Notice2022-00252
Submission for OMB Review; Comment Request; Extension: Rule 17a-12/Form X-17A-5 Part II
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
January 11, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 7 (Tuesday, January 11, 2022)</title>
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[Federal Register Volume 87, Number 7 (Tuesday, January 11, 2022)]
[Notices]
[Page 1465]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-00252]
[[Page 1465]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-442, OMB Control No. 3235-0498]
Submission for OMB Review; Comment Request; Extension: Rule 17a-
12/Form X-17A-5 Part II
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC
20549-2736
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'') has submitted to the Office of Management
and Budget (``OMB'') a request for approval of extension of the
previously approved 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.).
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 burden per OTC derivatives dealer for an independent public
accountant to examine the financial statements is approximately $46,300
per respondent. 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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The retention period for the recordkeeping requirement under Rule
17a-12 is not less than two years following the date the notice is
submitted. The recordkeeping requirement under this rule is mandatory
to assist the Commission in monitoring OTC derivatives dealers. This
rule does not involve the collection of confidential information.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
The public may view background documentation for this information
collection at the following website: <a href="http://www.reginfo.gov">www.reginfo.gov</a>. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) <a href="http://www.reginfo.gov/public/do/PRAMain">www.reginfo.gov/public/do/PRAMain</a> and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549, or by
sending an email to: <a href="/cdn-cgi/l/email-protection#dc8c8e9d8391bdb5b0beb3a49cafb9bff2bbb3aa"><span class="__cf_email__" data-cfemail="37676576687a565e5b55584f7744525419505841">[email protected]</span></a>.
Dated: January 5, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-00252 Filed 1-10-22; 8:45 am]
BILLING CODE 8011-01-P
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