60-Day Federal Register Notice

Federal Register / Vol. 85, No. 207 / Monday, October 26, 2020 / Notices
(OMB Control No. 3038–0092). This is
a request for extension of a currently
approved information collection.
Abstract: Section 4d(c) of the
Commodity Exchange Act (‘‘CEA’’), as
amended by the Dodd-Frank Wall Street
and Reform Consumer Protection Act
(‘‘Dodd-Frank Act’’), directs the
Commission to require futures
commission merchants (‘‘FCMs’’) to
implement conflict of interest
procedures that address such issues the
Commission determines to be
appropriate. Similarly, section 4s(j)(5) of
the CEA, as added by the Dodd-Frank
Act, requires swap dealers (‘‘SDs’’) and
major swap participants (‘‘MSPs’’) to
implement conflict of interest
procedures that address such issues the
Commission determines to be
appropriate. Section 4s(j)(5) also
requires SDs and MSPs to ensure that
any persons providing clearing activities
or making determinations as to
accepting clearing customers are
separated by appropriate informational
partitions from persons whose
involvement in pricing, trading, or
clearing activities might bias their
judgment or contravene the core
principle of open access. Section 4s(j)(6)
of the CEA prohibits a SD or MSP from
adopting any process or taking any
action that results in any unreasonable
restraint on trade or imposes any
material anticompetitive burden on
trading or clearing, unless necessary or
appropriate to achieve the purposes of
the Act. Section 2(h)(1)(B)(ii) of the CEA
requires that derivatives clearing
organization (‘‘DCOs’’) rules provide for
the nondiscriminatory clearing of swaps
executed bilaterally or through an
unaffiliated designated contract market
or swap execution facility.
To address these provisions, the
Commission promulgated regulations
that prohibit arrangements involving
FCMs, SDs, MSPs, and DCOs that would
(a) disclose to an FCM, SD, or MSP the
identity of a customer’s original
executing counterparty (§§ 1.72(a),
23.608(a), and 39.12(a)(1)(vi)); (b) limit
the number of counterparties with
whom a customer may enter into a trade
(§§ 1.72(b), 23.608(b), and
39.12(a)(1)(vi)); (c) restrict the size of the
position a customer may take with any
individual counterparty, apart from an
overall credit limit for all positions held
by the customer at the FCM (§§ 1.72(c),
23.608(c), and 39.12(a)(1)(vi)); (d)
impair a customer’s access to execution
of a trade on terms that have a
reasonable relationship to the best terms
available (§§ 1.72(d), 23.608(d), and
39.12(a)(1)(vi)); or (e) prevent
compliance with specified time frames
for acceptance of trades into clearing set

VerDate Sep<11>2014

17:31 Oct 23, 2020

Jkt 253001

forth in 1.74(b), 23.610(b), or 39.12(b)(7)
(§§ 1.72(e), 23.608(e), and
39.12(a)(1)(vi)). Additionally, the
Commission requires, through
regulation 39.12(b)(7)(i)(B), DCOs to
coordinate with clearing members to
establish prompt processing of trades.
Regulations 1.74(a) and 23.610(a)
require reciprocal coordination by
FCMs, SDs, and MSPs that are clearing
members.
Under the above regulations, SDs,
MSPs, FCMs, and DCOs are required to
develop and maintain written customer
clearing documentation and trade
processing procedures. Maintenance of
contracts, policies, and procedures is
prudent business practice. All SDs,
MSPs, FCMs, and DCOs maintain
documentation consistent with these
regulations. The regulations are crucial
both for effective risk management and
for the efficient operation of trading
venues among SDs, MSPs, FCMs, and
DCOs. Each of these entities has a
general recordkeeping obligation for
these requirements under the
Commission’s regulations (§ 39.20 for
DCOs; § 23.606 for SDs and MSPs; and
§ 1.73 for FCMs).
The information collection burden
arising from the regulations primarily is
restricted to the costs associated with
the affected registrants’ obligation to
maintain records related to clearing
documentation between the customer
and the customer’s clearing member,
and trade processing procedures
between DCOs and FCMs, SDs, and
MSPs. The information collection
obligations are necessary to implement
certain provisions of the CEA, including
ensuring that registrants exercise
effective risk management and for the
efficient operation of trading venues
among SDs, MSPs, FCMs, and DCOs.
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 August 17, 2020,
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, 85
FR 50013 (‘‘60-Day Notice’’) The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
183.
Estimated Average Burden Hours per
Respondent: 40.
Estimated Total Annual Burden
Hours: 7,320.

PO 00000

Frm 00017

Fmt 4703

Sfmt 4703

67721

Frequency of Collection: Daily,
annually, or as needed.
There are no capital costs or operating
and maintenance costs associated with
this collection.
Authority: 44 U.S.C. 3501 et seq.
Dated: October 21, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020–23671 Filed 10–23–20; 8:45 am]
BILLING CODE 6351–01–P

COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Notice of Intent To Extend
Collection 3038–0062: Off-Exchange
Foreign Currency Transactions
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:

The Commodity Futures
Trading Commission (‘‘CFTC’’ or
‘‘Commission’’) is announcing an
opportunity for public comment on the
proposed renewal of a collection of
certain information by the agency.
Under the Paperwork Reduction Act
(‘‘PRA’’), Federal agencies are required
to publish notice in the Federal Register
concerning each proposed collection of
information, including each proposed
extension of an existing collection of
information, and to allow 60 days for
public comment. This notice solicits
comments on the collection of
information provided for by Part 5 of the
Commission’s regulations under the
Commodity Exchange Act (‘‘CEA’’)
relating to off-exchange foreign currency
transactions.
DATES: Comments must be submitted on
or before December 28, 2020.
ADDRESSES: You may submit comments,
identified by ‘‘OMB Control No. 3038–
0062’’ by any of the following methods:
• The Agency’s website, at http://
comments.cftc.gov/. Follow the
instructions for submitting comments
through the website.
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Same as
Mail above.
Please submit your comments using
only one method. 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.
SUMMARY:

E:\FR\FM\26OCN1.SGM

26OCN1

67722

Federal Register / Vol. 85, No. 207 / Monday, October 26, 2020 / Notices

FOR FURTHER INFORMATION CONTACT:

Gregory Scopino, Special Counsel,
Division of Swap Dealer & Intermediary
Oversight, Commodity Futures Trading
Commission, (202) 418–5175; email:
[email protected].
SUPPLEMENTARY INFORMATION: Under the
PRA, 44 U.S.C. 3501 et seq., Federal
agencies must obtain approval from the
Office of Management and Budget
(OMB) for each collection of
information they conduct or sponsor.
‘‘Collection of Information’’ is defined
in 44 U.S.C. 3502(3) and 5 CFR 1320.3
and includes agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party. Section
3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), requires Federal agencies
to provide a 60-day notice in the
Federal Register concerning each
proposed collection of information
before submitting the collection to OMB
for approval. To comply with this
requirement, the CFTC is publishing
notice of the proposed collection of
information listed below. 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.
Title: Off-Exchange Foreign Currency
Transactions (OMB Control No. 3038–
0062). This is a request for an extension
of a currently approved information
collection.
Abstract: Part 5 of the Commission’s
regulations under the CEA establishes
rules applicable to retail foreign
exchange dealers (‘‘RFEDs’’), futures
commission merchants (‘‘FCMs’’),
introducing brokers (‘‘IBs’’), commodity
trading advisors (‘‘CTAs’’), and
commodity pool operators (‘‘CPOs’’)
engaged in the offer and sale of offexchange forex contracts to retail
customers. Specifically:
• Regulation 5.5 requires RFEDs,
FCMs, and IBs to distribute risk
disclosure statements to new retail forex
customers.
• Regulation 5.6 requires RFEDs and
FCMs to report any failures to maintain
the minimum capital required by
Commission regulations.
• Regulation 5.8 requires RFEDs and
FCMs to calculate their total retail forex
obligation.
• Regulation 5.10 requires RFEDs to
maintain and preserve certain risk
assessment documentation.
• Regulation 5.11(a)(1) requires
RFEDs to submit certain risk assessment
documentation to the Commission
within 60 days of the effective date of
their registration.

VerDate Sep<11>2014

17:31 Oct 23, 2020

Jkt 253001

• Regulation 5.11(a)(2) requires
RFEDs to submit certain financial
documentation to the Commission
within 105 calendar days of the end of
each fiscal year. RFEDs must also
submit additional information, if
requested, regarding affiliates’ financial
impact on an RFED’s organizational
structure.
• Regulation 5.12(a) requires RFED
applicants to submit a Form 1–FR–FCM
concurrently with their registration
application.
• Regulation 5.12(b) requires
registered RFEDs to file a Form 1–FR–
FCM on a monthly and annual basis.
• Regulation 5.12(g) states that, in the
event that an RFED cannot file its Form
1–FR–FCM for any period within the
time specified in Regulation 5.12(b), the
RFED may file an application for an
extension of time with its self-regulatory
organization.
• Regulation 5.13(a) requires RFEDs
and FCMs to provide monthly account
statements to their customers.
• Regulation 5.13(b) requires RFEDs
and FCMs to provide confirmation
statements to their customers within
one business day after the execution of
any retail forex or forex option
transaction.
• Regulation 5.14 requires RFEDs and
FCMs to maintain current ledgers of
each transaction affecting its asset,
liability, income, expense and capital
accounts.
• Regulation 5.18(g) requires each
RFED, FCM, CPO, CTA, and IB subject
to part 5 to maintain a record of all
communications received that give rise
to possible violations of the Act, rules,
regulations or orders thereunder related
to their retail forex business.
• Regulation 5.18(i) requires each
RFED and FCM to prepare and maintain
on a quarterly basis a calculation of nondiscretionary retail forex customer
accounts open for any period of time
during the quarter that were profitable,
and the percentage of such accounts that
were not profitable.
• Regulation 5.18(j) requires the CCO
of each RFED and FCM to certify
annually that the firm has in place
processes to establish, maintain, review,
modify and test policies and procedures
reasonably designed to achieve
compliance with the Act, rules,
regulations and orders thereunder.
• Regulation 5.19 requires each
RFED, FCM, CPO, CTA, and IB subject
to part 5 to submit to the Commission
copies of any dispositive or partially
dispositive decision for which a notice
of appeal has been filed in any material
legal proceeding (1) to which the firm is
a party to or to which its property or
assets is subject with respect to retail

PO 00000

Frm 00018

Fmt 4703

Sfmt 4703

forex transactions, or (2) instituted
against any person who is a principal of
the firm arising from conduct in such
person’s capacity as a principal of that
firm.
• Regulation 5.20 requires RFEDs,
FCMs and IBs to submit documentation
requested pursuant to certain types of
special calls by the Commission.
• Regulation 5.23 requires RFEDs,
FCMs and IBs to notify the Commission
regarding bulk transfers and bulk
liquidations of customer accounts.
The rules establish reporting and
recordkeeping requirements that are
necessary to implement the provisions
of the Food, Conservation, and Energy
Act of 2008 1 regarding off-exchange
transactions in foreign currency with
members of the public. The rules are
intended to promote customer
protection by providing safeguards
against irresponsible or fraudulent
business practices.2
With respect to the collection of
information, the CFTC invites
comments on:
• Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have a practical use;
• The accuracy of the Commission’s
estimate of the burden of the proposed
collection of information, including the
validity of the methodology and
assumptions used;
• Ways to enhance the quality,
usefulness, and clarity of the
information to be collected; and
• Ways to minimize the burden of
collection of information on those who
are to respond, including through the
use of appropriate automated electronic,
mechanical, or other technological
collection techniques or other forms of
information technology; e.g., permitting
electronic submission of responses.
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, 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.3
The Commission reserves the right,
but shall have no obligation, to review,
pre-screen, filter, redact, refuse or
remove any or all of your submission
from http://www.cftc.gov that it may
1 Public Law 110–246, 122 Stat. 1651, 2189–220
(2008).
2 See Regulation of Off-Exchange Retail Foreign
Exchange Transactions and Intermediaries, 75 FR
55410, 55416 (Sept. 10, 2010).
3 17 CFR 145.9.

E:\FR\FM\26OCN1.SGM

26OCN1

Federal Register / Vol. 85, No. 207 / Monday, October 26, 2020 / Notices
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 the
Administrative Procedure Act and other
applicable laws, and may be accessible
under the Freedom of Information Act.
Burden Statement: The Commission
is revising its estimate of the burden for
this collection for 146 respondents,
which include RFEDs, FCMs, IBs, CPOs,
and CTAs. The respondent burden for
this collection is estimated to be as
follows:
Estimated Number of Respondents:
146.
Estimated Average Burden Hours per
Respondent: 2,865.4
Estimated Total Annual Burden
Hours: 418,286.
Frequency of Collection: 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: October 21, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020–23669 Filed 10–23–20; 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 Information and Regulatory
Affairs (OIRA), of 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 November 25, 2020.
ADDRESSES: Written comments and
recommendations for the proposed
information collection should be
submitted within 30 days of this
notice’s publication to OIRA, at https://
www.reginfo.gov/public/do/PRAMain.
SUMMARY:

4 This figure has been rounded to the nearest one:
2,864.972 to 2865.

VerDate Sep<11>2014

17:31 Oct 23, 2020

Jkt 253001

Please find this particular information
collection by selecting ‘‘Currently under
30-day Review—Open for Public
Comments’’ or by using the website’s
search function. Comments can be
entered electronically by clicking on the
‘‘comment’’ button next to the
information collection on the ‘‘OIRA
Information Collections Under Review’’
page, or the ‘‘View ICR—Agency
Submission’’ page. A copy of the
supporting statement for the collection
of information discussed herein may be
obtained by visiting https://
www.reginfo.gov/public/do/PRAMain.
In addition to the submission of
comments to https://Reginfo.gov as
indicated above, a copy of all comments
submitted to OIRA may also be
submitted to the Commodity Futures
Trading Commission (the
‘‘Commission’’ or ‘‘CFTC’’) by clicking
on the ‘‘Submit Comment’’ box next to
the descriptive entry for OMB Control
No. 3038–0097, at https://
comments.cftc.gov/FederalRegister/
PublicInfo.aspx.
Or by either of the following methods:
• Mail: Christopher Kirkpatrick,
Secretary of the Commission,
Commodity Futures Trading
Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC
20581.
• Hand Delivery/Courier: Same as
Mail above.
All comments must be submitted in
English, or if not, accompanied by an
English translation. Comments
submitted to the Commission should
include 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, 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 the Administrative
Procedure Act and other applicable
laws, and may be accessible under the
Freedom of Information Act.
FOR FURTHER INFORMATION CONTACT:
Megan Wallace, Senior Special Counsel,
1 17

PO 00000

CFR 145.9.

Frm 00019

Fmt 4703

Sfmt 9990

67723

Division of Clearing and Risk,
Commodity Futures Trading
Commission, (202) 418–5150; email:
[email protected], and refer to OMB
Control No. 3038–0097.
Title:
Process for Review of Swaps for
Mandatory Clearing (OMB Control No.
3038–0097). This is a request for
extension of a currently approved
information collection.
Abstract: The Commodity Exchange
Act and Commission regulations require
a derivatives clearing organization
(‘‘DCO’’) that wishes to accept a swap
for clearing to be eligible to clear the
swap and to submit the swap to the
Commission for a determination as to
whether the swap is required to be
cleared. Commission Regulation 39.5
sets forth the process for these
submissions. The Commission will use
the information in this collection to
determine whether a DCO that wishes to
accept a swap for clearing is eligible to
clear the swap and whether the swap
should be required to be cleared.
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 August 17, 2020,
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, 85
FR 50012 (‘‘60-Day Notice’’) The
Commission did not receive any
comments on the 60-Day Notice.
Burden Statement: The respondent
burden for this collection is estimated to
be as follows:
Estimated Number of Respondents:
15.
Estimated Average Burden Hours per
Respondent: 40.
Estimated Total Annual Burden
Hours: 600.
Frequency of Collection: On
occasion.2
There are no capital costs or operating
and maintenance costs associated with
this collection.
SUPPLEMENTARY INFORMATION:

(Authority: 44 U.S.C. 3501 et seq.)
Dated: October 21, 2020.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2020–23670 Filed 10–23–20; 8:45 am]
BILLING CODE 6351–01–P
2 While the 60-day Notice indicates ‘‘daily,
annual, and on occasion,’’ the frequency of
information collection is only ‘‘on occasion’’ based
on current data.

E:\FR\FM\26OCN1.SGM

26OCN1