2024-17792
[Federal Register Volume 89, Number 155 (Monday, August 12, 2024)]
[Notices]
[Pages 65606-65607]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-17792]
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COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Notice of Intent To
Renew Collection 3038-0007, Regulation of Domestic Exchange-Traded
Options
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 a collection of certain information by the agency. Under
the Paperwork Reduction Act of 1995 (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 of information, and to allow 60 days for
public comment in response to the notice. This notice solicits comments
on rules related to risk disclosure and promotional material concerning
certain domestic exchange-traded commodity options.
DATES: Comments must be submitted on or before October 11, 2024.
ADDRESSES: You may submit comments, identified by ``OMB Control No.
3038-0007,'' by any of the following methods:
The CFTC website, at 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.
Delivery/Courier: Same as Mail above.
Please submit your comments using only one method and identify that
it is for the extension/renewal of Collection Number 3038-0007.
FOR FURTHER INFORMATION CONTACT: Catherine Brescia, Attorney Advisor,
Market Participants Division, Commodity Futures Trading Commission,
telephone: (202) 418-6236; email: [email protected], and refer to OMB
Control No. 3038-0007.
SUPPLEMENTARY INFORMATION: Under the PRA, 44 U.S.C. 3501 et seq.,
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(c) and includes agency requests or requirements that
members of the public submit reports, keep records, or provide
information to a third party. 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, including each proposed extension of an existing
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 an existing collection of
information listed below. An agency may not conduct or sponsor, and a
person is not required to respond to a collection of information
[[Page 65607]]
unless it displays a currently valid OMB control number.\1\
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\1\ 46 FR 63035 (Dec. 30, 1981).
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Title: Rules Relating to Regulation of Domestic Exchange-Traded
Options, OMB Control Number 3038-0007. This is a request for extension
of a currently approved collection.
Abstract: Commission Regulations 33.7 and 33.8,\2\ respectively,
require futures commission merchants (FCMs) and introducing brokers
(IBs): (1) to provide retail (i.e., non-eligible contract participant)
\3\ customers with, and retain, standard risk disclosure statements
concerning the risk of trading certain domestic exchange-traded
commodity options; \4\ and (2) to retain all related promotional
material and the source of authority for information contained therein.
These requirements help assure that these customers are not
fraudulently induced to invest in these commodity options by persons
who misrepresent the risks of such transactions. The recordkeeping
requirements assist the Commission and the National Futures Association
(NFA) in verifying registrants' compliance with their disclosure
obligations and ensuring that related promotional material is not
fraudulent or misleading.
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\2\ 17 CFR 33.7 and 33.8.
\3\ Commission Regulation 33.7 does not require FCMs or IBs to
provide the disclosure or obtain a related acknowledgment from
institutional customers. See 17 CFR 33.7(a)(1). Commission
Regulation 1.3 provides that ``institutional customer'' has the same
meaning as ``eligible contract participant'' (``ECP'') as defined in
section 1a(18) of the Commodity Exchange Act (``CEA''). Under the
CEA, an ECP includes, for example, a financial institution, an
insurance company, and a corporation with $10 million in assets.
\4\ See Commission Regulation 33.2(b). 17 CFR 33.2(b) (providing
that Part 33 of the Commission's Regulations applies to commodity
option transactions that are options on contracts of sale of a
commodity for future delivery except for commodity option
transactions that are options on contracts of sale of a commodity
for future delivery conducted or executed on or subject to the rules
of a foreign board of trade).
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This information collection contains the third-party disclosure and
recordkeeping requirements needed to ensure regulatory compliance by
FCMs and IBs with these Commission Regulations.
With respect to the above collection of information, the CFTC
invites comments on:
Whether the proposed collection of information is
necessary for the proper 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 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.
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. 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, a petition for confidential treatment of
the exempt information may be submitted according to the procedures
established in section 145.9 of the Commission's regulations.\5\
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\5\ 17 CFR 145.9, 74 FR 17395 (Apr. 15, 2009).
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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 Requirement 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 Freedom of Information Act.
Burden Statement: The Commission estimates the burden of this
collection of information as follows:
Estimated Number of Annual Respondents: 983.
Estimated Average Annual Burden Hours per Respondent: 34.2.
Estimated Total Annual Burden Hours: 33,619.
Frequency of Collection: On occasion.
There are no capital costs or operating and maintenance costs
associated with this collection.
(Authority: 44 U.S.C. 3501 et seq.)
Dated: August 6, 2024.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2024-17792 Filed 8-9-24; 8:45 am]
BILLING CODE 6351-01-P