4542 Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Rules and Regulations 

1The FCPIAA, Public Law 101–410 (1990), as 

amended, is codified at 28 U.S.C. 2461 note. The 

FCPIAA states that the purpose of the FCPIAA is 

to establish a mechanism that shall (1) allow for 

regular adjustment for inflation of civil monetary 

penalties; (2) maintain the deterrent effect of civil 

monetary penalties and promote compliance with 

the law; and (3) improve the collection by the 

Federal Government of civil monetary penalties. 

2For the relevant CMPs within the Commission’s 

jurisdiction, the Act provides only for maximum 

amounts that can be assessed for each violation of 

the Act or the rules, regulations and orders 

promulgated thereunder; the Act does not set forth 

any minimum penalties. Therefore, the remainder 

of this release will refer only to CMP maximums. 3Federal Civil Penalties Inflation Adjustment Act 

Improvements Act of 2015, Public Law 114–74, 129 

Stat. 584 (2015) (2015 Act), title VII, Section 701. 4FCPIAA Sections 4 and 5. See also, Adjustment 

of Civil Monetary Penalties for Inflation, 81 FR 

41435 (June 27, 2016). 5FCPIAA Sections 4 and 5. See also, Executive 

Office of the President, Office of Management and 

Budget Memorandum, M–24–07, Implementation of 

Penalty Inflation Adjustments for 2024 (Dec. 19, 

2023) (2023 OMB Guidance) (https://

www.whitehouse.gov/wp-content/uploads/2023/12/ 

M-24-07-Implementation-of-Penalty-InflationAdjustments-for-2024.pdf). 

2022 NAICS codes 2022 NAICS industry titles 

*******

Electronics Specialized Industry 

333310 ....................... Commercial and service industry machinery manufacturing. 

* * * * * * * 

334610 ....................... Manufacturing and reproducing magnetic and optical media. 

* * * * * * * 

Guided Missiles Specialized Industry 

*******

333310 ....................... Commercial and service industry machinery manufacturing. 

*******

334610 ....................... Manufacturing and reproducing magnetic and optical media. 

*******

*******

Sighting and Fire Control Equipment Specialized Industry 

333310 ....................... Commercial and service industry machinery manufacturing. 

* * * * * * * 

334610 ....................... Manufacturing and reproducing magnetic and optical media. 

* * * * * * * 

*******

* * * * * 

[FR Doc. 2024–01086 Filed 1–23–24; 8:45 am] 

BILLING CODE 6325–39–P 

COMMODITY FUTURES TRADING 

COMMISSION 

17 CFR Part 143 

RIN 3038–AF32 

Annual Adjustment of Civil Monetary 

Penalties To Reflect Inflation—2024 

AGENCY: Commodity Futures Trading 

Commission. 

ACTION: Final rule. 

SUMMARY: The Commodity Futures 

Trading Commission (Commission) is 

amending its rule that governs the 

maximum amount of civil monetary 

penalties imposed under the 

Commodity Exchange Act (CEA), to 

adjust for inflation. This rule sets forth 

the maximum, inflation-adjusted dollar 

amount for civil monetary penalties 

(CMPs) assessable for violations of the 

CEA and Commission rules, regulations 

and orders thereunder. The rule, as 

amended, implements the Federal Civil 

Penalties Inflation Adjustment Act of 

1990, as amended. 

DATES: This rule is effective on January 

24, 2024 and is applicable to penalties 

assessed after January 15, 2024. 

FOR FURTHER INFORMATION CONTACT: 

Edward J. Riccobene, Associate Chief 

Counsel, Division of Enforcement, at 

(202) 418–5327 or ericcobene@cftc.gov, 

Commodity Futures Trading 

Commission, 1155 21st Street NW, 

Washington, DC 20581. 

SUPPLEMENTARY INFORMATION: 

I. Background 

The Federal Civil Penalties Inflation 

Adjustment Act of 1990 (FCPIAA) 1

requires the head of each Federal agency 

to periodically adjust for inflation the 

minimum and maximum amount of 

CMPs provided by law within the 

jurisdiction of that agency.2 A 2015 

amendment to the FCPIAA 3 required 

agencies to make an initial ‘‘catch-up’’ 

adjustment to its civil monetary 

penalties effective no later than August 

1, 2016.4 For every year thereafter 

effective not later than January 15th, the 

FCPIAA, as amended, requires agencies 

to make annual adjustments for 

inflation, with guidance from the 

Director of the Office of Management 

and Budget.5

II. Commodity Exchange Act Civil 

Monetary Penalties 

The following sections of the CEA 

provide for CMPs that meet the FCPIAA 


ddrumheller on DSK120RN23PROD with RULES1
Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Rules and Regulations 4543 

6FCPIAA Section 3(2). 

7 7 U.S.C. 9, 13a–1, 13b. Criminal authorities may 

also seek fines for criminal violations of the CEA 

(see 7 U.S.C. 13, 13(c), 13(d), 13(e), and 13b). The 

FCPIA does not affect the amounts of these criminal 

penalties. 

8FCPIAA Sections 4 and 5. 

9FCPIAA Section 5(b)(1). 

10The CPI–U is published by the Department of 

Labor. Interested parties may find the relevant 

Consumer Price Index on the internet. To access 

this information, go to the Consumer Price Index 

Home Page at: http://www.bls.gov/cpi/. Click the 

‘‘CPI Data/Databases’’ heading, and select ‘‘All 

Urban Consumers (Current Series)’’, ‘‘Top Picks.’’ 

Then check the box for ‘‘U.S. city average, All 

items—CUUR0000SA0’’, and click the ‘‘Retrieve 

data’’ button. 

11FCPIAA Section 5(a). See also, 2023 OMB 

Guidance at 1. 

12Annual Adjustment of Civil Monetary Penalties 

to Reflect Inflation—2023, 88 FR 1501 (Jan. 11, 

2023); https://www.cftc.gov/sites/default/files/2023/ 

01/2023-00396a.pdf. 

13FCPIAA Section 6. 

14FCPIAA Section 4(b)(2). 

15 2023 OMB Guidance at 3–4. 

16 Lake Carriers’ Ass’n v. E.P.A., 652 F.3d 1, 10 

(D.C. Cir. 2011). 

17 5 U.S.C. 601–612. 

18 5 U.S.C. 603(a). 

19 44 U.S.C. 3507(d). 

definition 6 and these CMPs are, 

therefore, subject to the inflation 

adjustment: Sections 6(c), 6b, and 6c of 

the CEA.7

III. Annual Inflation Adjustment for 

Commodity Exchange Act Civil 

Monetary Penalties 

A. Methodology 

The FCPIAA annual inflation 

adjustment, in the context of the CFTC’s 

CMPs, is determined by increasing the 

maximum penalty by a ‘‘cost-of-living 

adjustment’’, rounded to the nearest 

multiple of one dollar.8 Annual 

inflation adjustments are based on the 

percent change between the October 

Consumer Price Index for all Urban 

Consumers (CPI–U) preceding the date 

of the adjustment, and the prior year’s 

October CPI–U.9 In this case, the 

October 2023 CPI–U (307.671)/October 

2022 CPI–U (298.012) = 1.03241.10 In 

order to complete the 2024 annual 

adjustment, the CFTC must multiply 

each of its most recent CMP amounts by 

the multiplier, 1.03241, and round to 

the nearest dollar.11

B. Civil Monetary Penalty Adjustments 

Applying the FCPIAA annual 

inflation adjustment methodology 

results in the following amended CMPs: 

Violations occurring on or after 11/02/2015 

U.S. Code citation Civil monetary penalty description Penalty amount 

in 2023 

final rule 12

CPI–U 

multiplier 

New adjusted 

penalty amount 

Civil Monetary Penalty Imposed by the Commission in an Administrative Action 

7 U.S.C. 9 (Section 6(c) of the 

Commodity Exchange Act).

For any person other than a registered entity1.

Other Than Manipulation or Attempted Manipulation.$194,710 1.03241 $201,021 

For any person other than a registered entity 1.

Manipulation or Attempted Manipulation.1,404,520 1.03241 1,450,040 

7 U.S.C. 13a (Section 6b of 

the Commodity Exchange 

Act).

For a registered entity 1 or any of its 

directors, officers or employees.

Other Than Manipulation or Attempted Manipulation.1,072,570 1.03241 1,107,332 

For a registered entity 1 or any of its 

directors, officers or employees.

Manipulation or Attempted Manipulation.1,404,520 1.03241 1,450,040 

Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action 

7 U.S.C. 13a–1 (Section 6c of 

the Commodity Exchange 

Act).

Any Person ......................................... Other Than Manipulation or Attempted Manipulation.214,514 1.03241 221,466 

Any Person ......................................... Manipulation or Attempted Manipulation.1,404,520 1.03241 1,450,040 

1The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act). 

The FCPIAA provides that any 

increase under the FCPIAA in a civil 

monetary penalty shall apply only to 

civil monetary penalties, including 

those whose associated violation 

predated such increase, which are 

assessed after the date the increase takes 

effect.13 Thus, the new CMP amounts 

established by this rulemaking shall 

apply to penalties assessed after January 

15, 2024, for violations that occurred on 

or after November 2, 2015, the effective 

date of the FCPIAA amendment 

requiring annual adjustments, the 2015 

Act. 

IV. Administrative Compliance 

A. Notice Requirement 

The FCPIAA specifically exempted 

from the Administrative Procedure Act 

(APA) the rulemakings required to 

implement annual inflation 

adjustments.14 This means that the 

public procedure the APA generally 

requires—notice, an opportunity for 

comment, and a delay in effective 

date—is not required for agencies to 

issue regulations implementing the 

annual adjustment.15 The Commission 

further notes that the notice and 

comment procedures of the APA do not 

apply to this rulemaking because the 

Commission is acting herein pursuant to 

statutory language that mandates that 

the Commission act in a 

nondiscretionary matter.16

B. Regulatory Flexibility Act 

The Regulatory Flexibility Act 17

requires agencies with rulemaking 

authority to consider the impact of 

certain of their rules on small 

businesses. A regulatory flexibility 

analysis is only required for rules for 

which the agency publishes a general 

notice of proposed rulemaking pursuant 

to section 553(b) or any other law.18

Because, as discussed above, the 

Commission is not obligated by section 

553(b) or any other law to publish a 

general notice of proposed rulemaking 

with respect to the revisions being made 

to Rule 143.8, the Commission 

additionally is not obligated to conduct 

a regulatory flexibility analysis. 

C. Paperwork Reduction Act 

The Paperwork Reduction Act of 1995 

(PRA),19 which imposes certain 

requirements on Federal agencies, 

including the Commission, in 

connection with their conducting or 

sponsoring any collection of 

information as defined by the PRA, does 

not apply to this rule. This rule 

amendment does not contain 

information collection requirements that 


ddrumheller on DSK120RN23PROD with RULES1
4544 Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Rules and Regulations 

20 7 U.S.C. 19(a). 

require the approval of the Office of 

Management and Budget. 

D. Consideration of Costs and Benefits 

Section 15(a) of the CEA 20 requires 

the Commission to consider the costs 

and benefits of its action before issuing 

a new regulation. Section 15(a) of the 

CEA further specifies that costs and 

benefits shall be evaluated in light of 

five broad areas of market and public 

concern: (1) protection of market 

participants and the public; (2) 

efficiency, competitiveness, and 

financial integrity of futures markets; (3) 

price discovery; (4) sound risk 

management practices; and (5) other 

public interest considerations. 

The Commission believes that 

benefits of this rulemaking greatly 

outweigh the costs, if any. As the 

Commission understands, the statutory 

provisions by which it is making costof-living adjustments to the CMPs in 

Rule 143.8 were enacted to ensure that 

CMPs do not lose their deterrence value 

because of inflation. An analysis of the 

costs and benefits of these adjustments 

were made before enactment of the 

statutory provisions under which the 

Commission is operating, and limit the 

discretion of the Commission to the 

extent that there are no regulatory 

choices the Commission could make 

that would supersede the pre-enactment 

analysis with respect to the five factors 

enumerated in Section 15(a) of the CEA, 

or any other factors. 

List of Subjects in 17 CFR Part 143 

Claims, Penalties. 

For the reasons set forth in the 

preamble, the Commodity Futures 

Trading Commission amends part 143 of 

chapter I of title 17 of the Code of 

Federal Regulations as follows: 

PART 143—COLLECTION OF CLAIMS 

OWED THE UNITED STATES ARISING 

FROM ACTIVITIES UNDER THE 

COMMISSION’S JURISDICTION 

■ 1. The authority citation for part 143 

continues to read as follows: 

Authority: 7 U.S.C. 9, 9a, 12a(5), 13a, 13a– 

1(d), 13(a), 13b; 31 U.S.C. 3701–3720E; 28 

U.S.C. 2461 note. 

■ 2. Amend § 143.8 by revising 

paragraph (b) to read as follows: 

§ 143.8 Inflation-adjusted civil monetary 

penalties. 

* * * * * 

(b) 2024 Inflation adjustment. The 

maximum amount of each civil 

monetary penalty in the following 

charts applies to penalties assessed after 

January 15, 2024: 

(1) For violations, other manipulation, 

or attempted manipulation: 

TABLE 1 TO PARAGRAPH (b)(1) 

U.S. Code citation Civil monetary penalty description 

Date of violation and corresponding penalty 

10/23/2004 

through 

10/22/2008 

10/23/2008 

through 

10/22/2012 

10/23/2012 

through 

11/01/2015 

11/02/2015 

to present 

Civil Monetary Penalty Imposed by the Commission in an Administrative Action 

7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).For any person other than a registered entity 1 .... $130,000 $140,000 $140,000 $201,021 

7 U.S.C. 13a (Section 6b of the Commodity Exchange Act).For a registered entity 1 or any of its directors, officers or employees.625,000 675,000 700,000 1,107,332 

Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action 

7 U.S.C. 13a–1 (Section 6c of the Commodity 

Exchange Act).

Any Person ........................................................... 130,000 140,000 140,000 221,466 

1The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act). 

(2) For manipulation or attempted 

manipulation violations: 

TABLE 2 TO PARAGRAPH (b)(2) 

U.S. Code citation Civil monetary penalty description 

Date of violation and corresponding penalty 

10/23/2004 

through 

05/21/2008 

05/22/2008 

through 

08/14/2011 

08/15/2011 

through 

11/01/2015 

11/02/2015 

to present 

Civil Monetary Penalty Imposed by the Commission in an Administrative Action 

7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).For any person other than a registered entity 1 .... $130,000 $1,000,000 $1,025,000 $1,450,040 

7 U.S.C. 13a (Section 6b of the Commodity Exchange Act).For a registered entity 1 or any of its directors, officers or employees.625,000 1,000,000 1,025,000 1,450,040 

Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action 

7 U.S.C. 13a–1 (Section 6c of the Commodity 

Exchange Act).

Any Person ........................................................... 130,000 1,000,000 1,025,000 1,450,040 

1The term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act). 


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I I I 

I I I 
Federal Register / Vol. 89, No. 16 / Wednesday, January 24, 2024 / Rules and Regulations 4545 

1See Rule 301 of Regulation S–T. 

2EDGAR Release 23.4 will be deployed on 

[December 18, 2023]. 

3Cybersecurity Risk Management, Strategy, 

Governance, and Incident Disclosure, Release No. 

33–11216 (July 26, 2023) [88 FR 51896 (Aug. 4, 

2023)]. 

4Modernization of Beneficial Ownership 

Reporting, Release No. 33–11253 (Oct. 10, 2023) [88 

FR 76986 (Nov. 7, 2023)]. 

5 Investment Company Names, Release No. 33– 

11238A (Sep. 20, 2023) [88 FR 70436 (Oct. 11, 

2023)]. 

Issued in Washington, DC, on January 19, 

2024, by the Commission. 

Robert Sidman, 

Deputy Secretary of the Commission. 

Note: The following appendix will not 

appear in the Code of Federal Regulations. 

Appendix to Annual Adjustment of 

Civil Monetary Penalties To Reflect 

Inflation—2024—Commission Voting 

Summary 

On this matter, Chairman Behnam and 

Commissioners Johnson, Goldsmith Romero, 

Mersinger, and Pham voted in the 

affirmative. No Commissioner voted in the 

negative. 

[FR Doc. 2024–01341 Filed 1–23–24; 8:45 am] 

BILLING CODE 6351–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

17 CFR Part 232 

[Release Nos. 33–11259; 34–99193; 39– 

2553; IC–35068] 

Adoption of Updated EDGAR Filer 

Manual 

AGENCY: Securities and Exchange 

Commission. 

ACTION: Final rule. 

SUMMARY: The Securities and Exchange 

Commission (‘‘Commission’’) is 

adopting amendments to Volume II of 

the Electronic Data Gathering, Analysis, 

and Retrieval system Filer Manual 

(‘‘EDGAR Filer Manual’’ or ‘‘Filer 

Manual’’) and related rules and forms. 

EDGAR Release 23.4 will be deployed in 

the EDGAR system on December 18, 

2023. 

DATES: Effective date: January 24, 2024. 

Incorporation by reference: The 

incorporation by reference of the revised 

Filer Manual is approved by the 

Director of the Federal Register as of 

January 24, 2024. 

FOR FURTHER INFORMATION CONTACT: For 

questions regarding the amendments to 

Volume II of the Filer Manual, please 

contact Rosemary Filou, Deputy 

Director and Chief Counsel, Jane 

Patterson, Senior Special Counsel, or 

Lidian Pereira, Senior Special Counsel, 

in the EDGAR Business Office at (202) 

551–3900. For questions regarding new 

Item 1.05 in Forms 8–K, 8–K12B, 8– 

K12G3, 8–K15D5, 8–K/A, 8–K12B/A, 8– 

K12G3/A, and 8–K15D/A, please 

contact Nabeel Cheema, Senior Counsel, 

in the Division of Corporation Finance 

at (202) 551–5512. For questions 

regarding updates to disclosures in 

Schedules 13D and 13G related to 

beneficial ownership or interests in 

security-based swaps, please contact 

Nicholas Panos, Senior Special Counsel, 

or Valian Afshar, Senior Special 

Counsel, in the Division of Corporation 

Finance at (202) 551–3440. For 

questions regarding new tagging 

requirements for Forms N–8B–2 and S– 

6, please contact Heather Fernandez, 

Financial Analyst, in the Division of 

Investment Management at (202) 551– 

6708. For questions concerning 

taxonomies or schemas, please contact 

the Office of Structured Disclosure in 

the Division of Economic and Risk 

Analysis at (202) 551–5494. 

SUPPLEMENTARY INFORMATION: We are 

adopting an updated Filer Manual, 

Volume II: ‘‘EDGAR Filing,’’ Version 68 

(December 2023) and amendments to 17 

CFR 232.301 (‘‘Rule 301’’). The updated 

Filer Manual is incorporated by 

reference into the Code of Federal 

Regulations. 

I. Background 

The Filer Manual contains 

information needed for filers to make 

submissions on EDGAR. Filers must 

comply with the applicable provisions 

of the Filer Manual in order to assure 

the timely acceptance and processing of 

filings made in electronic format.1 Filers 

must consult the Filer Manual in 

conjunction with our rules governing 

mandated electronic filings when 

preparing documents for electronic 

submission. 

II. EDGAR System Changes and 

Associated Modifications to Volume II 

of the Filer Manual 

EDGAR is being updated in EDGAR 

Release 23.4, and corresponding 

amendments to Volume II of the Filer 

Manual are being made to reflect these 

changes, as described below.2

Public Company Cybersecurity Incident 

Disclosure 

On July 26, 2023, the Commission 

adopted new rules to enhance and 

standardize disclosures regarding 

cybersecurity risk management, strategy, 

governance, and incidents by public 

companies that are subject to the 

reporting requirements of the Securities 

Exchange Act of 1934.3 The new rules 

require registrants to disclose material 

cybersecurity incidents on new Item 

1.05 of Forms 8–K, 8–K12B, 8–K12G3, 

8–K15D5, 8–K/A, 8–K12B/A, 8–K12G3/ 

A, and 8–K15D/A, and describe certain 

aspects of the incident’s nature, scope, 

and timing, as well as its material 

impact or reasonably likely material 

impact on the registrant, within four 

business days after a registrant 

determines the cybersecurity incident is 

material. EDGAR will be modified to 

add new Item 1.05 to the relevant forms 

to allow registrants to disclose the 

required information. 

Rule Amendments Modernizing 

Beneficial Ownership Reporting 

On October 10, 2023, the Commission 

adopted amendments to certain rules 

that govern beneficial ownership 

reporting. These rule revisions both 

shorten filing deadlines for initial and 

amended reports and require that all 

information disclosed within the 

reports, excluding exhibits, be filed 

using structured, machine-readable 

language.4 To the extent that a 

beneficial owner wishes to submit an 

amendment to a Schedule 13D on 

EDGAR as a combined filing with a 

Schedule TO, however, the combined 

filing would not be required or allowed 

to be filed using structured, machinereadable language. EDGAR will be 

modified accordingly. 

In addition, EDGAR will be modified 

such that when the amendments 

become effective on February 5, 2024, a 

Schedule 13D, Schedule 13D/A, 

Schedule 13G, and Schedule 13G/A 

filed before 10 p.m. eastern time on a 

day that EDGAR is operating will 

receive a filing date identical to the 

EDGAR received date and will be 

disseminated until 10 p.m. eastern time. 

Investment Company Name 

Clarification 

On September 20, 2023, the 

Commission amended rules under the 

Investment Company Act of 1940 to 

clarify certain broad categories of 

investment company names that are 

likely to mislead investors about an 

investment company’s investments and 

risks.5 To implement this rulemaking, 

EDGAR will be updated to support a 

new taxonomy—FND—with 2023 and 

2022 versions. EDGAR will also be 

updated to accept Inline XBRL 

submissions on Forms N–8B–2 and 

S–6. 

Removal of Certain Defunct and 

Discontinued Forms 

EDGAR will be updated to remove the 

following obsolete forms from the 


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