Agency Information Collection Activities; Proposed Collection; Comment Request; Extension: Rule 18a-5

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<title>Federal Register, Volume 91 Issue 210 (Monday, November 2, 2026)</title>
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[Federal Register Volume 91, Number 210 (Monday, November 2, 2026)]
[Notices]
[Pages 69017-69018]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-22346]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0745]


Agency Information Collection Activities; Proposed Collection; 
Comment Request; Extension: Rule 18a-5

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'') is soliciting comments on the existing 
collection of information provided for in Rule 18a-5, under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission 
plans to submit this existing collection of information to the Office 
of Management and Budget (``OMB'') for extension and approval.
    Rule 18a-5 enumerates the recordkeeping and reporting requirements 
for security-based swap dealers (``SBSDs'') and major security-based 
swap participants (``MSBSPs''). More specifically, Rule 18a-5 
establishes recordkeeping requirements applicable to stand-alone SBSDs, 
stand-alone MSBSPs, bank SBSDs, and bank MSBSPs. Rule 18a-5 was modeled 
on Rule 17a-3 under the Exchange Act, which applies to broker-dealers, 
but Rule 18a-5 does not include a parallel requirement for every 
requirement in Rule 17a-3 because some of the requirements in Rule 17a-
3 relate to activities that are not expected or permitted of SBSDs and 
MSBSPs. The collections of information under Rule 18a-5 include the 
following types of records that are required to be created: trade 
blotters, general ledger, ledgers for customers and non-customer 
accounts, stock record, memoranda of brokerage orders, memoranda of 
proprietary orders, confirmations, accountholder information, options 
positions, trial balances and computation of net capital, associated 
person's employment application, account equity and margin calculations 
under Rule 18a-3, possession or control requirements for security-based 
swap customers, customer reserve requirements for security-based swap 
customers, unverified transactions, political contributions, and 
compliance with business conduct requirements. The purpose of requiring 
stand-alone SBSDs, stand-alone MSBSPs, bank SBSDs, and bank MSBSPs to 
create the records specified in Rule 18a-5 is to enhance regulators' 
ability to protect investors. These records and the information 
contained therein are used by examiners and other representatives of 
the Commission to determine whether stand-alone SBSDs, stand-alone 
MSBSPs, bank SBSDs, and bank MSBSPs are in compliance with the 
Commission's anti-fraud and anti-manipulation rules, financial 
responsibility program, and other laws, rules, and regulations.
    Not all types of records enumerated in Rule 18a-5 are required to 
be made by each of the entities to which Rule 18a-5 applies. For 
example, Rule 18a-5 requires thirteen types of records to be made and 
kept current by stand-alone

[[Page 69018]]

SBSDs and stand-alone MSBSPs.\1\ Rule 18a-5 also requires three types 
of records to be made and kept current by stand-alone SBSDs.\2\ Rule 
18a-5 requires 10 types of records to be made and kept current by bank 
SBSDs and bank MSBSPs, all of which are limited to the firm's business 
as an SBSD or MSBSP.\3\ Further, Rule 18a-5 includes paragraphs (b)(9), 
(b)(10), and (b)(12) which requires bank SBSDs to make and keep current 
various records for security-based swaps.\4\
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    \1\ See Rule 18a-5 (paragraph (a)(1) (trade blotters); paragraph 
(a)(2) (general ledgers); paragraph (a)(3) (ledgers of customer and 
non-customer accounts); paragraph (a)(4) (stock record); paragraph 
(a)(5) (memoranda of proprietary orders); paragraph (a)(6) 
(confirmations); paragraph (a)(7) (accountholder information); 
paragraph (a)(8) (options positions); paragraph (a)(9) (trial 
balances and computation of net capital); paragraph (a)(10) 
(associated person's application); paragraph (a)(12) (Rule 18a-3 
calculations); paragraph (a)(15) (unverified transactions); 
paragraph (a)(17) (compliance with business conduct standards)).
    \2\ See Rule 18a-5 (paragraph (a)(13) (compliance with Rule 18a-
4 possession or control requirements); paragraph (a)(14) (Rule 18a-4 
reserve account computations); and paragraph (a)(16) (political 
contributions)).
    \3\ See Rule 18a-5 (paragraph (b)(1) (trade blotters); paragraph 
(b)(2) (general ledgers); paragraph (b)(3) (stock record); paragraph 
(b)(4) (memoranda of brokerage orders); paragraph (b)(5) (memoranda 
of proprietary orders); paragraph (b)(6) (confirmations); paragraph 
(b)(7) accountholder information); paragraph (b)(8) (associated 
person's application); paragraph (b)(11) (unverified transactions); 
and paragraph (b)(13) (compliance with business conduct 
requirements)).
    \4\ See Rule 18a-5 (paragraph (b)(9) (possession or control 
requirements under Rule 18a-4); paragraph (b)(10) (customer reserve 
requirements under Rule 18a-4); and paragraph (b)(12) (political 
contributions)).
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    As of September 24, 2026, there are 15 stand-alone SBSDs, zero 
stand-alone MSBSPs, 29 bank SBSDs, and zero bank MSBSPs registered with 
the Commission. The Commission estimates that each recordkeeping 
provision of Rule 18a-5 imposes on each firm that is subject to the 
provision an initial burden and an ongoing annual burden. The total 
initial industry hour burden attributable to Rule 18a-5 is estimated to 
be 12,340 hours in the first year and the total industry ongoing hour 
burden attributable to Rule 18a-5 is estimated to be 15,425 hours per 
year (including the first year). Over a three-year period, the total 
estimated industry burden is estimated to be 58,615 hours, or about 
19,538 hours per year when annualized. These burdens are recordkeeping 
burdens.
    In addition, the Commission estimates that Rule 18a-5 causes a 
stand-alone SBSD or stand-alone MSBSP to incur an initial dollar cost 
of approximately $1,000 to purchase recordkeeping system software and 
an ongoing dollar cost of $4,650 per year to provide adequate physical 
space and computer hardware and software for storage. As of September 
24, 2026, there are 15 respondents (15 stand-alone SBSDs and zero 
stand-alone MSBSPs), resulting in an estimated industry-wide initial 
burden of $15,000 and an industry-wide ongoing burden of $69,750 per 
year. Over a three-year period, the total estimated industry burden 
would be $224,250, or about $74,750 per year when annualized.
    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.
    Please direct your written comments on this 60-Day Collection 
Notice to Austin Gerig, Director/Chief Data Officer, Securities and 
Exchange Commission, c/o Tanya Ruttenberg via email to 
<a href="/cdn-cgi/l/email-protection#87d7e6f7e2f5f0e8f5ecd5e2e3f2e4f3eee8e9c6e4f3c7f4e2e4a9e0e8f1"><span class="__cf_email__" data-cfemail="396958495c4b4e564b526b5c5d4c5a4d505657785a4d794a5c5a175e564f">[email&#160;protected]</span></a> by January 4, 2027.

    Dated: October 29, 2026.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-22346 Filed 10-30-26; 8:45 am]
BILLING CODE 8011-01-P


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