2022-09014
[Federal Register Volume 87, Number 82 (Thursday, April 28, 2022)]
[Notices]
[Pages 25228-25230]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-09014]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Extend Collection 3038-0052: Core Principles & Other Requirements for
DCMs
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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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\
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\1\ The OMB control numbers for the CFTC regulations were
published on December 30, 1981. See 46 FR 63035 (Dec. 30, 1981).
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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.
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\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.
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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.
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\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.
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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\
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\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.
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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\
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\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.
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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
use;
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\
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\8\ 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 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
Volume):
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
Notifications):
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]
BILLING CODE 6351-01-P