Sections 4a(a)(2) and 4a(a)(5) of the Commodity Exchane Act (âCEA or âActâ) directthe Commission establish concurrently, speculative position limitations, as appropriate, on physical commodity futures contracts (specifically exempt and agricultural contracts) and swaps that are economically equivalent to those futures contracts. Section 4a of the CEA and the rules adopted thereunder are designed to prevent excessive speculation and manipulation in a manner, in the Commissionâs discretion, that maximizes the goals of preserving market liquidity for bona fide hedgers while protecting the price discovery process.
In particular, the Commission is moving from OMB control number 3038-0009 to OMB control number 3038-0013 the burdens related to collections of information under part 19 (Reports by Persons Holding Bona Fide Hedge Positions and By Merchants and Dealers in Cotton) related to position limit requirements. Other than moving the existing aforementioned collections of information under part 19 from OMB control number 3038-0009 to OMB control number 3038-0013, the final rule does not make any other substantive changes to OMB control number 3038-0009 for the purposes of the Paperwork Reduction Act. The existing reporting rules covered by OMB control number 3038-0009 are structured to ensure the Commission receives adequate information to carry out its market and financial surveillance programs. The reporting rules are implemented by the Commission partly pursuant to the authority of sections 4a, 4c(b), 4g, and 4i of the Act. Section 4a of the Act permits the Commission to set, approve exchange-set, and enforce speculative position limits. Section 4c(b) of the Act gives the Commission plenary authority to regulate transactions that involve commodity options. Section 4g of the Act imposes reporting and recordkeeping obligations on registered entities, and requires each registrant, whether a futures commission merchant (âFCMâ), introducing broker, floor broker, or floor trader, to file such reports as the Commission may require on proprietary and customer positions executed on any board of trade in the United States or elsewhere. Lastly, section 4i of the Act requires the filing of such reports as the Commission may require when positions made or obtained on exchanges equal or exceed Commission-set levels. The requested information is essential to the staffâs review of submissions and the Commissionâs oversight of the self-regulatory actions of designated contract markets, swap execution facilities, derivatives clearing organizations, and swap data repositories. The information collected is used primarily by Commission analysts for daily market surveillance and the enforcement of speculative position limits. The data also provides a basis for periodic Commission publications and is used by Commission economists and the public for research.
US Code: 7 USC 6a, 6c(b), 6g, 6i, Name of Law: Exempt Markets
US Code: 7 USC 1 et seq Name of Law: Exempt Markets
US Code: 7 USC 2(h)(7) Name of Law: Exempt Markets
US Code: 7 USC 12a(5) Name of Law: Exempt Markets
US Code: 7 USC 1a(11) Name of Law: Exempt Markets
US Code: 7 USC 1a(10) Name of Law: Exempt Markets
US Code: 7 USC 1a(12) Name of Law: Exempt Markets
US Code: 7 USC 5(b) Name of Law: Exempt Markets
Changes are due to amendments to part 19 to remove reporting obligations associated with Form 204 and Parts I and II of Form 304 (âSeries â04 reportsâ). To effect these changes to tradersâ reporting obligations, the Commission would eliminate (i) existing § 19.00(a)(1), which requires the applicable persons to file a Form 204; and (ii) existing § 19.01, which among other things, sets forth the cash-market information required to be submitted on the Forms 204 and 304.
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.
Form 40 Large Trader Reports
(2020) Position Limits Adopting Release PRA Supporting Statement.docx
Large Trader Reports