Notice2022-06151
Submission for OMB Review; 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
March 23, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 56 (Wednesday, March 23, 2022)</title>
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[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16538-16539]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-06151]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-441, OMB Control No. 3235-0497]
Submission for OMB Review; 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 15c3-4
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), 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
15c3-4 (17 CFR. 240.15c3-4) (the ``Rule'') under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.).
Rule 15c3-4 requires certain broker-dealers that are registered
with the Commission as OTC derivatives dealers, or who compute their
net capital charges under Appendix E to Rule 15c3-1 (17 CFR 240.15c3-1)
(``ANC firms''), to establish, document, and maintain a system of
internal risk management controls. In addition, security-based swap
dealers (``SBSDs'') that are subject to Rule 18a-1 (17 CFR 240.18a-1)
must comply with Rule 15c3-4 as if they were OTC derivatives dealers.
The Rule sets forth the basic elements for an OTC derivatives dealer,
an ANC firm, or an SBSD to consider and include when establishing,
documenting, and reviewing its internal risk management control system,
which is designed to, among other things, ensure the integrity of an
OTC derivatives dealer's, an ANC firm's or an SBSD's risk measurement,
monitoring, and management process, to clarify accountability at the
appropriate organizational level, and to define the permitted scope of
the firm's activities and level of risk. The Rule also requires that
management of an OTC derivatives dealer, an ANC firm, or an SBSD must
periodically review, in accordance with written procedures, the firm's
business activities for consistency with its risk management
guidelines.
The staff estimates that the average amount of time a new firm
subject to Rule 15c3-4 will spend establishing and documenting its risk
management control system is approximately 2,000 hours (666.666667
hours per year when annualized over three years) and that, on average,
an existing firm subject to Rule 15c3-4 will spend approximately 200
hours each year to maintain (e.g., reviewing and updating) its risk
management control system. Currently, five firms are registered with
the Commission as OTC derivatives dealers, five as ANC firms, and one
as an SBSD. The staff estimates that approximately two new additional
entities may register as OTC derivatives dealers, one new entity may
register as an ANC firm, and two new entities may register as SBSDs
subject to the requirements of Rule 15c3-4 within the next three years.
Thus, the estimated annual burden would be 2,200 hours for the eleven
existing firms (five OTC derivatives dealers, five ANC firms, and one
SBSD) currently required to comply with Rule 15c3-4 to maintain their
risk management control systems,\1\ 3,333 hours for the five new firms
(two new OTC derivatives dealers, one new ANC firm, and two new SBSDs)
to establish and document their risk management control systems,\2\ and
1,000 hours for the five new firms (two new OTC derivatives dealers,
one new ANC firm, and two new SBSDs) to maintain their risk management
control systems.\3\ Accordingly, the staff estimates the total
[[Page 16539]]
annual burden associated with Rule 15c3-4 for the 16 respondents (nine
OTC derivatives dealers, six ANC firms, and five SBSDs) will be
approximately 6,533 hours per year.
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\1\ (200 hours x 11 firms) = 2200.
\2\ ((2,000 hours/3 years) x 5 firms) = 3,333.
\3\ (200 hours x 5 firms) = 1000.
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The records required to be made pursuant to the Rule and the
results of the periodic reviews conducted under paragraph (d) of Rule
15c3-4 must be preserved under Rule 17a-4 of the Exchange Act (17 CFR
240.17a-4) for a period of not less than three years, the first two
years in an easily accessible place. The Commission will not generally
publish or make available to any person notices or reports received
pursuant to the Rule. The statutory basis for the Commission's refusal
to disclose such information to the public is the exemption contained
in section (b)(4) of the Freedom of Information Act (5 U.S.C. 552),
which essentially provides that the requirement of public dissemination
does not apply to commercial or financial information which is
privileged or confidential.
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 Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending
an email to: <a href="/cdn-cgi/l/email-protection#540406150b19353d38363b2c142731377a333b22"><span class="__cf_email__" data-cfemail="46161407190b272f2a24293e0635232568212930">[email protected]</span></a>.
Dated: March 18, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06151 Filed 3-22-22; 8:45 am]
BILLING CODE 8011-01-P
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