2014-23186

Federal Register, Volume 79 Issue 189 (Tuesday, September 30, 2014)

[Federal Register Volume 79, Number 189 (Tuesday, September 30, 2014)]

[Notices]

[Pages 58752-58755]

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

[FR Doc No: 2014-23186]

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COMMODITY FUTURES TRADING COMMISSION

Privacy Act of 1974 System of Records Notice

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice; publication of character of a revised system of

records.

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SUMMARY: The Commodity Futures Trading Commission (Commission or CFTC)

is revising a system of records under the Privacy Act of 1974, CFTC-12,

Fitness Investigations, and renaming the system ``National Futures

Association (NFA) Applications Suite System (Exempted)'' to more

broadly cover the activities of NFA on behalf of the Commission by

delegated authority and also cover new data collections for swap

dealers, major swap participants and retail foreign exchange dealers as

required by the Dodd-Frank Wall Street Reform Act and recent Commission

rules.

DATES: Comments must be received on or before October 30, 2014. This

action will be effective without further notice on November 10, 2014,

unless revised pursuant to comments received.

ADDRESSES: You may submit comments identified by ``NFA Applications

Suite System (Exempted)'' by any of the following methods:

Agency Web site, via its Comments Online process: http://comments.cftc.gov. Follow the instructions for submitting comments

through the Web site.

Federal eRulemaking Portal: Comments may be submitted at

http://www.regulations.gov. Follow the instructions for submitting

comments.

Mail: 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.

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

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

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

Sec. 145.9 of the Commission's regulations, 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 a

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 notice will be retained in the public comment file

and will be considered as required under all applicable laws, and may

be accessible under the Freedom of Information Act.

FOR FURTHER INFORMATION CONTACT: Kathy Harman-Stokes, Chief Privacy

Officer, [email protected], 202-418-6629, Office of the Executive

Director, Commodity Futures Trading Commission, Three Lafayette Centre,

1155 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. The Privacy Act

Under the Privacy Act of 1974, 5 U.S.C. 552a, a ``system of

records'' is defined as any group of records under the control of a

federal government agency from which information about individuals is

retrieved by name or other personal identifier. The Privacy Act

establishes the means by which government agencies collect, maintain,

and use information that is personally identifiable in a government

system of records.

Each government agency is required to publish a notice in the

Federal Register of a system of records in which the agency identifies

and describes each system of records it maintains, the reasons why the

agency uses the personally identifying information therein, the routine

uses for which the agency will disclose such information outside the

agency, and how individuals may exercise their rights under the Privacy

Act to determine if the system contains information about them, among

other things.

II. NFA Applications Suite System (Exempt)

The Commission proposes to revise a system of records notice

(SORN), CFTC-12, ``Fitness Investigations,'' and rename the notice as

``National Futures Association (NFA) Applications Suite System

(Exempted).'' The notice revises the description of the system and

enhancements to more broadly cover the activities of NFA on behalf of

the Commission by delegated authority and also covers new data

collections for swap dealers, major swap participants and retail

foreign exchange dealers as required by the Dodd-Frank Wall Street

Reform Act and recent Commission rules. The revised notice also exempts

from certain Privacy Act requirements those records in this system that

refer, relate to or are from third-party sources related to fitness or

other investigations of registrants or applicants for registration.

Though subject to change with future information technology upgrades,

the notice covers activities that are currently automated by the

following NFA databases and applications:

[[Page 58753]]

BASIC--Background Affiliation Status Information Center;

Fingerprint system;

DDOC--Disclosure Document System;

EFC--Electronic Filing Cabinet;

EasyFile;

FACTS--Financial Analysis & Audit Compliance Tracking

System;

Fitness Image;

NFA Audit System;

ORS--Online Registration System;

WinjammerTM Online Filing System.

This single SORN will replace and rename CFTC-12, ``Fitness

Investigations,'' and will result in retirement of two other SORNs,

CFTC-20, ``Registration,'' and CFTC-28, ``Self-Regulatory Organization

Disciplinary Action Files.''

Issued in Washington, DC, on September 24, 2014, by the

Commission.

Christopher J. Kirkpatrick,

Secretary of the Commission.

CFTC-12

System Name:

National Futures Association (NFA) Applications Suite System

(Exempted).

Security Classification:

Unclassified.

System Location:

The electronic applications and databases that comprise the NFA

Applications Suite System (Exempted) are located in two primary

locations, NFA, 300 South Riverside, Suite 1800, Chicago, Illinois

60606 and the CFTC, Three Lafayette Centre, 1155 21st Street NW.,

Washington, DC 20581. Some information is also located at CFTC regional

offices at 525 West Monroe Street, Suite 1100, Chicago, IL 60661; 140

Broadway, 19th Floor, New York, NY 10005; and 4900 Main Street, Suite

500, Kansas City, MO 64112.

Categories Of Individuals Covered By The System:

Individuals who have applied or who may apply for registration as

futures commission merchants, introducing brokers, commodity pool

operators, commodity trading advisors, leverage transaction merchants,

swap dealers, major swap participants, retail foreign exchange dealers

and agricultural trade option merchants (ATOMs); individuals who file

notices of exemption or claims for exemption from certain CFTC

requirements; individuals who are or may become principals (as defined

in 17 CFR 3.1); individuals who have applied or who may apply for

registration as associated persons of the foregoing firms; and floor

brokers and floor traders. Also individuals, who have been suspended,

expelled, disciplined, or denied access to or by a self-regulatory

organization (SRO), including, but not limited to, NFA or who have been

subject to a CFTC civil or administrative action.

Categories Of Records In The System:

Information pertaining to the fitness of the individuals or firms

to engage in business subject to the Commission's jurisdiction,

including but not limited to registration forms, schedules and

supplements, fingerprint cards which are required for certain

individual registrants as provided under CFTC rules, correspondence

relating to registration, fitness investigations, and reports and

memoranda reflecting information developed from various sources. This

system includes investigatory material compiled for law enforcement

purposes whose disclosure the Commission staff has determined could

compromise Commission investigations, or would reveal the identity of a

source who furnished information to the Commission under an express

promise that the identity of the source would be held in confidence.

Information pertaining to disciplinary or other adverse action

taken by an SRO or the CFTC, including the name of the person against

whom such action was taken, the action taken, and the reasons.

Information submitted by certain individuals or firms to enable NFA

and/or CFTC supervision and oversight of activities governed by the

Commodity Exchange Act, such as financial statements, reports and

notice filings; disclosure documents; and submissions by swap dealers

and major swap participants pursuant to Commission Regulation

3.10(a)(1)(v)(A) and information developed by the NFA and/or CFTC

related to such information.

Information submitted by individuals related to notices of

exemption or claims for exemption from certain CFTC requirements and

information developed by NFA and/or the CFTC related to the notice of

exemption or claim for exemption.

Authority For Maintenance Of The System:

The Commodity Exchange Act, 7 U.S.C. 1, et seq., and the rules and

regulations promulgated thereunder.

Purpose(s):

The records in this system are used to support the Commission's

registration and other regulatory authority as delegated to NFA. This

involves maintaining fitness investigation and other fitness related

records, including investigatory material compiled for law enforcement

purposes, non-fitness registration records, images of registration

records, information related to disciplinary action taken by the CFTC

and self-regulatory organizations including NFA; processing hard copy

and electronic fingerprint cards; and maintaining a web based

registration system, records related to notices of exemption or claims

for exemption from certain CFTC requirements, and financial statements,

reports, notices and other filings that enable NFA and the CFTC to

oversee registrant activities for compliance with legal requirements.

Routine Uses Of Records Maintained In The System, Including Categories

Of Users And The Purposes Of Such Uses:

NFA may disclose information contained in those portions of this

system of records maintained by NFA, but any such disclosure must be

made in accordance with NFA rules that have been approved by the

Commission or permitted to become effective without Commission

approval. Disclosures must be made under circumstances authorized by

the Commission as consistent with the Commission's regulations and

routine uses.

NFA generally makes available to the public on NFA Web site(s),

including the Background Affiliation Status Information Center (BASIC),

firm directories, registration forms, business addresses, telephone

numbers, registration categories, biographical supplements (except for

any confidential information on supplementary attachments to the

forms), effective dates of registration, registration status, and

disciplinary action taken concerning futures commission merchants,

introducing brokers, commodity pool operators, commodity trading

advisors, swap dealers, major swap participants and retail foreign

exchange dealers and their associated persons. NFA also will release

records or portions of records to any member of the public if such

records or portions are ``public'' or ``publicly available'' under CFTC

Regulations 1.10(g) or 145.0.

For information not made available to the public as explained

above, NFA may disclose information contained in those portions of this

system of records maintained by NFA:

(1) To any person with whom an applicant or registrant is or plans

to be associated as an associated person or affiliated as a principal

or with whom an individual is or plans on being associated as a swap

associated person;

(2) to any futures commission merchant or retail foreign exchange

dealer with whom an introducing

[[Page 58754]]

broker, whether an applicant or registrant, has or plans to enter into

a guarantee agreement under CFTC Regulation 1.10;

(3) to boards of trade designated as contract markets or to any

other futures associations registered with the Commission to assist

those organizations in carrying out their responsibilities under the

Act, or to national securities exchanges or national securities

associations registered with the Securities & Exchange Commission to

assist those organizations in carrying out their responsibilities under

the Securities Exchange Act of 1934;

(4) to federal, state or local law enforcement or regulatory

agencies acting within the scope of their jurisdiction or for their use

in meeting responsibilities assigned to them under law (to the same

extent that the Commission may disclose such registration information

under Sections 8(e) and 8(g) of the Act);

(5) pursuant to an order of a court of competent jurisdiction;

except that, subpoenas and summonses covering non-public portions of

registration records and copies of the non-public records shall be

promptly forwarded to the Commission to enable the Commission to

consult with NFA on how to proceed;

(6) otherwise with the authorization of the FOI, Privacy and

Sunshine Act Compliance staff or the General Counsel of the Commission

or his or her designee, in accordance with CFTC Regulations 145.7(b),

(h) and (i); the Freedom of Information Act, 5 U.S.C. 552; and the

Privacy Act, 5 U.S.C. 552a; and

(7) to any individual or firm, or person acting on behalf of the

individual or firm, who seeks access to registration records, excluding

any reports reflecting information developed from sources outside the

Commission or NFA compiled or generated in connection with determining

fitness for registration or affiliation as a principal, in connection

with that individual's or firm's application for registration.

Information in this system may also be disclosed in accordance with

the blanket routine uses numbered 1 through 19 that appear at the

beginning of the Commission's compilation of its systems of records

notices, which can be found in the Federal Register at 76 FR 5974 (Feb.

2, 2011).

Disclosure To Consumer Reporting Agencies:

None.

Policies And Practices For Storing, Retrieving, Accessing, Retaining,

And Disposing Of Records In The System:

Storage:

Paper records are stored in file folders and binders. Electronic

records, including computer files, are stored on the Commission's

network, NFA databases or applications, NFA Web site, and other

electronic media (e.g., microfiche) as needed.

Retrievability:

By the name of the individual or firm, an NFA identification

number, docket number or by cross-indexing an individual's file to the

name of the firm with which the individual is associated or affiliated

(e.g., the name of the futures commission merchant).

Safeguards:

Records are protected from unauthorized access and improper use

through administrative, technical and physical security measures.

Administrative measures includes workforce security awareness training.

Technical security measures within the NFA and CFTC include

restrictions on computer access to authorized individuals, required use

of strong passwords that are frequently changed, use of encryption for

certain data types and transfers, and regular review of security

procedures and best practices to enhance security. Physical measures

include restrictions on building access to authorized individuals and

maintenance of records in lockable offices and filing cabinets.

Retention And Disposal:

These records are retained and disposed of in accordance with CFTC

Records Schedules available at: www.cftc.gov/ucm/groups/public/@aboutcftc/documents/file/recordsdispositionschedule.pdf.

System Manager(s) And Address:

For records held by the Commission related to fitness

investigations and registration: Director, Division of Swap Dealer and

Intermediary Oversight (DSIO), Commodity Futures Trading Commission,

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

Surveillance Branch Chiefs in the regional offices at 525 West Monroe

Street, Suite 1100, Chicago, IL 60661 and 140 Broadway, 19th Floor, New

York, NY 10005. For records held by the Commission related to

disciplinary action: Director, Division of Market Oversight (DMO),

Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st

Street NW., Washington, DC 20581.

For records held by NFA: Vice President for Registration, National

Futures Association, 300 South Riverside, Suite 1800, Chicago, Illinois

60606.

Notification Procedure:

Individuals seeking to determine whether this system of records

contains information about themselves or seeking access to records

about themselves in this system of records, or contesting the content

of records about themselves contained in this system of records should

address written inquiry to FOIA/Privacy Act Request, Commodity Futures

Trading Commission, Three Lafayette Centre, 1155 21st Street NW.,

Washington, DC 20581. Telephone (202) 418-5000.

Individuals may also request registration information by telephone

directly from the NFA information center at (800) 621-3570 or (312)

781-1410. Inquiries can also be made to NFA by fax at (312) 781-1459 or

via the Internet at [email protected] NFA will query the

system about current registration status and registration and

disciplinary history, and will provide instructions on how to make

written requests for copies of records. The Internet may be used to

obtain information on current registration status and futures-related

regulatory actions at www.nfa.futures.org.

Record Source Categories:

The individual or firm on whom the record is maintained; the

individual's employer; individuals filing reparations complaints or

answers; Federal, state and local regulatory and law enforcement

agencies; commodities and securities exchanges; NFA; Financial Industry

Regulatory Authority (FINRA); foreign futures and securities

authorities and INTERPOL; self-regulatory organizations notifying the

Commission of disciplinary or other adverse actions taken; and other

miscellaneous sources.

Exemptions Claimed For The System:

The records in this system that refer, relate to or are from third-

party sources related to fitness or other investigations of applicants

for registration or registrants are exempted by the Commission from

certain provisions of the Privacy Act of 1974 pursuant to the terms of

the Privacy Act, 5 U.S.C. 552a(k)(2), and the Commission's rules

promulgated thereunder, 17 CFR 146.12. These records are exempt from

the notification procedures, records access procedures, and record

contest procedures set forth in the system notices of other systems of

records, and

[[Page 58755]]

from the requirement that the sources of records in the system be

described.

[FR Doc. 2014-23186 Filed 9-29-14; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: September 30, 2014