Fees for Reviews of the Rule Enforcement Programs of Contract Markets and Registered Futures Associations, 16388-16391 [2011-6821]
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16388
Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Notices
DEPARTMENT OF COMMERCE
National Oceanic and Atmospheric
Administration
RIN 0648–XA309
Whaling Provisions; Aboriginal
Subsistence Whaling Quotas
National Marine Fisheries
Service (NMFS), National Oceanic and
Atmospheric Administration (NOAA),
Commerce.
ACTION: Notice; notification of quota for
bowhead whales.
AGENCY:
NMFS provides notification
of the aboriginal subsistence whaling
quota for bowhead whales that it has
assigned to the Alaska Eskimo Whaling
Commission (AEWC), and other
limitations deriving from regulations
adopted at the 59th Annual Meeting of
the International Whaling Commission
(IWC). For 2011, the quota is 75
bowhead whales struck. This quota and
other limitations govern the harvest of
bowhead whales by members of the
AEWC.
SUMMARY:
Effective March 23, 2011.
Office of International
Affairs, National Marine Fisheries
Service, 1315 East-West Highway, Silver
Spring, MD 20910.
FOR FURTHER INFORMATION CONTACT:
Ryan Wulff, (202) 482–3689.
SUPPLEMENTARY INFORMATION: Aboriginal
subsistence whaling in the United States
is governed by the Whaling Convention
Act (16 U.S.C. 916 et seq.). Regulations
that implement the Act, found at 50 CFR
230.6, require the Secretary of
Commerce (Secretary) to publish, at
least annually, aboriginal subsistence
whaling quotas and any other
limitations on aboriginal subsistence
whaling deriving from regulations of the
IWC.
At the 59th Annual Meeting of the
IWC, the Commission set catch limits
for aboriginal subsistence use of
bowhead whales from the BeringChukchi-Beaufort Seas stock. The
bowhead catch limits were based on a
joint request by the United States and
the Russian Federation, accompanied by
documentation concerning the needs of
two Native groups: Alaska Eskimos and
Chukotka Natives in the Russian Far
East.
This action by the IWC thus
authorized aboriginal subsistence
whaling by the AEWC for bowhead
whales. This aboriginal subsistence
harvest is conducted in accordance with
a cooperative agreement between NOAA
and the AEWC.
DATES:
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ADDRESSES:
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The IWC set a 5-year block quota of
280 bowhead whales landed. For each
of the years 2008 through 2012, the
number of bowhead whales struck may
not exceed 67, except that any unused
portion of a strike quota from any year,
including 15 unused strikes from the
2003 through 2007 quota, may be
carried forward. No more than 15 strikes
may be added to the strike quota for any
one year. At the end of the 2010 harvest,
there were 15 unused strikes available
for carry-forward, so the combined
strike quota for 2011 is 82 (67 + 15).
This arrangement ensures that the
total quota of bowhead whales landed
and struck in 2011 will not exceed the
catch limits set by the IWC. Under an
arrangement between the United States
and the Russian Federation, the Russian
natives may use no more than seven
strikes, and the Alaska Eskimos may use
no more than 75 strikes.
Through its cooperative agreement
with the AEWC, NOAA has assigned 75
strikes to the Alaska Eskimos. The
AEWC will allocate these strikes among
the 11 villages whose cultural and
subsistence needs have been
documented, and will ensure that its
hunters use no more than 75 strikes.
Other Limitations
The IWC regulations, as well as the
NOAA regulation at 50 CFR 230.4(c),
forbid the taking of calves or any whale
accompanied by a calf.
NOAA regulations (at 50 CFR 230.4)
contain a number of other prohibitions
relating to aboriginal subsistence
whaling, some of which are summarized
here. For example:
• Only licensed whaling captains or
crew under the control of those captains
may engage in whaling.
• They must follow the provisions of
the relevant cooperative agreement
between NOAA and a Native American
whaling organization.
• The aboriginal hunters must have
adequate crew, supplies, and
equipment.
• They may not receive money for
participating in the hunt.
• No person may sell or offer for sale
whale products from whales taken in
the hunt, except for authentic articles of
Native handicrafts.
• Captains may not continue to whale
after the relevant quota is taken, after
the season has been closed, or if their
licenses have been suspended. They
may not engage in whaling in a wasteful
manner.
PO 00000
Frm 00013
Fmt 4703
Sfmt 4703
Dated: March 18, 2011.
Jean Pierre-Ple,
Acting Director, Office of International
Affairs, National Marine Fisheries Service.
[FR Doc. 2011–6889 Filed 3–22–11; 8:45 am]
BILLING CODE 3510–22–P
COMMODITY FUTURES TRADING
COMMISSION
Fees for Reviews of the Rule
Enforcement Programs of Contract
Markets and Registered Futures
Associations
Commodity Futures Trading
Commission.
ACTION: FY 2008 and 2009 schedule of
fees; establish the FY 2010 schedule of
fees revision.
AGENCY:
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 (SRO)
rule enforcement programs (National
Futures Association (NFA), a registered
futures association, and the contract
markets are referred to as SROs). The
calculation of the fee amounts to be
charged for FY 2010 is based upon an
average of actual program costs incurred
during FY 2007, 2008, and 2009, as
explained below. The FY 2010 fee
includes adjustments to program costs
incurred in FY 2008 and 2009, which
are being revised as a result of an
internal review of program costs. The
FY 2010 fee schedule and the revision
of FY 2008 and 2009 fees are set forth
in the SUPPLEMENTARY INFORMATION
section. Electronic payment of fees is
required.
SUMMARY:
The FY 2010 fees for
Commission oversight of each SRO rule
enforcement program must be paid by
each of the named SROs in the amount
specified by no later than May 23, 2011.
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:
DATES:
I. General
This notice relates to fees for the
Commission’s review of the rule
enforcement programs at the registered
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Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Notices
futures associations 1 and designated
contract markets (DCM), which are
collectively referred to herein as SROs,
regulated by the Commission.
II. Background Information
A. General
The Commission recalculates the fees
charged each year with the intention of
recovering the costs of operating this
Commission program. Fees are
calculated by extracting direct labor
costs for rule enforcement reviews from
the agency’s Budget Programming
Accounting Codes (BPAC), which
captures each employee’s time by
project, for a three-year period. The
agency then adds an overhead factor for
benefits and general administrative
costs. The agency uses a three-year
rolling average to cover fluctuations in
the number of hours spent reviewing
each SRO over time. In recognition of
the fact that the cost of conducting a
review may not correlate directly with
the size of a particular SRO, the agency
also calculates an alternate fee that takes
the volume into account. The agency
charges the SRO the lesser of the two
fees.
Subsequent to an internal review, the
Commission found that in FY 2008 and
2009 not all direct program labor costs
were captured and that some direct
costs were misapplied to SRO reviews.
As the formula for calculating the FY
2010 fee to be charged to the SROs
includes actual costs incurred in FY
2008 and 2009, the fees for those years
are being revised, and the FY 2010 fee
is being adjusted to account for the
revisions. In addition, the FY 2009 fee
that was assessed on USFE is being
rescinded,2 as USFE ceased operations
on December 31, 2008. All adjustments
are shown in the tables that follow.
B. Overhead Rate
Once the agency determines the direct
costs for rule enforcement review of
each SRO, it applies an overhead rate to
cover employee benefits and other
administrative costs. 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): 140 percent for fiscal year
2007, and 144 percent for fiscal year
2008, and 147 percent for 2009.
C. Calculation of FY 2010 Fees
Under the formula adopted in 1993
(58 FR 42643, Aug. 11, 1993), which
appears at 17 CFR part 1 Appendix B,
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 yearto-year variations in cost. Timing of the
Commission’s reviews and
examinations may affect costs—a review
or examination may span two fiscal
16389
years and reviews and examinations are
not conducted at each SRO each year.
To provide relief to SROs who may bear
a disproportionately large share of
program costs, the Commission’s
alternate 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 SRO is equal to the
lesser of actual costs based on the threeyear historical average of costs for that
SRO or one-half of average costs
incurred by the Commission for each
SRO 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 SROs 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 SROs
over the last three years, and ‘‘t’’ equals
the average annual costs for all SROs.
NFA has no contracts traded; hence, its
fee is based simply on costs for the most
recent three fiscal years. The following
table summarizes the data used in the
calculations and the resulting fee for
each entity for FY 2010. The 3-year
average actual cost calculations were
derived using the FY 2008 and 2009 fees
as they are revised elsewhere in this
notice:
FY 2010 FEES
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3-year average actual
costs
3-year % of volume
2010 Fee
(lesser of actual or
calculated fee)
Chicago Board of Trade ..........................................................................
Chicago Mercantile Exchange .................................................................
New York Mercantile Exchange ..............................................................
Kansas City Board of Trade ....................................................................
ICE Futures U.S ......................................................................................
Minneapolis Grain Exchange ...................................................................
HedgeStreet .............................................................................................
Chicago Climate Futures Exchange ........................................................
US Futures Exchange .............................................................................
OneChicago .............................................................................................
$188,085
145,952
572,494
27,303
144,847
104,706
23,272
21,705
0
1,157
0.291273
55.5839
12.5373
0.1351
2.3324
0.0488
0.002
0.0205
0.0001
0.1791
$188,085
145,952
363,321
14,482
86,762
52,653
11,636
10,853
0
1,157
Subtotal .............................................................................................
1,229,521
....................................
847,901
National Futures Association ...................................................................
561,531
....................................
561,531
1 NFA
is the only registered futures association.
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2 See
PO 00000
generally 74 FR 46115 (Sep. 8, 2009).
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16390
Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Notices
FY 2010 FEES—Continued
3-year average actual
costs
Total ...........................................................................................
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 $188,085
b. The alternative computation is: (.5)
($188,085) + (.5) (.291273) ($1,229,521)
= $273,105
c. The fee is the lesser of a or b; in
this case $188,085
As noted above, the alternative
calculation based on contracts traded is
1,791,052
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 2008 through 2010 was $561,531
(one-third of $1,684,592.85). The fee to
be paid by the NFA for the current fiscal
year is $561,531, plus the adjustment to
the fees that were published for FY 2008
and 2009 in the Federal Register.3
3-year % of volume
....................................
2010 Fee
(lesser of actual or
calculated fee)
1,436,432
D. Revision of FY 2008 and 2009 Fees
This year, Commission conducted an
internal review of its SRO fee process
that has resulted in adjustments to the
fees owed by several SROs and NFA. As
a result of the internal review FY 2008
and FY 2009 fees for the Commission’s
review of the rule enforcement programs
at the registered futures associations and
SROs regulated by the Commission are
accordingly revised as follows:
FY 2009 FEE ADJUSTMENTS
Entity
2009 Assessment
Adjustment
2009 Revision
Chicago Board of Trade ............................................................................................
Chicago Mercantile Exchange ...................................................................................
New York Mercantile Exchange ................................................................................
Kansas City Board of Trade ......................................................................................
ICE Futures U.S ........................................................................................................
Minneapolis Grain Exchange .....................................................................................
HedgeStreet ...............................................................................................................
Chicago Climate Futures Exchange ..........................................................................
US Futures Exchange ...............................................................................................
OneChicago ...............................................................................................................
National Futures Association .....................................................................................
$77,371
121,071
197,535
10,127
32,683
62,449
14,375
12,259
18,601
1,157
179,641
$6,522
0
141,670
13,210
1,815
(30,420)
8
7
(18,601)
0
347,243
$83,893
121,071
339,205
23,337
34,498
32,029
14,383
12,266
0
1,157
526,884
Total ....................................................................................................................
727,270
461,453
1,188,723
FY 2008 FEE ADJUSTMENTS
Entity
2008 Assessment
Adjustment
2008 Revision
Chicago Board of Trade ............................................................................................
Chicago Mercantile Exchange ...................................................................................
New York Mercantile Exchange ................................................................................
Kansas City Board of Trade ......................................................................................
ICE Futures U.S ........................................................................................................
Minneapolis Grain Exchange .....................................................................................
HedgeStreet ...............................................................................................................
Chicago Climate Futures Exchange ..........................................................................
US Futures Exchange ...............................................................................................
OneChicago ...............................................................................................................
National Futures Association .....................................................................................
$146,077
124,734
144,893
11,119
37,662
28,181
10,194
8,306
14,602
15,836
450,419
$56,971
0
104,026
174
1,678
(27,413)
13
3
68
262
(3,045)
$203,048
124,734
248,919
11,293
39,340
768
10,207
8,309
14,670
16,098
447,374
Total ....................................................................................................................
992,022
132,737
1,124,760
E. Final Amounts Due
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To determine the final amount due
from each SRO, the adjustments for FY
2008 and 2009 must be added to or
subtracted from FY 2010 fee. For
example: Chicago Board of Trade
(CBOT) will owe $251,578 which is
computed as follows, $188,085 (2010
Entity
2008 Adjustment
Chicago Board of Trade ..........................................................
$56,971
fee) + $6,522 (2009 adjustment amount)
+ $56,971 (2008 adjustment amount) =
$251,578. The following chart provides
the calculation for each SRO:
2009 Adjustment
2010 Fee
$6,522
$188,085
3 See 73 FR 44707 (Sep. 29, 2008) and 74 FR
46115 (Sep. 8, 2009).
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16:46 Mar 22, 2011
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E:\FR\FM\23MRN1.SGM
23MRN1
Due
$251,578
Federal Register / Vol. 76, No. 56 / Wednesday, March 23, 2011 / Notices
Entity
2008 Adjustment
Chicago Mercantile Exchange .................................................
New York Mercantile Exchange ..............................................
Kansas City Board of Trade ....................................................
ICE Futures U.S ......................................................................
Minneapolis Grain Exchange ...................................................
HedgeStreet .............................................................................
Chicago Climate Futures Exchange ........................................
OneChicago .............................................................................
National Futures Association ...................................................
III. Payment Method
The Debt Collection Improvement Act
(DCIA) requires deposits of fees owed to
the government by electronic transfer of
funds (See 31 USC 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 https://
www.cftc.gov, specifically, https://
www.cftc.gov/cftc/
cftcelectronicpayments.htm.
Issued in Washington, DC, on March 14,
2011 by the Commission.
David Stawick,
Secretary of the Commission.
BILLING CODE 6351–01–P
COUNCIL ON ENVIRONMENTAL
QUALITY
Call for Innovative National
Environmental Policy Act (NEPA) Pilot
Project Proposals
AGENCY:
Council On Environmental
Quality.
Notice of Availability, Call for
Innovative National Environmental
Policy Act (NEPA) Pilot Project
Proposals.
ACTION:
The Chair of the Council on
Environmental Quality (CEQ) invites the
public and federal agencies to nominate
innovative pilot projects that
accomplish the NEPA goals of
transparency and informed
decisionmaking in a more timely and
effective manner. Nominations will be
accepted via online submission until
June 15, 2011. CEQ will track and
publicize the progress of selected pilot
projects as part of its NEPA Pilot
Program, to identify and promote more
efficient ways to do effective
environmental reviews that can be
replicated across the Federal
Government. The NEPA Pilot Project
Program is part of CEQ’s broad effort to
modernize and reinvigorate federal
agency implementation of NEPA
through innovation, public engagement,
and transparency. The NEPA Pilot
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SUMMARY:
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16:46 Mar 22, 2011
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0
104,026
174
1,678
(27,413)
13
3
262
(3,045)
The Call for Innovative
National Environmental Policy Act
(NEPA) Pilot Project Proposals and
online nomination submission form is
available at https://whitehouse.gov/
administration/eop/ceq/initiatives/
nepa/nepa-pilot-project.
FOR FURTHER INFORMATION CONTACT:
Katie Scharf, Deputy General Counsel,
Council on Environmental Quality, 202–
456–2464.
SUPPLEMENTARY INFORMATION: On March
17, 2011, the Council on Environmental
Quality (CEQ) issued a Call for
Innovative National Environmental
Policy Act (NEPA) Pilot Project
Proposals, inviting the public and
federal agencies, to nominate innovative
pilot projects that accomplish the NEPA
goals of transparency and informed
decisionmaking in a more timely and
effective manner. Nominations may be
submitted online at https://
whitehouse.gov/administration/eop/
ceq/initiatives/nepa/nepa-pilot-project.
Nominations will be accepted until June
15, 2011, and will be publicly posted on
the CEQ Web site, https://
www.whitehouse.gov/ceq. CEQ will not
consider nominations submitted after
June 15, 2011.
In consultation with a panel of agency
NEPA experts, CEQ will select up to five
(5) nominated pilot projects for further
study and trial implementation, based
on their potential to: (1) Reduce the
costs and/or time needed to complete
the NEPA process; (2) ensure
environmental protection; (3) improve
the quality and transparency of Federal
PO 00000
Frm 00016
Fmt 4703
Sfmt 4703
2010 Fee
0
141,670
13,210
1,815
(30,420)
8
7
0
347,243
Program will also facilitate a review
under section 6 of Executive Order
13563, ‘‘Improving Regulation and
Regulatory Review,’’ of provisions of
CEQ’s NEPA Regulations that may be
outmoded, ineffective, insufficient, or
excessively burdensome. 76 FR 3821,
Jan. 21, 2011; 40 CFR 1500–1508.
DATES: The Call for Innovative National
Environmental Policy Act (NEPA) Pilot
Project Proposals is available as of
March 17, 2011. Nominations may be
submitted online until June 15, 2011,
and will not be considered after that
date.
ADDRESSES:
[FR Doc. 2011–6821 Filed 3–22–11; 8:45 am]
2009 Adjustment
145,952
363,321
14,482
86,762
52,653
11,636
10,853
1,157
561,531
16391
Due
145,952
609,017
27,866
90,255
(5,180)
11,657
10,863
1,419
905,729
agency decision-making; and (4) yield
replicable best practices or procedural
innovations that can be replicated by
other agencies or applied to other
Federal actions or programs so as to
improve NEPA implementation beyond
a specific project. CEQ will coordinate
with relevant agencies to track project
implementation for the purpose of
evaluating and publicizing the
efficiencies realized. These outcomes
will be published on the CEQ Web site
and on the NEPA Web site, nepa.gov.
Where appropriate, CEQ will advocate
that agencies incorporate these best
practices into new or revised NEPA
procedures. Accordingly, the NEPA
Pilot Program will facilitate a review
under section 6 of Executive Order
13563, ‘‘Improving Regulation and
Regulatory Review,’’ of provisions of
CEQ’s NEPA Regulations that may be
outmoded, ineffective, insufficient, or
excessively burdensome. 76 FR 3821,
Jan. 21, 2011; 40 CFR 1500–1508.
(Authority: 42 U.S.C. 4342, 4344)
Dated: March 17, 2011.
Nancy H. Sutley,
Chair.
[FR Doc. 2011–6760 Filed 3–22–11; 8:45 am]
BILLING CODE 3125–W0–P
DEPARTMENT OF DEFENSE
Department of the Navy
Meeting of the Ocean Research and
Resources Advisory Panel
Department of the Navy, DoD.
Notice of open meeting.
AGENCY:
ACTION:
The Ocean Research and
Resources Advisory Panel (ORRAP) will
hold a meeting. The meeting will be
open to the public.
DATES: The meeting will be held on
Monday, April 25, 2011, from 8:30 a.m.
to 5:30 p.m. and Tuesday, April 26,
2011, from 8:30 a.m. to 2 p.m. Members
of the public should submit their
comments in advance of the meeting to
the meeting Point of Contact.
ADDRESSES: The meeting will be held at
the Consortium for Ocean Leadership,
SUMMARY:
E:\FR\FM\23MRN1.SGM
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]]>Agencies
[Federal Register Volume 76, Number 56 (Wednesday, March 23, 2011)]
[Notices]
[Pages 16388-16391]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-6821]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
Fees for Reviews of the Rule Enforcement Programs of Contract
Markets and Registered Futures Associations
AGENCY: Commodity Futures Trading Commission.
ACTION: FY 2008 and 2009 schedule of fees; establish the FY 2010
schedule of fees revision.
-----------------------------------------------------------------------
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 (SRO) rule enforcement programs (National
Futures Association (NFA), a registered futures association, and the
contract markets are referred to as SROs). The calculation of the fee
amounts to be charged for FY 2010 is based upon an average of actual
program costs incurred during FY 2007, 2008, and 2009, as explained
below. The FY 2010 fee includes adjustments to program costs incurred
in FY 2008 and 2009, which are being revised as a result of an internal
review of program costs. The FY 2010 fee schedule and the revision of
FY 2008 and 2009 fees are set forth in the SUPPLEMENTARY INFORMATION
section. Electronic payment of fees is required.
DATES: The FY 2010 fees for Commission oversight of each SRO rule
enforcement program must be paid by each of the named SROs in the
amount specified by no later than May 23, 2011.
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. General
This notice relates to fees for the Commission's review of the rule
enforcement programs at the registered
[[Page 16389]]
futures associations \1\ and designated contract markets (DCM), which
are collectively referred to herein as SROs, regulated by the
Commission.
---------------------------------------------------------------------------
\1\ NFA is the only registered futures association.
---------------------------------------------------------------------------
II. Background Information
A. General
The Commission recalculates the fees charged each year with the
intention of recovering the costs of operating this Commission program.
Fees are calculated by extracting direct labor costs for rule
enforcement reviews from the agency's Budget Programming Accounting
Codes (BPAC), which captures each employee's time by project, for a
three-year period. The agency then adds an overhead factor for benefits
and general administrative costs. The agency uses a three-year rolling
average to cover fluctuations in the number of hours spent reviewing
each SRO over time. In recognition of the fact that the cost of
conducting a review may not correlate directly with the size of a
particular SRO, the agency also calculates an alternate fee that takes
the volume into account. The agency charges the SRO the lesser of the
two fees.
Subsequent to an internal review, the Commission found that in FY
2008 and 2009 not all direct program labor costs were captured and that
some direct costs were misapplied to SRO reviews. As the formula for
calculating the FY 2010 fee to be charged to the SROs includes actual
costs incurred in FY 2008 and 2009, the fees for those years are being
revised, and the FY 2010 fee is being adjusted to account for the
revisions. In addition, the FY 2009 fee that was assessed on USFE is
being rescinded,\2\ as USFE ceased operations on December 31, 2008. All
adjustments are shown in the tables that follow.
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\2\ See generally 74 FR 46115 (Sep. 8, 2009).
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B. Overhead Rate
Once the agency determines the direct costs for rule enforcement
review of each SRO, it applies an overhead rate to cover employee
benefits and other administrative costs. 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): 140 percent for fiscal year 2007, and 144
percent for fiscal year 2008, and 147 percent for 2009.
C. Calculation of FY 2010 Fees
Under the formula adopted in 1993 (58 FR 42643, Aug. 11, 1993),
which appears at 17 CFR part 1 Appendix B, 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. To provide relief to SROs who may bear a disproportionately
large share of program costs, the Commission's alternate 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 SRO is equal to the lesser of actual costs based
on the three-year historical average of costs for that SRO or one-half
of average costs incurred by the Commission for each SRO 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 SROs 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 SROs over the last three years, and
``t'' equals the average annual costs for all SROs. NFA has no
contracts traded; hence, its fee is based simply on costs for the most
recent three fiscal years. The following table summarizes the data used
in the calculations and the resulting fee for each entity for FY 2010.
The 3-year average actual cost calculations were derived using the FY
2008 and 2009 fees as they are revised elsewhere in this notice:
FY 2010 Fees
----------------------------------------------------------------------------------------------------------------
2010 Fee (lesser of
3-year average 3-year % of volume actual or calculated
actual costs fee)
----------------------------------------------------------------------------------------------------------------
Chicago Board of Trade........................ $188,085 0.291273 $188,085
Chicago Mercantile Exchange................... 145,952 55.5839 145,952
New York Mercantile Exchange.................. 572,494 12.5373 363,321
Kansas City Board of Trade.................... 27,303 0.1351 14,482
ICE Futures U.S............................... 144,847 2.3324 86,762
Minneapolis Grain Exchange.................... 104,706 0.0488 52,653
HedgeStreet................................... 23,272 0.002 11,636
Chicago Climate Futures Exchange.............. 21,705 0.0205 10,853
US Futures Exchange........................... 0 0.0001 0
OneChicago.................................... 1,157 0.1791 1,157
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Subtotal.................................. 1,229,521 .................... 847,901
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National Futures Association.................. 561,531 .................... 561,531
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[[Page 16390]]
Total................................. 1,791,052 .................... 1,436,432
----------------------------------------------------------------------------------------------------------------
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 $188,085
b. The alternative computation is: (.5) ($188,085) + (.5) (.291273)
($1,229,521) = $273,105
c. The fee is the lesser of a or b; in this case $188,085
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 2008 through 2010 was $561,531 (one-third of $1,684,592.85). The
fee to be paid by the NFA for the current fiscal year is $561,531, plus
the adjustment to the fees that were published for FY 2008 and 2009 in
the Federal Register.\3\
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\3\ See 73 FR 44707 (Sep. 29, 2008) and 74 FR 46115 (Sep. 8,
2009).
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D. Revision of FY 2008 and 2009 Fees
This year, Commission conducted an internal review of its SRO fee
process that has resulted in adjustments to the fees owed by several
SROs and NFA. As a result of the internal review FY 2008 and FY 2009
fees for the Commission's review of the rule enforcement programs at
the registered futures associations and SROs regulated by the
Commission are accordingly revised as follows:
FY 2009 Fee Adjustments
----------------------------------------------------------------------------------------------------------------
Entity 2009 Assessment Adjustment 2009 Revision
----------------------------------------------------------------------------------------------------------------
Chicago Board of Trade................................. $77,371 $6,522 $83,893
Chicago Mercantile Exchange............................ 121,071 0 121,071
New York Mercantile Exchange........................... 197,535 141,670 339,205
Kansas City Board of Trade............................. 10,127 13,210 23,337
ICE Futures U.S........................................ 32,683 1,815 34,498
Minneapolis Grain Exchange............................. 62,449 (30,420) 32,029
HedgeStreet............................................ 14,375 8 14,383
Chicago Climate Futures Exchange....................... 12,259 7 12,266
US Futures Exchange.................................... 18,601 (18,601) 0
OneChicago............................................. 1,157 0 1,157
National Futures Association........................... 179,641 347,243 526,884
--------------------------------------------------------
Total.............................................. 727,270 461,453 1,188,723
----------------------------------------------------------------------------------------------------------------
FY 2008 Fee Adjustments
----------------------------------------------------------------------------------------------------------------
Entity 2008 Assessment Adjustment 2008 Revision
----------------------------------------------------------------------------------------------------------------
Chicago Board of Trade................................. $146,077 $56,971 $203,048
Chicago Mercantile Exchange............................ 124,734 0 124,734
New York Mercantile Exchange........................... 144,893 104,026 248,919
Kansas City Board of Trade............................. 11,119 174 11,293
ICE Futures U.S........................................ 37,662 1,678 39,340
Minneapolis Grain Exchange............................. 28,181 (27,413) 768
HedgeStreet............................................ 10,194 13 10,207
Chicago Climate Futures Exchange....................... 8,306 3 8,309
US Futures Exchange.................................... 14,602 68 14,670
OneChicago............................................. 15,836 262 16,098
National Futures Association........................... 450,419 (3,045) 447,374
--------------------------------------------------------
Total.............................................. 992,022 132,737 1,124,760
----------------------------------------------------------------------------------------------------------------
E. Final Amounts Due
To determine the final amount due from each SRO, the adjustments
for FY 2008 and 2009 must be added to or subtracted from FY 2010 fee.
For example: Chicago Board of Trade (CBOT) will owe $251,578 which is
computed as follows, $188,085 (2010 fee) + $6,522 (2009 adjustment
amount) + $56,971 (2008 adjustment amount) = $251,578. The following
chart provides the calculation for each SRO:
----------------------------------------------------------------------------------------------------------------
Entity 2008 Adjustment 2009 Adjustment 2010 Fee Due
----------------------------------------------------------------------------------------------------------------
Chicago Board of Trade.............. $56,971 $6,522 $188,085 $251,578
[[Page 16391]]
Chicago Mercantile Exchange......... 0 0 145,952 145,952
New York Mercantile Exchange........ 104,026 141,670 363,321 609,017
Kansas City Board of Trade.......... 174 13,210 14,482 27,866
ICE Futures U.S..................... 1,678 1,815 86,762 90,255
Minneapolis Grain Exchange.......... (27,413) (30,420) 52,653 (5,180)
HedgeStreet......................... 13 8 11,636 11,657
Chicago Climate Futures Exchange.... 3 7 10,853 10,863
OneChicago.......................... 262 0 1,157 1,419
National Futures Association........ (3,045) 347,243 561,531 905,729
----------------------------------------------------------------------------------------------------------------
III. Payment Method
The Debt Collection Improvement Act (DCIA) requires deposits of
fees owed to the government by electronic transfer of funds (See 31 USC
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 https://www.cftc.gov, specifically, https://www.cftc.gov/cftc/cftcelectronicpayments.htm.
Issued in Washington, DC, on March 14, 2011 by the Commission.
David Stawick,
Secretary of the Commission.
[FR Doc. 2011-6821 Filed 3-22-11; 8:45 am]
BILLING CODE 6351-01-P
