Notice2024-14482
Proposed Collection; Comment Request; Extension: Rules 15Fi-3 Through 15Fi-5
Primary source
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Published
July 2, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 127 (Tuesday, July 2, 2024)</title>
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[Federal Register Volume 89, Number 127 (Tuesday, July 2, 2024)]
[Notices]
[Pages 54894-54895]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-14482]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-822, OMB Control No. 3235-0777]
Proposed Collection; Comment Request; Extension: Rules 15Fi-3
Through 15Fi-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.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rules 15Fi-3 through 15Fi-5
(17 CFR 240.15Fi-3 through 240.15Fi-5), 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.
Rules 15Fi-3 through 15Fi-5 (17 CFR 240.15Fi-3 through 240.15Fi-5)
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
require registered security-based swap dealers (``SBS dealer'') and
registered major security-based swap participants (``major SBS
participant'') (each SBS dealer and each major SBS participant
hereafter referred to as an ``SBS Entity'') to apply specific risk
mitigation techniques to portfolios of security-based swaps not
submitted for clearing. Rules 15Fi-3 through 15Fi-5 impose a collection
of information requirements on SBS Entities. Specifically, Rule 15Fi-3
requires SBS Entities to reconcile outstanding security-based swaps
with applicable counterparties on a periodic basis. Rule 15Fi-4
requires SBS Entities to engage in certain forms of portfolio
compression exercises with their counterparties, as appropriate. Rule
15Fi-5 requires SBS Entities to execute written security-based swap
trading relationship documentation with each of its counterparties
prior to, or contemporaneously with, executing a security-based swap
transaction, and to periodically audit the policies and procedures
governing such documentation.
Rules 15Fi-3 through 15Fi-5 have been promulgated pursuant to
Section 15F(i)(2) of the Exchange Act, which requires that the
Commission ``adopt rules governing documentation standards for
security-based swap dealers and major security-based swap
participants.'' Accordingly, the collections of information are at the
heart of each of the underlying documentation requirements of the
rules, such that not conducting them (or reducing the frequency of
collection) would not be consistent with the statutory provisions.
Moreover, the policies and procedures required to be established,
maintained, and followed pursuant to Rules 15Fi-3 through 15Fi-5 are
instrumental in focusing and assessing compliance with the underlying
rules, consistent with how similar requirements are used in numerous
other Commission rules. Thus, eliminating such collections (or reducing
the frequency of collection) also would be inconsistent with the
applicable statutory provisions and the intended effects of the rules.
The Commission estimated that approximately 53 entities may fit
within the definition of SBS dealer, and up to five entities may fit
within the definition of major SBS participant. Thus, the Commission
estimated that approximately 58 entities would be required to register
with the Commission as SBS Entities and would be subject to Rules 15Fi-
3 through 15Fi-5. Of the 58 entities that would be required to register
with the Commission as SBS Entities, the Commission estimated that
approximately 20 would be dually-registered with the Commodity Futures
Trading Commission (``CFTC'') as swap dealers or major swap
participants. As the Rules 15Fi-3 through 15Fi-5 are largely similar to
those adopted by the CFTC, dually-registered entities may have
procedures and systems in place to collect the information, thereby
minimizing compliance burdens. The Commission estimated that the total
annual industry burden under 15Fi-3 through 15Fi-5 is approximately
464,836 hours per year.
[[Page 54895]]
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
estimates of the burden of the proposed collection of information; (c)
ways to enhance the quality, utility, and clarity of the information
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 by
August 30, 2024.
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
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to:
<a href="/cdn-cgi/l/email-protection#27777566786a464e4b45485f6754424409404851"><span class="__cf_email__" data-cfemail="b7e7e5f6e8fad6dedbd5d8cff7c4d2d499d0d8c1">[email protected]</span></a>.
Dated: June 26, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-14482 Filed 7-1-24; 8:45 am]
BILLING CODE 8011-01-P
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