Notice2024-23764
Proposed Collection; Comment Request; Extension: Rule 15c3-4
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
October 15, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 199 (Tuesday, October 15, 2024)</title>
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[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83059-83060]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-23764]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-441, OMB Control No. 3235-0497]
Proposed Collection; Comment Request; Extension: Rule 15c3-4
Upon Written Request, Copies Available From: Securities and Exchange
[[Page 83060]]
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 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the collection of
information provided for in Rule 15c3-4 (17 CFR 240.15c3-4) 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 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'') 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 SBDS'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,
ANC firm, or 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, seventeen firms are required to
comply with Rule 15c3-4. The staff estimates that approximately six new
additional firms may become subject to the requirements of Rule 15c3-4
within the next three years. Thus, the estimated annual burden would be
3,400 hours for the seventeen existing firms currently required to
comply with Rule 15c3-4 to maintain their risk management control
systems,\1\ 4,000 hours for the six new firms to establish and document
their risk management control systems,\2\ and 1,200 hours for the six
new firms to maintain their risk management control systems.\3\
Accordingly, the staff estimates the total annual burden associated
with Rule 15c3-4 for the 23 respondents (seventeen existing respondents
and six new respondents) will be approximately 8,600 hours per year.
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\1\ (200 hours x 17 firms) = 3,400.
\2\ ((2,000 hours/3 years) x 6 firms) = 4,000.
\3\ (200 hours x 6 firms) = 1,200.
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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
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
December 16, 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: Austin Gerig, Director/
Chief Data Officer, Securities and Exchange Commission, c/o Oluwaseun
Ajayi, 100 F Street NE, Washington, DC 20549, or send an email to:
<a href="/cdn-cgi/l/email-protection#3d6d6f7c62705c54515f52457d4e585e135a524b"><span class="__cf_email__" data-cfemail="3e6e6c7f61735f57525c51467e4d5b5d10595148">[email protected]</span></a>.
Dated: October 9, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-23764 Filed 10-11-24; 8:45 am]
BILLING CODE 8011-01-P
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