2017-08559

Federal Register, Volume 82 Issue 81 (Friday, April 28, 2017)

[Federal Register Volume 82, Number 81 (Friday, April 28, 2017)]

[Notices]

[Pages 19663-19665]

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

[FR Doc No: 2017-08559]

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COMMODITY FUTURES TRADING COMMISSION

Agency Information Collection Activities: Proposed Collection

Revision, Comment Request: Adoption of Revised Registration Form 8-R

and Cancellation of Form 3-R

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

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

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

proposed revision to the collection of certain information by the

Commission. Under the Paperwork Reduction Act (``PRA''), Federal

agencies are required to publish notice in the Federal Register

concerning each proposed collection of information and to allow 60 days

for public comment. The Commission revised its Form 8-R, the

application form that individuals use to register with the Commission

or to be listed as a principal. This notice solicits comments on the

PRA implications of the revisions to Form 8-R, including comments that

address the burdens associated with the modified information collection

requirements of the revised Form 8-R. Additionally, this notice also

solicits comments on the PRA implications of reassigning the burdens

associated with the information collections requirements of Commission

Form 3-R, which is no longer used, to Commission Forms 7-R and 8-R.

DATES: Comments must be submitted on or before June 27, 2017.

ADDRESSES: You may submit comments, identified by ``OMB control numbers

3038-0023 and 3038-0072; Adoption of Revised Registration Form 8-R and

Cancellation of Form 3-R,'' by any of the following methods:

The Commission's Web site, via its Comments Online process

at http://comments.cftc.gov/. 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.

Federal eRulemaking Portal: http://www.regulations.gov/.

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

http://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 Regulation 145.9.\1\

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\1\ 17 CFR 145.9.

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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 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 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.

FOR FURTHER INFORMATION CONTACT: Laura Gardy, Associate Director, (202)

418-7645, [email protected]; or August A. Imholtz III, Special Counsel,

(202) 418-5140, [email protected], Division of Swap Dealer and

Intermediary Oversight, Commodity Futures Trading Commission, 1155 21st

Street NW., Washington, DC 20581.

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 revision to the

collections 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 number.

Titles: Registration Under the Commodity Exchange Act (OMB control

number 3038-0023); Registration of Swap Dealers and Major Swap

Participants (OMB control number 3038-0072). This is a request for

extension and revision of these currently approved information

collections.

Abstract: The Commission recently revised its Form 8-R, the

application form that individuals must use to register with the

Commission as an associated person, floor broker, or floor trader, or

to be listed as a principal. The collections of information related to

Form 8-R were previously approved by OMB in accordance with the PRA and

assigned OMB control numbers 3038-0023 and 3038-0072. Additionally, the

Commission no longer requires individuals and entities to use

Commission Form 3-R to update their registration information, which now

can be updated directly on Forms 7-R or 8-R. The Commission therefore

is reassigning to Forms 7-R and 8-R the information collection burdens

previously associated with Commission Form 3-R. The collection of

information related to Form 3-R was previously approved by OMB in

accordance with the PRA and assigned OMB control number 3038-0023.

1. Form 8-R Revision

The revised Form 8-R contains several changes that increase the

existing information collection burden, currently 0.8 hours, associated

with Form 8-R. The Commission estimates that the changes, which are

discussed below, when considered together in aggregate add a total of

0.1 burden hours to the information collection burdens associated with

Form 8-R.

[[Page 19664]]

First, in the ``Fingerprint Card Information'' section, revised

Form 8-R adds two new questions. One new question addresses new

requirements and exemptions thereto contained in Commission Regulation

3.21(e) applicable to non-U.S. persons. The other new question

addresses the fingerprinting requirement exception for certain outside

directors of registered firms. Second, in the section titled

``Disciplinary Information--Regulatory Disclosures,'' a new question

was added to existing Question E. Among other things, Question E

inquires whether the applicant (or an entity of which the applicant was

a principal) violated, or aided and abetted the violation of, any

investment-related statutes or regulations, a potential statutory basis

for refusing or conditioning registration. The new question directs the

applicant to disclose whether he or she has ever been found to have

``failed to supervise another person's activities under any investment-

related statute or regulation.'' Third, in the section titled

``Disciplinary Information--Financial Disclosures,'' the Commission

revised Question J. Prior to the revision, Question J asked whether the

applicant has ``currently failed to comply with any order to pay any

futures-related civil monetary penalties, restitution amounts,

disgorgement amounts, reparation amounts or arbitration awards.'' As

revised, Question J now inquires whether the applicant ``failed to pay

any arbitration awards involving CFTC-regulated products, CFTC civil

monetary penalties, CFTC restitution amounts, CFTC disgorgement

amounts, or CFTC reparation amounts.''

The revised Form 8-R also contains several changes that do not

alter the information collection burdens associated with Form 8-R.

First, the revised Form 8-R combines into a single form two separate,

existing versions of the Form 8-R, the Form 8-R ``Individual

Application'' and the Form 8-R ``Floor Trader Order Enterer Individual

Application,'' both of which were previously approved by OMB. In the

section titled ``Sponsor Information and Registration Categories,'' the

revised Form 8-R adds ``floor trader order enterer'' as a new category

of persons that can be associated with a sponsor. Also in connection

with this change, the revised Form 8-R includes two newly defined

terms: ``entity floor trader'' and ``floor trader order enterer.''

Second, in the section titled ``Principal Information,'' the prior

version of Form 8-R contained a blank space in which an applicant

entered a title. In the revised Form 8-R, the space is replaced with a

list of available titles for applicants to choose from. Third, NFA is

simplifying the process by which it requests supplemental information

and documentation regarding the applicant's criminal, regulatory or

financial disclosures. The prior version of Form 8-R requested that

applicants provide a written explanation of the facts and circumstances

regarding any such disclosures. Applicants were also separately

requested to provide NFA with copies of pertinent documents associated

with each disclosure. To consolidate and modernize this process, the

revised Form 8-R allows applicants to complete a separate ``Disclosure

Matter Page'' for each matter, instance or event requiring disclosure

and to simultaneously upload all pertinent documents associated with

each disclosure. The Disclosure Matter Page provides applicants with an

efficient and effective method of supplying the supplemental

information and documentation that NFA requests in the normal course

whenever an applicant responds affirmatively to any of the questions

regarding criminal, regulatory or financial disclosures.

Lastly, the revised Form 8-R contains numerous changes to the

language, formatting and organization of Form 8-R, all of which--

individually and collectively--do not alter the information collection

burdens associated with Form 8-R. The only changes to Form 8-R that

affect the information collection burdens associated with the form are

those discussed above.

2. Cancellation of Form 3-R

Commission Regulations 3.11 and 3.31 historically required entities

and individuals to use Commission Form 3-R to update or correct certain

types of information that originally was supplied on Commission Forms

7-R or 8-R, the registration forms for entities and individuals

respectively. Regulations 3.11 and 3.31 were amended in 2012 to reflect

a new practice whereby Forms 7-R and 8-R could be directly updated

online, and the requirement to use Form 3-R for updates, or for any

other purpose, was deleted from the Commission rules. At that time,

however, the Commission did not reassign to Forms 7-R and 8-R the

information collection burden associated with the Form 3-R. The

Commission is doing so now.

The information collection burden associated with Form 3-R is 0.1

hours. In reassigning that burden to Forms 7-R and 8-R, the Commission

believes that it is appropriate to adopt a conservative approach and

assign an additional 0.1 hours each to the Form 7-R and 8-R.

Accordingly, by virtue of cancelling Form 3-R, and reassigning to Forms

7-R and 8-R the information collection burdens associated with Form 3-

R, the information collections burdens for Forms 7-R and 8-R each will

increase by 0.1 hours. The reassignment of the information collection

burden from Form 3-R to Forms 7-R and 8-R reallocates the information

collection burdens within OMB control number 3038-0023, and does not

increase or decrease the total information collection burden under that

control number.

3. Invitation to Comment

With respect to the information collections discussed above, the

CFTC invites comments on:

Whether the proposed revision to the collection of

information is necessary for the proper performance of the functions of

the Commission, including whether the information will have a practical

use;

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

the proposed revision to the 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 further use of

appropriate automated electronic, mechanical, or other technological

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

permitting electronic submission of responses.

Burden Statement: As explained above, the Commission believes that

the revisions to Form 8-R increase the information collection burdens

associated with that Form under OMB control numbers 3038-0023 and 3038-

0072. Additionally, the Commission believes that reassigning to Forms

7-R and 8-R the information collection burdens formerly associated with

Commission Form 3-R reallocates the information collection burdens

within OMB control number 3038-0023, and therefore does not increase or

decrease the total information collection burden under that control

number.

The Commission estimates the burden of this collection of

information under OMB control number 3038-0023 to be:

Respondents/Affected Entities: (1) Users of Form 7-R, specifically

futures commission merchants, retail foreign exchange dealers,

introducing brokers, commodity trading advisors, commodity pool

operators, floor trader firms, and

[[Page 19665]]

leverage transaction merchants; and (2) users of Form 8-R, specifically

(i) associated persons of futures commission merchants, retail foreign

exchange dealers, introducing brokers, commodity trading advisors,

commodity pool operators, and leverage transaction merchants; floor

brokers; (ii) principals of futures commission merchants, retail

foreign exchange dealers, introducing brokers, commodity trading

advisors, commodity pool operators, floor trader firms, or leverage

transaction merchants; (iii) floor brokers; (iv) floor traders; and (v)

floor trader order enterers.

Estimated Number of Respondents: 78,109.

Estimated Total Annual Burden on Respondents: 7,210 hours.

Frequency of Collection: Periodically.

There are no capital costs or operating and maintenance costs

associated with this collection.

The Commission estimates the burden of this collection of

information under OMB control number 3038-0072 to be:

Respondents/Affected Entities: (1) Users of Form 7-R, specifically

swap dealers and major swap participants; and (2) users of Form 8-R,

specifically principals of swap dealers and of major swap participants.

Estimated Number of Respondents: 770.

Estimated Total Annual Burden on Respondents: 648 hours.

Frequency of Collection: Periodically.

There are no capital costs or operating and maintenance costs

associated with this collection.

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

Dated: April 24, 2017.

Robert N. Sidman,

Deputy Secretary of the Commission.

[FR Doc. 2017-08559 Filed 4-27-17; 8:45 am]

BILLING CODE 6351-01-P

 

Last Updated: April 28, 2017