82 FR 45433 - Commission Delegated Authority Provisions for Designated Contract Markets' System Safeguards Requirements

COMMODITY FUTURES TRADING COMMISSION

Federal Register Volume 82, Issue 188 (September 29, 2017)

The Commodity Futures Trading Commission (``CFTC'' or ``Commission'') is adopting final rules to establish a new delegation of authority to Commission staff under the Commission's system safeguards rules to notify each designated contract market (``DCM'') of its percentage of the total annual trading volume among all DCMs regulated by the Commission for purposes of whether it is a covered DCM under the system safeguards rules.

[Federal Register Volume 82, Number 188 (Friday, September 29, 2017)]
[Rules and Regulations]
[Pages 45433-45434]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-20924]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 38

RIN 3038-AE64


Commission Delegated Authority Provisions for Designated Contract 
Markets' System Safeguards Requirements

AGENCY: Commodity Futures Trading Commission.

ACTION: Final rule.

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SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or 
``Commission'') is adopting final rules to establish a new delegation 
of authority to Commission staff under the Commission's system 
safeguards rules to notify each designated contract market (``DCM'') of 
its percentage of the total annual trading volume among all DCMs 
regulated by the Commission for purposes of whether it is a covered DCM 
under the system safeguards rules.

DATES: This rule is effective September 29, 2017.

FOR FURTHER INFORMATION CONTACT: Rachel Berdansky, Deputy Director, 
202-418-5429 or [email protected]; David Steinberg, Associate 
Director, 202-418-5102 or [email protected]; David Taylor, Associate 
Director, 202-418-5488 or [email protected], Division of Market 
Oversight, Commodity Futures Trading Commission, Three Lafayette 
Centre, 1151 21st Street NW., Washington, DC 20581.

SUPPLEMENTARY INFORMATION: 

I. Delegation of Authority--Commission Regulation Sec.  38.1051

    Section 38.1051 of the Commission's regulations, 17 CFR 38.1051, 
governs the system safeguards requirements for DCMs. Pursuant to Sec.  
38.1051(n), DCMs are required to provide the Commission with their 
annual total trading volume by January 31 each calendar year. Section 
38.1051(n)(2) also requires the Commission to provide each DCM with 
their percentage of the combined annual total trading volume among all 
DCMs regulated by the Commission by February 28 each calendar year. 
This annual Commission notification informs each DCM whether it is a 
``covered DCM'' as that term is defined in Sec.  38.1051(h)(1). A 
covered DCM is a DCM whose annual trading volume in a given year is 
five percent or more of the combined annual trading volume of all DCMs 
regulated by the Commission. Covered DCMs are required to comply with 
enhanced requirements with respect to the frequency of cybersecurity 
testing and the use of independent contractors. The Commission is 
amending Sec.  38.1051 by adding paragraph (n)(3) to delegate authority 
to the Director of the Division of Market Oversight and designated 
staff to notify DCMs of their annual trading volume percentage.

II. Effective Date

    As the revisions to the Commission's regulations in this rulemaking 
will not cause any party to undertake efforts to comply with the 
regulations as revised, the Commission has determined to

[[Page 45434]]

make this rulemaking effective upon publication in the Federal 
Register.\1\
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    \1\ 5 U.S.C. 553(d).
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III. Paperwork Reduction Act

    The Commission may not conduct or sponsor, and a respondent is not 
required to respond to, a collection of information contained in a 
rulemaking unless the information collection displays a currently valid 
control number issued by the Office of Management and Budget (``OMB'') 
pursuant to the Paperwork Reduction Act.\2\ This rulemaking contains no 
collection of information for which the Commission is obligated to 
obtain a control number from OMB.
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    \2\ 44 U.S.C. 3501 et seq.
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List of Subjects in 17 CFR Part 38

    Commodity futures, Reporting and recordkeeping requirements.

    For the reasons stated in the preamble, the Commodity Futures 
Trading Commission amends 17 CFR part 38 as follows:

PART 38--DESIGNATED CONTRACT MARKETS

0
1. The authority citation for part 38 continues to read as follows:

    Authority: 7 U.S.C. 1a, 2, 6, 6a, 6c, 6d, 6e, 6f, 6g, 6i, 6j, 
6k, 6l, 6m, 6n, 7, 7a-2, 7b, 7b-1, 7b-3, 8, 9, 15, and 21, as 
amended by the Dodd-Frank Wall Street Reform and Consumer Protection 
Act, Pub. L. 111-203, 124 Stat. 1376.


0
2. In Sec.  38.1051, add paragraph (n)(3) to read as follows:


Sec.  38.1051   General requirements.

* * * * *
    (n) * * *
    (3) Delegation of authority. The Commission hereby delegates, until 
it orders otherwise, to the Director of the Division of Market 
Oversight or such other employee or employees as the Director may 
designate from time to time, the authority to provide each designated 
contract market with its percentage of the total annual trading volume 
of all designated contract markets regulated by the Commission, as set 
forth in paragraph (n)(2) of this section. The Director of the Division 
of Market Oversight may submit to the Commission for its consideration 
any matter that has been delegated pursuant to this section. Nothing in 
this section prohibits the Commission, at its election, from exercising 
the authority delegated in this section.

    Issued in Washington, DC, on September 26, 2017, by the 
Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.

    Note: The following appendix will not appear in the Code of 
Federal Regulations.

Appendix to Commission Delegated Authority Provisions for Designated 
Contract Markets' System Safeguards Requirements--Commission Voting 
Summary

    On this matter, Chairman Giancarlo and Commissioners Bowen, 
Quintenz, and Behnam voted in the affirmative. No Commissioner voted 
in the negative.

[FR Doc. 2017-20924 Filed 9-28-17; 8:45 am]
BILLING CODE 6351-01-P