Position Limits

Forms and Documents

Document Name	Status
Form CFTC Form 304 Position Limits Form and Instruction	Modified
(2020) Position Limits Adopting Release PRA Supporting Statement.docx Supporting Statement A	2020-12-14

IC Document Collections

IC ID	Document Title	Status
29025	Position Limits Form and Instruction	Modified

ICR Details

OMB Control No: 3038-0013	ICR Reference No: 202012-3038-002
Status: Received in OIRA	Previous ICR Reference No: 202001-3038-002
Agency/Subagency: CFTC	Agency Tracking No:
Title: Position Limits
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 01/14/2021

	Requested	Previously Approved
Expiration Date	36 Months From Approved	03/31/2023
Responses	11,722	340
Time Burden (Hours)	13,767	6,850
Cost Burden (Dollars)	53,875,000	1,088,000

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Abstract: Section 4a(a) of the Commodity Exchange Act (Act) allows the Commission to set speculative limits in any commodity for future delivery in order to prevent excessive speculation. The reporting and record-keeping requirements included in the Final Rule will be used by the Commission to verify exemptions from position limit requirements on a universe of 25 physically-settled futures contracts (the “Core Referenced Futures Contracts” or “CRFCs”) and their linked cash-settled futures, options on futures, and “economically equivalent” swaps (collectively, “Referenced Contracts”). For example, under § 150.2, persons who avail themselves of a non-enumerated bona fide hedge, are required to submit an application either to the exchange or to the Commission directly requesting such relief. In addition, under § 150.5, DCMs are required to maintain records on the exemptions granted from exchange-set position limits. The collections of information covered by OMB control number 3038-0013 are necessary for the Commission to determine whether to recognize a trader’s position as a bona fide hedge exempted from position limit requirements. They also ensure that exchange-set limits comply with Commission regulations, including that such limits are no higher than the applicable federal level; that the exchanges establish minimum standards needed to administer the exchange’s position limits framework; and that the Commission is able to oversee an exchange’s exemptions process to ensure it does not undermine the federal position limits framework. They also help ensure that any person claiming any exemption can demonstrate compliance with the applicable requirements. Overall, the data continues to support the Commission’s ability to monitor and surveil the markets, particularly in contract markets that are newly subject to federal position limit requirements.

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Authorizing Statute(s): US Code: 7 USC 6a Name of Law: Commodity Exchange Act
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AD99	Final or interim final rulemaking	86 FR 3236	01/14/2021

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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: 1

IC Title	Form No.	Form Name
Position Limits	CFTC Form 304	Statement of Cash Positions for Unfixed-Price Cotton “On Call”

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ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	11,722	340	0	11,382	0	0
Annual Time Burden (Hours)	13,767	6,850	0	6,917	0	0
Annual Cost Burden (Dollars)	53,875,000	1,088,000	0	52,787,000	0	0

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: Changes are due to the creation and amendments to collections of information by the 2021 final rule (approved by the Commission on October 15, 2020). The Commission is reorganizing the information found in the OMB control numbers associated with its position limits regulations. 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. The 2021 final rule amended part 19 to remove reporting obligations associated with Parts I and II of Form 304. The Commission maintained Part III of Form 304, which requests information on unfixed-price “on call” purchases and sales of cotton and which the Commission utilizes to prepare its weekly cotton on-call report. Part 150 establishes an amended process for traders to obtain a bona fide hedge exemption or recognition, which includes: (i) a new bona fide hedging definition in § 150.1, (ii) a new streamlined process administered by the exchanges in proposed § 150.9 for recognizing non-enumerated bona fide hedging exemptions for federal limit requirements, and (iii) an amended process in proposed § 150.3 to apply directly to the Commission for certain spread exemptions or for recognition of non-enumerated bona fide hedging positions.

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Annual Cost to Federal Government: $4,777,500

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     Yes

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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? No

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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: 01/14/2021

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