2017-20924

[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]

[Rules and Regulations]

[Pages 45433-45434]

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

[FR Doc No: 2017-20924]

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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 38

RIN 3038-AE64

Commission Delegated Authority Provisions for Designated Contract

Markets' System Safeguards Requirements

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

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

``Commission'') is adopting final rules to establish a new delegation

of authority to Commission staff under the Commission's system

safeguards rules to notify each designated contract market (``DCM'') of

its percentage of the total annual trading volume among all DCMs

regulated by the Commission for purposes of whether it is a covered DCM

under the system safeguards rules.

DATES: This rule is effective September 29, 2017.

FOR FURTHER INFORMATION CONTACT: Rachel Berdansky, Deputy Director,

202-418-5429 or [email protected]; David Steinberg, Associate

Director, 202-418-5102 or [email protected]; David Taylor, Associate

Director, 202-418-5488 or [email protected], Division of Market

Oversight, Commodity Futures Trading Commission, Three Lafayette

Centre, 1151 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION:

I. Delegation of Authority--Commission Regulation Sec. 38.1051

Section 38.1051 of the Commission's regulations, 17 CFR 38.1051,

governs the system safeguards requirements for DCMs. Pursuant to Sec.

38.1051(n), DCMs are required to provide the Commission with their

annual total trading volume by January 31 each calendar year. Section

38.1051(n)(2) also requires the Commission to provide each DCM with

their percentage of the combined annual total trading volume among all

DCMs regulated by the Commission by February 28 each calendar year.

This annual Commission notification informs each DCM whether it is a

``covered DCM'' as that term is defined in Sec. 38.1051(h)(1). A

covered DCM is a DCM whose annual trading volume in a given year is

five percent or more of the combined annual trading volume of all DCMs

regulated by the Commission. Covered DCMs are required to comply with

enhanced requirements with respect to the frequency of cybersecurity

testing and the use of independent contractors. The Commission is

amending Sec. 38.1051 by adding paragraph (n)(3) to delegate authority

to the Director of the Division of Market Oversight and designated

staff to notify DCMs of their annual trading volume percentage.

II. Effective Date

As the revisions to the Commission's regulations in this rulemaking

will not cause any party to undertake efforts to comply with the

regulations as revised, the Commission has determined to

[[Page 45434]]

make this rulemaking effective upon publication in the Federal

Register.\1\

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\1\ 5 U.S.C. 553(d).

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III. Paperwork Reduction Act

The Commission may not conduct or sponsor, and a respondent is not

required to respond to, a collection of information contained in a

rulemaking unless the information collection displays a currently valid

control number issued by the Office of Management and Budget (``OMB'')

pursuant to the Paperwork Reduction Act.\2\ This rulemaking contains no

collection of information for which the Commission is obligated to

obtain a control number from OMB.

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\2\ 44 U.S.C. 3501 et seq.

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List of Subjects in 17 CFR Part 38

Commodity futures, Reporting and recordkeeping requirements.

For the reasons stated in the preamble, the Commodity Futures

Trading Commission amends 17 CFR part 38 as follows:

PART 38--DESIGNATED CONTRACT MARKETS

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1. The authority citation for part 38 continues to read as follows:

Authority: 7 U.S.C. 1a, 2, 6, 6a, 6c, 6d, 6e, 6f, 6g, 6i, 6j,

6k, 6l, 6m, 6n, 7, 7a-2, 7b, 7b-1, 7b-3, 8, 9, 15, and 21, as

amended by the Dodd-Frank Wall Street Reform and Consumer Protection

Act, Pub. L. 111-203, 124 Stat. 1376.

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2. In Sec. 38.1051, add paragraph (n)(3) to read as follows:

Sec. 38.1051 General requirements.

* * * * *

(n) * * *

(3) Delegation of authority. The Commission hereby delegates, until

it orders otherwise, to the Director of the Division of Market

Oversight or such other employee or employees as the Director may

designate from time to time, the authority to provide each designated

contract market with its percentage of the total annual trading volume

of all designated contract markets regulated by the Commission, as set

forth in paragraph (n)(2) of this section. The Director of the Division

of Market Oversight may submit to the Commission for its consideration

any matter that has been delegated pursuant to this section. Nothing in

this section prohibits the Commission, at its election, from exercising

the authority delegated in this section.

Issued in Washington, DC, on September 26, 2017, by the

Commission.

Christopher J. Kirkpatrick,

Secretary of the Commission.

Note: The following appendix will not appear in the Code of

Federal Regulations.

Appendix to Commission Delegated Authority Provisions for Designated

Contract Markets' System Safeguards Requirements--Commission Voting

Summary

On this matter, Chairman Giancarlo and Commissioners Bowen,

Quintenz, and Behnam voted in the affirmative. No Commissioner voted

in the negative.

[FR Doc. 2017-20924 Filed 9-28-17; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: September 29, 2017