Rule 3a68-2 (Interpretation of Swaps, Security-Based Swaps, and Mixed Swaps) and Rule 3a68-4(c) (Process for Determining Regulatory Treatment for Mixed Swaps)

Forms and Documents

Document Name	Status
Supporting Statement - Rules 3a68-2 and 3a68-4(c) Final.doc Supporting Statement A	2012-08-10
DFA Provisions.pdf Supplementary Document	2011-05-17

IC Document Collections

IC ID	Document Title	Status
197714	Process for Determining Regulatory Treatment for Mixed Swaps (Rule 3a68-4(c))	Modified
197713	Interpretation of Swaps, Security-Based Swaps, and Mixed Swaps (Rule 3a68-2)	Modified

ICR Details

OMB Control No: 3235-0685	ICR Reference No: 201208-3235-008
Status: Historical Active	Previous ICR Reference No: 201105-3235-004
Agency/Subagency: SEC	Agency Tracking No: TM-270-641
Title: Rule 3a68-2 (Interpretation of Swaps, Security-Based Swaps, and Mixed Swaps) and Rule 3a68-4(c) (Process for Determining Regulatory Treatment for Mixed Swaps)
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/12/2012
	Date Received in OIRA: 08/13/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2015	36 Months From Approved
Responses	33	0	0
Time Burden (Hours)	673	0	0
Cost Burden (Dollars)	424,000	0	0

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Abstract: Rule 3a68-2 creates a process for interested persons to request a joint interpretation by the Securities and Exchange Commission and Commodity Futures Trading Commission regarding whether a particular instrument (or class of instruments) is a swap, a security-based swap, or both (i.e., a mixed swap). Rule 3a68-4(c) establishes a process for persons to request that the Securities and Exchange Commission and Commodity Futures Trading Commission issue a joint order permitting such persons (and any other person or persons that subsequently lists, trades, or clears that class of mixed swap) to comply, as to parallel provisions only, with specified parallel provisions of either the Commodity Exchange Act or the Securities Exchange Act of 1934, and related rules and regulations, instead of being required to comply with parallel provisions of both the CEA and the Securities Exchange Act of 1934. For purposes of rule 3a68-4(c) under the Securities Exchange Act of 1934, "parallel provisions" means comparable provisions of the CEA and the Exchange Act that were added or amended by Title VII of the Dodd-Frank Act with respect to security-based swaps and swaps, and the rules and regulations thereunder.

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Authorizing Statute(s): US Code: 15 USC 77c, 77d, 77g, 77j, 77s, 77z-2 Name of Law: Securities Act of 1933
   US Code: 15 USC 78c, 78d, 78e, 78f, 78g, 78i.. Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 80a-20, 80a-23, 80a-29, 80a-37 Name of Law: Investment Company Act of 1940
   US Code: 15 USC 7201 Name of Law: Sarbanes-Oxley Act of 2002
   US Code: 18 USC 1350 Name of Law: Sarbarnes-Oxley Act of 2002
   US Code: 12 USC 5221(e)(3) Name of Law: Emergency Economic Stabilization Act of 2008
   US Code: 15 USC 80b-3, 80b-4, 80b-11 Name of Law: Investment Advisers Act of 1940
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 712(a)(8), 712(d) Name of Law: Wall Street Transparency and Accountability Act of 2010

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AL14	Final or interim final rulemaking	77 FR 48208	08/13/2012

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 2

IC Title	Form No.	Form Name
Interpretation of Swaps, Security-Based Swaps, and Mixed Swaps (Rule 3a68-2)
Process for Determining Regulatory Treatment for Mixed Swaps (Rule 3a68-4(c))

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	33	0	33	0	0	0
Annual Time Burden (Hours)	673	0	673	0	0	0
Annual Cost Burden (Dollars)	424,000	0	424,000	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: The Costs to Respondents changed from that originally submitted with the Proposing Release, based upon an increase in the estimate of hourly cost of legal fees. In the Paperwork Reduction Act supporting statement for the Proposing Release the SEC estimated hourly cost to be $316 per hour. This estimate of the dollar burden for rules 3a68-2 and 3a68-4(c) under the Exchange Act was based on data from SIFMA's "Management & Professional Earnings in the Securities Industry 2009." See Proposing Release at 29876, note 345. In the Adopting Release the SEC increased the hourly cost to $400 per hour, which is based on an estimate used by the SEC for these services in similar releases. See Exemptions for Security-Based Swaps Issued By Certain Clearing Agencies, Release No. 33-9308 (Mar. 30, 2012), 77 FR 20536 (Apr. 5, 2012). Additionally, the hourly burden for Rule 3a68-4(c) changed solely due to rounding in the Proposing Release submission. In this Adopting Release submission, the SEC is not rounding the number of annual hours.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 08/13/2012

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