Agency Information Collection Activities: Proposed Collection, Comment Request: Form TO, Annual Notice Filing for Counterparties to Unreported Trade Options, 74647-74652 [2012-30227]
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Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices
32. ZhangJiaGang ZhongYuan Pipe-Making
Co.
33. Zhejiang Jianli Enterprise Co., Ltd.
[FR Doc. 2012–30221 Filed 12–14–12; 8:45 am]
BILLING CODE P
DEPARTMENT OF COMMERCE
International Trade Administration
srobinson on DSK4SPTVN1PROD with
Application(s) for Duty-Free Entry of
Scientific Instruments
Pursuant to Section 6(c) of the
Educational, Scientific and Cultural
Materials Importation Act of 1966 (Pub.
L. 89–651, as amended by Pub. L. 106–
36; 80 Stat. 897; 15 CFR part 301), we
invite comments on the question of
whether instruments of equivalent
scientific value, for the purposes for
which the instruments shown below are
intended to be used, are being
manufactured in the United States.
Comments must comply with 15 CFR
301.5(a)(3) and (4) of the regulations and
be postmarked on or before January 7,
2013. Address written comments to
Statutory Import Programs Staff, Room
3720, U.S. Department of Commerce,
Washington, DC 20230. Applications
may be examined between 8:30 a.m. and
5:00 p.m. at the U.S. Department of
Commerce in Room 3720.
Docket Number: 12–053. Applicant:
University of Colorado Boulder, 1800
Grant St., Suite 500, Denver, CO 80203.
Instrument: HF2LI Lock-In System.
Manufacturer: Zurich Instruments AG,
Switzerland. Intended Use: The
instrument will be used to measure
detected near-field signals scattered off
an Atomic Force Microscope (AFM) tip
in a scattering-Scanning Near-field
Optical Microscope (s-SNOM). The
instrument will detect the magnitude
and phase of the light scattered by an
AFM tip to measure the electromagnetic
near-field of optical antennas,
plasmonics in metals and
semiconductors (including graphene),
photonic crystals, and other nanoscale
spectroscopy applications. The
instrument has the ability to fully
digitize the measured signal and analyze
it at 50 MHz, as well as the ability to
demodulate many frequencies at once,
which is essential to the measurement
technique. Demodulation at 50 MHz is
necessary because the AFM tip
oscillates at 350–300 kHz, and higher
harmonics (5th or 6th) of this oscillation
must be measured to isolate the nearfield signal. Justification for Duty-Free
Entry: There are no instruments of the
same general category manufactured in
the United States. Application accepted
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by Commissioner of Customs: November
2, 2012.
Docket Number: 12–054. Applicant:
Purdue University, 525 Northwestern
Ave., West Lafayette, IN 47907–2036.
Instrument: DD Neutron Generator.
Manufacturer: NSD Fusion, Germany.
Intended Use: The instrument will be
used to determine the behavior of
produced scintillation light and
ionization electrons of low energy
nuclear recoils of Xenon, as well as to
compare the combination of energy
released in these two channels to energy
released in electronic recoils of the same
energy. The scintillation and ionization
signals are studied in a detector vessel
that lies underneath 5 meters of water,
thus the instrument needs to be water
tight. To study the scintillation light and
ionization behavior of liquid xenon to
neutrons from a mono-energetic neutron
source with energies close to 2.5 MeV,
each neutron interaction must be
resolved separately, and thus arrive at
most once every millisecond. The
instrument has been proven to show
less than a few hundred counts per
second when operated at low voltage,
and thus meets this requirement.
Justification for Duty-Free Entry: There
are no instruments of the same general
category manufactured in the United
States. Application accepted by
Commissioner of Customs: November 2,
2012.
Docket Number: 12–057. Applicant:
Massachusetts Institute of Technology,
190 Albany St., NW21–121, Cambridge,
MA 02139. Instrument: Fast Ferrite
Tuner. Manufacturer: AFT Microwave
GmbH, Germany. Intended Use: The
instrument is part of a magnetic fieldaligned Ion Cyclotron RF antenna,
which is used to automatically follow
the load variation in real time and make
the antenna system load tolerant. The
instrument’s unique specifications are
its frequency range of 50–80 MHz and
5 MW circulating power. Justification
for Duty-Free Entry: There are no
instruments of the same general
category manufactured in the United
States. Application accepted by
Commissioner of Customs: November
15, 2012.
Dated: December 11, 2012.
Gregory W. Campbell,
Director of Subsidies Enforcement, Import
Administration.
[FR Doc. 2012–30342 Filed 12–14–12; 8:45 am]
BILLING CODE 3510–DS–P
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74647
COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Proposed Collection,
Comment Request: Form TO, Annual
Notice Filing for Counterparties to
Unreported Trade Options
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
The Commodity Futures
Trading Commission (‘‘Commission’’ or
‘‘CFTC’’) is announcing an opportunity
for public comment on the proposed
collection of certain information by the
agency. Under the Paperwork Reduction
Act (‘‘PRA’’), 44 U.S.C. 3501 et seq.,
Federal agencies are required to publish
notice in the Federal Register
concerning each proposed collection of
information and to allow 60 days for
public comment. The Commission
recently adopted a final rule and interim
final rule, as required by the DoddFrank Wall Street Reform and Consumer
Protection Act (‘‘Dodd-Frank Act’’),
governing commodity options. That
rulemaking includes a requirement that
counterparties to unreported trade
options must file an annual notice with
the Commission on new Form TO. This
notice solicits comments on the
reporting requirement that would be
imposed by Form TO.
DATES: Comments must be submitted on
or before February 15, 2013.
ADDRESSES: You may submit comments,
regarding the burden estimated or any
other aspect of the information
collection, including suggestions for
reducing the burden. Please refer to
‘‘Form TO, ‘Annual Notice Filing for
Counterparties to Unreported Trade
Options’’’ in any correspondence.
Comments may be submitted by any of
the following methods:
• Mail: Office of Information and
Regulatory Affairs, Office of
Management and Budget, Attention:
Desk Officer for CFTC, 725 17th Street,
Washington, DC 20503.
• The Agency’s Web site, at https://
comments.cftc.gov/. Follow the
instructions for submitting comments
through the Web site.
• Mail: Sauntia S. Warfield, Assistant
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.
• Federal eRulemaking Portal: https://
www.regulations.gov.
SUMMARY:
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Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices
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 www.cftc.gov. 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 § 145.9
of the Commission’s regulations.1
FOR FURTHER INFORMATION CONTACT:
Donald Heitman, Senior Special
Counsel, (202) 418–5041,
dheitman@cftc.gov, Division of Market
Oversight, or David Aron, Counsel,
(202) 418–6621, daron@cftc.gov, Office
of the General Counsel, Commodity
Futures Trading Commission, Three
Lafayette Centre, 1155 21st Street NW.,
Washington, DC 20581
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. 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. An agency may not
conduct or sponsor, and a person is not
required to respond to, a collection of
information unless it displays a
currently valid control number. To
comply with this requirement, the CFTC
is publishing the notice of the proposed
collection of information listed below.
Abstract: In accordance with section
721 of the Dodd-Frank Act, on April 27,
2012, the Commission published a final
and interim final rule governing
commodity options (‘‘Commodity
Options Rules’’).2 The final rule portion
of that rulemaking adopted the
Commission’s proposal to generally
permit market participants to trade
commodity options, which are
statutorily defined as swaps,3 subject to
1 17
CFR 145.9.
FR 25320, April 27, 2012.
3 See 7 U.S.C. 1a(47)(A)(i). Note that the swap
definition excludes options on futures (which must
be traded on a designated contract market (‘‘DCM’’)
pursuant to part 33 of the Commission’s
regulations) (see Commodity Exchange Act (‘‘CEA’’)
section 1a(47)(B)(i), 7 U.S.C. 1a(47)(B)(i)), but it
includes options on physical commodities (whether
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the same rules applicable to every other
swap. The interim final rule portion of
the rulemaking includes a trade option
exemption for physically delivered
commodity options purchased by
commercial users of the commodities
underlying the options (‘‘Trade Option
Interim Final Rule’’ or ‘‘Trade Option
IFR’’), subject to certain conditions.
Those conditions, which include both
recordkeeping and reporting obligations,
are primarily intended to preserve a
level of market visibility for the
Commission while reducing the
regulatory compliance burden for
market participants.
1. Recordkeeping Pursuant to Part 45 4
The conditions set out in the Trade
Option IFR include recordkeeping
requirements for any trade options
activity, i.e., the recordkeeping
or not traded on a DCM) (see CEA section
1a(47)(A)(i), 7 U.S.C. 1a(47)(A)(i)). Other options
excluded from the statutory definition of swap are
options on any security, certificate of deposit, or
group or index of securities, including any interest
therein or based on the value thereof, that are
subject to the Securities Act of 1933 and the
Securities Exchange Act of 1934 (see CEA section
1a(47)(B)(iii), 7 U.S.C. 1a(47)(B)(iii)) and foreign
currency options entered into on a national
securities exchange registered pursuant to section
6(a) of the Securities Exchange Act of 1934 (see
CEA section 1a(47)(B)(iv), 7 U.S.C. 1a(47)(B)(iv)).
Note also that the Commission’s regulations define
a commodity option transaction or commodity
option as ‘‘any transaction or agreement in
interstate commerce which is or is held out to be
of the character of, or is commonly known to the
trade as, an ‘option,’ ‘privilege,’ ‘indemnity,’ ‘bid,’
‘offer,’ ‘call,’ ‘put,’ ‘advance guaranty’ or ‘decline
guaranty’.’’ 17 CFR 1.3(hh). For purposes of this
release, the Commission uses the term ‘‘commodity
options’’ to apply solely to commodity options not
excluded from the swap definition set forth in CEA
section 1a(47)(A), 7 U.S.C. 1a(47)(A). The
Commission recently published, in conjunction
with the Securities and Exchange Commission
(‘‘SEC’’) final rules to further define, among other
things, the term ‘‘swap.’’ See Further Definition of
‘‘Swap,’’ ‘‘Security-Based Swap,’’ and ‘‘SecurityBased Swap Agreement’’; Mixed Swaps; SecurityBased Swap Agreement; Final Rule, 77 FR 48207,
August 13, 2012 (‘‘Product Definitions Final
Rules’’). The Product Definitions Final Rules
address the determination of whether a commodity
option or a transaction with optionality is subject
to the swap definition in the first instance. If a
commodity option or a transaction with optionality
is excluded from the scope of the swap definition
(for example, if it is an excluded forward contract—
see id. at 48227), the commodity options rules,
including the Form TO reporting requirement, are
not applicable.
4 The Commission recently adopted final swap
data recordkeeping and reporting rules as new part
45 of the Commission’s regulations. See Swap Data
Recordkeeping and Reporting Requirements 77 FR
2136, Jan. 13, 2012. The information in this notice
regarding part 45 recordkeeping and reporting is
provided as background, in order to describe Form
TO in context. However, this notice applies only to
Form TO. The PRA implications of the part 45
recordkeeping and reporting requirements were
analyzed as part of the part 45 rulemaking process
and discussed in the final swap data recordkeeping
and reporting rules.
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requirements of 17 CFR 45.2.5 Such
records must be maintained by all trade
option participants pursuant to § 45.2
and made available to the Commission
as specified therein.6 Section 45.2
applies different recordkeeping
requirements, depending on the nature
of the counterparty. For example, if a
trade option counterparty is a swap
dealer (‘‘SD’’) or major swap participant
(‘‘MSP’’), it would be subject to the
comprehensive recordkeeping
requirements of § 45.2(a). If a
counterparty is neither an SD nor an
MSP, it would be subject to the less
stringent recordkeeping requirements of
§ 45.2(b). The recordkeeping
requirement is intended to ensure that
trade options market participants are
able to provide pertinent information
regarding their trade options activity to
the Commission, if requested.
2. Reporting Pursuant to Part 45
In addition to part 45 recordkeeping
(which applies in some form to all trade
options and trade option participants),
the interim final rule requires certain
trade options to be reported pursuant to
part 45’s reporting provisions.7 Under
the interim final rule, the determination
as to whether a trade option is required
to be reported pursuant to part 45 is
based on the parties to the trade option
and whether or not they have previously
reported swaps pursuant to part 45.
Specifically, if any trade option involves
at least one counterparty (whether as
buyer or seller) that has (1) become
obligated to comply with the reporting
requirements of part 45, (2) as a
reporting party, (3) during the twelve
month period preceding the date on
which the trade option is entered into,
(4) in connection with any non-trade
option swap trading activity, then such
5 17
CFR 45.2, id. at 2198.
CFR 45.2(h) provides that:
[a]ll records required to be kept pursuant to this
section [17 CFR 45.2] by any registrant or its
affiliates or by any non-SD/MSP counterparty
subject to the jurisdiction of the Commission shall
be open to inspection upon request by any
representative of the Commission, the United States
Department of Justice, or the [SEC], or by any
representative of a prudential regulator as
authorized by the Commission. Copies of all such
records shall be provided, at the expense of the
entity or person required to keep the record, to any
representative of the Commission upon request.
Copies of records required to be kept by any
registrant shall be provided either by electronic
means, in hard copy, or both, as requested by the
Commission, with the sole exception that copies of
records originally created and exclusively
maintained in paper form may be provided in hard
copy only. Copies of records required to be kept by
any non-SD/MSP counterparty subject to the
jurisdiction of the Commission that is not a
Commission registrant shall be provided in the
form, whether electronic or paper, in which the
records are kept.
7 See 17 CFR 45.3–45.5, 77 FR at 2199–2204.
6 17
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trade option must also be reported
pursuant to the reporting requirements
of part 45. If only one counterparty to
a trade option has previously complied
with the part 45 reporting provisions, as
described above, then that counterparty
shall be the part 45 reporting entity for
the trade option. If both counterparties
have previously complied with the part
45 reporting provisions, as described
above, then the part 45 rules for
determining the reporting party will
apply.8
By applying the part 45 reporting
requirements to trade options in this
manner, the Commission will obtain
greater transparency and improved
oversight of the swaps markets, both of
which are primary statutory objectives
of Title VII of the Dodd-Frank Act.
The Commission believes, however,
that greater transparency regarding the
trade options market must be balanced
against the burdens of frequent and
near-instantaneous reporting required
under part 45 of the Commission’s
regulations on counterparties who are
not otherwise obligated to report
because they do not have other
reportable swap activity. Accordingly, if
neither counterparty to a trade option
already is complying with the reporting
requirements of part 45 as a reporting
party in connection with its non-trade
option swap trading activities as
described above,9 then such trade
option is not required to be reported
pursuant to the reporting requirements
of part 45.10
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3. Annual Notice Filing Alternative to
Part 45 Reporting: Form TO
To the extent that neither
counterparty to a trade option has
previously submitted reports to a swap
data repository (‘‘SDR’’) as a result of its
swap trading activities as described
above, the Commission recognizes that
requiring these entities to report trade
options to an SDR under part 45 of the
Commission’s regulations solely with
respect to their trade options activity
would be costly and time consuming.
As an alternative, the Trade Option IFR
requires any counterparty to an
otherwise unreported trade option to
submit an annual filing to the
Commission for the purpose of
providing notice that it has entered into
8 See 77 FR 25327, April 27, 2012, and 17 CFR
45.8.
9 That is, neither counterparty to the trade option
has previously reported, as the reporting party, nontrade option swap trading activity during the twelve
months preceding the date on which the trade
option is entered into.
10 By taking this approach, the Commission
ensures that no market participant is compelled to
comply with part 45’s reporting requirements based
solely on its trade options activity.
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one or more unreported trade options in
the prior calendar year. Unlike with
trade options subject to the part 45
reporting requirement, wherein only
one counterparty to the trade option
reports the transaction to an SDR, the
notice filing requirement applies to both
counterparties to an unreported trade
option. Because the purpose of the
notice filing requirement is to identify
to the Commission those market
participants engaging in unreported
trade options, the notice filing
requirement applies whether or not
such counterparty has also been a nonreporting counterparty to a reported
trade option in the twelve months
preceding the date on which the
unreported trade option was entered
into. Market participants will satisfy the
annual notice filing requirement by
completing and submitting a new
Commission form, Form TO, by March
1 following the end of any calendar year
during which the market participant
entered into one or more unreported
trade options.
Form TO requires an unreported trade
option counterparty to: (1) Provide
name and contact information, (2)
identify the categories of commodities
(agricultural, metals, energy, or other)
underlying one or more unreported
trade options which it entered into
during the prior calendar year, and (3)
for each commodity category, estimate
the approximate aggregate value of the
underlying physical commodities that it
either delivered or received in
connection with the exercise of
unreported trade options during the
prior calendar year. For the purposes of
item (3), a reporting counterparty
should not include the value of
commodities that were the subject of
trade options that remained open at the
end of the calendar year or the value of
any trade options that expired
unexercised during the prior calendar
year.
Pursuant to the interim final rule,
Form TO is a mandatory annual filing
requirement. The form must be
submitted to the Commission no later
than March 1 for the prior calendar year.
For example, if a market participant
enters into one or more unreported trade
options between January 1, 2013 and
December 31, 2013 (the first calendar
year for which a Form TO will be due
to the Commission is 2013), the market
participant must submit a completed
Form TO to the Commission on or
before March 1, 2014. Form TO is set
out in the Trade Option IFR as
Appendix A to part 32 of the
Commission’s regulations.11 A copy of
Form TO is also appended to this
notice. Form TO will be available
electronically on the Commission’s Web
site at least ninety days before the first
compliance date for filing the form,
March 1, 2014. The Form TO filing
requirement is intended to provide the
Commission a minimally intrusive level
of visibility into the unreported trade
options market, to guide the
Commission’s efforts to collect
additional information through its
authority to obtain copies of books or
records required to be kept pursuant to
the Act 12 should market circumstances
dictate, and to enable the Commission
to determine whether these
counterparties should be subject to more
frequent and comprehensive reporting
obligations in the future.
The Trade Option IFR notice
specifically requested comments on
trade option reporting and/or notice
filing requirements.13 Those comments
may be found on the Commission’s Web
site, www.cftc.gov, at https://
comments.cftc.gov/PublicComments/
CommentList.aspx?id=1196. All
comments received in response to the
Trade Option IFR notice regarding Form
TO will be considered, along with the
comments received in response to this
notice, in determining the Commission’s
final action on Form TO.
If the Commission obtains
information required to be kept through
this collection, it would protect
proprietary information in accordance
with the Freedom of Information Act
and 17 CFR part 145, ‘‘Commission
Records and Information.’’ In addition,
§ 8(a)(1) of the Act strictly prohibits the
Commission, unless specifically
authorized by the Act, from making
public ‘‘data and information that
would separately disclose the business
transactions or market positions of any
person and trade secrets or names of
customers.’’ 14 The Commission is also
required to protect certain information
contained in a government system of
records according to the Privacy Act of
1974, 5 U.S.C. 552a.
Burden Statement: The respondent
burden for this collection is estimated to
be 2 hours per response. These
estimates include the time to: (1)
Review the commodity categories that
were the subject of unreported trade
options during the prior calendar year
(including a review of counterparties to
such transactions to determine which
trade options were otherwise
unreported); (2) estimate the value of
commodities actually delivered or
12 See
17 CFR 1.31(a)(2) and 17 CFR 45.2(h).
77 FR 25320 at 25328.
14 7 U.S.C. 12(a)(1).
13 See
11 See
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received pursuant to trade options in
each category; and (3) prepare and file
Form TO electronically through the
Commission’s web-based Form TO. The
Commission estimates the average
burden of this collection of information
as follows:
ESTIMATED ANNUAL REPORTING BURDEN HOURS AND BURDEN HOUR COSTS
17 CFR
Annual
number of
respondents
Part 32, Appendix A,
Form TO.
100
Frequency of response
per respondent
Hours per response
and cost
Total annual responses
Total hours cost
Annually ......................
2 hours at $200 per response.15
100 (one form per otherwise unreported
trade option participant).
$20,000 (100 responses times 2
hours per response,
based on $100/
hour.)
purchased or received and how much it
cost.
The Commission 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.
NOTICE: Failure to file a report
required by the Commodity Exchange
Act (‘‘CEA’’ or the ‘‘Act’’) 17 and the
regulations thereunder,18 or the filing of
a report with the Commodity Futures
Trading Commission (‘‘CFTC’’ or
‘‘Commission’’) that includes a false,
misleading or fraudulent statement or
omits material facts that are required to
be reported therein or are necessary to
make the report not misleading, may (a)
constitute a violation of section 6(c)(2)
of the Act (7 USC 9, 15), section 9(a)(3)
of the Act (7 USC 13(a)(3)), and/or
section 1001 of Title 18, Crimes and
Criminal Procedure (18 USC 1001) and
(b) result in punishment by fine or
imprisonment, or both.
PRIVACY ACT NOTICE
15 The Commission estimates that entities will
spend $100 per hour. The $100 per hour estimate
was used as the average hourly wage rate in the
PRA section of the Internal Business Conduct
Standards for Swap Dealers and Major Swap
Participants final rule (See 77 FR 20128, 20194) and
the wage rate for CCOs under the DCO final rules
(See 76 FR 69344, 69428). As the Commission
explained in the Internal Business Conduct
Standards final rule, the estimate of $100 per hour
was based on recent Bureau of Labor Statistics
findings, including the mean hourly wage of an
employee under occupation code 23–1011,
‘‘Lawyers,’’ that is employed by the ‘‘Securities and
Commodity Contracts Intermediation and Brokerage
Industry,’’ which is $85.20. The mean hourly wage
of an employee under occupation code 11–3031,
‘‘Financial Manager,’’ in the same industry is
$80.90. Additionally, SIFMA’s ‘‘Report on
Management & Professional Earnings in the
Securities Industry—2011’’ estimates the average
wage of a compliance attorney at $96.42 and a
compliance specialist in the U.S. at $74.85 per
hour. As in those rules, the Commission is using a
$100 per hour wage rate in calculating the cost
burdens imposed by this collection of information
and requests comment on the accuracy of its
estimate.
16 A trade option is generally a commodity option
purchased by a commercial party that, upon
exercise, results in the sale of a physical commodity
for immediate (spot) or deferred (forward) shipment
or delivery. See CFTC regulation 32.3(a) (17 CFR
32.3(a)) for more details. An unreported trade
option is a trade option that is not required to be
reported to a swap data repository by either
counterparty pursuant to CFTC regulation 32.3(b)(1)
and part 45 of the Commission’s regulations (17
CFR 32.3(b)(1); 17 CFR part 45).
17 7 U.S.C. section 1, et seq.
18 Unless otherwise noted, the rules and
regulations referenced in this notice are found in
chapter 1 of title 17 of the Code of Federal
Regulations; 17 CFR Chapter 1 et seq.
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Appendix
The Commission’s authority for
soliciting this information is granted in
sections 4c(b) and 8 of the CEA and
related regulations (see, e.g., 17 CFR
§ 32.3(b)). The information solicited
from entities and individuals engaged in
activities covered by the CEA is
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Respondents/Affected Entities: 100.
Estimated average number of
responses: 100 (one form per year).
Estimated total average annual
burden on respondents: 2 hours.
Frequency of collection: Annually.
Average total cost: $20,000.
There are no capital costs or operating
and maintenance costs associated with
this collection. The Commission
believes that, as part of customary and
usual business practices, all
respondents already create and store
basic information on what they
74651
Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices
required to be provided to the CFTC,
and failure to comply may result in the
imposition of criminal or administrative
sanctions (see, e.g., 7 U.S.C. §§ 9 and
13a–1, and/or 18 U.S.C. 1001). The
information requested is most
commonly used in the Commission’s
market and trade practice surveillance
activities to provide information
concerning the size and composition of
the commodity derivatives markets. The
requested information may be used by
the Commission in the conduct of
investigations and litigation and, in
limited circumstances, may be made
public on an aggregate basis in
accordance with provisions of the CEA
and other applicable laws. It may also
be disclosed to other government
agencies to meet responsibilities
assigned to them by law. The
information will be maintained in, and
any additional disclosures will be made
in accordance with, the CFTC System of
Records Notices, available on
www.cftc.gov. 19
GENERAL INSTRUCTIONS
Who Must File a Form TO—17 CFR
§ 32.3(b)(2) requires every counterparty
to an unreported trade option to submit
an annual filing to the Commission for
the purpose of providing notice that it
has entered into one or more unreported
trade options in the prior calendar year.
As noted above, an unreported trade
option is a trade option that is not
required to be reported to a swap data
repository by either counterparty
pursuant to CFTC regulation 32.3(b)(1)
and part 45 of the Commission’s
regulations.
When to file—Form TO is an annual
filing requirement due to the
Commission no later than March 1 for
the prior calendar year. For example, if
a market participant enters into one or
more unreported trade options between
January 1, 2013 and December 31, 2013,
the market participant must submit a
completed Form TO to the Commission
on or before March 1, 2014.
Where to file—Generally, Form TO
should be submitted via the CFTC’s web
based Form TO submission process at
https://www.cftc.gov/, or as otherwise
instructed by the Commission or its
designee. If submission through the
web-based Form TO is impossible, the
reporting counterparty shall contact the
Commission at [techsupport@cftc.gov]
or 202–418–5000 for further
instructions.
What to File—All reporting
counterparties filing a Form TO must
complete all questions.
Signature—Each Form TO submitted
to the Commission must be signed or
otherwise authenticated by either (1) the
reporting counterparty submitting the
form or (2) an individual that is duly
authorized by the reporting
counterparty to provide the information
and representations contained in the
form.
CFTC FORM TO
Name and Contact Information for
Reporting Counterparty:
1. Reporting Counterparty
Name and Address (including City,
State, Country, Zip/Postal Code):
Reporting Counterparty Web site (if
any):
Reporting Counterparty Unique
Identifier (if any):
b Legal Entity Identifier ‘‘LEI’’ (if any)
b National Futures Association ID Number (if any)
b Other Party Identifier (Please Specify)
Phone Number and Email Address:
2. Reporting Counterparty Contact
Person 20
Name and Job Title and/or
Relationship with Reporting
Counterparty:
Commodity Category Indication:
or more unreported trade options in the
following commodity categories:
3. In the prior calendar year, the
Reporting Counterparty entered into one
Agricultural 21 .................................................................................................................................................................
Metals 22 ...........................................................................................................................................................................
Energy 23 ..........................................................................................................................................................................
Other (Please Specify) .............................................................................................................................................
Approximate Size of Unreported Trade
Options Exercised in the Prior Calendar
Year:
srobinson on DSK4SPTVN1PROD with
4. Please indicate, by commodity
category, the approximate total value
19 Note that, under the Paperwork Reduction Act,
an agency may not conduct or sponsor, and a
person is not required to respond to, a collection
of information unless it displays a currently valid
control number from the Office of Management and
Budget.
20 This should be an individual able to answer
specific questions about the reporting
VerDate Mar<15>2010
16:21 Dec 14, 2012
Jkt 229001
b
b
b
b
YES
YES
YES
YES
b
b
b
b
NO.
NO.
NO.
NO.
(quantity received/delivered multiplied
by price paid/received) of physical
commodities that the reporting
counterparty purchased and/or
delivered in connection with the
exercise of unreported trade options in
the prior calendar year: 24
counterparty’s unreported trade options activity if
contacted by Commission staff.
21 Agricultural commodity is defined in the
Commission’s regulations at 17 CFR 1.3(zz).
22 Including, but not limited to, gold, silver,
platinum, palladium, copper, aluminum, and rare
earth metals.
23 Including, but not limited to, petroleum
products, natural gas, and electricity.
24 For the purposes of answering this question, a
reporting counterparty should not include the value
of commodities that were the subject of trade
options that remained open at the end of the prior
calendar year or any trade options that expired
unexercised during the prior calendar year.
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
E:\FR\FM\17DEN1.SGM
17DEN1
74652
Federal Register / Vol. 77, No. 242 / Monday, December 17, 2012 / Notices
Agricultural ........................
b None ............................
b Under $10M ................
b $10M to $100M ...........
b Over $100M
Metals ................................
b None ............................
b Under $10M ................
b $10M to $100M ...........
b Over $100M
Energy ...............................
b None ............................
b Under $10M ................
b $10M to $100M ...........
b Over $100M
Other ..........................
b None ............................
b Under $10M ................
b $10M to $100M ...........
b Over $100M
Signature/Authentication, Name, and
Date
b By checking this box and
submitting this Form TO (or by clicking
‘‘submit,’’ ‘‘send,’’ or any other
analogous transmission command if
transmitting electronically), I certify that
I am duly authorized by the reporting
counterparty identified below to
provide the information and
representations submitted on this Form
TO, and that the information and
representations are true and correct.
Reporting Counterparty Authorized
Representative (Name and Position):
llllllllllllllllll
l
(Name)
llllllllllllllllll
l
(Position)
Submitted on behalf of:
llllllllllllllllll
l
(Reporting Counterparty)
Date of Submission:
llllllllllllllllll
l
Dated: December 11, 2012.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012–30227 Filed 12–14–12; 8:45 am]
BILLING CODE P
DEPARTMENT OF ENERGY
Federal Energy Regulatory
Commission
srobinson on DSK4SPTVN1PROD with
Combined Notice of Filings #1
Take notice that the Commission
received the following electric rate
filings:
Docket Numbers: ER12–21–004;
ER12–1521–001; ER12–1522–001;
ER12–1626–001; ER10–2605–004.
Applicants: Agua Caliente Solar, LLC,
Alta Wind VII, LLC, Alta Wind IX, LLC,
Topaz Solar Farms LLC, Yuma
Cogeneration Associates.
Description: Notification of Change in
Status of the MidAmerican Southwest
MBR Sellers.
Filed Date: 12/7/12.
Accession Number: 20121207–5120.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER12–2617–001.
Applicants: Midwest Independent
Transmission System Operator, Inc.
Description: SA 2431 Glacial Ridge
Wind-GRE Deficiency Filing to be
effective 9/13/2012.
VerDate Mar<15>2010
16:21 Dec 14, 2012
Jkt 229001
Filed Date: 12/7/12.
Accession Number: 20121207–5027.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–360–001.
Applicants: Grand Ridge Energy LLC.
Description: Supplemental Filing of
Amended Co-Tenancy, and Shared
Facilities Agreement to be effective 11/
14/2012.
Filed Date: 12/7/12.
Accession Number: 20121207–5070.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–361–001.
Applicants: Grand Ridge Energy II
LLC.
Description: Supplemental Filing of
Amended Co-Tenancy, and Shared
Facilities Agreement to be effective 11/
14/2012.
Filed Date: 12/7/12.
Accession Number: 20121207–5072.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–362–001.
Applicants: Grand Ridge Energy III
LLC.
Description: Supplemental Filing of
Amended Co-Tenancy, and Shared
Facilities Agreement to be effective 11/
14/2012.
Filed Date: 12/7/12.
Accession Number: 20121207–5073.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–363–001.
Applicants: Grand Ridge Energy IV
LLC.
Description: Supplemental Filing of
Amended Co-Tenancy, and Shared
Facilities Agreement to be effective 11/
14/2012.
Filed Date: 12/7/12.
Accession Number: 20121207–5074.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–374–001.
Applicants: Grand Ridge Energy V
LLC.
Description: Grand Ridge Energy V
LLC submits tariff filing per 35.17(b):
Supplemental Filing of Amended CoTenancy, and Shared Facilities
Agreement to be effective 11/14/2012.
Filed Date: 12/7/12.
Accession Number: 20121207–5075.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–524–000.
Applicants: PJM Interconnection,
L.L.C.
Description: Original Service
Agreement No. 3445; Queue No. X1–073
to be effective 11/14/2012.
PO 00000
Frm 00020
Fmt 4703
Sfmt 4703
Filed Date: 12/6/12.
Accession Number: 20121206–5107.
Comments Due: 5 p.m. ET 12/27/12.
Docket Numbers: ER13–525–000.
Applicants: Pacific Gas and Electric
Company.
Description: 2nd Amendment to Gates
Solar Station LGIA WDT SA No. 87 to
be effective 12/4/2012.
Filed Date: 12/6/12.
Accession Number: 20121206–5129.
Comments Due: 5 p.m. ET 12/27/12.
Docket Numbers: ER13–526–000.
Applicants: ITC Midwest LLC.
Description: Filing of Executed
Agreement in Compliance with ER12–
2070 with Modification to be effective
8/20/2012.
Filed Date: 12/6/12.
Accession Number: 20121206–5143.
Comments Due: 5 p.m. ET 12/27/12.
Docket Numbers: ER13–527–000.
Applicants: Westar Energy, Inc.
Description: Kansas Electric Power
Cooperative, Inc., Balancing Area
Services Agreement to be effective 10/1/
2012.
Filed Date: 12/6/12.
Accession Number: 20121206–5161.
Comments Due: 5 p.m. ET 12/27/12.
Docket Numbers: ER13–528–000.
Applicants: Southwest Power Pool,
Inc.
Description: Revisions to Section 10—
Force Majeure and Indemnification to
be effective 2/5/2013.
Filed Date: 12/7/12.
Accession Number: 20121207–5065.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–529–000
Applicants: PJM Interconnection,
L.L.C.
Description: PJM Interconnection,
L.L.C. submits tariff filing per
35.13(a)(2)(iii: Revisions to the PJM
OATT Att DD re Avoidable Cost Rates
to be effective 2/5/2013.
Filed Date: 12/7/12.
Accession Number: 20121207–5076.
Comments Due: 5 p.m. ET 12/28/12.
Docket Numbers: ER13–530–000.
Applicants: Arizona Public Service
Company.
Description: Arizona Public Service
Company submits tariff filing per
35.13(a)(2)(iii: Ajo Improvement
Company Interconnection Agreement;
Service Agreement No. 326 to be
effective 12/28/2012.
E:\FR\FM\17DEN1.SGM
17DEN1
]]>Agencies
[Federal Register Volume 77, Number 242 (Monday, December 17, 2012)]
[Notices]
[Pages 74647-74652]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2012-30227]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
Agency Information Collection Activities: Proposed Collection,
Comment Request: Form TO, Annual Notice Filing for Counterparties to
Unreported Trade Options
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (``Commission'' or
``CFTC'') is announcing an opportunity for public comment on the
proposed collection of certain information by the agency. Under the
Paperwork Reduction Act (``PRA''), 44 U.S.C. 3501 et seq., Federal
agencies are required to publish notice in the Federal Register
concerning each proposed collection of information and to allow 60 days
for public comment. The Commission recently adopted a final rule and
interim final rule, as required by the Dodd-Frank Wall Street Reform
and Consumer Protection Act (``Dodd-Frank Act''), governing commodity
options. That rulemaking includes a requirement that counterparties to
unreported trade options must file an annual notice with the Commission
on new Form TO. This notice solicits comments on the reporting
requirement that would be imposed by Form TO.
DATES: Comments must be submitted on or before February 15, 2013.
ADDRESSES: You may submit comments, regarding the burden estimated or
any other aspect of the information collection, including suggestions
for reducing the burden. Please refer to ``Form TO, `Annual Notice
Filing for Counterparties to Unreported Trade Options''' in any
correspondence. Comments may be submitted by any of the following
methods:
Mail: Office of Information and Regulatory Affairs, Office
of Management and Budget, Attention: Desk Officer for CFTC, 725 17th
Street, Washington, DC 20503.
The Agency's Web site, at https://comments.cftc.gov/.
Follow the instructions for submitting comments through the Web site.
Mail: Sauntia S. Warfield, Assistant 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.
Federal eRulemaking Portal: https://www.regulations.gov.
[[Page 74648]]
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
www.cftc.gov. 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 Sec. 145.9
of the Commission's regulations.\1\
---------------------------------------------------------------------------
\1\ 17 CFR 145.9.
FOR FURTHER INFORMATION CONTACT: Donald Heitman, Senior Special
Counsel, (202) 418-5041, dheitman@cftc.gov, Division of Market
Oversight, or David Aron, Counsel, (202) 418-6621, daron@cftc.gov,
Office of the General Counsel, Commodity Futures Trading Commission,
---------------------------------------------------------------------------
Three Lafayette Centre, 1155 21st Street NW., Washington, DC 20581
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.
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. An agency may not conduct or
sponsor, and a person is not required to respond to, a collection of
information unless it displays a currently valid control number. To
comply with this requirement, the CFTC is publishing the notice of the
proposed collection of information listed below.
Abstract: In accordance with section 721 of the Dodd-Frank Act, on
April 27, 2012, the Commission published a final and interim final rule
governing commodity options (``Commodity Options Rules'').\2\ The final
rule portion of that rulemaking adopted the Commission's proposal to
generally permit market participants to trade commodity options, which
are statutorily defined as swaps,\3\ subject to the same rules
applicable to every other swap. The interim final rule portion of the
rulemaking includes a trade option exemption for physically delivered
commodity options purchased by commercial users of the commodities
underlying the options (``Trade Option Interim Final Rule'' or ``Trade
Option IFR''), subject to certain conditions. Those conditions, which
include both recordkeeping and reporting obligations, are primarily
intended to preserve a level of market visibility for the Commission
while reducing the regulatory compliance burden for market
participants.
---------------------------------------------------------------------------
\2\ 77 FR 25320, April 27, 2012.
\3\ See 7 U.S.C. 1a(47)(A)(i). Note that the swap definition
excludes options on futures (which must be traded on a designated
contract market (``DCM'') pursuant to part 33 of the Commission's
regulations) (see Commodity Exchange Act (``CEA'') section
1a(47)(B)(i), 7 U.S.C. 1a(47)(B)(i)), but it includes options on
physical commodities (whether or not traded on a DCM) (see CEA
section 1a(47)(A)(i), 7 U.S.C. 1a(47)(A)(i)). Other options excluded
from the statutory definition of swap are options on any security,
certificate of deposit, or group or index of securities, including
any interest therein or based on the value thereof, that are subject
to the Securities Act of 1933 and the Securities Exchange Act of
1934 (see CEA section 1a(47)(B)(iii), 7 U.S.C. 1a(47)(B)(iii)) and
foreign currency options entered into on a national securities
exchange registered pursuant to section 6(a) of the Securities
Exchange Act of 1934 (see CEA section 1a(47)(B)(iv), 7 U.S.C.
1a(47)(B)(iv)). Note also that the Commission's regulations define a
commodity option transaction or commodity option as ``any
transaction or agreement in interstate commerce which is or is held
out to be of the character of, or is commonly known to the trade as,
an `option,' `privilege,' `indemnity,' `bid,' `offer,' `call,'
`put,' `advance guaranty' or `decline guaranty'.'' 17 CFR 1.3(hh).
For purposes of this release, the Commission uses the term
``commodity options'' to apply solely to commodity options not
excluded from the swap definition set forth in CEA section
1a(47)(A), 7 U.S.C. 1a(47)(A). The Commission recently published, in
conjunction with the Securities and Exchange Commission (``SEC'')
final rules to further define, among other things, the term
``swap.'' See Further Definition of ``Swap,'' ``Security-Based
Swap,'' and ``Security-Based Swap Agreement''; Mixed Swaps;
Security-Based Swap Agreement; Final Rule, 77 FR 48207, August 13,
2012 (``Product Definitions Final Rules''). The Product Definitions
Final Rules address the determination of whether a commodity option
or a transaction with optionality is subject to the swap definition
in the first instance. If a commodity option or a transaction with
optionality is excluded from the scope of the swap definition (for
example, if it is an excluded forward contract--see id. at 48227),
the commodity options rules, including the Form TO reporting
requirement, are not applicable.
---------------------------------------------------------------------------
1. Recordkeeping Pursuant to Part 45 \4\
---------------------------------------------------------------------------
\4\ The Commission recently adopted final swap data
recordkeeping and reporting rules as new part 45 of the Commission's
regulations. See Swap Data Recordkeeping and Reporting Requirements
77 FR 2136, Jan. 13, 2012. The information in this notice regarding
part 45 recordkeeping and reporting is provided as background, in
order to describe Form TO in context. However, this notice applies
only to Form TO. The PRA implications of the part 45 recordkeeping
and reporting requirements were analyzed as part of the part 45
rulemaking process and discussed in the final swap data
recordkeeping and reporting rules.
---------------------------------------------------------------------------
The conditions set out in the Trade Option IFR include
recordkeeping requirements for any trade options activity, i.e., the
recordkeeping requirements of 17 CFR 45.2.\5\ Such records must be
maintained by all trade option participants pursuant to Sec. 45.2 and
made available to the Commission as specified therein.\6\ Section 45.2
applies different recordkeeping requirements, depending on the nature
of the counterparty. For example, if a trade option counterparty is a
swap dealer (``SD'') or major swap participant (``MSP''), it would be
subject to the comprehensive recordkeeping requirements of Sec.
45.2(a). If a counterparty is neither an SD nor an MSP, it would be
subject to the less stringent recordkeeping requirements of Sec.
45.2(b). The recordkeeping requirement is intended to ensure that trade
options market participants are able to provide pertinent information
regarding their trade options activity to the Commission, if requested.
---------------------------------------------------------------------------
\5\ 17 CFR 45.2, id. at 2198.
\6\ 17 CFR 45.2(h) provides that:
[a]ll records required to be kept pursuant to this section [17
CFR 45.2] by any registrant or its affiliates or by any non-SD/MSP
counterparty subject to the jurisdiction of the Commission shall be
open to inspection upon request by any representative of the
Commission, the United States Department of Justice, or the [SEC],
or by any representative of a prudential regulator as authorized by
the Commission. Copies of all such records shall be provided, at the
expense of the entity or person required to keep the record, to any
representative of the Commission upon request. Copies of records
required to be kept by any registrant shall be provided either by
electronic means, in hard copy, or both, as requested by the
Commission, with the sole exception that copies of records
originally created and exclusively maintained in paper form may be
provided in hard copy only. Copies of records required to be kept by
any non-SD/MSP counterparty subject to the jurisdiction of the
Commission that is not a Commission registrant shall be provided in
the form, whether electronic or paper, in which the records are
kept.
---------------------------------------------------------------------------
2. Reporting Pursuant to Part 45
In addition to part 45 recordkeeping (which applies in some form to
all trade options and trade option participants), the interim final
rule requires certain trade options to be reported pursuant to part
45's reporting provisions.\7\ Under the interim final rule, the
determination as to whether a trade option is required to be reported
pursuant to part 45 is based on the parties to the trade option and
whether or not they have previously reported swaps pursuant to part 45.
Specifically, if any trade option involves at least one counterparty
(whether as buyer or seller) that has (1) become obligated to comply
with the reporting requirements of part 45, (2) as a reporting party,
(3) during the twelve month period preceding the date on which the
trade option is entered into, (4) in connection with any non-trade
option swap trading activity, then such
[[Page 74649]]
trade option must also be reported pursuant to the reporting
requirements of part 45. If only one counterparty to a trade option has
previously complied with the part 45 reporting provisions, as described
above, then that counterparty shall be the part 45 reporting entity for
the trade option. If both counterparties have previously complied with
the part 45 reporting provisions, as described above, then the part 45
rules for determining the reporting party will apply.\8\
---------------------------------------------------------------------------
\7\ See 17 CFR 45.3-45.5, 77 FR at 2199-2204.
\8\ See 77 FR 25327, April 27, 2012, and 17 CFR 45.8.
---------------------------------------------------------------------------
By applying the part 45 reporting requirements to trade options in
this manner, the Commission will obtain greater transparency and
improved oversight of the swaps markets, both of which are primary
statutory objectives of Title VII of the Dodd-Frank Act.
The Commission believes, however, that greater transparency
regarding the trade options market must be balanced against the burdens
of frequent and near-instantaneous reporting required under part 45 of
the Commission's regulations on counterparties who are not otherwise
obligated to report because they do not have other reportable swap
activity. Accordingly, if neither counterparty to a trade option
already is complying with the reporting requirements of part 45 as a
reporting party in connection with its non-trade option swap trading
activities as described above,\9\ then such trade option is not
required to be reported pursuant to the reporting requirements of part
45.\10\
---------------------------------------------------------------------------
\9\ That is, neither counterparty to the trade option has
previously reported, as the reporting party, non-trade option swap
trading activity during the twelve months preceding the date on
which the trade option is entered into.
\10\ By taking this approach, the Commission ensures that no
market participant is compelled to comply with part 45's reporting
requirements based solely on its trade options activity.
---------------------------------------------------------------------------
3. Annual Notice Filing Alternative to Part 45 Reporting: Form TO
To the extent that neither counterparty to a trade option has
previously submitted reports to a swap data repository (``SDR'') as a
result of its swap trading activities as described above, the
Commission recognizes that requiring these entities to report trade
options to an SDR under part 45 of the Commission's regulations solely
with respect to their trade options activity would be costly and time
consuming. As an alternative, the Trade Option IFR requires any
counterparty to an otherwise unreported trade option to submit an
annual filing to the Commission for the purpose of providing notice
that it has entered into one or more unreported trade options in the
prior calendar year. Unlike with trade options subject to the part 45
reporting requirement, wherein only one counterparty to the trade
option reports the transaction to an SDR, the notice filing requirement
applies to both counterparties to an unreported trade option. Because
the purpose of the notice filing requirement is to identify to the
Commission those market participants engaging in unreported trade
options, the notice filing requirement applies whether or not such
counterparty has also been a non-reporting counterparty to a reported
trade option in the twelve months preceding the date on which the
unreported trade option was entered into. Market participants will
satisfy the annual notice filing requirement by completing and
submitting a new Commission form, Form TO, by March 1 following the end
of any calendar year during which the market participant entered into
one or more unreported trade options.
Form TO requires an unreported trade option counterparty to: (1)
Provide name and contact information, (2) identify the categories of
commodities (agricultural, metals, energy, or other) underlying one or
more unreported trade options which it entered into during the prior
calendar year, and (3) for each commodity category, estimate the
approximate aggregate value of the underlying physical commodities that
it either delivered or received in connection with the exercise of
unreported trade options during the prior calendar year. For the
purposes of item (3), a reporting counterparty should not include the
value of commodities that were the subject of trade options that
remained open at the end of the calendar year or the value of any trade
options that expired unexercised during the prior calendar year.
Pursuant to the interim final rule, Form TO is a mandatory annual
filing requirement. The form must be submitted to the Commission no
later than March 1 for the prior calendar year. For example, if a
market participant enters into one or more unreported trade options
between January 1, 2013 and December 31, 2013 (the first calendar year
for which a Form TO will be due to the Commission is 2013), the market
participant must submit a completed Form TO to the Commission on or
before March 1, 2014. Form TO is set out in the Trade Option IFR as
Appendix A to part 32 of the Commission's regulations.\11\ A copy of
Form TO is also appended to this notice. Form TO will be available
electronically on the Commission's Web site at least ninety days before
the first compliance date for filing the form, March 1, 2014. The Form
TO filing requirement is intended to provide the Commission a minimally
intrusive level of visibility into the unreported trade options market,
to guide the Commission's efforts to collect additional information
through its authority to obtain copies of books or records required to
be kept pursuant to the Act \12\ should market circumstances dictate,
and to enable the Commission to determine whether these counterparties
should be subject to more frequent and comprehensive reporting
obligations in the future.
---------------------------------------------------------------------------
\11\ See 77 FR 25320 at 25340-43.
\12\ See 17 CFR 1.31(a)(2) and 17 CFR 45.2(h).
---------------------------------------------------------------------------
The Trade Option IFR notice specifically requested comments on
trade option reporting and/or notice filing requirements.\13\ Those
comments may be found on the Commission's Web site, www.cftc.gov, at
https://comments.cftc.gov/PublicComments/CommentList.aspx?id=1196. All
comments received in response to the Trade Option IFR notice regarding
Form TO will be considered, along with the comments received in
response to this notice, in determining the Commission's final action
on Form TO.
---------------------------------------------------------------------------
\13\ See 77 FR 25320 at 25328.
---------------------------------------------------------------------------
If the Commission obtains information required to be kept through
this collection, it would protect proprietary information in accordance
with the Freedom of Information Act and 17 CFR part 145, ``Commission
Records and Information.'' In addition, Sec. 8(a)(1) of the Act
strictly prohibits the Commission, unless specifically authorized by
the Act, from making public ``data and information that would
separately disclose the business transactions or market positions of
any person and trade secrets or names of customers.'' \14\ The
Commission is also required to protect certain information contained in
a government system of records according to the Privacy Act of 1974, 5
U.S.C. 552a.
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\14\ 7 U.S.C. 12(a)(1).
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Burden Statement: The respondent burden for this collection is
estimated to be 2 hours per response. These estimates include the time
to: (1) Review the commodity categories that were the subject of
unreported trade options during the prior calendar year (including a
review of counterparties to such transactions to determine which trade
options were otherwise unreported); (2) estimate the value of
commodities actually delivered or
[[Page 74650]]
received pursuant to trade options in each category; and (3) prepare
and file Form TO electronically through the Commission's web-based Form
TO. The Commission estimates the average burden of this collection of
information as follows:
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\15\ The Commission estimates that entities will spend $100 per
hour. The $100 per hour estimate was used as the average hourly wage
rate in the PRA section of the Internal Business Conduct Standards
for Swap Dealers and Major Swap Participants final rule (See 77 FR
20128, 20194) and the wage rate for CCOs under the DCO final rules
(See 76 FR 69344, 69428). As the Commission explained in the
Internal Business Conduct Standards final rule, the estimate of $100
per hour was based on recent Bureau of Labor Statistics findings,
including the mean hourly wage of an employee under occupation code
23-1011, ``Lawyers,'' that is employed by the ``Securities and
Commodity Contracts Intermediation and Brokerage Industry,'' which
is $85.20. The mean hourly wage of an employee under occupation code
11-3031, ``Financial Manager,'' in the same industry is $80.90.
Additionally, SIFMA's ``Report on Management & Professional Earnings
in the Securities Industry--2011'' estimates the average wage of a
compliance attorney at $96.42 and a compliance specialist in the
U.S. at $74.85 per hour. As in those rules, the Commission is using
a $100 per hour wage rate in calculating the cost burdens imposed by
this collection of information and requests comment on the accuracy
of its estimate.
Estimated Annual Reporting Burden Hours and Burden Hour Costs
----------------------------------------------------------------------------------------------------------------
Annual number Frequency of Hours per
17 CFR of response per response and Total annual Total hours
respondents respondent cost responses cost
----------------------------------------------------------------------------------------------------------------
Part 32, Appendix A, Form TO 100 Annually....... 2 hours at $200 100 (one form $20,000 (100
per per otherwise responses
response.\15\ unreported times 2 hours
trade option per response,
participant). based on $100/
hour.)
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Respondents/Affected Entities: 100.
Estimated average number of responses: 100 (one form per year).
Estimated total average annual burden on respondents: 2 hours.
Frequency of collection: Annually.
Average total cost: $20,000.
There are no capital costs or operating and maintenance costs
associated with this collection. The Commission believes that, as part
of customary and usual business practices, all respondents already
create and store basic information on what they purchased or received
and how much it cost.
The Commission 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.
Appendix
[GRAPHIC] [TIFF OMITTED] TN17DE12.000
NOTICE: Failure to file a report required by the Commodity Exchange
Act (``CEA'' or the ``Act'') \17\ and the regulations thereunder,\18\
or the filing of a report with the Commodity Futures Trading Commission
(``CFTC'' or ``Commission'') that includes a false, misleading or
fraudulent statement or omits material facts that are required to be
reported therein or are necessary to make the report not misleading,
may (a) constitute a violation of section 6(c)(2) of the Act (7 USC 9,
15), section 9(a)(3) of the Act (7 USC 13(a)(3)), and/or section 1001
of Title 18, Crimes and Criminal Procedure (18 USC 1001) and (b) result
in punishment by fine or imprisonment, or both.
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\16\ A trade option is generally a commodity option purchased by
a commercial party that, upon exercise, results in the sale of a
physical commodity for immediate (spot) or deferred (forward)
shipment or delivery. See CFTC regulation 32.3(a) (17 CFR 32.3(a))
for more details. An unreported trade option is a trade option that
is not required to be reported to a swap data repository by either
counterparty pursuant to CFTC regulation 32.3(b)(1) and part 45 of
the Commission's regulations (17 CFR 32.3(b)(1); 17 CFR part 45).
\17\ 7 U.S.C. section 1, et seq.
\18\ Unless otherwise noted, the rules and regulations
referenced in this notice are found in chapter 1 of title 17 of the
Code of Federal Regulations; 17 CFR Chapter 1 et seq.
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PRIVACY ACT NOTICE
The Commission's authority for soliciting this information is
granted in sections 4c(b) and 8 of the CEA and related regulations
(see, e.g., 17 CFR Sec. 32.3(b)). The information solicited from
entities and individuals engaged in activities covered by the CEA is
[[Page 74651]]
required to be provided to the CFTC, and failure to comply may result
in the imposition of criminal or administrative sanctions (see, e.g., 7
U.S.C. Sec. Sec. 9 and 13a-1, and/or 18 U.S.C. 1001). The information
requested is most commonly used in the Commission's market and trade
practice surveillance activities to provide information concerning the
size and composition of the commodity derivatives markets. The
requested information may be used by the Commission in the conduct of
investigations and litigation and, in limited circumstances, may be
made public on an aggregate basis in accordance with provisions of the
CEA and other applicable laws. It may also be disclosed to other
government agencies to meet responsibilities assigned to them by law.
The information will be maintained in, and any additional disclosures
will be made in accordance with, the CFTC System of Records Notices,
available on www.cftc.gov. \19\
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\19\ Note that, under the Paperwork Reduction Act, an agency may
not conduct or sponsor, and a person is not required to respond to,
a collection of information unless it displays a currently valid
control number from the Office of Management and Budget.
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GENERAL INSTRUCTIONS
Who Must File a Form TO--17 CFR Sec. 32.3(b)(2) requires every
counterparty to an unreported trade option to submit an annual filing
to the Commission for the purpose of providing notice that it has
entered into one or more unreported trade options in the prior calendar
year. As noted above, an unreported trade option is a trade option that
is not required to be reported to a swap data repository by either
counterparty pursuant to CFTC regulation 32.3(b)(1) and part 45 of the
Commission's regulations.
When to file--Form TO is an annual filing requirement due to the
Commission no later than March 1 for the prior calendar year. For
example, if a market participant enters into one or more unreported
trade options between January 1, 2013 and December 31, 2013, the market
participant must submit a completed Form TO to the Commission on or
before March 1, 2014.
Where to file--Generally, Form TO should be submitted via the
CFTC's web based Form TO submission process at https://www.cftc.gov/, or
as otherwise instructed by the Commission or its designee. If
submission through the web-based Form TO is impossible, the reporting
counterparty shall contact the Commission at [techsupport@cftc.gov] or
202-418-5000 for further instructions.
What to File--All reporting counterparties filing a Form TO must
complete all questions.
Signature--Each Form TO submitted to the Commission must be signed
or otherwise authenticated by either (1) the reporting counterparty
submitting the form or (2) an individual that is duly authorized by the
reporting counterparty to provide the information and representations
contained in the form.
CFTC FORM TO
Name and Contact Information for Reporting Counterparty:
1. Reporting Counterparty
Name and Address (including City, State, Country, Zip/Postal Code):
Reporting Counterparty Web site (if any):
Reporting Counterparty Unique Identifier (if any):
------------------------------------------------------------------------
------------------------------------------------------------------------
[square] Legal Entity Identifier
``LEI'' (if any)
------------------------------------------------------------------------
[square] National Futures
Association ID Number (if any)
------------------------------------------------------------------------
[square] Other Party Identifier
(Please Specify)
------------------------------------------------------------------------
2. Reporting Counterparty Contact Person \20\
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\20\ This should be an individual able to answer specific
questions about the reporting counterparty's unreported trade
options activity if contacted by Commission staff.
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Name and Job Title and/or Relationship with Reporting Counterparty:
Phone Number and Email Address:
Commodity Category Indication:
3. In the prior calendar year, the Reporting Counterparty entered
into one or more unreported trade options in the following commodity
categories:
Agricultural \21\............................. [square] [square]
YES NO.
Metals \22\................................... [square] [square]
YES NO.
Energy \23\................................... [square] [square]
YES NO.
Other (Please Specify).................... [square] [square]
YES NO.
Approximate Size of Unreported Trade Options Exercised in the Prior
Calendar Year:
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\21\ Agricultural commodity is defined in the Commission's
regulations at 17 CFR 1.3(zz).
\22\ Including, but not limited to, gold, silver, platinum,
palladium, copper, aluminum, and rare earth metals.
\23\ Including, but not limited to, petroleum products, natural
gas, and electricity.
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4. Please indicate, by commodity category, the approximate total
value (quantity received/delivered multiplied by price paid/received)
of physical commodities that the reporting counterparty purchased and/
or delivered in connection with the exercise of unreported trade
options in the prior calendar year: \24\
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\24\ For the purposes of answering this question, a reporting
counterparty should not include the value of commodities that were
the subject of trade options that remained open at the end of the
prior calendar year or any trade options that expired unexercised
during the prior calendar year.
[[Page 74652]]
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Agricultural.................... [square] None..... [square] Under [square] $10M to [square] Over
$10M. $100M. $100M
----------------------------------------------------------------------------------------------------------------
Metals.......................... [square] None..... [square] Under [square] $10M to [square] Over
$10M. $100M. $100M
----------------------------------------------------------------------------------------------------------------
Energy.......................... [square] None..... [square] Under [square] $10M to [square] Over
$10M. $100M. $100M
----------------------------------------------------------------------------------------------------------------
Other....................... [square] None..... [square] Under [square] $10M to [square] Over
$10M. $100M. $100M
----------------------------------------------------------------------------------------------------------------
Signature/Authentication, Name, and Date
[square] By checking this box and submitting this Form TO (or by
clicking ``submit,'' ``send,'' or any other analogous transmission
command if transmitting electronically), I certify that I am duly
authorized by the reporting counterparty identified below to provide
the information and representations submitted on this Form TO, and that
the information and representations are true and correct.
Reporting Counterparty Authorized Representative (Name and
Position):
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(Name)
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(Position)
Submitted on behalf of:
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(Reporting Counterparty)
Date of Submission:
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Dated: December 11, 2012.
Sauntia S. Warfield,
Assistant Secretary of the Commission.
[FR Doc. 2012-30227 Filed 12-14-12; 8:45 am]
BILLING CODE P
