3132 Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices 

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). 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a) 

notices is 80 hours (for a total annual 

burden for all respondents in the 

amount of 17,600 hours). With respect 

to submissions for Rule 19h–1(a)(4) 

notifications, and based upon past 

submissions, the staff estimates that 

respondents will make a total of 9 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(a)(4) 

notifications is 80 hours (for a total 

annual burden for all respondents in the 

amount of 14,400 hours). With respect 

to submissions for Rule 19h–1(b), and 

based upon past submissions, the staff 

estimates that respondents will make a 

total of 28 submissions per year. The 

staff estimates that the average number 

of hours necessary to complete a 

submission pursuant to Rule 19h–1(b) is 

13 hours (for a total annual burden for 

all respondents in the amount of 7,280 

hours). With respect to submissions for 

Rule 19h–1(d), and based upon past 

submissions, the staff estimates that 

respondents will make a total of 5 

submissions per year. The staff 

estimates that the average number of 

hours necessary to complete a 

submission pursuant to Rule 19h–1(d) is 

80 hours (for a total annual burden for 

all respondents in the amount of 8,000 

hours). The aggregate annual burden for 

all respondents is thus approximately 

47,280 hours (17,600 +14,400 + 7,280 + 

8,000). 

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 in 

writing within 60 days of this 

publication. 

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: David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John 

Pezzullo, 100 F Street NE, Washington, 

DC 20549, or send an email to: PRA_

Mailbox@sec.gov. 

Dated: January 14, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01059 Filed 1–19–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

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

3235–0703] 

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: 

Regulation SCI, Form SCI 

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’’) 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 

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.). 

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 47 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 49 

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 54 

respondents will be, on average, 12,528 

hours. The Commission staff estimates 


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Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices 3133 

that the 7 new respondents would incur, 

on average, an annual initial internal 

cost of compliance of $1,513,382, 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 $4,205,412. 

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, 8,010 hours. The Commission 

staff estimates that the 7 new 

respondents would incur an initial 

internal cost of compliance of $660,270, 

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 $2,539,890. 

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 

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, 2,106. The Commission staff 

estimates that the 7 new respondents 

would incur an initial internal cost of 

compliance of $276,432, and all 

respondents will incur, on average, an 

estimated ongoing annual internal cost 

of compliance of $839,592. 

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, 

7,290 hours. The Commission staff 

estimates that the 7 new respondents 

would incur an initial internal cost of 

compliance of $804,735. In addition, all 

respondents that are not plan processors 

will incur, on average, an estimated 

ongoing annual internal cost of 

compliance of $1,939,950. 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 54 respondents will be, 

on average, 432 hours. The Commission 

staff estimates that respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$133,030. 

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 54 

respondents will be, on average, 6,480 

hours. The Commission staff estimates 

that respondents will incur, on average, 

an estimated ongoing annual internal 

cost of compliance of $2,134,890. 

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 54 respondents will be, on average, 

567 hours. The Commission staff 

estimates that all respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$177,106.50. 

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 54 

respondents will be, on average, 9,450 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$3,297,510. 

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 54 

respondents will be, on average, 8,640 

hours. The Commission staff estimates 

that respondents will incur, on average, 

an estimated ongoing annual internal 

cost of compliance of $2,919,348. 

In addition, the Commission staff 

estimates that all 54 respondents will 

incur, on average, annual costs of 

$313,200 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 54 

respondents will be, on average, 1,134 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$741,557.50. 

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 54 

respondents will be, on average, 6,318 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$2,496,096. 

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 


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3134 Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices 

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 54 respondents will be, 

on average, 540 hours. The Commission 

staff estimates that all respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$212,827.25. 

In addition, the Commission staff 

estimates that all 54 respondents will 

incur, on average, annual costs of 

$179,280 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 54 

respondents will be, on average, 27,000 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$8,063,820. 

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 

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 54 

respondents will be, on average, 810 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of $256,716. 

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 54 

respondents will be, on average, 37,260 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of 

$11,934,810. 

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 54 

respondents will be, on average, 54 

hours. The Commission staff estimates 

that all respondents will incur, on 

average, an estimated ongoing annual 

internal cost of compliance of $22,248. 

In addition, the Commission staff 

estimates that all respondents will 

incur, on average, annual costs of 

$2,700,000 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 

1.95 hours, and the annual ongoing 

burden for all respondents will be, on 

average, 8.1 hours. The Commission 

staff estimates that the 7 new 

respondents would incur an initial 

internal cost of compliance of $806. In 

addition, all 54 respondents will incur, 

on average, an estimated ongoing annual 

internal cost of compliance of $3,348, as 

well as outside costs to obtain a digital 

ID of $2,700. 

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 54 

respondents will be, on average, 2,106 

hours. The Commission staff estimates 

that the 7 new respondents would incur 

an initial internal cost of compliance of 

$276,432. In addition, all 54 

respondents will incur, on average, an 

estimated ongoing annual internal cost 

of compliance of $831,438. 

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 54 respondents will be, 

on average, 1,458 hours. The 

Commission staff estimates that the 7 

new respondents would incur an initial 

internal cost of compliance of $276,432. 

In addition, all 54 respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$622,944. 

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 54 respondents will be, 

on average, 2,106 hours. The 

Commission staff estimates that the 7 

new respondents would incur an initial 

internal cost of compliance of $453,089. 

In addition, all 54 respondents will 

incur, on average, an estimated ongoing 

annual internal cost of compliance of 

$831,438. 

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 18 respondents will be, 

on average, 450 hours. The Commission 

staff estimates that 6 new respondents 

would incur an estimated internal 

initial internal cost of compliance of 

$64,515, as well as a one-time cost of 

$5,400 to modify existing recordkeeping 

systems. In addition, all 18 respondents 

will incur, on average, an estimated 

ongoing internal cost of compliance of 

$31,050. 

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. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. Written comments and 


lotter on DSK11XQN23PROD with NOTICES1
Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices 3135 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to (i) MBX.OMB.OIRA.SEC_desk_

officer@omb.eop.gov and (ii) David 

Bottom, Director/Chief Information 

Officer, Securities and Exchange 

Commission, c/o John Pezzullo, 100 F 

Street NE, Washington, DC 20549, or by 

sending an email to: PRA_Mailbox@

sec.gov. 

Dated: January 14, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01058 Filed 1–19–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–523, OMB Control No. 

3235–0585] 

Submission for OMB Review; 

Comment Request; Extension: Rule 

206(4)–7 

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 

(44 U.S.C. 3501 et seq.), the Securities 

and Exchange Commission (the 

‘‘Commission’’) has submitted to the 

Office of Management and Budget 

(‘‘OMB’’) a request for extension of the 

previously approved collection of 

information discussed below. 

The title for the collection of 

information is ‘‘Investment Advisers Act 

rule 206(4)–7, 17 CFR Sec. 275.206(4)– 

7, Compliance procedures and 

practices.’’ This collection of 

information is found at 17 CFR 

275.206(4)–7, and is mandatory. Rule 

206(4)–7 under the Investment Advisers 

Act of 1940 (‘‘Advisers Act’’) requires 

each investment adviser registered with 

the Commission to (1) adopt and 

implement written policies and 

procedures reasonably designed to 

prevent violations of the Advisers Act 

and its rules, (2) review those 

compliance policies and procedures 

annually, and (3) designate a chief 

compliance officer who is responsible 

for administering the compliance 

policies and procedures. The rule is 

designed to protect investors by 

fostering better compliance with the 

securities laws. The collection of 

information under rule 206(4)–7 is 

necessary to help ensure that 

investment advisers maintain 

comprehensive internal programs that 

promote the advisers’ compliance with 

the Advisers Act and its rules. The 

Commission’s examination and 

oversight staff may review the 

information collected to assess 

investment advisers’ compliance 

programs. Responses provided to the 

Commission pursuant to the rule in the 

context of the Commission’s 

examination and oversight program are 

generally kept confidential. 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 control 

number. 

The respondents to this information 

collection are investment advisers 

registered with the Commission. 

Updated data indicate that there were 

14,376 advisers registered with the 

Commission as of August 2021. Each 

respondent would produce one 

response, per year. Commission staff has 

estimated that compliance with rule 

206(4)–7 imposes an annual burden of 

approximately 90 hours per response. 

Based on this figure, Commission staff 

estimates a total annual burden of 

1,293,840 hours for this collection of 

information. 

The public may view the background 

documentation for this information 

collection at the following website, 

www.reginfo.gov. Comments should be 

directed to: (1) 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: 

Lindsay.M.Abate@omb.eop.gov; and (2) 

David Bottom, Director/Chief 

Information Officer, Securities and 

Exchange Commission, c/o John R. 

Pezzullo, 100 F Street NE, Washington, 

DC 20549 or send an email to: PRA_

Mailbox@sec.gov. Written comments 

and recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to www.reginfo.gov/public/do/ 

PRAMain. Find this particular 

information collection by selecting 

‘‘Currently under 30-day Review—Open 

for Public Comments’’ or by using the 

search function. 

Dated: January 14, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–01061 Filed 1–19–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–586, OMB Control No. 

3235–0647] 

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 204 

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’’) 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 204 (17 CFR 242.204), under the 

Securities Exchange Act of 1934 (15 

U.S.C. 78a et seq.). 

Rule 204(a) provides that a participant 

of a registered clearing agency must 

deliver securities to a registered clearing 

agency for clearance and settlement on 

a long or short sale in any equity 

security by settlement date, or if a 

participant of a registered clearing 

agency has a fail to deliver position at 

a registered clearing agency in any 

equity security for a long or short sale 

transaction in the equity security, the 

participant shall, by no later than the 

beginning of regular trading hours on 

the applicable close-out date, 

immediately close out its fail to deliver 

positions by borrowing or purchasing 

securities of like kind and quantity. For 

a short sale transaction, the participant 

must close out a fail to deliver by no 

later than the beginning of regular 

trading hours on the settlement day 

following the settlement date. If a 

participant has a fail to deliver that the 

participant can demonstrate on its books 

and records resulted from a long sale, or 

that is attributable to bona-fide market 

making activities, the participant must 

close out the fail to deliver by no later 

than the beginning of regular trading 

hours on the third consecutive 

settlement day following the settlement 

date. Rule 204 is intended to help 

further the Commission’s goal of 

reducing fails to deliver by maintaining 

the reductions in fails to deliver 

achieved by the adoption of temporary 

Rule 204T, as well as other actions 

taken by the Commission. In addition, 

Rule 204 is intended to help further the 

Commission’s goal of addressing 


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