In January 2018, the Commission
adopted regulation 9.11(b)(3)(ii) requiring a designated contract
market (DCM) or swap execution facility (SEF) (collectively,
“exchange”) to include two additional elements in the disciplinary
or access denial notice action provided to the National Futures
Association. First, an exchange must include the type of product
(as applicable) involved in the adverse action. Requiring an
exchange to provide this information in the disciplinary or access
denial notice will provide the Commission, market participants, the
public, and other exchanges with greater transparency concerning
where market abuses originate and whether the abuses are
concentrated among certain product types. Second, an exchange must
indicate in its notice of disciplinary or access denial actions
whether the violation underlying the notice resulted in financial
harm to any customers. The Commission believes that the inclusion
of customer harm is essential because it cannot effectively perform
its regulatory and oversight functions without knowledge of those
instances in which brokers violate their fiduciary duty to
customers by taking advantage of customer orders and engaging in
fraudulent activity. The Commission concluded that the additional
burden for an exchange to add the two additional elements in the
contents of the disciplinary or access denial notice is de minimis
and will not change the burden hours for the collection.
The Commission is amending
control number 3038-0052 to account for a change in the number of
DCMs currently registered with the Commission from 18 to 15.
$0
No
No
No
No
Yes
No
Uncollected
Herminio Castro 202 418-6705
hcastro@cftc.gov
No
On behalf of this Federal agency, I certify that
the collection of information encompassed by this request complies
with 5 CFR 1320.9 and the related provisions of 5 CFR
1320.8(b)(3).
The following is a summary of the topics, regarding
the proposed collection of information, that the certification
covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a
benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control
number;
If you are unable to certify compliance with any of
these provisions, identify the item by leaving the box unchecked
and explain the reason in the Supporting Statement.