24368 Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices 

efficiency, competition, and capital formation. See 

15 U.S.C. 78c(f). 29 17 CFR 200.30–3(a)(12). 

1The hourly rate used for a compliance clerk was 

from SIFMA’s Office Salaries in the Securities 

Industry 2013, modified by Commission staff to 

account for an 1,800 hour work-year and multiplied 

by 2.93 to account for bonuses, firm size, employee 

benefits and overhead. 

2The hourly rate used for a compliance manager 

was from SIFMA’s Management & Professional 

Earnings in the Securities Industry 2013, modified 

by Commission staff to account for an 1,800 hour 

work-year and multiplied by 5.35 to account for 

bonuses, firm size, employee benefits and overhead. 

At any time within 60 days of the 

filing of the proposed rule change, the 

Commission summarily may 

temporarily suspend such rule change if 

it appears to the Commission that such 

action is necessary or appropriate in the 

public interest, for the protection of 

investors, or otherwise in furtherance of 

the purposes of the Act. If the 

Commission takes such action, the 

Commission shall institute proceedings 

to determine whether the proposed rule 

should be approved or disapproved. 

IV. Solicitation of Comments 

Interested persons are invited to 

submit written data, views and 

arguments concerning the foregoing, 

including whether the proposed rule 

change is consistent with the Act. 

Comments may be submitted by any of 

the following methods: 

Electronic Comments 

• Use the Commission’s internet 

comment form (http://www.sec.gov/ 

rules/sro.shtml); or 

• Send an email to rule-comments@

sec.gov. Please include File Number SR– 

CboeBYX–2022–013 on the subject line. 

Paper Comments 

• Send paper comments in triplicate 

to Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549–1090. 

All submissions should refer to File 

Number SR–CboeBYX–2022–013. This 

file number should be included on the 

subject line if email is used. To help the 

Commission process and review your 

comments more efficiently, please use 

only one method. The Commission will 

post all comments on the Commission’s 

internet website (http://www.sec.gov/ 

rules/sro.shtml). Copies of the 

submission, all subsequent 

amendments, all written statements 

with respect to the proposed rule 

change that are filed with the 

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 

10:00 a.m. and 3:00 p.m. Copies of such 

filing also will be available for 

inspection and copying at the principal 

office of the Exchange. All comments 

received will be posted without change. 

Persons submitting comments are 

cautioned that we do not redact or edit 

personal identifying information from 

comment submissions. You should 

submit only information that you wish 

to make available publicly. All 

submissions should refer to File 

Number SR–CboeBYX–2022–013 and 

should be submitted on or before May 

16, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.29

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08682 Filed 4–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–329, OMB Control No. 

3235–0371] 

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 15a–6 

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 15a–6 (17 CFR 240.15a–6) under 

the Securities Exchange Act of 1934 (15 

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

Rule 15a-6 provides conditional 

exemptions from the requirement to 

register as a broker-dealer pursuant to 

Section 15 of the Securities Exchange 

Act for foreign broker-dealers that 

engage in certain specified activities 

involving U.S. persons. In particular, 

Rule 15a–6(a)(3) provides an exemption 

from broker-dealer registration for 

foreign broker-dealers that solicit and 

effect transactions with or for U.S. 

institutional investors or major U.S. 

institutional investors through a 

registered broker-dealer, provided that 

the U.S. broker-dealer, among other 

things, obtains certain information 

about, and consents to service of process 

from, the personnel of the foreign 

broker-dealer involved in such 

transactions, and maintains certain 

records in connection therewith. 

These requirements are intended to 

ensure (a) that the registered brokerdealer will receive notice of the identity 

of, and has reviewed the background of, 

foreign personnel who will contact U.S. 

investors, (b) that the foreign brokerdealer and its personnel effectively may 

be served with process in the event 

enforcement action is necessary, and (c) 

that the Commission has ready access to 

information concerning these persons 

and their U.S. securities activities. 

Commission staff estimates that 

approximately 2,000 U.S. registered 

broker-dealers will spend an average of 

two hours of clerical staff time and one 

hour of managerial staff time per year 

obtaining the information required by 

the rule, resulting in a total aggregate 

burden of 6,000 hours per year for 

complying with the rule. Assuming an 

hourly cost of $72 1 for a compliance 

clerk and $319 2 for a compliance 

manager, the resultant total internal 

labor cost of compliance for the 

respondents is $926,000 per year (2,000 

entities × ((2 hours/entity × $72/hour) + 

(1 hour per entity × $319/hour)) = 

$926,000). 

In general, the records to be 

maintained under Rule 15a–6 must be 

kept for the applicable time periods as 

set forth in Rule 17a–4 (17 CFR 

240.17a–4) under the Exchange Act or, 

with respect to the consents to service 

of process, for a period of not less than 

six years after the applicable person 

ceases engaging in U.S. securities 

activities. Reliance on the exemption set 

forth in Rule 15a–6 is voluntary, but if 

a foreign broker-dealer elects to rely on 

such exemption, the collection of 

information described therein is 

mandatory. The collection does not 

involve confidential information. 

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 


khammond on DSKJM1Z7X2PROD with NOTICES
Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices 24369 

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

2 17 CFR 240.19b–4. 

3Capitalized terms not otherwise defined herein 

are defined in the MBSD Rules, as applicable, 

available at http://www.dtcc.com/legal/rules-andprocedures. 

4Because FICC requested confidential treatment, 

the QRM Methodology was filed separately with the 

Secretary of the U.S. Securities and Exchange 

Commission (‘‘Commission’’) as part of proposed 

rule change SR–FICC–2016–007 (the ‘‘VaR Filing’’). 

See Securities Exchange Act Release No. 79868 

(January 24, 2017), 82 FR 8780 (January 30, 2017) 

(SR–FICC–2016–007) (‘‘VaR Filing Approval 

Order’’). FICC also filed the VaR Filing proposal as 

an advance notice pursuant to Section 806(e)(1) of 

the Payment, Clearing, and Settlement Supervision 

Act of 2010 (12 U.S.C. 5465(e)(1)) and Rule 19b– 

4(n)(1)(i) under the Securities Exchange Act of 

1934, as amended (‘‘Act’’) (17 CFR 240.19b– 

4(n)(1)(i)), with respect to which the Commission 

issued a Notice of No Objection. See Securities 

Exchange Act Release No. 79843 (January 19, 2017), 

82 FR 8555 (January 26, 2017) (SR–FICC–2016– 

801). The QRM Methodology has been amended 

following the VaR Filing Approval Order. See 

Securities Exchange Act Release Nos. 85944 (May 

24, 2019), 84 FR 25315 (May 31, 2019) (SR–FICC– 

2019–001), 90182 (October 14, 2020) 85 FR 66630 

(October 20, 2020) (SR–FICC–2020–009) and 92303 

(June 30, 2021) 86 FR 35854 (July 7, 2021) (SR– 

FICC–2020–017). 

5A Fail is a Transaction the clearing of which has 

not occurred or has not been reported to FICC as 

having occurred on the Contractual Settlement 

Date, or expiration date, as applicable. See 

definition of ‘‘Fail’’ in MBSD Rule 1, supra note 3. 

for Public Comments’’ or by using the 

search function. Written comments and 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice to (i) www.reginfo.gov/public/do/ 

PRAMain 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: April 19, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–08666 Filed 4–22–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94745; File No. SR–FICC– 

2022–002] 

Self-Regulatory Organizations; Fixed 

Income Clearing Corporation; Notice of 

Filing of Proposed Rule Change To 

Revise the MBSD Clearing Rules To 

Move Certain DRC Items (Mark-toMarket Items, Cash Obligation Items 

and Accrued Principal and Interest) 

From the Required Fund Deposit 

Calculation to Cash Settlement, Revise 

Certain Thresholds and Parameters in 

the Intraday Mark-to-Market Charge, 

Establish a New Intraday VaR Charge 

and Make Certain Other Clarifications 

April 19, 2022. 

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

Securities Exchange Act of 1934 

(‘‘Act’’) 1 and Rule 19b–4 thereunder,2

notice is hereby given that on April 8, 

2022, Fixed Income Clearing 

Corporation (‘‘FICC’’) 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 clearing agency. The Commission 

is publishing this notice to solicit 

comments on the proposed rule change 

from interested persons. 

I. Clearing Agency’s Statement of the 

Terms of Substance of the Proposed 

Rule Change 

FICC is proposing to amend the 

Mortgage-Backed Securities Division 

(‘‘MBSD’’) Clearing Rules (‘‘MBSD 

Rules’’) 3 to (1)(a) delete the 

Deterministic Risk Component (‘‘DRC’’) 

from the Required Fund Deposit 

calculation, (b) move certain items 

currently in the DRC (Mark-to-Market 

items, cash obligation items and accrued 

principal and interest) to Cash 

Settlement and (c) retain the six days’ 

interest for Fails item currently in the 

DRC calculation as a separate part of the 

Required Fund Deposit, (2) revise the 

definition of Intraday Mark-to Market 

Charge to reflect the movement of the 

DRC items to Cash Settlement and to 

revise certain thresholds and 

parameters, (3) establish a new intraday 

VaR Charge and (4) make other 

clarifying changes in the MBSD Rules, 

as described in more detail below. 

The proposal would also make certain 

conforming changes to the Methodology 

and Model Operations Document— 

MBSD Quantitative Risk Model (the 

‘‘QRM Methodology’’) in order to 

implement the proposed changes to the 

MBSD Rules, which changes are 

attached hereto [sic] as Exhibit 5B, as 

described in greater detail below.4

II. Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

In its filing with the Commission, the 

clearing agency included statements 

concerning the purpose of and basis for 

the proposed rule change and discussed 

any comments it received on the 

proposed rule change. The text of these 

statements may be examined at the 

places specified in Item IV below. The 

clearing agency has prepared 

summaries, set forth in sections A, B, 

and C below, of the most significant 

aspects of such statements. 

(A) Clearing Agency’s Statement of the 

Purpose of, and Statutory Basis for, the 

Proposed Rule Change 

1. Purpose 

As described in greater detail below, 

FICC is proposing changes to the MBSD 

Rules that would move mark-to-market 

components from Clearing Members’ 

Required Fund Deposits to Cash 

Settlement. While the proposed change 

would impact, in some cases, the form 

of Clearing Members’ payments with 

respect to these obligations, a study 

described in greater detail below 

indicated that the impact to Clearing 

Members with debit balances would not 

be material as compared to their total 

Clearing Fund obligations. 

In connection with this proposed 

change, the proposal would also make 

conforming changes to the definition of 

‘‘Intraday Mark-to-Market Charge’’ and 

would clarify the MBSD Rules regarding 

the thresholds and parameters used in 

collecting this charge. An impact study 

based on the hypothetical assumption 

that MBSD would reduce the thresholds 

to the proposed floors, as described in 

greater detail below, indicated the 

proposal could increase total average 

Intraday Mark-to-Market Charges 

collected by FICC by an amount that 

represented approximately 2.8% of the 

total average Clearing Fund collected on 

those days. 

Finally, the proposal would provide 

greater transparency to Clearing 

Members by introducing a formal 

Intraday VaR Charge, which FICC 

currently collects as a special charge in 

certain market conditions. Again, a 

study conducted to approximate the 

impact of this proposed change 

indicated it could result in an increase 

in amounts collected by FICC, but that 

amount represented approximately less 

than 0.1% of total average Clearing 

Fund collected on the study dates, as 

described in greater detail below. 

These proposed changes to the MBSD 

Rules are summarized below and 

described in greater detail in this filing: 

(1) Move Mark-to-Market related 

charges from the Required Fund Deposit 

calculation to Cash Settlement. FICC is 

proposing to move all of the mark-tomarket components currently in the 

DRC (except for six days’ interest for 

Fails) 5 to Cash Settlement. FICC 

proposes to accomplish this by deleting 

the DRC from the Required Fund 

Deposit calculation and moving certain 

DRC items (Mark-to-Market items, cash 


khammond on DSKJM1Z7X2PROD with NOTICES