Core Principles & Other Requirements for DCMs

Forms and Documents

Document	Type	Status	Availability
(2022) published 30-day FR Notice - 3038-0052.pdf	Supplementary Document	Uploaded 2022-07-01	Repair queued
(2022) 60-Day FR Notice - 3038-0052.pdf	Supplementary Document	Uploaded 2022-07-01	Missing upstream
(2022) Supporting Statement 3038-0052 - 07-01-22 - final.docx	Supporting Statement A	Uploaded 2022-07-01	Repair queued

IC Document Collections

IC ID	Collection	Type	Status	Form
29100	Part 38 - Designated Contract Markets		Modified
219525	System Safeguards Testing Requirements		Modified
209110	Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations		Modified

ICR Details

OMB Control No: 3038-0052	ICR Reference No: 202207-3038-003
Status: Received in OIRA	Previous ICR Reference No: 202012-3038-006
Agency/Subagency: CFTC	Agency Tracking No:
Title: Core Principles & Other Requirements for DCMs
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 07/01/2022

	Requested	Previously Approved
Expiration Date	36 Months From Approved	08/31/2022
Responses	297	254
Time Burden (Hours)	10,494	8,316
Cost Burden (Dollars)	0	0

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Abstract: The initial IC under the collection—regulations governing designated contract markets (DCMs)—found in part 38 of the Commission’s rules— were adopted pursuant to the Commodity Futures Modernization Act of 2000, which amended section 5 of the CEA to impose requirements concerning the registration and operation of DCMs. The DCM statutory framework subsequently was revised as a result of further amendments to the CEA under Title VII of the Dodd-Frank Act. Part 38 of the Commission’s regulations governs the activities of DCMs. The information collected under part 38 is used by the Commission to evaluate whether entities operating as, or applying to become, DCMs complied with its requirements. Information generated by the collection’s second IC provides the means for the Commission to prevent unauthorized usage of customer funds by FCMs while also providing modifications to existing rules respecting DCMs. The provisions obligate DCMs to comply with additional requirements for self-regulatory organizations, including the requirements to adopt enhanced examination procedures and have examination programs reviewed by an examinations expert and periodically file data with the Commission; information that is used by the Commission to maintain oversight by identifying problematic financial matters in time to avoid market disruptions, and avoid tie-up of customer funds. Under the collection’s third IC, the Commission uses the information to enhance its oversight by adopting the System Safeguards and Cybersecurity Testing Final Rulemaking, which requires DCMs to provide the Commission with annual trading volume information. Specifically, the trading volume information assists the Commission in its application of the enhanced system safeguard and cybersecurity testing requirements for DCMs.

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Authorizing Statute(s): US Code: 7 USC 6k, 6l, 6m, 6n 6o 6p 6r 6s Name of Law: CEA
   US Code: 7 USC 7, 7a-s, 7b, 7b-1, 7b-3 Name of Law: CEA
   US Code: 7 USC 8, 9, 10a, 12, 12a, 12c, 15 Name of Law: CEA
   US Code: 7 USC 13a, 13a-1, 15, 16, 16a, 19 Name of Law: CEA
   US Code: 7 USC 21, 23, 24 Name of Law: CEA
   US Code: 7 USC 1a, 2 Name of Law: CEA
   US Code: 7 USC 6, 6a, 6c, 6d, 6f, 6g, 6i, 6j Name of Law: CEA
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 25228	04/28/2022
30-day Notice:	Federal Register Citation:	Citation Date:
	87 FR 39506	07/01/2022
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 3

IC Title	Form No.	Form Name
Enhancing Protections Afforded Customers and Customer Funds Held by Futures Commission Merchants and Derivatives Clearing Organizations
Part 38 - Designated Contract Markets
System Safeguards Testing Requirements

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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	297	254	0	43	0	0
Annual Time Burden (Hours)	10,494	8,316	0	2,178	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Miscellaneous Actions

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: For the majority of collections under OMB control number 3038-0052, the Commission notes that the number of registered, active DCMs has increased from 14 to 16. For the collections related to Commission regulation 38.251(g), the Commission notes that the number of that the number of registered, active DCMs has decreased from 17 to 16. However, the increase in the number of DCMs for the other collections will increase the total information collection burdens for OMB control number 3038-0052.

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Annual Cost to Federal Government: $0

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.     No

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: 07/01/2022

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