Fees for Reviews of the Rule Enforcement Programs of Designated Contract Markets and Registered Futures Associations

COMMODITY FUTURES TRADING
COMMISSION
17 CFR Part 1
Fees for Reviews of the Rule
Enforcement Programs of Designated
Contract Markets and Registered
Futures Associations
AGENCY: Commodity Futures Trading
Commission.
ACTION: Notification of 2021 schedule of fees.
SUMMARY: The Commodity Futures
Trading Commission (‘‘CFTC’’ or
‘‘Commission’’) charges fees to designated contract markets and registered futures associations to recover the costs incurred by the Commission in the operation of its program of oversight of self-regulatory organization rule enforcement programs, specifically

1National Futures Association is the only registered futures association. 2See Section 237 of the Futures Trading Act of 1982, 7 U.S.C. 16a, and 31 U.S.C. 9701. For a broader discussion of the history of Commission fees, see 52 FR 46070, Dec. 4, 1987. 3 58 FR 42643, Aug. 11, 1993, and 17 CFR part 1, app. B National Futures Association (‘‘NFA’’), a registered futures association, and the designated contract markets. Fees collected from each self-regulatory organization are deposited in the Treasury of the United States as miscellaneous receipts. The calculation of the fee amounts charged for 2021 by this document is based upon an average of actual program costs incurred during fiscal year (‘‘FY’’) 2018, FY 2019, and FY 2020. DATES: Each self-regulatory organization is required to remit electronically the applicable fee on or before August 16, 2022. FOR FURTHER INFORMATION CONTACT: Joel Mattingley, Chief Financial Officer, Commodity Futures Trading Commission; (202) 418–5310; Three Lafayette Centre, 1155 21st Street NW, Washington, DC 20581; jmattingley@ cftc.gov. For information on electronic payments, contact Jennifer Fleming; (202) 418–5034; jfleming@cftc.gov. SUPPLEMENTARY INFORMATION:
I. Background Information
A. General
This document relates to fees for the
Commission’s review of the rule enforcement programs at the registered futures associations 1 and designated contract markets (‘‘DCM’’), each of which is a self-regulatory organization (‘‘SRO’’) regulated by the Commission. The Commission recalculates the fees charged each year to cover the costs of operating this Commission program.2 The fees are set each year based on direct program costs, plus an overhead factor. The Commission calculates actual costs, then calculates an alternate fee taking volume into account, and then charges the lower of the two.3 B. Overhead Rate The fees charged by the Commission to the SROs are designed to recover program costs, including direct labor costs and overhead. The overhead rate is calculated by dividing total Commission-wide overhead direct program labor costs into the total amount of the Commission-wide overhead pool. For this purpose, direct program labor costs are the salary costs of personnel working in all Commission programs. Overhead costs generally consist of the following Commission￾wide costs: Indirect personnel costs (leave and benefits), rent, communications, contract services, utilities, equipment, and supplies. This formula has resulted in the following overhead rates for the most recent three years (rounded to the nearest whole percent): 182 percent for FY 2018, 174 percent for FY 2019, and 158 percent for FY 2020.
C. Conduct of SRO Rule Enforcement
Reviews
Under the formula adopted by the
Commission in 1993, the Commission calculates the fee to recover the costs of its rule enforcement reviews and examinations, based on the three-year average of the actual cost of performing such reviews and examinations at each SRO. The cost of operation of the Commission’s SRO oversight program varies from SRO to SRO, according to the size and complexity of each SRO’s program. The three-year averaging computation method is intended to smooth out year-to-year variations in cost. Timing of the Commission’s reviews and examinations may affect costs—a review or examination may span two fiscal years and reviews and examinations are not conducted at each SRO each year. As noted above, adjustments to actual costs may be made to relieve the burden on an SRO with a disproportionately large share of program costs. The Commission’s formula provides for a reduction in the assessed fee if an SRO has a smaller percentage of United States industry contract volume than its percentage of overall Commission oversight program costs. This adjustment reduces the costs so that, as a percentage of total Commission SRO oversight program costs, they are in line with the pro rata percentage for that SRO of United States industry-wide contract volume. The calculation is made as follows:
The fee required to be paid to the
Commission by each DCM is equal to the lesser of actual costs based on the three-year historical average of costs for that DCM or one-half of average costs incurred by the Commission for each DCM for the most recent three years, plus a pro rata share (based on average trading volume for the most recent three years) of the aggregate of average annual costs of all DCMs for the most recent three years. The formula for calculating the second factor is: 0.5a + 0.5 vt = current fee. In this formula, ‘‘a’’ equals the average annual costs, ‘‘v’’ equals the percentage of total volume across DCMs over the last three years, and ‘‘t’’ equals the average annual costs for all DCMs. NFA has no contracts traded; hence, its fee is based simply on costs for the most recent three fiscal years. This table summarizes the data used in the calculations of the resulting fee for each entity:
TABLE 1—SUMMARY OF DATA USED IN FEE CALCULATIONS
Actual total costs 3-Year average actual costs 3-Year total volume % Adjusted volume costs 2021 Assessed FY 2018 FY 2019 FY 2020 fee Cantor Futures Exchange, L.P ................ $56,551 .................. $22,702 $26,418 0.03 $13,319 $13,319 CBOE Futures Exchange, LLC ................ 16,033 $40,517 23,325 26,625 1.24 17,482 17,482 Chicago Board of Trade .......................... 2,296 22,835 56,041 27,058 33.31 125,158 27,058 Chicago Mercantile Exchange, Inc .......... 235,127 383,995 260,723 293,282 42.97 290,666 290,666 Eris Exchange, LLC ................................. 33,170 .................. .................. 11,057 0.00 5,540 5,540 ICE Futures U.S., Inc ............................... 50,096 73,464 193,300 105,620 6.59 74,885 74,885 Minneapolis Grain Exchange, Inc ............ 438 39,525 .................. 13,321 0.05 6,813 6,813 Nasdaq OMX Futures Exchange, Inc ...... 109,413 1,741 .................. 37,051 0.27 19,444 19,444 New York Mercantile Exchange/Com￾modity Exchange, Inc ........................... 3,397 45,425 99,311 49,377 15.11 75,328 49,377 Nodal Exchange, LLC .............................. 33,162 2,312 .................. 11,825 0.08 6,180 6,180 North American Derivatives Exchange, Inc ......................................................... 6,986 135,159 2,598 48,248 0.21 24,844 24,844

TABLE 1—SUMMARY OF DATA USED IN FEE CALCULATIONS—Continued
Actual total costs 3-Year average actual costs 3-Year total volume % Adjusted volume costs 2021 Assessed FY 2018 FY 2019 FY 2020 fee OneChicago, LLC Futures Exchange ...... 61,276 .................. .................. 20,425 0.13 10,648 10,648 Subtotal ............................................. 607,946 744,973 658,001 670,307 100.00 670,307 546,255 National Futures Association ................... 507,673 540,821 567,719 538,738 ........................ ................ 538,738 Total .................................................. 1,115,619 1,285,794 1,225,720 1,209,044 100.00 670,307 1,084,993 Columns may not add due to rounding. An example of how the fee is calculated for one exchange, the Chicago Board of Trade, is set forth here:
a. Actual three-year average costs =
$27,058. b. The alternative computation is: [(.5) ($27,058)] + (.5) [(.33307) ($670,307)] = $125,158.
c. The fee is the lesser of a or b; in
this case $27,058.
As noted above, the alternative calculation based on contracts traded is not applicable to NFA because it is not a DCM and has no contracts traded. The Commission’s average annual cost for conducting oversight review of the NFA rule enforcement program during fiscal years 2018 through 2020 was $538,738. The fee to be paid by the NFA for the current fiscal year is $538,738.
II. Schedule of Fees
Fees for the Commission’s review of the rule enforcement programs at the registered futures associations and DCMs regulated by the Commission are as follows:
TABLE 2—SCHEDULE OF FEES
3-Year average actual costs
3-Year total volume %
Adjusted volume costs
2021
Assessed fee
Cantor Futures Exchange, L.P ........................................................................ $26,418 0.03 $13,319 $13,319 CBOE Futures Exchange, LLC ....................................................................... 26,625 1.24 17,482 17,482 Chicago Board of Trade .................................................................................. 27,058 33.31 125,158 27,058 Chicago Mercantile Exchange, Inc .................................................................. 293,282 42.97 290,666 290,666 Eris Exchange, LLC ......................................................................................... 11,057 0.00 5,540 5,540 ICE Futures U.S., Inc ...................................................................................... 105,620 6.59 74,885 74,885 Minneapolis Grain Exchange, Inc .................................................................... 13,321 0.05 6,813 6,813 Nasdaq OMX Futures Exchange, Inc .............................................................. 37,051 0.27 19,444 19,444 New York Mercantile Exchange/Commodity Exchange, Inc ........................... 11,825 0.08 6,180 6,180 Nodal Exchange, LLC ...................................................................................... 48,248 0.21 24,844 24,844 North American Derivatives Exchange, Inc ..................................................... 20,425 0.13 10,648 10,648 OneChicago, LLC Futures Exchange .............................................................. 49,377 15.11 75,328 49,377 Subtotal ..................................................................................................... 670,307 100.00% 670,307 546,255 National Futures Association ........................................................................... 538,738 ........................ ........................ 538,738 Total .......................................................................................................... 1,209,044 100.00 670,307 1,084,993 Columns may not add due to rounding.
III. Payment Method
The Debt Collection Improvement Act
(DCIA) requires deposits of fees owed to the government by electronic transfer of funds. See 31 U.S.C. 3720. All payments should be made via the government payment website https://www.pay.gov/ public/form/start/105542374/. Credit card payments are only acceptable for amounts less than or equal to $24,999. All payments equal to or above $25,000 can be made by electronice funds transfer. Fees collected from each self￾regulatory organization shall be deposited in the Treasury of the United States as miscellaneous receipts. See 7 U.S.C 16a. Issued in Washington, DC, on this 14th day of June, 2022, by the Commission. Robert Sidman, Deputy Secretary of the Commission. [FR Doc. 2022–13141 Filed 6–16–22; 8:45 am] BILLING CODE 6351–01–P