Document ID: SEC-2016-1490-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2016-08-24T04:00Z

[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57946-57948]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-20257]

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SECURITIES AND EXCHANGE COMMISSION

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 19b-4 and Form 19b-4 Filings with Respect to Proposed Rule 
Changes, Securities-Based Swap Submissions, and Advance Notices by 
Self-Regulatory Organizations and the Security-Based Swap Stay of 
Clearing Requirement; SEC File No. 270-38, OMB Control No. 3235-
0045.

    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 of the 
previously approved collection of information provided for in Rule 19b-
4 (17 CFR 240.19b-4), under the Securities Exchange Act of 1934 
(``Act'') (15 U.S.C. 78a et seq.).
    Section 19(b) of the Act (15 U.S.C. 78s(b)) requires each self-
regulatory organization (``SRO'') to file with the Commission copies of 
any proposed

[[Page 57947]]

rule, or any proposed change in, addition to, or deletion from the 
rules of such SRO. Rule 19b-4 implements the requirements of Section 
19(b) by requiring the SROs to file their proposed rule changes on Form 
19b-4 and by clarifying which actions taken by SROs are subject to the 
filing requirement set forth in Section 19(b). Rule 19b-4(n) requires a 
designated clearing agency to provide the Commission advance notice 
(``Advance Notice'') of any proposed change to its rules, procedures, 
or operations that could materially affect the nature or level of risks 
presented by such clearing agency. Rule 19b-4(o) requires a registered 
clearing agency to submit for a Commission determination any security-
based swap, or any group, category, type, or class of security-based 
swaps it plans to accept for clearing (``Security-Based Swap 
Submission''), and provide notice to its members of such submissions.
    The collection of information is designed to provide the Commission 
with the information necessary to determine, as required by the Act, 
whether the proposed rule change is consistent with the Act and the 
rules thereunder. The information is used to determine if the proposed 
rule change should be approved, disapproved, suspended, or if 
proceedings should be instituted to determine whether to approve or 
disapprove the proposed rule change.
    The respondents to the collection of information are SROs (as 
defined by Section 3(a)(26) of the Act), \1\ including national 
securities exchanges, national securities associations, registered 
clearing agencies, notice registered securities future product 
exchanges, and the Municipal Securities Rulemaking Board.
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    \1\ 15 U.S.C. 78c(a)(26).
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    In calendar year 2015, each respondent filed an average of 
approximately 57 proposed rule changes. Each filing takes approximately 
39 hours to complete on average. Thus, the total annual reporting 
burden for filing proposed rule changes with the Commission is 86,697 
hours (57 proposals per year x 39 SROs x 39 hours per filing) for the 
estimated future number of 39 SROs.\2\ In addition to filing their 
proposed rule changes with the Commission, the respondents also are 
required to post each of their proposals on their respective Web sites, 
a process that takes approximately four hours to complete per proposal. 
Thus, for 1,935 proposals, the total annual reporting burden on 
respondents to post the proposals on their Web sites is 7,740 hours 
(1,935 proposals per year x 4 hours per filing) or 8,892 hours (57 
proposals per year x 39 SROs x 4 hours per filing) for the estimated 
future number of 39 SROs. Further, the respondents are required to 
update their rulebooks, which they maintain on their Web sites, to 
reflect the changes that they make in each proposal they file. Thus, 
for all filings that were not withdrawn by a respondent (240 withdrawn 
filings in calendar year 2015) or disapproved by the Commission (6 
disapproved filings in calendar year 2015), the respondents were 
required to update their online rulebooks to reflect the effectiveness 
of 1,689 proposals, each of which takes approximately four hours to 
complete per proposal. Thus, the total annual reporting burden for 
updating online rulebooks is 7,764 hours ((2,223 filings per year-275 
withdrawn filings \3\-7 disapproved filings \4\) x 4 hours). Finally, a 
respondent is required to notify the Commission if it does not post a 
proposed rule change on its Web site on the same day that it filed the 
proposal with the Commission. The Commission estimates that SROs will 
fail to post proposed rule changes on their Web sites on the same day 
as the filing 22 times a year (across all SROs), and that each SRO will 
spend approximately one hour preparing and submitting such notice to 
the Commission, resulting in a total annual burden of 22 hours (22 
notices x 1 hour per notice).
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    \2\ For most of 2015, 34 SROs were registered. One registered 
SRO withdrew in December 2015 and one SRO newly registered with the 
Commission in January 2016. The Commission expects five additional 
respondents to register during the three-year period for which this 
PRA Extension is applicable (three as registered clearing agencies 
and two as national securities exchanges), bringing the total number 
of respondents to 39.
    \3\ For 34 SROs, 240 withdrawn filings equal approximately 7.06 
filings per SRO. For 39 SROs, the figure would increase to 275 
withdrawn filings.
    \4\ For 34 SROs, six disapproved filings equal approximately 
0.18 filings per SRO. For 39 SROs, the figure would increase to 
seven disapproved filings.
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    Designated clearing agencies have additional information collection 
burdens. As noted above, pursuant to Rule 19b-4(n), a designated 
clearing agency must file with the Commission an Advance Notice of any 
proposed change to its rules, procedures, or operations that could 
materially affect the nature or level of risks presented by such 
designated clearing agency. The Commission estimates that four 
designated clearing agencies will each submit five Advance Notices per 
year, with each submission taking 90 hours to complete. The total 
annual reporting burden for filing Advance Notices is therefore 1,800 
hours (4 designated clearing agencies x 5 Advance Notices per year x 90 
hours per response).
    Designated clearing agencies are required to post all Advance 
Notices to their Web sites, each of which takes approximately four 
hours to complete. For five Advance Notices, the total annual reporting 
burden for posting them to respondents' Web sites is 80 hours (4 
designated clearing agencies x 5 Advance Notices per year x 4 hours per 
Web site posting). Respondents are required to update the postings of 
those Advance Notices that become effective, each of which takes 
approximately four hours to complete. The total annual reporting burden 
for updating Advance Notices on the respondents' Web sites is 80 hours 
(4 designated clearing agencies x 5 Advance Notices per year x 4 hours 
per Web site posting).
    Pursuant to Rule 19b-4(n)(5), the respondents are also required to 
provide copies of all materials submitted to the Commission relating to 
an Advance Notice to the Board of Governors of the Federal Reserve 
System (``Board'') contemporaneously with such submission to the 
Commission, which is estimated to take two hours. The total annual 
reporting burden for designated clearing agencies to meet this 
requirement is 40 hours (4 designated clearing agencies x 5 Advance 
Notices per year x 2 hours per response).
    The Commission estimates that three security-based swap clearing 
agencies will each submit 20 Security-Based Swap Submissions per year, 
with each submission taking 140 hours to complete resulting in a total 
annual reporting burden of 8,400 hours (3 respondent clearing agencies 
x 20 Security-Based Swap Submissions per year x 140 hours per 
response). Respondent clearing agencies are required to post all 
Security-Based Swap Submissions to their Web sites, each of which takes 
approximately four hours to complete. For 20 Security-Based Swap 
Submissions, the total annual reporting burden for posting them to the 
three respondents' Web sites is 240 hours (3 respondent clearing 
agencies x 20 Security-Based Swap Submissions per year x 4 hours per 
Web site posting). In addition, three clearing agencies that have not 
previously posted Security-Based Swap Submissions, Advance Notices, and 
proposed rule changes on their Web sites may need to update their 
existing Web sites to post such filings online. The Commission 
estimates that each of these three clearing agencies would spend 
approximately 15 hours updating its existing Web site, resulting in a 
total one-time burden of 45 hours (3

[[Page 57948]]

respondent clearing agencies x 15 hours per Web site update) or 15 
hours annualized over three years.
    Respondent clearing agencies will also have to provide training to 
staff members using the Electronic Form 19b-4 Filing System (``EFFS'') 
to submit Security-Based Swap Submissions, Advance Notices, and/or 
proposed rule changes electronically. The Commission estimates that one 
anticipated security-based swap clearing agency will spend 
approximately 20 hours training all staff members who will use EFFS to 
submit Security-Based Swap Submissions, Advance Notices, and/or 
proposed rule changes electronically, or 6.7 hours annualized over 
three years. The Commission also estimates that one anticipated 
clearing agency will have a one-time burden of 130 hours to draft and 
implement internal policies and procedures for using EFFS to make these 
submissions, or 43.3 hours annualized over three years. The Commission 
estimates that each of the 39 respondents will spend 10 hours each year 
training new compliance staff members and updating the training of 
existing compliance staff members to use EFFS, for a total annual 
burden of 390 hours (39 respondent SROs x 10 hours).
    In connection with Security-Based Swap Submissions, counterparties 
may apply for a stay from a mandatory clearing requirement under Rule 
3Ca-1. The Commission estimates that each clearing agency will submit 
five applications for stays from a clearing requirement per year and it 
will take approximately 18 hours to retrieve, review, and submit each 
application. Thus, the total annual reporting burden for the Rule 3Ca-1 
stay of clearing requirement would be 270 hours (3 respondent clearing 
agencies x 5 stay of clearing applications per year x 18 hours to 
retrieve, review, and submit the stay of clearing information).
    Based on the above, the total estimated annual response burden 
pursuant to Rule 19b-4 and Form 19b-4 is the sum of the total annual 
reporting burdens for filing proposed rule changes, Advance Notices, 
and Security-Based Swap Submissions; training staff to file such 
proposals; drafting, modifying, and implementing internal policies and 
procedures for filing such proposals; posting each proposal on the 
respondents' Web sites; updating Web sites to enable posting of 
proposals; updating the respondents' online rulebooks to reflect the 
proposals that became effective; submitting copies of Advance Notices 
to the Board; and applying for stays from clearing requirements, which 
is 114,740 hours.
    Compliance with Rule 19b-4 is mandatory. Information received in 
response to Rule 19b-4 shall not be kept confidential; the information 
collected is public 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 Web site, www.reginfo.gov. Comments should 
be directed to: (i) 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: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: August 19, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-20257 Filed 8-23-16; 8:45 am]
 BILLING CODE 8011-01-P