[Federal Register Volume 88, Number 198 (Monday, October 16, 2023)]
[Pages 71341-71342]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-22748]



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 a 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 certain 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 15, 2023.

ADDRESSES: You may submit comments, identified by ``OMB Control No. 
3038-0062'' 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: Philip Newsom, Special Counsel, Market 
Participants Division, Commodity Futures Trading Commission, (202) 418-
5301, or [email protected], and refer to OMB Control No. 3038-0062.

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 CFTC is publishing 
notice of the proposed extension of the existing collections 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\ 44 U.S.C. 3512, 5 CFR 1320.5(b)(2)(i) and 1320.8(b)(3)(vi).

    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 

[[Page 71342]]

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 nondiscretionary 
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 chief compliance officer 
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 \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, 

    With respect to the collection of information, the CFTC invites 
comments on:
     Whether the proposed collections of information are 
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 burdens 
of the proposed collections 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 burdens 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.
    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. 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.\4\

    \4\ 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 requests 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 burden estimate 
for 81 respondents, which include RFEDs, FCMs, IBs, CPOs, and CTAs, as 
    Estimated Number of Respondents: 81.
    Estimated Average Burden Hours per Respondent: 1,757.\5\

    \5\ This figure has been rounded from 1,757.09 to the nearest 
whole number.

    Estimated Total Annual Burden Hours: 142,324.
    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 11, 2023.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2023-22748 Filed 10-13-23; 8:45 am]