29546 Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 

1National Futures Association is the only 

registered futures association. 

2See 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. 

3 58 FR 42643, Aug. 11, 1993, and 17 CFR part 

1, appendix B. 

COMMODITY FUTURES TRADING 

COMMISSION 

Fees for Reviews of the Rule 

Enforcement Programs of Designated 

Contract Markets and Registered 

Futures Associations 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice of 2017 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 2017 by 

this notice is based upon an average of 

actual program costs incurred during 

fiscal year (‘‘FY’’) 2014, FY 2015, and 

FY 2016. 

DATES: Each self-regulatory organization 

is required to remit electronically the 

applicable fee on or before August 24, 

2018. 

FOR FURTHER INFORMATION CONTACT: 

Mary Jean Buhler, Chief Financial 

Officer, Commodity Futures Trading 

Commission; (202) 418–5089; 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 Commissionwide 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): 180 percent for FY 2014, 211 

percent for FY 2015, and 190 percent for 

FY 2016. 

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 

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. The following 

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 

average 

volume 

(%) 

Adjusted 

volume 

costs 

2016 

Actual 

fee 

2017 

Assessed 

FY 2014 FY 2015 FY 2016 fee 

CBOE Futures ................................................... .................... $158,209 $227,059 $128,423 1.31 $71,004 $73,074 $71,004 

Chicago Board of Trade .................................... $55,515 17,938 28,720 34,058 29.61 170,554 79,476 34,058 

Chicago Mercantile Exchange .......................... 225,701 540,151 372,278 379,377 44.66 421,246 385,923 379,377 

ICE Futures U.S ................................................ 81,176 105,864 386,719 191,253 9.22 143,431 153,429 143,431 

Minneapolis Grain Exchange ............................ 47,648 147,983 14,314 69,981 0.05 35,250 69,741 35,250 

NADEX North American .................................... 980 .................... 81,758 27,579 0.14 14,516 17,505 14,516 


amozie on DSK3GDR082PROD with NOTICES1
Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 29547 

TABLE 1—SUMMARY OF DATA USED IN FEE CALCULATIONS—Continued 

Actual total costs 3-Year 

average 

actual costs 

3-Year 

average 

volume 

(%) 

Adjusted 

volume 

costs 

2016 

Actual 

fee 

2017 

Assessed 

FY 2014 FY 2015 FY 2016 fee 

New York Mercantile Exchange ........................ 225,672 118,701 242,792 195,722 14.49 172,990 159,897 172,990 

One Chicago ..................................................... 31,196 289 282 10,589 0.29 6,798 28,384 6,798 

NASDAQ ........................................................... .................... .................... .................... .................... 0.21 1,089 .................... ....................

ERIS Exchange ................................................. .................... .................... .................... .................... 0.01 68 .................... ....................

NY LIFFE .......................................................... .................... .................... .................... .................... .................... .................... 4,909 ....................

ELX Futures ...................................................... .................... .................... .................... .................... .................... .................... 22,378 ....................

KCBT ................................................................. .................... .................... .................... .................... .................... .................... 186 ....................

Subtotal ...................................................... 667,888 1,089,134 1,353,921 $1,036,981 100 1,036,945 994,901 857,423 

National Futures Association ............................ 292,102 401,337 282,405 325,281 .................... .................... 293,312 325,281 

Total .................................................... 959,990 1,490,471 1,636,326 1,362,262 .................... .................... $1,288,214 1,182,704 

Note to Table 1: The 2017 Fee is the lesser of the 3-Year Average Actual Cost or the Adjusted Volume Cost. NY LIFFE, ELX, and KCBT are either Vacated or 

Dormant, but had direct labor costs in 2013 that produced a fee in 2016, based on the 3-Year Average. 

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 = 

$34,058. 

b. The alternative computation is: (.5) 

($34,058) + (.5) (.2961) ($1,036,981) = 

$170,554. 

c. The fee is the lesser of a or b; in 

this case $34,058. 

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 2014 through 2016 was $325,281. 

The fee to be paid by the NFA for the 

current fiscal year is $325,281. 

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 shown in the following table: 

TABLE 2—SCHEDULE OF FEES

3-Year 

average 

actual costs 

3-Year 

average 

volume 

(%) 

Adjusted 

volume 

costs 

2017 Fee: 

lesser of 

actual or 

calculated fee 

CBOE Futures ................................................................................................. $128,423 1.31 $71,004 $71,004 

Chicago Board of Trade .................................................................................. 34,058 29.61 170,554 34,058 

Chicago Mercantile Exchange ......................................................................... 379,377 44.66 421,246 379,377 

ICE Futures U.S .............................................................................................. 191,253 9.22 143,431 143,431 

Minneapolis Grain Exchange ........................................................................... 69,981 0.05 35,250 35,250 

NADEX North American .................................................................................. 27,579 0.14 14,516 14,516 

New York Mercantile Exchange ...................................................................... 195,722 14.49 172,990 172,990 

One Chicago .................................................................................................... 10,589 0.29 6,798 6,798 

NASDAQ .......................................................................................................... ........................ 0.21 1,089 ........................

ERIS Exchange ............................................................................................... ........................ 0.01 68 ........................

NY LIFFE ......................................................................................................... ........................ ........................ ........................ ........................

ELX Futures ..................................................................................................... ........................ ........................ ........................ ........................

KCBT ............................................................................................................... ........................ ........................ ........................ ........................

Subtotal ..................................................................................................... 1,036,981 100 1,036,945 857,423 

National Futures Association ........................................................................... 325,281 ........................ ........................ 325,281 

Total ................................................................................................... 1,362,262 ........................ ........................ 1,182,704 

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 www.cftc.gov, 

specifically, www.cftc.gov/cftc/ 

cftcelectronicpayments.htm. 

Fees collected from each selfregulatory 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 June 19, 

2018, by the Commission. 

Christopher Kirkpatrick, 

Secretary of the Commission. 

[FR Doc. 2018–13511 Filed 6–22–18; 8:45 am] 

BILLING CODE 6351–01–P 

COMMODITY FUTURES TRADING 

COMMISSION 

Agency Information Collection 

Activities: Notice of Intent To Renew 

Collection 3038–0021, Regulations 

Governing Bankruptcies of Commodity 

Brokers 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Notice. 

SUMMARY: The Commodity Futures 

Trading Commission (CFTC or 


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