Privacy Act of 1974; System of Records

Published date26 April 2019
Citation84 FR 17811
Record Number2019-08397
SectionNotices
CourtCommodity Futures Trading Commission
Federal Register, Volume 84 Issue 81 (Friday, April 26, 2019)
[Federal Register Volume 84, Number 81 (Friday, April 26, 2019)]
                [Notices]
                [Pages 17811-17814]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-08397]
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                COMMODITY FUTURES TRADING COMMISSION
                Privacy Act of 1974; System of Records
                AGENCY: Commodity Futures Trading Commission.
                ACTION: Notice of a modified system of records.
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                SUMMARY: In accordance with the requirements of the Privacy Act of
                1974, as amended, the Commodity Futures Trading Commission (CFTC or
                Commission) is republishing existing SORN: National Futures Association
                (NFA) Applications Suite System, CFTC-12. The modification will add two
                routine uses, clarify existing routine uses, and bring the SORN in
                compliance with the Office of Management and Budget (OMB) Circular A-
                108 SORN template. The two new routine uses pertain to sharing
                information to mitigate a breach and are required by OMB Memorandum 17-
                12. Other updates include identifying the specific routine uses
                applicable to the system of records rather than relying on CFTC's
                previously published blanket routine uses, and administrative updates
                to comply with the OMB Circular A-108 SORN template format.
                DATES: Comments must be received on or before May 28, 2019. This action
                will be effective without further notice on May 28, 2019, unless
                revised pursuant to comments received.
                ADDRESSES: You may submit comments identified as pertaining to
                ``National Futures Association Applications Suite System'' by any of
                the following methods:
                 Agency website, via its Comments Online process: 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
                http://www.cftc.gov. You should submit only information that you wish
                to make available publicly.
                 The Commission reserves the right, but shall have no obligation, to
                review, pre-screen, filter, redact, refuse, or remove any or all of a
                submission from http://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 notice will be retained in the comment file and will
                be considered as required under all applicable laws, and may be
                accessible under the FOIA.
                FOR FURTHER INFORMATION CONTACT: Melissa Jurgens, Acting Chief Privacy
                Officer, 202-418-5516, [email protected], Office of the Executive
                Director, Commodity Futures Trading Commission, Three Lafayette Centre,
                1155 21st Street NW, Washington, DC 20581.
                SUPPLEMENTARY INFORMATION:
                I. National Futures Association
                 The National Futures Association (NFA) is a not-for-profit
                membership corporation formed in 1976 that serves as an industry self-
                regulatory organization under Section 17 of the Commodity Exchange Act
                (CEA). NFA's formal designation as a ``registered futures association''
                was granted by the
                [[Page 17812]]
                CFTC in 1981 and NFA's regulatory operations began in 1982.
                 The Commodities Futures Trading Commission (CFTC or Commission) has
                delegated to the NFA the authority to perform certain functions and act
                as custodian of certain CFTC records to support the CFTC's mission of
                protecting market participants and the public from fraud, manipulation,
                abusive practices and systemic risk related to futures and swaps
                derivatives and to foster transparent, open, competitive and
                financially sound markets. The NFA Applications Suite System
                (``Applications Suite'') is a collection of the NFA databases and
                applications specifically designed to allow NFA to fulfill the mission
                and business objectives set forth by the Commission through delegated
                authority.
                II. The Privacy Act
                 Under the Privacy Act of 1974, 5 U.S.C. 552a, a ``system of
                records'' is defined as any group of records under the control of a
                Federal government agency from which information about individuals is
                retrieved by name or by some identifying number, symbol, or other
                identifying particular assigned to the individual. The Privacy Act
                establishes the means by which government agencies must collect,
                maintain, and use information about an individual in a government
                system of records.
                 Each government agency is required to publish a notice in the
                Federal Register in which the agency identifies and describes each
                system of records it maintains, the reasons why the agency uses the
                information therein, the routine uses for which the agency will
                disclose such information outside the agency, and how individuals may
                exercise their rights under the Privacy Act.
                 In accordance with 5 U.S.C. 552a(r), CFTC has provided a report of
                this system of records to the Office of Management and Budget (OMB) and
                to Congress.
                III. Notice: National Futures Association (NFA) Applications Suite
                System, CFTC-12.
                SYSTEM NAME AND NUMBER
                 National Futures Association (NFA) Applications Suite System, CFTC-
                12.
                SECURITY CLASSIFICATION:
                 Unclassified.
                SYSTEM LOCATION:
                 This system is located at the National Futures Association, 300 S.
                Riverside Plaza, Chicago, IL 60606 and the Commodity Futures Trading
                Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC
                20581.
                SYSTEM MANAGER(S):
                 For records held by the Commission related to fitness
                investigations and registration: Director, Division of Swap Dealer and
                Intermediary Oversight (DSIO), Commodity Futures Trading Commission,
                Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581.
                Surveillance Branch Chiefs in the regional offices at 525 West Monroe
                Street, Suite 1100, Chicago, IL 60661 and 140 Broadway, 19th Floor, New
                York, NY 10005. For records held by the Commission related to
                disciplinary action: Director, Division of Market Oversight (DMO),
                Commodity Futures Trading Commission, Three Lafayette Centre, 1155 21st
                Street NW, Washington, DC 20581. For records held by NFA contact: Vice
                President for Registration, National Futures Association, 300 South
                Riverside, Suite 1800, Chicago, Illinois 60606.
                AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
                 The collection of this information is authorized under The
                Commodity Exchange Act, 7 U.S.C. 1, et seq., and the rules and
                regulations promulgated thereunder.
                PURPOSE(S) OF THE SYSTEM:
                 The records in this system are used to support the Commission's
                registration and other regulatory authority as delegated to NFA. This
                involves maintaining fitness investigation and other fitness related
                records, including investigatory material compiled for law enforcement
                purposes, non-fitness registration records, images of registration
                records, information related to disciplinary action taken by the CFTC
                and self-regulatory organizations; processing hard copy and electronic
                fingerprint cards; and maintaining a web based registration system,
                records related to notices of exemption or claims for exemption from
                certain CFTC requirements, and financial statements, reports, notices
                and other filings that enable NFA and the CFTC to oversee registrant
                activities for compliance with legal requirements.
                CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
                 This system includes information about individuals who have applied
                or who may apply for registration as futures commission merchants,
                introducing brokers, commodity pool operators, commodity trading
                advisors, leverage transaction merchants, swap dealers, major swap
                participants, retail foreign exchange dealers and agricultural trade
                option merchants (ATOMs); individuals who file notices of exemption or
                claims for exemption from certain CFTC requirements; individuals who
                are or may become principals (as defined in 17 CFR 3.1); individuals
                who have applied or who may apply for registration as associated
                persons of the foregoing firms; and floor brokers and floor traders.
                This system also includes information about individuals who have been
                suspended, expelled, disciplined, or denied access to or by a self-
                regulatory organization (SRO), including, but not limited to NFA, or
                who have been subject to a CFTC civil or administrative action.
                CATEGORIES OF RECORDS IN THE SYSTEM:
                 This system includes information pertaining to the fitness of the
                individuals or firms to engage in business subject to the Commission's
                jurisdiction, including but not limited to registration forms,
                schedules and supplements, fingerprint cards which are required for
                certain individual registrants as provided under CFTC rules,
                correspondence relating to registration, fitness investigations, and
                reports and memoranda reflecting information developed from various
                sources. This system includes investigatory material compiled for law
                enforcement purposes whose disclosure the Commission staff has
                determined could compromise Commission investigations, or would reveal
                the identity of a source who furnished information to the Commission
                under an express promise that the identity of the source would be held
                in confidence. The system also includes information pertaining to
                disciplinary or other adverse action taken by an SRO or the CFTC,
                including the name of the person against whom such action was taken,
                the action taken, and the reasons. Information submitted by certain
                individuals or firms to enable NFA and/or CFTC supervision and
                oversight of activities governed by the Commodity Exchange Act, such as
                financial statements, reports and notice filings; disclosure documents;
                and submissions by swap dealers and major swap participants pursuant to
                Commission Regulation 3.10(a)(1)(v)(A) and information developed by the
                NFA and/or CFTC related to such information. Additionally, this system
                includes information submitted by individuals related to notices of
                exemption or claims for exemption from certain CFTC requirements and
                information developed by NFA and/or the CFTC related to the notice of
                exemption or claim for exemption.
                [[Page 17813]]
                RECORD SOURCE CATEGORIES:
                 Sources of the information include the individual or firm on whom
                the record is maintained; the individual's employer; individuals filing
                reparations complaints or answers; Federal, state and local regulatory
                and law enforcement agencies; commodities and securities exchanges;
                NFA; Financial Industry Regulatory Authority (FINRA); foreign futures
                and securities authorities and INTERPOL; self-regulatory organizations
                notifying the Commission of disciplinary or other adverse actions
                taken; and other miscellaneous sources.
                ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
                OF USERS AND THE PURPOSES OF SUCH USES:
                 NFA may disclose information contained in those portions of this
                system of records maintained by NFA, but any such disclosure must be
                made in accordance with NFA rules that have been approved by the
                Commission or permitted to become effective without Commission
                approval. Disclosures must be made under circumstances authorized by
                the Commission as consistent with the Commission's regulations and
                routine uses.
                 NFA generally makes available to the public on NFA website(s),
                including the Background Affiliation Status Information Center (BASIC),
                firm directories, registration forms, business addresses, telephone
                numbers, registration categories, biographical supplements (except for
                any confidential information on supplementary attachments to the
                forms), 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. NFA also will release
                records or portions of records to any member of the public if such
                records or portions are ``public'' or ``publicly available'' under
                Commission Regulations 1.10(g) or 145.0. For information not made
                available to the public as explained above, NFA may disclose
                information contained in those portions of this system of records
                maintained by NFA.
                 These records and information in these records may be used:
                 (a) To disclose to any person with whom an applicant or registrant
                is or plans to be associated as an associated person or affiliated as a
                principal or with whom an individual is or plans on being associated as
                a swap associated person;
                 (b) To disclose to any futures commission merchant or retail
                foreign exchange dealer with whom an introducing broker, whether an
                applicant or registrant, has or plans to enter into a guarantee
                agreement under CFTC Regulation 1.10;
                 (c) To disclose to boards of trade designated as contract markets
                or to any other futures associations registered with the Commission to
                assist those organizations in carrying out their responsibilities under
                the Act;
                 (d) To disclose pursuant to an order of a court of competent
                jurisdiction; except that, subpoenas and summonses covering non-public
                portions of registration records and copies of the non-public records
                shall be promptly forwarded to the Commission to enable the Commission
                to consult with NFA on how to proceed;
                 (e) To disclose to the public certain background information about
                firms and industry professionals to allow them to understand NFA
                membership, CFTC registration status, and relevant background
                information;
                 (f) To disclose in any administrative proceeding before the
                Commission, in any injunctive action authorized under the Commodity
                Exchange Act, or in any other action or proceeding in which the
                Commission or its staff participates as a party or the Commission
                participates as amicus curiae;
                 (g) To disclose to Federal, State, local, territorial, Tribal, or
                foreign agencies for use in meeting their statutory or regulatory
                requirements;
                 (h) To disclose to any ``registered entity,'' as defined in section
                1a of the Commodity Exchange Act, 7 U.S.C. 1, et seq. (``the Act''), to
                the extent disclosure is authorized and will assist the registered
                entity in carrying out its responsibilities under the Act. Information
                may also be disclosed to any registered futures association registered
                under section 17 of the Act to assist it in carrying out its self-
                regulatory responsibilities under the Act, and to any national
                securities exchange or national securities association registered with
                the Securities and Exchange Commission to assist those organizations in
                carrying out their self-regulatory responsibilities under the
                Securities Exchange Act of 1934, 15 U.S.C. 78a, et seq.;
                 (i) To disclose to contractors, grantees, volunteers, experts,
                students, and others performing or working on a contract, service,
                grant, cooperative agreement, or job for the Federal government when
                necessary to accomplish an agency function;
                 (j) To disclose to Congress upon its request, acting within the
                scope of its jurisdiction, pursuant to the Commodity Exchange Act, 7
                U.S.C. 1 et seq., and the rules and regulations promulgated thereunder;
                 (k) To disclose to appropriate agencies, entities, and persons when
                (1) the Commission suspects or has confirmed that there has been a
                breach of the system of records; (2) the Commission has determined that
                as a result of the suspected or confirmed breach there is a risk of
                harm to individuals, the Commission (including its information systems,
                programs, and operations), the Federal Government, or national
                security; and (3) the disclosure made to such agencies, entities, and
                persons is reasonably necessary to assist in connection with the
                Commission's efforts to respond to the suspected or confirmed breach or
                to prevent, minimize, or remedy such harm; or
                 (l) To disclose to another Federal agency or Federal entity, when
                the Commission determines that information from this system of records
                is reasonably necessary to assist the recipient agency or entity in (1)
                responding to a suspected or confirmed breach or (2) preventing,
                minimizing, or remedying the risk of harm to individuals, the recipient
                agency or entity (including its information systems, programs, and
                operations), the Federal Government, or national security, resulting
                from a suspected or confirmed breach.
                POLICIES AND PRACTICES FOR STORAGE OF RECORDS:
                 Paper records are stored in file folders and binders. Electronic
                records, including computer files, are stored on the Commission's
                network, NFA databases or applications, NFA website, and other secure
                electronic media as needed.
                POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:
                 Information covered by this system of records notice may be
                retrieved by the name of the individual or firm, an NFA identification
                number, docket number, or by cross-indexing an individual's file to the
                name of the firm with which the individual is associated or affiliated
                (e.g., the name of the futures commission merchant).
                POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:
                 The records will be maintained in accordance with records
                disposition schedules approved by the National Archives and Records
                Administration. The schedules are available at http://www.cftc.gov.
                [[Page 17814]]
                ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:
                 Records are protected from unauthorized access and improper use
                through administrative, technical, and physical security measures.
                Administrative safeguards include written guidelines on handling
                personal information including agency-wide procedures for safeguarding
                personally identifiable information. In addition, all NFA and CFTC
                staff are required to take annual privacy and security training.
                Technical security measures within NFA and CFTC include restrictions on
                computer access to authorized individuals who have a legitimate need to
                know the information; required use of strong passwords that are
                frequently changed; multi-factor authentication for remote access and
                access to many network components; use of encryption for certain data
                types and transfers; firewalls and intrusion detection applications;
                and regular review of security procedures and best practices to enhance
                security. Physical safeguards include restrictions on building access
                to authorized individuals, 24-hour security guard service, and
                maintenance of records in lockable offices and filing cabinets.
                RECORD ACCESS PROCEDURES:
                 Individuals seeking to determine whether this system of records
                contains information about themselves or seeking access to records
                about themselves in this system of records should address written
                inquiries to the Office of General Counsel, Commodity Futures Trading
                Commission, Three Lafayette Centre, 1155 21st Street NW, Washington, DC
                20581. See 17 CFR 146.3 for full details on what to include in a
                Privacy Act access request.
                 Individuals may also request registration information by telephone
                directly from the NFA information center at (800) 621-3570 or (312)
                781-1410. Inquiries can also be made to NFA by fax at (312) 781-1459 or
                via the internet at [email protected]. NFA will query the
                system about current registration status and registration and
                disciplinary history, and will provide instructions on how to make
                written requests for copies of records.
                CONTESTING RECORD PROCEDURES:
                 Individuals contesting the content of records about themselves
                contained in this system of records should address written inquiries to
                the Office of General Counsel, Commodity Futures Trading Commission,
                Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See
                17 CFR 146.8 for full details on what to include in a Privacy Act
                amendment request.
                NOTIFICATION PROCEDURES:
                 Individuals seeking notification of any records about themselves
                contained in this system of records should address written inquiries to
                the Office of General Counsel, Commodity Futures Trading Commission,
                Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581. See
                17 CFR 146.3 for full details on what to include in a Privacy Act
                notification request. Individuals may also request registration
                information by telephone directly from the NFA information center at
                (800) 621-3570 or (312) 781-1410. Inquiries can also be made to NFA by
                fax at (312) 781-1459 or via the internet at
                [email protected]. NFA will query the system about current
                registration status and registration and disciplinary history, and will
                provide instructions on how to make written requests for copies of
                records. The internet may be used to obtain information on current
                registration status and futures-related regulatory actions at http://www.nfa.futures.org.
                EXEMPTIONS PROMULGATED FOR THE SYSTEM:
                 The records in this system that refer, relate to or are from third-
                party sources related to fitness or other investigations of applicants
                for registration or registrants are exempted by the Commission from
                certain provisions of the Privacy Act of 1974 pursuant to the terms of
                the Privacy Act, 5 U.S.C. 552a(k)(2), and the Commission's rules
                promulgated thereunder, 17 CFR 146.12. These records are exempt from
                the notification procedures, records access procedures, and record
                contest procedures set forth in the system notices of other systems of
                records, and from the requirement that the sources of records in the
                system be described.
                HISTORY:
                 A previous version of this SORN was published in the Federal
                Register on September 30th, 2014 at 79 FR 58752.
                 Issued in Washington, DC, on April 22, 2019, by the Commission.
                Robert Sidman,
                Deputy Secretary of the Commission.
                [FR Doc. 2019-08397 Filed 4-25-19; 8:45 am]
                BILLING CODE 6351-01-P
                

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