Sections 4a(a)(2) and 4a(a)(5) of the
Commodity Exchane Act (“CEA or “Act”) 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 Commission’s
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 (“FCM”),
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 staff’s review of
submissions and the Commission’s 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 (“Series ’04 reports”). To effect
these changes to traders’ 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