Commodity Futures Trading Commission February 2021 – Federal Register Recent Federal Regulation Documents

The Commodity Futures Trading Commission (CFTC) is announcing an opportunity for public comment on the proposed collection of certain information by the agency. Under the Paperwork Reduction Act (``PRA''), Federal agencies are required to publish notice in the Federal Register concerning each proposed collection of information, including each proposed extension of an existing collection of information, and to allow 60 days for public comment. This notice solicits comments on the information collection requirements set out in the Commission's regulations concerning large trader reporting for physical commodity swaps.

On November 30, 2018, the Commodity Futures Trading Commission (``CFTC'' or the ``Commission'') published a ``Swap Execution Facilities and Trade Execution Requirement'' notice of proposed rulemaking (``NPRM'') in the Federal Register. While the Commission has adopted certain proposals from the NPRM, in light of feedback the Commission received in response to the remaining proposals in the NPRM, the Commission has determined to not proceed with those unadopted proposals relating to the regulation of swap execution facilities (``SEFs'') and the trade execution requirement (``Determination''). In separate final rules, the Commission adopted the following portions of the NPRM: Two exemptions, pursuant to Commodity Exchange Act (``CEA'') section 4(c), from the trade execution requirement in CEA section 2(h)(8); and final rules related to audit trail requirements for post- trade allocations, SEF financial resource requirements, and SEF chief compliance officer requirements (collectively, the ``Final Rules''). As such, this withdrawal does not impact or alter any of those sections of the NPRM that are being adopted in the Final Rules. In light of the Determination, the Commission has decided to withdraw the unadopted portions of the NPRM.

The Commodity Futures Trading Commission (``Commission'' or ``CFTC'') is adopting a final rule (``Final Rule'') that establishes two exemptions from the statutory requirement to execute certain types of swaps on a swap execution facility (``SEF'') or a designated contract market (``DCM'') (this requirement, the ``trade execution requirement'').

The Commodity Futures Trading Commission (Commission) is amending its rule that governs the maximum amount of civil monetary penalties imposed under the Commodity Exchange Act (CEA), to adjust for inflation. This rule sets forth the maximum, inflation-adjusted dollar amount for civil monetary penalties (CMPs) assessable for violations of the CEA and Commission rules, regulations and orders thereunder. The rule, as amended, implements the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended.