Notice2022-21200
Submission for OMB Review; Comment Request; Extension: Rule 15c3-5
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
September 30, 2022
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 87 Issue 189 (Friday, September 30, 2022)</title>
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[Federal Register Volume 87, Number 189 (Friday, September 30, 2022)]
[Notices]
[Pages 59476-59477]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2022-21200]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-601, OMB Control No. 3235-0673]
Submission for OMB Review; Comment Request; Extension: Rule 15c3-
5
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.) (``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 15c3-5 (17 CFR 240.15c3-5) under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
Rule 15c3-5 under the Exchange Act requires brokers or dealers with
access to trading directly on an exchange or alternative trading system
(``ATS''), including those providing sponsored or direct market access
to customers or other persons, to implement risk management controls
and supervisory procedures reasonably designed to manage the financial,
regulatory, and other risks of this business activity.
The rule requires brokers or dealers to establish, document, and
maintain certain risk management controls and supervisory procedures as
well as regularly review such controls and procedures, and document the
review, and remediate issues discovered to assure overall effectiveness
of such controls and procedures. Each such broker or dealer is required
to preserve a copy of its supervisory procedures and a written
description of its risk management controls as part of its books and
records in a manner consistent with Rule 17a-4(e)(7) under the Exchange
Act. Such regular review is required to be conducted in accordance with
written procedures and is required to be documented. The broker or
dealer is required to preserve a copy of such written procedures, and
documentation of each such review, as part of its books and records in
a manner consistent with Rule 17a-4(e)(7) under the Exchange Act, and
Rule 17a-4(b) under the Exchange Act, respectively.
In addition, the Chief Executive Officer (or equivalent officer) is
required to certify annually that the broker or dealer's risk
management controls and supervisory procedures comply with the rule,
and that the broker-dealer conducted such review. Such certifications
are required to be preserved by the broker or dealer as part of its
books and records in a manner consistent with Rule 17a-4(b) under the
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
Respondents consist of broker-dealers with access to trading
directly on an exchange or ATS. The Commission estimates that there are
currently 520 respondents. To comply with Rule 15c3-5, these
respondents will spend a total of approximately 83,200 hours per year
(160 hours per broker-dealer x 520 broker-dealers = 83,200 hours). At
an average internal cost per burden hour of approximately $401.89, the
resultant total related internal cost of compliance for these
respondents is $33,437,040 per year (83,200 burden hours multiplied by
approximately $401.89/hour). In addition, for hardware and software
expenses, the Commission estimates that the average annual external
cost would be approximately $20,500 per broker-dealer, or $10,660,000
in the aggregate ($20,500 per broker-dealer x 520 brokers and dealers =
$10,6660,000).
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.
[[Page 59477]]
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 by October 31, 2022 to (i)
<a href="/cdn-cgi/l/email-protection#6a27283244252728442523382b44392f29350e0f190135050c0c03090f182a050708440f051a440d051c"><span class="__cf_email__" data-cfemail="2c616e740263616e0263657e6d027f696f7348495f4773434a4a454f495e6c43414e0249435c024b435a">[email protected]</span></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#38686a7967755951545a5740784b5d5b165f574e"><span class="__cf_email__" data-cfemail="6c3c3e2d33210d05000e03142c1f090f420b031a">[email protected]</span></a>.
Dated: September 26, 2022.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2022-21200 Filed 9-29-22; 8:45 am]
BILLING CODE 8011-01-P
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