    418-5290, email:, Division of Swap Dealer and

    Intermediary Oversight, Commodity Futures Trading Commission and refer

    to OMB Control No. 3038-0062.


    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.

    [[Page 56222]]

    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 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


    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,



    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. On September 18, 2017, the

    Commission published in the Federal Register notice of the proposed

    extension of this information collection and provided 60 days for

    public comment on the proposed extension, 82 FR 43527. The Commission

    received no relevant comments.

    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: November 22, 2017.

    Robert N. Sidman,

    Deputy Secretary of the Commission.

    [FR Doc. 2017-25698 Filed 11-27-17; 8:45 am]

    BILLING CODE 6351-01-P

    Last Updated: November 28, 2017