2019-08397
Federal Register, Volume 84 Issue 81 (Friday, April 26, 2019)
[Federal Register Volume 84, Number 81 (Friday, April 26, 2019)]
[Notices]
[Pages 17811-17814]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08397]
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COMMODITY FUTURES TRADING COMMISSION
Privacy Act of 1974; System of Records
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of a modified system of records.
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SUMMARY: In accordance with the requirements of the Privacy Act of
1974, as amended, the Commodity Futures Trading Commission (CFTC or
Commission) is republishing existing SORN: National Futures Association
(NFA) Applications Suite System, CFTC-12. The modification will add two
routine uses, clarify existing routine uses, and bring the SORN in
compliance with the Office of Management and Budget (OMB) Circular A-
108 SORN template. The two new routine uses pertain to sharing
information to mitigate a breach and are required by OMB Memorandum 17-
12. Other updates include identifying the specific routine uses
applicable to the system of records rather than relying on CFTC's
previously published blanket routine uses, and administrative updates
to comply with the OMB Circular A-108 SORN template format.
DATES: Comments must be received on or before May 28, 2019. This action
will be effective without further notice on May 28, 2019, unless
revised pursuant to comments received.
ADDRESSES: You may submit comments identified as pertaining to
``National Futures Association Applications Suite System'' by any of
the following methods:
Agency website, via its Comments Online process: https://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
http://www.cftc.gov. You should submit only information that you wish
to make available publicly.
The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse, or remove any or all of a
submission from http://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 notice will be retained in the comment file and will
be considered as required under all applicable laws, and may be
accessible under the FOIA.
FOR FURTHER INFORMATION CONTACT: Melissa Jurgens, Acting Chief Privacy
Officer, 202-418-5516, [email protected], Office of the Executive
Director, Commodity Futures Trading Commission, Three Lafayette Centre,
1155 21st Street NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. National Futures Association
The National Futures Association (NFA) is a not-for-profit
membership corporation formed in 1976 that serves as an industry self-
regulatory organization under Section 17 of the Commodity Exchange Act
(CEA). NFA's formal designation as a ``registered futures association''
was granted by the
[[Page 17812]]
CFTC in 1981 and NFA's regulatory operations began in 1982.
The Commodities Futures Trading Commission (CFTC or Commission) has
delegated to the NFA the authority to perform certain functions and act
as custodian of certain CFTC records to support the CFTC's mission of
protecting market participants and the public from fraud, manipulation,
abusive practices and systemic risk related to futures and swaps
derivatives and to foster transparent, open, competitive and
financially sound markets. The NFA Applications Suite System
(``Applications Suite'') is a collection of the NFA databases and
applications specifically designed to allow NFA to fulfill the mission
and business objectives set forth by the Commission through delegated
authority.
II. The Privacy Act
Under the Privacy Act of 1974, 5 U.S.C. 552a, a ``system of
records'' is defined as any group of records under the control of a
Federal government agency from which information about individuals is
retrieved by name or by some identifying number, symbol, or other
identifying particular assigned to the individual. The Privacy Act
establishes the means by which government agencies must collect,
maintain, and use information about an individual in a government
system of records.
Each government agency is required to publish a notice in the
Federal Register in which the agency identifies and describes each
system of records it maintains, the reasons why the agency uses the
information therein, the routine uses for which the agency will
disclose such information outside the agency, and how individuals may
exercise their rights under the Privacy Act.
In accordance with 5 U.S.C. 552a(r), CFTC has provided a report of
this system of records to the Office of Management and Budget (OMB) and
to Congress.
III. Notice: National Futures Association (NFA) Applications Suite
System, CFTC-12.
SYSTEM NAME AND NUMBER
National Futures Association (NFA) Applications Suite System, CFTC-
12.
SECURITY CLASSIFICATION:
Unclassified.
SYSTEM LOCATION:
This system is located at the National Futures Association, 300 S.
Riverside Plaza, Chicago, IL 60606 and the Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC
20581.
SYSTEM MANAGER(S):
For records held by the Commission related to fitness
investigations and registration: Director, Division of Swap Dealer and
Intermediary Oversight (DSIO), Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
Surveillance Branch Chiefs in the regional offices at 525 West Monroe
Street, Suite 1100, Chicago, IL 60661 and 140 Broadway, 19th Floor, New
York, NY 10005. For records held by the Commission related to
disciplinary action: Director, Division of Market Oversight (DMO),
Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
Street NW, Washington, DC 20581. For records held by NFA contact: Vice
President for Registration, National Futures Association, 300 South
Riverside, Suite 1800, Chicago, Illinois 60606.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
The collection of this information is authorized under The
Commodity Exchange Act, 7 U.S.C. 1, et seq., and the rules and
regulations promulgated thereunder.
PURPOSE(S) OF THE SYSTEM:
The records in this system are used to support the Commission's
registration and other regulatory authority as delegated to NFA. This
involves maintaining fitness investigation and other fitness related
records, including investigatory material compiled for law enforcement
purposes, non-fitness registration records, images of registration
records, information related to disciplinary action taken by the CFTC
and self-regulatory organizations; processing hard copy and electronic
fingerprint cards; and maintaining a web based registration system,
records related to notices of exemption or claims for exemption from
certain CFTC requirements, and financial statements, reports, notices
and other filings that enable NFA and the CFTC to oversee registrant
activities for compliance with legal requirements.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
This system includes information about individuals who have applied
or who may apply for registration as futures commission merchants,
introducing brokers, commodity pool operators, commodity trading
advisors, leverage transaction merchants, swap dealers, major swap
participants, retail foreign exchange dealers and agricultural trade
option merchants (ATOMs); individuals who file notices of exemption or
claims for exemption from certain CFTC requirements; individuals who
are or may become principals (as defined in 17 CFR 3.1); individuals
who have applied or who may apply for registration as associated
persons of the foregoing firms; and floor brokers and floor traders.
This system also includes information about individuals who have been
suspended, expelled, disciplined, or denied access to or by a self-
regulatory organization (SRO), including, but not limited to NFA, or
who have been subject to a CFTC civil or administrative action.
CATEGORIES OF RECORDS IN THE SYSTEM:
This system includes information pertaining to the fitness of the
individuals or firms to engage in business subject to the Commission's
jurisdiction, including but not limited to registration forms,
schedules and supplements, fingerprint cards which are required for
certain individual registrants as provided under CFTC rules,
correspondence relating to registration, fitness investigations, and
reports and memoranda reflecting information developed from various
sources. This system includes investigatory material compiled for law
enforcement purposes whose disclosure the Commission staff has
determined could compromise Commission investigations, or would reveal
the identity of a source who furnished information to the Commission
under an express promise that the identity of the source would be held
in confidence. The system also includes information pertaining to
disciplinary or other adverse action taken by an SRO or the CFTC,
including the name of the person against whom such action was taken,
the action taken, and the reasons. Information submitted by certain
individuals or firms to enable NFA and/or CFTC supervision and
oversight of activities governed by the Commodity Exchange Act, such as
financial statements, reports and notice filings; disclosure documents;
and submissions by swap dealers and major swap participants pursuant to
Commission Regulation 3.10(a)(1)(v)(A) and information developed by the
NFA and/or CFTC related to such information. Additionally, this system
includes information submitted by individuals related to notices of
exemption or claims for exemption from certain CFTC requirements and
information developed by NFA and/or the CFTC related to the notice of
exemption or claim for exemption.
[[Page 17813]]
RECORD SOURCE CATEGORIES:
Sources of the information include the individual or firm on whom
the record is maintained; the individual's employer; individuals filing
reparations complaints or answers; Federal, state and local regulatory
and law enforcement agencies; commodities and securities exchanges;
NFA; Financial Industry Regulatory Authority (FINRA); foreign futures
and securities authorities and INTERPOL; self-regulatory organizations
notifying the Commission of disciplinary or other adverse actions
taken; and other miscellaneous sources.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OF USERS AND THE PURPOSES OF SUCH USES:
NFA may disclose information contained in those portions of this
system of records maintained by NFA, but any such disclosure must be
made in accordance with NFA rules that have been approved by the
Commission or permitted to become effective without Commission
approval. Disclosures must be made under circumstances authorized by
the Commission as consistent with the Commission's regulations and
routine uses.
NFA generally makes available to the public on NFA website(s),
including the Background Affiliation Status Information Center (BASIC),
firm directories, registration forms, business addresses, telephone
numbers, registration categories, biographical supplements (except for
any confidential information on supplementary attachments to the
forms), effective dates of registration, registration status, and
disciplinary action taken concerning futures commission merchants,
introducing brokers, commodity pool operators, commodity trading
advisors, swap dealers, major swap participants and retail foreign
exchange dealers and their associated persons. NFA also will release
records or portions of records to any member of the public if such
records or portions are ``public'' or ``publicly available'' under
Commission Regulations 1.10(g) or 145.0. For information not made
available to the public as explained above, NFA may disclose
information contained in those portions of this system of records
maintained by NFA.
These records and information in these records may be used:
(a) To disclose to any person with whom an applicant or registrant
is or plans to be associated as an associated person or affiliated as a
principal or with whom an individual is or plans on being associated as
a swap associated person;
(b) To disclose to any futures commission merchant or retail
foreign exchange dealer with whom an introducing broker, whether an
applicant or registrant, has or plans to enter into a guarantee
agreement under CFTC Regulation 1.10;
(c) To disclose to boards of trade designated as contract markets
or to any other futures associations registered with the Commission to
assist those organizations in carrying out their responsibilities under
the Act;
(d) To disclose pursuant to an order of a court of competent
jurisdiction; except that, subpoenas and summonses covering non-public
portions of registration records and copies of the non-public records
shall be promptly forwarded to the Commission to enable the Commission
to consult with NFA on how to proceed;
(e) To disclose to the public certain background information about
firms and industry professionals to allow them to understand NFA
membership, CFTC registration status, and relevant background
information;
(f) To disclose in any administrative proceeding before the
Commission, in any injunctive action authorized under the Commodity
Exchange Act, or in any other action or proceeding in which the
Commission or its staff participates as a party or the Commission
participates as amicus curiae;
(g) To disclose to Federal, State, local, territorial, Tribal, or
foreign agencies for use in meeting their statutory or regulatory
requirements;
(h) To disclose to any ``registered entity,'' as defined in section
1a of the Commodity Exchange Act, 7 U.S.C. 1, et seq. (``the Act''), to
the extent disclosure is authorized and will assist the registered
entity in carrying out its responsibilities under the Act. Information
may also be disclosed to any registered futures association registered
under section 17 of the Act to assist it in carrying out its self-
regulatory responsibilities under the Act, and to any national
securities exchange or national securities association registered with
the Securities and Exchange Commission to assist those organizations in
carrying out their self-regulatory responsibilities under the
Securities Exchange Act of 1934, 15 U.S.C. 78a, et seq.;
(i) To disclose to contractors, grantees, volunteers, experts,
students, and others performing or working on a contract, service,
grant, cooperative agreement, or job for the Federal government when
necessary to accomplish an agency function;
(j) To disclose to Congress upon its request, acting within the
scope of its jurisdiction, pursuant to the Commodity Exchange Act, 7
U.S.C. 1 et seq., and the rules and regulations promulgated thereunder;
(k) To disclose to appropriate agencies, entities, and persons when
(1) the Commission suspects or has confirmed that there has been a
breach of the system of records; (2) the Commission has determined that
as a result of the suspected or confirmed breach there is a risk of
harm to individuals, the Commission (including its information systems,
programs, and operations), the Federal Government, or national
security; and (3) the disclosure made to such agencies, entities, and
persons is reasonably necessary to assist in connection with the
Commission's efforts to respond to the suspected or confirmed breach or
to prevent, minimize, or remedy such harm; or
(l) To disclose to another Federal agency or Federal entity, when
the Commission determines that information from this system of records
is reasonably necessary to assist the recipient agency or entity in (1)
responding to a suspected or confirmed breach or (2) preventing,
minimizing, or remedying the risk of harm to individuals, the recipient
agency or entity (including its information systems, programs, and
operations), the Federal Government, or national security, resulting
from a suspected or confirmed breach.
POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
Paper records are stored in file folders and binders. Electronic
records, including computer files, are stored on the Commission's
network, NFA databases or applications, NFA website, and other secure
electronic media as needed.
POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
Information covered by this system of records notice may be
retrieved by the name of the individual or firm, an NFA identification
number, docket number, or by cross-indexing an individual's file to the
name of the firm with which the individual is associated or affiliated
(e.g., the name of the futures commission merchant).
POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
The records will be maintained in accordance with records
disposition schedules approved by the National Archives and Records
Administration. The schedules are available at http://www.cftc.gov.
[[Page 17814]]
ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
Records are protected from unauthorized access and improper use
through administrative, technical, and physical security measures.
Administrative safeguards include written guidelines on handling
personal information including agency-wide procedures for safeguarding
personally identifiable information. In addition, all NFA and CFTC
staff are required to take annual privacy and security training.
Technical security measures within NFA and CFTC include restrictions on
computer access to authorized individuals who have a legitimate need to
know the information; required use of strong passwords that are
frequently changed; multi-factor authentication for remote access and
access to many network components; use of encryption for certain data
types and transfers; firewalls and intrusion detection applications;
and regular review of security procedures and best practices to enhance
security. Physical safeguards include restrictions on building access
to authorized individuals, 24-hour security guard service, and
maintenance of records in lockable offices and filing cabinets.
RECORD ACCESS PROCEDURES:
Individuals seeking to determine whether this system of records
contains information about themselves or seeking access to records
about themselves in this system of records should address written
inquiries to the Office of General Counsel, Commodity Futures Trading
Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC
20581. See 17 CFR 146.3 for full details on what to include in a
Privacy Act access request.
Individuals may also request registration information by telephone
directly from the NFA information center at (800) 621-3570 or (312)
781-1410. Inquiries can also be made to NFA by fax at (312) 781-1459 or
via the internet at [email protected]. NFA will query the
system about current registration status and registration and
disciplinary history, and will provide instructions on how to make
written requests for copies of records.
CONTESTING RECORD PROCEDURES:
Individuals contesting the content of records about themselves
contained in this system of records should address written inquiries to
the Office of General Counsel, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See
17 CFR 146.8 for full details on what to include in a Privacy Act
amendment request.
NOTIFICATION PROCEDURES:
Individuals seeking notification of any records about themselves
contained in this system of records should address written inquiries to
the Office of General Counsel, Commodity Futures Trading Commission,
Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See
17 CFR 146.3 for full details on what to include in a Privacy Act
notification request. Individuals may also request registration
information by telephone directly from the NFA information center at
(800) 621-3570 or (312) 781-1410. Inquiries can also be made to NFA by
fax at (312) 781-1459 or via the internet at
[email protected]. NFA will query the system about current
registration status and registration and disciplinary history, and will
provide instructions on how to make written requests for copies of
records. The internet may be used to obtain information on current
registration status and futures-related regulatory actions at http://www.nfa.futures.org.
EXEMPTIONS PROMULGATED FOR THE SYSTEM:
The records in this system that refer, relate to or are from third-
party sources related to fitness or other investigations of applicants
for registration or registrants are exempted by the Commission from
certain provisions of the Privacy Act of 1974 pursuant to the terms of
the Privacy Act, 5 U.S.C. 552a(k)(2), and the Commission's rules
promulgated thereunder, 17 CFR 146.12. These records are exempt from
the notification procedures, records access procedures, and record
contest procedures set forth in the system notices of other systems of
records, and from the requirement that the sources of records in the
system be described.
HISTORY:
A previous version of this SORN was published in the Federal
Register on September 30th, 2014 at 79 FR 58752.
Issued in Washington, DC, on April 22, 2019, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-08397 Filed 4-25-19; 8:45 am]
BILLING CODE 6351-01-P