2022-13141
[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Rules and Regulations]
[Pages 36407-36409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13141]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 1
Fees for Reviews of the Rule Enforcement Programs of Designated
Contract Markets and Registered Futures Associations
AGENCY: Commodity Futures Trading Commission.
ACTION: Notification of 2021 schedule of fees.
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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or
``Commission'') charges fees to designated contract markets and
registered futures associations to recover the costs incurred by the
Commission in the operation of its program of oversight of self-
regulatory organization rule enforcement programs, specifically
[[Page 36408]]
National Futures Association (``NFA''), a registered futures
association, and the designated contract markets. Fees collected from
each self-regulatory organization are deposited in the Treasury of the
United States as miscellaneous receipts. The calculation of the fee
amounts charged for 2021 by this document is based upon an average of
actual program costs incurred during fiscal year (``FY'') 2018, FY
2019, and FY 2020.
DATES: Each self-regulatory organization is required to remit
electronically the applicable fee on or before August 16, 2022.
FOR FURTHER INFORMATION CONTACT: Joel Mattingley, Chief Financial
Officer, Commodity Futures Trading Commission; (202) 418-5310; Three
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581;
[email protected]. For information on electronic payments, contact
Jennifer Fleming; (202) 418-5034; [email protected].
SUPPLEMENTARY INFORMATION:
I. Background Information
A. General
This document relates to fees for the Commission's review of the
rule enforcement programs at the registered futures associations \1\
and designated contract markets (``DCM''), each of which is a self-
regulatory organization (``SRO'') regulated by the Commission. The
Commission recalculates the fees charged each year to cover the costs
of operating this Commission program.\2\ The fees are set each year
based on direct program costs, plus an overhead factor. The Commission
calculates actual costs, then calculates an alternate fee taking volume
into account, and then charges the lower of the two.\3\
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\1\ National Futures Association is the only registered futures
association.
\2\ See Section 237 of the Futures Trading Act of 1982, 7 U.S.C.
16a, and 31 U.S.C. 9701. For a broader discussion of the history of
Commission fees, see 52 FR 46070, Dec. 4, 1987.
\3\ 58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, app. B
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B. Overhead Rate
The fees charged by the Commission to the SROs are designed to
recover program costs, including direct labor costs and overhead. The
overhead rate is calculated by dividing total Commission-wide overhead
direct program labor costs into the total amount of the Commission-wide
overhead pool. For this purpose, direct program labor costs are the
salary costs of personnel working in all Commission programs. Overhead
costs generally consist of the following Commission-wide costs:
Indirect personnel costs (leave and benefits), rent, communications,
contract services, utilities, equipment, and supplies. This formula has
resulted in the following overhead rates for the most recent three
years (rounded to the nearest whole percent): 182 percent for FY 2018,
174 percent for FY 2019, and 158 percent for FY 2020.
C. Conduct of SRO Rule Enforcement Reviews
Under the formula adopted by the Commission in 1993, the Commission
calculates the fee to recover the costs of its rule enforcement reviews
and examinations, based on the three-year average of the actual cost of
performing such reviews and examinations at each SRO. The cost of
operation of the Commission's SRO oversight program varies from SRO to
SRO, according to the size and complexity of each SRO's program. The
three-year averaging computation method is intended to smooth out year-
to-year variations in cost. Timing of the Commission's reviews and
examinations may affect costs--a review or examination may span two
fiscal years and reviews and examinations are not conducted at each SRO
each year.
As noted above, adjustments to actual costs may be made to relieve
the burden on an SRO with a disproportionately large share of program
costs. The Commission's formula provides for a reduction in the
assessed fee if an SRO has a smaller percentage of United States
industry contract volume than its percentage of overall Commission
oversight program costs. This adjustment reduces the costs so that, as
a percentage of total Commission SRO oversight program costs, they are
in line with the pro rata percentage for that SRO of United States
industry-wide contract volume.
The calculation is made as follows: The fee required to be paid to
the Commission by each DCM is equal to the lesser of actual costs based
on the three-year historical average of costs for that DCM or one-half
of average costs incurred by the Commission for each DCM for the most
recent three years, plus a pro rata share (based on average trading
volume for the most recent three years) of the aggregate of average
annual costs of all DCMs for the most recent three years.
The formula for calculating the second factor is: 0.5a + 0.5 vt =
current fee. In this formula, ``a'' equals the average annual costs,
``v'' equals the percentage of total volume across DCMs over the last
three years, and ``t'' equals the average annual costs for all DCMs.
NFA has no contracts traded; hence, its fee is based simply on costs
for the most recent three fiscal years. This table summarizes the data
used in the calculations of the resulting fee for each entity:
Table 1--Summary of Data Used in Fee Calculations
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Actual total costs Adjusted 2021
------------------------------------ 3-Year average 3-Year total volume Assessed
FY 2018 FY 2019 FY 2020 actual costs volume % costs fee
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Cantor Futures Exchange, L.P............................... $56,551 .......... $22,702 $26,418 0.03 $13,319 $13,319
CBOE Futures Exchange, LLC................................. 16,033 $40,517 23,325 26,625 1.24 17,482 17,482
Chicago Board of Trade..................................... 2,296 22,835 56,041 27,058 33.31 125,158 27,058
Chicago Mercantile Exchange, Inc........................... 235,127 383,995 260,723 293,282 42.97 290,666 290,666
Eris Exchange, LLC......................................... 33,170 .......... .......... 11,057 0.00 5,540 5,540
ICE Futures U.S., Inc...................................... 50,096 73,464 193,300 105,620 6.59 74,885 74,885
Minneapolis Grain Exchange, Inc............................ 438 39,525 .......... 13,321 0.05 6,813 6,813
Nasdaq OMX Futures Exchange, Inc........................... 109,413 1,741 .......... 37,051 0.27 19,444 19,444
New York Mercantile Exchange/Commodity Exchange, Inc....... 3,397 45,425 99,311 49,377 15.11 75,328 49,377
Nodal Exchange, LLC........................................ 33,162 2,312 .......... 11,825 0.08 6,180 6,180
North American Derivatives Exchange, Inc................... 6,986 135,159 2,598 48,248 0.21 24,844 24,844
[[Page 36409]]
OneChicago, LLC Futures Exchange........................... 61,276 .......... .......... 20,425 0.13 10,648 10,648
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Subtotal............................................... 607,946 744,973 658,001 670,307 100.00 670,307 546,255
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National Futures Association............................... 507,673 540,821 567,719 538,738 .............. ......... 538,738
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Total.................................................. 1,115,619 1,285,794 1,225,720 1,209,044 100.00 670,307 1,084,993
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Columns may not add due to rounding.
An example of how the fee is calculated for one exchange, the
Chicago Board of Trade, is set forth here:
a. Actual three-year average costs = $27,058.
b. The alternative computation is: [(.5) ($27,058)] + (.5)
[(.33307) ($670,307)] = $125,158.
c. The fee is the lesser of a or b; in this case $27,058.
As noted above, the alternative calculation based on contracts
traded is not applicable to NFA because it is not a DCM and has no
contracts traded. The Commission's average annual cost for conducting
oversight review of the NFA rule enforcement program during fiscal
years 2018 through 2020 was $538,738. The fee to be paid by the NFA for
the current fiscal year is $538,738.
II. Schedule of Fees
Fees for the Commission's review of the rule enforcement programs
at the registered futures associations and DCMs regulated by the
Commission are as follows:
Table 2--Schedule of Fees
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3-Year average 3-Year total Adjusted 2021 Assessed
actual costs volume % volume costs fee
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Cantor Futures Exchange, L.P.................... $26,418 0.03 $13,319 $13,319
CBOE Futures Exchange, LLC...................... 26,625 1.24 17,482 17,482
Chicago Board of Trade.......................... 27,058 33.31 125,158 27,058
Chicago Mercantile Exchange, Inc................ 293,282 42.97 290,666 290,666
Eris Exchange, LLC.............................. 11,057 0.00 5,540 5,540
ICE Futures U.S., Inc........................... 105,620 6.59 74,885 74,885
Minneapolis Grain Exchange, Inc................. 13,321 0.05 6,813 6,813
Nasdaq OMX Futures Exchange, Inc................ 37,051 0.27 19,444 19,444
New York Mercantile Exchange/Commodity Exchange, 11,825 0.08 6,180 6,180
Inc............................................
Nodal Exchange, LLC............................. 48,248 0.21 24,844 24,844
North American Derivatives Exchange, Inc........ 20,425 0.13 10,648 10,648
OneChicago, LLC Futures Exchange................ 49,377 15.11 75,328 49,377
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Subtotal.................................... 670,307 100.00% 670,307 546,255
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National Futures Association.................... 538,738 .............. .............. 538,738
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Total....................................... 1,209,044 100.00 670,307 1,084,993
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Columns may not add due to rounding.
III. Payment Method
The Debt Collection Improvement Act (DCIA) requires deposits of
fees owed to the government by electronic transfer of funds. See 31
U.S.C. 3720. All payments should be made via the government payment
website https://www.pay.gov/public/form/start/105542374/. Credit card
payments are only acceptable for amounts less than or equal to $24,999.
All payments equal to or above $25,000 can be made by electronice funds
transfer. Fees collected from each self-regulatory organization shall
be deposited in the Treasury of the United States as miscellaneous
receipts. See 7 U.S.C 16a.
Issued in Washington, DC, on this 14th day of June, 2022, by the
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-13141 Filed 6-16-22; 8:45 am]
BILLING CODE 6351-01-P