Overview
Title
Agency Information Collection Activities: Notice of Intent To Renew Collection 3038-0095; Large Trader Reporting for Physical Commodity Swaps
Agencies
ELI5 AI
The Commodity Futures Trading Commission (CFTC) wants to hear people's thoughts on how they collect information from big traders who swap stuff like oil or wheat. They want to make sure it's not too hard for traders to give this info and are open to ideas on how to do it better.
Summary AI
The Commodity Futures Trading Commission (CFTC) is seeking public feedback on its plan to renew the data collection regarding large trader reporting for physical commodity swaps. This process, under the Paperwork Reduction Act, involves agencies publishing notices about information collection and receiving comments for 60 days. The CFTC aims to ensure the data collection is effective, minimizes burdens on responders, and estimates that around 5,088 respondents will provide information, resulting in about 65,412 total annual burden hours. Comments are to be submitted by April 26, 2021.
Abstract
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.
Keywords AI
Sources
AnalysisAI
The document invites the public to comment on the Commodity Futures Trading Commission (CFTC)'s proposal to renew the information collection requirements related to large trader reporting for physical commodity swaps. This initiative is part of the adherence to the Paperwork Reduction Act, which mandates federal agencies to seek public input before continuing an existing data collection. The proposal anticipates participation from around 5,088 respondents, contributing an estimated 65,412 total annual burden hours.
Summary of the Proposal
The CFTC is seeking to ensure that the data it collects is effective for fulfilling its regulatory functions. Public comments are invited to evaluate the practicality, necessity, and burden of these data collection efforts. The call for input extends until April 26, 2021, and stakeholders can submit comments through various methods, including online and by mail.
Key Issues and Concerns
Complex Language and Legal References: The document contains technical jargon and legal citations, such as "44 U.S.C. 3501 et seq.," without simplifying them for the general public. This complexity may hinder engagement from those unfamiliar with legal proceedings or regulations.
Methods of Submission: While the document offers multiple avenues for submitting comments, this could lead to confusion, especially if stakeholders are unsure which method applies to them. It also increases the risk of duplicate submissions.
Language Restrictions: Comments must be in English or accompanied by a translation. This requirement, though standard, may discourage non-English speakers from participating, thus limiting the diversity of input.
Burden Assessment: The document discusses the burden of data collection but lacks a clear explanation of what constitutes an acceptable level of burden. The estimated average burden of 1.57 hours per response seems low without context on the complexity involved.
Handling of Comments: There is some ambiguity about how comments are processed or potentially removed. This could deter individuals from providing full and open feedback, fearing censorship or misinterpretation.
Data Privacy: The document does not specify how collected data will be protected. This absence of information could raise privacy concerns for entities submitting sensitive information, particularly in a field as sensitive as commodities trading.
Impact on the Public and Stakeholders
Broad Public Impact
The proposal primarily affects traders, clearing organizations, and market analysts involved with physical commodity swaps. Indirectly, it impacts the broader public by influencing the transparency and regulation of commodity markets, which can affect prices and availability.
Stakeholder Impact
Positive Impacts: For regulatory bodies and the financial markets, the continuation of this data collection supports robust oversight of commodity trading, potentially minimizing market manipulation and enhancing market stability.
Negative Impacts: Stakeholders such as small traders or firms may find the data collection processes burdensome. The lack of clarity on burden assessments and privacy protections can further complicate compliance and cooperation.
In conclusion, while the CFTC aims to improve its data collection under the PRA, addressing the noted issues, such as simplifying communication and ensuring data privacy, could enhance stakeholder engagement and effectiveness of the information gathered. The proposal's impact is largely sector-specific, although it has broader implications for market regulation and consumer protection.
Issues
• The document uses technical jargon and legal references such as '44 U.S.C. 3501 et seq.' and '5 CFR 1320.3' without providing a layman's explanation, which may be difficult for the general public to understand.
• The process for submitting comments includes multiple methods (website, mail, hand delivery/courier) which could potentially lead to confusion or duplication if commenters are unclear about which method to use.
• The document specifies that comments must be submitted in English or be accompanied by an English translation, which might limit participation from non-English speakers, although this is a standard requirement.
• The Notice speaks about the burden of the collection of information but does not provide a clear definition or metric for what constitutes an acceptable level of burden.
• There is potential ambiguity about how comments are handled, specifically under what circumstances they might be redacted or removed from the public record.
• The estimated burden hours per response (1.57) might seem low, but without context on the complexity of the required information, it's unclear whether this is a realistic estimate.
• There is no specific mention of how the data collected will be protected, which might raise privacy concerns for entities required to report sensitive information.