Agency Information Collection Activities Under OMB Review, 28790-28792 [2019-13082]

Download as PDF 28790 Federal Register / Vol. 84, No. 119 / Thursday, June 20, 2019 / Notices SUPPLEMENTARY INFORMATION: Title: Annual Report for Chief Compliance Officer of Registrants (OMB Control No. 3038–0080). This is a request for an extension of a currently approved information collection. Abstract: On April 3, 2012, the Commission adopted Commission regulation 3.3 (Chief Compliance Officer) 2 under sections 4d(d) and 4s(k) 3 of the Commodity Exchange Act (‘‘CEA’’). Commission regulation 3.3 requires each futures commission merchant (‘‘FCM’’),4 swap dealer (‘‘SD’’),5 and major swap participant (‘‘MSP’’) 6 to designate, by filing a form 8–R, a chief compliance officer who is responsible for developing and administering policies and procedures that fulfill certain duties of the FCM, SD, or MSP and that are reasonably designed to ensure the registrant’s compliance with the CEA and Commission regulations; establishing procedures for the remediation of noncompliance issues identified by the chief compliance officer; establishing procedures for the handling, management response, remediation, retesting, and closing of noncompliance issues; preparing, signing, certifying and filing with the Commission an annual compliance report that contains the information specified in the regulations; amending the annual report if material errors or omissions are identified; and maintaining records of the registrant’s compliance policies and procedures and records related to the annual report. The information collection obligations imposed by Commission regulation 3.3 are essential to ensuring that FCMs, SDs, and MSPs maintain comprehensive policies and procedures that promote compliance with the CEA and Commission regulations. In particular, the Commission believes that, among other things, these obligations (i) promote compliance behavior through periodic self-evaluation, (ii) inform the Commission of possible compliance weaknesses, (iii) assist the Commission in determining whether the registrant remains in compliance with the CEA and Commission regulations, and (iv) help the Commission to assess whether the registrant has mechanisms in place to adequately address compliance 2 17 CFR 3.3. U.S.C. 6d(d) and 6s(k). 4 For the definition of FCM, see section 1a(28) of the CEA and Commission regulation 1.3(p). 7 U.S.C. 1a(28) and 17 CFR 1.3(p). 5 For the definition of SD, see section 1a(49) of the CEA and Commission regulation 1.3(ggg). 7 U.S.C. 1a(49) and 17 CFR 1.3(ggg). 6 For the definitions of MSP, see section 1a(33) of the CEA and Commission regulation 1.3(hhh). 7 U.S.C. 1a(33) and 17 CFR 1.3(hhh). jbell on DSK3GLQ082PROD with NOTICES 37 VerDate Sep<11>2014 17:47 Jun 19, 2019 Jkt 247001 problems that could lead to a failure of the registrant. Burden Statement: In light of the current number of Commissionregistered FCMs, SDs, and MSPs, the Commission revised its estimate of the burden for this collection. Accordingly, the respondent burden for this collection is estimated to be as follows: Number of Registrants: 171. Estimated Average Burden Hours per Registrant: 1,006. Estimated Aggregate Burden Hours: 172,026. Frequency of Recordkeeping/Thirdparty Disclosure: Annually or on occasion. There are no capital or operating and maintenance costs associated with this collection. (Authority: 44 U.S.C. 3501 et seq.) Dated: June 14, 2019. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2019–13083 Filed 6–19–19; 8:45 am] BILLING CODE 6351–01–P COMMODITY FUTURES TRADING COMMISSION Agency Information Collection Activities Under OMB Review Commodity Futures Trading Commission. ACTION: Notice. AGENCY: In compliance with the Paperwork Reduction Act of 1995 (PRA), this notice announces that the Information Collection Request (‘‘ICR’’) abstracted below has been forwarded to the Office of Management and Budget (‘‘OMB’’) for review and comment. The ICR describes the nature of the information collection and its expected costs and burdens. DATES: Comments must be submitted on or before July 22, 2019. ADDRESSES: Comments regarding the burden estimate or any other aspect of the information collection, including suggestions for reducing the burden, may be submitted directly to the Office of Information and Regulatory Affairs (‘‘OIRA’’) in OMB within 30 days of publication of this notice by either of the methods specified below. Please identify the comments by ‘‘OMB Control Numbers 3038–0023 and 3038–0072; Adoption of Revised Registration Form 7–R.’’ • By email addressed to: OIRAsubmissions@omb.eop.gov; or • By mail addressed to: Office of Information and Regulatory Affairs, Office of Management and Budget, SUMMARY: PO 00000 Frm 00003 Fmt 4703 Sfmt 4703 Attention Desk Officer for the Commodity Futures Trading Commission, 725 17th Street NW, Washington, DC 20503. A copy of all comments submitted to OIRA should be sent to the Commodity Futures Trading Commission (‘‘Commission’’) by any of the following methods. The copies should refer to ‘‘OMB Control Numbers 3038–0023 and 3038–0072.’’ • By mail addressed to: Christopher Kirkpatrick, Secretary of the Commission, Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; • By Hand Delivery/Courier to the same address; or • Through the Commission’s website at https://comments.cftc.gov. Please follow the instructions for submitting comments through the website. 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. You should submit only information that you wish to make available publicly. If you wish the Commission to consider information that you believe is exempt from disclosure under the Freedom of Information Act, a petition for confidential treatment of the exempt information may be submitted according to the procedures established in § 145.9 of the Commission’s regulations.1 The Commission reserves the right, but shall have no obligation, to review, prescreen, filter, redact, refuse or remove any or all of your submission from https://www.cftc.gov that it may deem to be inappropriate for publication, such as obscene language. All submissions that have been redacted or removed that contain comments on the merits of the ICR will be retained in the public comment file and will be considered as required under the Administrative Procedure Act and other applicable laws, and may be accessible under the Freedom of Information Act. A copy of the supporting statements for the collections of information discussed herein may be obtained by visiting https://RegInfo.gov. FOR FURTHER INFORMATION CONTACT: Matthew Kulkin, Director, (202) 418– 5213, mkulkin@cftc.gov; or Christopher W. 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, and 1 17 E:\FR\FM\20JNN1.SGM CFR 145.9. 20JNN1 Federal Register / Vol. 84, No. 119 / Thursday, June 20, 2019 / Notices jbell on DSK3GLQ082PROD with NOTICES refer to OMB Control Numbers 3038– 0023 and 3038–0072. SUPPLEMENTARY INFORMATION: 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: In Revised Registration Form 7–R, 84 FR 8671 (Mar. 11, 2019), the Commission published a revised version of Commission Form 7–R. The Form 7–R is the application form that entities must use to register with the Commission as a futures commission merchant, retail foreign exchange dealer, introducing broker, commodity trading advisor, commodity pool operator, leverage transaction merchant, swap dealer, major swap participant, or floor trader firm. Separately, in Agency Information Collection Activities: Notice of Intent to Extend and Revise Collections 3038–0023 and 3038–0072; Adoption of Revised Registration Form 7–R, 84 FR 8696 (Mar. 11, 2019) (‘‘60Day Notice’’), the Commission addressed the PRA implications of the revisions to Form 7–R. As indicated above, Form 7–R is covered by two OMB control numbers. OMB control number 3038–0023 applies to Form 7– R in connection with registering as a futures commission merchant, retail foreign exchange dealer, introducing broker, commodity trading advisor, commodity pool operator, floor trader firm or leverage transaction merchant.2 OMB control number 3038–0072 applies to Form 7–R in connection with for registration as a swap dealer or major swap participant.3 The revisions to Form 7–R, when considered together in the aggregate, result in no net change to the existing information collection burden associated with Form 7–R. Revision of Commission Form 7–R. The revised Form 7–R contains several changes that, when considered together 2 OMB control number 3038–0023 also covers Commission Forms 8–R, 7–W and 8–T in connection with various registration activities involving floor brokers, floor traders, futures commission merchants, retail foreign exchange dealers, introducing brokers, commodity trading advisors, commodity pool operators, floor trader firms or leverage transaction merchants, and their principals and associated persons, as applicable. Forms 8–R, 7–W and 8–T were not amended in connection with the revision of Form 7–R. 3 OMB control number 3038–0072 also covers Commission Forms 8–R, 7–W and 8–T in connection with various registration activities involving swap dealers and major swap participants, and principals thereof. Forms 8–R, 7– W and 8–T were not amended in connection with the revision of Form 7–R. VerDate Sep<11>2014 17:47 Jun 19, 2019 Jkt 247001 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 PO 00000 Frm 00004 Fmt 4703 Sfmt 4703 28791 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 offexchange 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; a 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 an applicant that is 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. Additionally, 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 electronically a separate ‘‘Disclosure Matter Page’’ for each matter, instance 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, revised Form 7–R contains several changes that do not alter the information collection burdens associated with Form 7–R. The revised Form 7–R incorporates new functionality throughout the form, E:\FR\FM\20JNN1.SGM 20JNN1 jbell on DSK3GLQ082PROD with NOTICES 28792 Federal Register / Vol. 84, No. 119 / Thursday, June 20, 2019 / Notices consisting of hyperlinks to the text of the applicable provisions of the Commodity Exchange Act, Commission Regulations, and NFA Rules, whenever those authorities are referenced in the form. Additionally, revised 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.’’ The revised Form 7–R contains other changes to the language, formatting and organization of Form 7–R, all of which—individually and collectively— do not alter the information collection burdens associated with Form 7–R. The only changes to Form 7–R that could affect the information collection burdens associated with the form are those discussed above. Comments. In the 60-Day Notice, the Commission provided 60 days for public comment on the extension and revision of the currently approved information collections under OMB control numbers 3038–0023 and 3038– 0072 including, among other things, its estimates regarding the modified information collection burdens associated with the amendments to Form 7–R. The Commission received one relevant comment letter that: (1) Contended that a new question that was added to Question E of Form 7–R directing 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’’ is redundant because Question E already requires an applicant to disclose whether it has ‘‘violated any provision of any investment-related statute or regulation thereunder’’; and (2) suggested broadening Question G of Form 7–R by deleting the portion of that question that only requires disclosure of selfregulatory organizations actions ‘‘that prevented or restricted the firm’s ability to engage in any business in the financial services industry.’’ 4 The letter did not address or offer alternatives to the Commission’s estimates of the burden associated with revised Form 7– R. The Commission has determined that no further changes to Form 7–R or the information collection burdens 4 See Letter from James L. Simon dated May 6, 2019, available at https://comments.cftc.gov/ PublicComments/ ViewComment.aspx?id=62116&SearchText=. VerDate Sep<11>2014 17:47 Jun 19, 2019 Jkt 247001 associated therewith are warranted in response to this comment because: (1) The new required disclosure item in Question E asks for different information than the existing item that was claimed to be redundant, and is intended to ensure complete disclosure of conduct that may result in a refusal or limitation on registration; 5 and (2) the Commission believes that the suggested broadening of Question G would require disclosure of matters that are outside the jurisdiction of the Commission.6 Burden Statement: As explained above, the Commission believes that the revisions to Form 7–R will result in no net change to the information collection burdens associated with that Form under OMB control numbers 3038–0023 and 3038–0072.7 The Commission estimates the burden of this collection of information under OMB control number 3038–0023 to be: Respondents/Affected Entities: Users of Form 7–R that are futures commission merchants, retail foreign exchange dealers, introducing brokers, commodity trading advisors, commodity pool operators, floor trader firms, and leverage transaction merchants. Estimated number of respondents: 78,055.8 Estimated total annual burden on respondents: 7,735 hours. Frequency of collection: Periodically. There are no capital costs or operating and maintenance costs associated with this collection. The Commission estimates the burden of this collection of information under OMB control number 3038–0072 to be: 5 See Adoption of Revised Registration Form 7– R, 84 FR 8671, 8672 (Mar. 11, 2019). 6 If Question G were revised as suggested, it would require the applicant to disclose whether it has 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 authority, or self-regulatory organization (other than NFA or a U.S. futures exchange). 7 The revisions to Form 7–R do not change the existing estimated number of respondents under OMB control numbers 3038–0023 and 3038–0072. This estimate includes the collection burdens associated with Forms 7–R, 7–W, 8–R and 8–T, based on the historical practice of the Commission of addressing the burden estimates in aggregate, rather than separately on a form-by-form basis, for all of the registration forms: Forms 7–R, 7–W, 8– R, and 8–W. 8 As noted above and in the 60-day notice, the revisions to Form 7–R do not change the existing estimated number of respondents under OMB control numbers 3038–0023 and 3038–0072. However, regarding the estimated number of respondents for OMB control number 3038–0023, the estimate in the 60-Day Notice incorrectly stated that there were 78.055 respondents. The correct estimate is 78,055 respondents. There is no change in the estimated total annual burden on respondents for collection 3038–0023, which is 7,735 hours. PO 00000 Frm 00005 Fmt 4703 Sfmt 4703 Respondents/Affected Entities: Users of Form 7–R that are swap dealers and major swap participants. The following estimates are based on the average annual number of swap dealer and major swap participant Form 7–R filers for the past three years. Estimated number of respondents: 772. Estimated total annual burden on respondents: 672 hours. Frequency of collection: Periodically. There are no capital costs or operating and maintenance costs associated with this collection. Dated: June 14, 2019. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2019–13082 Filed 6–19–19; 8:45 am] BILLING CODE 6351–01–P DEPARTMENT OF DEFENSE Office of the Secretary Defense Innovation Board; Notice of Federal Advisory Committee Meeting Under Secretary of Defense for Research and Engineering, Department of Defense. ACTION: Notice of Federal Advisory Committee meeting. AGENCY: The Department of Defense (DoD) is publishing this notice to announce that the following Federal Advisory Committee meeting of the Defense Innovation Board, will take place. SUMMARY: Wednesday, July 10, 2019 from 9:30 a.m. to 12:00 p.m. ADDRESSES: Defense Innovation Unit (DIU) Auditorium, 230 RT Jones Road, Mountain View, CA 94043. FOR FURTHER INFORMATION CONTACT: Maj Travis H. Sheets, U.S. Air Force, 703– 695–9516 (Voice), (Facsimile), travis.h.sheets.mil@mail.mil (Email). Mailing address is Defense Innovation Board, 9010 Defense Pentagon, Room 5E572, Washington, DC 20301–9010. Website: https://innovation.defense.gov. The most up-to-date changes to the meeting agenda can be found on the website. DATES: This meeting is being held under the provisions of the Federal Advisory Committee Act (FACA) of 1972 (5 U.S.C., Appendix, as amended), the Government in the Sunshine Act of 1976 (5 U.S.C. 552b, as amended), and 41 CFR 102–3.140 and 102–3.150. This meeting is being held under the provisions of the Federal Advisory SUPPLEMENTARY INFORMATION: E:\FR\FM\20JNN1.SGM 20JNN1

Agencies

Commodity Futures Trading Commission

[Federal Register Volume 84, Number 119 (Thursday, June 20, 2019)]
[Notices]
[Pages 28790-28792]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-13082]


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COMMODITY FUTURES TRADING COMMISSION


Agency Information Collection Activities Under OMB Review

AGENCY: Commodity Futures Trading Commission.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: In compliance with the Paperwork Reduction Act of 1995 (PRA), 
this notice announces that the Information Collection Request (``ICR'') 
abstracted below has been forwarded to the Office of Management and 
Budget (``OMB'') for review and comment. The ICR describes the nature 
of the information collection and its expected costs and burdens.

DATES: Comments must be submitted on or before July 22, 2019.

ADDRESSES: Comments regarding the burden estimate or any other aspect 
of the information collection, including suggestions for reducing the 
burden, may be submitted directly to the Office of Information and 
Regulatory Affairs (``OIRA'') in OMB within 30 days of publication of 
this notice by either of the methods specified below. Please identify 
the comments by ``OMB Control Numbers 3038-0023 and 3038-0072; Adoption 
of Revised Registration Form 7-R.''
     By email addressed to: [email protected]; or
     By mail addressed to: Office of Information and Regulatory 
Affairs, Office of Management and Budget, Attention Desk Officer for 
the Commodity Futures Trading Commission, 725 17th Street NW, 
Washington, DC 20503.
    A copy of all comments submitted to OIRA should be sent to the 
Commodity Futures Trading Commission (``Commission'') by any of the 
following methods. The copies should refer to ``OMB Control Numbers 
3038-0023 and 3038-0072.''
     By mail addressed to: Christopher Kirkpatrick, Secretary 
of the Commission, Commodity Futures Trading Commission, Three 
Lafayette Centre, 1155 21st Street NW, Washington, DC 20581;
     By Hand Delivery/Courier to the same address; or
     Through the Commission's website at https://comments.cftc.gov. Please follow the instructions for submitting 
comments through the website.
    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. You should submit only information that you wish to make 
available publicly. If you wish the Commission to consider information 
that you believe is exempt from disclosure under the Freedom of 
Information Act, a petition for confidential treatment of the exempt 
information may be submitted according to the procedures established in 
Sec.  145.9 of the Commission's regulations.\1\ The Commission reserves 
the right, but shall have no obligation, to review, pre-screen, filter, 
redact, refuse or remove any or all of your submission from https://www.cftc.gov that it may deem to be inappropriate for publication, such 
as obscene language. All submissions that have been redacted or removed 
that contain comments on the merits of the ICR will be retained in the 
public comment file and will be considered as required under the 
Administrative Procedure Act and other applicable laws, and may be 
accessible under the Freedom of Information Act.
---------------------------------------------------------------------------

    \1\ 17 CFR 145.9.
---------------------------------------------------------------------------

    A copy of the supporting statements for the collections of 
information discussed herein may be obtained by visiting https://RegInfo.gov.

FOR FURTHER INFORMATION CONTACT: Matthew Kulkin, Director, (202) 418-
5213, [email protected]; or Christopher W. Cummings, Special Counsel, 
(202) 418-5445, [email protected], Division of Swap Dealer and 
Intermediary Oversight, Commodity Futures Trading Commission, 1155 21st 
Street NW, Washington, DC 20581, and

[[Page 28791]]

refer to OMB Control Numbers 3038-0023 and 3038-0072.

SUPPLEMENTARY INFORMATION: 
    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: In Revised Registration Form 7-R, 84 FR 8671 (Mar. 11, 
2019), the Commission published a revised version of Commission Form 7-
R. The Form 7-R is the application form that entities must use to 
register with the Commission as a futures commission merchant, retail 
foreign exchange dealer, introducing broker, commodity trading advisor, 
commodity pool operator, leverage transaction merchant, swap dealer, 
major swap participant, or floor trader firm. Separately, in Agency 
Information Collection Activities: Notice of Intent to Extend and 
Revise Collections 3038-0023 and 3038-0072; Adoption of Revised 
Registration Form 7-R, 84 FR 8696 (Mar. 11, 2019) (``60-Day Notice''), 
the Commission addressed the PRA implications of the revisions to Form 
7-R. As indicated above, Form 7-R is covered by two OMB control 
numbers. OMB control number 3038-0023 applies to Form 7-R in connection 
with registering as a futures commission merchant, retail foreign 
exchange dealer, introducing broker, commodity trading advisor, 
commodity pool operator, floor trader firm or leverage transaction 
merchant.\2\ OMB control number 3038-0072 applies to Form 7-R in 
connection with for registration as a swap dealer or major swap 
participant.\3\ The revisions to Form 7-R, when considered together in 
the aggregate, result in no net change to the existing information 
collection burden associated with Form 7-R.
---------------------------------------------------------------------------

    \2\ OMB control number 3038-0023 also covers Commission Forms 8-
R, 7-W and 8-T in connection with various registration activities 
involving floor brokers, floor traders, futures commission 
merchants, retail foreign exchange dealers, introducing brokers, 
commodity trading advisors, commodity pool operators, floor trader 
firms or leverage transaction merchants, and their principals and 
associated persons, as applicable. Forms 8-R, 7-W and 8-T were not 
amended in connection with the revision of Form 7-R.
    \3\ OMB control number 3038-0072 also covers Commission Forms 8-
R, 7-W and 8-T in connection with various registration activities 
involving swap dealers and major swap participants, and principals 
thereof. Forms 8-R, 7-W and 8-T were not amended in connection with 
the revision of Form 7-R.
---------------------------------------------------------------------------

    Revision of Commission Form 7-R. The revised Form 7-R contains 
several changes that, when considered 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 
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; a 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 an 
applicant that is 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.
    Additionally, 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 
electronically a separate ``Disclosure Matter Page'' for each matter, 
instance 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, revised Form 7-R contains several changes that do not alter 
the information collection burdens associated with Form 7-R. The 
revised Form 7-R incorporates new functionality throughout the form,

[[Page 28792]]

consisting of hyperlinks to the text of the applicable provisions of 
the Commodity Exchange Act, Commission Regulations, and NFA Rules, 
whenever those authorities are referenced in the form. Additionally, 
revised 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.'' The revised Form 7-R contains 
other changes to the language, formatting and organization of Form 7-R, 
all of which--individually and collectively--do not alter the 
information collection burdens associated with Form 7-R. The only 
changes to Form 7-R that could affect the information collection 
burdens associated with the form are those discussed above.
    Comments. In the 60-Day Notice, the Commission provided 60 days for 
public comment on the extension and revision of the currently approved 
information collections under OMB control numbers 3038-0023 and 3038-
0072 including, among other things, its estimates regarding the 
modified information collection burdens associated with the amendments 
to Form 7-R. The Commission received one relevant comment letter that: 
(1) Contended that a new question that was added to Question E of Form 
7-R directing 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'' is redundant because 
Question E already requires an applicant to disclose whether it has 
``violated any provision of any investment-related statute or 
regulation thereunder''; and (2) suggested broadening Question G of 
Form 7-R by deleting the portion of that question that only requires 
disclosure of self-regulatory organizations actions ``that prevented or 
restricted the firm's ability to engage in any business in the 
financial services industry.'' \4\ The letter did not address or offer 
alternatives to the Commission's estimates of the burden associated 
with revised Form 7-R. The Commission has determined that no further 
changes to Form 7-R or the information collection burdens associated 
therewith are warranted in response to this comment because: (1) The 
new required disclosure item in Question E asks for different 
information than the existing item that was claimed to be redundant, 
and is intended to ensure complete disclosure of conduct that may 
result in a refusal or limitation on registration; \5\ and (2) the 
Commission believes that the suggested broadening of Question G would 
require disclosure of matters that are outside the jurisdiction of the 
Commission.\6\
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    \4\ See Letter from James L. Simon dated May 6, 2019, available 
at https://comments.cftc.gov/PublicComments/ViewComment.aspx?id=62116&SearchText=.
    \5\ See Adoption of Revised Registration Form 7-R, 84 FR 8671, 
8672 (Mar. 11, 2019).
    \6\ If Question G were revised as suggested, it would require 
the applicant to disclose whether it has 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 authority, or self-regulatory organization 
(other than NFA or a U.S. futures exchange).
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    Burden Statement: As explained above, the Commission believes that 
the revisions to Form 7-R will result in no net change to the 
information collection burdens associated with that Form under OMB 
control numbers 3038-0023 and 3038-0072.\7\
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    \7\ The revisions to Form 7-R do not change the existing 
estimated number of respondents under OMB control numbers 3038-0023 
and 3038-0072. This estimate includes the collection burdens 
associated with Forms 7-R, 7-W, 8-R and 8-T, based on the historical 
practice of the Commission of addressing the burden estimates in 
aggregate, rather than separately on a form-by-form basis, for all 
of the registration forms: Forms 7-R, 7-W, 8-R, and 8-W.
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    The Commission estimates the burden of this collection of 
information under OMB control number 3038-0023 to be:
    Respondents/Affected Entities: Users of Form 7-R that are futures 
commission merchants, retail foreign exchange dealers, introducing 
brokers, commodity trading advisors, commodity pool operators, floor 
trader firms, and leverage transaction merchants.
    Estimated number of respondents: 78,055.\8\
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    \8\ As noted above and in the 60-day notice, the revisions to 
Form 7-R do not change the existing estimated number of respondents 
under OMB control numbers 3038-0023 and 3038-0072. However, 
regarding the estimated number of respondents for OMB control number 
3038-0023, the estimate in the 60-Day Notice incorrectly stated that 
there were 78.055 respondents. The correct estimate is 78,055 
respondents. There is no change in the estimated total annual burden 
on respondents for collection 3038-0023, which is 7,735 hours.
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    Estimated total annual burden on respondents: 7,735 hours.
    Frequency of collection: Periodically.
    There are no capital costs or operating and maintenance costs 
associated with this collection.
    The Commission estimates the burden of this collection of 
information under OMB control number 3038-0072 to be:
    Respondents/Affected Entities: Users of Form 7-R that are swap 
dealers and major swap participants. The following estimates are based 
on the average annual number of swap dealer and major swap participant 
Form 7-R filers for the past three years.
    Estimated number of respondents: 772.
    Estimated total annual burden on respondents: 672 hours.
    Frequency of collection: Periodically.
    There are no capital costs or operating and maintenance costs 
associated with this collection.

    Dated: June 14, 2019.
Robert Sidman,
Deputy Secretary of the Commission.
[FR Doc. 2019-13082 Filed 6-19-19; 8:45 am]
 BILLING CODE 6351-01-P

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