83 FR 29547 - Agency Information Collection Activities: Notice of Intent To Renew Collection 3038-0021, Regulations Governing Bankruptcies of Commodity Brokers
COMMODITY FUTURES TRADING COMMISSION Federal Register Volume 83, Issue 122 (June 25, 2018)
Federal Register Volume 83, Issue 122 (June 25, 2018)
| Page Range | 29547-29549 | |
| FR Document | 2018-13574 |
[Federal Register Volume 83, Number 122 (Monday, June 25, 2018)] [Notices] [Pages 29547-29549] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-13574] ----------------------------------------------------------------------- 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 [[Page 29548]] Commission) is announcing an opportunity for public comment on the proposed extension of the collection 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, and to allow 60 days for public comment. This notice solicits comments on the collection of information provided for by the Commission's regulations governing bankruptcies of commodity brokers. DATES: Comments must be submitted on or before August 24, 2018. ADDRESSES: You may submit comments, identified by OMB Control No. 3038- 0021, by any of the following methods:CFTC Comments Portal: https://comments.cftc.gov. Select the ``Submit Comments'' link for this matter and follow the instructions on the Public Comment Form. Mail: Send to Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. Hand Delivery/Courier: Follow the same instructions as for Mail, above. Please submit your comments using only one of these methods. To avoid possible delays with mail or in-person deliveries, submissions through the CFTC Comments Portal are encouraged. All comments must be submitted in English or, if not, accompanied by an English translation. Comments will be posted as received to https://comments.cftc.gov. FOR FURTHER INFORMATION CONTACT: Jocelyn Partridge, Special Counsel, Division of Clearing and Risk, Commodity Futures Trading Commission, (202) 418-5926; email: [email protected]. 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. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid OMB control number. 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 before submitting the collection to OMB for approval. To comply with this requirement, the CFTC is publishing notice of the proposed extension of the collection of information listed below. Title: Regulations Governing Bankruptcies of Commodity Brokers (OMB Control No. 3038-0021). This is a request for an extension of a currently approved information collection.\1\ --------------------------------------------------------------------------- \1\ There are two information collections now associated with OMB Control No. 3038-0021. The first includes the reporting, recordkeeping, and third party disclosure requirements applicable to a single respondent in a commodity broker liquidation (e.g., a single commodity broker or a single trustee) within the relevant time period provided for in Commission regulations 190.02(a)(1), 190.02(a)(2), 190.02(b)(1), 190.02(b)(2), 190.02(b)(4), 190.02(c), 190.03(a)(1), 190.03(a)(2), 190.04(b) and 190.06(b). The second information collection includes third party disclosure requirements that are applicable on a regular basis to multiple respondents (i.e., multiple futures commission merchants) provided for in Commission regulations 190.06(d) and 190.10(c). --------------------------------------------------------------------------- Abstract: This collection of information involves the reporting, recordkeeping, and third party disclosure requirements set forth in the CFTC's bankruptcy regulations for commodity broker liquidations, 17 CFR part 190.\2\ These regulations apply to commodity broker liquidations under Chapter 7, Subchapter IV of the Bankruptcy Code.\3\ --------------------------------------------------------------------------- \2\ These include the requirements contained in Commission regulations 190.02(a)(1), 190.02(a)(2), 190.02(b)(1), 190.02(b)(2), 190.02(b)(4), 190.02(c), 190.03(a)(1), 190.03(a)(2), 190.04(b), and 190.06(b). \3\ 11 U.S.C. 761 et seq. --------------------------------------------------------------------------- The reporting requirements include, for example, notices to the Commission regarding the filing of petitions for bankruptcy and notices to the Commission regarding the intention to transfer open commodity contracts in a commodity broker liquidation. The recordkeeping requirements include, for example, the statements of customer accounts that a trustee appointed for the purposes of a commodity broker liquidation (Trustee) must generate and adjust as set forth in the regulations. The third party disclosure requirements include, for example, the disclosure statement that a commodity broker must provide to its customers containing information regarding the manner in which customer property is treated under part 190 of the Commission's regulations in the event of a bankruptcy and, in the event of a commodity broker liquidation, certain notices that a Trustee must provide to customers and to the persons to whom commodity contracts and specifically identifiable customer property have been or will be transferred. The information collection requirements are necessary, and will be used, to facilitate the effective, efficient, and fair conduct of liquidation proceedings for commodity brokers and to protect the interests of customers in these proceedings both directly and by facilitating the participation of the CFTC in such proceedings. With respect to the collections of information, the CFTC invites comments on: 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; 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; Ways to enhance the quality, usefulness, and clarity of the information to be collected; and Ways to minimize the burden of the 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. 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 (FOIA), 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.\4\ 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 https://comments.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 information collection requirements 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 FOIA. --------------------------------------------------------------------------- \4\ 17 CFR 145.9. --------------------------------------------------------------------------- Burden Statement: The Commission notes that commodity broker liquidations occur at unpredictable and irregular intervals when particular commodity brokers become insolvent. While a commodity broker liquidation has not occurred in the past three years, the Commission took the conservative approach of maintaining the assumption [[Page 29549]] contained in the previous renewal of this information collection that, on average, a commodity broker liquidation would occur every three years. The Commission generally has retained the burden hour estimates set forth in the previous information collection as there have been no interim experiences nor are there currently apparent circumstances that would warrant altering those estimates.\5\ The Commission further notes, however, that the information collection burden will vary in particular commodity broker liquidations depending on the size of the commodity broker, the extent to which accounts are able to be quickly transferred, and other factors specific to the circumstances of the liquidation. --------------------------------------------------------------------------- \5\ The Commission has retained the burden hour estimates for each of the applicable regulations except that the Commission no longer assigns burden hours to the discretionary notice that a Trustee may provide to customers in an involuntary commodity broker liquidation pursuant to Commission regulation 190.02(b)(3). There have been no involuntary commodity broker liquidations and none are anticipated. Accordingly, continuing to assign burden hours to this voluntary requirement would inappropriately inflate the burden hours of this information collection. --------------------------------------------------------------------------- The respondent burden for this information collection is estimated to be as follows: \6\ --------------------------------------------------------------------------- \6\ Because a commodity broker liquidation is estimated to occur only once every three years, the previous information collection expressed the burden of the reporting, recordkeeping, and third party disclosure requirements in terms of the burden applicable to ``.33'' respondents in many cases. For clarity, this notice expresses such burdens in terms of those that would be imposed on one respondent during the three year period. While the applicable burden is expressed in a different way, as noted above, the burden hours generally remain unchanged. --------------------------------------------------------------------------- Reporting: \7\ --------------------------------------------------------------------------- \7\ The reporting requirements are contained in Commission regulations 190.02(a)(1), 190.02(a)(2), and 190.06(b). --------------------------------------------------------------------------- Estimated Number of Respondents: 1. Estimated Annual Number of Responses per Respondent: 1.33. Estimated Total Annual Number of Responses: 1.33. Estimated Annual Number of Burden Hours per Respondent: 1.33. Estimated Total Annual Burden Hours: 1.33. Type of Respondents: Commodity brokers, Trustees, and self- regulatory organizations. Frequency of Collection: On occasion. Recordkeeping: \8\ --------------------------------------------------------------------------- \8\ The recordkeeping requirements are contained in Commission regulations 190.03(a)(1), 190.03(a)(2), and 190.04(b). --------------------------------------------------------------------------- Estimated Number of Respondents: 1. Estimated Annual Number of Responses per Respondent: 26,666.67. Estimated Total Annual Number of Responses: 26,666.67. Estimated Annual Number of Burden Hours per Respondent: 333.33. Estimated Total Annual Burden Hours: 333.33. Type of Respondents: Trustees. Frequency of Collection: Daily and on occasion. Third Party Disclosures Applicable to a Single Respondent: \9\ --------------------------------------------------------------------------- \9\ These third party disclosure requirements are contained in Commission regulations 190.02(b)(1), 190.02(b)(2), 190.02(b)(4), and 190.02(c). --------------------------------------------------------------------------- Estimated Number of Respondents: 1. Estimated Annual Number of Responses per Respondent: 6,671.32. Estimated Total Annual Number of Responses: 6,671.32. Estimated Annual Number of Burden Hours per Respondent: 1,034.63. Estimated Total Annual Burden Hours: 1,034.63. Type of Respondents: Trustees. Frequency of Collection: On occasion. Third Party Disclosures Applicable to a Multiple Respondents: \10\ --------------------------------------------------------------------------- \10\ See fn. 1. The Commission is setting forth a new information collection under OMB Control No. 3038-0021 to separately account for third party disclosure requirements provided for in Commission regulations 190.06(d) and 190.06(c) that are applicable on a regular basis to multiple respondents (i.e., multiple futures commission merchants). --------------------------------------------------------------------------- Estimated Number of Respondents: 125. Estimated Annual Number of Responses per Respondent: 2,000. Estimated Total Annual Number of Responses: 250,000. Estimated Annual Number of Burden Hours per Respondent: 100. Estimated Total Annual Burden Hours: 12,500. Type of Respondents: Futures commission merchants. Frequency of Collection: On occasion. There are no new capital or start-up or operations costs associated with this information collection, nor are there any maintenance costs associated with this information collection. Authority: 44 U.S.C. 3501 et seq. Dated: June 20, 2018. Christopher Kirkpatrick, Secretary of the Commission. [FR Doc. 2018-13574 Filed 6-22-18; 8:45 am] BILLING CODE 6351-01-P
![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
3-Year Adjusted 2016 2017
average
average volume Actual Assessed
volume
FY 2014 FY 2015 FY 2016 actual costs costs fee 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 c. The fee is the lesser of a or b; in The fee to be paid by the NFA for the
calculated for one exchange, the this case $34,058. current fiscal year is $325,281.
Chicago Board of Trade, is set forth As noted above, the alternative
calculation based on contracts traded is II. Schedule of Fees
here:
not applicable to NFA because it is not
a. Actual three-year average costs = Fees for the Commission’s review of
a DCM and has no contracts traded. The
$34,058. the rule enforcement programs at the
Commission’s average annual cost for
b. The alternative computation is: (.5) conducting oversight review of the NFA registered futures associations and
($34,058) + (.5) (.2961) ($1,036,981) = rule enforcement program during fiscal DCMs regulated by the Commission are
$170,554. years 2014 through 2016 was $325,281. as shown in the following table:
TABLE 2—SCHEDULE OF FEES
3-Year 2017 Fee:
3-Year Adjusted
average lesser of
average volume
volume actual or
actual costs costs
(%) 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 States as miscellaneous receipts. See 7 COMMODITY FUTURES TRADING
The Debt Collection Improvement Act U.S.C. 16a. COMMISSION
(‘‘DCIA’’) requires deposits of fees owed Issued in Washington, DC, on June 19,
to the government by electronic transfer Agency Information Collection
2018, by the Commission.
of funds. See 31 U.S.C. 3720. For Activities: Notice of Intent To Renew
Christopher Kirkpatrick, Collection 3038–0021, Regulations
information about electronic payments,
Secretary of the Commission. Governing Bankruptcies of Commodity
please contact Jennifer Fleming at (202)
amozie on DSK3GDR082PROD with NOTICES1
418–5034 or jfleming@cftc.gov, or see [FR Doc. 2018–13511 Filed 6–22–18; 8:45 am] Brokers
the CFTC website at www.cftc.gov, BILLING CODE 6351–01–P
AGENCY: Commodity Futures Trading
specifically, www.cftc.gov/cftc/ Commission.
cftcelectronicpayments.htm. ACTION: Notice.
Fees collected from each self-
regulatory organization shall be SUMMARY: The Commodity Futures
deposited in the Treasury of the United Trading Commission (CFTC or
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![Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices 29549
contained in the previous renewal of Estimated Total Annual Burden announce that it is renewing the charter
this information collection that, on Hours: 333.33. for the Defense Business Board (‘‘the
average, a commodity broker liquidation Type of Respondents: Trustees. Board’’).
would occur every three years. The Frequency of Collection: Daily and on FOR FURTHER INFORMATION CONTACT: Jim
Commission generally has retained the occasion. Freeman, Advisory Committee
burden hour estimates set forth in the Third Party Disclosures Applicable to Management Officer for the Department
previous information collection as there a Single Respondent: 9 of Defense, 703–692–5952.
have been no interim experiences nor Estimated Number of Respondents: 1.
Estimated Annual Number of SUPPLEMENTARY INFORMATION: This
are there currently apparent
Responses per Respondent: 6,671.32. committee’s charter is being renewed in
circumstances that would warrant
Estimated Total Annual Number of accordance with the Federal Advisory
altering those estimates.5 The
Responses: 6,671.32. Committee Act (FACA) of 1972 (5
Commission further notes, however,
Estimated Annual Number of Burden U.S.C., Appendix, as amended) and 41
that the information collection burden
Hours per Respondent: 1,034.63. CFR 102–3.50(d). The charter and
will vary in particular commodity
Estimated Total Annual Burden contact information for the Designated
broker liquidations depending on the
Hours: 1,034.63. Federal Officer (DFO) can be obtained at
size of the commodity broker, the extent http://www.facadatabase.gov/. The
to which accounts are able to be quickly Type of Respondents: Trustees.
Frequency of Collection: On occasion. Board provides independent advice on
transferred, and other factors specific to matters on DoD management, business
the circumstances of the liquidation. Third Party Disclosures Applicable to
a Multiple Respondents: 10 processes, and governance from a
The respondent burden for this
Estimated Number of Respondents: private sector perspective. The Board
information collection is estimated to be
125. shall be composed of no more than 25
as follows: 6
Estimated Annual Number of members who must possess the
Reporting: 7
Estimated Number of Respondents: 1. Responses per Respondent: 2,000. following: (a) A proven track record of
Estimated Annual Number of Estimated Total Annual Number of sound judgment and business acumen
Responses per Respondent: 1.33. Responses: 250,000. in leading or governing large, complex
Estimated Total Annual Number of Estimated Annual Number of Burden private sector corporations or
Responses: 1.33. Hours per Respondent: 100. organizations and (b) a wealth of top-
Estimated Annual Number of Burden Estimated Total Annual Burden level, global business experience in the
Hours per Respondent: 1.33. Hours: 12,500. areas of executive management,
Estimated Total Annual Burden Type of Respondents: Futures corporate governance, audit and
Hours: 1.33. commission merchants. finance, human resources, economics,
Type of Respondents: Commodity Frequency of Collection: On occasion. technology, or healthcare. Members of
brokers, Trustees, and self-regulatory There are no new capital or start-up the Board who are not full-time or
organizations. or operations costs associated with this permanent part-time Federal officers or
Frequency of Collection: On occasion. information collection, nor are there any employees will be appointed as experts
Recordkeeping: 8 maintenance costs associated with this or consultants pursuant to 5 U.S.C. 3109
Estimated Number of Respondents: 1. information collection. to serve as special government
Estimated Annual Number of Authority: 44 U.S.C. 3501 et seq. employee members. Members of the
Responses per Respondent: 26,666.67. Board who are full-time or permanent
Estimated Total Annual Number of Dated: June 20, 2018.
part-time Federal officers or employees
Responses: 26,666.67. Christopher Kirkpatrick,
will be appointed pursuant to 41 CFR
Estimated Annual Number of Burden Secretary of the Commission. 102–3.130(a) to serve as regular
Hours per Respondent: 333.33. [FR Doc. 2018–13574 Filed 6–22–18; 8:45 am] government employee members. Each
5 The Commission has retained the burden hour
BILLING CODE 6351–01–P Board member is appointed to provide
estimates for each of the applicable regulations advice on the basis of their best
except that the Commission no longer assigns judgment without representing any
burden hours to the discretionary notice that a DEPARTMENT OF DEFENSE particular point of view and in a manner
Trustee may provide to customers in an involuntary that is free from conflict of interest.
commodity broker liquidation pursuant to Office of the Secretary
Commission regulation 190.02(b)(3). There have Except for reimbursement of official
been no involuntary commodity broker liquidations Board-related travel and per diem,
Charter Renewal of Department of
and none are anticipated. Accordingly, continuing Board members serve without
to assign burden hours to this voluntary Defense Federal Advisory Committees
compensation. The DoD, as necessary
requirement would inappropriately inflate the
burden hours of this information collection. AGENCY: Department of Defense. and consistent with the Board’s mission
6 Because a commodity broker liquidation is
ACTION:Renewal of federal advisory and DoD policies and procedures, may
estimated to occur only once every three years, the committee. establish subcommittees, task forces, or
previous information collection expressed the working groups to support the Board,
burden of the reporting, recordkeeping, and third
party disclosure requirements in terms of the
SUMMARY: The Department of Defense and all subcommittees must operate
burden applicable to ‘‘.33’’ respondents in many (DoD) is publishing this notice to under the provisions of FACA and the
cases. For clarity, this notice expresses such Government in the Sunshine Act.
burdens in terms of those that would be imposed 9 These third party disclosure requirements are
Subcommittees will not work
on one respondent during the three year period. contained in Commission regulations 190.02(b)(1), independently of the Board and must
amozie on DSK3GDR082PROD with NOTICES1
While the applicable burden is expressed in a 190.02(b)(2), 190.02(b)(4), and 190.02(c).
different way, as noted above, the burden hours 10 See fn. 1. The Commission is setting forth a report all recommendations and advice
generally remain unchanged. new information collection under OMB Control No. solely to the Board for full deliberation
7 The reporting requirements are contained in
3038–0021 to separately account for third party and discussion. Subcommittees, task
Commission regulations 190.02(a)(1), 190.02(a)(2), disclosure requirements provided for in forces, or working groups have no
and 190.06(b). Commission regulations 190.06(d) and 190.06(c)
8 The recordkeeping requirements are contained that are applicable on a regular basis to multiple
authority to make decisions and
in Commission regulations 190.03(a)(1), respondents (i.e., multiple futures commission recommendations, verbally or in
190.03(a)(2), and 190.04(b). merchants). writing, on behalf of the Board. No
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Document Created: 2018-06-23 02:28:57
Document Modified: 2018-06-23 02:28:57
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Notices | |
| Action | Notice. | |
| Dates | Comments must be submitted on or before August 24, 2018. | |
| Contact | Jocelyn Partridge, Special Counsel, Division of Clearing and Risk, Commodity Futures Trading Commission, (202) 418-5926; email: [email protected] | |
| FR Citation | 83 FR 29547 |
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