Fees for Reviews of the Rule Enforcement Programs of Designated Contract Markets and Registered Futures Associations, 29546-29547 [2018-13511]
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29546
Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices
COMMODITY FUTURES TRADING
COMMISSION
Fees for Reviews of the Rule
Enforcement Programs of Designated
Contract Markets and Registered
Futures Associations
Commodity Futures Trading
Commission.
ACTION: Notice of 2017 schedule of fees.
AGENCY:
The Commodity Futures
Trading Commission (‘‘CFTC’’ or
‘‘Commission’’) charges fees to
designated contract markets and
registered futures associations to recover
the costs incurred by the Commission in
the operation of its program of oversight
of self-regulatory organization rule
enforcement programs, specifically
National Futures Association (‘‘NFA’’), a
registered futures association, and the
designated contract markets. Fees
collected from each self-regulatory
organization are deposited in the
Treasury of the United States as
miscellaneous receipts. The calculation
of the fee amounts charged for 2017 by
this notice is based upon an average of
actual program costs incurred during
fiscal year (‘‘FY’’) 2014, FY 2015, and
FY 2016.
DATES: Each self-regulatory organization
is required to remit electronically the
applicable fee on or before August 24,
2018.
FOR FURTHER INFORMATION CONTACT:
Mary Jean Buhler, Chief Financial
Officer, Commodity Futures Trading
Commission; (202) 418–5089; Three
Lafayette Centre, 1155 21st Street NW,
Washington, DC 20581. For information
on electronic payment, contact Jennifer
Fleming; (202) 418–5034; Three
Lafayette Centre, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background Information
A. General
This notice relates to fees for the
Commission’s review of the rule
enforcement programs at the registered
futures associations 1 and designated
contract markets (‘‘DCM’’), each of
which is a self-regulatory organization
(‘‘SRO’’) regulated by the Commission.
The Commission recalculates the fees
charged each year to cover the costs of
operating this Commission program.2
The fees are set each year based on
direct program costs, plus an overhead
factor. The Commission calculates
actual costs, then calculates an alternate
fee taking volume into account, and
then charges the lower of the two.3
B. Overhead Rate
The fees charged by the Commission
to the SROs are designed to recover
program costs, including direct labor
costs and overhead. The overhead rate
is calculated by dividing total
Commission-wide overhead direct
program labor costs into the total
amount of the Commission-wide
overhead pool. For this purpose, direct
program labor costs are the salary costs
of personnel working in all Commission
programs. Overhead costs generally
consist 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): 180 percent for FY 2014, 211
percent for FY 2015, and 190 percent for
FY 2016.
C. Conduct of SRO Rule Enforcement
Reviews
Under the formula adopted by the
Commission in 1993, the Commission
calculates the fee to recover the costs of
its rule enforcement reviews and
examinations, based on the three-year
average of the actual cost of performing
such reviews and examinations at each
SRO. The cost of operation of the
Commission’s SRO oversight program
varies from SRO to SRO, according to
the size and complexity of each SRO’s
program. The three-year averaging
computation method is intended to
smooth out year-to-year variations in
cost. Timing of the Commission’s
reviews and examinations may affect
costs—a review or examination may
span two fiscal years and reviews and
examinations are not conducted at each
SRO each year.
As noted above, adjustments to actual
costs may be made to relieve the burden
on an SRO with a disproportionately
large share of program costs. The
Commission’s formula provides for a
reduction in the assessed fee if an SRO
has a smaller percentage of United
States industry contract volume than its
percentage of overall Commission
oversight program costs. This
adjustment reduces the costs so that, as
a percentage of total Commission SRO
oversight program costs, they are in line
with the pro rata percentage for that
SRO of United States industry-wide
contract volume.
The calculation is made as follows:
The fee required to be paid to the
Commission by each DCM is equal to
the lesser of actual costs based on the
three-year historical average of costs for
that DCM or one-half of average costs
incurred by the Commission for each
DCM for the most recent three years,
plus a pro rata share (based on average
trading volume for the most recent three
years) of the aggregate of average annual
costs of all DCMs for the most recent
three years.
The formula for calculating the
second factor is: 0.5a + 0.5 vt = current
fee. In this formula, ‘‘a’’ equals the
average annual costs, ‘‘v’’ equals the
percentage of total volume across DCMs
over the last three years, and ‘‘t’’ equals
the average annual costs for all DCMs.
NFA has no contracts traded; hence, its
fee is based simply on costs for the most
recent three fiscal years. The following
table summarizes the data used in the
calculations of the resulting fee for each
entity:
TABLE 1—SUMMARY OF DATA USED IN FEE CALCULATIONS
Actual total costs
amozie on DSK3GDR082PROD with NOTICES1
FY 2014
CBOE Futures ...................................................
Chicago Board of Trade ....................................
Chicago Mercantile Exchange ..........................
ICE Futures U.S ................................................
Minneapolis Grain Exchange ............................
NADEX North American ....................................
1 National Futures Association is the only
registered futures association.
VerDate Sep<11>2014
17:58 Jun 22, 2018
Jkt 244001
FY 2015
....................
$55,515
225,701
81,176
47,648
980
FY 2016
$158,209
17,938
540,151
105,864
147,983
....................
$227,059
28,720
372,278
386,719
14,314
81,758
3-Year
average
actual costs
$128,423
34,058
379,377
191,253
69,981
27,579
2 See Section 237 of the Futures Trading Act of
1982, 7 U.S.C. 16a, and 31 U.S.C. 9701. For a
broader discussion of the history of Commission
fees, see 52 FR 46070, Dec. 4, 1987.
PO 00000
Frm 00019
Fmt 4703
Sfmt 4703
3-Year
average
volume
(%)
Adjusted
volume
costs
1.31
29.61
44.66
9.22
0.05
0.14
$71,004
170,554
421,246
143,431
35,250
14,516
2016
Actual
fee
$73,074
79,476
385,923
153,429
69,741
17,505
2017
Assessed
fee
$71,004
34,058
379,377
143,431
35,250
14,516
3 58 FR 42643, Aug. 11, 1993, and 17 CFR part
1, appendix B.
E:\FR\FM\25JNN1.SGM
25JNN1
29547
Federal Register / Vol. 83, No. 122 / Monday, June 25, 2018 / Notices
TABLE 1—SUMMARY OF DATA USED IN FEE CALCULATIONS—Continued
Actual total costs
3-Year
average
volume
(%)
Adjusted
volume
costs
2016
Actual
fee
2017
Assessed
fee
FY 2014
FY 2015
FY 2016
3-Year
average
actual costs
New York Mercantile Exchange ........................
One Chicago .....................................................
NASDAQ ...........................................................
ERIS Exchange .................................................
NY LIFFE ..........................................................
ELX Futures ......................................................
KCBT .................................................................
225,672
31,196
....................
....................
....................
....................
....................
118,701
289
....................
....................
....................
....................
....................
242,792
282
....................
....................
....................
....................
....................
195,722
10,589
....................
....................
....................
....................
....................
14.49
0.29
0.21
0.01
....................
....................
....................
172,990
6,798
1,089
68
....................
....................
....................
159,897
28,384
....................
....................
4,909
22,378
186
172,990
6,798
....................
....................
....................
....................
....................
Subtotal ......................................................
National Futures Association ............................
667,888
292,102
1,089,134
401,337
1,353,921
282,405
$1,036,981
325,281
100
....................
1,036,945
....................
994,901
293,312
857,423
325,281
Total ....................................................
959,990
1,490,471
1,636,326
1,362,262
....................
....................
$1,288,214
1,182,704
Note to Table 1: The 2017 Fee is the lesser of the 3-Year Average Actual Cost or the Adjusted Volume Cost. NY LIFFE, ELX, and KCBT are either Vacated or
Dormant, but had direct labor costs in 2013 that produced a fee in 2016, based on the 3-Year Average.
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 =
$34,058.
b. The alternative computation is: (.5)
($34,058) + (.5) (.2961) ($1,036,981) =
$170,554.
c. The fee is the lesser of a or b; in
this case $34,058.
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 2014 through 2016 was $325,281.
The fee to be paid by the NFA for the
current fiscal year is $325,281.
II. Schedule of Fees
Fees for the Commission’s review of
the rule enforcement programs at the
registered futures associations and
DCMs regulated by the Commission are
as shown in the following table:
TABLE 2—SCHEDULE OF FEES
3-Year
average
volume
(%)
Adjusted
volume
costs
2017 Fee:
lesser of
actual or
calculated fee
CBOE Futures .................................................................................................
Chicago Board of Trade ..................................................................................
Chicago Mercantile Exchange .........................................................................
ICE Futures U.S ..............................................................................................
Minneapolis Grain Exchange ...........................................................................
NADEX North American ..................................................................................
New York Mercantile Exchange ......................................................................
One Chicago ....................................................................................................
NASDAQ ..........................................................................................................
ERIS Exchange ...............................................................................................
NY LIFFE .........................................................................................................
ELX Futures .....................................................................................................
KCBT ...............................................................................................................
$128,423
34,058
379,377
191,253
69,981
27,579
195,722
10,589
........................
........................
........................
........................
........................
1.31
29.61
44.66
9.22
0.05
0.14
14.49
0.29
0.21
0.01
........................
........................
........................
$71,004
170,554
421,246
143,431
35,250
14,516
172,990
6,798
1,089
68
........................
........................
........................
$71,004
34,058
379,377
143,431
35,250
14,516
172,990
6,798
........................
........................
........................
........................
........................
Subtotal .....................................................................................................
National Futures Association ...........................................................................
1,036,981
325,281
100
........................
1,036,945
........................
857,423
325,281
Total ...................................................................................................
amozie on DSK3GDR082PROD with NOTICES1
3-Year
average
actual costs
1,362,262
........................
........................
1,182,704
III. Payment Method
The Debt Collection Improvement Act
(‘‘DCIA’’) requires deposits of fees owed
to the government by electronic transfer
of funds. See 31 U.S.C. 3720. For
information about electronic payments,
please contact Jennifer Fleming at (202)
418–5034 or jfleming@cftc.gov, or see
the CFTC website at www.cftc.gov,
specifically, www.cftc.gov/cftc/
cftcelectronicpayments.htm.
Fees collected from each selfregulatory organization shall be
deposited in the Treasury of the United
VerDate Sep<11>2014
17:58 Jun 22, 2018
Jkt 244001
States as miscellaneous receipts. See 7
U.S.C. 16a.
Issued in Washington, DC, on June 19,
2018, by the Commission.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2018–13511 Filed 6–22–18; 8:45 am]
BILLING CODE 6351–01–P
PO 00000
COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Notice of Intent To Renew
Collection 3038–0021, Regulations
Governing Bankruptcies of Commodity
Brokers
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
The Commodity Futures
Trading Commission (CFTC or
SUMMARY:
Frm 00020
Fmt 4703
Sfmt 4703
E:\FR\FM\25JNN1.SGM
25JNN1
]]>Agencies
[Federal Register Volume 83, Number 122 (Monday, June 25, 2018)]
[Notices]
[Pages 29546-29547]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-13511]
[[Page 29546]]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
Fees for Reviews of the Rule Enforcement Programs of Designated
Contract Markets and Registered Futures Associations
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of 2017 schedule of fees.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (``CFTC'' or
``Commission'') charges fees to designated contract markets and
registered futures associations to recover the costs incurred by the
Commission in the operation of its program of oversight of self-
regulatory organization rule enforcement programs, specifically
National Futures Association (``NFA''), a registered futures
association, and the designated contract markets. Fees collected from
each self-regulatory organization are deposited in the Treasury of the
United States as miscellaneous receipts. The calculation of the fee
amounts charged for 2017 by this notice is based upon an average of
actual program costs incurred during fiscal year (``FY'') 2014, FY
2015, and FY 2016.
DATES: Each self-regulatory organization is required to remit
electronically the applicable fee on or before August 24, 2018.
FOR FURTHER INFORMATION CONTACT: Mary Jean Buhler, Chief Financial
Officer, Commodity Futures Trading Commission; (202) 418-5089; Three
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. For
information on electronic payment, contact Jennifer Fleming; (202) 418-
5034; Three Lafayette Centre, 1155 21st Street NW, Washington, DC
20581.
SUPPLEMENTARY INFORMATION:
I. Background Information
A. General
This notice relates to fees for the Commission's review of the rule
enforcement programs at the registered futures associations \1\ and
designated contract markets (``DCM''), each of which is a self-
regulatory organization (``SRO'') regulated by the Commission. The
Commission recalculates the fees charged each year to cover the costs
of operating this Commission program.\2\ The fees are set each year
based on direct program costs, plus an overhead factor. The Commission
calculates actual costs, then calculates an alternate fee taking volume
into account, and then charges the lower of the two.\3\
---------------------------------------------------------------------------
\1\ National Futures Association is the only registered futures
association.
\2\ See Section 237 of the Futures Trading Act of 1982, 7 U.S.C.
16a, and 31 U.S.C. 9701. For a broader discussion of the history of
Commission fees, see 52 FR 46070, Dec. 4, 1987.
\3\ 58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, appendix B.
---------------------------------------------------------------------------
B. Overhead Rate
The fees charged by the Commission to the SROs are designed to
recover program costs, including direct labor costs and overhead. The
overhead rate is calculated by dividing total Commission-wide overhead
direct program labor costs into the total amount of the Commission-wide
overhead pool. For this purpose, direct program labor costs are the
salary costs of personnel working in all Commission programs. Overhead
costs generally consist 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): 180 percent for FY 2014,
211 percent for FY 2015, and 190 percent for FY 2016.
C. Conduct of SRO Rule Enforcement Reviews
Under the formula adopted by the Commission in 1993, the Commission
calculates the fee to recover the costs of its rule enforcement reviews
and examinations, based on the three-year average of the actual cost of
performing such reviews and examinations at each SRO. The cost of
operation of the Commission's SRO oversight program varies from SRO to
SRO, according to the size and complexity of each SRO's program. The
three-year averaging computation method is intended to smooth out year-
to-year variations in cost. Timing of the Commission's reviews and
examinations may affect costs--a review or examination may span two
fiscal years and reviews and examinations are not conducted at each SRO
each year.
As noted above, adjustments to actual costs may be made to relieve
the burden on an SRO with a disproportionately large share of program
costs. The Commission's formula provides for a reduction in the
assessed fee if an SRO has a smaller percentage of United States
industry contract volume than its percentage of overall Commission
oversight program costs. This adjustment reduces the costs so that, as
a percentage of total Commission SRO oversight program costs, they are
in line with the pro rata percentage for that SRO of United States
industry-wide contract volume.
The calculation is made as follows: The fee required to be paid to
the Commission by each DCM is equal to the lesser of actual costs based
on the three-year historical average of costs for that DCM or one-half
of average costs incurred by the Commission for each DCM for the most
recent three years, plus a pro rata share (based on average trading
volume for the most recent three years) of the aggregate of average
annual costs of all DCMs for the most recent three years.
The formula for calculating the second factor is: 0.5a + 0.5 vt =
current fee. In this formula, ``a'' equals the average annual costs,
``v'' equals the percentage of total volume across DCMs over the last
three years, and ``t'' equals the average annual costs for all DCMs.
NFA has no contracts traded; hence, its fee is based simply on costs
for the most recent three fiscal years. The following table summarizes
the data used in the calculations of the resulting fee for each entity:
Table 1--Summary of Data Used in Fee Calculations
--------------------------------------------------------------------------------------------------------------------------------------------------------
Actual total costs 3-Year
--------------------------------------- average 3-Year Adjusted 2016 2017
actual average volume Actual fee Assessed
FY 2014 FY 2015 FY 2016 costs volume (%) costs fee
--------------------------------------------------------------------------------------------------------------------------------------------------------
CBOE Futures.................................... ........... $158,209 $227,059 $128,423 1.31 $71,004 $73,074 $71,004
Chicago Board of Trade.......................... $55,515 17,938 28,720 34,058 29.61 170,554 79,476 34,058
Chicago Mercantile Exchange..................... 225,701 540,151 372,278 379,377 44.66 421,246 385,923 379,377
ICE Futures U.S................................. 81,176 105,864 386,719 191,253 9.22 143,431 153,429 143,431
Minneapolis Grain Exchange...................... 47,648 147,983 14,314 69,981 0.05 35,250 69,741 35,250
NADEX North American............................ 980 ........... 81,758 27,579 0.14 14,516 17,505 14,516
[[Page 29547]]
New York Mercantile Exchange.................... 225,672 118,701 242,792 195,722 14.49 172,990 159,897 172,990
One Chicago..................................... 31,196 289 282 10,589 0.29 6,798 28,384 6,798
NASDAQ.......................................... ........... ........... ........... ........... 0.21 1,089 ........... ...........
ERIS Exchange................................... ........... ........... ........... ........... 0.01 68 ........... ...........
NY LIFFE........................................ ........... ........... ........... ........... ........... ........... 4,909 ...........
ELX Futures..................................... ........... ........... ........... ........... ........... ........... 22,378 ...........
KCBT............................................ ........... ........... ........... ........... ........... ........... 186 ...........
-------------------------------------------------------------------------------------------------------
Subtotal.................................... 667,888 1,089,134 1,353,921 $1,036,981 100 1,036,945 994,901 857,423
National Futures Association.................... 292,102 401,337 282,405 325,281 ........... ........... 293,312 325,281
-------------------------------------------------------------------------------------------------------
Total................................... 959,990 1,490,471 1,636,326 1,362,262 ........... ........... $1,288,214 1,182,704
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note to Table 1: The 2017 Fee is the lesser of the 3-Year Average Actual Cost or the Adjusted Volume Cost. NY LIFFE, ELX, and KCBT are either Vacated or
Dormant, but had direct labor costs in 2013 that produced a fee in 2016, based on the 3-Year Average.
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 = $34,058.
b. The alternative computation is: (.5) ($34,058) + (.5) (.2961)
($1,036,981) = $170,554.
c. The fee is the lesser of a or b; in this case $34,058.
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 2014 through 2016 was $325,281. The fee to be paid by the NFA for
the current fiscal year is $325,281.
II. Schedule of Fees
Fees for the Commission's review of the rule enforcement programs
at the registered futures associations and DCMs regulated by the
Commission are as shown in the following table:
Table 2--Schedule of Fees
----------------------------------------------------------------------------------------------------------------
2017 Fee:
3-Year 3-Year Adjusted lesser of
average average volume costs actual or
actual costs volume (%) calculated fee
----------------------------------------------------------------------------------------------------------------
CBOE Futures.................................... $128,423 1.31 $71,004 $71,004
Chicago Board of Trade.......................... 34,058 29.61 170,554 34,058
Chicago Mercantile Exchange..................... 379,377 44.66 421,246 379,377
ICE Futures U.S................................. 191,253 9.22 143,431 143,431
Minneapolis Grain Exchange...................... 69,981 0.05 35,250 35,250
NADEX North American............................ 27,579 0.14 14,516 14,516
New York Mercantile Exchange.................... 195,722 14.49 172,990 172,990
One Chicago..................................... 10,589 0.29 6,798 6,798
NASDAQ.......................................... .............. 0.21 1,089 ..............
ERIS Exchange................................... .............. 0.01 68 ..............
NY LIFFE........................................ .............. .............. .............. ..............
ELX Futures..................................... .............. .............. .............. ..............
KCBT............................................ .............. .............. .............. ..............
---------------------------------------------------------------
Subtotal.................................... 1,036,981 100 1,036,945 857,423
National Futures Association.................... 325,281 .............. .............. 325,281
---------------------------------------------------------------
Total................................... 1,362,262 .............. .............. 1,182,704
----------------------------------------------------------------------------------------------------------------
III. Payment Method
The Debt Collection Improvement Act (``DCIA'') requires deposits of
fees owed to the government by electronic transfer of funds. See 31
U.S.C. 3720. For information about electronic payments, please contact
Jennifer Fleming at (202) 418-5034 or [email protected], or see the
CFTC website at www.cftc.gov, specifically, www.cftc.gov/cftc/cftcelectronicpayments.htm.
Fees collected from each self-regulatory organization shall be
deposited in the Treasury of the United States as miscellaneous
receipts. See 7 U.S.C. 16a.
Issued in Washington, DC, on June 19, 2018, by the Commission.
Christopher Kirkpatrick,
Secretary of the Commission.
[FR Doc. 2018-13511 Filed 6-22-18; 8:45 am]
BILLING CODE 6351-01-P
