Notice2024-30367
Submission for OMB Review; 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
December 20, 2024
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 89 Issue 245 (Friday, December 20, 2024)</title>
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[Federal Register Volume 89, Number 245 (Friday, December 20, 2024)]
[Notices]
[Pages 104252-104253]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-30367]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-441, OMB Control No. 3235-0497]
Submission for OMB Review; Comment Request; Extension: Rule 15c3-
4
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 (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'') 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, 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
[[Page 104253]]
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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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.
Public Comment Instructions: The 30-day public comment period for
this information collection request closes at the end of the day on
January 21, 2025. The public may view the full information request and
submit comments at <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202409-3235-023">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202409-3235-023</a> or email comments to
<a href="/cdn-cgi/l/email-protection#b5f8f7ed9bfaf8f79bfafce7f49be6f0f6ead1d0c6deeadad3d3dcd6d0c7f5dad8d79bd0dac59bd2dac3"><span class="__cf_email__" data-cfemail="226f607a0c6d6f600c6d6b70630c7167617d464751497d4d44444b414750624d4f400c474d520c454d54">[email protected]</span></a>.
Dated: December 16, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-30367 Filed 12-19-24; 8:45 am]
BILLING CODE 8011-01-P
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