Fees for Reviews of the Rule Enforcement Programs of Designated Contract Markets and Registered Futures Associations, 74351-74353 [2012-30224]

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Download as PDF mstockstill on DSK4VPTVN1PROD with Federal Register / Vol. 77, No. 241 / Friday, December 14, 2012 / Rules and Regulations requesters are limited to the cost of providing standard duplication services alone, without charge for the first 100 pages reproduced. To qualify for this category, requesters must show that the request made is authorized by and under the auspices of an eligible institution and that the records are not sought for a commercial use, but are sought in furtherance of scholarly research (if the request is from an educational institution) or scientific research (if the request is from a noncommercial scientific institution). (1) The term ‘‘educational institution’’ refers to preschools, public or private elementary or secondary schools, institutions of graduate or undergraduate higher education, institutions of professional education, and institutions of vocational education operating one or more programs of scholarly research. 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VerDate Mar<15>2010 14:38 Dec 13, 2012 Jkt 229001 (g) CIGIE will assess fees for searches which fail to locate records or which locate records which are exempt from disclosure at the same rate as searches which result in disclosure of records. (h) If a fee is incurred in connection with a request or an appeal in accordance with this section, CIGIE will inform the requester of the amount owed and the basis for the fee amount. (i) Payment for outstanding fees incurred will be billed to the fullest extent possible at the time the requested records are forwarded to the requester. Payments must be made by requesters within 30 days of the date of the billing. (j) In cases where the estimated fees to be charged exceed $250.00, CIGIE may require payment of the entire fee or a portion of the fee before it provides any of the requested records. (k) CIGIE shall require full payment of any delinquent fee owed by the requester plus any applicable interest prior to releasing records on a subsequent request or appeal. If a requester declines to remit payment in advance, CIGIE may refuse to process the request or appeal with written notice to that effect provided to the requester. The ‘‘date of receipt’’ appeal for which advance payment has been required shall be the date CIGIE receives payment. § 9800.16 Interest charges. For requests that result in fees assessed, CIGIE may begin levying interest charges on an unpaid bill starting on the 31st day following the day on which the billing was sent. Interest will be assessed at the rate prescribed under 31 U.S.C. 3717, and will accrue from the date of the billing. § 9800.17 Aggregating requests. If CIGIE reasonably believes that a requester, or group of requesters acting in concert, is attempting to break down a request into a series of requests for the purpose of evading the assessment of fees, CIGIE may aggregate any such requests and charge accordingly. § 9800.18 records concerns the operations or activities of the Federal Government; (2) The informative value of the information to be disclosed: Whether the disclosure is likely to contribute to an understanding of Federal Government operations or activities; (3) The contribution to an understanding of the subject by the public likely to result from the disclosure: Whether the disclosure will contribute to the public understanding; (4) The significance of the contribution to the public understanding: Whether the disclosure is likely to significantly contribute to the public understanding of Federal Government operations or activities; (5) The existence and magnitude of a commercial interest: Whether the requester has a commercial interest that would be furthered by the disclosure of the requested records; and (6) The primary interest in disclosure: Whether the magnitude of an identified commercial interest of the requester is sufficiently large, in comparison with the public interest in disclosure, that disclosure is primarily in the commercial interest of the requester. (c) CIGIE may, in its discretion, waive or reduce fees associated with a records request, regardless of whether a waiver or reduction has been requested, if the agency determines that disclosure will primarily benefit the general public. (d) CIGIE will waive fees without discretion in all circumstances where the amount of the fee is $25.00 or less. (e) CIGIE will notify the requester regarding whether the fee waiver has been granted. A requester may appeal a denial of a fee waiver request only after a final decision has been made on the initial FOIA request. Dated: December 4, 2012. Phyllis K. Fong, Chairperson of the Council of the Inspectors General on Integrity and Efficiency. [FR Doc. 2012–30131 Filed 12–13–12; 8:45 am] BILLING CODE 6820–C9–M Fee waivers and reductions. (a) CIGIE may waive or reduce fees if disclosure of the information sought is deemed to be in the public interest. A request is made in the public interest if it is likely to contribute significantly to public understanding of the operations or activities of the Federal Government, and is not primarily in the commercial interest of the requester. (b) When determining fee waiver requests, CIGIE will consider the following six factors: (1) The subject of the request: Whether the subject of the requested PO 00000 74351 Frm 00005 Fmt 4700 Sfmt 4700 COMMODITY FUTURES TRADING COMMISSION 17 CFR Part 1 Fees for Reviews of the Rule Enforcement Programs of Designated Contract Markets and Registered Futures Associations Commodity Futures Trading Commission. ACTION: Notice of FY 2012 schedule of fees. AGENCY: E:\FR\FM\14DER1.SGM 14DER1 74352 Federal Register / Vol. 77, No. 241 / Friday, December 14, 2012 / Rules and Regulations SUMMARY: The Commission charges fees to designated contract markets and registered futures associations to recover the costs incurred by the Commission in the operation of its program of oversight of self-regulatory organization rule enforcement programs, specifically National Futures Association, a registered futures association, and the designated contract markets. The calculation of the fee amounts charged for FY 2012 by this notice is based upon an average of actual program costs incurred during FY 2009, 2010, and 2011. DATES: Effective Date: Each SRO is required to remit electronically the fee applicable to it on or before February 12, 2013. FOR FURTHER INFORMATION CONTACT: Mark Carney, Chief Financial Officer, Commodity Futures Trading Commission, (202) 418–5477, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581. For information on electronic payment, contact Jennifer Fleming, Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581, (202) 418–5034. SUPPLEMENTARY INFORMATION: I. Background Information A. General This notice relates to fees for the Commission’s review of the rule enforcement programs at the registered futures associations 1 and designated contract markets (DCM) each of which is a self-regulatory organization (SRO) regulated by the Commission. The Commission recalculates the fees charged each year to cover the costs of operating this Commission program.2 All costs are accounted for by the Commission’s Budget Program Activity 1 NFA is the only registered futures association. section 237 of the Futures Trading Act of 1982, 7 U.S.C. 16a, and 31 U.S.C. 9701. For a broader discussion of the history of Commission fees, see 52 FR 46070, Dec. 4, 1987. mstockstill on DSK4VPTVN1PROD with 2 See VerDate Mar<15>2010 14:38 Dec 13, 2012 Jkt 229001 Codes (BPAC) system, formerly the Management Accounting Structure Codes (MASC) system, which records each employee’s time for each pay period. The fees are set each year based on direct program costs, plus an overhead factor. The Commission calculates actual costs, then calculates an alternate fee taking volume into account, then charges the lower of the two.3 B. Overhead Rate The fees charged by the Commission to the SROs are designed to recover program costs, including direct labor costs and overhead. The overhead rate is calculated by dividing total Commission-wide overhead direct program labor costs into the total amount of the Commission-wide overhead pool. For this purpose, direct program labor costs are the salary costs of personnel working in all Commission programs. Overhead costs consist generally of the following Commissionwide costs: indirect personnel costs (leave and benefits), rent, communications, contract services, utilities, equipment, and supplies. This formula has resulted in the following overhead rates for the most recent three years (rounded to the nearest whole percent): 147 percent for fiscal year 2009, 153 percent for fiscal year 2010, and 145 percent for fiscal year 2011. C. Conduct of SRO Rule Enforcement Reviews Under the formula adopted by the Commission in 1993, the Commission calculates the fee to recover the costs of its rule enforcement reviews and examinations, based on the three-year average of the actual cost of performing such reviews and examinations at each SRO. The cost of operation of the Commission’s SRO oversight program varies from SRO to SRO, according to 3 58 FR 42643, Aug. 11, 1993 and 17 CFR part 1, app. B. PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 the size and complexity of each SRO’s program. The three-year averaging computation method is intended to smooth out year-to-year variations in cost. Timing of the Commission’s reviews and examinations may affect costs—a review or examination may span two fiscal years and reviews and examinations are not conducted at each SRO each year. As noted above, adjustments to actual costs may be made to relieve the burden on an SRO with a disproportionately large share of program costs. The Commission’s formula provides for a reduction in the assessed fee if an SRO has a smaller percentage of United States industry contract volume than its percentage of overall Commission oversight program costs. This adjustment reduces the costs so that, as a percentage of total Commission SRO oversight program costs, they are in line with the pro rata percentage for that SRO of United States industry-wide contract volume. The calculation is made as follows: The fee required to be paid to the Commission by each DCM is equal to the lesser of actual costs based on the three-year historical average of costs for that DCM or one-half of average costs incurred by the Commission for each DCM for the most recent three years, plus a pro rata share (based on average trading volume for the most recent three years) of the aggregate of average annual costs of all DCMs for the most recent three years. The formula for calculating the second factor is: 0.5a + 0.5 vt = current fee. In this formula, ‘‘a’’ equals the average annual costs, ‘‘v’’ equals the percentage of total volume across DCMs over the last three years, and ‘‘t’’ equals the average annual costs for all DCMs. NFA has no contracts traded; hence, its fee is based simply on costs for the most recent three fiscal years. This table summarizes the data used in the calculations of the resulting fee for each entity: E:\FR\FM\14DER1.SGM 14DER1 74353 Federal Register / Vol. 77, No. 241 / Friday, December 14, 2012 / Rules and Regulations An example of how the fee is calculated for one exchange, the Chicago Board of Trade, is set forth here: a. Actual three-year average costs equal $78,553. b. The alternative computation is: (.5) ($78,553) + (.5) (.274) ($1,340,083) = $222,868. c. The fee is the lesser of a or b; in this case $78,553. As noted above, the alternative calculation based on contracts traded is not applicable to NFA because it is not a DCM and has no contracts traded. The Commission’s average annual cost for conducting oversight review of the NFA rule enforcement program during fiscal years 2009 through 2011 was $577,549 (one-third of $1,732,647). The fee to be paid by the NFA for the current fiscal year is $577,549. II. Schedule of Fees Therefore, fees for the Commission’s review of the rule enforcement programs at the registered futures associations and DCMs regulated by the Commission are as follows: 2012 fee lesser of actual or calculated fee CBOE Futures ............................................................................................................................................................................. Chicago Board of Trade .............................................................................................................................................................. Chicago Climate Exchange ......................................................................................................................................................... Chicago Mercantile Exchange ..................................................................................................................................................... ICE Futures U.S. ......................................................................................................................................................................... Kansas City Board of Trade ........................................................................................................................................................ Minneapolis Grain Exchange ....................................................................................................................................................... New York Mercantile Exchange .................................................................................................................................................. New York LIFFE .......................................................................................................................................................................... $17,611 78,553 497 548,855 88,143 44,642 35,730 227,640 71,111 Subtotal ................................................................................................................................................................................. National Futures Association ....................................................................................................................................................... 1,112,781 577,549 Total ............................................................................................................................................................................... 1,690,330 The Debt Collection Improvement Act (DCIA) requires deposits of fees owed to the government by electronic transfer of funds (See 31 U.S.C. 3720). For information about electronic payments, please contact Jennifer Fleming at (202) 418–5034 or jfleming@cftc.gov, or see the CFTC Web site at www.cftc.gov, specifically, www.cftc.gov/cftc/ cftcelectronicpayments.htm. VerDate Mar<15>2010 14:38 Dec 13, 2012 Jkt 229001 Issued in Washington, DC on this 11th day of December 2012, by the Commission. Sauntia S. Warfield, Assistant Secretary of the Commission. PENSION BENEFIT GUARANTY CORPORATION [FR Doc. 2012–30224 Filed 12–13–12; 8:45 am] Benefits Payable in Terminated SingleEmployer Plans; Interest Assumptions for Paying Benefits BILLING CODE P PO 00000 29 CFR Part 4022 Pension Benefit Guaranty Corporation. AGENCY: ACTION: Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\14DER1.SGM Final rule. 14DER1 ER14DE12.000</GPH> mstockstill on DSK4VPTVN1PROD with III. Payment Method

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[Federal Register Volume 77, Number 241 (Friday, December 14, 2012)]
[Rules and Regulations]
[Pages 74351-74353]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30224]


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COMMODITY FUTURES TRADING COMMISSION

17 CFR Part 1


Fees for Reviews of the Rule Enforcement Programs of Designated 
Contract Markets and Registered Futures Associations

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice of FY 2012 schedule of fees.

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[[Page 74352]]

SUMMARY: The Commission charges fees to designated contract markets and 
registered futures associations to recover the costs incurred by the 
Commission in the operation of its program of oversight of self-
regulatory organization rule enforcement programs, specifically 
National Futures Association, a registered futures association, and the 
designated contract markets. The calculation of the fee amounts charged 
for FY 2012 by this notice is based upon an average of actual program 
costs incurred during FY 2009, 2010, and 2011.

DATES: Effective Date: Each SRO is required to remit electronically the 
fee applicable to it on or before February 12, 2013.

FOR FURTHER INFORMATION CONTACT: Mark Carney, Chief Financial Officer, 
Commodity Futures Trading Commission, (202) 418-5477, Three Lafayette 
Centre, 1155 21st Street NW., Washington, DC 20581. For information on 
electronic payment, contact Jennifer Fleming, Three Lafayette Centre, 
1155 21st Street NW., Washington, DC 20581, (202) 418-5034.

SUPPLEMENTARY INFORMATION: 

I. Background Information

A. General

    This notice relates to fees for the Commission's review of the rule 
enforcement programs at the registered futures associations \1\ and 
designated contract markets (DCM) each of which is a self-regulatory 
organization (SRO) regulated by the Commission. The Commission 
recalculates the fees charged each year to cover the costs of operating 
this Commission program.\2\ All costs are accounted for by the 
Commission's Budget Program Activity Codes (BPAC) system, formerly the 
Management Accounting Structure Codes (MASC) system, which records each 
employee's time for each pay period. The fees are set each year based 
on direct program costs, plus an overhead factor. The Commission 
calculates actual costs, then calculates an alternate fee taking volume 
into account, then charges the lower of the two.\3\
---------------------------------------------------------------------------

    \1\ NFA is the only registered futures association.
    \2\ See section 237 of the Futures Trading Act of 1982, 7 U.S.C. 
16a, and 31 U.S.C. 9701. For a broader discussion of the history of 
Commission fees, see 52 FR 46070, Dec. 4, 1987.
    \3\ 58 FR 42643, Aug. 11, 1993 and 17 CFR part 1, app. B.
---------------------------------------------------------------------------

B. Overhead Rate

    The fees charged by the Commission to the SROs are designed to 
recover program costs, including direct labor costs and overhead. The 
overhead rate is calculated by dividing total Commission-wide overhead 
direct program labor costs into the total amount of the Commission-wide 
overhead pool. For this purpose, direct program labor costs are the 
salary costs of personnel working in all Commission programs. Overhead 
costs consist generally of the following Commission-wide costs: 
indirect personnel costs (leave and benefits), rent, communications, 
contract services, utilities, equipment, and supplies. This formula has 
resulted in the following overhead rates for the most recent three 
years (rounded to the nearest whole percent): 147 percent for fiscal 
year 2009, 153 percent for fiscal year 2010, and 145 percent for fiscal 
year 2011.

C. Conduct of SRO Rule Enforcement Reviews

    Under the formula adopted by the Commission in 1993, the Commission 
calculates the fee to recover the costs of its rule enforcement reviews 
and examinations, based on the three-year average of the actual cost of 
performing such reviews and examinations at each SRO. The cost of 
operation of the Commission's SRO oversight program varies from SRO to 
SRO, according to the size and complexity of each SRO's program. The 
three-year averaging computation method is intended to smooth out year-
to-year variations in cost. Timing of the Commission's reviews and 
examinations may affect costs--a review or examination may span two 
fiscal years and reviews and examinations are not conducted at each SRO 
each year.
    As noted above, adjustments to actual costs may be made to relieve 
the burden on an SRO with a disproportionately large share of program 
costs. The Commission's formula provides for a reduction in the 
assessed fee if an SRO has a smaller percentage of United States 
industry contract volume than its percentage of overall Commission 
oversight program costs. This adjustment reduces the costs so that, as 
a percentage of total Commission SRO oversight program costs, they are 
in line with the pro rata percentage for that SRO of United States 
industry-wide contract volume.
    The calculation is made as follows: The fee required to be paid to 
the Commission by each DCM is equal to the lesser of actual costs based 
on the three-year historical average of costs for that DCM or one-half 
of average costs incurred by the Commission for each DCM for the most 
recent three years, plus a pro rata share (based on average trading 
volume for the most recent three years) of the aggregate of average 
annual costs of all DCMs for the most recent three years. The formula 
for calculating the second factor is: 0.5a + 0.5 vt = current fee. In 
this formula, ``a'' equals the average annual costs, ``v'' equals the 
percentage of total volume across DCMs over the last three years, and 
``t'' equals the average annual costs for all DCMs. NFA has no 
contracts traded; hence, its fee is based simply on costs for the most 
recent three fiscal years. This table summarizes the data used in the 
calculations of the resulting fee for each entity:

[[Page 74353]]

[GRAPHIC] [TIFF OMITTED] TR14DE12.000

    An example of how the fee is calculated for one exchange, the 
Chicago Board of Trade, is set forth here:
    a. Actual three-year average costs equal $78,553.
    b. The alternative computation is: (.5) ($78,553) + (.5) (.274) 
($1,340,083) = $222,868.
    c. The fee is the lesser of a or b; in this case $78,553.
    As noted above, the alternative calculation based on contracts 
traded is not applicable to NFA because it is not a DCM and has no 
contracts traded. The Commission's average annual cost for conducting 
oversight review of the NFA rule enforcement program during fiscal 
years 2009 through 2011 was $577,549 (one-third of $1,732,647). The fee 
to be paid by the NFA for the current fiscal year is $577,549.

II. Schedule of Fees

    Therefore, fees for the Commission's review of the rule enforcement 
programs at the registered futures associations and DCMs regulated by 
the Commission are as follows:

------------------------------------------------------------------------
                                                      2012 fee lesser of
                                                           actual or
                                                        calculated fee
------------------------------------------------------------------------
CBOE Futures........................................             $17,611
Chicago Board of Trade..............................              78,553
Chicago Climate Exchange............................                 497
Chicago Mercantile Exchange.........................             548,855
ICE Futures U.S.....................................              88,143
Kansas City Board of Trade..........................              44,642
Minneapolis Grain Exchange..........................              35,730
New York Mercantile Exchange........................             227,640
New York LIFFE......................................              71,111
                                                     -------------------
    Subtotal........................................           1,112,781
National Futures Association........................             577,549
                                                     -------------------
        Total.......................................           1,690,330
------------------------------------------------------------------------

III. Payment Method

    The Debt Collection Improvement Act (DCIA) requires deposits of 
fees owed to the government by electronic transfer of funds (See 31 
U.S.C. 3720). For information about electronic payments, please contact 
Jennifer Fleming at (202) 418-5034 or jfleming@cftc.gov, or see the 
CFTC Web site at www.cftc.gov, specifically, www.cftc.gov/cftc/cftcelectronicpayments.htm.

    Issued in Washington, DC on this 11th day of December 2012, by 
the Commission.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012-30224 Filed 12-13-12; 8:45 am]
BILLING CODE P