Notice2025-18117
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 18a-1
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 19, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 180 (Friday, September 19, 2025)</title>
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[Federal Register Volume 90, Number 180 (Friday, September 19, 2025)]
[Notices]
[Pages 45273-45274]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18117]
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SECURITIES AND EXCHANGE COMMISSION
[OMB Control No. 3235-0701]
Agency Information Collection Activities; Submission for OMB
Review; Comment Request; Extension: Rule 18a-1
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 (SEC or ``Commission'') is submitting to the Office of
Management and Budget (``OMB'') this request for the extension of the
proposed collection of information in Rule 18a-1.
Rule 18a-1, 17 CFR 240.18a-1, establishes net capital requirements
for nonbank security-based swap dealers that are not also broker-
dealers registered with the Commission (``stand-alone SBSDs''). First,
under paragraphs (a)(2) and (d) of Rule 18a-1, a stand-alone SBSD may
apply to the Commission to be authorized to use internal value-at-risk
(``VaR) models to compute net capital, and a stand-alone SBSD
authorized to use internal models must review and update the models it
uses to compute market and credit risk, as well as back-test the
models. Second, under paragraph (f) of Rule 18a-1, a stand-alone SBSD
is required to comply with certain requirements of Exchange Act Rule
15c3-4 (17 CFR 240.15c3-4). Rule 15c3-4 requires OTC derivatives
dealers and firms subject to its provisions to establish, document, and
maintain a system of internal risk management controls to assist the
firm in managing the risks associated with business activities,
including market, credit, leverage, liquidity, legal, and operational
risks. Third, for purposes of calculating ``haircuts'' on credit
default swaps, paragraph (c)(1)(vi)(B)(1)(iii) of Rule 18a-1 requires
stand-alone SBSDs that are not using internal models to use an industry
sector classification system that is documented and reasonable in terms
of grouping types of companies with similar business activities and
risk characteristics. Fourth, under paragraph (h) of Rule 18a-1, stand-
alone SBSDs are required to provide the Commission with certain written
notices with respect to equity withdrawals. Fifth, under paragraph
(c)(5) of Appendix D to Rule 18a-1 (17 CFR 240.18a-1d), stand-alone
SBSDs are required to file with the Commission two copies of any
proposed subordinated loan agreement (including nonconforming
subordinated loan agreements) at least 30 days prior to the proposed
execution date of the agreement. Finally, under paragraph (c)(1)(ix)(C)
of Rule 18a-1, a nonbank SBSD may treat collateral held by a third-
party custodian to meet an initial margin requirement of a security-
based swap or swap customer as being held by the nonbank SBSD for
purposes of the capital in lieu of margin charge provisions of the rule
if certain conditions are met. In particular, the SBSD must execute an
account control agreement and must maintain written
[[Page 45274]]
documentation of its analysis that in the event of a legal challenge
the account control agreement would be held to be legal, valid,
binding, and enforceable under the applicable law.
The collection of information is mandatory and is designed to
ensure that stand-alone SBSDs maintain sufficient liquidity at all
times to meet all unsubordinated obligations of their customers and
counterparties and, should a nonbank SBSD fail, that there are
sufficient resources for an orderly liquidation. These information
collections facilitate the monitoring of the financial condition of
nonbank SBSDs by the Commission. The information collected by the
Commission under Rule 18a-1, as adopted, is kept confidential to the
extent permitted by the Freedom of Information Act (5 U.S.C. 552 et
seq.).
The annual aggregate initial burden for all respondents is
estimated to be 4,310 hours. The aggregate initial cost burden for all
respondents is estimated to be $2,772,334. The aggregate annual burden
for all respondents is estimated to be 28,933 hours. The aggregate
annual cost burden for all respondents is estimated to be $3,732,600.
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 SEC, including whether the information will have
practical utility; (b) the accuracy of the SEC'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=202505-3235-018">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202505-3235-018</a> or email comment to
<a href="/cdn-cgi/l/email-protection#99d4dbc1b7d6d4dbb7d6d0cbd8b7cadcdac6fdfceaf2c6f6fffff0fafcebd9f6f4fbb7fcf6e9b7fef6ef"><span class="__cf_email__" data-cfemail="6a27283244252728442523382b44392f29350e0f190135050c0c03090f182a050708440f051a440d051c">[email protected]</span></a> within 30 days of the day
after publication of this notice, by October 20, 2025.
Dated: September 16, 2025.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-18117 Filed 9-18-25; 8:45 am]
BILLING CODE 8011-01-P
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