Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs

Forms and Documents

Document Name	Status
2023 Supporting Statement 3038-0024 (Rule 1.25 NPRM).docx Supporting Statement A	2023-11-21

IC Document Collections

IC ID	Document Title	Status
254470	Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs, Capital Requirements of SDs and MSPs (consolidated)	Modified

ICR Details

OMB Control No: 3038-0024	ICR Reference No: 202311-3038-001
Status: Received in OIRA	Previous ICR Reference No: 202207-3038-001
Agency/Subagency: CFTC	Agency Tracking No:
Title: Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular	Date Submitted to OIRA: 11/21/2023

	Requested	Previously Approved
Expiration Date	36 Months From Approved	08/31/2025
Responses	31,886	89,856
Time Burden (Hours)	284,147	284,124
Cost Burden (Dollars)	0	0

---

Abstract: In order to monitor compliance with financial standards including capital and margin for commodity intermediaries including futures commission merchants, retail forex dealers, swap dealers, and introducing brokers, the Commission has required such intermediaries as respondents to maintain certain records and file financial and other notices and reports with the Commission, or in lieu thereof, seek a comparability determination if available. The information is used to monitor financial condition of the intermediaries at regular intervals and be responsive to changes in such registrants' condition and customer protection. The Commission is proposing to amend its regulations governing the investment of customer funds to, among other changes, add certain exchange-traded funds (“ETFs”) to the list of permitted investments in Regulation 1.25. To account for the proposed addition of ETFs, the Commission is also proposing conforming changes to Regulation 1.26. The proposed amendments to Regulation 1.26 would require FCMs and DCOs segregating customer funds in a permitted ETF account to obtain and maintain in their files an acknowledgment letter from the depository or fund in which customer funds are held and to file such acknowledgment letter electronically with the Commission. The Commission is proposing an analogous amendment to Regulation 30.7(d)(2) with respect to investments of 30.7 customer funds by FCMs. The Commission notes that an amendment to Regulation 22.5 would not be necessary as this regulation cross-references Regulation 1.26. The burden hour estimates in connection with the requirements under Regulation 22.5, however, would be adjusted, to reflect the proposed amendments to Regulation 1.26.

---

Authorizing Statute(s): US Code: 7 USC 6s, 12a Name of Law: CEA
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 124 Stat. 1376 (2010) Name of Law: Dodd Frank Act
PL: Pub.L. 110 - 246 122 Stat. 1651 (2008) Name of Law: Food, Conservation, and Energy Act of 2008

---

Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3038-AF24	Proposed rulemaking	88 FR 81236	11/21/2023

---

Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Regulations and Forms Pertaining to Financial Integrity of the Market Place; Margin Requirements for SDs/MSPs, Capital Requirements of SDs and MSPs (consolidated)

---

ICR Summary of Burden

	Total Request	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	31,886	89,856	0	-57,970	0	0
Annual Time Burden (Hours)	284,147	284,124	0	23	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The annual reporting and recordkeeping burden hours have been updated to account for the proposed revisions to Regulations 1.26 and 30.7, which would result in a requirement for FCMs and DCOs to obtain acknowledgment letters in connection with investments of customer funds in ETFs.

---

Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? No

---

Common Form ICR:  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:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(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;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

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.

Certification Date: 11/21/2023

---