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 Commodity Futures Trading Commission
 AGENCY: Commodity Futures Trading Commission.
 ACTION: Notice of 2020 schedule of fees.
 SUMMARY: The Commodity Futures Trading Commission (“CFTC” or “Commission”) charges fees to designated contract markets and registered futures associations to recover the costs incurred by the Commission in the operation of its program of oversight of self-regulatory organization rule enforcement programs, specifically National Futures Association (“NFA”), a registered futures association, and the designated contract markets. Fees collected from each self-regulatory organization are deposited in the Treasury of the United States as miscellaneous receipts. The calculation of the fee amounts charged for 2020 by this notice is based upon an average of actual program costs incurred during fiscal year (“FY”) 2017, FY 2018, and FY 2019.
 DATES: Each self-regulatory organization is required to remit electronically the applicable fee on or before March 22, 2021.
 FOR FURTHER INFORMATION CONTACT: Anthony C. Thompson, Executive Director and Chief Administrative Officer, Commodity Futures Trading Commission; (202) 418-5697; Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. For information on electronic payment, contact Jennifer Fleming; (202) 418-5034; Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.


SUPPLEMENTARY INFORMATION: I. Background Information A. General This notice relates to fees for the Commission's review of the rule enforcement programs at the registered futures associations [1]
                    
                     and designated contract markets (“DCM”), each of which is a self-regulatory organization (“SRO”) regulated by the Commission. The Commission recalculates the fees charged each year to cover the costs of operating this Commission program.[2]
                    
                     The fees are set each year based on direct program costs, plus an overhead factor. The Commission calculates actual costs, then calculates an alternate fee taking volume into account, and then charges the lower of the two.[3] B. Overhead Rate The fees charged by the Commission to the SROs are designed to recover program costs, including direct labor costs and overhead. The overhead rate is calculated by dividing total Commission-wide overhead direct program labor costs into the total amount of the Commission-wide overhead pool. For this purpose, direct program labor costs are the salary costs of personnel working in all Commission programs. Overhead costs generally consist of the following Commission-wide costs: Indirect personnel costs (leave and benefits), rent, communications, contract services, utilities, equipment, and supplies. This formula has resulted in the following overhead rates for the most recent three years (rounded to the nearest whole percent): 169 percent for FY 2017, 182 percent for FY 2018, and 174 percent for FY 2019. C. Conduct of SRO Rule Enforcement Reviews Under the formula adopted by the Commission in 1993, the Commission calculates the fee to recover the costs of its rule enforcement reviews and examinations, based on the three-year average of the actual cost of performing such reviews and examinations at each SRO. The cost of operation of the Commission's SRO oversight program varies from SRO to SRO, according to the size and complexity of each SRO's 
                    ( print page 6305)
                    program. The three-year averaging computation method is intended to smooth out year-to-year variations in cost. Timing of the Commission's reviews and examinations may affect costs—a review or examination may span two fiscal years and reviews and examinations are not conducted at each SRO each year. As noted above, adjustments to actual costs may be made to relieve the burden on an SRO with a disproportionately large share of program costs. The Commission's formula provides for a reduction in the assessed fee if an SRO has a smaller percentage of United States industry contract volume than its percentage of overall Commission oversight program costs. This adjustment reduces the costs so that, as a percentage of total Commission SRO oversight program costs, they are in line with the pro rata percentage for that SRO of United States industry-wide contract volume. The calculation is made as follows: The fee required to be paid to the Commission by each DCM is equal to the lesser of actual costs based on the three-year historical average of costs for that DCM or one-half of average costs incurred by the Commission for each DCM for the most recent three years, plus a pro rata share (based on average trading volume for the most recent three years) of the aggregate of average annual costs of all DCMs for the most recent three years. The formula for calculating the second factor is: 0.5a + 0.5 vt = current fee. In this formula, “a” equals the average annual costs, “v” equals the percentage of total volume across DCMs over the last three years, and “t” equals the average annual costs for all DCMs. NFA has no contracts traded; hence, its fee is based simply on costs for the most recent three fiscal years. This table summarizes the data used in the calculations of the resulting fee for each entity: Table 1—Summary of Data Used in Fee Calculations
Actual total costs
3-Year
                             average 
                             actual costs
3-Year
                             total 
                             volume %
Adjusted
                             volume 
                             costs
2020
                             Assessed 
                             feeFY 2017
FY 2018
FY 2019Cantor Futures Exchange, L.P.
$60,045
$56,551

$38,866
0.02
$19,527
$19,527CBOE Futures Exchange, LLC
31,026
16,033
40,517
29,192
1.40
21,600
21,600Chicago Board of Trade
96,442
2,296
22,835
40,525
32.69
183,313
40,525Chicago Mercantile Exchange, Inc.
472,157
235,127
383,995
363,760
42.23
392,507
363,760Eris Exchange, LLC
53,010
33,170

28,727
0.01
14,397
14,397ICE Futures U.S., Inc.
199,090
50,096
73,464
107,550
6.86
87,993
87,993Minneapolis Grain Exchange, Inc.
42,226
438
39,525
27,396
0.05
13,944
13,944Nasdaq OMX Futures Exchange, Inc.
251,200
109,413
1,741
120,785
0.59
63,311
63,311New York Mercantile Exchange, Inc.
212,798
3,397
45,425
87,206
12.77
107,290
87,206Nodal Exchange, LLC
100,600
33,162
2,312
45,358
0.06
22,996
22,996North American Derivatives Exchange, Inc.
84,666
6,986
135,159
75,604
0.22
38,891
38,891OneChicago, LLC
36,444
61,276

32,573
0.20
17,276
17,276Subtotal
1,639,704
607,946
744,973
997,541
100.00
997,541
791,427National Futures Association
660,710
507,673
540,821
569,735


569,735Total
2,300,414
1,115,619
1,285,794
1,567,276
100.00
997,541
1,361,161
 An example of how the fee is calculated for one exchange, the Chicago Board of Trade, is set forth here: a. Actual three-year average costs = $40,525 b. The alternative computation is: [(.5) ($40,525)] + (.5) [(.3269048) ($997,541)] = $183,313 c. The fee is the lesser of a or b; in this case $40,525 As noted above, the alternative calculation based on contracts traded is not applicable to NFA because it is not a DCM and has no contracts traded. The Commission's average annual cost for conducting oversight review of the NFA rule enforcement program during fiscal years 2017 through 2019 was $569,735. The fee to be paid by the NFA for the current fiscal year is $569,735. II. Schedule of Fees Fees for the Commission's review of the rule enforcement programs at the registered futures associations and DCMs regulated by the Commission are as follows: Table 2—Schedule of Fees
3-Year
                             average 
                             actual costs
3-Year
                             total 
                             volume %
Adjusted
                             volume costs
2020
                             Assessed feeCantor Futures Exchange, L.P.
$38,866
0.02
$19,527
$19,527CBOE Futures Exchange, LLC
29,192
1.40
21,600
21,600Chicago Board of Trade
40,525
32.69
183,313
40,525Chicago Mercantile Exchange, Inc.
363,760
42.23
392,507
363,760Eris Exchange, LLC
28,727
0.01
14,397
14,397ICE Futures U.S., Inc.
107,550
6.86
87,993
87,993Minneapolis Grain Exchange, Inc.
27,396
0.05
13,944
13,944Nasdaq OMX Futures Exchange, Inc.
120,785
0.59
63,311
63,311New York Mercantile Exchange, Inc.
87,206
12.77
107,290
87,206Nodal Exchange, LLC
45,358
0.06
22,996
22,996North American Derivatives Exchange, Inc.
75,604
0.22
38,891
38,891OneChicago, LLC
32,573
0.20
17,276
17,276Subtotal
997,541
100.00
997,541
791,427( print page 6306)National Futures Association
569,735


569,735Total
1,567,276
100.00
997,541
1,361,161
 III. Payment Method The Debt Collection Improvement Act (DCIA) requires deposits of fees owed to the government by electronic transfer of funds. 
                    *See*31 U.S.C. 3720. For information about electronic payments, please contact Jennifer Fleming at (202) 418-5034 or 
                    *jfleming@cftc.gov,*
                     or see the CFTC website at 
                    *https://www.cftc.gov,*
                     specifically, 
                    *https://www.cftc.gov/​cftc/​cftcelectronicpayments.htm.* Fees collected from each self-regulatory organization shall be deposited in the Treasury of the United States as miscellaneous receipts. 
                    *See*7 U.S.C 16a. Issued in Washington, DC, on this 13th day of January, 2021, by the Commission. Robert Sidman, Deputy Secretary of the Commission.


# Footnotes

1.
    
                         National Futures Association is the only registered futures association. Back to Citation
 2.
    
                         
                        *See*
                         Section 237 of the Futures Trading Act of 1982, 7 U.S.C. 16a, and 31 U.S.C. 9701. For a broader discussion of the history of Commission fees, see 52 FR 46070, Dec. 4, 1987. Back to Citation
 3.
    
                         58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, app. B. Back to Citation


[FR Doc. 2021-01145 Filed 1-19-21; 8:45 am] BILLING CODE 6351-01-P