Document ID: SEC-2016-0892-0001
Agency: sec
Document Type: Rule
Title: Business Conduct Standards for Security-Based Swap Dealers and Major Security-Based Swap Participants; Correction
Posted Date: 2016-05-24T04:00Z

[Federal Register Volume 81, Number 100 (Tuesday, May 24, 2016)]
[Rules and Regulations]
[Page 32643]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-12166]

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SECURITIES AND EXCHANGE COMMISSION

17 CFR Part 240

[Release No. 34-77617A; File No. S7-25-11]
RIN 3235-AL10

Business Conduct Standards for Security-Based Swap Dealers and 
Major Security-Based Swap Participants; Correction

AGENCY: Securities and Exchange Commission.

ACTION: Final rule; correction.

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SUMMARY: The Securities and Exchange Commission (``SEC'' or 
``Commission'') is making a technical correction to a burden estimate 
for Paperwork Reduction Act purposes and a corresponding estimate in 
the Economic Analysis of the business conduct standards for security-
based swap dealers and major security-based swap participants.

DATES: Effective: May 24, 2016.

FOR FURTHER INFORMATION CONTACT: Lourdes Gonzalez, Assistant Chief 
Counsel--Sales Practices, Office of Chief Counsel, Division of Trading 
and Markets, at (202) 551-5550, at the Securities and Exchange 
Commission, 100 F Street NE., Washington, DC 20549.

SUPPLEMENTARY INFORMATION: In Business Conduct Standards for Security-
Based Swap Dealers and Major Security-Based Swap Participants (FR Doc. 
2016-10918), published in the Federal Register on May 13, 2016, the 
following corrections are made:
    1. On page 30090, in the third column, under the heading ``1. 
Verification of Status,'' the second sentence is hereby deleted and 
replaced with the sentence: ``As noted above, Rule 15Fh-3(a)(3) differs 
from the CFTC's rule, which instead includes an opt-in for plans 
``defined in'' ERISA, but not subject to Title I of ERISA.'' Footnote 
1529 remains as published.
    2. Also on page 30090, in the third column, in the fourth sentence 
under the same heading, the phrase ``complying with the rules, as 
adopted,'' is replaced with the phrase ``complying with Rules 15Fh-
3(a)(1) and (2)''.
    3. On page 30091, in the first column, under the same heading, a 
new paragraph begins after footnote 1531, beginning with the sentence 
``We do not anticipate any ongoing burdens with respect to this rule.''
    4. Also on page 30091, in the first column, under the same heading, 
the following sentence is added to the end of the last paragraph under 
this heading: ``We also anticipate that all 55 SBS Entities will incur, 
on average, an initial internal burden of 30 minutes to prepare the 
notice required pursuant to Rule 15Fh-3(a)(3) for counterparties 
defined in Rule 15Fh-2(d)(4), for an aggregate total of 27.5 hours.''
    5. On page 30110, in the first column, in the first sentence of the 
sixth paragraph under the heading ``C. Costs and Benefits of Business 
Conduct Rules, 1. Verification of Status and Know Your Counterparty 
Rules,'' the estimate for the direct costs of compliance is corrected 
to ``$28,050'' from ``$17,600''.
    6. Footnote 1655 on page 30110, is corrected to: ``Initial outside 
counsel cost: $500 * (20 non-CFTC registered SBS Entities) = $10,000. 
Initial adherence letter and notification burden: (In-house attorney at 
$380 per hour) x 47.5 hours = $18,050.''
    7. On page 30120, in the first column, in the fourth paragraph 
under the heading ``4. Special Entities, a. Scope and Verification,'' 
the third sentence is corrected to: ``Out of 3,635 special entities 
subscribed to the ISDA August 2012 DF Protocol, 1,453 market 
participants (approximately 40%) are special entities not defined in 
Rule 15Fh-2(d)(3).''

    Dated: May 19, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-12166 Filed 5-23-16; 8:45 am]
BILLING CODE 8011-01-P