[Federal Register Volume 85, Number 249 (Tuesday, December 29, 2020)]
[Pages 85602-85604]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-28711]



Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.


SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA),
this notice announces that the Information Collection Request (ICR)
abstracted below has been forwarded to the Office of Information and
Regulatory Affairs (OIRA), of the Office of Management and Budget
(OMB), for review and comment. The ICR describes

[[Page 85603]]

the nature of the information collection and its expected costs and

DATES: Comments must be submitted on or before January 28, 2021.

ADDRESSES: Written comments and recommendations for the proposed
information collection should be submitted within 30 days of this
notice's publication to OIRA, at https://www.reginfo.gov/public/do/PRAMain. Please find this particular information collection by
selecting ``Currently under 30-day Review--Open for Public Comments''
or by using the website's search function. Comments can be entered
electronically by clicking on the ``comment'' button next to the
information collection on the ``OIRA Information Collections Under
Review'' page, or the ``View ICR--Agency Submission'' page. A copy of
the supporting statement for the collection of information discussed
herein may be obtained by visiting https://www.reginfo.gov/public/do/PRAMain.
    In addition to the submission of comments to https://Reginfo.gov as
indicated above, a copy of all comments submitted to OIRA may also be
submitted to the Commodity Futures Trading Commission (the
``Commission'' or ``CFTC'') by clicking on the ``Submit Comment'' box
next to the descriptive entry for OMB Control No. 3038-0062, at https://comments.cftc.gov/FederalRegister/PublicInfo.aspx.
    Or by either of the following methods:
     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.
    All comments must be submitted in English, or if not, accompanied
by an English translation. Comments submitted to the Commission should
include 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\ 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 https://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.

    \1\ 17 CFR 145.9.

FOR FURTHER INFORMATION CONTACT: Gregory Scopino, Special Counsel,
Market Participants Division, Commodity Futures Trading Commission,
(202) 418-5175; email: [email protected], and refer to OMB Control No.

    Title: Off-Exchange Foreign Currency Transactions. (OMB Control No.
3038-0062). This is a request for anextension 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

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of the Food, Conservation, and Energy Act of 2008 \2\ 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.\3\

    \2\ Public Law 110-246, 122 Stat. 1651, 2189-220 (2008).
    \3\ See Regulation of Off-Exchange Retail Foreign Exchange
Transactions and Intermediaries, 75 FR 55410, 55416 (Sept. 10,

    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.\4\ On October 26, 2020, the
Commission published in the Federal Register notice of the proposed
extension of this information collection and provided 60 days for
public comment on the proposed extension, 85 FR 67721 (``60-Day
Notice''). The Commission did not receive any comments on the 60-Day

    \4\ The OMB control numbers for the CFTC regulations were
published on December 30, 1981. See 46 FR 63035 (Dec. 30, 1981).

    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.\5\

    \5\ 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: December 22, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020-28711 Filed 12-28-20; 8:45 am]