2017-13243
Federal Register, Volume 82 Issue 121 (Monday, June 26, 2017)
[Federal Register Volume 82, Number 121 (Monday, June 26, 2017)]
[Rules and Regulations]
[Pages 28763-28770]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-13243]
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Parts 5, 11, 16, 17, 18, 19, 20, 21, 48, 140, and 150
RIN 3038-AE42
Commission Delegated Authority Provisions and Technical
Amendments
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
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SUMMARY: The Commodity Futures Trading Commission (the ``Commission''
or ``CFTC'') is adopting final rules to establish new and amend certain
existing delegations of authority to Commission staff. The Commission
is also adopting amendments to update statutory authority citations and
correct limited typographical and technical errors in certain rules.
DATES: This rule is effective June 26, 2017.
FOR FURTHER INFORMATION CONTACT: David Van Wagner, Chief Counsel,
Division of Market Oversight, (202) 418-5481, [email protected];
Jeanette Curtis, Special Counsel, Division of Market Oversight, (202)
418-5669, [email protected]; Gretchen L. Lowe, Chief Counsel, Division
of Enforcement, (202) 418-5379, [email protected]; or Edward Wehner, IT
Specialist, Office of Data and Technology, (202) 418-6764,
SUPPLEMENTARY INFORMATION:
I. Background
A. Commission Delegations of Authority
The Commission is adopting final rules to establish new and amend
certain existing delegations of authority to Commission staff.
Previously, the Commission delegated, to the Director of the Division
of Market Oversight (``DMO''), various authorities for implementing
certain Commission regulations.\1\ Many of these delegated authorities
have been carried out by staff in DMO's Surveillance Branch. However,
as a result of the recent Commission organizational restructuring,
which moved DMO's Surveillance Branch to the Division of Enforcement
(``DOE''), the Commission has completed a full review of DMO delegated
authorities and decided to remove certain delegated authorities from
the DMO Director, other division directors, and certain Commission
staff. The Commission is delegating such authorities to the Director of
DOE or the Director of the Office of Data and Technology (``ODT''). In
addition, the Commission is adding new delegations of authority to
certain of the part 48 provisions that govern the registration of
Foreign Boards of Trade (``FBOT'').
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\1\ 17 CFR 5.20(d), 11.2(a), 16.07, 18.03, 19.00(a)(3), 20.8,
21.05, 140.72(a), 140.73, 140.74, 140.97, 150.3(b), and 150.4(e)
(Commission delegations of authority to the DMO Director prior to
this final rule).
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B. Statutory Authority Citations and Technical Corrections
For certain regulations, the Commission is revising the statutory
authority citations to reflect the most current citation. On July 21,
2010, President Obama signed the Wall Street Reform and Consumer
Protection Act (the ``Dodd-Frank Act'') into law.\2\ Title VII of the
Dodd-Frank Act amended provisions of the Commodity Exchange Act
(``CEA'') \3\ to establish a comprehensive framework for the regulation
of swaps and security-based swaps. However, according to the Federal
Register drafting handbook, it is recommended that the Commission only
list the current United States Code (``U.S.C.'') citation when it is
available.\4\ As such, the Commission need only cite the Dodd-Frank Act
as the amending statutory authority for each rule part until such
amendments are codified in the U.S.C. Since the Dodd-Frank Act
provisions have been codified in the U.S.C., the Commission is revising
the citation authority preceding certain Commission regulations to
reflect the current U.S.C. citations.
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\2\ Public Law 111-203, 124 Stat. 1376 (July 21, 2010).
\3\ 7 U.S.C. 1 et seq. (2012).
\4\ See National Archives and Records Administration, Office of
the Federal Register, Document Drafting Handbook, section 3.12
(Authority citations), 3-26 (May 2017 update, Revision 2, June 7,
2017).
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In addition, the Commission is amending certain of its regulations
to revise a limited number of typographical and formatting errors, and
to delete a duplicate regulation.
II. Amended Regulations
A. Part 5
Part 5 of the Commission's regulations governs off-exchange foreign
currency transactions. Section 5.20(d) covers Commission delegated
authority to the DMO Director to make special calls for information on
controlled accounts from retail foreign exchange dealers, futures
commission merchants (``FCMs'') and introducing brokers (``IBs''), and
to make special calls for information on open contracts in accounts
carried or introduced by FCMs, IBs, and foreign brokers. The Commission
is amending its delegation of authority in Sec. 5.20(d) to remove the
DMO Director from its list of delegates and to delegate such authority
to the DOE Director, or such other employee or employees as the
Director may designate from time to time. The Commission is also
deleting the Dodd-Frank Act reference from the part 5 statutory
authority citation.
B. Part 11
Part 11 of the Commission's regulations establishes rules relating
to investigations. Section 11.2(a) delegates authority to the DOE
Director, the Director of the Division of Swap Dealer and Intermediary
Oversight (``DSIO''), the Director of the Division of Clearing and Risk
(``DCR''), the Director of DMO, the Chief Economist, and members of
their staffs acting within the scope of their respective
responsibilities, to
[[Page 28764]]
conduct investigations in particular matters. The Commission has
decided to delegate such investigatory authority to the DOE Director
and members of Commission staff acting pursuant to the Director's
authority and under the Director's direction to conduct investigations.
The Commission is amending its delegation of authority in Sec. 11.2(a)
to remove the Chief Economist and the Directors of DSIO, DCR and DMO
and their staff from its list of delegates. The Commission is also
updating the part 11 statutory authority citation to reflect the
correct numerical ordering of the statutory provisions cited.
C. Part 16
Part 16 of the Commission's regulations governs reports by
designated contract markets and swap execution facilities. Section
16.07(a) delegates authority to the DMO Director to determine the form,
manner and time of filing reports required in Sec. Sec. 16.00(b) and
16.01(d). Section 16.07(b) delegates authority to the DMO Director to
determine the format, coding structure and electronic data transmission
procedures used by reporting markets pursuant to Sec. Sec.
16.00(b)(1), 16.01(d)(1) and 16.06. The Commission is amending its
delegations of authority in Sec. 16.07(a) and (b) to remove the DMO
Director from its list of delegates and to delegate such authority to
the ODT Director, with the concurrence of the DMO Director, or such
other employee or employees as the Directors each may designate from
time to time. The Commission is also deleting the Dodd-Frank Act
reference from the part 16 statutory authority citation and updating
the part 16 statutory authority citation to reflect the correct
numerical ordering of the statutory provisions cited. The Commission is
also amending the outline formatting of Sec. 16.07.
D. Part 17
Part 17 of the Commission's regulations governs reports by
reporting markets, futures commission merchants, clearing members, and
foreign brokers. In Sec. 17.03, the Commission is adding a delegation
of authority, pursuant to Sec. 17.01(e), to the ODT Director, in
consultation with the DMO Director, or such other employee or employees
as the Directors each may designate from time to time, to issue
requests for Forms 102 and 71. The Commission is also making
typographical corrections to the time formatting in Sec. 17.02, and
deleting the Dodd-Frank Act reference from the part 17 statutory
authority citation.
E. Part 18
Part 18 of the Commission's regulations governs reports by certain
traders. Section 18.03 governs Commission delegated authority to the
DMO Director to issue special calls for certain reports and information
to be furnished by traders, and to request information related to the
maintenance of books and records. The Commission is amending its
delegation of authority in Sec. 18.03 to remove the DMO Director from
its list of delegates for issuing special calls for information
pursuant to Sec. Sec. 18.00 and 18.05, and to delegate such authority
to the DOE Director, or such other employee or employees as the
Director may designate from time to time. The Commission is also
amending its delegation of authority in Sec. 18.03 to remove the DMO
Director from its list of delegates for issuing special calls for
information pursuant to Sec. 18.04, and to delegate such authority to
the ODT Director, in consultation with the DMO Director, or such other
employee or employees as the Directors each may designate from time to
time. Finally, the Commission is deleting the Dodd-Frank Act reference
from the part 18 statutory authority citation.
F. Part 19
Part 19 of the Commission's regulations governs reports by persons
holding bona fide hedge positions, and by merchants and dealers in
cotton. Section 19.00(a)(3) governs Commission delegated authority to
the DMO Director to issue special calls for Series `04 reports (cash
market positions of large traders in cotton and grains). The Commission
is amending its delegation of authority in Sec. 19.00(a)(3) to remove
the DMO Director from its list of delegates and to delegate such
authority to the DOE Director, or such other employee or employees as
the Director may designate from time to time. The Commission is also
deleting the Dodd-Frank Act reference from the part 19 statutory
authority citation.
G. Part 20
Part 20 of the Commission's regulations governs large trader
reporting for physical commodity swaps. Section 20.8 governs Commission
delegated authority to the DMO Director to: Issue special calls for
certain forms, books and records; determine the form and manner of
reporting; and determine compliance schedules. The Commission is
amending its delegation of authority in Sec. 20.8 to remove the DMO
Director as its delegate for issuing Sec. 20.6(d) special calls for
books and records, and to delegate such authority to the DOE Director,
or such other employee or employees as the Director may designate from
time to time. The Commission is also amending its Sec. 20.8 delegation
of authority to remove the DMO Director as its delegate for issuing
Sec. 20.5 requests for 102S and 40S filings, and to delegate such
authority to the ODT Director, in consultation with the DMO Director,
or such other employee or employees as the Directors each may designate
from time to time. Finally, the Commission is amending its Sec. 20.8
delegation of authority to remove the DMO Director as its delegate for
determining the form and coding structure of reporting in Sec. 20.7,
and will delegate such authority to the ODT Director, with the
concurrence of the DMO Director, or such other employee or employees as
the Directors each may designate from time to time. Finally, the
Commission is also making typographical corrections to the time
formatting in Sec. 20.5, and deleting the Dodd-Frank Act reference
from the part 20 statutory authority citation.
H. Part 21
Part 21 of the Commission's regulations governs various types of
Commission special calls. Section 21.05 particularly governs Commission
delegated authority to the DMO Director to issue special calls for
information on certain controlled accounts and open interest contracts
in certain accounts. The Commission is amending its delegation of
authority in Sec. 21.05 to remove the DMO Director from its list of
delegates and to delegate such authority to the DOE Director, or such
other employee or employees as the Director may designate from time to
time. The Commission is also deleting the Dodd-Frank Act reference from
the part 21 statutory authority citation.
I. Part 48
Part 48 of the Commission's regulations governs the registration of
FBOTs. The Commission is amending the part 48 rules to add a new Sec.
48.11 that addresses delegations of authority to DMO. Section 48.11
will address delegations with respect to the following provisions:
1. Section 48.7 governs FBOT requirements for registration. The
Commission is delegating authority, pursuant to Sec. 48.7, for the DMO
Director and his designated staff to request additional information and
documentation in connection with an application for registration.
2. Section 48.9 governs the revocation of an FBOT's registration.
The Commission is delegating authority,
[[Page 28765]]
pursuant to Sec. 48.9(a)(1) and (c), for the DMO Director and his
designated staff to: (i) Notify an FBOT that, pursuant to Sec.
48.9(a)(1), the registered FBOT or the clearing organization has failed
to satisfy any registration requirements or conditions for
registration; and (ii) pursuant to Sec. 48.9(c), request that the FBOT
file a written demonstration, containing such supporting data,
information, and documents, in such form and manner and within such
timeframe as the Commission may specify, that the foreign board of
trade or clearing organization is in compliance with the registration
requirements and/or conditions for registration.
3. Section 48.10 requires that FBOTs that wish to make additional
contracts available to trade by members or participants located in the
United States with direct access to the FBOT's trade-matching system
must submit to the Commission a written request before offering the
additional contracts in the U.S. The FBOT can offer the additional
contracts for trading 10 business days after the Commission receives
the FBOT's written request unless the Commission notifies the FBOT that
additional time is needed to complete its review of policy or other
issues pertinent to the additional contracts. The Commission is
delegating authority, under Sec. 48.10, for the DMO Director and his
designated staff to, within the 10-day review period, notify an FBOT
whether additional time is needed to complete its review of policy or
other issues pertinent to the additional contracts, or that the
contract can be made available for trading by direct access.
J. Part 140
Part 140 of the Commission's regulations governs organization,
functions and procedures of the Commission. The Commission is making
the following amendments to the part 140 regulations.
1. Section 140.72, pertaining to delegation of authority to
disclose confidential information to a registered entity, swap
execution facility, swap data repository, registered futures
association or self-regulatory organization.
Currently, Sec. 140.72 delegates authority directly to the various
Commission Division directors and certain identified senior staff
positions to disclose confidential information. The Commission is
amending its delegation of authority in Sec. 140.72(a) to delegate
authority to Division directors and their designated staff members.
2. Section 140.73, pertaining to delegation of authority to
disclose information to United States, states, and foreign government
agencies and foreign futures authorities.
Currently, Sec. 140.73 delegates authority directly to the various
Commission Division directors and certain identified senior staff
positions to disclose confidential information. The Commission is
amending its delegation of authority in Sec. 140.72(a) to delegate
authority to Division directors and their designated staff members.
3. Section 140.74, pertaining to delegation of authority to issue
special calls for series 03 reports and Form 40.
The Commission is amending Sec. 140.74 to remove the delegation of
authority to the DMO Director, and to delegate such authority to the
DOE Director, or such other employee or employees as the Director may
designate from time to time, for issuing special calls for series 03
reports. The Commission is also amending Sec. 140.74 to delete a
duplicate rule provision regarding authority to issue special calls for
Form 40.
4. Section 140.97, pertaining to delegation of authority regarding
requests for classification of positions as bona fide hedging.
The Commission is amending Sec. 140.97 to remove the delegation of
authority to the DMO Director, and to delegate such authority to the
DOE Director, or such other employee or employees as the Director may
designate from time to time.
K. Part 150
Part 150 of the Commission's regulations governs limits on
positions. Sections 150.3(b) and 150.4(e) govern Commission delegated
authority to the DMO Director to issue calls for information related to
claims of exemptions from positions limits, certain position, trading
and business relationship information, and to determine the form,
coding structure and transmission procedures for submitting data. The
Commission is amending its special call delegation of authority in
Sec. Sec. 150.3(b) and 150.4(e) to remove the DMO Director from its
list of delegates and to delegate such authority to the DOE Director,
or such other employee or employees as the Director may designate from
time to time. The Commission is also amending its form and manner
delegation of authority in Sec. 150.4(e) to remove the DMO Director
from its list of delegates and to delegate such authority to the ODT
Director, with the concurrence of the DOE Director, or such other
employee or employees as the Directors each may designate from time to
time. The Commission is also deleting the Dodd-Frank Act reference from
the part 150 statutory authority citation.
III. Administrative Compliance
A. Administrative Procedure Act
The Administrative Procedure Act (``APA'') \5\ generally requires a
Federal agency to publish notice of a proposed rulemaking in the
Federal Register and to allow opportunity for public comment before
promulgating a final rule.\6\ This requirement does not apply, however,
to ``rules of agency organization, procedure, or practice.'' \7\ This
final rule makes conforming amendments to various Commission
regulations to reflect the recent organizational restructuring at the
Commission, including corresponding updates to Commission delegations
of authority to staff, which changes fit squarely into the category of
``rules of agency organization, procedure, or practice.'' \8\ This
final rule also corrects typographical errors and outdated statutory
references, which have no impact on substantive rights or obligations
under the CEA and are entirely ministerial and procedural in nature.
Therefore, this rulemaking is excepted from the public rulemaking
provisions of the APA.\9\ Conforming amendments to certain delegations
of authority to reflect organizational changes, updating of relevant
statutory authority and other technical corrections, will not cause any
party to undertake new or additional efforts to comply with the
regulations as revised. This final rule shall become effective upon
publication in the Federal Register.
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\5\ 5 U.S.C. 551 et seq.
\6\ 5 U.S.C. 553.
\7\ 5 U.S.C. 553(b)(A). Notice or hearing is not required in
these circumstances by the Commodity Exchange Act, 7 U.S.C. 1 et
seq.
\8\ Id.
\9\ 5 U.S.C. 553(b).
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B. Regulatory Flexibility Act
The Regulatory Flexibility Act requires the Commission to consider
whether the regulations it adopts will have a significant economic
impact on a substantial number of small entities.\10\ The Commission is
obligated to conduct a regulatory flexibility analysis for any rule for
which the agency publishes a general notice of proposed rulemaking
pursuant to section 553(b) of the APA.\11\ However, this rulemaking is
excepted from the public rulemaking provisions
[[Page 28766]]
of the APA.\12\ Accordingly, the Commission is not obligated to conduct
a regulatory flexibility analysis for this rulemaking.
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\10\ See 5 U.S.C. 601 et seq.
\11\ 5 U.S.C. 601(2).
\12\ 5 U.S.C. 553(b)(A) (``rules of agency organization,
procedure, or practice''); 5 U.S.C. 553(b)(B) (``agency for good
cause finds . . . that notice and public procedure thereon are . . .
unnecessary . . . .'').
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C. Paperwork Reduction Act
The Commission may not conduct or sponsor, and a respondent is not
required to respond to, a collection of information contained in a
rulemaking unless the information collection displays a currently valid
control number issued by the Office of Management and Budget (``OMB'')
pursuant to the Paperwork Reduction Act.\13\ This rulemaking contains
no collection of information that obligates the Commission to obtain a
control number from OMB.
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\13\ See 44 U.S.C. 3501 et seq.
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D. Cost-Benefit Considerations
1. Introduction
Section 15(a) of the CEA requires the Commission to consider the
costs and benefits of its actions before promulgating a regulation
under the CEA or issuing certain orders.\14\ Section 15(a) further
specifies that the costs and benefits shall be evaluated in light of
five broad areas of market and public concern: (1) Protection of market
participants and the public; (2) efficiency, competitiveness, and
financial integrity of futures markets; (3) price discovery; (4) sound
risk management practices; and (5) other public interest
considerations. The Commission considers the costs and benefits
resulting from its discretionary determinations with respect to the
section 15(a) factors.
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\14\ 7 U.S.C. 19(a).
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The Commission is amending its delegations of authority in
Sec. Sec. 5.20(d), 11.2(a), 16.07, 18.03, 19.00(a)(3), 20.8, 21.05,
140.72(a), 140.73, 140.74, 140.97, 150.3(b) and 150.4(c), and in part
48. The Commission is also amending certain statutory citations in, and
making limited technical and typographical corrections to parts 5, 11,
16, 18, 19, 20, 21, 140, and 150. For assessing whether and to what
extent costs or benefits are likely to flow from the amendments, the
Commission is using the CEA and related regulations that currently
instruct market participants as to which delegated authorities may ask
for and receive requested information. The proposed amendments do not
change the status quo.
2. Costs
There are no costs to the industry or the public associated with
the amendments to certain Commission delegations of authority,
regulation statutory citations, or typographical errors in the
regulations.
3. Benefits
The Commission believes that market participants and the public
will benefit from these ministerial rule amendments since the updated
delegations of authority will reflect the Commission's ``mission to
identify and prosecute violations of law and regulation'' and ``foster
increased efficiencies through knowledge sharing and cross training
under unified leadership; thus benefitting the Commission's
surveillance mission and enforcement responsibilities.'' \15\ The
amendments will also benefit market participants and the public by
eliminating outdated statutory authority references in the regulation
text and making limited technical and typographical corrections.
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\15\ See Remarks of Acting Chairman J. Christopher Giancarlo
before the 42nd Annual International Futures Industry Conference in
Boca Raton, FL, CFTC: A New Direction Forward (March 15, 2017)
available at http://www.cftc.gov/PressRoom/SpeechesTestimony/opagiancarlo-20.
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4. Section 15(a) Factors
Protection of market participants and the public. The Commission
believes that correcting minor technical and typographical errors in
certain parts of its rules and updating certain delegations of
authority to accurately reflect recent organizational changes advances
its mission to protect market participants and the public.
Efficiency, competitiveness, and financial integrity of futures
markets. The Commission believes that the amendments will not
materially affect the efficiency, competitiveness, and financial
integrity of futures markets because the rule changes are ministerial
and do not affect the operations of markets.
Price discovery. The Commission believes that the amendments will
not materially affect the price discovery process because the rule
changes are ministerial and do not affect the operations of markets.
Sound risk management practices. The Commission believes that the
amendments will not materially affect sound risk management practices
because the rule changes are ministerial and do not affect how market
participants conduct risk management.
Other public interest considerations. The Commission has not
identified any other public interest consideration.
List of Subjects
17 CFR Part 5
Commodity futures, Consumer protection, Foreign currencies, Off-
exchange transactions, Reporting and recordkeeping requirements,
Securities, Trade practices.
17 CFR Part 11
Administrative practice and procedure, Investigations.
17 CFR Part 16
Contract markets, Reporting and recordkeeping requirements, Swap
execution facilities.
17 CFR Part 17
Brokers, Clearing members, Foreign brokers, Futures commission
merchants, Reporting and recordkeeping requirements, Reporting markets.
17 CFR Part 18
Reporting and recordkeeping requirements, Traders.
17 CFR Part 19
Bona fide hedge positions, Cotton, Grains, Merchants and dealers,
Reporting and recordkeeping requirements.
17 CFR Part 20
Administrative practice and procedure, Large traders, Physical
commodity swaps, Reporting and recordkeeping requirements.
17 CFR Part 21
Brokers, Reporting and recordkeeping requirements, Special calls.
17 CFR Part 48
Foreign boards of trade, Registration requirements, Reporting and
recordkeeping requirements.
17 CFR Part 140
Authority delegations (government agencies), Conflicts of interest,
Organization and functions (government agencies).
17 CFR Part 150
Cotton, Grains, Position limits.
For the reasons stated in the preamble, the Commodity Futures
Trading Commission amends 17 CFR chapter I as set forth below:
PART 5--OFF-EXCHANGE FOREIGN CURRENCY TRANSACTIONS
0
1. The authority citation for part 5 is revised to read as follows:
Authority: 7 U.S.C. 1a, 2, 6, 6a, 6b, 6c, 6d, 6e, 6f, 6g, 6h,
6i, 6k, 6m, 6n, 6o, 8, 9, 9a, 12, 12a, 13b, 13c, 16a, 18, 19, 21,
and 23.
[[Page 28767]]
0
2. In Sec. 5.20, revise paragraph (d) to read as follows:
Sec. 5.20 Special calls for account and transaction information.
* * * * *
(d) Delegation of authority to the Director of the Division of Swap
Dealer and Intermediary Oversight and the Director of the Division of
Enforcement. The Commission hereby delegates, until the Commission
orders otherwise, to the Director of the Division of Swap Dealer and
Intermediary Oversight and the Director of the Division of Enforcement,
or to the respective Director's designees, the authority set forth in
this section to make special calls for information on controlled
accounts from retail foreign exchange dealers, futures commission
merchants and from introducing brokers, and to make special calls for
information on open contracts in accounts carried or introduced by
futures commission merchants, introducing brokers, and foreign brokers.
Either Director may submit to the Commission for its consideration any
matter that has been delegated pursuant to this section. Nothing in
this section shall be deemed to prohibit the Commission, at its
election, from exercising the authority delegated in this section to
the Directors.
PART 11--RULES RELATING TO INVESTIGATIONS
0
3. The authority citation for part 11 is revised to read as follows:
Authority: 7 U.S.C. 4a(j), 9, 12, 12a(5) and 15.
0
4. In Sec. 11.2, revise paragraph (a) to read as follows:
Sec. 11.2 Authority to conduct investigations.
(a) The Director of the Division of Enforcement and members of the
Commission staff acting pursuant to his authority and under his
direction may conduct such investigations as he deems appropriate to
determine whether any persons have violated, are violating, or are
about to violate the provisions of the Commodity Exchange Act, as
amended, or the rules, regulations or orders adopted by the Commission
pursuant to that Act, or, in accordance with the provisions of section
12(f) of the Act, whether any persons have violated, are violating or
are about to violate the laws, rules or regulations relating to futures
or options matters administered or enforced by a foreign futures
authority, or whether an applicant for registration or designation
meets the requisite statutory criteria. For this purpose, the Director
may obtain evidence through voluntary statements and submissions,
through exercise of inspection powers over boards of trade, reporting
traders, and persons required by law to register with the Commission,
or when authorized by order of the Commission, through the issuance of
subpoenas. The Director shall report to the Commission the results of
his investigations and recommend to the Commission such enforcement
action as he deems appropriate.
* * * * *
PART 16--REPORTS BY CONTRACT MARKETS AND SWAP EXECUTION FACILITIES
0
5. The authority citation for part 16 is revised to read as follows:
Authority: 7 U.S.C. 2, 6a, 6c, 6g, 6i, 7, and 7b-3.
0
6. Revise Sec. 16.07 to read as follows:
Sec. 16.07 Delegation of authority to the Director of the Office of
Data and Technology and to the Director of the Division of Market
Oversight.
(a) The Commission hereby delegates, until the Commission orders
otherwise, the authority set forth in paragraphs (b) and (c) of this
section to the Director of the Office of Data and Technology, with the
concurrence of the Director of the Division of Market Oversight, or
such other employee or employees as the Directors each may designate
from time to time. The Commission hereby delegates, until the
Commission orders otherwise, the authority set forth in paragraph (d)
of this section to the Director of the Division of Market Oversight, to
be exercised by such Director or by such other employee or employees of
such Director as may be designated from time to time by the Director.
The Directors may submit to the Commission for its consideration any
matter which has been delegated in this paragraph. Nothing in this
paragraph prohibits the Commission, at its election, from exercising
the authority delegated in this paragraph.
(b) Pursuant to Sec. Sec. 16.00(b) and 16.01(d), as applicable,
the authority to, with the concurrence of the Director of the Division
of Market Oversight or the Director's delegate, determine whether
reporting markets must submit data in hard copy, and the time that such
data may be submitted where the Director determines that a reporting
market is unable to meet the requirements set forth in the regulations.
(c) Pursuant to Sec. Sec. 16.00(b)(1), 16.01(d)(1), and 16.06, the
authority to, with the concurrence of the Director of the Division
Market Oversight or the Director's delegate, approve the format, coding
structure and electronic data transmission procedures used by reporting
markets.
(d) Pursuant to Sec. 16.02, the authority to determine the
specific content of any daily trade and supporting data report, request
that such reports be accompanied by data that identifies or facilitates
the identification of each trader for each transaction or order
included in a submitted trade and supporting data report, and establish
the time for the submission of and the manner and format of such
reports.
PART 17--REPORTS BY REPORTING MARKETS, FUTURES COMMISSION
MERCHANTS, CLEARING MEMBERS, AND FOREIGN BROKERS
0
7. The authority citation for part 17 is revised to read as follows:
Authority: 7 U.S.C. 2, 6a, 6c, 6d, 6f, 6g, 6i, 6t, 7, 7a, and
12a.
0
8. In Sec. 17.02, revise paragraphs (b)(2)(i) and (ii) and (c)(2)(i)
and (ii) to read as follows:
Sec. 17.02 Form, manner and time of filing reports.
* * * * *
(b) * * *
(2) * * *
(i) The applicable reporting party shall submit a completed Form
102 to the Commission no later than 9 a.m. on the business day
following the date on which the special account becomes reportable, or
on such other date as directed by special call of the Commission or its
designee, and as periodically required thereafter by paragraphs (b)(3)
and (4) of this section. Such form shall include all required
information, including the names of the owner(s) and controller(s) of
each trading account that is not an omnibus account, and that comprises
a special account reported on the form, provided that, with respect to
such owners(s) and controller(s), information other than the names of
such parties may be reported in accordance with the instructions and
schedule set forth in paragraph (b)(2)(ii) of this section. Unless
otherwise specified by the Commission or its designee, the stated time
is Eastern Time for information concerning markets located in that time
zone, and Central Time for information concerning all other markets.
(ii) With respect to the owner(s) and controller(s) of each trading
account that is not an omnibus account, and that comprises a special
account reported on Form 102, information other than the names of such
parties must be provided on Form 102 no later than 9 a.m. on the third
business day following the date on which the special account becomes
[[Page 28768]]
reportable, or on such other date as directed by special call of the
Commission or its designee, and as periodically required thereafter by
paragraphs (b)(3) and (4) of this section. Unless otherwise specified
by the Commission or its designee, the stated time is Eastern Time for
information concerning markets located in that time zone, and Central
Time for information concerning all other markets.
* * * * *
(c) * * *
(2) * * *
(i) The clearing member shall submit a completed Form 102 to the
Commission no later than 9 a.m. on the business day following the date
on which the volume threshold account becomes reportable, or on such
other date as directed by special call of the Commission or its
designee, and as periodically required thereafter by paragraphs (c)(3)
and (4) of this section. Such form shall include all required
information, including the names of the owner(s) and controller(s) of
each volume threshold account reported on the form that is not an
omnibus account, provided that, with respect to such owners(s) and
controller(s), information other than the names of such parties may be
reported in accordance with the instructions and schedule set forth in
paragraph (c)(2)(ii) of this section. Unless otherwise specified by the
Commission or its designee, the stated time is Eastern Time for
information concerning markets located in that time zone, and Central
Time for information concerning all other markets.
(ii) With respect to the owner(s) and controller(s) of each volume
threshold account reported on Form 102 that is not an omnibus account,
information other than the names of such parties must be provided on
Form 102 no later than 9 a.m. on the third business day following the
date on which the volume threshold account becomes reportable, or on
such other date as directed by special call of the Commission or its
designee, and as periodically required thereafter by paragraphs (c)(3)
and (4) of this section. Unless otherwise specified by the Commission
or its designee, the stated time is Eastern Time for information
concerning markets located in that time zone, and Central Time for
information concerning all other markets.
* * * * *
0
9. In Sec. 17.03, revise paragraphs (e), (f), and (g) and add
paragraph (h) to read as follows:
Sec. 17.03 Delegation of authority to the Director of the Office of
Data and Technology or the Director of the Division of Market
Oversight.
* * * * *
(e) Pursuant to Sec. 17.01(c), the authority shall be designated
to the Director of the Office of Data and Technology, in consultation
with the Director of the Division of Market Oversight, or such other
employee or employees as the Directors each may designate from time to
time, to make special calls on Form 71 for omnibus volume threshold
account originators and omnibus reportable sub-account originators
information as set forth in Sec. 17.01(c).
(f) Pursuant to Sec. 17.01(e), the authority shall be designated
to the Director of the Office of Data and Technology, in consultation
with the Director of the Division of Market Oversight, or such other
employee or employees as the Directors each may designate from time to
time, to request information required to be filed by futures commission
merchants, clearing members, foreign brokers, and reporting markets as
set forth in Sec. 17.01.
(g) Pursuant to Sec. 17.02(b)(4), the authority shall be
designated to the Director of the Division of Market Oversight to
determine the date on which each futures commission merchant, clearing
member, or foreign broker shall update or otherwise resubmit every Form
102 that it has submitted to the Commission for each of its special
accounts.
(h) Pursuant to Sec. 17.02(c)(4), the authority shall be
designated to the Director of the Division of Market Oversight to
determine the date on which each clearing member shall update or
otherwise resubmit every Form 102 that it has submitted to the
Commission for each of its volume threshold accounts.
PART 18--REPORTS BY TRADERS
0
10. The authority citation for part 18 is revised to read as follows:
Authority: 7 U.S.C. 2, 4, 5, 6a, 6c, 6f, 6g, 6i, 6k, 6m, 6n, 6t,
12a, and 19.
0
11. Revise Sec. 18.03 to read as follows:
Sec. 18.03 Delegation of authority.
(a) The Commission hereby delegates, until the Commission orders
otherwise, the authority to make special calls on traders for
information as set forth in Sec. Sec. 18.00 and 18.05 to the Director
of the Division of Enforcement, or such other employee or employees as
the Director may designate from time to time.
(b) The Commission hereby delegates, until the Commission orders
otherwise, the authority to make special calls for information as set
forth in Sec. 18.04 to the Director of the Office of Data and
Technology to be exercised by the Director, in consultation with the
Director of the Division of Market Oversight, or such other employee or
employees as the Directors each may designate from time to time.
(c) The Directors of the Division of Enforcement and Office of Data
and Technology may submit to the Commission for its consideration any
matter which has been delegated in this section.
(d) Nothing in this section prohibits the Commission, at its
election, from exercising the authority delegated in this section.
PART 19--REPORTS BY PERSONS HOLDING BONA FIDE HEDGE POSITIONS
PURSUANT TO Sec. 1.3(z) OF THIS CHAPTER AND BY MERCHANTS AND
DEALERS IN COTTON
0
12. The authority citation for part 19 is revised to read as follows:
Authority: 7 U.S.C. 6g(a), 6i, and 12a(5).
0
13. In Sec. 19.00, revise paragraph (a)(3) to read as follows:
Sec. 19.00 General provisions.
(a) * * *
(3) All persons holding or controlling positions for future
delivery that are reportable pursuant to Sec. 15.00(p)(1) of this
chapter who have received a special call for series `04 reports from
the Commission or its designee. Filings in response to a special call
shall be made within one business day of receipt of the special call
unless otherwise specified in the call. For the purposes of this
paragraph, the Commission hereby delegates to the Director of the
Division of Enforcement, or such other employee or employees as the
Director may designate from time to time, authority to issue calls for
series `04 reports.
* * * * *
PART 20--LARGE TRADER REPORTING FOR PHYSICAL COMMODITY SWAPS
0
14. The authority citation for part 20 is revised to read as follows:
Authority: 7 U.S.C. 1a, 2, 5, 6, 6a, 6c, 6f, 6g, 6t, 12a, 19.
0
15. In Sec. 20.5, revise paragraphs (a)(4) and (b) to read as follows:
Sec. 20.5 Series S filings.
(a) * * *
(4) Change updates. If any change causes the information filed by a
clearing member or swap dealer on a Form 102 for a consolidated account
to
[[Page 28769]]
no longer be accurate, then such clearing member or swap dealer shall
file an updated Form 102 with the Commission no later than 9 a.m. on
the business day after such change occurs, or on such other date as
directed by special call of the Commission, provided that, a clearing
member or swap dealer may stop providing change updates for a Form 102
that it has submitted to the Commission for any consolidated account
upon notifying the Commission or its designee that the account in
question is no longer reportable as a consolidated account and has not
been reportable as a consolidated account for the past six months.
Unless otherwise specified by the Commission or its designee, the
stated time is Eastern Time for information concerning markets located
in that time zone, and Central Time for information concerning all
other markets.
* * * * *
(b) 40S filing. Every person subject to books or records
requirement under Sec. 20.6 shall after a special call upon such
person by the Commission file with the Commission a 40S filing at such
time and place as directed in the call. A 40S filing shall consist of
the submission of a Form 40, which shall be completed by such person as
if any references to futures or option contracts were references to
paired swaps or swaptions as defined in Sec. 20.1.
0
16. Revise Sec. 20.8 to read as follows:
Sec. 20.8 Delegation of authority.
(a) The Commission hereby delegates, until it orders otherwise, to
the Director of the Division of Enforcement, or such other employee or
employees as the Director may designate from time to time, the
authority in Sec. 20.6(d) for issuing a special call.
(b) The Commission hereby delegates, until it orders otherwise, to
the Director of the Division of Market Oversight or such other employee
or employees as the Director may designate from time to time, the
authority in Sec. 20.10 for determining the described compliance
schedules.
(c) The Commission hereby delegates, until it orders otherwise, to
the Director of the Office of Data and Technology, in consultation with
the Director of the Division of Market Oversight, or such other
employee or employees as the Directors each may designate from time to
time, the authority:
(1) In Sec. 20.5(a)(3) for issuing a special call for a 102S
filing; and
(2) In Sec. 20.5(b) for issuing a special call for a 40S filing.
(d) The Commission hereby delegates, until it orders otherwise, to
the Director of the Office of Data and Technology, with the concurrence
of the Director of the Division of Market Oversight, or such other
employee or employees as the Directors each may designate from time to
time, the authority, in Sec. 20.7, for providing instructions or
determining the format, coding structure, and electronic data
transmission procedures for submitting data records and any other
information required under this part.
(e) The Directors of the Division of Enforcement, Division of
Market Oversight, and the Office of Data and Technology may submit to
the Commission for its consideration any matter which has been
delegated in this section.
(f) Nothing in this section prohibits the Commission, at its
election, from exercising the authority delegated in this section.
PART 21--SPECIAL CALLS
0
17. The authority citation for part 21 is revised to read as follows:
Authority: 7 U.S.C. 1a, 2, 2a, 4, 6a, 6c, 6f, 6g, 6i, 6k, 6m,
6n, 7, 7a, 12a, 19 and 21.
0
18. Revise Sec. 21.05 to read as follows:
Sec. 21.05 Delegation of authority.
The Commission hereby delegates, until the Commission orders
otherwise, the special call authority set forth in Sec. Sec. 21.01 and
21.02 to the Director of the Division of Enforcement, or such other
employee or employees as the Director may designate from time to time.
The Director of the Division of Enforcement may submit to the
Commission for its consideration any matter which has been delegated in
this paragraph. Nothing in this section shall be deemed to prohibit the
Commission, at its election, from exercising the authority delegated in
this section.
PART 48--REGISTRATION OF FOREIGN BOARDS OF TRADE
0
19. The authority citation for part 48 continues to read as follows:
Authority: 7 U.S.C. 5, 6 and 12a, unless otherwise noted.
0
20. Add Sec. 48.11 to read as follows:
Sec. 48.11 Delegation of authority.
(a) The Commission hereby delegates, until it orders otherwise, to
the Director of the Division of Market Oversight, or such other
employee or employees as the Director may designate from time to time,
the authority:
(1) In Sec. 48.7, to request additional information and
documentation in connection with an application for registration;
(2) In Sec. 48.9(a)(1), to notify a registered foreign board of
trade that it or the clearing organization has failed to satisfy any
registration requirements or conditions for registration;
(3) In Sec. 48.9(c), to request that a registered foreign board of
trade file with the Commission a written demonstration, containing such
supporting data, information, and documents, in such form and manner
and within such timeframe as the Commission may specify, that the
foreign board of trade or clearing organization is in compliance with
the registration requirements and/or conditions for registration; and
(4) In Sec. 48.10, to notify a foreign board of trade whether
additional time is needed for staff to complete its review of policy or
other issues pertinent to the additional contracts, or that the
contract can be made available for trading by direct access.
(b) The Director of the Division of Market Oversight may submit to
the Commission for its consideration any matter which has been
delegated in this section.
(c) Nothing in this section prohibits the Commission, at its
election, from exercising the authority delegated in this section.
PART 140--ORGANIZATION, FUNCTIONS, AND PROCEDURES OF THE COMMISSION
0
21. The authority citation for part 140 continues to read as follows:
Authority: 7 U.S.C. 2(a)(12), 12a, 13(c), 13(d), 13(e), and
16(b).
0
22. In Sec. 140.72, revise paragraph (a) to read as follows:
Sec. 140.72 Delegation of authority to disclose confidential
information to a registered entity, swap execution facility, swap data
repository, registered futures association or self-regulatory
organization.
(a) Pursuant to the authority granted under sections 2(a)(11),
8a(5) and 8a(6) of the Act, the Commission hereby delegates, until such
time as the Commission orders otherwise, to the Executive Director, the
Director of the Division of Swap Dealer and Intermediary Oversight, the
Director of the Division of Clearing and Risk, the Chief Accountant,
the General Counsel, the Director of the Division of Market Oversight,
the Director of the Division of Enforcement, the Chief Economist of the
Office of the Chief Economist, the Director of the Office of
International Affairs, or such other employee or employees as the
General Counsel, Directors, Chief Accountant or Chief Economist each
may designate from
[[Page 28770]]
time to time, the authority to disclose to an official of any
registered entity, swap execution facility, swap data repository,
registered futures association, or self-regulatory organization as
defined in section 3(a)(26) of the Securities Exchange Act of 1934, any
information necessary or appropriate to effectuate the purposes of the
Act, including, but not limited to, the full facts concerning any
transaction or market operation, including the names of the parties
thereto. This authority to disclose shall be based on a determination
that the transaction or market operation disrupts or tends to disrupt
any market or is otherwise harmful or against the best interests of
producers, consumers, or investors or that disclosure is necessary or
appropriate to effectuate the purposes of the Act.
* * * * *
0
23. In Sec. 140.73, revise paragraph (a) introductory text to read as
follows:
Sec. 140.73 Delegation of authority to disclose information to
United States, States, and foreign government agencies and foreign
futures authorities.
(a) Pursuant to sections 2(a)(11), 8a(5) and 8(e) of the Act, the
Commission hereby delegates, until such time as the Commission orders
otherwise, to the General Counsel, the Director of the Division of
Enforcement, the Director of the Division of Market Oversight, the
Director of the Division of Swap Dealer and Intermediary Oversight, the
Director of the Division of Clearing and Risk, the Chief Economist of
the Office of the Chief Economist, the Director of the Office of
International Affairs, or such other employee or employees as the
General Counsel, Chief Economist or Directors listed in this section
each may designate from time to time the authority to furnish
information in the possession of the Commission obtained in connection
with the administration of the Act, upon written request, to:
* * * * *
0
24. Revise Sec. 140.74 to read as follows:
Sec. 140.74 Delegation of authority to issue special calls for
Series 03 Reports.
(a) The Commodity Futures Trading Commission hereby delegates,
until such time as the Commission orders otherwise, to the Director of
the Division of Enforcement, or such other employee or employees as the
Director may designate from time to time, the authority to issue
special calls for series 03 reports under Sec. 18.00 of this chapter.
(b) The Director of the Division of Enforcement may submit any
matter which has been delegated to the Director under this section to
the Commission for its consideration.
(c) Nothing in this section may prohibit the Commission, at its
election, from exercising the authority delegated to the Director of
the Division of Enforcement under paragraph (a) of this section.
0
25. Revise Sec. 140.97 to read as follows:
Sec. 140.97 Delegation of authority regarding requests for
classification of positions as bona fide hedging.
(a) The Commodity Futures Trading Commission hereby delegates,
until such time as the Commission orders otherwise, to the Director of
the Division of Enforcement, or such other employee or employees as the
Director may designate from time to time, all functions reserved to the
Commission in Sec. Sec. 1.47 and 1.48 of this chapter.
(b) The Director of the Division of Enforcement may submit any
matter which has been delegated to the Director under paragraph (a) of
this section to the Commission for its consideration.
(c) Nothing in this section may prohibit the Commission, at its
election, from exercising the authority delegated to the Director of
the Division of Enforcement under paragraph (a) of this section.
PART 150--LIMITS ON POSITIONS
0
26. The authority citation for part 150 is revised to read as follows:
Authority: 7 U.S.C. 6a, 6c, and 12a(5).
0
27. In Sec. 150.3, revise paragraph (b) to read as follows:
Sec. 150.3 Exemptions.
* * * * *
(b) Call for information. Upon call by the Commission or the
Director of the Division of Enforcement, or such other employee or
employees as the Director may designate from time to time, any person
claiming an exemption from speculative position limits under this
section must provide to the Commission or the Division of Enforcement
such information as specified in the call relating to the positions
owned or controlled by that person; trading done pursuant to the
claimed exemption; the futures, options or cash market positions which
support the claim of exemption; and the relevant business relationships
supporting a claim of exemption.
0
28. In Sec. 150.4, revise paragraph (e) to read as follows:
Sec. 150.4 Aggregation of positions.
* * * * *
(e) Delegation of authority. (1) The Commission hereby delegates,
until it orders otherwise, to the Director of the Division of
Enforcement, or such other employee or employees as the Director may
designate from time to time, the authority:
(i) In paragraph (b)(8)(iv) of this section to call for additional
information from a person claiming the exemption in paragraph (b)(8) of
this section.
(ii) In paragraph (c)(3) of this section to call for additional
information from a person claiming an aggregation exemption under this
section.
(2) The Commission hereby delegates, until it orders otherwise, to
the Director of the Office of Data and Technology, with the concurrence
of the Director of the Division of Enforcement, or such other employee
or employees as the Directors each may designate from time to time, the
authority in paragraph (d) of this section to provide instructions or
determine the format, coding structure, and electronic data
transmission procedures for submitting data records and any other
information required under this part.
(3) The Directors of the Division of Enforcement and the Office of
Data and Technology may submit to the Commission for its consideration
any matter which has been delegated in this section.
(4) Nothing in this section prohibits the Commission, at its
election, from exercising the authority delegated in this section.
Issued in Washington, DC, on June 20, 2017, by the Commission.
Christopher J. Kirkpatrick,
Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Commission Delegated Authority Provisions and Technical
Amendments--Commission Voting Summary
On this matter, Acting Chairman Giancarlo and Commissioner Bowen
voted in the affirmative. No Commissioner voted in the negative.
[FR Doc. 2017-13243 Filed 6-23-17; 8:45 am]
BILLING CODE 6351-01-P
Last Updated: June 26, 2017