Federal Register / Vol. 87, No. 93 / Friday, May 13, 2022 / Notices 29419 

1This OMB Control Number previously included 

the collections of information in Rule 18–10 as well 

as the ones in Rule 18a–3. The Commission 

subsequently requested a separate OMB Control 

Number for the collections of information in Rule 

18a–10. OMB approved that request on February 9, 

2022, and the collections of information for Rule 

18a–10 are now in OMB Control Number 3235– 

0785. As a result, the Commission is now changing 

the burdens in this OMB Control Number 3235– 

0702 to remove the ones previously included for 

Rule 18a–10. The Collections of information in Rule 

18a–10 were included in OMB Control Number 

3235–0702 because Rule 18a–10 was not proposed, 

but was adopted concurrently with 18a–3 as a result 

of comments received on the proposal for Rule 18a– 

3. The Commission later amended Rule 18a–10 and 

revised the collections of information in Rule 18a– 

10 and, at that time, requested a separate OMB 

Control Number. See PRA ICR Documents for 3235– 

0785 on (reginfo.gov). 

2While Rule 18a–3 contains requirements that 

apply to both nonbank SBSDs and MSBSPs, the 

particular requirements that constitute a collection 

of information relate only to nonbank SBSDs. 3 7 nonbank SBSDs × 210 hours = 1,470 hours. 

These amounts are annualized over three years 

resulting in 70 (210 hours/3 years) hours per 

nonbank SBSD per year and an industry wide 

annual burden of 490 recordkeeping hours. 

4 7 nonbank SBSDs × 60 hours = 420 hours. 

5 490 hours + 420 hours = 910 hours. 

6 5 nonbank SBSDs × 50 hours = 250 hours. These 

amounts are annualized over three years resulting 

in 16.67 (50 hours/3 years) hours per nonbank 

SBSD per year and an industry wide annual burden 

of 83.33 recordkeeping hours, rounded down to 83 

hours. 

$455, and half would be by a 

compliance officer at an hourly rate of 

$400, for a total cost of $2,385,450. 

Finally, we expect that the 1,003 

newly registered entities that are not 

affiliated with an existing institution 

will incur a significantly higher hourly 

burden in reviewing and documenting 

their safeguard policies and procedures. 

We expect that virtually all of the newly 

registered covered entities that do not 

have an affiliate are likely to be small 

entities and are likely to have smaller 

and less complex operations, with a 

correspondingly smaller set of safeguard 

policies and procedures to document, 

compared to other larger existing 

institutions with multiple affiliates. We 

estimate that it will take a typical newly 

registered unaffiliated institution 

approximately 60 hours to review, 

identify, and document their safeguard 

policies and procedures, for a total of 

60,180 hours for all newly registered 

unaffiliated entities. We expect that half 

of this time would be incurred by inside 

counsel at an hourly rate of $455, and 

half would be by a compliance officer at 

an hourly rate of $400, for a total cost 

of $25,726,950. 

Therefore, we estimate that the total 

annual hourly burden associated with 

the safeguards rule is 65,760 hours at a 

total hourly cost of $28,112,400. We also 

estimate that all covered institutions 

will be respondents each year, for a total 

of 20,309 respondents. 

These estimates of average burden 

hours are made solely for the purposes 

of the Paperwork Reduction Act. 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 safeguard rule does not 

require the reporting of any information 

or the filing of any documents with the 

Commission. The collection of 

information required by the safeguard 

rule is mandatory. 

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 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by June 13, 2022. 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: May 9, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10300 Filed 5–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–651, OMB Control No. 

3235–0702] 

Proposed Collection; 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 18a–3 

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 existing collection of information 

provided for in Rule 18a–3 (17 CFR 

240.18a–3), under the Securities 

Exchange Act of 1934 (15 U.S.C. 78a et 

seq.) (‘‘Exchange Act’’). The 

Commission plans to submit this 

existing collection of information to the 

Office of Management and Budget 

(‘‘OMB’’) for extension and approval.1

Rule 18a–3 establishes minimum 

margin requirements for nonbank 

security-based swap dealers (‘‘SBSDs’’) 

and nonbank major security-based swap 

participants (‘‘MSBSPs’’) for noncleared security-based swaps. Under 

paragraph (e) of Rule 18a–3 nonbank 

SBSDs are required to monitor the risk 

of each account that holds non-cleared 

security based swaps for a counterparty 

and to establish, maintain, and 

document procedures and guidelines for 

monitoring the risk of accounts as part 

of its risk management control system 

required under Exchange Act Rule 

15c3–4. In addition, paragraph (d)(2) of 

Rule 18a–3 provides that a nonbank 

SBSD seeking approval to use a model 

to calculate initial margin will be 

subject to an application process 

consistent with Exchange Act Rule 

15c3–1e and paragraph (d) of Exchange 

Act Rule 18a–1, as applicable, governing 

the use of internal models to compute 

net capital.2

The total annual hour burden 

associated with Rule 18a–3 is 

approximately 2,243 hours calculated as 

follows: 

The Commission staff estimates that 

there are 7 nonbank SBSDs that are 

subject to Rule 18a–3. The staff further 

estimates that each would spend an 

average of approximately 210 hours 

establishing and documenting their Rule 

18a–3 counterparty risk monitoring 

procedures, for a one-time industrywide hour burden of approximately 

1,470 recordkeeping hours or 490 hours 

per year when annualized over three 

years.3 In addition, the staff estimates 

that each nonbank SBSD would spend 

an average of approximately 60 hours 

per year reviewing risks associated with 

its counterparties, for an annual 

industry-wide burden of approximately 

420 recordkeeping hours.4 Taken 

together, the annual industry-wide hour 

burden is approximately 910 hours.5

The Commission estimates it will take 

a nonbank SBSD approximately 50 

hours to prepare and submit an 

application to the Commission to seek 

authorization to use an internal model 

to calculate initial margin. The staff 

estimates that five non-bank SBSDs 

have sought Commission approval to 

use an internal model to calculate initial 

margin, resulting in a total industrywide one-time hour burden of 

approximately 250 hours or 

approximately 83 hours per year when 

annualized over three years.6 The 

Commission also estimates that each 

nonbank SBSD will spend 

approximately 250 hours per year 

reviewing, updating, and back testing 

their initial margin model, resulting in 


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29420 Federal Register / Vol. 87, No. 93 / Friday, May 13, 2022 / Notices 

7 5 nonbank SBSDs × 250 hours = 1,250 hours. 

8 (250 hours/3 years) + 1,250 hours = 1,333.33 

hours, rounded down to 1,333 hours. 

9 5 nonbank SBSDs × $400/hour × 5 hours= 

$10,000. This amount annualized is $3,333.33 per 

nonbank SBSD, rounded down to $3,333. 

a total industry-wide annual hour 

burden of approximately 1,250 

recordkeeping hours.7 Taken together, 

the Commission estimates an annual 

industry-wide hour burden of 

approximately 1,333 hours.8

The total annual hour burden 

associated with Rule 18a–3 is thus 

approximately 2,243 hours (910 hours + 

1,333 hours). 

The total annual cost burden 

associated with Rule 18a–3 is 

approximately $3,333 calculated as 

follows: 

The 7 respondents subject to the 

collection of information may incur 

start-up costs in order to comply with 

this collection of information. These 

costs may vary depending on the size 

and complexity of the nonbank SBSD. 

In addition, the start-up costs may be 

less for the 2 nonbank SBSD 

respondents also registered as brokerdealers because these firms may already 

be subject to similar requirements with 

respect to other margin rules. For the 

remaining 5 nonbank SBSDs, because 

these written procedures may be novel 

undertakings for these firms, the 

Commission staff assumes these 

nonbank SBSDs will have their written 

risk analysis methodology reviewed by 

outside counsel. Therefore, the staff 

estimates that these 5 nonbank SBSDs 

will engage an outside counsel to review 

their written risk analysis methodology, 

at a rate of approximately $400 per hour 

for 5 hours (i.e., $2,000 in legal costs). 

This will result in a one-time industrywide external recordkeeping cost of 

approximately $10,000, or 

approximately $3,333 per year 9

annualized over 3 years. 

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 

July 12, 2022. 

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: May 9, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10285 Filed 5–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–54, OMB Control No. 

3235–0056] 

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: 

Form 8–A 

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 

(‘‘Commission’’) has submitted to the 

Office of Management and Budget this 

request for extension of the previously 

approved collection of information 

discussed below. 

Form 8–A (17 CFR 249.208a) is a 

registration statement used to register a 

class of securities under Section 12(b) or 

Section 12(g) of the Securities Exchange 

Act of 1934 (15 U.S.C. 78l(b) and 78l(g)) 

(‘‘Exchange Act’’). Section 12(a) (15 

U.S.C. 78l(a)) of the Exchange Act 

makes it unlawful for any member, 

broker, or dealer to effect any 

transaction in any security (other than 

an exempted security) on a national 

securities exchange unless such security 

has been registered under the Exchange 

Act (15 U.S.C. 78a et seq.). Exchange 

Act Section 12(b) establishes the 

registration procedures. Exchange Act 

Section 12(g) requires an issuer that is 

not a bank or bank holding company to 

register a class of equity securities (other 

than exempted securities) within 120 

days after its fiscal year end if, on the 

last day of its fiscal year, the issuer has 

total assets of more than $10 million 

and the class of equity securities is 

‘‘held of record’’ by either (i) 2,000 

persons, or (ii) 500 persons who are not 

accredited investors. An issuer that is a 

bank or a bank holding company, must 

register a class of equity securities (other 

than exempted securities) within 120 

days after the last day of its first fiscal 

year ended after the effective date of the 

JOBS Act if, on the last day of its fiscal 

year, the issuer has total assets of more 

than $10 million and the class of equity 

securities is ‘‘held of record’’ by 2,000 

or more persons. The information must 

be filed with the Commission on 

occasion. Form 8–A is a public 

document. Form 8–A takes 

approximately 3 hours to prepare and is 

filed by approximately 1,376 

respondents for a total annual reporting 

burden of 4,128 hours (3 hours per 

response × 1,376 responses). 

An agency may 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 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 

recommendations for the proposed 

information collection should be sent 

within 30 days of publication of this 

notice by June 13, 2022 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: May 9, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–10288 Filed 5–12–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–94874; File No. SR–MIAX– 

2022–16] 

Self-Regulatory Organizations; Miami 

International Securities Exchange, 

LLC; Notice of Withdrawal of Proposed 

Rule Change To Amend the MIAX Fee 

Schedule To Adopt a Tiered-Pricing 

Structure for Additional Limited 

Service MIAX Express Interface Ports 

May 9, 2022. 

On April 1, 2022, Miami International 

Securities Exchange, LLC (‘‘MIAX’’ or 


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