[Federal Register Volume 83, Number 9 (Friday, January 12, 2018)]
[Notices]
[Pages 1609-1611]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-00469]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities: Notice of Intent To 
Revise Collection Numbers 3038-0052 and 3038-0074, Core Principles and 
Other Requirements for Designated Contract Markets, and Core Principles 
and Other Requirements for Swap Execution Facilities

AGENCY: Commodity Futures Trading Commission.

[[Page 1610]]


ACTION: Notice.

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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') is announcing an opportunity for public comment on the 
proposed revision of two collections 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, as described below, on 
the proposed Information Collection Requests (``ICR'') titled: OMB 
Control Number 3038-0074 and Part 38, Relating to Core Principles and 
Other Requirements for Designated Contract Markets; and OMB Control 
Number 3038-0052 and Part 37, Relating to Core Principles and Other 
Requirements for Swap Execution Facilities. This notice also solicits 
comments on the collection of information mandated by the Commission 
regulation on Contents of Notice of Disciplinary or Access Denial 
Action. The collection of information burden associated with that 
regulation belongs to OMB Control Nos. 3038-0052 and 3038-0074.

DATES: Comments must be submitted on or before March 13, 2018.

ADDRESSES: You may submit comments, identified by OMB Control Nos. 
3038-0052 and 3038-0074 by any of the following methods:
    <bullet> CFTC website: https://comments.cftc.gov. Follow the 
instructions for submitting comments through the Comments Online 
process on the website.
    <bullet> Mail: Christopher Kirkpatrick, Secretary of the 
Commission, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1155 21st Street NW, Washington, DC 20581.
    <bullet> Hand Delivery/Courier: Same as Mail, above.
    <bullet> Federal eRulemaking Portal: http://www.regulations.gov. 
Follow the instructions for submitting comments.
    Please submit your comments using only one method.

FOR FURTHER INFORMATION CONTACT: David Steinberg, Associate Director, 
Division of Market Oversight, Commodity Futures Trading Commission, 
(202) 418-5102; email: <a href="/cdn-cgi/l/email-protection#adc9ded9c8c4c3cfc8dfcaedcecbd9ce83cac2db"><span class="__cf_email__" data-cfemail="89edfafdece0e7ebecfbeec9eaeffdeaa7eee6ff">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: Under the PRA, 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 amendments 
to the 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.
    Title: Core Principles and Other Requirements for Designated 
Contract Markets (OMB Control No. 3038-0052), and Core Principles and 
Other Requirements for Swap Execution Facilities (OMB Control No. 3038-
0074). This is a request for an extension of currently approved 
information collections.
    Abstract: The regulations governing designated contract markets 
(``DCMs'') were adopted pursuant to the requirements of the Commodity 
Futures Modernization Act of 2000 (``CFMA'').\1\ Part 38 of the 
Commission's regulations governs the activities of DCMs. The 
information collected pursuant to part 38 is necessary for the 
Commission to evaluate whether entities operating as, or applying to 
become DCMs, comply with the part 38 requirements including 23 core 
principles.
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    \1\ 7 U.S.C. 1 et seq.
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    In June 2012, the Commission implemented core principles and other 
requirements for DCMs (``DCM Final Rules'').\2\ The Commission stated 
in the DCM Final Rules that 18 DCMs were registered with the 
Commission.\3\ However, since publication of the DCM Final Rules, the 
number of DCMs registered with the Commission has decreased from 18 to 
15. Accordingly, the Commission is revising the below burden statement 
from the DCM Final Rules to account for the decrease in the number of 
registered DCMs.
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    \2\ 77 FR 36612 (June 19, 2012).
    \3\ Id. at 36663.
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    Title VII of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act (``Dodd-Frank Act'') added new section 5h to the 
Commodity Exchange Act (``CEA'') to impose requirements concerning the 
registration and operation of swap execution facilities (``SEFs''), 
which the Commission has incorporated in part 37 of its regulations. 
These information collections are needed for the Commission to ensure 
that SEFs comply with these requirements. Among other requirements, 
part 37 of the Commission's regulations imposes SEF registration 
requirements for a trading platform or system, obligates SEFs to 
provide transaction confirmations to swap counterparties, and requires 
SEFs to comply with 15 core principles.
    In September 2016, the Commission published a 30-Day Notice of 
Intent to Renew Collection 3038-0074 (30-Day Renewal Notice) and stated 
that 23 SEFs were registered with the Commission.\4\ However, since 
publication of the 30-Day Renewal Notice, the Commission has granted 
permanent registration to two additional SEFs, for a total of 25 
registered SEFs. Therefore, the Commission is revising the below burden 
statement from the 30-Day Renewal Notice to account for the increase in 
the number of registered SEFs.
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    \4\ 81 FR 65630 (Sept. 23, 2016).
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    In a separate document published elsewhere in this issue of the 
Federal Register, the Commission adopted regulation 9.11(b)(3)(ii) 
requiring a DCM or SEF (collectively, ``exchange'') to include two 
additional elements in the disciplinary or access denial notice action 
provided to the National Futures Association. First, an exchange must 
include the type of product (as applicable) involved in the adverse 
action.\5\ Requiring an exchange to provide this information in the 
disciplinary or access denial notice will provide the Commission, 
market participants, the public, and other exchanges with greater 
transparency concerning where market abuses originate and whether the 
abuses are concentrated among certain product types. Second, an 
exchange must indicate in its notice of disciplinary or access denial 
actions whether the violation underlying the notice resulted in 
financial harm to any customers. This requirement codifies the 
clarification contained in an advisory previously issued by the 
Commission (``Part 9 Advisory'').\6\ The Commission believes

[[Page 1611]]

that the inclusion of customer harm is essential because it cannot 
effectively perform its regulatory and oversight functions without 
knowledge of those instances in which brokers violate their fiduciary 
duty to customers by taking advantage of customer orders and engaging 
in fraudulent activity. The collections of information are mandatory.
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    \5\ For example, a product trading on a designated contract 
market might be specified as a July 2016 Eurodollar future; while a 
product trading on a swap execution facility may be a CDX North 
American High Yield Series 26 5 year.
    \6\ The Part 9 Advisory permitted an exchange to file 
disciplinary or access denial notices with the Commission or the 
National Futures Association. 64 FR 39915 (July 23, 1999).
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    With respect to the collection of information, the CFTC invites 
comments on:
    <bullet> 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;
    <bullet> 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;
    <bullet> Ways to enhance the quality, usefulness, and clarity of 
the information to be collected; and
    <bullet> 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.
    All comments must be submitted in English, or if not, accompanied 
by an English translation. Comments will be posted as received to 
http://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.\7\
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    \7\ 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 http://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 ICR 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 believes that the additional 
burden for an exchange to add the two additional elements in the 
contents of the disciplinary or access denial notice is de minimis.\8\ 
Accordingly, the Commission is maintaining its current estimate of the 
burden for both collections as result of these reporting requirements. 
However, the Commission is amending its estimates for the collections 
to account for the change in the number of DCMs and SEFs currently 
registered with the Commission. The current respondent burden for these 
collections are estimated to be as follows:
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    \8\ The Commission stated in the Notice of Proposed Rulemaking 
that the burden associated with Commission regulation 9.11(b)(3)(ii) 
requiring an exchange to specify the product involved in the 
disciplinary or access denial action would be de minimis. 82 FR 7745 
(Jan. 23, 2017). The Commission did not receive any comments 
regarding this determination. The Commission estimates that it will 
take an exchange just a few seconds to add the product involved in 
the adverse action and whether the violation underlying the notice 
resulted in financial harm to any customers.
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    <bullet> OMB Control No. 3038-0052 (Core Principles and Other 
Requirements for Designated Contract Markets).
    Number of Respondents: 15.
    Estimated Annual Burden Hours per Respondent: 490.5.
    Estimated Total Burden Hours on Respondents: 7,357.5.
    Frequency of Collection: As applicable.
    <bullet> OMB Control No. 3038-0074 (Core Principles and Other 
Requirements for Swap Execution Facilities).
    Number of Respondents: 25.
    Estimated Annual Burden Hours per Respondent: 1,000.
    Estimated Total Burden Hours on Respondents: 25,000.
    Frequency of Collection: As applicable.
    The regulations require no new startup or operations and 
maintenance costs.

    (Authority 44 U.S.C. 3501 et seq.)

    Dated: January 9, 2018.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2018-00469 Filed 1-11-18; 8:45 am]
BILLING CODE 6351-01-P


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