2024-13254
[Federal Register Volume 89, Number 117 (Monday, June 17, 2024)]
[Notices]
[Pages 51315-51317]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-13254]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Extend Collection 3038-0021, Regulations Governing Bankruptcies of
Commodity Brokers
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
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SUMMARY: The Commodity Futures Trading Commission (CFTC or Commission)
is announcing an opportunity for public comment on the proposed
extension of the collection of certain information by the agency. Under
the Paperwork Reduction Act (PRA), Federal agencies are required to
publish notice in the Federal Register concerning each proposed
collection of information, including each proposed extension of an
existing collection, and to allow 60 days for public comment. This
notice solicits comments on the collection of information provided for
by the Commission's regulations governing bankruptcies of commodity
brokers.
DATES: Comments must be submitted on or before August 16, 2024.
ADDRESSES: You may submit comments, identified by OMB Control No. 3038-
0021, by any of the following methods:
The agency's website, at https://www.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 of these methods. All
comments must be submitted in English, or if not, accompanied by an
English translation. Comments will be posted as received to https://www.cftc.gov.
FOR FURTHER INFORMATION CONTACT: Robert B. Wasserman, Chief Counsel and
Senior Advisor, Division of Clearing and Risk, Commodity Futures
Trading Commission, (202) 418-5092; email: [email protected].
SUPPLEMENTARY INFORMATION: Under the PRA, Federal agencies must obtain
approval from the Office of Management and Budget (OMB) for each
collection of information they conduct or sponsor. ``Collection of
Information'' is defined in 44 U.S.C. 3502(3) and 5 CFR 1320.3 and
includes agency requests or requirements that members of the public
submit reports, keep records, or provide information to a third party.
An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless it displays a valid OMB
control number. Section 3506(c)(2)(A) of the PRA, 44 U.S.C.
3506(c)(2)(A), requires Federal agencies to provide a 60-day notice in
the Federal Register concerning each proposed collection of information
before submitting the collection to OMB for approval. To comply with
this requirement, the CFTC is publishing notice of the proposed
extension of the collection of information listed below.
Title: Regulations Governing Bankruptcies of Commodity Brokers (OMB
Control No. 3038-0021). This is a request for an extension of a
currently approved information collection.\1\
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\1\ There are two information collections associated with OMB
Control No. 3038-0021. The first includes the reporting,
recordkeeping, and third party disclosure requirements applicable to
a single respondent in a commodity broker liquidation (e.g., a
single commodity broker or a single trustee) within the relevant
time period provided for in Commission regulations 190.02(b)(1),
190.02(b)(2), 190.02(c)(1), 190.02(c)(2), 190.02(c)(4), 190.05(b),
190.05(d), 190.07(b)(5), 190.12(a)(2), 190.12(b)(1), 190.12(b)(2),
190.12(c)(1), 190.12(c)(2), and 190.14(a), and 190.14(d). The second
information collection includes third party disclosure requirements
that are applicable on a regular basis to multiple respondents
(i.e., multiple FCMs) provided for in Commission regulations 1.41,
1.43 and 1.55(p).
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Abstract: This collection of information involves the reporting,
recordkeeping, and third party disclosure requirements set forth in the
CFTC's bankruptcy regulations for commodity broker liquidations, 17 CFR
part 190. These regulations apply to commodity broker liquidations
under Chapter 7, Subchapter IV of the Bankruptcy Code.\2\ The reporting
requirements include, for example, notices to the Commission regarding
the filing of petitions for bankruptcy and notices to the Commission
regarding the intention to transfer open commodity contracts in a
commodity broker liquidation. The recordkeeping requirements include,
for example, the statements of customer accounts that a trustee
appointed for the purposes of a commodity broker liquidation (Trustee)
must generate and adjust as set forth in the regulations. The third
party disclosure requirements include, for example, the disclosure
statement that a commodity broker must provide to its customers
containing information regarding the manner in which customer property
is treated under part 190 of the Commission's regulations in the event
of a bankruptcy and, in the event of a commodity broker liquidation,
certain notices that a Trustee must provide to customers and to the
persons to whom commodity contracts and specifically identifiable
customer property have been or will be transferred. The information
collection requirements are necessary, and will be used, to facilitate
the effective, efficient, and fair conduct of liquidation proceedings
for commodity brokers and to protect the interests of customers in
these proceedings both directly and by facilitating the participation
of the CFTC in such proceedings. With respect to the collections of
information, the CFTC invites comments on:
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\2\ 11 U.S.C. 761 et seq.
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Whether the proposed collection of information is
necessary for the proper
[[Page 51316]]
performance of the functions of the Commission, including whether the
information will have a practical use;
The accuracy of the Commission's estimate of the burden of
the proposed collection of information, including the validity of the
methodology and assumptions used;
Ways to enhance the quality, usefulness, and clarity of
the information to be collected; and
Ways to minimize the burden of the collection of
information on those who are to respond, including through the use of
appropriate automated electronic, mechanical, or other technological
collection techniques or other forms of information technology; e.g.,
permitting electronic submission of responses.
You should submit only information that you wish to make available
publicly. If you wish the Commission to consider information that you
believe is exempt from disclosure under the Freedom of Information Act
(FOIA), a petition for confidential treatment of the exempt information
may be submitted according to the procedures established in Sec. 145.9
of the Commission's regulations.\3\
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\3\ 17 CFR 145.9.
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The Commission reserves the right, but shall have no obligation, to
review, pre-screen, filter, redact, refuse or remove any or all of your
submission from https://www.cftc.gov that it may deem to be
inappropriate for publication, such as obscene language. All
submissions that have been redacted or removed that contain comments on
the merits of the information collection requirements will be retained
in the public comment file and will be considered as required under the
Administrative Procedure Act and other applicable laws, and may be
accessible under the FOIA.
Burden Statement: The Commission notes that commodity broker
liquidations occur at unpredictable and irregular intervals when
particular commodity brokers become insolvent. While a commodity broker
liquidation has not occurred in the past three years, the Commission
took the conservative approach of maintaining the assumptions contained
in the previous renewal of this information collection that, on
average, a Futures Commission Merchant (``FCM'') commodity broker
liquidation would occur every three years and that a Derivatives
Clearing Organization (``DCO'') commodity broker liquidation would
occur every fifty years. The Commission generally has retained the
burden hour estimates set forth in the previous information collection
as there have been no interim experiences nor are there currently
apparent circumstances that would warrant altering those estimates. The
Commission further notes, however, that the information collection
burden will vary in particular commodity broker liquidations depending
on the size of the commodity broker, the extent to which accounts are
able to be quickly transferred, and other factors specific to the
circumstances of the liquidation.
The respondent burden for this information collection is estimated
to be as follows: \4\
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\4\ Because an FCM commodity broker liquidation is estimated to
occur only once every three years, this information collection
expresses such burdens in terms of those that would be imposed on
one respondent during the three-year period.
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Reporting--FCMs 5
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\5\ The reporting requirements for FCMs are contained in
Commission regulations 190.03(b)(1) and 190.03(b)(2).
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Estimated Number of Respondents: 1.
Estimated Annual Number of Responses per Respondent: 1.
Estimated Total Annual Number of Responses: 1.
Estimated Annual Number of Burden Hours per Respondent: 1.
Estimated Total Annual Burden Hours: 1.
Type of Respondents: FCM commodity brokers who have filed a
petition in bankruptcy, Trustees.
Frequency of Collection: On occasion.
Recordkeeping--FCMs 6
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\6\ The recordkeeping requirements for FCMs are contained in
Commission regulations 190.05(b) and 190.05(d).
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Estimated Number of Respondents: 1.
Estimated Annual Number of Responses per Respondent: 26,666.67.
Estimated Total Annual Number of Responses: 26,666.67.
Estimated Annual Number of Burden Hours per Respondent: 266.67.
Estimated Total Annual Burden Hours: 266.67.
Type of Respondents: Trustees.
Frequency of Collection: Only during the pendency of an FCM
bankruptcy: daily and on occasion.
Third Party Disclosures Applicable to a Single Respondent--
FCMs 7
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\7\ These third party disclosure requirements are contained in
Commission regulations 190.03(c)(1), 190.03(c)(2), 190.02(c)(4), and
190.07(b)(5).
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Estimated Number of Respondents: 1.
Estimated Annual Number of Responses per Respondent: 10,003.32.
Estimated Total Annual Number of Responses: 10,003.32.
Estimated Annual Number of Burden Hours per Respondent: 1,336.66.
Estimated Total Annual Burden Hours: 1,336.66.
Type of Respondents: Trustees.
Frequency of Collection: On occasion.
Reporting--DCOs 8
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\8\ The reporting requirements for DCOs are contained in
Commission regulations 190.12(a)(2), 190.12(b)(1), 190.12(b)(2),
190.12(c)(1), and 190.12(c)(2).
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Estimated Number of Respondents: 9 1.
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\9\ Because a DCO commodity broker liquidation is estimated to
occur only once every fifty years, this information collection
expresses such burdens in terms of those that would be imposed on
one respondent during the fifty-year period.
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Estimated Annual Number of Responses per Respondent: 1.
Estimated Total Annual Number of Responses: 1.
Estimated Annual Number of Burden Hours per Respondent: 2.98.
Estimated Total Annual Burden Hours: 0.61.
Type of Respondents: DCO commodity brokers who have filed a
petition in bankruptcy, Trustees.
Frequency of Collection: On occasion.
Recordkeeping--DCOs 10
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\10\ The recordkeeping requirements for DCOs are contained in
Commission regulation 190.14(d).
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Estimated Number of Respondents: 1.
Estimated Annual Number of Responses per Respondent: 9.
Estimated Total Annual Number of Responses: 9.
Estimated Annual Number of Burden Hours per Respondent: 0.9.
Estimated Total Annual Burden Hours: 0.9.
Type of Respondents: Trustees.
Frequency of Collection: Only during the pendency of a DCO
bankruptcy: daily.
Third Party Disclosures Applicable to a Single Respondent--
DCOs 11
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\11\ The third-party disclosure requirements for DCOs are
contained in Commission regulation 190.14(a).
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Estimated Number of Respondents: 1.
Estimated Annual Number of Responses per Respondent: 0.9.
Estimated Total Annual Number of Responses: 0.9.
Estimated Annual Number of Burden Hours per Respondent: 0.18.
Estimated Total Annual Burden Hours: 0.18.
Type of Respondents: Trustees.
Frequency of Collection: On occasion.
Third Party Disclosures Applicable to Multiple Respondents
During Business as Usual 12
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\12\ The third-party disclosure requirements that are applicable
on a regular basis to multiple respondents (i.e., multiple FCMs) are
contained in Commission regulations 1.41, 1.43 and 1.55(p).
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Estimated Number of Respondents: 125.
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Estimated Annual Number of Responses per Respondent: 3,000.
Estimated Total Annual Number of Responses: 375,000.
Estimated Annual Number of Burden Hours per Respondent: 60.
Estimated Total Annual Burden Hours: 7,500.
Type of Respondents: FCMs.
Frequency of Collection: On occasion.
There are no new capital or start-up or operations costs associated
with this information collection, nor are there any maintenance costs
associated with this information collection.
Authority: 44 U.S.C. 3501 et seq.
Dated: June 12, 2024.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2024-13254 Filed 6-14-24; 8:45 am]
BILLING CODE 6351-01-P