Annual Adjustment of Civil Monetary Penalties To Reflect Inflation-2019, 3103-3105 [2019-01852]
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Federal Register / Vol. 84, No. 28 / Monday, February 11, 2019 / Rules and Regulations
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2019–01731 Filed 2–8–19; 8:45 am]
Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at
(202) 418–5327 or ericcobene@cftc.gov,
Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
BILLING CODE 3510–HR–P
COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 143
RIN 3038–AE69
Annual Adjustment of Civil Monetary
Penalties To Reflect Inflation—2019
Commodity Futures Trading
Commission.
ACTION: Final rule.
AGENCY:
The Commodity Futures
Trading Commission (Commission) is
amending its rules governing the
maximum amount of civil monetary
penalties to adjust for inflation. This
rule sets forth the maximum, inflationadjusted dollar amount for civil
monetary penalties (CMPs) assessable
for violations of the Commodity
Exchange Act (CEA) and Commission
rules, regulations and orders
thereunder. The rule, as amended,
implements the Federal Civil Penalties
Inflation Adjustment Act of 1990, as
amended.
DATES: This rule is effective on February
11, 2019 and is applicable to penalties
assessed after January 15, 2019.
SUMMARY:
I. Background
The Federal Civil Penalties Inflation
Adjustment Act of 1990 (FCPIAA) 1
requires the head of each Federal agency
to periodically adjust for inflation the
minimum and maximum amount of
CMPs provided by law within the
jurisdiction of that agency.2 A 2015
amendment to the FCPIAA 3 required
agencies to make an initial ‘‘catch-up’’
adjustment to its civil monetary
penalties effective no later than August
1, 2016.4 For every year thereafter
effective not later than January 15, the
FCPIAA, as amended, requires agencies
to make annual adjustments for
inflation, with guidance from the
Director of the Office of Management
and Budget.5
II. Commodity Exchange Act Civil
Monetary Penalties
The following sections of the CEA
provide for CMPs that meet the FCPIAA
definition 6 and these CMPs are,
therefore, subject to the inflation
3103
adjustment: Sections 6(c), 6b, and 6c of
the CEA.7
III. Annual Inflation Adjustment for
Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation
adjustment, in the context of the CFTC’s
CMPs, is determined by increasing the
maximum penalty by a ‘‘cost-of-living
adjustment’’, rounded to the nearest
multiple of one dollar.8 Annual
inflation adjustments are based on the
percent change between the October
Consumer Price Index for all Urban
Consumers (CPI–U) preceding the date
of the adjustment, and the prior year’s
October CPI–U.9 In this case, the
October 2018 CPI–U (252.885)/October
2017 CPI–U (246.663) = 1.02522.10 In
order to complete the 2019 annual
adjustment, the CFTC must multiply
each of its most recent CMP amounts by
the multiplier, 1.02522, and round to
the nearest dollar.11
B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual
inflation adjustment methodology
results in the following amended CMPs:
Violations occurring on or after 11/02/2015
U.S. code citation
Penalty
amount in
2018 final
rule 12
Civil monetary penalty description
CPI–U
multiplier
New adjusted
penalty
amount
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of
the Commodity Exchange
Act).
7 U.S.C. 13a (Section 6b of
the Commodity Exchange
Act).
For any person other than a
registered entity 1.
Non-Manipulation or Attempted Manipulation.
For any person other than a
registered entity 1.
For a registered entity 1 or
any of its directors, officers
or employees.
Manipulation or Attempted
Manipulation.
Non-Manipulation or Attempted Manipulation.
1 The FCPIAA, Public Law 101–410 (1990), as
amended, is codified at 28 U.S.C. 2461 note. The
FCPIAA states that the purpose of the FCPIAA is
to establish a mechanism that (1) allows for regular
adjustment for inflation of civil monetary penalties;
(2) maintains the deterrent effect of civil monetary
penalties and promote compliance with the law;
and (3) improves the collection by the Federal
Government of civil monetary penalties.
2 For the relevant CMPs within the Commission’s
jurisdiction, the Act provides only for maximum
amounts that can be assessed for each violation of
the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth
any minimum penalties. Therefore, the remainder
of this release will refer only to CMP maximums.
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3 Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114–74, 129
Stat. 584 (2015) (2015 Act), title VII, Section 701.
4 FCPIAA Sections 4 and 5. See also, Adjustment
of Civil Monetary Penalties for Inflation, 81 FR
41435 (June 27, 2016).
5 FCPIAA Sections 4 and 5. See also, Executive
Office of the President, Office of Management and
Budget Memorandum, M–19–04, Implementation of
Penalty Inflation Adjustments for 2019, Pursuant to
the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015 (Dec. 14, 2018) (2018
OMB Guidance) (https://www.whitehouse.gov/wpcontent/uploads/2017/11/m_19_04.pdf).
6 FCPIAA Section 3(2).
7 7 U.S.C. 9, 13a–1, 13b. Criminal authorities may
also seek fines for criminal violations of the CEA
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Fmt 4700
Sfmt 4700
$161,115
1.02552
$165,227
$1,162,183
1.02552
$1,191,842
$887,509
1.02552
$910,158
(see 7 U.S.C. 13, 13(c), 13(d), 13(e), and 13b). The
FCPIA does not affect the amounts of these criminal
penalties.
8 FCPIAA Sections 4 and 5.
9 FCPIAA Section 5(b)(1).
10 The CPI–U is published by the Department of
Labor. Interested parties may find the relevant
Consumer Price Index on the internet. To access
this information, go to the Consumer Price Index
Home Page at: http://www.bls.gov/cpi/. Click the
‘‘CPI Data/Databases’’ heading, and select ‘‘All
Urban Consumers (Current Series)’’, ‘‘Top Picks.’’
Then check the box for ‘‘U.S. All items, 1982–84
= 100—CUUR0000SA0’’, and click the ‘‘Retrieve
data’’ button.
11 2018 OMB Guidance at 3.
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Federal Register / Vol. 84, No. 28 / Monday, February 11, 2019 / Rules and Regulations
For a registered entity 1 or
any of its directors, officers
or employees.
Manipulation or Attempted
Manipulation.
$1,162,183
1.02552
$1,191,842
$177,501
1.02552
$182,031
$1,162,183
1.02552
$1,191,842
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c
of the Commodity Exchange Act).
1 The
Any Person ...........................
Non-Manipulation or Attempted Manipulation.
Any Person ...........................
Manipulation or Attempted
Manipulation.
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
The FCPIAA provides that any
increase under the FCPIAA in a civil
monetary penalty shall apply only to
civil monetary penalties, including
those whose associated violation
predated such increase, which are
assessed after the date the increase takes
effect.’’ 13 Thus, the new CMP amounts
established by this rulemaking shall
apply to penalties assessed after January
15, 2019, for violations that occurred on
or after November 2, 2015, the effective
date of the FCPIAA amendment
requiring annual adjustments, the 2015
Act.
IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted
from the Administrative Procedure Act
(APA) the rulemakings required to
implement annual inflation
adjustments.14 ‘‘This means that the
public procedure the APA generally
requires (i.e.,—notice, an opportunity
for comment, and a delay in effective
date) is not required for agencies to
issue regulations implementing the
annual adjustment.’’ 15 The Commission
further notes that the notice and
comment procedures of the APA do not
apply to this rulemaking because the
Commission is acting herein pursuant to
statutory language that mandates that
the Commission act in a
nondiscretionary matter.16
B. Regulatory Flexibility Act
The Regulatory Flexibility Act 17
requires agencies with rulemaking
authority to consider the impact of
certain of their rules on small
12 83
FR 9426.
Section 6.
14 FCPIAA Section 4(b)(2).
15 2018 OMB Guidance at 4.
16 Lake Carriers’ Ass’n v. E.P.A., 652 F.3d 1, 10
(D.C. Cir. 2011).
17 5 U.S.C. 601–612.
13 FCPIAA
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19:51 Feb 08, 2019
Jkt 247001
businesses. A regulatory flexibility
analysis is only required for rules for
which the agency publishes a general
notice of proposed rulemaking pursuant
to section 553(b) or any other law.18
Because, as discussed above, the
Commission is not obligated by section
553(b) or any other law to publish a
general notice of proposed rulemaking
with respect to the revisions being made
to § 143.8, the Commission additionally
is not obligated to conduct a regulatory
flexibility analysis.
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995
(PRA),19 which imposes certain
requirements on Federal agencies,
including the Commission, in
connection with their conducting or
sponsoring any collection of
information as defined by the PRA, does
not apply to this rule. This rule
amendment does not contain
information collection requirements that
require the approval of the Office of
Management and Budget.
D. Consideration of Costs and Benefits
Section 15(a) of the CEA 20 requires
the Commission to consider the costs
and benefits of its action before issuing
a new regulation. Section 15(a) further
specifies that costs and benefits shall be
evaluated in light of five broad areas of
market and public concern: (1)
Protection of market participants and
the public; (2) efficiency,
competitiveness, and financial integrity
of futures markets; (3) price discovery;
(4) sound risk management practices;
and (5) other public interest
considerations.
The Commission believes that
benefits of this rulemaking greatly
outweigh the costs, if any. As the
18 5
U.S.C. 603(a).
U.S.C. 3507(d).
20 7 U.S.C. 19(a).
19 44
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Fmt 4700
Sfmt 4700
Commission understands, the statutory
provisions by which it is making costof-living adjustments to the CMPs in
§ 143.8 were enacted to ensure that
CMPs do not lose their deterrence value
because of inflation. An analysis of the
costs and benefits of these adjustments
were made before enactment of the
statutory provisions under which the
Commission is operating, and limit the
discretion of the Commission to the
extent that there are no regulatory
choices the Commission could make
that would supersede the pre-enactment
analysis with respect to the five factors
enumerated in section 15(a), or any
other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the
preamble, the Commodity Futures
Trading Commission amends part 143 of
title 17 of the Code of Federal
Regulations as follows:
PART 143—COLLECTION OF CLAIMS
OWED THE UNITED STATES ARISING
FROM ACTIVITIES UNDER THE
COMMISSION’S JURISDICTION
1. The authority citation for part 143
continues to read as follows:
■
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a,
13a–1(d), 13(a), 13b; 31 U.S.C. 3701–3720E;
28 U.S.C. 2461 note.
■
2. Revise § 143.8(b) to read as follows:
§ 143.8 Inflation-adjusted civil monetary
penalties.
*
*
*
*
*
(b) 2019 Inflation adjustment. The
maximum amount of each civil
monetary penalty in the following
charts applies to penalties assessed after
January 15, 2019:
(1) For non-manipulation or
attempted manipulation violations:
E:\FR\FM\11FER1.SGM
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Federal Register / Vol. 84, No. 28 / Monday, February 11, 2019 / Rules and Regulations
TABLE 1 TO PARAGRAPH (b)(1)
Date of violation and corresponding penalty
U.S. code citation
Civil monetary penalty description
10/23/2004
through
10/22/2008
10/23/2008
through
10/22/2012
10/23/2012
through
11/01/2015
11/02/2015
to present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
$130,000
$130,000
$140,000
$165,227
$625,000
$675,000
$700,000
$910,158
$140,000
$182,031
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
$130,000
$140,000
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For manipulation or attempted
manipulation violations:
TABLE 1 TO PARAGRAPH (b)(2)
Date of violation and corresponding penalty
U.S. code citation
Civil monetary penalty description
10/23/2004
through
05/21/2008
05/22/2008
through
08/14/2011
08/15/2011
through
11/01/2015
11/02/2015
to present
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
7 U.S.C. 9 (Section 6(c) of the Commodity Exchange Act).
7 U.S.C. 13a (Section 6b of the
Commodity Exchange Act).
For any person other than a registered entity 1.
For a registered entity 1 or any of its
directors, officers or employees.
$130,000
$1,000,000
$1,025,000
$1,191,842
$625,000
$1,000,000
$1,025,000
$1,191,842
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
7 U.S.C. 13a–1 (Section 6c of the
Commodity Exchange Act).
1 The
Any Person .......................................
$130,000
$1,000,000
$1,025,000
$1,191,842
term ‘‘Registered Entity’’ is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on February 6,
2019, by the Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not
appear in the Code of Federal Regulations.
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19:51 Feb 08, 2019
Jkt 247001
Civil Penalty Assessment for Misuse of
Department of the Treasury Names,
Symbols, Etc.
Department of the Treasury.
ACTION: Direct final rule.
This rule amends regulations
that provide civil penalties for misuse of
Department of the Treasury names,
symbols, etc. to implement the Federal
Civil Penalties Inflation Adjustment Act
of 1990, as amended by the Federal
Civil Penalties Inflation Adjustment Act
Improvements Act of 2015. In
particular, this rule adjusts for inflation
the maximum amount of the civil
monetary penalties that may be assessed
under its regulations, and updates the
inflation adjustments through 2018 in
accordance with instructions from the
Office of Management and Budget. In
SUMMARY:
On this matter, Chairman Giancarlo, and
Commissioners Quintenz, Behnam, Stump,
and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
BILLING CODE 6351–01–P
31 CFR Part 27
AGENCY:
Appendix to Adjustment of Civil
Monetary Penalties for Inflation—
Commission Voting Summary
[FR Doc. 2019–01852 Filed 2–8–19; 8:45 am]
DEPARTMENT OF THE TREASURY
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Frm 00011
Fmt 4700
Sfmt 4700
addition, the regulation is amended to
reflect changes in Treasury
organizational structure.
DATES: This rule is effective April 12,
2019. Written comments are due on or
before March 13, 2019. If the
Department receives significant adverse
comments, we will publish a timely
withdrawal in the Federal Register
informing the public that this rule will
not take effect.
ADDRESSES: You may submit comments
by any of the following methods:
• Federal eRulemaking Portal: http://
www.regulations.gov.
• Mail: Richard Dodson, AttorneyAdvisor, General Law, Ethics, and
Regulation, U.S. Department of the
Treasury, 1500 Pennsylvania Avenue
NW, Washington, DC 20220.
Comments received by mail will be
considered timely if they are
postmarked on or before the comment
date. The www.regulations.gov site will
accept comments until 11:59 p.m.
E:\FR\FM\11FER1.SGM
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Agencies
[Federal Register Volume 84, Number 28 (Monday, February 11, 2019)]
[Rules and Regulations]
[Pages 3103-3105]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-01852]
=======================================================================
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COMMODITY FUTURES TRADING COMMISSION
17 CFR Part 143
RIN 3038-AE69
Annual Adjustment of Civil Monetary Penalties To Reflect
Inflation--2019
AGENCY: Commodity Futures Trading Commission.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (Commission) is
amending its rules governing the maximum amount of civil monetary
penalties to adjust for inflation. This rule sets forth the maximum,
inflation-adjusted dollar amount for civil monetary penalties (CMPs)
assessable for violations of the Commodity Exchange Act (CEA) and
Commission rules, regulations and orders thereunder. The rule, as
amended, implements the Federal Civil Penalties Inflation Adjustment
Act of 1990, as amended.
DATES: This rule is effective on February 11, 2019 and is applicable to
penalties assessed after January 15, 2019.
FOR FURTHER INFORMATION CONTACT: Edward J. Riccobene, Associate Chief
Counsel, Division of Enforcement, at (202) 418-5327 or
ericcobene@cftc.gov, Commodity Futures Trading Commission, 1155 21st
Street NW, Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
The Federal Civil Penalties Inflation Adjustment Act of 1990
(FCPIAA) \1\ requires the head of each Federal agency to periodically
adjust for inflation the minimum and maximum amount of CMPs provided by
law within the jurisdiction of that agency.\2\ A 2015 amendment to the
FCPIAA \3\ required agencies to make an initial ``catch-up'' adjustment
to its civil monetary penalties effective no later than August 1,
2016.\4\ For every year thereafter effective not later than January 15,
the FCPIAA, as amended, requires agencies to make annual adjustments
for inflation, with guidance from the Director of the Office of
Management and Budget.\5\
---------------------------------------------------------------------------
\1\ The FCPIAA, Public Law 101-410 (1990), as amended, is
codified at 28 U.S.C. 2461 note. The FCPIAA states that the purpose
of the FCPIAA is to establish a mechanism that (1) allows for
regular adjustment for inflation of civil monetary penalties; (2)
maintains the deterrent effect of civil monetary penalties and
promote compliance with the law; and (3) improves the collection by
the Federal Government of civil monetary penalties.
\2\ For the relevant CMPs within the Commission's jurisdiction,
the Act provides only for maximum amounts that can be assessed for
each violation of the Act or the rules, regulations and orders
promulgated thereunder; the Act does not set forth any minimum
penalties. Therefore, the remainder of this release will refer only
to CMP maximums.
\3\ Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Public Law 114-74, 129 Stat. 584 (2015)
(2015 Act), title VII, Section 701.
\4\ FCPIAA Sections 4 and 5. See also, Adjustment of Civil
Monetary Penalties for Inflation, 81 FR 41435 (June 27, 2016).
\5\ FCPIAA Sections 4 and 5. See also, Executive Office of the
President, Office of Management and Budget Memorandum, M-19-04,
Implementation of Penalty Inflation Adjustments for 2019, Pursuant
to the Federal Civil Penalties Inflation Adjustment Act Improvements
Act of 2015 (Dec. 14, 2018) (2018 OMB Guidance) (https://www.whitehouse.gov/wp-content/uploads/2017/11/m_19_04.pdf).
---------------------------------------------------------------------------
II. Commodity Exchange Act Civil Monetary Penalties
The following sections of the CEA provide for CMPs that meet the
FCPIAA definition \6\ and these CMPs are, therefore, subject to the
inflation adjustment: Sections 6(c), 6b, and 6c of the CEA.\7\
---------------------------------------------------------------------------
\6\ FCPIAA Section 3(2).
\7\ 7 U.S.C. 9, 13a-1, 13b. Criminal authorities may also seek
fines for criminal violations of the CEA (see 7 U.S.C. 13, 13(c),
13(d), 13(e), and 13b). The FCPIA does not affect the amounts of
these criminal penalties.
---------------------------------------------------------------------------
III. Annual Inflation Adjustment for Commodity Exchange Act Civil
Monetary Penalties
A. Methodology
The FCPIAA annual inflation adjustment, in the context of the
CFTC's CMPs, is determined by increasing the maximum penalty by a
``cost-of-living adjustment'', rounded to the nearest multiple of one
dollar.\8\ Annual inflation adjustments are based on the percent change
between the October Consumer Price Index for all Urban Consumers (CPI-
U) preceding the date of the adjustment, and the prior year's October
CPI-U.\9\ In this case, the October 2018 CPI-U (252.885)/October 2017
CPI-U (246.663) = 1.02522.\10\ In order to complete the 2019 annual
adjustment, the CFTC must multiply each of its most recent CMP amounts
by the multiplier, 1.02522, and round to the nearest dollar.\11\
---------------------------------------------------------------------------
\8\ FCPIAA Sections 4 and 5.
\9\ FCPIAA Section 5(b)(1).
\10\ The CPI-U is published by the Department of Labor.
Interested parties may find the relevant Consumer Price Index on the
internet. To access this information, go to the Consumer Price Index
Home Page at: http://www.bls.gov/cpi/. Click the ``CPI Data/
Databases'' heading, and select ``All Urban Consumers (Current
Series)'', ``Top Picks.'' Then check the box for ``U.S. All items,
1982-84 = 100--CUUR0000SA0'', and click the ``Retrieve data''
button.
\11\ 2018 OMB Guidance at 3.
---------------------------------------------------------------------------
B. Civil Monetary Penalty Adjustments
Applying the FCPIAA annual inflation adjustment methodology results
in the following amended CMPs:
----------------------------------------------------------------------------------------------------------------
Violations occurring on or after 11/02/2015
-----------------------------------------------
U.S. code citation Civil monetary penalty Penalty amount
description in 2018 final CPI-U New adjusted
rule \12\ multiplier penalty amount
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person Non- $161,115 1.02552 $165,227
the Commodity Exchange Act). other than a Manipulation
registered or Attempted
entity \1\. Manipulation.
For any person Manipulation or $1,162,183 1.02552 $1,191,842
other than a Attempted
registered Manipulation.
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered Non- $887,509 1.02552 $910,158
the Commodity Exchange Act). entity \1\ or Manipulation
any of its or Attempted
directors, Manipulation.
officers or
employees.
[[Page 3104]]
For a registered Manipulation or $1,162,183 1.02552 $1,191,842
entity \1\ or Attempted
any of its Manipulation.
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... Non- $177,501 1.02552 $182,031
the Commodity Exchange Act). Manipulation
or Attempted
Manipulation.
Any Person...... Manipulation or $1,162,183 1.02552 $1,191,842
Attempted
Manipulation.
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
The FCPIAA provides that any increase under the FCPIAA in a civil
monetary penalty shall apply only to civil monetary penalties,
including those whose associated violation predated such increase,
which are assessed after the date the increase takes effect.'' \13\
Thus, the new CMP amounts established by this rulemaking shall apply to
penalties assessed after January 15, 2019, for violations that occurred
on or after November 2, 2015, the effective date of the FCPIAA
amendment requiring annual adjustments, the 2015 Act.
---------------------------------------------------------------------------
\12\ 83 FR 9426.
\13\ FCPIAA Section 6.
---------------------------------------------------------------------------
IV. Administrative Compliance
A. Notice Requirement
The FCPIAA specifically exempted from the Administrative Procedure
Act (APA) the rulemakings required to implement annual inflation
adjustments.\14\ ``This means that the public procedure the APA
generally requires (i.e.,--notice, an opportunity for comment, and a
delay in effective date) is not required for agencies to issue
regulations implementing the annual adjustment.'' \15\ The Commission
further notes that the notice and comment procedures of the APA do not
apply to this rulemaking because the Commission is acting herein
pursuant to statutory language that mandates that the Commission act in
a nondiscretionary matter.\16\
---------------------------------------------------------------------------
\14\ FCPIAA Section 4(b)(2).
\15\ 2018 OMB Guidance at 4.
\16\ Lake Carriers' Ass'n v. E.P.A., 652 F.3d 1, 10 (D.C. Cir.
2011).
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act \17\ requires agencies with
rulemaking authority to consider the impact of certain of their rules
on small businesses. A regulatory flexibility analysis is only required
for rules for which the agency publishes a general notice of proposed
rulemaking pursuant to section 553(b) or any other law.\18\ Because, as
discussed above, the Commission is not obligated by section 553(b) or
any other law to publish a general notice of proposed rulemaking with
respect to the revisions being made to Sec. 143.8, the Commission
additionally is not obligated to conduct a regulatory flexibility
analysis.
---------------------------------------------------------------------------
\17\ 5 U.S.C. 601-612.
\18\ 5 U.S.C. 603(a).
---------------------------------------------------------------------------
C. Paperwork Reduction Act
The Paperwork Reduction Act of 1995 (PRA),\19\ which imposes
certain requirements on Federal agencies, including the Commission, in
connection with their conducting or sponsoring any collection of
information as defined by the PRA, does not apply to this rule. This
rule amendment does not contain information collection requirements
that require the approval of the Office of Management and Budget.
---------------------------------------------------------------------------
\19\ 44 U.S.C. 3507(d).
---------------------------------------------------------------------------
D. Consideration of Costs and Benefits
Section 15(a) of the CEA \20\ requires the Commission to consider
the costs and benefits of its action before issuing a new regulation.
Section 15(a) further specifies that costs and benefits shall be
evaluated in light of five broad areas of market and public concern:
(1) Protection of market participants and the public; (2) efficiency,
competitiveness, and financial integrity of futures markets; (3) price
discovery; (4) sound risk management practices; and (5) other public
interest considerations.
---------------------------------------------------------------------------
\20\ 7 U.S.C. 19(a).
---------------------------------------------------------------------------
The Commission believes that benefits of this rulemaking greatly
outweigh the costs, if any. As the Commission understands, the
statutory provisions by which it is making cost-of-living adjustments
to the CMPs in Sec. 143.8 were enacted to ensure that CMPs do not lose
their deterrence value because of inflation. An analysis of the costs
and benefits of these adjustments were made before enactment of the
statutory provisions under which the Commission is operating, and limit
the discretion of the Commission to the extent that there are no
regulatory choices the Commission could make that would supersede the
pre-enactment analysis with respect to the five factors enumerated in
section 15(a), or any other factors.
List of Subjects in 17 CFR Part 143
Civil monetary penalties, Claims.
For the reasons set forth in the preamble, the Commodity Futures
Trading Commission amends part 143 of title 17 of the Code of Federal
Regulations as follows:
PART 143--COLLECTION OF CLAIMS OWED THE UNITED STATES ARISING FROM
ACTIVITIES UNDER THE COMMISSION'S JURISDICTION
0
1. The authority citation for part 143 continues to read as follows:
Authority: 7 U.S.C. 9, 15, 9a, 12a(5), 13a, 13a-1(d), 13(a),
13b; 31 U.S.C. 3701-3720E; 28 U.S.C. 2461 note.
0
2. Revise Sec. 143.8(b) to read as follows:
Sec. 143.8 Inflation-adjusted civil monetary penalties.
* * * * *
(b) 2019 Inflation adjustment. The maximum amount of each civil
monetary penalty in the following charts applies to penalties assessed
after January 15, 2019:
(1) For non-manipulation or attempted manipulation violations:
[[Page 3105]]
Table 1 to Paragraph (b)(1)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. code citation penalty 10/23/2004 10/23/2008 10/23/2012
description through 10/22/ through 10/22/ through 11/01/ 11/02/2015 to
2008 2012 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $130,000 $140,000 $165,227
the Commodity Exchange Act). other than a
registered
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered $625,000 $675,000 $700,000 $910,158
the Commodity Exchange Act). entity \1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... $130,000 $140,000 $140,000 $182,031
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
(2) For manipulation or attempted manipulation violations:
Table 1 to Paragraph (b)(2)
----------------------------------------------------------------------------------------------------------------
Date of violation and corresponding penalty
Civil monetary ---------------------------------------------------------------
U.S. code citation penalty 10/23/2004 05/22/2008 08/15/2011
description through 05/21/ through 08/14/ through 11/01/ 11/02/2015 to
2008 2011 2015 present
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by the Commission in an Administrative Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 9 (Section 6(c) of For any person $130,000 $1,000,000 $1,025,000 $1,191,842
the Commodity Exchange Act). other than a
registered
entity \1\.
7 U.S.C. 13a (Section 6b of For a registered $625,000 $1,000,000 $1,025,000 $1,191,842
the Commodity Exchange Act). entity \1\ or
any of its
directors,
officers or
employees.
----------------------------------------------------------------------------------------------------------------
Civil Monetary Penalty Imposed by a Federal District Court in a Civil Injunctive Action
----------------------------------------------------------------------------------------------------------------
7 U.S.C. 13a-1 (Section 6c of Any Person...... $130,000 $1,000,000 $1,025,000 $1,191,842
the Commodity Exchange Act).
----------------------------------------------------------------------------------------------------------------
\1\ The term ``Registered Entity'' is defined in 7 U.S.C. 1a (Section 1a of the Commodity Exchange Act).
Issued in Washington, DC, on February 6, 2019, by the
Commission.
Robert Sidman,
Deputy Secretary of the Commission.
Note: The following appendix will not appear in the Code of
Federal Regulations.
Appendix to Adjustment of Civil Monetary Penalties for Inflation--
Commission Voting Summary
On this matter, Chairman Giancarlo, and Commissioners Quintenz,
Behnam, Stump, and Berkovitz voted in the affirmative. No
Commissioner voted in the negative.
[FR Doc. 2019-01852 Filed 2-8-19; 8:45 am]
BILLING CODE 6351-01-P