Notice2021-24427
Proposed Collection; Comment Request
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
November 9, 2021
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 86 Issue 214 (Tuesday, November 9, 2021)</title>
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[Federal Register Volume 86, Number 214 (Tuesday, November 9, 2021)]
[Notices]
[Page 62235]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-24427]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-442, OMB Control No. 3235-0498]
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
Extension:
Rule 17a-12/Form X-17A-5 Part II
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 17a-12 (17 CFR 240.17a-
12) and Part II of Form X-17A-5 (17 CFR 249.617) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission plans to
submit this existing collection of information to the Office of
Management and Budget (``OMB'') for extension and approval.
Rule 17a-12 is the reporting rule tailored specifically for over-
the-counter (``OTC'') derivatives dealers registered with the
Commission, and Part II of Form X-17A-5, the Financial and Operational
Combined Uniform Single (``FOCUS'') Report, is the basic document for
reporting the financial and operational condition of OTC derivatives
dealers. Rule 17a-12 requires registered OTC derivatives dealers to
file Part II of the FOCUS Report quarterly. Rule 17a-12 also requires
that OTC derivatives dealers file audited financial statements
(``audited report'') annually.
The reports required under Rule 17a-12 provide the Commission with
information used to monitor the operations of OTC derivatives dealers
and to enforce their compliance with the Commission's rules. These
reports also enable the Commission to review the business activities of
OTC derivatives dealers and to anticipate, where possible, how these
dealers may be affected by significant economic events.
There are currently five registered OTC derivatives dealers. The
staff expects that three of those firms will register as Security-Based
Swap Dealers within the next three years and therefore will no longer
be subject to Rule 17a-12. Thus, only two OTC derivatives dealers will
be subject to the requirements of Rule 17a-12. The staff estimates that
the average amount of time necessary to prepare and file the quarterly
reports required by the rule is eighty hours per OTC derivatives dealer
\1\ per year and that the average amount of time to prepare and file
the annual audited report is 100 hours per OTC derivatives dealer per
year, for a total reporting burden of 180 hours per OTC derivatives
dealer annually. Thus the staff estimates that the total industry-wide
time burden to comply with the requirements of Rule 17a-12 is 360 hours
per year (180 x 2). The Commission estimates that the average annual
cost per OTC derivatives dealer for an independent public accountant to
examine the financial statements is approximately $46,300 per OTC
derivatives dealer. Thus, the total industry-wide annual cost burden is
approximately $92,600 ($46,300 x 2).
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\1\ Based upon an average of 4 responses per year and an average
of 20 hours spent preparing each response.
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Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information
shall have practical utility; (b) the accuracy of the Commission's
estimate of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated
collection techniques or other forms of information technology.
Consideration will be given to comments and suggestions submitted in
writing within 60 days of this publication.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number.
Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John
R. Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email
to: <a href="/cdn-cgi/l/email-protection#451517041a08242c29272a3d053620266b222a33"><span class="__cf_email__" data-cfemail="411113001e0c20282d232e39013224226f262e37">[email protected]</span></a>.
Dated: November 3, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24427 Filed 11-8-21; 8:45 am]
BILLING CODE 8011-01-P
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