Revised Registration Form 7-R, 8671-8696 [2019-04297]
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Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
ericssharkguide@yahoo.com or at (386)
852–8588. Pre-registration is highly
recommended, but not required.
Registration Materials
To ensure that workshop certificates
are linked to the correct permits,
participants will need to bring the
following specific items to the
workshop:
• Atlantic shark dealer permit holders
must bring proof that the attendee is an
owner or agent of the business (such as
articles of incorporation), a copy of the
applicable permit, and proof of
identification.
• Atlantic shark dealer proxies must
bring documentation from the permitted
dealer acknowledging that the proxy is
attending the workshop on behalf of the
permitted Atlantic shark dealer for a
specific business location, a copy of the
appropriate valid permit, and proof of
identification.
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Workshop Objectives
The Atlantic Shark Identification
Workshops are designed to reduce the
number of unknown and improperly
identified sharks reported in the dealer
reporting form and increase the
accuracy of species-specific dealerreported information. Reducing the
number of unknown and improperly
identified sharks will improve quota
monitoring and the data used in stock
assessments. These workshops will train
shark dealer permit holders or their
proxies to properly identify Atlantic
shark carcasses.
Safe Handling, Release, and
Identification Workshops
Since January 1, 2007, shark limitedaccess and swordfish limited-access
permit holders who fish with longline
or gillnet gear have been required to
submit a copy of their Safe Handling,
Release, and Identification Workshop
certificate in order to renew either
permit (71 FR 58057; October 2, 2006).
These certificate(s) are valid for 3 years.
Certificates issued in 2016 will be
expiring in 2019. As such, vessel
owners who have not already attended
a workshop and received a NMFS
certificate, or vessel owners whose
certificate(s) will expire prior to the next
permit renewal, must attend a workshop
to fish with, or renew, their swordfish
and shark limited-access permits.
Additionally, new shark and swordfish
limited-access permit applicants who
intend to fish with longline or gillnet
gear must attend a Safe Handling,
Release, and Identification Workshop
and submit a copy of their workshop
certificate before either of the permits
will be issued. Approximately 310 free
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Safe Handling, Release, and
Identification Workshops have been
conducted since 2006.
In addition to certifying vessel
owners, at least one operator on board
vessels issued a limited-access
swordfish or shark permit that uses
longline or gillnet gear is required to
attend a Safe Handling, Release, and
Identification Workshop and receive a
certificate. Vessels that have been issued
a limited-access swordfish or shark
permit and that use longline or gillnet
gear may not fish unless both the vessel
owner and operator have valid
workshop certificates onboard at all
times. Vessel operators who have not
already attended a workshop and
received a NMFS certificate, or vessel
operators whose certificate(s) will
expire prior to their next fishing trip,
must attend a workshop to operate a
vessel with swordfish and shark
limited-access permits that uses
longline or gillnet gear.
Workshop Dates, Times, and Locations
1. April 3, 2019, 9 a.m.–5 p.m., Hilton
Garden Inn, 55 Town Center Boulevard,
Palm Coast, FL 32164.
2. April 11, 2019, 9 a.m.–5 p.m.,
Hilton Garden Inn, 1 Thurber Street,
Warwick, RI 02886.
3. May 2, 2019, 9 a.m.–5 p.m., Hilton
Garden Inn, 5353 North Virginia Dare
Trail, Kitty Hawk, NC 27949.
4. May 15, 2019, 9 a.m.–5 p.m., Hilton
Inn, 901 Airline Drive, Kenner, LA
70062.
5. June 7, 2019, 9 a.m.–5 p.m.,
Hampton Inn, 230 Lee Burbank
Highway, Revere, MA 02151.
6. June 10, 2019, 9 a.m.–5 p.m.,
Courtyard by Marriott, 2 15th Street,
Ocean City, MD 21842.
the business (such as articles of
incorporation), a copy of the applicable
swordfish and/or shark permit(s), and
proof of identification.
• Vessel operators must bring proof of
identification.
Workshop Objectives
The Safe Handling, Release, and
Identification Workshops are designed
to teach longline and gillnet fishermen
the required techniques for the safe
handling and release of entangled and/
or hooked protected species, such as sea
turtles, marine mammals, and
smalltooth sawfish, and prohibited
sharks. In an effort to improve reporting,
the proper identification of protected
species and prohibited sharks will also
be taught at these workshops.
Additionally, individuals attending
these workshops will gain a better
understanding of the requirements for
participating in these fisheries. The
overall goal of these workshops is to
provide participants with the skills
needed to reduce the mortality of
protected species and prohibited sharks,
which may prevent additional
regulations on these fisheries in the
future.
Authority: 16 U.S.C. 1801 et seq.
Dated: March 5, 2019.
Karen H. Abrams,
Acting Director, Office of Sustainable
Fisheries, National Marine Fisheries Service.
[FR Doc. 2019–04302 Filed 3–8–19; 8:45 am]
BILLING CODE 3510–22–P
COMMODITY FUTURES TRADING
COMMISSION
Revised Registration Form 7–R
Registration
AGENCY:
To register for a scheduled Safe
Handling, Release, and Identification
Workshop, please contact Angler
Conservation Education at (386) 682–
0158. Pre-registration is highly
recommended, but not required.
SUMMARY:
Registration Materials
To ensure that workshop certificates
are linked to the correct permits,
participants will need to bring the
following specific items with them to
the workshop:
• Individual vessel owners must
bring a copy of the appropriate
swordfish and/or shark permit(s), a copy
of the vessel registration or
documentation, and proof of
identification.
• Representatives of a businessowned or co-owned vessel must bring
proof that the individual is an agent of
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Commodity Futures Trading
Commission.
ACTION: Notice of revised form.
The Commodity Futures
Trading Commission (the
‘‘Commission’’ or ‘‘CFTC’’) is revising
its Form 7–R, the application form that
entities must use to register with the
Commission as a commodity pool
operator, commodity trading advisor,
introducing broker, floor trader firm,
retail foreign exchange dealer, futures
commission merchant, leverage
transaction merchant, swap dealer, or
major swap participant (collectively,
‘‘applicants’’).
DATES: Implementation date: The new,
revised version of Form 7–R shall be
implemented (and the prior version
shall be superseded) as of the date upon
which the National Futures Association
(‘‘NFA’’) makes the new, revised version
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Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
of the Form 7–R available on the NFA
website for use by applicants.
FOR FURTHER INFORMATION CONTACT:
Matthew Kulkin, Director, 202–418–
5213, mkulkin@cftc.gov; or Christopher
Cummings, Special Counsel, 202–418–
5445, ccummings@cftc.gov, Division of
Swap Dealer and Intermediary
Oversight, Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
Entities that engage in certain
specified business in the derivatives
markets regulated by the Commission
are required to register with the
Commission by filing a completed Form
7–R with NFA.1 These applicants
include: Futures commission
merchants, retail foreign exchange
dealers, introducing brokers, commodity
trading advisors, commodity pool
operators, leverage transaction
merchants, swap dealers, major swap
participants, and floor trader firms.2
Applicants have been required to use
Form 7–R since 1977.3 In the past, Form
7–R also was used to register with NFA
and to apply for NFA membership.
Form 7–R requests information about
the applicant that can be used to assess
the applicant’s fitness to engage in
business in the registration categories
referenced above. Although Form 7–R is
a Commission form, it is maintained
and used primarily by the NFA.4
Pursuant to section 17(o) of the
Commodity Exchange Act (‘‘Act’’),5
Regulation 3.2,6 and a series of orders,
the Commission delegated to NFA
certain registration functions including,
among other things, the processing of all
Form 7–R filings.7 Since the first
1 17
CFR 3.10(a)(2), 3.11(a), and 3.12(c).
CFR 3.11(a); 3.12(c).
3 Revision of Registration Forms and Amendment
of Related Rules, 42 FR 23988 (May 11, 1977) (Form
7–R replaced Forms 1–R, 5–R and 6–R).
4 NFA is currently the only registered futures
association authorized by the Commission in
accordance with section 17 of the Commodity
Exchange Act.
5 7 U.S.C. 21(o) (2012).
6 17 CFR 3.2.
7 See, e.g., Introducing Brokers and Associated
Persons of Introducing Brokers; Authorization of
National Futures Association to Perform
Commission Registration Functions, 48 FR 35158
(Aug. 3, 1983); Performance of Registration
Functions by National Futures Association, 49 FR
39593 (Oct. 9, 1984) (futures commission
merchants, commodity pool operators, commodity
trading advisors, and associated persons thereof);
Performance of Registration Functions by National
Futures Association; Delegation of Authorities;
Performance of Registration Functions by National
Futures Association with Respect to Floor Traders
and Floor Brokers, 58 FR 19657 (Apr. 15, 1993); and
Performance of Registration Functions by National
Futures Association with Respect to Swap Dealers
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delegation to NFA in 1983, NFA has
developed substantial expertise in
registration matters, including
reviewing and processing completed
Forms 7–R. In 2002, with the approval
of the Commission, NFA transitioned
from a paper-based registration system
to an online registration system that
utilizes, among other things, an
electronic version of Form 7–R.8
II. Revisions to Commission Form 7–R
NFA has requested that the
Commission make several changes to
Form 7–R.9 Upon consideration of
NFA’s request, the Commission is
revising and updating Form 7–R. In
addition, the Commission is updating
the Form 7–R Privacy Act and
Paperwork Reduction Act Statements.
The Form 7–R revisions are described in
this Notice.10
First, revised Form 7–R incorporates
new functionality throughout the form,
consisting of hyperlinks to the text of
the applicable provisions of the Act,
Commission regulations, and NFA
Rules, whenever those authorities are
referenced in the form. Additionally,
Form 7–R incorporates certain clarifying
language where appropriate. For
example, the term ‘‘futures’’ has been
replaced with the term ‘‘derivatives’’ in
several locations to more accurately
reflect the full scope of the
Commission’s jurisdiction. Similarly,
the reference to a failure ‘‘to pay an
award issued in a futures-related
arbitration’’ was replaced with the
phrase ‘‘failure to pay an award related
to a CFTC-related product.’’
In the section titled ‘‘Location of
Business Records,’’ revised Form 7–R no
longer separately requests that non-U.S.
applicants identify the non-U.S. address
where their business records are
located. Instead, both U.S. and non-U.S.
applicants are required to comply only
with the existing requirements of Form
7–R to identify the location of their
business records, which remain
unchanged, and, for non-U.S.
applicants, to indicate that such records
will be produced for inspection at
NFA’s offices, or at another physical
location (not a post office box) within
the U.S. that the applicant identifies.
In the section titled ‘‘Holding
Company Information,’’ the revised
and Major Swap Participants, 77 FR 2708 (Jan. 19,
2012).
8 Registration of Intermediaries, 67 FR 38869
(June 6, 2002).
9 Request from NFA to CFTC, dated March 23,
2018. This communication is on file with the
Commission.
10 This Notice describes the technical changes to
Form 7–R. The Commission also is making a
number of minor, non-substantive changes to Form
7–R that are not described herein.
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Form 7–R requests additional
information about any entity that is a
principal (as defined in Form 7–R) of
the applicant. Form 7–R previously
required applicants to identify by name
any entity that was a principal of the
applicant. The revised Form 7–R
requires that, for each entity that is
principal of the applicant, the applicant
must provide the entity’s Federal EIN
and the location where the entity is
incorporated, organized, or established.
This additional information is intended
to ensure accurate identification of the
entity, given that firms sometimes can
have the same or similar names.
The sections in Form 7–R titled
‘‘Disciplinary Information—Criminal
Disclosures,’’ ‘‘Disciplinary
Information—Regulatory Disclosures,’’
and ‘‘Disciplinary Information—
Financial Disclosures’’ contain a series
of questions that inquire about the
disciplinary history of the applicant.
These questions are designed to identify
and gather information that may reflect
on the fitness of the applicant and
whether the applicant may be subject to
a statutory disqualification from
registration.11 To this end, in the section
titled ‘‘Disciplinary Information—
Regulatory Disclosures,’’ a new question
was added to existing Question E.
Among other things, Question E
inquires whether the applicant violated,
or aided and abetted the violation of,
any investment-related statutes or
regulations, a potential statutory basis
for refusing or conditioning
registration.12 The new question directs
the applicant to disclose whether it has
ever been found to have ‘‘failed to
supervise another person’s activities
under any investment-related statute or
regulation.’’ 13 The new question is
intended to ensure complete disclosure
of conduct that may result in a refusal
or limitation on registration.
Separately, NFA is simplifying the
process by which it requests
supplemental information and
documentation regarding the applicant’s
criminal, regulatory, or financial
disclosures. The prior version of Form
7–R requested that applicants provide a
written explanation of the facts and
circumstances regarding any such
disclosures. Applicants were also
separately requested to provide NFA
with copies of pertinent documents
associated with each disclosure. To
consolidate and modernize this process,
the revised Form 7–R allows applicants
to complete a separate ‘‘Disclosure
Matter Page’’ for each matter, instance,
11 See
7 U.S.C. 12(a) and (3) (2012).
U.S.C. 12(a)(3).
13 See 7 U.S.C. 12(a)(3)(C).
12 7
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or event requiring disclosure and to
simultaneously upload all pertinent
documents associated with each
disclosure. The Disclosure Matter Page
provides applicants with an efficient
and effective method of supplying the
supplemental information and
documentation that NFA requests in the
normal course whenever an applicant
responds affirmatively to any of the
questions regarding criminal, regulatory
or financial disclosures.
Lastly, questions that pertain only to
NFA membership have been removed
from the form. As noted above, in the
past, Form 7–R functioned both as a
registration form for the Commission
and NFA, and as an application for NFA
membership. To the extent that
questions ask for information that is
necessary for NFA membership but is
not necessary for registration, those
questions have been removed from the
form and will appear in a separate
application for NFA membership.
Specifically, revised Form 7–R no
longer contains: a series of questions
that inquire whether the applicant will
transact in retail off-exchange foreign
currency, swap, futures, or options; a
question that is directed to applicants
that are registering in multiple
capacities that asks them to select the
capacity in which they intend to vote on
NFA membership matters; the question
that asks applicants that are applying to
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register as a futures commission
merchant to indicate whether the
applicant has ‘‘applied for membership
at any United States commodity
exchange;’’ a question that asks
applicants that are applying for
registration as a swap dealer or major
swap participant to indicate whether the
applicant is currently regulated by other
U.S. regulators and to identify those
regulators; and lastly, contact
information for the applicant’s
Membership Contact, Accounting
Contact, Assessment Fee Contact,
Arbitration Contact, Compliance
Contact, or Chief Compliance Officer
Contact.
A revised version of Form 7–R that
incorporates the changes discussed in
this Notice, as well as other minor, nonsubstantive changes, is set forth in
Appendix 2 to this Notice.
III. Related Matters
Paperwork Reduction Act
Recordkeeping or information
collection requirements under the
Paperwork Reduction Act (‘‘PRA’’)
related to Form 7–R exist under current
law. The titles for the existing
information collections are
‘‘Registration Under the Commodity
Exchange Act,’’ Office of Management
and Budget (‘‘OMB’’) control number
3038–0023, and ‘‘Registration of Swap
Dealers and Major Swap Participants,’’
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8673
OMB control number 3038–0072. The
preliminary view of the Commission is
that the revisions to Form 7–R may
modify the existing recordkeeping or
information collection requirements
under the PRA. To ensure compliance
with the PRA, the Commission,
concurrently with this Notice, is
publishing in the Federal Register a
separate notice and request for comment
on the amended PRA burden associated
with the revised Form 7–R. The
Commission also will submit to OMB an
information collection request to amend
the information collection, in
accordance with 44 U.S.C. 3506(c)(2)(A)
and 5 CFR 1320.8(d).
Issued in Washington, DC, on March 5,
2019, by the Commission.
Christopher Kirkpatrick,
Secretary of the Commission.
Appendices to Notice of Revised
Form—Commission Voting Summary
and Revised Registration Form 7–R
Appendix 1—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.
Appendix 2—Revised Registration
Form 7–R
BILLING CODE 6351–01–P
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READ THESE INSTRUCTIONS CAREFULLY BEFORE COMPLETING OR
REVIEWING THE APPLICATION. THE FAILURE TO ANSWER ALL QUESTIONS
COMPLETELY AND ACCURATELY OR THE OMISSION OF REQUIRED
INFORMATION MAY RESULT IN THE DENIAL OR REVOCATION OF
REGISTRATION.
THE FAILURE TO DISCLOSE A DISCIPLINARY MATTER EITHER IN AN
APPLICATION OR AN UPDATE WILL RESULT IN THE IMPOSITION OF A LATE
DISCLOSURE FEE IN ACCORDANCE WITH NFA REGISTRATION RULE 210(C).
Not every section applies to every applicant. Certain sections apply depending on the registration
category or categories being applied for. The text above these sections explains who must complete
the section.
DEFINED TERMS
Words that are underlined in this form are defined terms and have the meanings contained in the
Definition of Terms section or links to the text of Commodity Exchange Act provisions, CFTC
Regulations or NFA Rules.
GENERAL
Read the Instructions and Questions Carefully
A question that is answered incorrectly because it was misread or misinterpreted can result in severe
consequences, including denial or revocation of registration. Although this applies to all questions in
the application, it is particularly important to the questions in the Disciplinary Information Section.
A question that is answered incorrectly because of advice received from a lawyer, employer, a judge
or anyone else (other than a member of NFA's Registration Investigations or Legal (RIL) staff) can
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result in severe consequences, including denial or revocation of registration. This also applies to all
questions in the form, but is particularly important regarding the Disciplinary Information Section. If
the language of a question in the Disciplinary Information Section requires disclosure of a matter, a
"Yes" answer to the question is required no matter what other advice has been received from anyone
other than NFA's RIL staff. Additionally, the applicant or registrant remains responsible for failures to
disclose even if someone completes the form on the applicant's or registrant's behalf.
Update the Information on the Application
If information provided on the application changes or a matter that would have required disclosure on
the application occurs after the application is filed, the new information must be promptly filed. APs
and Principals should advise their Sponsors of the new information, and the Sponsor must file the
update on their behalf. The failure to promptly update information can result in severe consequences,
including denial or revocation of registration.
Compliance with Disclosure Requirements of Another Regulatory Body is not Sufficient
With some exceptions, which are described below in the Regulatory and Financial Disclosures
sections, if any question requires the provision of information, that information must be provided. In
particular, if a question in the Disciplinary Information Section requires disclosure of a matter, the
question must be answered "Yes" and additional documents must be provided even if the matter has
been disclosed to another regulatory body such as FINRA, an exchange or a state regulator.
Similarly, disclosure is required even if another regulatory body does NOT require disclosure of the
same matter.
Call NFA with Questions
If there is any question about whether particular information must be provided, whether a particular
matter must be disclosed or whether a particular question requires a "Yes" answer, call the NFA
Information Center at (800) 621-3570 or (312) 781-1410. Representatives are available from 8:00
a.m. to 5:00p.m., Central Time, Monday through Friday. If the advice of NFA staff is sought, a written
record containing the date of the conversation, the name of the NFA staff person giving the advice
and a description of the advice should be made during the conversation and kept in the event an
issue concerning disclosure of the matter arises later.
DISCIPLINARY INFORMATION SECTION
Some common mistakes in answering the criminal disclosure questions involve expungements,
diversion programs and similar processes. The Commodity Futures Trading Commission requires a
"Yes" answer even if the matter has been expunged or the records sealed, there was no adjudication
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or finding of guilt, the guilty plea was vacated or set aside or the matter was dismissed upon
completion of the diversion program.
Another common error regarding criminal matters concerns matters that do not involve the derivatives
industry. All criminal matters must be disclosed, even if a matter is unrelated to the derivatives
industry, unless the case was decided in a juvenile court or under a Youth Offender law.
Regulatory Disclosures
Regulatory actions taken by the Commodity Futures Trading Commission, NFA or U.S. futures
exchanges do not need to be disclosed since NFA is already aware of them once they are entered
into NFA's BASIC system.
Financial Disclosures
It is not necessary to disclose arbitration awards or CFTC reparations matters unless the applicant or
registrant has failed to pay an award related to a CFTC-related product or an order entered in a
reparations matter.
Only adversary actions that a U.S. bankruptcy trustee files must be disclosed. Adversary actions that
creditors file are not disclosable. A person named as a party to an adversary action in a bankruptcy
proceeding must disclose the action, even if the person is not the bankrupt person.
ADDITIONAL DOCUMENTS
For each matter that caused a "Yes" answer, a Disclosure Matter Page (DMP), which is accessible
using NFA's DMP Filing System, must be filed. In addition to the required DMP, other documents
about the matter must be provided to NFA. If court documents are unavailable, a certified letter from
the court verifying that must be sent to NFA. If documents other than court documents are
unavailable, a written explanation for their unavailability must be provided. Electronic copies of the
documents can be uploaded using NFA's DMP Filing System or documents may be sent to NFA by
email to registration@nfa.futures.org, fax to (312) 559-3411 or mail to NFA Registration Department,
300 S. Riverside Plaza, Suite 1800, Chicago, IL 60606.
Providing all documents to NFA is important. Failure to do so will delay the registration process and
may result in a denial of the application.
DEFINITION OF TERMS (The following terms are defined solely for the purpose of using NFA's
Online Registration System.)
entitlement to vote or empowered to sell 10% or more of an entity's voting securities; contribution of
10% or more of an entity's capital; or entitlement to 10% or more of an entity's net profits.
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10% OR MORE INTEREST: direct or indirect ownership of 10% or more of an entity's stock;
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ADJUDICATION: in a criminal case, a determination by the court that the defendant is guilty or not
guilty.
ADVERSARY ACTION: a lawsuit arising in or related to a bankruptcy case commenced by a creditor
or bankruptcy trustee by filing a complaint with the bankruptcy court.
ALIAS: another name utilized by an individual or previously used by an entity.
CHARGE: a formal complaint, information, indictment or equivalent instrument containing an
accusation of a crime.
DBA: abbreviation for Doing Business As. The firm is doing its futures, retail off-exchange forex or
swaps business by this name.
ENJOINED: subject to an injunction.
ENTITY: any person other than an individual.
FELONY: any crime classified as a felony and for states and countries that do not differentiate
between a felony or misdemeanor, an offense that could result in imprisonment for any period of
more than one year. The term also includes a general court martial.
FINANCIAL SERVICES INDUSTRY: the commodities, securities, accounting, banking, finance,
insurance, law or real estate industries.
FOUND: subject to a determination that conduct or a rule violation has occurred. The term applies to
dispositions of any type, including but not limited to consent decrees or settlements in which the
findings are neither admitted nor denied or in which the findings are for settlement or record purposes
only.
INTERNAL REVENUE CODE:
Section 7203:
Willful Failure to File Return, Supply Information or Pay Tax
Section 7204:
Fraudulent Statement or Failure to Make Statement
Fraudulent Withholding Exemption Certificate or Failure to Supply Information
Section 7205:
Section 7207:
Fraudulent Returns, Statements or Other Documents
INVESTMENT RELATED STATUTES:
·The Commodity Exchange Act
• The Securities Act of 1933
• The Securities Exchange Act of 1934
·The Public Utility Holding Company Act of 1935
• The Trust Indenture Act of 1939
• The Investment Advisers Act of 1940
• The Investment Company Act of 1940
• The Securities Investors Protection Act of 1970
• The Foreign Corrupt Practices Act of 1977
• Chapter 96 of Title 18 of the United States Code
• Any similar statute of a State or foreign jurisdiction
·Any rule, regulation or order under any such statutes; and
• The rules of the Municipal Securities Rulemaking Board
MISDEMEANOR: any crime classified as a misdemeanor and for states and countries that do not
differentiate between a felony or misdemeanor, an offense that could result in imprisonment for any
period of at least six days but not more than one year. By way of example, an offense for which the
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maximum period of imprisonment is 60 days would be considered a misdemeanor. The term also
includes a special court martial.
OTHER NAME: For firms, including sole proprietors, any other name that the firm uses or has
used in the past but not the name of any other legal entity that the firm has an affiliation or association
with (see DBA). For individuals, this is any name the person is or has been known by. For example,
a maiden name, an alias name that you use or are known by, or a previous name if you have
changed your legal name.
PERSON: an individual, association, partnership, corporation, limited liability company, limited liability
partnership, trust, or other form of business organization.
PRINCIPAL: means, with respect to an applicant, a registrant, or a person required to be registered
under the Act:
( 1) an individual who is:
• a sole proprietor of a sole proprietorship;
• a general partner of a partnership;
• a director, president, chief executive officer, chief operating officer, chief financial officer or a person
in charge of a business unit, division or function subject to regulation by the Commission of a
corporation, limited liability company or limited liability partnership;
·a manager, managing member or a member vested with the management authority for a limited
liability company or limited liability partnership; or
• a chief compliance officer; or
(2) an individual who directly or indirectly, through agreement, holding companies, nominees, trusts or
otherwise:
- is the owner of 10% or more of the outstanding shares of any class of an applicant or
registrant's equity securities, other than non-voting securities;
- is entitled to vote 10% or more of the outstanding shares of any class of an applicant or
registrant's equity securities, other than non-voting securities;
- has the power to sell or direct the sale of 10% or more of the outstanding shares of any class
of an applicant or registrant's equity securities, other than non-voting securities;
- is entitled to receive 10% or more of an applicant or registrant's net profits; or
-has the power to exercise a controlling influence over an applicant or registrant's activities
that are subject to regulation by the Commission; or
(3) an entity that:
- is a general partner of a partnership; or
- is the direct owner of 10% or more of the outstanding shares of any class of an applicant or
registrant's equity securities, other than non-voting securities; or
(4) an individual who or an entity that:
- has contributed 10% or more of an applicant or registrant's capital unless such capital
contribution consists of subordinated debt contributed by:
D Dan unaffiliated bank insured by the Federal Deposit Insurance Corporation;
D D an unaffiliated "foreign bank," as defined in 12 CFR 211.21 (n) that currently
operates an "office of a foreign bank," as defined in 12 CFR 211.21 (t), which is licensed under 12
CFR 211.24(a);
D Osuch office of an unaffiliated, licensed foreign bank; or
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Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8679
D Dan insurance company subject to regulation by any State,
provided such debt is not guaranteed by an individual who or entity that is not a principal of the
applicant or registrant.
SELF-REGULATORY ORGANIZATION (SRO): a private, non-governmental organization authorized
to set and enforce standards of conduct for an industry. NFA, FINRA (formerly known as NASD) and
the securities and futures exchanges in the U.S. are examples of domestic SROs.
UNITED STATES CRIMINAL CODE:
Section 152: Concealment of assets, making false claims or bribery in connection with a bankruptcy
Section 1341 ,
1342 or 1343:
Mail fraud
Chapter 25: Counterfeiting and forgery
Chapter 47: Fraud or false statements in a matter within the jurisdiction of a United States
department or agency
Chapter 95 or 96: Racketeering and Racketeering Influence
Principals
Firms must file electronic applications for each individual who is a principal of the firm, including the
sole proprietor of a sole proprietorship. A firm must have at least one individual principal affiliated
with it in order to obtain registration. NFA Members that are registered or applying for registration as
an FCM, RFED, 18, CPO and/or CTA must have at least one individual principal who is also
registered as an AP of the firm or a floor broker.
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Additional Assistance
Additional information regarding registration requirements and specific topics can be found on the
Registration page of NFA's web site at www.nfa.futures.org. NFA's Information Center, (800-6213570 or 312-781-1410), is also available to provide assistance. Its normal hours are Monday through
Friday, from 8:00AM to 5:00 PM CT.
8680
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
NAME
Indicate the full legal name that appears on the firm's corporate filings or if Sole Proprietor, indicate
the full legal name of the individual who is the Sole Proprietor. The name should not be a "doing
business as" name the Firm or Sole Proprietor may be doing business under. Do not use nicknames
or abbreviations. For example, if the individual's first name is Charles, enter Charles, not Chuck.
Firm Name*
or
Last (Surname)*
First & Middle*
Suffix
NFA ID#*
Check category(ies).*
NFA Member
Futures Commission Merchant
Introducing Broker
Commodity Trading Advisor
Commodity Pool Operator
Retail Foreign Exchange Dealer
Swap Dealer
Major Swap Participant
Floor Trader Firm
Form of Organizationk
Sole Proprietorship (Individual)
Partnership
Corporation
Limited Liability Company
Limited Liability Partnership
Trust
US Federally Chartered Bank
Other
Where is the entity incorporated, organized or established? (Sole proprietors and US Federally
Charter Banks do not answer this question.)*
State
Country
Federal EIN
Business Address
Enter Information. A sole proprietor may use a P.O. Box address if the business is located in the sole
proprietor's residence and a complete residential address is provided on the individual application.
For all others, a P.O. Box address is not acceptable.
*Required to file application
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Street Address 1*
Street Address2
Street Address3
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8681
City**
State* (US Only)
Province
Zip/Postal Code**
Country*
Phone Number*
Fax Number
E-Mail
Web Site/URL
CRD/IARD ID
Other Names
Enter any other name the firm uses or has used in the past. The name should not be the name of
any other legal entity. For example, the name should not be the name of an affiliate, subsidiary or any
other legal entity the firm may have an affiliation/association with.
In
In
In
In
Name
Name
Name
Name
Use
Use
Use
Use
Not
Not
Not
Not
In
In
In
In
Use
Use
Use
Use
Enter the location of the firm's business records and those records required to be kept by regulation
under the Commodity Exchange Act. A P.O. Box address is not acceptable. If the firm is aCTA, this
address must be the same as the business address, unless the CFTC has granted an exemption to
the firm. If the firm is a CPO, the firm can maintain its books and records at a location other than the
business address, as long as the firm files a notice of exemption pursuant to CFTC Regulation
4.23(c).
*Required to file application
**Required to file application for United States address
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Street Address 1*
Street Address2
Street Address3
City**
State*(U.S. only)
Province
Zip/Postal Code**
Country*
8682
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
Only non-U.S. applicants complete this section.
Enter the location in the U.S. where the firm's books and records will be produced for inspection by
the CFTC and NFA.
Select one.
The office of NFA located in New York, NY
The office of NFA located in Chicago, IL
The following address (P.O. Box address is not acceptable):
Office of*
Street Address 1*
Street Address2
Street Address3
City*
State*
Zip/Postal Code*
Country*
Enter the full legal name, Federal EIN and location where incorporated, organized or established for
any entity that is a principal of the firm. It is important that the full legal name of the entity is entered.
NFA will assign an NFA ID number to the entity if one has not already been assigned. An incorrect
name could cause a delay in the application process. If more space is needed, please add in another
document and attach it to this document. If none, continue to the next section.
Full Name
10% or More Interest
Yes
No
Federal EIN
State
Country
10% or More Interest
Yes
No
Full Name
State
Country
*Required to file application
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Federal EIN
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8683
Swap Dealers, Major Swap Participants and Floor Trader Firms do not complete this section.
If the firm has more than one branch office, please add in another document and attach it to this
document. If none, continue to the next section.
Branch ID
Street Address 1*
Street Address2
Street Address3
City**
State* (US Only)
Province
Zip/Postal Code**
Country*
Phone Number
Fax Number
E-Mail
*Required to file application
**Required to file application for United States address
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Enter the name and location of each non-U.S. financial services industrv regulatory authority or selfregulatorv organization that has regulated the firm during the past five (5) years. Do not enter NFA,
FINRA or the name of any U.S. exchange.
List of Non-U.S. Regulators:
8684
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
Disclosures
For additional assistance and information on completing this page, refer to the Instructions and
Definition of Terms at the beginning of this document.
THE QUESTIONS ON THIS PAGE MUST BE ANSWERED "YES" EVEN IF:
• ADJUDICATION OF GUll TWAS WITHHELD OR THERE WAS NO CONVICTION; OR
• THERE WAS A CONDITIONAL DISCHARGE OR POST-CONVICTION DISMISSAL AFTER
SUCCESSFUL COMPLETION OF A SENTENCE; OR
• A STATE CERTIFICATE OF RELIEF FROM DISABILITIES OR SIMILAR DOCUMENT
WAS ISSUED RELIEVING THE HOLDER OF FORFEITURES, DISABILITIES OR BARS
RESULTING FROM A CONVICTION; OR
• THE RECORD WAS EXPUNGED OR SEALED; OR
• A PARDON WAS GRANTED.
THE QUESTIONS MAY BE ANSWERED "NO" IF THE CASE WAS DECIDED IN A JUVENILE
COURT OR UNDER A YOUTH OFFENDER LAW.
For each matter that requires a "Yes" answer to Questions A, B or C below, a Criminal Disclosure
Matter Page (DMP) must be filed using NFA's DMP Filing System that requests:
• who was involved:
•
when it occurred;
•
what the allegations were;
•
what the final determination was, if any; and
•
the date of the determination.
In addition, documents must be provided for each matter requiring a "Yes" answer that show:
• the charges;
•
the classification of the offense, i.e., felony or misdemeanor;
•
the plea, sentencing and probation information, as applicable;
•
the final disposition; and
•
a summary of the circumstances surrounding the criminal matter.
The documents may be provided electronically using the upload function in the DMP Filing System or
by sending them to NFA (See Instructions).
Answer the following questions.
A.*
Has the firm ever pled guilty or nolo contendere ("no contest") to or been convicted or found
guilty of any felonv in any U.S., non-U.S. or military court?
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Yes
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8685
B.*
Has the firm ever pled guilty to or been convicted or found guilty of any misdemeanor in any
U.S., non-U .S. or military court which involves:
• embezzlement, theft, extortion , fraud, fraudulent conversion , forgery, counterfeiting ,
false pretenses , bribery, gambling, racketeering or misappropriation of funds , securities or property;
or
• violation of sections 7203 7204 7205 or 7207 of the Internal Revenue Code of 1986;
or
• violation of sections 152 1341 1342 or 1343 or chapters 25 47 95 or 96 of the U.S.
Criminal Code; or
• any transaction in or advice concerning futures , options, leverage transactions or
securities?
Yes
No
C.*
Is there a charge pending , the resolution of which could result in a "Yes" answer to the above
questions?
Yes
No
Applicants with all "No" answers above answer this question.
Even though you answered "No" to all of the above questions, would you like provide a Criminal
DMP?*
Yes
No
Applicants with "Yes" answers above answer this question
Will you be filing a Criminal DMP with respect to a new matter?*
Yes
No
*Required to file application
DISCIPLINARY INFORMATION- Regulatory Disclosures
For additional assistance and information on completing this page, refer to the Instructions and
Definition of Terms at the beginning of this document.
VerDate Sep<11>2014
•
when it occurred ;
•
what the allegations were;
•
•
what the final determination was, if any;
the date of the determination; and
•
a summary of the circumstances surrounding the regulatory matter.
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For each matter that requires a "Yes" answer to Questions D, E, F, G, H or I below, a Regulatory
DMP must be filed using NFA's DMP Filing System that requests:
• who was involved:
8686
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
In addition, documents must be provided for each matter requiring a "Yes" answer that show:
• the allegations; and
•
the final disposition.
The documents may be provided electronically using the upload function in the DMP Filing System or
by sending them to NFA (See Instructions).
Answer the following questions.
D.*
In any case brought by a U.S. or non-U.S. governmental body (other than the CFTC), has a
court ever permanently or temporarily enjoined the firm after a hearing or default or as the result of a
settlement, consent decree or other agreement, from engaging in or continuing any activity involving:
• any transaction in or advice concerning futures, options, leverage transactions or
securities; or
• embezzlement, theft, extortion, fraud, fraudulent conversion, forgery, counterfeiting,
false pretenses, bribery, gambling, racketeering or misappropriation of funds, securities or property?
Yes
No
E.*
In any case brought by a U.S. or non-U.S. governmental body (other than the CFTC), has the
firm ever been found, after a hearing or default or as the result of a settlement, consent decree or
other agreement, to:
• have violated any provision of any investment-related statute or regulation thereunder;
or
• have violated any statute, rule, regulation or order which involves embezzlement, theft,
extortion, fraud, fraudulent conversion, forgery, counterfeiting, false pretenses, bribery, gambling,
racketeering or misappropriation of funds, securities or property; or
• have willfully aided, abetted, counseled, commanded, induced or procured such
violation by any other person; or
•
have failed to supervise another person's activities under any investment-related statute or
regulation thereunder?
Yes
F.*
Has the firm ever been debarred by any agency of the U.S. from contracting with the U.S.?
Yes
No
G.*
Has the firm ever been the subject of any order issued by or a party to any agreement with a
U.S. or non-U.S. regulatory authority (other than the CFTC), including but not limited to a licensing
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No
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8687
authority, or self-regulatory organization (other than NFA or a U.S. futures exchange) that prevented
or restricted the firm's ability to engage in any business in the financial services industry?
Yes
No
H.*
Are any of the orders or other agreements described in Question G currently in effect against
the firm?
Yes
No
1.*
Is the firm a party to any action, the resolution of which could result in a "Yes" answer to the
above questions?
Yes
No
Applicants with aii"No" answers above answer this question.
Even though you answered "No" to all of the above questions, would you like to provide a Regulatory
DMP?*
Yes
No
Applicants with "Yes" answers above answer this question
Will you be filing a Regulatory DMP with respect to a new matter?*
Yes
No
*Required to file application
-Financial
For additional assistance and information on completing this page, refer to the Instructions and
Definition of Terms at the beginning of this document.
•
when it occurred;
•
what the allegations were;
•
what the final determination was, if any;
•
the date of the determination; and
• a summary of the circumstances surrounding the financial matter.
In addition, documents must be provided for each matter requiring a "Yes" answer that show:
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For each matter that requires a "Yes" answer to Question J below, a Financial DMP must be filed
using NFA's DMP Filing System that requests:
• who was involved:
8688
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
•
the allegations; and
•
the final disposition.
The documents may be provided electronically using the upload function in the DMP Filing System or
by sending them to NFA (See Instructions).
Answer the following question.
J.*
Has the firm ever been the subject of an adversary action brought by a U.S. bankruptcy
trustee?
Yes
No
Applicants with a "No" answer above answer this question.
Even though you answered "No" to the question above, would you like to provide a Financial DMP?*
Yes
No
Applicants with a "Yes" answer above answer this question
Will you be filing a Financial DMP with respect to a new matter?*
Yes
No
Enter the individual to whom all registration inquiries are to be directed.
Registration Contact
*Required to file application
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First Name*
Last Name*
Title
Street Address 1*
Street Address2
Street Address3
City**
State* (US Only)
Province
Zip/Postal Code**
Country*
Phone Number*
Fax Number
E-Mail*
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8689
**Required to file application for United States address
Enter the individual to whom all enforcement and compliance communications and inquiries from the
CFTC are to be directed. NFA may also send communications to this individual. Firms may list
multiple enforcement/compliance contacts. If the firm would like to list more than one individual,
please add in another document and attach it to this document.
Enforcement/Compliance Contact
First Name*
Last Name*
Title
Street Address 1*
Street Address2
Street Address3
City**
State* (US Only)
Province
Zip/Postal Code**
Country*
Phone Number*
Fax Number
E-Mail*
Confirm E-Mail*
*Required to file application
**Required to file application for United States address
PAPERWORK REDUCTION ACT NOTICE
OMB Numbers 3038-0023 and 3038-0072
You are not required to provide the information requested on a form subject to the Paperwork
Reduction Act unless the form displays a valid OMB Control Number.
The time needed to complete and file Form 7-R, Form 7-W, Form 8-R and Form 8-T may vary
depending upon individual circumstances. The estimated average times are:
Form 7-R
Form 7-W
FCM
0.6 hours
0.5 hours
IB
0.1 hours
0.5 hours
1.0 hour
1.1 hours
CPO
Form 8-R
Form 8-T
0.2 hours
0.5 hours
MSP
1.1 hours
CTA
FT
0.6 hours
RFED
0.6 hours
so
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PRIVACY ACT NOTICE
8690
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
The information in Forms 7-R, 7-W, 8-R and 8-T and on the fingerprint card is being collected
pursuant to authority granted in Sections 2(c), 4f, 4k, 4n, 4s, 8a and 19 of the Commodity Exchange
Act, 7 U.S. C.§§ 2(c), 6f, 6k, 6n, 6s, 12a and 23. Under Section 2(c), it is unlawful for anyone to
engage in off-exchange foreign currency futures transactions or off-exchange foreign currency
leveraged, margined or financed transactions with persons who are not eligible contract participants
without registration, or exemption from registration, as a retail foreign exchange dealer, futures
commission merchant, introducing broker, commodity pool operator or commodity trading advisor, as
appropriate. Under Section 4d of the Commodity Exchange Act, 7 U.S. C. §6d, it is unlawful for
anyone to act as a futures commission merchant or introducing broker without being registered in that
capacity under the Act. Under Section 4m of the Commodity Exchange Act, 7 U.S. C. §6m, it is
unlawful for a commodity trading advisor or commodity pool operator to make use of the mails or any
means or instrumentality of interstate commerce in connection with his business as a commodity
trading advisor or commodity pool operator without being registered in the appropriate capacity under
the Act, except that a commodity trading advisor who, during the course of the preceding 12 months,
has not furnished commodity trading advice to more than 15 persons and does not hold himself out
generally to the public as a commodity trading advisor, need not register. Under Section 4s of the
Commodity Exchange Act, 7 U.S. C. §6s, it is unlawful for anyone to act as a swap dealer or major
swap participant without being registered in that capacity under the Act. Under Section 19 of the
Commodity Exchange Act, 7 U.S. C. §23, and Section 31.5 of the CFTC's regulations, it is unlawful for
anyone to act as a leverage transaction merchant without being registered in that capacity under the
Act.
The information requested in Form 7 -R is designed to assist NFA and the CFTC, as appropriate, in
determining whether the application for registration should be granted or denied and to maintain the
accuracy of registration files. The information in Form 7 -W is designed to assist NFA and the CFTC in
determining whether it would be contrary to the requirements of the Commodity Exchange Act, or any
rule, regulation or order thereunder, or the public interest to permit withdrawal from registration.
The information requested in Form 8-R and on the fingerprint card will be used by the CFTC or NFA,
as appropriate, as a basis for conducting an inquiry into the individual's fitness to be an associated
person, floor broker or floor trader or to be a principal of a futures commission merchant, swap dealer,
major swap participant, retail foreign exchange dealer, introducing broker, commodity trading advisor,
commodity pool operator, leverage transaction merchant or non-natural person floor trader.
Portions of the information requested in Form 8-R will be used by the CFTC and, in appropriate
cases, by NFA, to confirm the registration of certain associated persons. The information requested in
Form 8-T will be used by the CFTC, and, in appropriate cases, by NFA, to record the registration
status of the individual and, in appropriate cases, as a basis for further inquiry into the individual's
fitness to remain in business subject to the CFTC's jurisdiction.
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With the exception of the social security number and Federal employer identification number, all
information in Forms 8-R and 8-T must be furnished. Disclosure of the social security number and
Federal employer identification number is voluntary. The social security number and the Federal
employer identification number are sought pursuant to the Debt Collection Improvement Act of 1996,
which allows the CFTC to use the social security number or taxpayer identifying number furnished to
the CFTC as part of the registration process for purposes of collecting and reporting on any debt
owed to the U.S. Government, including civil monetary penalties. Although voluntary, the furnishing of
a social security number or Federal employer identification number assists the CFTC and NFA in
identifying individuals and firms, and therefore expedites the processing of those forms.
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8691
The failure by an applicant, registrant or principal to timely file a properly completed Form 7-R and all
other related required filings may result in the denial of an application for registration or withdrawal
thereof or, in the case of an annual records maintenance fee, treating the registrant as having
petitioned for withdrawal. Failure by an applicant, registrant or principal to timely file or cause to be
filed a properly completed Form 8-R or 8-T, any other required related filings, or a fingerprint card
may result in the lapse, denial, suspension or revocation of registration, withdrawal of the application
or other enforcement or disciplinary action by the CFTC or NFA.
NFA makes available to the public on NFA website(s), including the Background Affiliation Status
Information Center (BASIC), firm directories, business addresses, telephone numbers, registration
categories, effective dates of registration, registration status, and disciplinary action taken concerning
futures commission merchants, introducing brokers, commodity pool operators, commodity trading
advisors, swap dealers, major swap participants and retail foreign exchange dealers and their
associated persons and principals; non-natural person floor traders and their principals; and floor
trader order enterers.
Additional information on Forms 7-R, 7-W, 8-R and 8-T is publicly available, and may be accessed by
contacting the National Futures Association, Registration Department, Suite 1800, 300 S. Riverside
Plaza, Chicago, IL 60606-6615, except for the following information, which is generally not available
for public release unless required under the Freedom of Information Act (FOIA) :
the fingerprint card, including its demographic information;
social security number;
date of birth;
location of birth;
current residential address; and
any supplementary information filed in response to the Form 8-R "Personal Information,"
"Disciplinary Information," "Matter Information," or "Disclosure Matter'' sections, Form 8-T "Withdrawal
Reasons," "Disciplinary Information," or "Matter Information" sections, and Form 7-W, "Additional
Customer Information" sections.
The CFTC, or NFA acting in accordance with rules approved by the CFTC, may disclose to third
parties any information provided on Forms 7-R, 7-W, 8-R and 8-T pursuant to the Commodity
Exchange Act, 7 U.S.C. § 1 et. seq., Privacy Act of 1974, 5 U.S. C.§ 552a (Privacy Act), and the
Commission's Privacy Act routine uses published in the Federal Register, which may include, but is
not limited to, disclosure to Federal, state, local, or foreign law enforcement or regulatory authorities
acting within the scope of their jurisdiction or for their use in meeting responsibilities assigned to them
by law. The information will be maintained and disclosures will be made in accordance with CFTC
Privacy Act System of Records Notice CFTC-12, National Futures Association (NFA) Applications
Suite System (Exempted), CFTC-1 0, Investigatory Records (Exempted), or another relevant System
of Records Notice, available from the CFTC "Privacy Program" page,
https://www. cftc. govIT ransparency/ PrivacyOffice.
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If an individual believes that information on the forms is confidential, the individual may petition the
CFTC, pursuant to 17 CFR 145. 9, to treat such information as confidential in response to requests
under FOIA. 5 U.S. C. §552. The filing of a petition for confidential treatment, however, does not
guarantee that the information will be treated confidentially in response to a FOIA request. The CFTC
will make no determination as to confidential treatment of information submitted unless and until the
information is the subject of an FOIA request.
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Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
This notice is provided in accordance with the requirements of the Privacy Act, 5 U.S. C. §552a(e)(3),
and summarizes some of an individual's rights under the Privacy Act, 5 U.S. C. §552a. Individuals
desiring further information should consult the CFTC's regulations under the Privacy Act, 17 CFR Part
146, and under the Freedom of Information Act, 17 CFR Part 145, and the CFTC's published System
of Records Notices, which describe the existence and character of each system of records
maintained by the CFTC, available at the CFTC "Privacy Program" page.
Forms which have not been prepared and executed in compliance with applicable requirements may
not be acceptable for filing. Acceptance of this form shall not constitute any finding that the
information is true, current or complete. Misstatements or omissions of fact may constitute federal
criminal violations [7 U.S.C. §13 and 18 U.S.C. §1001] or grounds for disqualification from
registration.
APPLICANT AGREEMENT
The applicant certifies that:
the answers and the information provided in the Form 7-R are true, complete and accurate and that in
light of the circumstances under which the applicant has given them, the answers and statements in
the Form 7 -Rare not misleading in any material respect;
the person who electronically files the Form 7-R on behalf of the applicant is authorized by the
applicant to file the Form 7-R and to make the certifications, requests, acknowledgements,
authorizations and agreements contained in this agreement;
if the applicant is an applicant for registration as an SD or MSP, the applicant undertakes that, no
later than ninety (90) days following the date this Form 7-R is filed, it will be and shall remain in
compliance with the requirement of Section 4s(b)(6) of the Commodity Exchange Act, 7 U.S. C.
§6s(b)(6), that, except to the extent otherwise specifically provided by rule, regulation or order, the
applicant may not permit any person associated with it who is subject to a statutory disqualification to
effect or be involved in effecting swaps on behalf of the applicant, if the applicant knows, or in the
exercise of reasonable care should know, of the statutory disqualification. For the purpose of this
certification, "statutory disqualification" refers to the matters addressed in Sections 8a(2) and 8a(3) of
the Act and "person" means an "associated person of a swap dealer or major swap participant" as
defined in Section 1a(4) of the Act and CFTC regulations thereunder; and
if the applicant is an applicant for exemption from registration as an IB, CPO or CTA pursuant to
CFTC Regulation 30.5:
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the applicant does not act as an IB, CPO or CTA, respectively, in connection with trading on or
subject to the rules of a designated contract market in the United States by, for or on behalf of
any U.S. customer, client or pool;
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8693
the applicant irrevocably agrees to the jurisdiction of the Commission and state and federal
courts located in the U.S. with respect to activities and transactions subject to Part 30 of the
CFTC's regulations; and
the applicant would not be statutorily disqualified from registration under §8a(2) or §8a(3) of
the Act and is not disqualified from registration pursuant to the laws or regulations of its home
country.
The applicant acknowledges that:
the applicant is subject to the imposition of criminal penalties under Section 9(a) of the Commodity
Exchange Act, 7 U.S.C. §13(a), and 18 U.S. C. §1001 for any false statements or omissions made in
the Form 7 -R;
the applicant is responsible at all times for maintaining the information in the Form 7-R in a complete,
accurate and current manner by electronically filing updates to the information contained therein; and
the applicant may not act:
in the case of an FCM, RFED,CPO,CTA or FT until registration has been granted;
in the case of an 18, until registration or a temporary license has been granted; or
in the case of an SD or MSP, until registration or provisional registration has been granted; or
until confirmation of exemption from registration as an 18, CPO or CTA pursuant to CFTC
Regulation 30.5 is granted.
The applicant authorizes that:
NFA may conduct an investigation to determine the applicant's fitness for registration or for
confirmation of exemption from registration as an 18, CPO and CTA pursuant to CFTC Regulation
30.5; and
and request that any person, including but not limited to contract markets, or non-U.S. regulatory or
law enforcement agencies, furnish upon request to NFA or any agent acting on behalf of NFA any
information requested by NFA in connection with any investigation conducted by NFA to determine
the applicant's fitness for registration or for confirmation of exemption from registration as an 18, CPO
and CTA pursuant to CFTC Regulation 30.5;
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The applicant agrees that:
8694
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
the applicant will cooperate promptly and fully, consistent with applicable Federal law, in any
investigation to determine the applicant's fitness for registration or for confirmation of exemption from
registration as an IB, CPO and CTA pursuant to CFTC Regulation 30.5, which investigation may
include contacting non-U.S. regulatory and law enforcement authorities, including the submission of
documents and information to NFA that NFA, in its discretion, may require in connection with the
applicant's application for registration or confirmation of exemption from registration as an IB, CPO
and CTA pursuant to CFTC Regulation 30.5;
any person furnishing information to NFA or any agent acting on behalf of NFA in connection with the
investigation so authorized is released from any and all liability of whatever nature by reason of
furnishing such information to NFA or any agent acting on behalf of NFA; and
if the applicant is a non-U.S. applicant:
subject to any applicable blocking, privacy or secrecy laws, the applicant's books and records
will be available for inspection by the CFTC, the U.S. Department of Justice ("DOJ") and NFA
for purposes of determining compliance with the Act, CFTC Regulations and NFA
Requirements;
subject to any applicable blocking, privacy or secrecy laws, such books and records will be
produced on 72-hours notice at the location in the United States stated in the Form 7 -R or, in
the case of an IB, CPO or CTA confirmed as exempt from registration pursuant to CFTC
Regulation 30.5, at the location specified by the CFTC or DOJ, provided, however, if the
applicant is applying for registration as an FCM, SD, MSP or RFED, upon specific request,
such books and records will be produced on 24-hours notice except for good cause shown; the
applicant will immediately notify NFA of any changes to the location in the United States where
such books and records will be produced;
except as the applicant has otherwise informed NFA or the CFTC in writing, the applicant is
not subject to any blocking, privacy or secrecy laws which would interfere with or create an
obstacle to full inspection of the applicant's books and records by the CFTC, DOJ and NFA;
subject to any applicable blocking, privacy or secrecy laws, the applicant for registration shall
provide to NFA copies of any audit or disciplinary report related to the applicant for registration
issued by any non-U.S. regulatory authority or non-U.S. self-regulatory organization and any
required notice that the applicant for registration provides to any non-U.S. regulatory authority
or non-U.S. self-regulatory organization and shall provide these copies both as part of this
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subject to any applicable blocking, privacy or secrecy laws, the failure to provide the CFTC,
DOJ or NFA with access to its books and records in accordance with this agreement
may be grounds for enforcement and disciplinary sanctions, denial, suspension or revocation
of registration, withdrawal of confirmation of exemption from registration as an IB, CPO or CTA
pursuant to CFTC Regulation 30.5; and
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
8695
application and thereafter immediately upon the applicant for registration's receipt of any such
report or provision of any such notice.
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AGREE
8696
Federal Register / Vol. 84, No. 47 / Monday, March 11, 2019 / Notices
FOR FURTHER INFORMATION CONTACT:
[FR Doc. 2019–04297 Filed 3–8–19; 8:45 am]
BILLING CODE 6351–01–C
COMMODITY FUTURES TRADING
COMMISSION
Agency Information Collection
Activities: Notice of Intent To Extend
and Revise Collections 3038–0023 and
3038–0072; Adoption of Revised
Registration Form 7–R
Commodity Futures Trading
Commission.
ACTION: Notice.
AGENCY:
The Commodity Futures
Trading Commission (‘‘CFTC’’ or the
‘‘Commission’’) is announcing an
opportunity for public comment on the
proposed extension and revision to the
collection of certain information by the
Commission. Under the Paperwork
Reduction Act (‘‘PRA’’), 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 revised its
Form 7–R, the application form that
entities that engage in certain specified
business activities in the derivatives
markets regulated by the Commission
must use to register with the
Commission. This notice solicits
comments on the PRA implications of
the revisions to Form 7–R, including
comments that address the burdens
associated with the modified
information collection requirements of
the revised Form 7–R.
DATES: Comments must be submitted on
or before May 10, 2019.
ADDRESSES: You may submit comments,
identified by ‘‘OMB control numbers
3038–0023 and 3038–0072; Adoption of
Revised Registration Form 7–R,’’ by any
of the following methods:
• The Agency’s website, via its
Comments Online process at https://
comments.cftc.gov/. Follow the
instructions for submitting comments
through the website.
• Mail: Christopher Kirkpatrick,
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.
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
https://www.cftc.gov.
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SUMMARY:
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Matthew Kulkin, Director, 202–418–
5213, mkulkin@cftc.gov; or Christopher
Cummings, Special Counsel, 202–418–
5445, ccummings@cftc.gov, Division of
Swap Dealer and Intermediary
Oversight, Commodity Futures Trading
Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION: Under the
PRA, 44 U.S.C. 3501 et seq., 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. To comply with this
requirement, the CFTC is publishing
notice of the proposed revision to the
collections of information listed below.
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 OMB number.
Titles: Registration Under the
Commodity Exchange Act (OMB control
number 3038–0023); Registration of
Swap Dealers and Major Swap
Participants (OMB control number
3038–0072). This is a request for
extension and revision of these
currently approved information
collections.
Abstract: The Commission is revising
its Form 7–R,1 the application form that
entities must use to register with the
Commission as a commodity pool
operator, commodity trading advisor,
introducing broker, floor trader firm,
retail foreign exchange dealer, futures
commission merchant, leverage
transaction merchant, swap dealer, or
major swap participant. The collections
of information related to Form 7–R were
previously approved by OMB in
accordance with the PRA and assigned
OMB control numbers 3038–0023 and
3038–0072.
1. Form 7–R Revision
The revised Form 7–R contains
several changes that, when considered
1 See, Adoption of Revised Registration Form 7–
R, published in the FEDERAL REGISTER concurrently
with this Notice that contains the revised version
of Form 7–R, incorporating the changes discussed
in this notice.
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together in aggregate, result in no net
change to the existing information
collection burden associated with Form
7–R. That burden varies by registration
category and is currently 0.5 hour for
futures commission merchants, 0.4 hour
for introducing brokers, 0.4 hour for
commodity pool operators, 0.4 hour for
commodity trading advisors, 0.5 hour
for floor trader firms, 0.5 hour for retail
foreign exchange dealers, 1 hour for
swap dealers, and 1 hour for major swap
participants. Discussion of the
noteworthy changes follows.
In the section titled ‘‘Location of
Business Records,’’ Form 7–R no longer
separately requests that non-U.S.
applicants identify the non-U.S. address
where their business records are
located. Instead, both U.S. and non-U.S.
applicants are required to comply only
with the existing requirements of Form
7–R to identify the location of their
business records, which remain
unchanged, and, for non-U.S.
applicants, to indicate that such records
will be produced for inspection at
NFA’s offices, or at another physical
location (not a post office box) within
the U.S that the applicant identifies.
In the section titled ‘‘Holding
Company Information,’’ the revised
Form 7–R requests additional
information about any entity that is a
principal (as defined in Form 7–R) of
the applicant. Form 7–R previously
required applicants to identify by name
any entity that was a principal of the
applicant. The revised Form 7–R
requires, for each entity that is
identified as a principal of the
applicant, then the applicant also must
provide the entity’s Federal EIN and the
location where the entity is
incorporated, organized, or established.
This additional information is intended
to ensure accurate identification of the
entity, given that firms sometimes can
have the same or similar names.
In the section titled ‘‘Disciplinary
Information—Regulatory Disclosures,’’ a
new question was added to existing
Question E. The new question directs
the applicant to disclose whether it has
ever been found to have failed to
supervise another person’s activities
under any investment-related statute or
regulation. The new question is
intended to ensure complete disclosure
of conduct that may result in a refusal
or limitation on registration.
Items that pertain only to NFA
membership have been removed from
the form. In the past, Form 7–R
functioned as a registration form for the
Commission and NFA, and as an
application for NFA membership. To
the extent that questions ask for
information that is necessary for NFA
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[Federal Register Volume 84, Number 47 (Monday, March 11, 2019)]
[Notices]
[Pages 8671-8696]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-04297]
=======================================================================
-----------------------------------------------------------------------
COMMODITY FUTURES TRADING COMMISSION
Revised Registration Form 7-R
AGENCY: Commodity Futures Trading Commission.
ACTION: Notice of revised form.
-----------------------------------------------------------------------
SUMMARY: The Commodity Futures Trading Commission (the ``Commission''
or ``CFTC'') is revising its Form 7-R, the application form that
entities must use to register with the Commission as a commodity pool
operator, commodity trading advisor, introducing broker, floor trader
firm, retail foreign exchange dealer, futures commission merchant,
leverage transaction merchant, swap dealer, or major swap participant
(collectively, ``applicants'').
DATES: Implementation date: The new, revised version of Form 7-R shall
be implemented (and the prior version shall be superseded) as of the
date upon which the National Futures Association (``NFA'') makes the
new, revised version
[[Page 8672]]
of the Form 7-R available on the NFA website for use by applicants.
FOR FURTHER INFORMATION CONTACT: Matthew Kulkin, Director, 202-418-
5213, mkulkin@cftc.gov; or Christopher Cummings, Special Counsel, 202-
418-5445, ccummings@cftc.gov, Division of Swap Dealer and Intermediary
Oversight, Commodity Futures Trading Commission, 1155 21st Street NW,
Washington, DC 20581.
SUPPLEMENTARY INFORMATION:
I. Background
Entities that engage in certain specified business in the
derivatives markets regulated by the Commission are required to
register with the Commission by filing a completed Form 7-R with
NFA.\1\ These applicants include: Futures commission merchants, retail
foreign exchange dealers, introducing brokers, commodity trading
advisors, commodity pool operators, leverage transaction merchants,
swap dealers, major swap participants, and floor trader firms.\2\
Applicants have been required to use Form 7-R since 1977.\3\ In the
past, Form 7-R also was used to register with NFA and to apply for NFA
membership.
---------------------------------------------------------------------------
\1\ 17 CFR 3.10(a)(2), 3.11(a), and 3.12(c).
\2\ 17 CFR 3.11(a); 3.12(c).
\3\ Revision of Registration Forms and Amendment of Related
Rules, 42 FR 23988 (May 11, 1977) (Form 7-R replaced Forms 1-R, 5-R
and 6-R).
---------------------------------------------------------------------------
Form 7-R requests information about the applicant that can be used
to assess the applicant's fitness to engage in business in the
registration categories referenced above. Although Form 7-R is a
Commission form, it is maintained and used primarily by the NFA.\4\
Pursuant to section 17(o) of the Commodity Exchange Act (``Act''),\5\
Regulation 3.2,\6\ and a series of orders, the Commission delegated to
NFA certain registration functions including, among other things, the
processing of all Form 7-R filings.\7\ Since the first delegation to
NFA in 1983, NFA has developed substantial expertise in registration
matters, including reviewing and processing completed Forms 7-R. In
2002, with the approval of the Commission, NFA transitioned from a
paper-based registration system to an online registration system that
utilizes, among other things, an electronic version of Form 7-R.\8\
---------------------------------------------------------------------------
\4\ NFA is currently the only registered futures association
authorized by the Commission in accordance with section 17 of the
Commodity Exchange Act.
\5\ 7 U.S.C. 21(o) (2012).
\6\ 17 CFR 3.2.
\7\ See, e.g., Introducing Brokers and Associated Persons of
Introducing Brokers; Authorization of National Futures Association
to Perform Commission Registration Functions, 48 FR 35158 (Aug. 3,
1983); Performance of Registration Functions by National Futures
Association, 49 FR 39593 (Oct. 9, 1984) (futures commission
merchants, commodity pool operators, commodity trading advisors, and
associated persons thereof); Performance of Registration Functions
by National Futures Association; Delegation of Authorities;
Performance of Registration Functions by National Futures
Association with Respect to Floor Traders and Floor Brokers, 58 FR
19657 (Apr. 15, 1993); and Performance of Registration Functions by
National Futures Association with Respect to Swap Dealers and Major
Swap Participants, 77 FR 2708 (Jan. 19, 2012).
\8\ Registration of Intermediaries, 67 FR 38869 (June 6, 2002).
---------------------------------------------------------------------------
II. Revisions to Commission Form 7-R
NFA has requested that the Commission make several changes to Form
7-R.\9\ Upon consideration of NFA's request, the Commission is revising
and updating Form 7-R. In addition, the Commission is updating the Form
7-R Privacy Act and Paperwork Reduction Act Statements. The Form 7-R
revisions are described in this Notice.\10\
---------------------------------------------------------------------------
\9\ Request from NFA to CFTC, dated March 23, 2018. This
communication is on file with the Commission.
\10\ This Notice describes the technical changes to Form 7-R.
The Commission also is making a number of minor, non-substantive
changes to Form 7-R that are not described herein.
---------------------------------------------------------------------------
First, revised Form 7-R incorporates new functionality throughout
the form, consisting of hyperlinks to the text of the applicable
provisions of the Act, Commission regulations, and NFA Rules, whenever
those authorities are referenced in the form. Additionally, Form 7-R
incorporates certain clarifying language where appropriate. For
example, the term ``futures'' has been replaced with the term
``derivatives'' in several locations to more accurately reflect the
full scope of the Commission's jurisdiction. Similarly, the reference
to a failure ``to pay an award issued in a futures-related
arbitration'' was replaced with the phrase ``failure to pay an award
related to a CFTC-related product.''
In the section titled ``Location of Business Records,'' revised
Form 7-R no longer separately requests that non-U.S. applicants
identify the non-U.S. address where their business records are located.
Instead, both U.S. and non-U.S. applicants are required to comply only
with the existing requirements of Form 7-R to identify the location of
their business records, which remain unchanged, and, for non-U.S.
applicants, to indicate that such records will be produced for
inspection at NFA's offices, or at another physical location (not a
post office box) within the U.S. that the applicant identifies.
In the section titled ``Holding Company Information,'' the revised
Form 7-R requests additional information about any entity that is a
principal (as defined in Form 7-R) of the applicant. Form 7-R
previously required applicants to identify by name any entity that was
a principal of the applicant. The revised Form 7-R requires that, for
each entity that is principal of the applicant, the applicant must
provide the entity's Federal EIN and the location where the entity is
incorporated, organized, or established. This additional information is
intended to ensure accurate identification of the entity, given that
firms sometimes can have the same or similar names.
The sections in Form 7-R titled ``Disciplinary Information--
Criminal Disclosures,'' ``Disciplinary Information--Regulatory
Disclosures,'' and ``Disciplinary Information--Financial Disclosures''
contain a series of questions that inquire about the disciplinary
history of the applicant. These questions are designed to identify and
gather information that may reflect on the fitness of the applicant and
whether the applicant may be subject to a statutory disqualification
from registration.\11\ To this end, in the section titled
``Disciplinary Information--Regulatory Disclosures,'' a new question
was added to existing Question E. Among other things, Question E
inquires whether the applicant violated, or aided and abetted the
violation of, any investment-related statutes or regulations, a
potential statutory basis for refusing or conditioning
registration.\12\ The new question directs the applicant to disclose
whether it has ever been found to have ``failed to supervise another
person's activities under any investment-related statute or
regulation.'' \13\ The new question is intended to ensure complete
disclosure of conduct that may result in a refusal or limitation on
registration.
---------------------------------------------------------------------------
\11\ See 7 U.S.C. 12(a) and (3) (2012).
\12\ 7 U.S.C. 12(a)(3).
\13\ See 7 U.S.C. 12(a)(3)(C).
---------------------------------------------------------------------------
Separately, NFA is simplifying the process by which it requests
supplemental information and documentation regarding the applicant's
criminal, regulatory, or financial disclosures. The prior version of
Form 7-R requested that applicants provide a written explanation of the
facts and circumstances regarding any such disclosures. Applicants were
also separately requested to provide NFA with copies of pertinent
documents associated with each disclosure. To consolidate and modernize
this process, the revised Form 7-R allows applicants to complete a
separate ``Disclosure Matter Page'' for each matter, instance,
[[Page 8673]]
or event requiring disclosure and to simultaneously upload all
pertinent documents associated with each disclosure. The Disclosure
Matter Page provides applicants with an efficient and effective method
of supplying the supplemental information and documentation that NFA
requests in the normal course whenever an applicant responds
affirmatively to any of the questions regarding criminal, regulatory or
financial disclosures.
Lastly, questions that pertain only to NFA membership have been
removed from the form. As noted above, in the past, Form 7-R functioned
both as a registration form for the Commission and NFA, and as an
application for NFA membership. To the extent that questions ask for
information that is necessary for NFA membership but is not necessary
for registration, those questions have been removed from the form and
will appear in a separate application for NFA membership. Specifically,
revised Form 7-R no longer contains: a series of questions that inquire
whether the applicant will transact in retail off-exchange foreign
currency, swap, futures, or options; a question that is directed to
applicants that are registering in multiple capacities that asks them
to select the capacity in which they intend to vote on NFA membership
matters; the question that asks applicants that are applying to
register as a futures commission merchant to indicate whether the
applicant has ``applied for membership at any United States commodity
exchange;'' a question that asks applicants that are applying for
registration as a swap dealer or major swap participant to indicate
whether the applicant is currently regulated by other U.S. regulators
and to identify those regulators; and lastly, contact information for
the applicant's Membership Contact, Accounting Contact, Assessment Fee
Contact, Arbitration Contact, Compliance Contact, or Chief Compliance
Officer Contact.
A revised version of Form 7-R that incorporates the changes
discussed in this Notice, as well as other minor, non-substantive
changes, is set forth in Appendix 2 to this Notice.
III. Related Matters
Paperwork Reduction Act
Recordkeeping or information collection requirements under the
Paperwork Reduction Act (``PRA'') related to Form 7-R exist under
current law. The titles for the existing information collections are
``Registration Under the Commodity Exchange Act,'' Office of Management
and Budget (``OMB'') control number 3038-0023, and ``Registration of
Swap Dealers and Major Swap Participants,'' OMB control number 3038-
0072. The preliminary view of the Commission is that the revisions to
Form 7-R may modify the existing recordkeeping or information
collection requirements under the PRA. To ensure compliance with the
PRA, the Commission, concurrently with this Notice, is publishing in
the Federal Register a separate notice and request for comment on the
amended PRA burden associated with the revised Form 7-R. The Commission
also will submit to OMB an information collection request to amend the
information collection, in accordance with 44 U.S.C. 3506(c)(2)(A) and
5 CFR 1320.8(d).
Issued in Washington, DC, on March 5, 2019, by the Commission.
Christopher Kirkpatrick,
Secretary of the Commission.
Appendices to Notice of Revised Form--Commission Voting Summary and
Revised Registration Form 7-R
Appendix 1--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.
Appendix 2--Revised Registration Form 7-R
BILLING CODE 6351-01-P
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[FR Doc. 2019-04297 Filed 3-8-19; 8:45 am]
BILLING CODE 6351-01-C
