Notice2025-18119

Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 194

Primary source

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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 45297-45298]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-18119]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0733]


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Extension: Rule 194

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'' or ``SEC'') is submitting to the Office of 
Management and Budget (``OMB'') this request for Extension of the 
proposed collection of information for Commission Rule of Practice 194, 
(17 CFR 240.194), under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.).
    Rule of Practice 194 provides a process for security-based swap 
dealers and major security-based swap participants (collectively, ``SBS 
Entity'') to make an application to the Commission for an order 
permitting an

[[Page 45298]]

associated person who is subject to a statutory disqualification to 
effect or be involved in effecting security-based swaps on behalf of 
the SBS Entity. Rule of Practice 194 specifies the process for 
obtaining relief from the statutory prohibition in Exchange Act Section 
15F(b)(6), including by setting forth the required showing, the form of 
application and the items to be addressed with respect to associated 
persons that are natural persons. An SBS Entity is not required to file 
an application under Rule of Practice 194 with respect to certain 
associated persons that are subject to a statutory disqualification, as 
provided for in paragraph (h) of Rule of Practice 194. To meet those 
requirements, however, the SBS Entity is required to file a notice with 
the Commission.
    55 SBS Entities in total are currently registered with the 
Commission.\1\ The Commission anticipates that, on an average annual 
basis, only a small fraction of the natural persons at an SBS Entity 
would be subject to a statutory disqualification. Accordingly, based on 
our experience working with Rule of Practice 194, the Commission 
estimates that, on an average annual basis, the Commission would 
receive up to one application in accordance with Rule of Practice 194 
with respect to associated persons that are natural persons, and up to 
three notices pursuant to proposed Rule of Practice 194(h) with respect 
to associated persons that are natural persons.\2\ The Commission 
estimates that the average time necessary for an SBS Entity to research 
the questions, and complete and file an application under Rule of 
Practice 194 with respect to associated persons that are natural 
persons is approximately 30 hours, for a total of approximately 30 
burden hours per year for all SBS Entities. The Commission estimates 
that up to three SBS Entities will provide notices pursuant to Rule of 
Practice 194(h) for one natural person each on an average annual basis 
taking approximately 6 hours per notice, for a total of approximately 
18 burden hours per year for all SBS Entities providing the notices for 
an estimated three natural persons. As such, the combined estimated 
annual hour burden for all SBS Entities to complete applications and 
notices pursuant to Rule of Practice 194 is approximately 48 hours per 
year (30 + 18).
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    \1\ See SEC, List of Security-Based Swap Dealers and Major 
Security-Based Swap Participants, available at <a href="https://www.sec.gov/files/tm-sbsd-msbsp-pax-list-2412.pdf">https://www.sec.gov/files/tm-sbsd-msbsp-pax-list-2412.pdf</a>.
    \2\ While we previously estimated that we might receive as many 
as five applications and five notices from SBS Entity respondents in 
a given year, our experience since making this estimate has led us 
to revise down this expectation. Since the first registration of an 
SBS Entity with the Commission on October 27, 2021, the Commission 
has only received three notices and one application under Rule of 
Practice 194. See SEC, Applications and Notices by Security-Based 
Swap Dealers or Major Security-Based Swap Participants for 
Statutorily Disqualified Associated Persons to Effect or Be Involved 
in Effecting Security-Based Swap Transactions (Rule of Practice 194) 
(``Rule 194 Approval Orders and Notices Database''), available at 
<a href="https://www.sec.gov/rule-practice-194-applications-and-notices">https://www.sec.gov/rule-practice-194-applications-and-notices</a>. 
Based on this and related discussions with registered SBS Entities, 
we do not expect the number of applications and notices to exceed 
these figures on an annual basis.
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    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=202507-3235-004">https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202507-3235-004</a> or email comment to 
<a href="/cdn-cgi/l/email-protection#fbb6b9a3d5b4b6b9d5b4b2a9bad5a8beb8a49f9e8890a4949d9d92989e89bb949699d59e948bd59c948d"><span class="__cf_email__" data-cfemail="d79a958ff9989a95f9989e8596f984929488b3b2a4bc88b8b1b1beb4b2a597b8bab5f9b2b8a7f9b0b8a1">[email&#160;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. 2025-18119 Filed 9-18-25; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on September 19, 2025.

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