Notice2025-14317
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 18a-3
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
July 29, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 143 (Tuesday, July 29, 2025)</title>
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[Federal Register Volume 90, Number 143 (Tuesday, July 29, 2025)]
[Notices]
[Page 35744]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-14317]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0702]
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Extension: Rule 18a-3
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.), the Securities and Exchange
Commission (``Commission'') is submitting to the Office of Management
and Budget (``OMB'') this request for extension of the proposed
collection of information provided for in Rule 18a-3 (17 CFR 240.18a-
3), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.)
(``Exchange Act'').
Rule 18a-3 establishes minimum margin requirements for nonbank
security-based swap dealers (``SBSDs'') and nonbank major security-
based swap participants (``MSBSPs'') for non-cleared security-based
swaps. Under Rule 18a-3(e), nonbank SBSDs are required to monitor the
risk of each account that holds non-cleared security based swaps for a
counterparty and to establish, maintain, and document procedures and
guidelines for monitoring the risk of accounts as part of its risk
management control system required under Exchange Act Rule 15c3-4. In
addition, Rule 18a-3(d)(2) provides that a nonbank SBSD seeking
approval to use a model to calculate initial margin will be subject to
an application process consistent with Exchange Act Rule 15c3-1e and
paragraph (d) of Exchange Act Rule 18a-1, as applicable, governing the
use of internal models to compute net capital.\1\
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\1\ While Rule 18a-3 contains requirements that apply to both
nonbank SBSDs and MSBSPs, the particular requirements that
constitute a collection of information relate only to nonbank SBSDs.
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The total annual hour burden associated with Rule 18a-3 is
approximately 1,030 hours calculated as follows:
The Commission staff estimates that there are 13 nonbank SBSDs that
are subject to Rule 18a-3(e). The staff further estimates that each
nonbank SBSD would spend an average of approximately 60 hours per year
reviewing risks associated with its counterparties pursuant to the
procedures and guidelines implemented by each nonbank SBSD, for an
annual industry-wide ongoing burden of approximately 780 recordkeeping
hours.\2\
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\2\ 13 nonbank SBSDs x 60 hours = 780 hours.
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With respect to Rule 18a-3(d)(2), the Commission estimates that one
nonbank SBSD uses a model to calculate initial margin and that this
nonbank SBSD will spend approximately 250 hours per year reviewing,
updating, and back testing its initial margin model, resulting in a
total industry-wide ongoing annual hour burden of approximately 250
recordkeeping hours.\3\
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\3\ 1 nonbank SBSD x 250 hours = 250 hours.
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The total annual hour burden associated with Rule 18a-3 is thus
approximately 1,030 hours (780 hours + 250 hours).
The Commission estimates that there is no annual cost burden
associated with Rule 18a-3 as the previously estimated start-up costs
have already been incurred.
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.
Written comments are invited on: (a) whether this proposed
collection of information is necessary for the proper performance of
the functions of the Commission, including whether the information will
have practical utility; (b) the accuracy of the Commission's estimate
of the burden imposed by the proposed collection of information,
including the validity of the methodology and the assumptions used; (c)
ways to enhance the quality, utility, and clarity of the information to
be collected; and (d) ways to minimize the burden of the collection of
information on respondents, including through the use of automated,
electronic collection techniques or other forms of information
technology.
The public may view and comment on this information collection
request at: <a href="https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202505-3235-002">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202505-3235-002</a> or email comment to
<a href="/cdn-cgi/l/email-protection#0c414e542243414e2243455e4d225f494f5368697f6753636a6a656f697e4c63616e2269637c226b637a"><span class="__cf_email__" data-cfemail="efa2adb7c1a0a2adc1a0a6bdaec1bcaaacb08b8a9c84b0808989868c8a9daf80828dc18a809fc1888099">[email protected]</span></a> within 30 days of the day
after publication of this notice, by August 29, 2025.
Dated: July 25, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-14317 Filed 7-28-25; 8:45 am]
BILLING CODE 8011-01-P
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