[Federal Register Volume 87, Number 117 (Friday, June 17, 2022)]
[Rules and Regulations]
[Pages 36407-36409]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-13141]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 1


Fees for Reviews of the Rule Enforcement Programs of Designated 
Contract Markets and Registered Futures Associations

AGENCY: Commodity Futures Trading Commission.

ACTION: Notification of 2021 schedule of fees.

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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

[[Page 36408]]

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 2021 by this document is based upon an average of 
actual program costs incurred during fiscal year (``FY'') 2018, FY 
2019, and FY 2020.

DATES: Each self-regulatory organization is required to remit 
electronically the applicable fee on or before August 16, 2022.

FOR FURTHER INFORMATION CONTACT: Joel Mattingley, Chief Financial 
Officer, Commodity Futures Trading Commission; (202) 418-5310; Three 
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; 
<a href="/cdn-cgi/l/email-protection#52383f3326263b3c353e372b12313426317c353d24"><span class="__cf_email__" data-cfemail="167c7b7762627f78717a736f567570627538717960">[email protected]</span></a>. For information on electronic payments, contact 
Jennifer Fleming; (202) 418-5034; <a href="/cdn-cgi/l/email-protection#7e1418121b131710193e1d180a1d50191108"><span class="__cf_email__" data-cfemail="c1aba7ada4aca8afa681a2a7b5a2efa6aeb7">[email protected]</span></a>.

SUPPLEMENTARY INFORMATION: 

I. Background Information

A. General

    This document 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\
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    \1\ National Futures Association is the only registered futures 
association.
    \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.
    \3\ 58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, app. B
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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): 182 percent for FY 2018, 
174 percent for FY 2019, and 158 percent for FY 2020.

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. 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
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                                                                     Actual total costs                                             Adjusted     2021
                                                            ------------------------------------  3-Year average    3-Year total     volume    Assessed
                                                               FY 2018     FY 2019     FY 2020     actual costs       volume %       costs        fee
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Cantor Futures Exchange, L.P...............................     $56,551  ..........     $22,702           $26,418            0.03    $13,319     $13,319
CBOE Futures Exchange, LLC.................................      16,033     $40,517      23,325            26,625            1.24     17,482      17,482
Chicago Board of Trade.....................................       2,296      22,835      56,041            27,058           33.31    125,158      27,058
Chicago Mercantile Exchange, Inc...........................     235,127     383,995     260,723           293,282           42.97    290,666     290,666
Eris Exchange, LLC.........................................      33,170  ..........  ..........            11,057            0.00      5,540       5,540
ICE Futures U.S., Inc......................................      50,096      73,464     193,300           105,620            6.59     74,885      74,885
Minneapolis Grain Exchange, Inc............................         438      39,525  ..........            13,321            0.05      6,813       6,813
Nasdaq OMX Futures Exchange, Inc...........................     109,413       1,741  ..........            37,051            0.27     19,444      19,444
New York Mercantile Exchange/Commodity Exchange, Inc.......       3,397      45,425      99,311            49,377           15.11     75,328      49,377
Nodal Exchange, LLC........................................      33,162       2,312  ..........            11,825            0.08      6,180       6,180
North American Derivatives Exchange, Inc...................       6,986     135,159       2,598            48,248            0.21     24,844      24,844

[[Page 36409]]

 
OneChicago, LLC Futures Exchange...........................      61,276  ..........  ..........            20,425            0.13     10,648      10,648
                                                            --------------------------------------------------------------------------------------------
    Subtotal...............................................     607,946     744,973     658,001           670,307          100.00    670,307     546,255
                                                            --------------------------------------------------------------------------------------------
National Futures Association...............................     507,673     540,821     567,719           538,738  ..............  .........     538,738
                                                            --------------------------------------------------------------------------------------------
    Total..................................................   1,115,619   1,285,794   1,225,720         1,209,044          100.00    670,307   1,084,993
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Columns may not add due to rounding.

    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 = $27,058.
    b. The alternative computation is: [(.5) ($27,058)] + (.5) 
[(.33307) ($670,307)] = $125,158.
    c. The fee is the lesser of a or b; in this case $27,058.
    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 2018 through 2020 was $538,738. The fee to be paid by the NFA for 
the current fiscal year is $538,738.

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
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                                                  3-Year average   3-Year total      Adjusted     2021  Assessed
                                                    actual costs     volume %      volume costs         fee
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Cantor Futures Exchange, L.P....................         $26,418            0.03         $13,319         $13,319
CBOE Futures Exchange, LLC......................          26,625            1.24          17,482          17,482
Chicago Board of Trade..........................          27,058           33.31         125,158          27,058
Chicago Mercantile Exchange, Inc................         293,282           42.97         290,666         290,666
Eris Exchange, LLC..............................          11,057            0.00           5,540           5,540
ICE Futures U.S., Inc...........................         105,620            6.59          74,885          74,885
Minneapolis Grain Exchange, Inc.................          13,321            0.05           6,813           6,813
Nasdaq OMX Futures Exchange, Inc................          37,051            0.27          19,444          19,444
New York Mercantile Exchange/Commodity Exchange,          11,825            0.08           6,180           6,180
 Inc............................................
Nodal Exchange, LLC.............................          48,248            0.21          24,844          24,844
North American Derivatives Exchange, Inc........          20,425            0.13          10,648          10,648
OneChicago, LLC Futures Exchange................          49,377           15.11          75,328          49,377
                                                 ---------------------------------------------------------------
    Subtotal....................................         670,307         100.00%         670,307         546,255
                                                 ---------------------------------------------------------------
National Futures Association....................         538,738  ..............  ..............         538,738
                                                 ---------------------------------------------------------------
    Total.......................................       1,209,044          100.00         670,307       1,084,993
----------------------------------------------------------------------------------------------------------------
Columns may not add due to rounding.

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. All payments should be made via the government payment 
website https://www.pay.gov/public/form/start/105542374/. Credit card 
payments are only acceptable for amounts less than or equal to $24,999. 
All payments equal to or above $25,000 can be made by electronice funds 
transfer. 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 14th day of June, 2022, by the 
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2022-13141 Filed 6-16-22; 8:45 am]
BILLING CODE 6351-01-P


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