At the final rule stage, Appendix A of the supporting statement should include responses and burden hour estimates for all information collections under this control number, indicating what changes have been made as a result of the rulemaking. Also, Appendix A should include a summary table that shows the total of reporting and recordkeeping burdens being requested for each information collection under this OMB control number.
table that charts list comparision
Inventory as of this Action
Requested
Previously Approved
08/31/2022
36 Months From Approved
08/31/2022
98
0
98
6,853
0
6,853
0
0
0
In January 2018, the Commission adopted regulation 9.11(b)(3)(ii) requiring a designated contract market (DCM) or swap execution facility (SEF) (collectively, âexchangeâ) to include two additional elements in the disciplinary or access denial notice action provided to the National Futures Association. First, an exchange must include the type of product (as applicable) involved in the adverse action. Requiring an exchange to provide this information in the disciplinary or access denial notice will provide the Commission, market participants, the public, and other exchanges with greater transparency concerning where market abuses originate and whether the abuses are concentrated among certain product types. Second, an exchange must indicate in its notice of disciplinary or access denial actions whether the violation underlying the notice resulted in financial harm to any customers. The Commission believes that the inclusion of customer harm is essential because it cannot effectively perform its regulatory and oversight functions without knowledge of those instances in which brokers violate their fiduciary duty to customers by taking advantage of customer orders and engaging in fraudulent activity. The Commission concluded that the additional burden for an exchange to add the two additional elements in the contents of the disciplinary or access denial notice is de minimis and will not change the burden hours for the collection.
In addition, The Commission has recently amended its regulation 1.52 to revise the scope and potential frequency of a third-party expertâs evaluation of SROsâ financial surveillance programs. The evaluation report requirement is a portion of the existing information collection of requirements for SROs under Commission regulation 1.52, including Designated Contract Markets and the National Futures Association. The Commission is eliminating the requirement that the examinations expert must review the SROâs ongoing application of its supervisory program during periodic reviews and the analysis of the supervisory programâs design to detect material weaknesses in internal controls during both periodic reviews and the initial review prior to the programâs initial use. The Commission also is revising the frequency of when an SRO must engage an examinations expert. 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 self-regulatory organization 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.
(2020 NPRM) In Electronic Trading Risk Principles, the Commission seeks to update designated contract market (DCM) rules in response to the evolution from pit trading to electronic trading. The market disruption and integrity principles proposed in the NPRM are focused on electronic trading and routing by market participants and DCMs.
The proposed collection would require designated contract markets (DCMs) to promptly notify Commission staff of a significant disruption to its electronic trading platform(s) and provide timely information on the cause and remediation.
The notification requirement under proposed regulation 38.251(g) will assist the Commissionâs oversight and its ability to monitor and assess market disruptions across all DCMs.
Burden hours will increase because proposed §38.251(g) will increase the reporting and disclosures that DCMs are currently obligated to make to the Commission under the part 38 regulations. The Commission expects the proposed notification requirement will assist in market oversight and the ability to monitor and assess market disruptions and system anomalies resulting from electronic trading across all DCMs.
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:
(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;
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.
(2020) NPRM Supporting Statement 3038-0052 (07-15-2020).docx
Part 38 - Designated Contract Markets