Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Notices 38437 

17 Id. 18 17 CFR 200.30–3(a)(12). 

the additional EM Contracts. ICC 

believes that these procedures allow for 

it to take timely action to contain losses 

and liquidity demands and to continue 

meeting its obligations in the event of 

clearing member insolvencies or 

defaults in respect of the additional 

single name, in accordance with Rule 

17Ad–22(e)(13).17

(B) Clearing Agency’s Statement on 

Burden on Competition 

ICC does not believe the proposed 

amendments will have any impact, or 

impose any burden, on competition not 

necessary or appropriate in furtherance 

of the purposes of the Act. As discussed 

above, the purpose of the proposed rule 

change is to adopt rules that will 

provide the basis for ICC to clear 

additional credit default swap contracts. 

The additional EM Contracts will be 

available to all ICC participants for 

clearing. The clearing of the additional 

EM Contracts by ICC does not preclude 

the offering of the additional EM 

Contracts for clearing by other market 

participants. Accordingly, ICC does not 

believe that clearance of the additional 

EM Contracts will impose any burden 

on competition not necessary or 

appropriate in furtherance of the 

purposes of the Act. 

(C) Clearing Agency’s Statement on 

Comments on the Proposed Rule 

Change Received From Members, 

Participants or Others 

Written comments relating to the 

proposed rule change have not been 

solicited or received. ICC will notify the 

Commission of any written comments 

received by ICC. 

III. Date of Effectiveness of the 

Proposed Rule Change and Timing for 

Commission Action 

Within 45 days of the date of 

publication of this notice in the Federal 

Register or within such longer period 

up to 90 days (i) as the Commission may 

designate if it finds such longer period 

to be appropriate and publishes its 

reasons for so finding or (ii) as to which 

the self-regulatory organization 

consents, the Commission will: 

(A) by order approve or disapprove 

such proposed rule change, or 

(B) institute proceedings to determine 

whether the proposed rule change 

should be 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– 

ICC–2022–007 on the subject line. 

Paper Comments 

Send paper comments in triplicate to 

Secretary, Securities and Exchange 

Commission, 100 F Street NE, 

Washington, DC 20549. 

All submissions should refer to File 

Number SR–ICC–2022–007. 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 

filings will also be available for 

inspection and copying at the principal 

office of ICE Clear Credit and on ICE 

Clear Credit’s website at https://

www.theice.com/clear-credit/regulation. 

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–ICC–2022–007 and 

should be submitted on or before July 

19, 2022. 

For the Commission, by the Division of 

Trading and Markets, pursuant to delegated 

authority.18

J. Matthew DeLesDernier, 

Secretary. 

[FR Doc. 2022–13707 Filed 6–27–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[SEC File No. 270–652, OMB Control No. 

3235–0699] 

Proposed Collection; Comment 

Request; Extension: Rule 18a–2 

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 existing collection of information 

provided for in Rule 18a–2 (17 CFR 

240.18a–2), 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. 

Rule 18a–2 establishes capital 

requirements for nonbank major 

security-based swap participants that 

are also not registered as broker-dealers 

(‘‘nonbank MSBSPs’’). In particular, a 

nonbank MSBSP is required at all times 

to have and maintain positive tangible 

net worth. 

Under Rule 18a–2, nonbank MSBSPs 

also need to comply with Exchange Act 

Rule 15c3–4 (17 CFR 240.15c3–4), 

which requires OTC derivatives dealers 

and other firms subject to its provisions 

to establish, document, and maintain a 

system of internal risk management 

controls to assist the firm in managing 

the risk associated with its business 

activities, including market, credit, 

leverage, liquidity, legal, and 

operational risks. 

The staff previously estimated that 5 

or fewer nonbank entities would register 

with the Commission as MSBSPs. The 

staff continues to estimate that 5 or 

fewer nonbank entities will register with 

the Commission as MSBSPs, although 

currently no such entities have 

registered. These nonbank MSBSPs will 

be required to establish, document, and 

regularly review and update risk 

management control systems with 


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38438 Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Notices 

1 5 MSBSPs × 2,000 hours = 10,000 hours. This 

one-time burden annualized over a 3-year period is 

approximately 3,333 hours industry-wide (10,000 

hours/3 = 3,333.33 rounded down to 3,333). 2 5 MSBSPs × 250 hours/year = 1,250 hours/year. 3 2,000 hours/3 years = 3,333.33 + 1,250 hours = 

4,583.33 hours rounded down to 4,583. 4 5 MSBSPs × 200 hours × $400/hour = $400,000. 

Annualized over three years, this industry-wide 

burden is approximately $133,333 per year 

($400,000/3 years = $133,333.33 rounded down to 

$133,333). 5See Risk Management Controls for Broker or 

Dealers with Market Access, Exchange Act Release 

No. 6321 (Nov. 3, 2010), 75 FR 69792, 69814 (Nov. 

15, 2010). 

6 5 MSBSPs × $16,000/3 years = $26,666.666, 

rounded up to $26,667. 7 5 MSBSP × $20,500 = $102,500. 8 $80,000/3 years + $102,500 = $129,166.667 

rounded up to $129,167. 

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

2 17 CFR 240.19b–4. 

respect to market, credit, leverage, 

liquidity, legal and operational risks. 

Based on similar estimates for OTC 

derivatives dealers, the Commission 

staff believes that each nonbank MSBSP 

will spend approximately 2,000 hours to 

implement its risk management control 

system, resulting in a one-time industrywide hour burden of approximately 

10,000 recordkeeping hours, or 

approximately 3,333 hours per year 

when annualized over 3 years.1

Based on similar estimates for OTC 

derivatives dealers, the staff further 

estimates that each of these firms will 

spend approximately 250 hours per year 

reviewing and updating its risk 

management control systems, resulting 

in an ongoing annual industry-wide 

hour burden of approximately 1,250 

recordkeeping hours per year.2

Taken together, the total industrywide recordkeeping hour burden is 

approximately 4,583 hours per year.3

Because nonbank MSBSPs may not 

initially have the systems or expertise 

internally to meet the risk management 

requirements of Rule 18a–2, these firms 

will likely hire an outside risk 

management consultant to assist them 

in implementing their risk management 

systems. The staff estimates that each 

firm will hire an outside management 

consultant for approximately 200 hours 

at a cost of approximately $400 per 

hour, for a one-time external 

management consulting cost of 

approximately $80,000 per respondent, 

and a total one-time industry 

management consulting cost of 

approximately $400,000, or 

approximately $133,333 per year 4 when 

annualized over 3 years. Nonbank MSBSPs may incur start-up 

costs to comply with Rule 18a–2, 

including information technology costs. 

The information technology systems of 

a nonbank MSBSP may be in varying 

stages of readiness to enable these firms 

to meet the requirements of Rule 18a– 

2, so the cost of modifying their 

information technology systems could 

vary significantly among firms. Based 

on estimates for similar collections of 

information,5 the Commission staff 

expects that each nonbank MSBSP will 

spend an average of approximately 

$16,000 for one-time initial hardware 

and software external expenses, for a 

total one-time industry-wide external 

information technology cost of 

approximately $80,000, or 

approximately $26,667 per year 6 when 

annualized over 3 years. Based on the 

estimates for these similar collections of 

information, the average ongoing 

external cost to meet the information 

technology requirements of Rule 18a–2 

will be approximately $20,500 per 

nonbank MSBSP. This will result in an 

ongoing annual industry-wide external 

information technology cost of 

approximately $102,500.7 Taken 

together, the total industry-wide 

information technology related cost 

burden is approximately $129,167 per 

year.8

Therefore, the total industry-wide 

recordkeeping cost burden is 

approximately $262,500 per year 

($133,333 + $129,167 = $262,500). 

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 

August 29, 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: June 22, 2022. 

J. Matthew DeLesDernier, 

Assistant Secretary. 

[FR Doc. 2022–13712 Filed 6–27–22; 8:45 am] 

BILLING CODE 8011–01–P 

SECURITIES AND EXCHANGE 

COMMISSION 

[Release No. 34–95140; File No. SR–MIAX– 

2022–23] 

Self-Regulatory Organizations: Miami 

International Securities Exchange, 

LLC; Notice of Filing and Immediate 

Effectiveness of a Proposed Rule 

Change To Amend Exchange Rule 

1900, Registration Requirements, 

Exchange Rule 1903, Continuing 

Education Requirements, and 

Exchange Rule 1904, Electronic Filing 

Requirements for Uniform Forms 

June 22, 2022. 

Pursuant to the provisions of 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 June 10, 2022, Miami International 

Securities Exchange, LLC (‘‘MIAX 

Options’’ or the ‘‘Exchange’’) filed with 

the Securities and Exchange 

Commission (‘‘Commission’’) a 

proposed rule change as described in 

Items I and II below, which Items have 

been prepared by the Exchange. The 

Commission is publishing this notice to 

solicit comments on the proposed rule 

change from interested persons. 

I. Self-Regulatory Organization’s 

Statement of the Terms of Substance of 

the Proposed Rule Change 

The Exchange is filing a proposal to 

amend Exchange Rule 1903, Continuing 

Education Requirements. The proposed 

rule change also makes conforming 

amendments to Exchange Rule 1900, 

Registration Requirements. Among other 

changes, the proposed rule change 

requires that the Regulatory Element of 

continuing education be completed 

annually rather than every three years 

and provide a path through continuing 

education for individuals to maintain 

their qualification following the 

termination of a registration. The 

Exchange also proposes to amend its 

manual signature requirements in 

Exchange Rule 1904, Electronic Filing 

Requirements for Uniform Forms. 

The text of the proposed rule change 

is available on the Exchange’s website at 

http://www.miaxoptions.com/rulefilings/, at MIAX Options’ principal 

office, and at the Commission’s Public 

Reference Room. 


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