Federal Register, Volume 85 Issue 207 (Monday, October 26, 2020) 
[Federal Register Volume 85, Number 207 (Monday, October 26, 2020)]
[Pages 67721-67723]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-23669]



Agency Information Collection Activities: Notice of Intent To
Extend Collection 3038-0062: Off-Exchange Foreign Currency Transactions

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.


SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or
``Commission'') is announcing an opportunity for public comment on the
proposed renewal 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 each proposed extension
of an existing collection of information, and to allow 60 days for
public comment. This notice solicits comments on the collection of
information provided for by Part 5 of the Commission's regulations
under the Commodity Exchange Act (``CEA'') relating to off-exchange
foreign currency transactions.

DATES: Comments must be submitted on or before December 28, 2020.

ADDRESSES: You may submit comments, identified by ``OMB Control No.
3038-0062'' 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 https://www.cftc.gov.

[[Page 67722]]

FOR FURTHER INFORMATION CONTACT: Gregory Scopino, Special Counsel,
Division of Swap Dealer & Intermediary Oversight, Commodity Futures
Trading Commission, (202) 418-5175; 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 before submitting the collection to OMB for approval. To
comply with this requirement, the CFTC is publishing notice of the
proposed collection 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
control number.
    Title: Off-Exchange Foreign Currency Transactions (OMB Control No.
3038-0062). This is a request for an extension of a currently approved
information collection.
    Abstract: Part 5 of the Commission's regulations under the CEA
establishes rules applicable to retail foreign exchange dealers
(``RFEDs''), futures commission merchants (``FCMs''), introducing
brokers (``IBs''), commodity trading advisors (``CTAs''), and commodity
pool operators (``CPOs'') engaged in the offer and sale of off-exchange
forex contracts to retail customers. Specifically:
     Regulation 5.5 requires RFEDs, FCMs, and IBs to distribute
risk disclosure statements to new retail forex customers.
     Regulation 5.6 requires RFEDs and FCMs to report any
failures to maintain the minimum capital required by Commission
     Regulation 5.8 requires RFEDs and FCMs to calculate their
total retail forex obligation.
     Regulation 5.10 requires RFEDs to maintain and preserve
certain risk assessment documentation.
     Regulation 5.11(a)(1) requires RFEDs to submit certain
risk assessment documentation to the Commission within 60 days of the
effective date of their registration.
     Regulation 5.11(a)(2) requires RFEDs to submit certain
financial documentation to the Commission within 105 calendar days of
the end of each fiscal year. RFEDs must also submit additional
information, if requested, regarding affiliates' financial impact on an
RFED's organizational structure.
     Regulation 5.12(a) requires RFED applicants to submit a
Form 1-FR-FCM concurrently with their registration application.
     Regulation 5.12(b) requires registered RFEDs to file a
Form 1-FR-FCM on a monthly and annual basis.
     Regulation 5.12(g) states that, in the event that an RFED
cannot file its Form 1-FR-FCM for any period within the time specified
in Regulation 5.12(b), the RFED may file an application for an
extension of time with its self-regulatory organization.
     Regulation 5.13(a) requires RFEDs and FCMs to provide
monthly account statements to their customers.
     Regulation 5.13(b) requires RFEDs and FCMs to provide
confirmation statements to their customers within one business day
after the execution of any retail forex or forex option transaction.
     Regulation 5.14 requires RFEDs and FCMs to maintain
current ledgers of each transaction affecting its asset, liability,
income, expense and capital accounts.
     Regulation 5.18(g) requires each RFED, FCM, CPO, CTA, and
IB subject to part 5 to maintain a record of all communications
received that give rise to possible violations of the Act, rules,
regulations or orders thereunder related to their retail forex
     Regulation 5.18(i) requires each RFED and FCM to prepare
and maintain on a quarterly basis a calculation of non-discretionary
retail forex customer accounts open for any period of time during the
quarter that were profitable, and the percentage of such accounts that
were not profitable.
     Regulation 5.18(j) requires the CCO of each RFED and FCM
to certify annually that the firm has in place processes to establish,
maintain, review, modify and test policies and procedures reasonably
designed to achieve compliance with the Act, rules, regulations and
orders thereunder.
     Regulation 5.19 requires each RFED, FCM, CPO, CTA, and IB
subject to part 5 to submit to the Commission copies of any dispositive
or partially dispositive decision for which a notice of appeal has been
filed in any material legal proceeding (1) to which the firm is a party
to or to which its property or assets is subject with respect to retail
forex transactions, or (2) instituted against any person who is a
principal of the firm arising from conduct in such person's capacity as
a principal of that firm.
     Regulation 5.20 requires RFEDs, FCMs and IBs to submit
documentation requested pursuant to certain types of special calls by
the Commission.
     Regulation 5.23 requires RFEDs, FCMs and IBs to notify the
Commission regarding bulk transfers and bulk liquidations of customer
    The rules establish reporting and recordkeeping requirements that
are necessary to implement the provisions of the Food, Conservation,
and Energy Act of 2008 \1\ regarding off-exchange transactions in
foreign currency with members of the public. The rules are intended to
promote customer protection by providing safeguards against
irresponsible or fraudulent business practices.\2\

    \1\ Public Law 110-246, 122 Stat. 1651, 2189-220 (2008).
    \2\ See Regulation of Off-Exchange Retail Foreign Exchange
Transactions and Intermediaries, 75 FR 55410, 55416 (Sept. 10,

    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.\3\

    \3\ 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

[[Page 67723]]

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 for 146 respondents, which include RFEDs,
FCMs, IBs, CPOs, and CTAs. The respondent burden for this collection is
estimated to be as follows:
    Estimated Number of Respondents: 146.
    Estimated Average Burden Hours per Respondent: 2,865.\4\

    \4\ This figure has been rounded to the nearest one: 2,864.972
to 2865.

    Estimated Total Annual Burden Hours: 418,286.
    Frequency of Collection: As applicable.
    There are no capital costs or operating and maintenance costs
associated with this collection.

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

    Dated: October 21, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-23669 Filed 10-23-20; 8:45 am]