[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Pages 25228-25230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09014]



Agency Information Collection Activities: Notice of Intent To 
Extend Collection 3038-0052: Core Principles & Other Requirements for 

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.


SUMMARY: The Commodity Futures Trading Commission (``Commission'' or 
``CFTC'') 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 reporting requirements 
relating to collections of information related to designated contract 
markets (``DCMs'') under the Commission's regulations.

DATES: Comments must be submitted on or before June 27, 2022.

ADDRESSES: You may submit comments, identified by ``OMB Control No. 
3038-0052'' by any of the following methods:
     The Agency's website, at https://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.

FOR FURTHER INFORMATION CONTACT: Roger Smith, Associate Chief Counsel, 
Division of Market Oversight, Commodity Futures Trading Commission, 
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; 202-
418-5344; 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 extension of an existing 
collection of information, before submitting the collection to OMB for 
approval. To comply with this requirement, the Commission is publishing 
notice of the proposed extension of the existing 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.\1\

    \1\ The OMB control numbers for the CFTC regulations were 
published on December 30, 1981. See 46 FR 63035 (Dec. 30, 1981).

    Title: Core Principles & Other Requirements for DCMs (OMB Control 
No. 3038-0052). This is a request for a revision and extension of a 
currently approved information collection.
    Abstract: The regulations governing designated contract markets 
(``DCMs'') originally were adopted pursuant to the Commodity Futures 
Modernization Act of 2000, which amended section 5 of the Commodity 
Exchange Act (``CEA'') to impose requirements concerning the 
registration \2\ and operation of DCMs.\3\ The DCM statutory framework 
subsequently was revised as a result of further amendments to the CEA 
under Title VII of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (``Dodd-Frank Act'').\4\ Part 38 of the Commission's 
regulations governs the activities of DCMs. The information collected 
pursuant to Part 38 is

[[Page 25229]]

necessary for the Commission to evaluate whether entities operating as, 
or applying to become, DCMs comply with the Part 38 and other 
Commission requirements and the CEA's statutory requirements.

    \2\ The Commission notes that the terms ``registered'' and 
``designated'' are used interchangeably and mean the same thing.
    \3\ 7 U.S.C. 1 et seq.
    \4\ See Dodd-Frank Wall Street Reform and Consumer Protection 
Act, Public Law 111-203, tit. VII, 124 Stat. 1376 (2010) (codified 
as amended in various sections of 7 U.S.C.), available at https://www.cftc.gov/sites/default/files/idc/groups/public/@lrfederalregister/documents/file/2013-12242a.pdf.

    Collection 3038-0052 was created in response to the Part 38 
regulatory requirements for DCMs. In general, OMB Control Number 3038-
0052 covers all information collections in Part 38, including Subpart A 
and the DCM core principles (i.e., Subparts B through X) as well as the 
related appendices thereto (i.e., Appendix A--Form DCM; Appendix B--
Guidance on, and Acceptable Practices in, Compliance with Core 
Principles; and Appendix C--Demonstration of Compliance That a Contract 
Is Not Readily Susceptible to Manipulation). Further, this OMB control 
number, 3038-0052, also includes all information collections related to 
Part 9 (``Rules Relating to Review of Exchange Disciplinary, Access 
Denial or Other Adverse Actions'') to the extent Part 9 is applicable 
to DCMs.\5\ This collection also includes the requirements under 
regulation 38.251(g) in connection with the reporting of specific 
market disruption events to the Commission.

    \5\ Section 38.707 specifically references Part 9. Accordingly, 
the Commission's previous information collection estimates under 
Part 38 have included compliance with Part 9 to the extent 
applicable to DCMs. The Commission is referencing DCMs' compliance 
obligations with Part 9 for the sake of clarity, but this does not 
represent a new or modified information collection.

    This OMB control number, 3038-0052, also includes collections under 
regulation 1.52 regarding the Enhanced Protections Afforded Customer 
and Customer Funds Held by Futures Clearing Merchants and Derivatives 
Clearing Organizations. Commission regulation 1.52 imposes information 
collection burdens on DCMs.\6\

    \6\ The Commission notes that Sec.  38.605 incorporates and 
references Sec.  1.52. Accordingly, the Commission's previous 
information collection estimates under Part 38 have included 
compliance with Sec.  1.52 to the extent applicable to DCMs. The 
Commission is referencing DCMs' compliance obligations with Sec.  
1.52 for the sake of clarity, but this does not represent a new or 
modified information collection.

    Additionally, this OMB control number, 3038-0052, also includes 
collections under regulation 38.1051(n) that relate to system 
safeguards and cybersecurity testing requirements and requires DCMs to 
provide the Commission with annual trading volume information.
    For the majority of collections under OMB control number 3038-0052, 
the Commission notes that the number of registered, active DCMs has 
increased from 14 to 16. This increase in the number of registered DCMs 
will increase the total information collection burdens for OMB control 
number 3038-0052 as shown below.\7\

    \7\ For the collections related to Commission regulation 
38.251(g), the Commission notes that the number of registered, 
active DCMs has decreased from 17 to 16. This decrease is reflected 
below for collections related to Commission regulation 38.251(g). 
However, despite this decrease, the total information collection 
burdens for OMB control number 3038-0052 will increase.

    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 for 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.\8\

    \8\ 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 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 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.
    Burden Statement: The Commission is revising its estimate of the 
burden for this collection to reflect the current number of respondents 
and estimated burden hours. The respondent burden for this collection 
is estimated to be as follows:
     Regulatory & Core Principle Compliance Part 38 (Subparts 
A-W) and related Appendices:
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 330.
    Estimated Total Annual Burden Hours: 5,280.
    Frequency of Collection: Per Trading Day.
     Sec.  1.52 (Examination Program and Audit of Program):
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 49.
    Estimated Total Annual Burden Hours: 784.
    Frequency of Collection: Annually.
     Core Principle 16 ``Conflicts of Interest'' and Related 
Acceptable Practices (Annual Assessment Report):
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 70.
    Estimated Total Annual Burden Hours: 1,120.
    Frequency of Collection: Annually.
     Sec.  38.1101 et al. (Quarterly Financial Reports):
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 40.
    Estimated Total Annual Burden Hours: 640.
    Frequency of Collection: Quarterly.
     Sec.  38.1051(n) (Required Production of Annual Trading 
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 0.5.
    Estimated Total Annual Burden Hours: 8.
    Frequency of Collection: Annually.
     Sec.  38.3 and Form DCM (DCM Registration):
    Estimated Number of Respondents: 4.
    Estimated Average Burden Hours per Respondent: 300.
    Estimated Total Annual Burden Hours: 1,200 hours.
    Frequency of Collection: As applicable.
     Sec.  38.251(g) (Required Market Disruptions 
    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 66.4 hours.
    Estimated Total Annual Burden Hours: 1,062.4 hours.
    Frequency of Collection: As needed.
     Sec. Sec.  38.950 and 38.951 (Recordkeeping Related to 
Compliance with 38.251(g)):

[[Page 25230]]

    Estimated Number of Respondents: 16.
    Estimated Average Burden Hours per Respondent: 25 hours.
    Estimated Total Annual Burden Hours: 400 hours.
    Frequency of Collection: As needed.
     Total Annual Burden for the Collection: 10,494.4 hours.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

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

    Dated: April 22, 2022.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-09014 Filed 4-27-22; 8:45 am]