84660 Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices 

25 17 CFR 200.30–3(a)(12). 

1See Securities Exchange Act Release No. 34– 

90610 (December 9, 2020), 86 FR 18596 (April 9, 

2021) (File No. S7–03–20) (‘‘Infrastructure Adopting 

Release’’). 

2Some of these respondents were estimated to 

incur no, or only part of, the estimated initial 

burdens because they were already subject to 

Regulation SCI (i.e., as plan processors, SROs or 

affiliates of SROs). 

Commission, and all written 

communications relating to the 

proposed rule change between the 

Commission and any person, other than 

those that may be withheld from the 

public in accordance with the 

provisions of 5 U.S.C. 552, will be 

available for website viewing and 

printing in the Commission’s Public 

Reference Room, 100 F Street NE, 

Washington, DC 20549, on official 

business days between the hours of 10 

a.m. and 3 p.m. Copies of the filing also 

will be available for inspection and 

copying at the principal office of the 

Exchange. Do not include personal 

identifiable information in submissions; 

you should submit only information 

that you wish to make available 

publicly. We may redact in part or 

withhold entirely from publication 

submitted material that is obscene or 

subject to copyright protection. All 

submissions should refer to file number 

SR–CboeEDGX–2024–063 and should be 

submitted on or before November 13, 

2024. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.25

Sherry R. Haywood, 

Assistant Secretary. 

[FR Doc. 2024–24471 Filed 10–22–24; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–653, OMB Control No. 

3235–0703] 

Proposed Collection; Comment 

Request; Extension: Regulation SCI, 

Form SCI 

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 collection of information 

provided for in Regulation Systems 

Compliance and Integrity (‘‘Regulation 

SCI’’) (17 CFR 242.1000–1007) and 

Form SCI (17 CFR 249.1900) under the 

Securities Exchange Act of 1934 

(‘‘Exchange Act’’) (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. 

Regulation SCI requires certain key 

market participants to, among other 

things: (1) have comprehensive policies 

and procedures in place to help ensure 

the robustness and resiliency of their 

technological systems, and also that 

their technological systems operate in 

compliance with the federal securities 

laws and with their own rules; and (2) 

provide certain notices and reports to 

the Commission to improve 

Commission oversight of securities 

market infrastructure. 

Regulation SCI advances the goals of 

the national market system by 

enhancing the capacity, integrity, 

resiliency, availability, and security of 

the automated systems of entities 

important to the functioning of the U.S. 

securities markets, as well as reinforcing 

the requirement that such systems 

operate in compliance with the 

Exchange Act and rules and regulations 

thereunder, thus strengthening the 

infrastructure of the U.S. securities 

markets and improving its resilience 

when technological issues arise. In this 

respect, Regulation SCI establishes an 

updated and formalized regulatory 

framework, thereby helping to ensure 

more effective Commission oversight of 

such systems. 

Respondents consist of national 

securities exchanges and associations, 

registered clearing agencies, exempt 

clearing agencies, plan processors, and 

alternative trading systems. There are 

currently 48 respondents, and the 

Commission staff estimates that, on 

average, 2 new respondents may become 

SCI entities each year, 1 of which would 

be a self-regulatory organization 

(‘‘SRO’’). Accordingly, Commission staff 

estimates that over the next three years 

there will be an average of 50 

respondents per year. 

In addition, in December 2020, the 

Commission adopted amendments to 

Regulation SCI in connection with 

updates to the national market system 

for the collection, consolidation, and 

dissemination of information with 

respect to quotations for and 

transactions in national market system 

(‘‘NMS’’) stocks (‘‘Infrastructure 

Amendments’’). Specifically, the 

Commission adopted a definition of 

‘‘SCI competing consolidator’’ that will 

subject competing consolidators to 

Regulation SCI, after a transition period, 

if they are above a specified 

consolidated market data gross revenue 

threshold.1 The Infrastructure 

Amendments increased the number of 

respondents to the collections of 

information in Regulation SCI, and the 

Commission estimates that seven 

competing consolidators will meet this 

definition and be subject to the 

requirements of Regulation SCI.2

Rule 1001(a) requires each SCI entity 

to establish, maintain, and enforce 

written policies and procedures 

reasonably designed to ensure that its 

SCI systems and, for purposes of 

security standards, indirect SCI systems, 

have levels of capacity, integrity, 

resiliency, availability, and security, 

adequate to maintain the SCI entity’s 

operational capability and promote the 

maintenance of fair and orderly markets. 

The Commission staff estimates that the 

total annual initial recordkeeping 

burden for 7 new respondents will be 

4,511 hours, and the annual ongoing 

recordkeeping burden for all 55 

respondents will be, on average, 12,760 

hours. The Commission staff estimates 

that the 7 new respondents would incur, 

on average, an annual initial internal 

cost of compliance of $1,696,578, as 

well as outside legal or consulting costs 

of $305,500. In addition, all respondents 

will incur, on average, an estimated 

ongoing annual internal cost of 

compliance of $4,801,060. 

Rule 1001(b) requires each SCI entity 

to establish, maintain, and enforce 

written policies and procedures 

reasonably designed to ensure that its 

SCI systems operate in a manner that 

complies with the Exchange Act and the 

rules and regulations thereunder and 

the entity’s rules and governing 

documents, as applicable. The 

Commission staff estimates that the total 

annual initial recordkeeping burden for 

7 new respondents will be 1,755 hours, 

and the annual ongoing recordkeeping 

burden for all respondents will be, on 

average, 8,105 hours. The Commission 

staff estimates that the 7 new 

respondents would incur an initial 

internal cost of compliance of $628,160, 

as well as outside legal or consulting 

costs of $175,500. In addition, all 

respondents will incur, on average, an 

estimated ongoing annual internal cost 

of compliance of $2,881,660. 

Rule 1001(c) requires each SCI entity 

to establish, maintain, and enforce 

reasonably designed written policies 

and procedures that include the criteria 

for identifying responsible SCI 

personnel, the designation and 

documentation of responsible SCI 

personnel, and escalation procedures to 

quickly inform responsible SCI 


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Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices 84661 

personnel of potential SCI events. The 

Commission staff estimates that the total 

annual initial recordkeeping burden for 

7 new respondents will be 741 hours, 

and the annual ongoing recordkeeping 

burden for all respondents will be, on 

average, 2,145. The Commission staff 

estimates that the 7 new respondents 

would incur an initial internal cost of 

compliance of $309,868, and all 

respondents will incur, on average, an 

estimated ongoing annual internal cost 

of compliance of $958,485. 

Rule 1004 requires each SCI entity to 

establish standards for the designation 

of certain members or participants for 

BC/DR plan testing, to designate 

members or participants in accordance 

with these standards, to require 

participation by designated members or 

participants in such testing at least 

annually, and to coordinate such testing 

on an industry- or sector-wide basis 

with other SCI entities. The Commission 

staff estimates that the total annual 

initial recordkeeping burden for 9 new 

respondents will be 2,700 hours, and 

the annual ongoing recordkeeping 

burden for all respondents that are not 

plan processors will be, on average, 

7,425 hours. The Commission staff 

estimates that the 7 new respondents 

would incur an initial internal cost of 

compliance of $902,865. In addition, all 

respondents that are not plan processors 

will incur, on average, an estimated 

ongoing annual internal cost of 

compliance of $2,217,600. In addition, 

the Commission staff estimates that the 

2 plan processor respondents will incur 

an estimated ongoing annual cost of 

$108,000 for outside legal services 

($54,000 per plan processor respondent 

× 2 respondents). 

Rule 1002(b)(1) requires each SCI 

entity, upon any responsible SCI 

personnel having a reasonable basis to 

conclude that an SCI event has 

occurred, to notify the Commission 

immediately. The Commission staff 

estimates that the total annual ongoing 

burden for all 55 respondents will be, 

on average, 440 hours. The Commission 

staff estimates that respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$151,882.50. 

Rule 1002(b)(2) requires each SCI 

entity, within 24 hours of any 

responsible SCI personnel having a 

reasonable basis to conclude that the 

SCI event has occurred, to submit a 

written notification to the Commission 

pertaining to the SCI event on a good 

faith, best efforts basis. These 

notifications are required to be 

submitted on Form SCI. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 6,600 

hours. The Commission staff estimates 

that respondents will incur, on average, 

an estimated ongoing annual internal 

cost of compliance of $2,427,325. 

Rule 1002(b)(3) requires each SCI 

entity to provide updates to the 

Commission pertaining to an SCI event 

on a regular basis, or at such frequency 

as reasonably requested by a 

representative of the Commission, until 

the SCI event is resolved and the SCI 

entity’s investigation of the SCI event is 

closed. The Commission staff estimates 

that the total annual ongoing burden for 

all 55 respondents will be, on average, 

578 hours. The Commission staff 

estimates that all respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$202,235. 

Rule 1002(b)(4) requires each SCI 

entity to submit written interim reports, 

as necessary, and a written final report 

regarding an SCI event to the 

Commission. These reports are required 

to be submitted on Form SCI. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 9,625 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$3,795,800. 

Rule 1002(b)(5) requires each SCI 

entity to submit to the Commission 

quarterly reports containing a summary 

description of any systems disruption or 

systems intrusion that has had, or the 

SCI entity reasonably estimates would 

have, no or a de minimis impact on the 

SCI entity’s operations or on market 

participants. These reports are required 

to be submitted on Form SCI. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 8,800 

hours. The Commission staff estimates 

that respondents will incur, on average, 

an estimated ongoing annual internal 

cost of compliance of $3,329,040. 

In addition, the Commission staff 

estimates that all 55 respondents will 

incur, on average, annual costs of 

$319,000 for outside legal advice in 

preparation of certain notifications 

required by Rule 1002(b). 

Rule 1002(c)(1)(i) requires each SCI 

entity, promptly after any responsible 

SCI personnel has a reasonable basis to 

conclude that an SCI event (other than 

a systems intrusion) has occurred, to 

disseminate certain information to its 

members or participants. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 1,155 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of $506,815. 

Rule 1002(c)(1)(ii) requires each SCI 

entity, when known, to promptly 

disseminate additional information 

about an SCI event (other than a systems 

intrusion) to its members or 

participants. Rule 1002(c)(1)(iii) 

requires each SCI entity to provide to its 

members or participants regular updates 

of any information required to be 

disseminated under Rules 1002(c)(1)(i) 

and (ii) until the SCI event is resolved. 

The Commission staff estimates that the 

total annual ongoing burden for all 55 

respondents will be, on average, 6,435 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$2,841,795. 

Rule 1002(c)(2) requires each SCI 

entity to disseminate certain 

information regarding a systems 

intrusion to its members or participants, 

and provides an exception when the SCI 

entity determines that dissemination of 

such information would likely 

compromise the security of its SCI 

systems or indirect SCI systems, or an 

investigation of the systems intrusion, 

and documents the reasons for such 

determination. The Commission staff 

estimates that the total annual ongoing 

burden for all 55 respondents will be, 

on average, 550 hours. The Commission 

staff estimates that all respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$242,330. 

In addition, the Commission staff 

estimates that all 55 respondents will 

incur, on average, annual costs of 

$182,600 for outside legal advice in 

preparation of certain notifications 

required by Rule 1002(c). 

Rule 1003(a)(1) requires each SCI 

entity to submit to the Commission 

quarterly reports describing completed, 

ongoing, and planned material changes 

to its SCI systems and security of 

indirect SCI systems during the prior, 

current, and subsequent calendar 

quarters. These reports are required to 

be submitted on Form SCI. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 27,500 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$9,204,800. 

Rule 1003(a)(2) requires each SCI 

entity to promptly submit a 

supplemental report notifying the 

Commission of a material error in or 

material omission from a report 


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84662 Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices 

previously submitted under Rule 

1003(a)(1). These reports are required to 

be submitted on Form SCI. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 825 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of $293,040. 

Rule 1003(b)(1) requires each SCI 

entity to conduct an SCI review of its 

compliance with Regulation SCI not less 

than once each calendar year, with an 

exception for penetration test reviews, 

which are required to be conducted not 

less than once every three years. Rule 

1003(b)(1) also provides an exception 

for assessments of SCI systems directly 

supporting market regulation or market 

surveillance, which are required to be 

conducted at a frequency based on the 

risk assessment conducted as part of the 

SCI review, but in no case less than 

once every three years. Rule 1003(b)(2) 

requires each SCI entity to submit a 

report of the SCI review to senior 

management no more than 30 calendar 

days after completion of the review. The 

Commission staff estimates that the total 

annual ongoing burden for all 55 

respondents will be, on average, 37,950 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$13,623,225. 

Rule 1003(b)(3) requires each SCI 

entity to submit the report of the SCI 

review to the Commission and to its 

board of directors or the equivalent of 

such board, together with any response 

by senior management, within 60 

calendar days after its submission to 

senior management. These reports are 

required to be submitted on Form SCI. 

The Commission staff estimates that the 

total annual ongoing burden for all 55 

respondents will be, on average, 55 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of $25,410. 

In addition, the Commission staff 

estimates that all respondents will 

incur, on average, annual costs of 

$2,750,000 for outside legal advice in 

preparation of certain notifications 

required by Rule 1003(b). 

Rule 1006 requires each SCI entity, 

with a few exceptions, to file any 

notification, review, description, 

analysis, or report to the Commission 

required under Regulation SCI 

electronically on Form SCI through the 

EFFS. An SCI entity will submit to the 

Commission an EAUF to register each 

individual at the SCI entity who will 

access the EFFS system on behalf of the 

SCI entity. The Commission staff 

estimates that the total annual initial 

burden for 7 new respondents will be 2 

hours, and the annual ongoing burden 

for all respondents will be, on average, 

8 hours. The Commission staff estimates 

that the 7 new respondents would incur 

an initial internal cost of compliance of 

$903. In addition, all 55 respondents 

will incur, on average, an estimated 

ongoing annual internal cost of 

compliance of $3,795, as well as outside 

costs to obtain a digital ID of $2,750. 

Rule 1002(a) requires each SCI entity, 

upon any responsible SCI personnel 

having a reasonable basis to conclude 

that an SCI event has occurred, to begin 

to take appropriate corrective action. 

The Commission staff estimates that the 

total annual initial recordkeeping 

burden for 7 new respondents will be 

741 hours, and the annual ongoing 

recordkeeping burden for all 55 

respondents will be, on average, 2,145 

hours. The Commission staff estimates 

that the 7 new respondents would incur 

an initial internal cost of compliance of 

$309,868. In addition, all 55 

respondents will incur, on average, an 

estimated ongoing annual internal cost 

of compliance of $949,190. 

Rule 1003(a)(1) requires each SCI 

entity to establish reasonable written 

criteria for identifying a change to its 

SCI systems and the security of indirect 

SCI systems as material. The 

Commission staff estimates that the total 

annual initial recordkeeping burden for 

7 new respondents will be 741 hours, 

and the annual ongoing recordkeeping 

burden for all 55 respondents will be, 

on average, 1,485 hours. The 

Commission staff estimates that the 7 

new respondents would incur an initial 

internal cost of compliance of $309,868. 

In addition, all 55 respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$711,095. 

Regulation SCI also requires SCI 

entities to identify certain types of 

events and systems. The Commission 

staff estimates that the total annual 

initial recordkeeping burden for 7 new 

respondents will be 1,287 hours, and 

the annual ongoing recordkeeping 

burden for all 55 respondents will be, 

on average, 2,145 hours. The 

Commission staff estimates that the 7 

new respondents would incur an initial 

internal cost of compliance of $507,936. 

In addition, all 55 respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$949,190. 

Rules 1005 and 1007 establish 

recordkeeping requirements for SCI 

entities other than SROs. The 

Commission staff estimates that for 6 

new respondents that are not SROs the 

average annual initial burden would be 

935 hours, and the annual ongoing 

burden for all 19 respondents will be, 

on average, 475 hours. The Commission 

staff estimates that 6 new respondents 

would incur an estimated internal 

initial internal cost of compliance of 

$72,930, as well as a one-time cost of 

$5,400 to modify existing recordkeeping 

systems. In addition, all 19 respondents 

will incur, on average, an estimated 

ongoing internal cost of compliance of 

$37,050. 

The Commission estimates that the 

increase in the number of SCI entities 

raises the total industry annual burden 

hours to 150,619 hours and costs to 

$3,848,749 respectively. 

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 to be 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 23, 2024. 

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. 

Please direct your written comments 

to: Austin Gerig, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o Tanya 

Ruttenberg, 100 F Street NE, 

Washington, DC 20549, or send an email 

to: PRA_Mailbox@sec.gov. 

Dated: October 18, 2024. 

J. Matthew DeLesDernier, 

Deputy Secretary. 

[FR Doc. 2024–24577 Filed 10–22–24; 8:45 am] 

BILLING CODE 8011–01–P 

SMALL BUSINESS ADMINISTRATION 

[Disaster Declaration #20780 and #20781; 

ALASKA Disaster Number AK–20005] 

Presidential Declaration of a Major 

Disaster for Public Assistance Only for 

the State of Alaska 

AGENCY: Small Business Administration. 

ACTION: Notice. 


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