Federal Register, Volume 84 Issue 64 (Wednesday, April 3, 2019) 
[Federal Register Volume 84, Number 64 (Wednesday, April 3, 2019)]
[Pages 13008-13009]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-06444]



Agency Information Collection Activities: Notice of Intent To
Revise Collection 3038-0052; Core Principles and Other Requirements for
Designated Contract Markets

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.


SUMMARY: The Commodity Futures Trading Commission (``Commission'') is
announcing an opportunity for public comment on the proposed revision
of a collection of certain information by the agency. Under the
Paperwork Reduction Act (``PRA''), Federal agencies are required to
publish notice in the Federal Register concerning each proposed
collection of information, including proposed revision of an existing
collection of information, and to allow 60 days for public comment.
This notice solicits comments on the revision of estimates contained in
information collection requirements related to the recent amendment of
the timing and scope of a report required to be filed by self-
regulatory organizations (SROs) pursuant to Commission Regulation 1.52.

DATES: Comments must be submitted on or before June 3, 2019.

ADDRESSES: You may submit comments, identified by ``OMB Control No.
3038-0052'' by any of the following methods:
     The Agency's website, at http://comments.cftc.gov/. Follow
the instructions for submitting comments through the website.
     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.
    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.

FOR FURTHER INFORMATION CONTACT: Joshua Beale, Associate Director,
Division of Swap Dealer and Intermediary Oversight, Commodity Futures
Trading Commission, (202) 418-5447; email: [email protected].

SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq.,
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, including each proposed revision of an existing collection
of information, before submitting the collection to OMB for approval.
To comply with this requirement, the CFTC is publishing notice for the
amendment of the collection 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 control number.
    Title: Core Principles and Other Requirements for Designated
Contract Markets (OMB Control No. 3038-0052). This is a request for a
revision of a currently approved information collection.
    Abstract: The Commission has recently amended its regulation 1.52
to revise the scope and potential frequency of a third-party expert's
evaluation of SROs' financial surveillance programs. The evaluation
report requirement is a portion of the existing information collection
of requirements for SROs under Commission regulation 1.52, including
Designated Contract Markets and the National Futures Association. The
Commission's rulemaking will not alter the requirement for an SRO to
engage an examinations expert to evaluate its supervisory program prior
to the initial use of the supervisory program. The Commission, however,
is eliminating the requirement that the examinations expert must review
the SRO's ongoing application of its supervisory program during
periodic reviews and the analysis of the supervisory program's design
to detect material weaknesses in internal controls during both periodic
reviews and the initial review prior to the program's initial use. The
Commission also is revising the frequency of when an SRO must engage an
examinations expert. Regulation 1.52 required an SRO to engage an
examinations expert at least once every three years to perform such a
review. The Commission amended Regulation 1.52 to require an SRO to
engage an examinations expert whenever the Public Company Accounting
Oversight Board (``PCAOB'') issues new or revised auditing standards
that are material to the SRO's examination of member FCMs. The
amendments further require an SRO to engage an examinations expert at
least once every five years even if the SRO determined that the PCAOB
did not issue new or revised auditing standards during the previous
five-year period that are material to its examinations of member FCMs.
The changes to the examinations expert reviews impact the resulting
expert reports information collection burden. The information
collection is necessary to enhance the ability of the Commission and
the designated self-regulatory organization to identify problematic
financial matters in time to avoid market disruptions when an FCM may
fail, particularly with respect to the tie-up of customer funds that
may result.

[[Page 13009]]

    The Commission, when originally proposing changes to regulation
1.52, invited comments on its assessment that although the costs
associated with obtaining the third-party expert would be reduced by
the amendment, the paperwork burden impact of the amended scope of the
report would be minimal. The Commission received no comments and has
adopted the final rule. However, the Commission has determined that a
slight revision of the expected burden hours associated with the
information collection is possible due to the changes related to the
third-party examinations expert report. Accordingly, the Commission is
revising the total burden hours related to regulation 1.52 included in
this collection.
    The Commission previously estimated the entire burden hours for
designated contract markets as SROs associated with regulation 1.52 as
50 hours per respondent. The revised scope of the third-party
evaluation report should slightly reduce personnel hours needed to
coordinate obtaining the report, although most of the burden hours
included in this collection are associated with other aspects of the
financial surveillance program requirements. Therefore, the Commission
is revising the estimate of the burden hours associated with regulation
1.52 to be 49 hours per respondent. Additionally, the Commission notes
that the number of registered, active DCMs has decreased from 15 to 14.
    With respect to the collection of information, the CFTC invites
comments on:
     Whether the proposed collection of information is
necessary for the proper performance of the functions of the
Commission, including whether the information will have a practical
     The accuracy of the Commission's estimate of the burden of
the proposed 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 use of appropriate
automated electronic, mechanical, or other technological collection
techniques or other forms of information technology; e.g., permitting
electronic submission of responses.
    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.\1\

    \1\ 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 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 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.
    Burden Statement: The Commission is revising its estimate of the
burden for this collection.\2\ The respondent burden for this
collection is estimated to be as follows:

    \2\ There are three Information Collection's (ICs) that fall
within OMB Control No. 3038-0052. The changes in the Final rules
adopted herein only pertain to IC: Enhancing Protections Afforded
Customers and Customer Funds Held by Futures Commission Merchants
and Derivatives Clearing Organizations and relate only to amendments
to Regulation 1.52, which has been reduced by 1 burden hour per
respondent. Additionally, the number of respondents has decreased
from 15 to 14.

    Respondents/Affected Entities: Designated Contract Markets and
Self-regulatory Organizations.
    Estimated Number of Respondents: 14.
    Estimated Average Burden Hours per Respondent: 49.
    Estimated Total Annual Burden Hours: 686.
    Frequency of Collection: Various.
    The amended regulations require no new startup or operations and
maintenance costs.

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

    Dated: March 29, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-06444 Filed 4-2-19; 8:45 am]