Notice2026-18905
Order Granting Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities Exchange Act of 1934, From Inline XBRL Requirements for Portions of Form CA-1 and Form 1 and for Form X-17A-5 Part III, Form 17-H, and Security-Based Swap Entity's Annual Compliance Report
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 15, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 177 (Tuesday, September 15, 2026)</title>
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[Federal Register Volume 91, Number 177 (Tuesday, September 15, 2026)]
[Notices]
[Pages 58490-58492]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18905]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106339]
Order Granting Exemptive Relief, Pursuant to Section 36(a)(1) of
the Securities Exchange Act of 1934, From Inline XBRL Requirements for
Portions of Form CA-1 and Form 1 and for Form X-17A-5 Part III, Form
17-H, and Security-Based Swap Entity's Annual Compliance Report
September 11, 2026.
I. Introduction
On December 16, 2024, the Securities and Exchange Commission
(``Commission'') adopted rule
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amendments that require, among other things, that certain Commission
forms or submissions be filed or submitted electronically.\1\ The rule
amendments also require some of these forms and submissions to be filed
or submitted in structured data format. More specifically, the rule
amendments require the following forms or submissions to be filed or
submitted with the Commission in Inline eXtensible Business Reporting
Language (``Inline XBRL''):\2\
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\1\ See Electronic Submission of Certain Materials Under the
Securities Exchange Act of 1934; Amendments Regarding the FOCUS
Report, Exchange Act Release No. 101925 (Dec. 16, 2024), 90 FR 7250
(Jan. 21, 2025) (``Adopting Release'').
\2\ Inline XBRL is a structured data language. Data in documents
can be tagged with Inline XBRL tags, which offers the benefit of
making the document machine-readable since machines can ``read'' the
tags. This functionality, in turn, is intended to enable more
efficient retrieval, aggregation, and comparison against different
filers (or submitters) and time periods, as compared to an
unstructured document.
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<bullet> Schedule A, and Exhibits C, F, H, J, K, L, M, O, R, and S
to Form CA-1, the application for registration (or amendment thereto)
or for exemption from registration filed by clearing agencies; \3\
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\3\ See 17 CFR 232.405 introductory text, (a)(2), (a)(3)(i),
(a)(3)(ii), (a)(4), (b)(1), (b)(5), Note 1, as amended.
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<bullet> Exhibits D, E (in part), and I to Form 1, the application
for registration (or amendment thereto) or for exemption from
registration filed by national securities exchanges; \4\
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\4\ See 17 CFR 240.6a-1(e), as amended; Form 1 General
Instructions section A, as amended; 17 CFR 232.405 introductory
text, (a)(2), (a)(3)(i), (a)(3)(ii), (a)(4), (b)(1), (b)(5), Note 1,
as amended.
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<bullet> Form X-17A-5 Part III, annual reports filed by broker-
dealers (including over-the-counter derivatives dealers), as well as
security-based swap dealers and major security-based swap participants
(collectively, ``SBS Entities'') for which there is no prudential
regulator; \5\
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\5\ See 17 CFR 240.17a-5(d)(6)(i), (k)(2), as amended; 17 CFR
240.17a-12(b)(6), (k), (l)(1), (m)(1), as amended; 17 CFR 240.18a-
7(c)(6), as amended; 17 CFR 232.405 introductory text, (a)(2),
(a)(3)(i), (a)(3)(ii), (a)(4), (b)(1), (b)(5), Note 1, as amended.
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<bullet> Item 4 of Form 17-H, the risk assessment report filed by
certain larger broker-dealers; \6\ and
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\6\ See 17 CFR 240.17h-2T(a)(2), as amended; 17 CFR 232.405
introductory text, (a)(2), (a)(3)(i), (a)(3)(ii), (a)(4), (b)(1),
(b)(5), Note 1, as amended.
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<bullet> The annual compliance report of an SBS Entity, which must
be prepared and signed by the SBS Entity's chief compliance officer
(``CCO'') pursuant to Securities Exchange Act of 1934 (``Exchange
Act'') Rule 15fk-1(c) (``CCO report''); \7\
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\7\ See 17 CFR 240.15fk-1(c)(2)(ii)(A), as amended; 17 CFR
232.405 introductory text, (a)(2), (a)(3)(i), (a)(3)(ii), (a)(4),
(b)(1), (b)(5), Note 1, as amended.
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For the reasons discussed below, the Commission is granting
exemptive relief to registrants,\8\ pursuant to its authority under
section 36(a)(1) of the Exchange Act,\9\ from filing or submitting the
following forms or submissions in Inline XBRL: Form CA-1 (except
Exhibit H thereto),\10\ Form 1 (except Exhibit I thereto),\11\ Form X-
17A-5 Part III, Form 17-H, and the CCO report.
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\8\ This exemptive relief extends to clearing agencies with
respect to Form CA-1, self-regulatory organizations with respect to
Form 1, broker-dealers and SBS Entities with respect to Form X-17A-5
Part III, broker-dealers subject to Exchange Act rule 17h-2T with
respect to Form 17-H; and SBS Entities with respect to the CCO
report. This exemptive relief also extends to SBS Entities relying
on a Commission order granting substituted compliance from
submitting Form X-17A-5 Part III and the CCO report in Inline XBRL.
This order does not provide any exemption from the requirement to
file or submit these forms and reports electronically on EDGAR.
\9\ 15 U.S.C. 78mm(a)(1).
\10\ Exhibit H to Form CA-1 contains a balance sheet and
statement of income and expenses, and all notes or schedules thereto
of the registrant, as of the registrant's most recent fiscal year
for which such information is available, certified by an independent
accountant. This order does not exempt firms from filing Exhibit H
to Form CA-1 in Inline XBRL.
\11\ Exhibit I to Form 1 contains the applicant's audited
financial statements. This order does not exempt firms from filing
Exhibit I to Form 1 in Inline XBRL.
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II. Discussion
Section 36(a)(1) of the Exchange Act grants the Commission the
authority to ``conditionally or unconditionally exempt any person,
security, or transaction . . . from any provision or provisions of [the
Exchange Act] or of any rule or regulation thereunder, to the extent
that such exemption is necessary or appropriate in the public interest,
and is consistent with the protection of investors.'' \12\ As discussed
below, the Commission finds that the exemptive relief granted herein is
necessary or appropriate in the public interest and consistent with the
protection of investors.
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\12\ See 15 U.S.C. 78mm(a)(1).
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As described in the Adopting Release, Inline XBRL was designed to
help machines read financial statements by linking specific metadata to
data points.\13\ While useful to many parties, Inline XBRL primarily
helps financial institutions and regulators analyze data; it is less
useful for the specified forms--Form CA-1, Form 1, Form X-17A-5 Part
III, Form 17-H, and the CCO report. Form CA-1 is used to assess
applications for registration, or exemption from registration as a
clearing agency, and to assess amendments to clearing agency
registration.\14\ Form 1 is used to assess applications for, and
amendments to applications for, registration as a national securities
exchange or exemption from registration as a national securities
exchange.\15\ Form X-17A-5 Part III is used to assess the financial and
operational condition of broker-dealers.\16\ Form 17-H is used as a
risk assessment report for certain larger broker-dealers.\17\ The CCO
report is a report signed by the chief compliance officer of an SBS
Entity and submitted by such firm that, among other required content,
assesses the effectiveness of the registrant's internal policies and
procedures as set forth more fully in Rule 15Fk-1(c).\18\ What these
forms share in common is that they are specific to market
intermediaries and are primarily used by the Commission to assess
whether an entity registered as a market intermediary meets the
relevant standards--including legal, financial, and operational
standards--necessary to comply with the Exchange Act.
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\13\ See generally Adopting Release at 7303.
\14\ See Form CA-1 Application for Registration or For Exemption
from Registration as a Clearing Agency and for Amendment to
Registration Pursuant to the Securities Exchange Act of 1934 (the
``Act''); 17 CFR 249b.200.
\15\ See Form 1, Application for, and Amendments to Application
For, Registration as a National Securities Exchange or Exemption
from Registration Pursuant to Section 5 of the Exchange Act, 17 CFR
249.1.
\16\ See Annual Reports Form X-17A-5 Part III, 17 CFR 249.617.
\17\ See Form 17-H, Risk Assessment Report for Brokers and
Dealers, 17 CFR 240.17h-2T.
\18\ See 17 CFR 240.15Fk-1(c). The CCO report must contain
descriptions of, at a minimum, an assessment of the effectiveness of
the firm's SBS policies and procedures, material changes to the
firm's security-based swap policies and procedures, areas for
improvement and recommended potential changes to the compliance
program and resources, material non-compliance matters identified,
and the compliance resources dedicated to the firm's security-based
swap business. 17 CFR 240.15Fk-1(c)(2)(i).
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Many of these filings have individually tailored information, so
standardized tags can be relatively less useful and, in the case of
Form X-17A-5 Part III, duplicate existing processes. Moreover, since
the rule amendments were adopted, the Commission has received
information from industry participants stating that the cost of
complying with the Inline XBRL requirement is higher than the
Commission previously estimated.\19\
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Thus, continuing to impose Inline XBRL requirements in these cases
would result in potentially significant unnecessary costs, which firms
may ultimately pass on to investors through higher fees, without
meaningful gains in transparency or data accessibility to investors.
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\19\ See, e.g., Letter from Kyle L. Brandon, Managing Director,
Head of Derivative Policy, Securities Industry and Financial Markets
Association (Mar. 13, 2026), available at <a href="https://www.sec.gov/comments/s7-08-23/s70823-723567-2263574.pdf">https://www.sec.gov/comments/s7-08-23/s70823-723567-2263574.pdf</a>.
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Furthermore, reducing compliance costs for firms with respect to
Form X-17A-5 Part III, Form 17-H, and the CCO report, by exempting them
from the requirements to file in Inline XBRL, would not impact
investors, given that these forms are not primarily used by investors,
and several of them are generally non-public.\20\ Instead, a reduction
in compliance costs would enable affected firms to allocate resources
more efficiently, including to support or enhance their operations and
existing compliance obligations, thereby providing a benefit to
investors and the market. Accordingly, providing this exemption is
necessary or appropriate in the public interest and consistent with the
protection of investors.
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\20\ As a general matter, the entirety of Form 17-H and the CCO
report, and the vast majority of Form X-17A-5 Part III are non-
public. See 17 CFR 240.17h-2T(e); 17 CFR 240.17a-5(e)(3); Adopting
Release, 90 FR at 7293 and n. 347. See also 17 CFR 240.24b-2; 17 CFR
200.83 (identifying rules and processes with respect to requesting
confidential treatment of materials submitted to the Commission).
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III. Conclusion
For the reasons discussed herein, the Commission determines that
the exemptive relief granted herein satisfies the standard of section
36(a)(1) of the Exchange Act.\21\
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\21\ See 15 U.S.C. 78mm(a)(1).
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Accordingly, it is hereby ordered, pursuant to section 36(a)(1) of
the Exchange Act,\22\ that the Commission is granting exemptive relief
to registrants \23\ from filing or submitting Form CA-1 (except Exhibit
H thereto), Form 1 (except Exhibit I thereto), Form X-17A-5 Part III,
Form 17-H, and the CCO report in Inline XBRL pursuant to Exchange Act
rules 6a-1, 17a-5, 17a-12, 18a-7, 17h-2T, and 15fk-1.\24\
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\22\ See 15 U.S.C. 78mm(a)(1).
\23\ This exemptive relief extends to clearing agencies with
respect to Form CA-1, self-regulatory organizations with respect to
Form 1, broker-dealers and SBS Entities with respect to Form X-17A-5
Part III, broker-dealers subject to Exchange Act rule 17h-2T with
respect to Form 17-H; and SBS Entities with respect to the CCO
report.
\24\ See 17 CFR 240.6a-1; 17 CFR 240.17a-5; 17 CFR 240.17a-12;
17 CFR 240.18a-7; 17 CFR 240.17h-2T; 17 CFR 240.15fk-1.
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18905 Filed 9-14-26; 8:45 am]
BILLING CODE 8011-01-P
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