Core Principles & Other Requirements for DCMs

Forms and Documents

Document	Type	Status	Availability
06 Regulation AT AMENDMENT TO COLLECTION 3038-0052 COLLECTION PRA Supporting Statement 2015.11.23 (combined).docx	Supporting Statement A	Uploaded 2016-01-07	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
29100	Part 38 - Designated Contract Markets		Modified
219525	System Safeguards Testing Requirements		New
219146	Regulation Automated Trading		New
209110	Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations		Modified

ICR Details

OMB Control No: 3038-0052	ICR Reference No: 201511-3038-001
Status: Historical Inactive	Previous ICR Reference No: 201310-3038-005
Agency/Subagency: CFTC	Agency Tracking No:
Title: Core Principles & Other Requirements for DCMs
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Comment filed on proposed rule and continue	Conclusion Date: 02/12/2016
	Date Received in OIRA: 12/17/2015
Terms of Clearance: Pursuant to 5 CFR 1320.11(c), OMB files this comment on this information collection request (ICR. The agency shall examine public comment in response to the NPRM and will describe in the supporting statement of its next collection any public comments received regarding the collection as well as why (or why it did not) incorporate the commenter’s recommendation. The next submission to OMB must include the draft final rule.

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	09/30/2017	36 Months From Approved	09/30/2017
Responses	105	0	105
Time Burden (Hours)	8,670	0	8,670
Cost Burden (Dollars)	0	0	0

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Abstract: A. In Regulation Automated Trading, Commission seeks to update Commission rules in response to the evolution from pit trading to electronic trading. In addition to mitigating risks arising from algorithmic trading activity, the proposed rules are intended to increase transparency around DCM electronic trade matching platforms and the use of self-trade prevention tools on DCMs. The proposed Commission Regulations 38.401(a) and 38.401(c) would require DCMs to publicly post information regarding certain aspects of their electronic matching platforms and proposed Commission Regulation 40.26 would permit the Commission or the director of DMO to require certain information from DCMs regarding their market-maker or trading incentive programs. The collection of information is necessary to increase transparency around DCMs electronic trade matching platforms and foster transparency with respect to DCM programs and activities, including market maker and trading incentive programs, that have become more prominent as automated trading becomes the dominant market model. The obligations created by the proposed rules are essential to promote responsible innovation and fair competition among boards of trade, other markets and market participants. B. System Safeguards Testing Requirements: The Commission is seeking to amend control number 3038-0052 to account for regulation 38.1051(n) that is being proposed in the system safeguard and cybersecurity testing Notice of Proposed Rulemaking and would require designated contract markets (DCMs) to provide the Commission with annual trading volume information. The trading volume information is necessary to assist the Commission in its application of the enhanced system safeguard and cybersecurity testing requirements for DCMs whose annual trading volume in a calendar year is five percent or more of the combined annual trading volume of all DCMs regulated by the Commission.

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Authorizing Statute(s): US Code: 7 USC 12a(5), 6C(a)(6), 7(b), 1a(23) Name of Law: CEA
   US Code: 7 USC 6, 6a, 6c, 6d, 6f, 6g, 6i, 6k Name of Law: CEA
   US Code: 7 USC 6l, 6m, 6n Name of Law: CEA
   US Code: 7 USC 7, 7a-2, 7a-s, 7b, 7b-1, 7b-3 Name of Law: CEA
   US Code: 7 USC 8, 9, 12, 15, 21 Name of Law: CEA
   US Code: 7 USC 1a, 2, 5 Name of Law: CEA
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 Sec 124 Stat 1376 (2010) Name of Law: Dodd-Frank Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AD52	Proposed rulemaking	80 FR 78823	12/17/2015

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 4

IC Title	Form No.	Form Name
Regulation Automated Trading
Part 38 - Designated Contract Markets
Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations
System Safeguards Testing Requirements

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Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: A. Regulation Automated Trading: Burden hours will increase because proposed §§ 38.401(a) and 38.401(c) will increase the disclosures DCMs are currently obligated to make under Part 38 regulations. The Commission does not anticipant that proposed § 40.26 will result in additional burden hours. B. System Safeguards Testing Requirements: The amendment to the existing collection will increase the burden for DCMs as a result of the proposed rule that would require the submission of trading volume information to the Commission. The rule is designed to enable the Commission to accurately evaluate whether a particular DCM would be subject to the enhanced system safeguards and cybersecurity testing requirements.

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Annual Cost to Federal Government: $120,000

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 12/17/2015

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