Part 40, Provisions Common to Registered Entities

Forms and Documents

Document Name	Status
2023 30-Day FRN 3038-0093 (88 FR 86637).pdf Supplementary Document	2023-12-14
2023 60-Day FRN 3038-0093 (88 FR 68112).pdf Supplementary Document	2023-12-14
2023 Supporting Statement 3038-0093.docx Supporting Statement A	2023-12-14

IC Document Collections

IC ID	Document Title	Status
245354	Part 150 Position Limits	Removed
201522	Part 40, Provisions Common To Registered Entities	Modified

ICR Details

OMB Control No: 3038-0093	ICR Reference No: 202312-3038-001
Status: Received in OIRA	Previous ICR Reference No: 202102-3038-001
Agency/Subagency: CFTC	Agency Tracking No:
Title: Part 40, Provisions Common to Registered Entities
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 12/14/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	02/29/2024
Responses	2,296	7,040
Time Burden (Hours)	20,540	14,966
Cost Burden (Dollars)	0	0

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Abstract: The Commission is seeking to renew control number 3038-0093. Part 40 provides procedures for the submission of rules, rule amendments and products by registered entities, including designated contract markets, swap execution facilities, derivatives clearing organizations, and swap data repositories. Part 40 establishes the procedures for a registered entity to submit to the Commission the “written certification” required by Section 5c of the Commodity Exchange Act (“CEA”) in order for the registered entity to certify to the Commission that a product to be listed (pursuant to § 40.2) or a rule or rule amendment to be implemented (pursuant to § 40.6) complies with the Act and Commission’s regulations thereunder. As part of a self-certification of a product under § 40.2, a registered entity must submit to the Commission, among other things, a concise explanation and analysis of the product and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder. As part of a self-certification of a rule or rule amendment under § 40.6, a registered entity must submit to the Commission, among other things, a concise explanation and analysis of the operation, purpose and effect of the proposed rule or rule amendment and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder. Part 40 also establishes procedures for a registered entity to submit a request pursuant to Section 5c(c)(4) of the Act that the Commission approve a rule or a rule amendment (pursuant to § 40.5) or a product (pursuant to § 40.3) of the registered entity. As part of requesting a product be approved by the Commission under § 40.3, a registered entity must submit to the Commission, among other things, an explanation and analysis of the product and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder. As part of requesting a rule or rule amendment be approved by the Commission under § 40.5, a registered entity must submit to the Commission, among other things, an explanation and analysis of the operation, purpose and effect of the proposed rule or rule amendment and its compliance with applicable provisions of the Act, including core principles, and the Commission’s regulations thereunder. In certain instances, other Commission regulations may expressly or impliedly trigger the requirement for a registered entity to make a rule submission under §§ 40.5 or 40.6. For example, the Commission’s part 150 regulation on position limits contains an express requirement under § 150.9(a) to make a § 40.5 rule filing in certain circumstances.

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Authorizing Statute(s): US Code: 7 USC 7a-2 Name of Law: Procedures for Registered Entities, etc.
  

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:
	88 FR 68112	10/03/2023
30-day Notice:	Federal Register Citation:	Citation Date:
	88 FR 86637	12/14/2023
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
Part 150 Position Limits
Part 40, Provisions Common To Registered Entities

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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	2,296	7,040	0	0	-4,744	0
Annual Time Burden (Hours)	20,540	14,966	0	0	5,574	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

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

Burden Increase Due to:

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

Burden Reduction Due to:

Short Statement: There are no program changes. The Commission is updating its burden hour estimates to reflect the current number filings and of burden hours for each filing. To obtain the number of filings, CFTC staff searched the Commission data for filings made in 2020, 2021, and 2022, and averaged the totals by filing type. For the burden hours, CFTC staff have updated their burden estimates based on the Commission data, including the Commission’s 2018 burden estimates as updated in response to comments by registered entities. CFTC staff also reviewed Commission data to estimate the number of respondents currently obligated to make filings under part 40. In addition, the Commission is revising the collection by consolidating the two Information Collections under this clearance. OMB Control Number 3038-0093 currently has two Information Collections (ICs): Part 40, Provisions Common to Registered Entities (“Provisions Common to Regulated Entities IC”); and Part 150, Position Limits (“Part 150 Position Limits IC”). The Provisions Common to Regulated Entities IC includes almost all filings made under §§40.2, 40.3, 40.5, 40.6 and 40.10. The Part 150 Position Limits IC was created to account for rule filings made pursuant to §150.9(a), which requires SEFs and DCMs to submit rules to the Commission for approval under § 40.5 if they wish to establish a self-regulatory process for recognition of bona fide hedging transactions that are not enumerated in part 150’s express list of such transactions. CFTC staff has determined it is not necessary to maintain a separate IC for part 40 filing requirements triggered by § 150.9(a) because the burdens are not different in type from the other burdens aggregated into the general Provisions Common to Regulated Entity IC. Disaggregating every underlying substantive requirement that triggers a part 40 rule filing is impracticable, given that so many Commission regulations impacting the registered entities could trigger a filing under certain circumstances. Accordingly, the Commission believes that a single category for each type of filing (product, rule or SIDCO) provides more appropriate information about the burden associated with the collection, as shown in Attachment A. As a result, the Commission is consolidating the estimates for both ICs under IC 1, Part 40, Provisions Common to Registered Entities. This consolidation and revision yields a total burden hour estimate of 20,540 annual burden hours (a 5,574-hour increase from the prior estimate of 14,966 annual burden hours).

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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: 12/14/2023

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