64910 Federal Register / Vol. 83, No. 242 / Tuesday, December 18, 2018 / Notices 

1This notice does not cover the hour burden 

associated with ANC firms, because the hour 

burden for ANC firms is included in the Paperwork 

Reduction Act collection for Rule 15c3–1, which 

requires ANC firms to comply with specific 

provisions of Rule 15c3–4 in Appendix E to Rule 

15c3–1. See 17 CFR 240.15c3–1(a)(7)(iii), 17 CFR 

240.15c3–1e(a)(1)(ii), and 17 CFR 240.15c3– 

1e(a)(1)(viii)(C). 

2 (200 hours x 3 firms) = 600. 

3 ((2,000 hours/3 years) × 6 firms) = 4,000. 

4 (200 hours × 6 firms) = 600. 

5The $314 per hour salary figure for a compliance 

manager is from SIFMA’s Management & 

Professional Earnings in the Securities Industry 

2013, modified by Commission staff to account for 

an 1800-hour work-year and multiplied by 5.35 to 

account for bonuses, firm size, employee benefits 

and overhead. 

6 5,800 hours × $314 per hour = $1,821,200. 

1 15 U.S.C. 78s(b)(1). 

2 15 U.S.C. 78a. 

3 17 CFR 240.19b–4. 

SECURITIES AND EXCHANGE 

COMMISSION 

Submission for OMB Review; 

Comment Request 

Upon Written Request, Copies Available 

From: Securities and Exchange 

Commission, Office of FOIA Services, 

100 F Street NE, Washington, DC 

20549–2736 

Extension: 

Rule 15c3–4, SEC File No. 270–441, OMB 

Control No. 3235–0497 

Notice is hereby given that pursuant 

to the Paperwork Reduction Act of 1995 

(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 

Securities and Exchange Commission 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for approval of 

extension of the previously approved 

collection of information provided for in 

Rule 15c3–4 (17 CFR. 240.15c3–4) (the 

‘‘Rule’’) under the Securities Exchange 

Act of 1934 (15 U.S.C. 78a et seq.). 

Rule 15c3–4 requires certain brokerdealers that are registered with the 

Commission as OTC derivatives dealers, 

or who compute their net capital 

charges under Appendix E to Rule 

15c3–1 (17 CFR 240.15c3–1) (‘‘ANC 

firms’’), to establish, document, and 

maintain a system of internal risk 

management controls. The Rule sets 

forth the basic elements for an OTC 

derivatives dealer or an ANC firm to 

consider and include when establishing, 

documenting, and reviewing its internal 

risk management control system, which 

are designed to, among other things, 

ensure the integrity of an OTC 

derivatives dealer’s or an ANC firm’s 

risk measurement, monitoring, and 

management process, to clarify 

accountability at the appropriate 

organizational level, and to define the 

permitted scope of the dealer’s activities 

and level of risk. The Rule also requires 

that management of an OTC derivatives 

dealer or an ANC firm must periodically 

review, in accordance with written 

procedures, the firm’s business 

activities for consistency with its risk 

management guidelines. 

The staff estimates that the average 

amount of time a new OTC derivatives 

dealer will spend establishing and 

documenting its risk management 

control system is 2,000 hours and that, 

on average, a registered OTC derivatives 

dealer will spend approximately 200 

hours each year to maintain (e.g., 

reviewing and updating) its risk 

management control system.1 Currently, 

three firms are registered with the 

Commission as OTC derivatives dealers. 

The staff estimates that approximately 

six additional entities may become 

registered as OTC derivatives dealers 

within the next three years. Thus, the 

estimated annualized burden would be 

600 hours for the three OTC derivatives 

dealers currently registered with the 

Commission to maintain their risk 

management control systems,2 4,000 

hours for the six new OTC derivatives 

dealers to establish and document their 

risk management control systems,3 and 

1,200 hours for the six new OTC 

derivatives dealers to maintain their risk 

management control systems.4

Accordingly, the staff estimates the total 

annualized burden associated with Rule 

15c3–4 for the six OTC derivatives 

dealers will be approximately 5,800 

hours annually. 

The staff believes that the internal 

cost of complying with Rule 15c3–4 will 

be approximately $314 per hour.5 This 

per hour cost is based upon an annual 

average hourly salary for a compliance 

manager who would be responsible for 

ensuring compliance with the 

requirements of Rule 15c3–4. 

Accordingly, the total annualized 

internal cost of compliance for all 

affected OTC derivatives dealers is 

estimated to be $1,821,200.6

The records required to be made by 

OTC derivatives dealers pursuant to the 

Rule and the results of the periodic 

reviews conducted under paragraph (d) 

of Rule 15c3–4 must be preserved under 

Rule 17a–4 of the Exchange Act (17 CFR 

240.17a–4) for a period of not less than 

three years, the first two years in an 

easily accessible place. The Commission 

will not generally publish or make 

available to any person notice or reports 

received pursuant to the Rule. The 

statutory basis for the Commission’s 

refusal to disclose such information to 

the public is the exemption contained in 

section (b)(4) of the Freedom of 

Information Act (5 U.S.C. 552), which 

essentially provides that the 

requirement of public dissemination 

does not apply to commercial or 

financial information which is 

privileged or confidential. 

An agency may not conduct or 

sponsor, and a person is not required to 

respond to, a collection of information 

under the PRA unless it displays a 

currently valid OMB control number. 

The public may view background 

documentation for this information 

collection at the following website: 

www.reginfo.gov. Comments should be 

directed to: (i) Desk Officer for the 

Securities and Exchange Commission, 

Office of Information and Regulatory 

Affairs, Office of Management and 

Budget, Room 10102, New Executive 

Office Building, Washington, DC 20503, 

or by sending an email to: (i) 

Lindsay.M.Abate@omb.eop.gov; and (ii) 

Charles Riddle, Acting Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Candace 

Kenner, 100 F Street NE Washington, 

DC 20549, or by sending an email to: 

PRA_Mailbox@SEC.gov. Comments 

must be submitted to OMB within 30 

days of this notice. 

Dated: December 12, 2018. 

Eduardo A. Aleman, 

Deputy Secretary. 

[FR Doc. 2018–27270 Filed 12–17–18; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–84804; File No. SR–NYSE– 

2018–58] 

Self-Regulatory Organizations; New 

York Stock Exchange LLC; Notice of 

Filing of Proposed Rule Change To 

Amend Rule 123C To Extend the CutOff Times for Order Entry and 

Cancellation for Participation in the 

Closing Auction and When the 

Exchange Will Begin Disseminating 

Order Imbalance Information for the 

Closing Auction 

December 12, 2018. 

Pursuant to Section 19(b)(1) 1 of the 

Securities Exchange Act of 1934 

(‘‘Act’’) 2 and Rule 19b–4 thereunder,3

notice is hereby given that, on 

November 30, 2018, New York Stock 

Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’) 

filed with the Securities and Exchange 

Commission (‘‘Commission’’) the 

proposed rule change as described in 

Items I, II, and III below, which Items 

have been prepared by the selfregulatory organization. The 


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