Conflict of Interest Policies
and Procedures by Future Commission Merchants and introducing
Brokers
Extension without change of a currently approved collection
No
Regular
07/21/2025
Requested
Previously Approved
36 Months From Approved
09/30/2025
82,216
91,590
42,542
47,392
0
0
Section 732 of Title VII of the
Dodd-Frank Wall Street Reform and Consumer Protection Act
(Dodd-Frank Act, Pub L. No. 111-203, 124 Stat. 1376 (2010)) amended
section 4d of the Commodity Exchange Act (“CEA”) to require each
futures commission merchant (“FCM”) and introducing broker (“IB”)
to implement conflicts of interest systems and procedures that: (1)
establish structural and institutional safeguards reasonably
designed to ensure that any persons within the firm researching or
analyzing the price or market for any commodity are separated by
appropriate informational partitions within the firm from the
review, pressure or oversight of persons whose involvement in
trading or clearing activities might potentially bias their
judgment or supervision, and (2) address other issues that the
Commission determines to be appropriate. Pursuant to section 4d(c)
of the CEA, the Commission adopted regulation 1.71. The regulation
generally requires FCMs and IBs to: (1) develop conflicts of
interest systems, procedures and disclosures; (2) adopt and
implement written policies and procedures reasonably designed to
ensure compliance with its conflicts of interest and disclosure
obligations; and (3) maintain specified records related to those
requirements. “Small introducing brokers,” as defined within the
regulation, are subject to modified requirements, but are obligated
to adopt certain policies and procedures and to provide specified
disclosures. The regulation does not require reporting to the
Commission. The recordkeeping obligations imposed by the regulation
are essential to ensuring that FCMs and IBs develop and maintain
the conflicts of interest systems, procedures, and disclosures
required by the CEA and Commission regulations and to the effective
evaluation of such registrants’ actual compliance with the CEA and
Commission regulations
There are no program changes.
However, the Commission has revised its estimate in light of the
current number of Commission registered FCMs and IBs. Since 2022,
the number of registrants impacted by this collection has decreased
from 1,065 to 959, resulting in an overall decrease in the
estimated burden hours for the collection from 47,392 total burden
hours to 42,542 annual burden hours, an overall reduction in burden
of 4,850 hours.
$0
No
No
No
No
Yes
No
No
Kenny Wright 202 326-2907
kwright@ftc.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.
2025 Supporting Statement 3038-0078.docx
Conflict of Interest Policies and Procedures by Futures Commission Merchants and Introducing Brokers