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[Federal Register Volume 89, Number 245 (Friday, December 20, 2024)]
[Notices]
[Pages 104252-104253]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30367]

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SECURITIES AND EXCHANGE COMMISSION

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

Submission for OMB Review; Comment Request; Extension: Rule 15c3-
4

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.) (``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 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 SBSD'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, an 
ANC firm, or an 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

[[Page 104253]]

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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    The records required to be made 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 notices 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.
    Public Comment Instructions: The 30-day public comment period for 
this information collection request closes at the end of the day on 
January 21, 2025. The public may view the full information request and 
submit comments at https://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=202409-3235-023 or email comments to 
[email protected].

    Dated: December 16, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-30367 Filed 12-19-24; 8:45 am]
BILLING CODE 8011-01-P
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