Document ID: SEC-2016-0018-0003
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2022-03-23T04:00Z

[Federal Register Volume 87, Number 56 (Wednesday, March 23, 2022)]
[Notices]
[Pages 16538-16539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06151]

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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-441, OMB Control No. 3235-0497]

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 15c3-4

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), 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 
15c3-4 (17 CFR. 240.15c3-4) (the ``Rule'') under the Securities 
Exchange Act of 1934 (15 U.S.C. 78a et seq.).
    Rule 15c3-4 requires certain broker-dealers that are registered 
with the Commission as OTC derivatives dealers, or who compute their 
net capital charges under Appendix E to Rule 15c3-1 (17 CFR 240.15c3-1) 
(``ANC firms''), to establish, document, and maintain a system of 
internal risk management controls. In addition, security-based swap 
dealers (``SBSDs'') that are subject to Rule 18a-1 (17 CFR 240.18a-1) 
must comply with Rule 15c3-4 as if they were OTC derivatives dealers. 
The Rule sets forth the basic elements for an OTC derivatives dealer, 
an ANC firm, or an SBSD to consider and include when establishing, 
documenting, and reviewing its internal risk management control system, 
which is designed to, among other things, ensure the integrity of an 
OTC derivatives dealer's, an ANC firm's or an SBSD's risk measurement, 
monitoring, and management process, to clarify accountability at the 
appropriate organizational level, and to define the permitted scope of 
the firm's activities and level of risk. The Rule also requires that 
management of an OTC derivatives dealer, an ANC firm, or an SBSD must 
periodically review, in accordance with written procedures, the firm's 
business activities for consistency with its risk management 
guidelines.
    The staff estimates that the average amount of time a new firm 
subject to Rule 15c3-4 will spend establishing and documenting its risk 
management control system is approximately 2,000 hours (666.666667 
hours per year when annualized over three years) and that, on average, 
an existing firm subject to Rule 15c3-4 will spend approximately 200 
hours each year to maintain (e.g., reviewing and updating) its risk 
management control system. Currently, five firms are registered with 
the Commission as OTC derivatives dealers, five as ANC firms, and one 
as an SBSD. The staff estimates that approximately two new additional 
entities may register as OTC derivatives dealers, one new entity may 
register as an ANC firm, and two new entities may register as SBSDs 
subject to the requirements of Rule 15c3-4 within the next three years. 
Thus, the estimated annual burden would be 2,200 hours for the eleven 
existing firms (five OTC derivatives dealers, five ANC firms, and one 
SBSD) currently required to comply with Rule 15c3-4 to maintain their 
risk management control systems,\1\ 3,333 hours for the five new firms 
(two new OTC derivatives dealers, one new ANC firm, and two new SBSDs) 
to establish and document their risk management control systems,\2\ and 
1,000 hours for the five new firms (two new OTC derivatives dealers, 
one new ANC firm, and two new SBSDs) to maintain their risk management 
control systems.\3\ Accordingly, the staff estimates the total

[[Page 16539]]

annual burden associated with Rule 15c3-4 for the 16 respondents (nine 
OTC derivatives dealers, six ANC firms, and five SBSDs) will be 
approximately 6,533 hours per year.
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    \1\ (200 hours x 11 firms) = 2200.
    \2\ ((2,000 hours/3 years) x 5 firms) = 3,333.
    \3\ (200 hours x 5 firms) = 1000.
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    The records required to be made pursuant to the Rule and the 
results of the periodic reviews conducted under paragraph (d) of Rule 
15c3-4 must be preserved under Rule 17a-4 of the Exchange Act (17 CFR 
240.17a-4) for a period of not less than three years, the first two 
years in an easily accessible place. The Commission will not generally 
publish or make available to any person notices or reports received 
pursuant to the Rule. The statutory basis for the Commission's refusal 
to disclose such information to the public is the exemption contained 
in section (b)(4) of the Freedom of Information Act (5 U.S.C. 552), 
which essentially provides that the requirement of public dissemination 
does not apply to commercial or financial information which is 
privileged or confidential.
    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 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: [email protected].

    Dated: March 18, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-06151 Filed 3-22-22; 8:45 am]
BILLING CODE 8011-01-P