Rule2021-11572
Recordkeeping and Reporting Requirements for Security-Based Swap Dealers, Major Security-Based Swap Participants, and Broker-Dealers; Correction
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
June 11, 2021
Effective
June 11, 2021
Issuing agencies
Securities and Exchange Commission
Abstract
On September 19, 2019, the Securities and Exchange Commission (the ``Commission'') adopted recordkeeping, reporting, and notification requirements applicable to security-based swap dealers and major security-based swap participants, securities count requirements applicable to certain security-based swap dealers, and additional recordkeeping requirements applicable to broker-dealers to account for their security-based swap and swap activities. Release 34-87005 (Sept. 19, 2019) was published in the Federal Register on Dec. 16, 2019 ( ). This document corrects certain technical inaccuracies in that release.
Full Text
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<title>Federal Register, Volume 86 Issue 111 (Friday, June 11, 2021)</title>
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[Federal Register Volume 86, Number 111 (Friday, June 11, 2021)]
[Rules and Regulations]
[Pages 31115-31117]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-11572]
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SECURITIES AND EXCHANGE COMMISSION
17 CFR Parts 200, 240 and 249
[Release No. 34-87005B; File No. S7-05-14]
RIN 3235-AL45
Recordkeeping and Reporting Requirements for Security-Based Swap
Dealers, Major Security-Based Swap Participants, and Broker-Dealers;
Correction
AGENCY: Securities and Exchange Commission.
ACTION: Final rule; correcting amendment.
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SUMMARY: On September 19, 2019, the Securities and Exchange Commission
(the ``Commission'') adopted recordkeeping, reporting, and notification
requirements applicable to security-based swap dealers and major
security-based swap participants, securities count requirements
applicable to certain security-based swap dealers, and additional
recordkeeping
[[Page 31116]]
requirements applicable to broker-dealers to account for their
security-based swap and swap activities. Release 34-87005 (Sept. 19,
2019) was published in the Federal Register on Dec. 16, 2019 ( ). This
document corrects certain technical inaccuracies in that release.
DATES: Effective June 11, 2021.
FOR FURTHER INFORMATION CONTACT: Valentina Minak Deng, Special Counsel,
at (202) 551-5778; Division of Trading and Markets, Securities and
Exchange Commission, 100 F Street NE, Washington, DC 20549-7010.
SUPPLEMENTARY INFORMATION: We are making technical corrections to 17
CFR 240.17a-4 and 17 CFR 240.17a-12 under the Securities Exchange Act
of 1934, and Parts II and IIC of Form X-17A-5 (referenced in 17 CFR
249.617). The release resulting in the technical inaccuracies was
published in the Federal Register on December 16, 2019 [84 FR 68550],
and adopted by the Commission in Exchange Act Release No. 87005 on
September 19, 2019.
List of Subjects
17 CFR Part 240
Administrative practice and procedure, Brokers, Confidential
business information, Fraud, Reporting and recordkeeping requirements,
Securities, Swaps.
17 CFR Part 249
Brokers, Recordkeeping and reporting requirements, Securities.
Accordingly, 17 CFR parts 240 and 249 are corrected by making the
following correcting amendments:
PART 240--GENERAL RULES AND REGULATIONS, SECURITIES EXCHANGE ACT OF
1934
0
1. The authority citation for part 240 continues to read, in part, as
follows:
Authority: 15 U.S.C. 77c, 77d, 77g, 77j, 77s, 77z-2, 77z-3,
77eee, 77ggg, 77nnn, 77sss, 77ttt, 78c, 78c-3, 78c-5, 78d, 78e, 78f,
78g, 78i, 78j, 78j-1, 78k, 78k-1, 78l, 78m, 78n, 78n-1, 78o, 78o-4,
78o-10, 78p, 78q, 78q-1, 78s, 78u-5, 78w, 78x, 78dd, 78ll, 78mm,
80a-20, 80a-23, 80a-29, 80a-37, 80b-3, 80b-4, 80b-11, and 7201 et
seq., and 8302; 7 U.S.C. 2(c)(2)(E); 12 U.S.C. 5221(e)(3); 18 U.S.C.
1350; Pub. L. 111-203, 939A, 124 Stat. 1376 (2010); and Pub. L. 112-
106, sec. 503 and 602, 126 Stat. 326 (2012), unless otherwise noted.
* * * * *
Section 240.17a-14 is also issued under Public Law 111-203, sec.
913, 124 Stat. 1376 (2010).
* * * * *
0
2. Amend Sec. 240.17a-4 by revising paragraphs (a) and (l) to read as
follows:
Sec. 240.17a-4 Records to be preserved by certain exchange members,
brokers and dealers.
* * * * *
(a) Every member, broker or dealer subject to Sec. 240.17a-3 must
preserve for a period of not less than 6 years, the first two years in
an easily accessible place, all records required to be made pursuant to
Sec. 240.17a-3(a)(1) through (3), (5), and (21) and (22), and
analogous records created pursuant to Sec. 240.17a-3(e).
* * * * *
(l) Records for the most recent two year period required to be made
pursuant to Sec. 240.17a-3(f) and paragraphs (b)(4) and (e)(7) of this
section which relate to an office shall be maintained at the office to
which they relate. If an office is a private residence where only one
associated person (or multiple associated persons who reside at that
location and are members of the same immediate family) regularly
conducts business, and it is not held out to the public as an office
nor are funds or securities of any customer of the member, broker or
dealer handled there, the member, broker or dealer need not maintain
records at that office, but the records must be maintained at another
location within the same State as the member, broker or dealer may
select. Rather than maintain the records at each office, the member,
broker or dealer may choose to produce the records promptly at the
request of a representative of a securities regulatory authority at the
office to which they relate or at another location agreed to by the
representative.
* * * * *
0
3. Amend Sec. 240.17a-12 by revising paragraph (i)(2) to read as
follows:
Sec. 240.17a-12 Reports to be made by certain OTC derivatives
dealers.
* * * * *
(i) * * *
(2) If, during the course of the audit or interim work, the
certified public accountant determines that any material inadequacies
exist in the accounting system, internal accounting controls,
procedures for safeguarding securities, or as otherwise defined in
paragraph (h)(2) of this section, then the certified public accountant
shall call it to the attention of the chief financial officer of the
OTC derivatives dealer, who shall inform the Commission by telegraphic
or facsimile notice within 24 hours thereafter as set forth in Sec.
240.17a-11. The OTC derivatives dealer shall also furnish the certified
public accountant with a copy of said notice to the Commission by
telegram or facsimile within the same 24 hour period. If the certified
public accountant fails to receive such notice from the OTC derivatives
dealer within that 24 hour period, or if the certified public
accountant disagrees with the statements contained in the notice of the
OTC derivatives dealer, the certified public accountant shall inform
the Commission by report of material inadequacy within 24 hours
thereafter as set forth in Sec. 240.17a-11. Such report from the
certified public accountant shall, if the OTC derivatives dealer failed
to file a notice, describe any material inadequacies found to exist. If
the OTC derivatives dealer filed a notice, the certified public
accountant shall file a report detailing the aspects, if any, of the
OTC derivatives dealer's notice with which the certified public
accountant does not agree.
* * * * *
PART 249--FORMS, SECURITIES EXCHANGE ACT OF 1934
0
4. The authority citation for part 249 continues to read, in part, as
follows:
Authority: 15 U.S.C. 78a et seq. and 7201 et seq.; 12 U.S.C.
5461 et seq.; 18 U.S.C. 1350; Sec. 953(b), Pub. L. 111-203, 124
Stat. 1904; Sec. 102(a)(3), Pub. L. 112-106, 126 Stat. 309 (2012);
Sec. 107, Pub. L. 112-106, 126 Stat. 313 (2012), and Sec. 72001,
Pub. L. 114-94, 129 Stat. 1312 (2015), unless otherwise noted.
* * * * *
Section 249.617 is also issued under Pub. L. 111-203, 939, 939A,
124. Stat. 1376 (2010) (15 U.S.C. 78c, 15 U.S.C. 78o-7 note).
* * * * *
Note: The text of Part II of Form X-17A-5 does not, and this
amendment will not, appear in the Code of Federal Regulations.
0
5. Amend Part II of Form X-17A-5 (referenced in Sec. 249.617 of this
chapter) by:
0
a. Removing ``10. Market risk exposure--for Basel 2.5 firms (sum of
Lines 10E, 10H, 10I, 10J, 10K, 10L, 10N, and 10O)
[GRAPHIC] [TIFF OMITTED] TR11JN21.001
and adding in its place ``10. Market risk exposure--for Basel 2.5 firms
(sum of Lines 10E, 10H, 10I, 10J, 10K, 10L, 10M, 10N, and 10O)
[GRAPHIC] [TIFF OMITTED] TR11JN21.002
0
b. Removing ``Total aggregate indebtedness liabilities from Statement
of Financial Condition (Item 1760)'' and adding in its place ``Total
aggregate indebtedness liabilities from Statement of Financial
Condition (Item 1230)''.
[[Page 31117]]
0
c. Adding ``For the period (MMDDYY) from
[GRAPHIC] [TIFF OMITTED] TR11JN21.003
and ``Number of months included in this statement
[GRAPHIC] [TIFF OMITTED] TR11JN21.004
in the ``Statement of Income (Loss) or Statement of Comprehensive
Income, As Applicable'' section in a new line immediately preceding the
line reading ``REVENUE''.
0
d. Removing ``B. Additions (including non-conforming capital of $
[GRAPHIC] [TIFF OMITTED] TR11JN21.005
and adding in its place ``B. Additions (including non-conforming
capital of $
[GRAPHIC] [TIFF OMITTED] TR11JN21.006
0
e. Removing ``(k)(1)--$2,500 capital category as per Rule 15c3-3'' and
adding in its place ``(k)(1)--Limited business (mutual funds and/or
variable annuities only)'' in the ``Claiming an Exemption from Rule
15c3-3'' section.
0
f. Removing ``3. Other accrued withdrawals'' and adding in its place
``3. Other anticipated withdrawals'' in the ``Other Capital
Withdrawals--Recap'' section.
0
g. In the ``Computation of CFTC Minimum Capital Requirements'' section,
removing
``v. Enter the sum of Lines A.ii and A.iv. . . . . ___
[GRAPHIC] [TIFF OMITTED] TR11JN21.007
and adding in its place:
``v. Amount of uncleared swap margin. . . . . $___
[GRAPHIC] [TIFF OMITTED] TR11JN21.008
vi. If the FCM is also registered as a swap dealer, enter 2% of
Line A.v. . . . . $___
[GRAPHIC] [TIFF OMITTED] TR11JN21.009
vii. Enter the sum of Lines A.ii, A.iv, and A.vi. . . . . $___
[GRAPHIC] [TIFF OMITTED] TR11JN21.010
Note: The text of Part IIC of Form X-17A-5 does not, and this
amendment will not, appear in the Code of Federal Regulations.
0
6. Amend Part IIC of Form X-17A-5 (referenced in Sec. 249.617 of this
chapter) by:
0
a. Removing
[GRAPHIC] [TIFF OMITTED] TR11JN21.011
in Lines 13.B., 13.B.1. and 13.B.2. of the Balance Sheet section and
adding in its place
[GRAPHIC] [TIFF OMITTED] TR11JN21.012
respectively.
b. Removing
[GRAPHIC] [TIFF OMITTED] TR11JN21.013
in Lines 9 and 10 of Column B the Regulatory Capital section and adding
in its place
[GRAPHIC] [TIFF OMITTED] TR11JN21.014
respectively.
Dated: May 27, 2021.
Vanessa A. Countryman,
Secretary.
[FR Doc. 2021-11572 Filed 6-10-21; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on June 11, 2021.
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