[Federal Register Volume 89, Number 199 (Tuesday, October 15, 2024)]
[Notices]
[Pages 83059-83060]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-23764]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-441, OMB Control No. 3235-0497]


Proposed Collection; Comment Request; Extension: Rule 15c3-4

Upon Written Request, Copies Available From: Securities and Exchange

[[Page 83060]]

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.) (``PRA''), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information provided for in Rule 15c3-4 (17 CFR 240.15c3-4) 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 15c3-4 requires certain broker-dealers 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. In addition, security-based swap 
dealers (``SBSDs'') must comply with Rule 15c3-4 as if they were OTC 
derivatives dealers. The Rule sets forth the basic elements for an OTC 
derivatives dealer, an ANC firm, or an SBSD to consider and include 
when establishing, documenting, and reviewing its internal risk 
management control system, which is designed to, among other things, 
ensure the integrity of an OTC derivatives dealer's, an ANC firm's, or 
an SBDS's risk measurement, monitoring, and management process, to 
clarify accountability at the appropriate organizational level, and to 
define the permitted scope of the firm's activities and level of risk. 
The Rule also requires that management of an OTC derivatives dealer, 
ANC firm, or SBSD 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 firm 
subject to Rule 15c3-4 will spend establishing and documenting its risk 
management control system is approximately 2,000 hours (666.666667 
hours per year when annualized over three years) and that, on average, 
an existing firm subject to Rule 15c3-4 will spend approximately 200 
hours each year to maintain (e.g., reviewing and updating) its risk 
management control system. Currently, seventeen firms are required to 
comply with Rule 15c3-4. The staff estimates that approximately six new 
additional firms may become subject to the requirements of Rule 15c3-4 
within the next three years. Thus, the estimated annual burden would be 
3,400 hours for the seventeen existing firms currently required to 
comply with Rule 15c3-4 to maintain their risk management control 
systems,\1\ 4,000 hours for the six new firms to establish and document 
their risk management control systems,\2\ and 1,200 hours for the six 
new firms to maintain their risk management control systems.\3\ 
Accordingly, the staff estimates the total annual burden associated 
with Rule 15c3-4 for the 23 respondents (seventeen existing respondents 
and six new respondents) will be approximately 8,600 hours per year.
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    \1\ (200 hours x 17 firms) = 3,400.
    \2\ ((2,000 hours/3 years) x 6 firms) = 4,000.
    \3\ (200 hours x 6 firms) = 1,200.
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    Written comments are invited on: (a) whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information 
collected; and (d) ways to minimize the burden of the collection of 
information on respondents, including through the use of automated 
collection techniques or other forms of information technology. 
Consideration will be given to comments and suggestions submitted by 
December 16, 2024.
    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.
    Please direct your written comments to: Austin Gerig, Director/
Chief Data Officer, Securities and Exchange Commission, c/o Oluwaseun 
Ajayi, 100 F Street NE, Washington, DC 20549, or send an email to: 
<a href="/cdn-cgi/l/email-protection#3d6d6f7c62705c54515f52457d4e585e135a524b"><span class="__cf_email__" data-cfemail="3e6e6c7f61735f57525c51467e4d5b5d10595148">[email protected]</span></a>.

    Dated: October 9, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-23764 Filed 10-11-24; 8:45 am]
BILLING CODE 8011-01-P


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