30-Day Federal Register Notice

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Federal Register / Vol. 84, No. 123 / Wednesday, June 26, 2019 / Notices

the information collection, including
suggestions for reducing the burden,
may be submitted directly to the Office
of Information and Regulatory Affairs
(OIRA) in OMB within 30 days of this
notice’s publication by either of the
following methods. Please identify the
comments by ‘‘Regulations Establishing
and Governing the Duties of Swap
Dealers and Major Swap Participants,’’
OMB Control No. 3038–0084.
• By email addressed to:
[email protected]; or
• By mail addressed to: Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Attention: Desk Officer for the
Commodity Futures Trading
Commission, 725 17th Street NW,
Washington, DC 20503.
A copy of all comments submitted to
OIRA should be sent to the Commodity
Futures Trading Commission (the
Commission) by one of the following
methods. The copies should refer to
‘‘OMB Control No. 3038–0084.’’
• Through the Commission’s website
at https://comments.cftc.gov. Please
follow the instructions for submitting
comments through the website;
• By mail addressed to: Christopher
Kirkpatrick, Secretary of the
Commission, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street NW,
Washington, DC 20581; or
• By Hand Delivery/Courier to the
same address as specified for mail.
Please submit your comments to the
Commission using only one method. A
copy of the supporting statement for the
collection of information discussed
herein may be obtained by visiting
http://RegInfo.gov.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments will be
posted as received to https://
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 (FOIA), a petition for
confidential treatment of the exempt
information may be submitted according
to the procedures established in § 145.9
of the Commission’s regulations.1 The
Commission reserves the right, but shall
have no obligation, to review, prescreen, filter, redact, refuse or remove
any or all of your submission from
https://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
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contain comments on the merits of the
ICR will be retained in the public
comment file and will be considered as
required under applicable laws, and
may be accessible under the FOIA.
FOR FURTHER INFORMATION CONTACT:
Gregory Scopino, Special Counsel,
Division of Swap Dealer and
Intermediary Oversight, Commodity
Futures Trading Commission, (202)
418–5175; email: [email protected].
SUPPLEMENTARY INFORMATION: This
notice solicits comments on the
collections of information mandated by
Commission regulations 23.600 (Risk
Management Program), 23.601
(Monitoring of Position Limits), 23.602
(Diligent Supervision), 23.603 (Business
Continuity and Disaster Recovery)
23.606 (General Information:
Availability for Disclosure and
Inspection), and 23.607 (Antitrust
Considerations).
Title: Regulations Establishing and
Governing the Duties of Swap Dealers
and Major Swap Participants (OMB
Control No. 3038–0084). This is a
request for an extension and revision of
a currently approved information
collection.
Abstract: On April 3, 2012 the
Commission adopted Commission
regulations 23.600 (Risk Management
Program), 23.601 (Monitoring of
Position Limits), 23.602 (Diligent
Supervision), 23.603 (Business
Continuity and Disaster Recovery),
23.606 (General Information:
Availability for Disclosure and
Inspection), and 23.607 (Antitrust
Considerations) 2 pursuant to section
4s(j) 3 of the Commodity Exchange Act
(CEA). These regulations adopted by the
Commission require, among other
things, swap dealers (SD) 4 and major
swap participants (MSP) 5 to develop a
risk management program (including a
plan for business continuity and
disaster recovery and policies and
procedures designed to ensure
compliance with applicable position
limits). The Commission believes that
the information collection obligations
imposed by these regulations are
essential to ensuring that swap dealers
and major swap participants maintain
adequate and effective risk management
programs and policies and procedures
to ensure compliance with position
limits. On April 10, 2019, the
2 17 CFR 23.600, 23.601, 23.602, 23.603, 23.606,
and 23.607.
3 7 U.S.C. 6s(j).
4 For the definition of SD, see section 1a(49) of
the CEA and Commission regulation 1.3. 7 U.S.C.
1a(49) and 17 CFR 1.3.
5 For the definitions of MSP, see section 1a(33) of
the CEA and Commission regulation 1.3. 7 U.S.C.
1a(33) and 17 CFR 1.3.

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Commission published in the Federal
Register notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension, 84
FR 14350, (‘‘60-Day Notice’’). The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection to reflect the current
number of respondents and estimated
burden hours. The respondent burden
for this collection is estimated to be as
follows:
Number of Registrants: 103.
Estimated Average Burden Hours per
Registrant: 1,148.5.
Estimated Aggregate Burden Hours:
118,295.5.
Frequency of Recordkeeping: As
applicable.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: June 21, 2019.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2019–13620 Filed 6–25–19; 8:45 am]
BILLING CODE 6351–01–P

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities Under OMB Review
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

In compliance with the
Paperwork Reduction Act of 1995
(PRA), this notice announces that the
Information Collection Request (ICR)
abstracted below has been forwarded to
the Office of Management and Budget
(OMB) for review and comment. The
ICR describes the nature of the
information collection and its expected
costs and burden.
DATES: Comments must be submitted on
or before July 26, 2019.
ADDRESSES: Comments regarding the
burden estimate or any other aspect of
the information collection, including
suggestions for reducing the burden,
may be submitted directly to the Office
of Information and Regulatory Affairs
(OIRA) in OMB within 30 days of this
notice’s publication by either of the
following methods. Please identify the
comments by ‘‘OMB Control No. 3038–
0024.’’
• By email addressed to:
[email protected]; or
SUMMARY:

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jbell on DSK3GLQ082PROD with NOTICES

Federal Register / Vol. 84, No. 123 / Wednesday, June 26, 2019 / Notices
• By mail addressed to: Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Attention: Desk Officer for the
Commodity Futures Trading
Commission, 725 17th Street NW,
Washington, DC 20503.
A copy of all comments submitted to
OIRA should be sent to the Commodity
Futures Trading Commission (the
Commission) by one of the following
methods. The copies should refer to
‘‘OMB Control No. 3038–0024.’’
• Through the Commission’s website
at https://comments.cftc.gov. Please
follow the instructions for submitting
comments through the website;
• By mail addressed to: Christopher
Kirkpatrick, Secretary of the
Commission, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street NW,
Washington, DC 20581; or
• By Hand Delivery/Courier to the
same address as specified for mail.
Please submit your comments to the
Commission using only one method. A
copy of the supporting statement for the
collection of information discussed
herein may be obtained by visiting
http://RegInfo.gov.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments will be
posted as received to https://
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 (FOIA), a petition for
confidential treatment of the exempt
information may be submitted according
to the procedures established in § 145.9
of the Commission’s regulations.1 The
Commission reserves the right, but shall
have no obligation, to review, prescreen, filter, redact, refuse or remove
any or all of your submission from
https://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 applicable laws, and
may be accessible under the FOIA.
FOR FURTHER INFORMATION CONTACT:
Joshua Beale, Associate Director,
Division of Swap Dealer and
Intermediary Oversight, Commodity
Futures Trading Commission, (202)
418–5446; email: [email protected].
SUPPLEMENTARY INFORMATION:
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Title: Regulations and Forms
Pertaining to the Financial Integrity of
the Marketplace (OMB Control No.
3038–0024). This is a request for
extension of a currently approved
information collection.
Abstract: The Commission is the
independent federal regulatory agency
charged with providing various forms of
customer protection so that users of the
commodity markets can be assured of
the financial integrity of the markets
and the intermediaries that they employ
in their trading activities. Part 1 of the
Commission’s regulations requires,
among other things, that commodity
brokers—known as futures commission
merchants (FCM) or introducing brokers
(IB) comply with minimum capital and
segregation requirements. In order to
monitor compliance with these financial
standards, the Commission has required
FCMs and IBs to file financial reports
with the Commission and with the
designated self-regulatory organization
(DSRO) of which they are members as
well as to report to the Commission
should capital levels drop below
prescribed minimums.
In 2008, the U.S. Congress passed the
Food, Conservation, and Energy Act of
2008, Public Law 110–246, 122 Stat.
1651, 2189–2204 (2008), also known as
the Farm Bill. The Farm Bill provided
the Commission with new authority
with regard to the regulation of offexchange retail forex transactions.
Among other things, it directed the
Commission to draft rules effectuating
registration provisions for a new
category of registrant—the retail foreign
exchange dealer, or RFED. Under the
terms of the legislation, RFEDs are
subject to the same capital requirements
as FCMs that are engaged in retail forex
transactions, and, therefore, subject to
the same reporting requirements.
Accordingly, this collection was
amended to reflect the financial
reporting requirements of the new
category of registrant, RFEDs.
In 2010, the U.S. Congress passed the
Wall Street Reform and Consumer
Protection Act (the ‘‘Dodd-Frank Act’’),
Public Law 111–203, 124 Stat. 1376
(2010), giving the Commission the
authority to regulate certain swap
markets and participants in those
markets. Section 731 of the Dodd-Frank
Act, amended the Commodity Exchange
Act (CEA), 7 U.S.C. 1 et seq., to add, as
section 4s(e) thereof, provisions
concerning the setting of initial and
variation margin requirements for swap
dealers (SD) and major swap
participants (MSP). In 2016, the
Commission finalized the Margin
Requirements for Uncleared Swaps for
Swap Dealers and Major Swap

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30095

Participants rule to implement those
requirements. Specifically, Regulation
23.154(b) require SDs and MSPs that do
not have a prudential regulator (CSE)
that are using a model to compute initial
margin requirements to submit the
model for review and approval by the
Commission or a registered futures
association. CSEs must also notify the
Commission upon making certain
changes to the model. The information
required for the prior written approval
of the margin model or for certain
changes to such model, is needed to
demonstrate that the model satisfies all
of the requirements of Regulation
23.154(b).
Finally, in 2013, the Commission
finalized rules in an effort to prevent
unauthorized usage of customer funds
by FCMs and RFEDs. The final rules
include modifications to the reporting
requirements required by the
Commission which resulted in changes
to the financial statements filed by
FCMs and RFEDs and made some of the
recordkeeping requirements already
contained in this OMB Collection
Number 3038–0024 into reporting
requirements. These rules added
additional recordkeeping requirements
by FCMs to assure the segregation of
customer funds. This collection, OMB
Control No. 3038–0024, is needed for
the Commission to continue its financial
monitoring of its registrants. The burden
hours are being revised to reflect the
current number of registrants and
updated to reflect more accurate
numbers regarding the number of
financial reports filed, based on current
historical data.
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. On April 9, 2019, the
Commission published in the Federal
Register notice of the proposed
extension of this information collection
and provided 60 days for public
comment on the proposed extension, 84
FR 14099 (‘‘60-Day Notice’’). The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection for approximately 66
FCMs and RFEDs, 50 CSEs and 1,178
IBs. The respondent burden for this
collection is estimated to be as follows:
Respondents/Affected Entities: FCMs,
RFEDs, IBs, SDs, and MSPs that do not
have a Prudential Regulator.
Estimated Number of Respondents:
1,294.
Estimated Average Burden Hours per
Respondent: 62.

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Federal Register / Vol. 84, No. 123 / Wednesday, June 26, 2019 / Notices

Estimated Total Annual Burden
Hours: 80,837.
Frequency of Collection: Various. For
example, FCMs have both daily and
monthly financial reporting obligations,
annual certified financial and
compliance report obligations, and
periodic notice requirements.
There are no capital costs or operating
and maintenance costs associated with
this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: June 21, 2019.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2019–13614 Filed 6–25–19; 8:45 am]
BILLING CODE 6351–01–P

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities Under OMB Review
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

In compliance with the
Paperwork Reduction Act of 1995
(PRA), this notice announces that the
Information Collection Request (ICR)
abstracted below has been forwarded to
the Office of Management and Budget
(OMB) for review and comment. The
ICR describes the nature of the
information collection and its expected
costs and burden.
DATES: Comments must be submitted on
or before July 26, 2019.
ADDRESSES: Comments regarding the
burden estimate or any other aspect of
the information collection, including
suggestions for reducing the burden,
may be submitted directly to the Office
of Information and Regulatory Affairs
(OIRA) in OMB within 30 days of this
notice’s publication by either of the
following methods. Please identify the
comments by ‘‘OMB Control No. 3038–
0052.’’
• By email addressed to:
[email protected]; or
• By mail addressed to: Office of
Information and Regulatory Affairs,
Office of Management and Budget,
Attention: Desk Officer for the
Commodity Futures Trading
Commission, 725 17th Street NW,
Washington, DC 20503.
A copy of all comments submitted to
OIRA should be sent to the Commodity
Futures Trading Commission (the
Commission) by one of the following
methods. The copies should refer to
‘‘OMB Control No. 3038–0052.’’
• Through the Commission’s website
at https://comments.cftc.gov. Please

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follow the instructions for submitting
comments through the website;
• By mail addressed to: Christopher
Kirkpatrick, Secretary of the
Commission, Commodity Futures
Trading Commission, Three Lafayette
Centre, 1155 21st Street NW,
Washington, DC 20581; or
• By Hand Delivery/Courier to the
same address as specified for mail.
Please submit your comments to the
Commission using only one method. A
copy of the supporting statement for the
collection of information discussed
herein may be obtained by visiting
http://RegInfo.gov.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments will be
posted as received to https://
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 (FOIA), a petition for
confidential treatment of the exempt
information may be submitted according
to the procedures established in § 145.9
of the Commission’s regulations.1 The
Commission reserves the right, but shall
have no obligation, to review, prescreen, filter, redact, refuse or remove
any or all of your submission from
https://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 applicable laws, and
may be accessible under the FOIA.
FOR FURTHER INFORMATION CONTACT:
Joshua Beale, Associate Director,
Division of Swap Dealer and
Intermediary Oversight, Commodity
Futures Trading Commission, (202)
418–5446; email: [email protected].
SUPPLEMENTARY INFORMATION:
Title: Core Principles and Other
Requirements for Designated Contract
Markets (OMB Control No. 3038–0052).
This is a request for a revision of a
currently approved information
collection.
Abstract: The Commission has
recently amended its Regulation 1.52 to
revise the scope and potential frequency
of a third-party expert’s evaluation of
self-regulatory organizations’ (SRO)
financial surveillance programs. The
evaluation report requirement is a
portion of the existing information
collection of requirements for SROs
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under Commission Regulation 1.52,
including designated contract markets
(DCM) and the National Futures
Association. The Commission’s
rulemaking will not alter the
requirement for an SRO to engage an
examinations expert to evaluate its
supervisory program prior to the initial
use of the supervisory program. The
Commission, however, is eliminating
the requirement that the examinations
expert must review the SRO’s ongoing
application of its supervisory program
during periodic reviews and the
analysis of the supervisory program’s
design to detect material weaknesses in
internal controls during both periodic
reviews and the initial review prior to
the program’s initial use. The
Commission also is revising the
frequency of when an SRO must engage
an examinations expert. Regulation 1.52
required an SRO to engage an
examinations expert at least once every
three years to perform such a review.
The Commission amended Regulation
1.52 to require an SRO to engage an
examinations expert whenever the
Public Company Accounting Oversight
Board (PCAOB) issues new or revised
auditing standards that are material to
the SRO’s examination of member
futures commission merchants (FCM).
The amendments further require an SRO
to engage an examinations expert at
least once every five years even if the
SRO determined that the PCAOB did
not issue new or revised auditing
standards during the previous five-year
period that are material to its
examinations of member FCMs. The
changes to the examinations expert
reviews impact the resulting expert
reports information collection burden.
The information collection is necessary
to enhance the ability of the
Commission and the designated SRO to
identify problematic financial matters in
time to avoid market disruptions when
an FCM may fail, particularly with
respect to the tie-up of customer funds
that may result.
The Commission, when originally
proposing changes to Regulation 1.52,
invited comments on its assessment that
although the costs associated with
obtaining the third-party expert would
be reduced by the amendment, the
paperwork burden impact of the
amended scope of the report would be
minimal. The Commission received no
comments and has adopted the final
rule. However, the Commission has
determined that a slight revision of the
expected burden hours associated with
the information collection is possible
due to the changes related to the thirdparty examinations expert report.

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