Supporting Statement Regulation SBSR Adopting Release - Final - 8-15-16

SUPPORTING STATEMENT
Regulation SBSR – Reporting and Dissemination of Security-Based Swap Information
This submission is being made pursuant to the Paperwork Reduction Act of 1995, 44
U.S.C. Section 3501 et seq.
A.

JUSTIFICATION

1.

Necessity for the Information Collection

On July 21, 2010, the President signed into law the Dodd-Frank Wall Street Reform and
Consumer Protection Act (“Dodd-Frank Act”). 1 The Dodd-Frank Act amended the Exchange
Act to require the Commission to adopt rules providing for, among other things (i) the reporting
of security-based swaps to a registered security-based swap data repository (“SDR”) or to the
Commission; and (ii) real-time public dissemination of security-based swap transaction, volume,
and pricing information. On November 19, 2010, pursuant to Sections 763 and 766 of Title VII
of the Dodd-Frank Act, the Commission proposed Regulation SBSR to fulfill these
requirements. 2 In May 2013, the Commission re-proposed the entirety of Regulation SBSR as
part of the Cross-Border Proposing Release 3 and re-opened the comment period for all of its
other outstanding Title VII rulemakings. 4
After reviewing comments submitted to the Commission, including not only those
comments specifically addressing Regulation SBSR, but also comments addressing cross-border
issues generally, as well as comments germane to regulatory reporting and/or public
dissemination of security-based swaps that were submitted in other contexts, the Commission
adopted Regulation SBSR, with certain revisions suggested by commenters or designed to clarify
the rules (“Regulation SBSR Adopting Release”). 5 In addition, in a separate release, the
Commission proposed certain rules, amendments, and guidance relating to Regulation SBSR
(“Regulation SBSR Proposed Amendments Release”). 6
1

The Dodd-Frank Wall Street Reform and Consumer Protection Act (Pub. L. No. 11-203,
H.R. 4173).

2

Regulation SBSR—Reporting and Dissemination of Security-Based Swap Information,
Securities Exchange Act Release No. 63346 (November 19, 2010), 75 FR 75208
(December 2, 2010) (“Regulation SBSR Proposing Release”).

3

See Securities Exchange Act Release No. 69490 (May 1, 2013), 78 FR 30967 (May 23,
2013) (“Cross-Border Proposing Release”).

4

See Securities Exchange Act Release No. 69491 (May 1, 2013), 78 FR 30799 (May 23,
2013).

5

See Securities Exchange Act Release No. 74244 (February 11, 2015), 80 FR 14563
(March 19, 2015).

6

See Securities Exchange Act Release No. 74245 (February 11, 2015), 80 FR 14739
(March 19, 2015).

Regulation SBSR, as adopted, consists of ten rules, Rules 900 to 909 under the Exchange
Act. Regulation SBSR provides generally for the reporting of security-based swap information
to a registered security-based swap data repository (“registered SDRs”) or the Commission, and
the public dissemination of security-based swap transaction, volume, and pricing information by
registered SDRs. Rule 901 specifies, with respect to each reportable event pertaining to covered
transactions, who is required to report, what data must be reported, when it must be reported,
where it must be reported, and how it must be reported. The Regulation SBSR Proposed
Amendments Release proposed certain new rules and rule amendments to Regulation SBSR.
Specifically, proposed Rule 901(a)(1) of Regulation SBSR would require a platform to report to
a registered security-based swap data repository (“registered SDR”) a security-based swap
executed on such platform that will be submitted to clearing. Proposed Rule 901(a)(2)(i) of
Regulation SBSR would require a registered clearing agency to report to a registered SDR any
security-based swap to which it is a counterparty. The Commission also proposed certain
conforming changes to other provisions of Regulation SBSR in light of the proposed
amendments to Rule 901(a), and a new rule that would prohibit registered SDRs from charging
fees for or imposing usage restrictions on the users of the security-based swap transaction data
that they are required to publicly disseminate.
The Commission, in April 2015, proposed certain additional amendments to Regulation
SBSR to address the application of certain provisions of the Exchange Act to cross-border
security-based swap activities. 7 On July 14, 2016, the Commission adopted the proposed
amendments (“Regulation SBSR Amendments Adopting Release”). 8
2.

Purpose of the Information Collection

The security-based swap information reported pursuant to Regulation SBSR will fulfill
the Congressional mandate that the Commission to provide for, among other things: (i) the
reporting of security-based swaps to a registered SDR or to the Commission; and (ii) real-time
public dissemination of security-based swap transaction, volume, and pricing information. The
reporting pursuant to Regulation SBSR will: provide insight about the size and operation of the
security-based swap market and a benchmark against which to assess the development of the
security-based swap market over time; provide the Commission information to assist with its
analysis of the security-based swap market; be used to assess activities and risks in the securitybased swap market or securities markets more generally; facilitate general market oversight; and
facilitate the reports the Commission is required to provide to Congress on security-based swaps
and the security-based swap marketplace. 9
3.

Role of Improved Information Technology

7

See Securities Exchange Act Release No. 74834 (April 29, 2015), 80 FR 27443 (May 13,
2015) (“U.S. Activity Proposal”).

8

See Securities Exchange Act Release No. 78321 (July 14, 2016), 81 FR 53545 (August
12, 2016).

9

See Section 719 of the Dodd-Frank Act.
2

Regulation SBSR leverages information technology in the collection of information.
Reporting sides, platforms and clearing agencies will electronically report security-based swap
transaction data to registered SDRs and registered SDRs will disseminate transaction data and
corrections electronically. Further, registered SDRs must make their policies and procedures, along
with other information, publicly available on their websites. Regulation SBSR contemplates a
phased-in approach to public dissemination in order to allow market participants sufficient time to
effectively implement necessary technology systems and make necessary technological preparations
for Regulation SBSR. Over time, the Commission expects that the burdens on market participants
will be reduced due to future technology enhancements. The Commission is not aware of any
technical or legal obstacles to reducing the burden through the use of improved information
technology.
4.

Efforts to Identify Duplication

Section 712(a)(2) of the Dodd-Frank Act provides that, before commencing any rulemaking
regarding, among other things, security-based swaps or registered SDRs, the Commission must
consult and coordinate with the Commodity Futures Trading Commission (“CFTC”) and other
prudential regulators for the purposes of assuring regulatory consistency and comparability, to the
extent possible. As a result, the Commission staff and the CFTC staff have consulted and
coordinated with one another regarding their respective Commissions’ rules regarding regulatory
reporting and public dissemination of swaps and security-based swaps. The Commission staff
has also consulted and coordinated with other prudential regulators.
5.

Effect on Small Entities

Not applicable. The amendments to Regulation SBSR will not have a significant
economic impact on a substantial number of small entities.
6.

Consequences of Less Frequent Collection

Collecting the information on a less frequent basis would frustrate the purposes of the
Congressional mandate to provide for regulatory reporting and public dissemination of securitybased swap volume and pricing information on a transaction-by-transaction basis.
7.

Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)

5 CFR 1320.5(d)(2) requires an agency to demonstrate, in its submission for OMB
clearance, that the reporting of information more often than quarterly is necessary to satisfy
statutory requirements or other substantial need. Sections 763 and 766 of the Dodd-Frank Act
amend the Exchange Act to require the Commission to adopt rules providing for, among other
things (i) the reporting of security-based swaps to an SDR or to the Commission; and (ii) realtime public dissemination of security-based swap transaction, volume, and pricing information.
Although the Dodd-Frank Act did not stipulate how often the reporting of security-based swaps
to an SDR or to the Commission must occur, the Dodd-Frank Act did stipulate that real-time
public dissemination must occur “as soon as technologically practicable after the time at which

3

the [SBS] transaction has been executed.” 10 As a result, reporting more often than quarterly is
required by the Dodd-Frank Act.
8.

Consultation Outside the Agency

The Commission has coordinated extensively with the CFTC, other federal financial
regulators, as well as various participants in the swaps industry in formulating Regulation SBSR.
Further, the Commission has consulted with industry participants for many of the collections of
information that will be required by Regulation SBSR and has incorporated what it has learned
as a result of these consultations into its burden estimates.
The Commission has issued multiple releases soliciting comments on the “collection of
information” requirements and associated paperwork burdens. Comments on Commission
releases are generally received from registrants, market participants, and members of the public.
In addition, the Commission and staff participate in ongoing dialogue with representatives of
various market participants through public conferences, meetings, and informal exchanges. Any
comments received on this rulemaking were posted on the Commission’s public website, and
made available through http://www.sec.gov/comments/s7-34-10/s73410.shtml. The Commission
considered all comments received prior to adopting the amendments, in accordance with 5
C.F.R. 1320.11(f).
Although the Commission received numerous comments on the substantive aspects of
Regulation SBSR, it did not receive any comments that specifically address the new collection of
information requirements and associated paperwork burdens.
9.

Payment or Gift

Not applicable.
10.

Confidentiality

Some information collected pursuant to Regulation SBSR will be widely available to the
extent it is information that is required to be publicly disseminated by a registered SDR.
However, registered SDRs are generally under an obligation to maintain the confidentiality of
the other reported information collected pursuant to Rule 901(d), and pursuant to Section
13(n)(5) of the Exchange Act and Rule 13n-9 thereunder. To the extent that the Commission
receives confidential information pursuant to Regulation SBSR, such information will be kept
confidential, subject to the provisions of the Freedom of Information Act.
11.

Sensitive Questions

As discussed above in Item 10, the collection of information will not include Personally

10

See Section 763(i) of the Dodd-Frank Act.
4

Identifiable Information (“PII”). 11
12.

Estimate of Reporting Burden

The total reporting burden for Regulation SBSR, as amended, for all respondents is
approximately 538,258 hours initially, with a total ongoing burden thereafter of approximately
1,887,021 hours. This burden is broken down in greater detail below.
a.

Reporting Obligations
i. Rule 901 – As Previously Adopted
1. Reporting Sides

The Commission previously stated its belief that reporting sides that fall under the
reporting hierarchy in Rule 901(a)(2)(ii) will incur certain burdens as a result thereof with
respect to their reporting of covered transactions. Specifically, the Commission believes that the
requirement to report covered transactions to a registered SDR or to the Commission pursuant to
Rule 901 will impose a one-time burden on each reporting side respondent of approximately 707
burden hours. In the Regulation SBSR Adopting Release, the Commission estimated that 300
reporting sides will be subject to this burden. As a result, the Commission estimated that the
one-time initial reporting obligation burden for all reporting sides will be approximately 212,100
hours, which includes development of an OMS capable of capturing relevant security-based
swap transaction information, implementation of a reporting mechanism, and establishment of an
appropriate compliance program and support for the operation of the OMS and reporting
mechanism. 12 Further, the Commission estimated that the ongoing annualized burden will be
687 burden hours per reporting side, which corresponds to 206,100 burden hours in the
aggregate. 13 The Commission estimated one response per respondent per year, which, including
11

The term “Personally Identifiable Information” refers to information which can be used
to distinguish or trace an individual’s identity, such as their name, social security number,
biometric records, etc. alone, or when combined with other personal or identifying
information which is linked or linkable to a specific individual, such as date and place of
birth, mother’s maiden name, etc.

12

The Commission previously estimated: [(Sr. Programmer (160 hours)) + (Sr. Systems
Analyst (160 hours)) + (Compliance Manager (10 hours)) + (Director of Compliance (5
hours)) + (Compliance Attorney (20 hours)) + (Sr. Programmer (80 hours) + (Sr. Systems
Analyst (80 hours)) + (Compliance Manager (5 hours)) + (Director of Compliance (2
hours)) + (Compliance Attorney (5 hours)) + (Sr. Programmer (100 hours)) + (Sr.
Systems Analyst (40 hours)) + (Compliance Manager (20 hours)) + (Director of
Compliance (10 hours)) + (Compliance Attorney (10 hours))] x (300 reporting sides) =
212,100 hours.

13

The Commission previously estimated: [(Sr. Programmer (32 hours)) + (Sr. Systems
Analyst (32 hours)) + (Compliance Manager (60 hours)) + (Compliance Clerk (240
hours)) + (Director of Compliance (24 hours)) + (Compliance Attorney (48 hours)) +
(Compliance Clerk (16.7 hours)) + (Sr. Computer Operator (16.7 hours)) + (Sr.
5

the one-time burden equally allocated over three years, results in a burden of 922.7 hours per
response. 14 This collection is a third-party disclosure type of collection. 15
2. Registered SDRs
Rules 901(f) and 901(g) require a registered SDR to time-stamp, to the second,
information that it receives and assign a unique transaction ID to each security-based swap it
receives or establish or endorse a methodology for transaction IDs to be assigned by third parties,
respectively. The Commission estimated that 10 entities will register as SDRs and thus be
subject to this burden. The Commission estimated that Rules 901(f) and 901(g) will impose an
initial one-time aggregate burden of 1,200 burden hours, which corresponds to 120 burden hours
per SDR respondent. 16 Further, the Commission estimated that Rules 901(f) and 901(g) will
impose an aggregate ongoing annualized burden of 1,520 burden hours, which corresponds to
152 burden hours per SDR respondent. 17 The Commission estimated two responses per SDR
respondent per year, which, including the one-time burden equally allocated over three years,
results in a burden of 192 hours per respondent per year. 18 This collection is a recordkeeping
type of collection.
ii. Rule 901 – Amendments
On July 14, 2016, the Commission adopted rules, amendments, and guidance relation to
Regulation SBSR. The burdens resulting from these amendments are summarized below.

Programmer (16 hours)) + (Sr. Systems Analyst (16 hours)) + (Compliance Manager (30
hours)) + (Compliance Clerk (120 hours)) + (Director of Compliance (12 hours)) +
(Compliance Attorney (24 hours))] x (300 reporting sides) = 206,100 hours.
14

This figure is based on the following: [((707 hours/3 years) + (687 hours))/ (1 response
per year)] = 922.7 hours.

15

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

16

The Commission previously estimated: (Sr. Programmer (80 hours)) + (Sr. Systems
Analyst (20 hours)) + (Compliance Manager (8 hours)) + (Director of Compliance (4
hours)) + (Compliance Attorney (8 hours)) x (10 registered SDRs) = 1,200 hours.

17

The Commission previously estimated: (Sr. Programmer (60 hours)) + (Sr. Systems
Analyst (48 hours)) + (Compliance Manager (24 hours)) + (Director of Compliance (12
hours)) + (Compliance Attorney (8 hours)) x (10 registered SDRs)] = 1,520 hours.

18

This figure is based on the following: [((120 hours/3 years) + (152 hours))/ (2 responses
per year)] = 96 hours per response or 192 hours per respondent.
6

1. Reporting Sides
Rule 901(a)(3) requires a person, either the platform upon which the security-based swap
was executed or the reporting side for those security-based swaps other than clearing
transactions, to report, for those security-bases swaps submitted to a registered clearing agency,
the transaction ID of the submitted security-based swap and the identity of the registered SDR to
which the transaction will be or has been reported.
The Commission believes that reporting sides (and platforms as discussed below)
required to report transaction IDs and the identity of a registered SDR will already have put into
place any infrastructure needed to report these security-based swaps to a registered clearing
agency. 19 However, the Commission does believe that including these items will result in
additional development and maintenance burdens. Specifically, the Commission believes that
the additional one-time burden related to the development of the ability to capture the additional
specific data elements required by Rule 901(a)(3) will be 10 burden hours and the additional
one-time burden related to the implementation of a reporting mechanism will be 6 burden hours,
per reporting side. 20 The Commission believes that the additional ongoing burden related to the
ability to capture the additional specific data elements required by Rule 901(a)(3) will be 10
burden hours and the additional ongoing burden related to the maintenance of the reporting
mechanism will be 2 burden hours, per reporting side. 21 This collection is a third-party
disclosure type of collection. 22
19

The required infrastructure for platforms and related burdens and costs are discussed in
the Regulation SBSR Amendments Adopting Release. The required infrastructure and
related burdens and costs applicable to reporting sides were already accounted for in the
Regulation SBSR Adopting Release. 80 FR 14675-77. The additional burdens discussed
in this paragraph related to the ability to capture the additional specific data elements, as
required by Rule 901(a)(3), are incremental burdens that are in addition to the previously
established infrastructure burdens and costs.

20

The Commission estimates that the additional burdens would be: [(Sr. Programmer (5
hours) + Sr. Systems Analyst (5 hours)) = 10 burden hours (development of the ability to
capture transaction information); (Sr. Programmer (3 hours) + Sr. Systems Analyst (3
hours)) = 6 burden hours (implementation of reporting mechanism)]. The total one-time
burden associated with the amendments to 901(a) would be 16 burden hours per platform
and reporting side for a total one-time burden of 4,800 hours (16 x 300 reporting sides).

21

The Commission estimates that the additional burdens would be: [(Sr. Programmer (5
hours) + Sr. Systems Analyst (5 hours)) = 10 burden hours (maintenance of transaction
capture system); (Sr. Programmer (1 hour) + Sr. Systems Analyst (1 hour)) = 2 burden
hours (maintenance of reporting mechanism)]. The total ongoing burden associated with
the amendments to Rule 901(a) would be 12 burden hours per platform and reporting side
for a total ongoing burden of 3,600 hours (12 x 300 reporting sides).

22

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
7

2. Reporting Sides – New Respondents
In the U.S. Activity Proposal, the Commission proposed, and has now adopted,
amendments to Rule 901 that assign the duty to report security-based swaps, other than clearing
transactions, when neither side of the security-based swap includes a registered security-based
swap dealer or registered major security-based swap participant when one (or both) side(s) of the
security-based swap is not a U.S. person. The Commission believes that the amendments to Rule
901(a)(2)(ii)(E) will result in an additional 20 respondents that will be required to report
transactions under the amendments to Regulation SBSR that are not already required to report
under Regulation SBSR. 23
The Commission estimates that the amendments will result in approximately 2,700
additional reportable events per year under Rule 901. Taking a similar approach to the
Regulation SBSR Adopting Release but also accounting for security-based swaps that will be
reported by a registered broker-dealer, the Commission estimates that, of the 2,700 new
reportable events, 1,512 will involve the reporting of new security-based swap transactions and
approximately 1,188 will involve the reporting of life cycle events under Rule 901(e). 24 Based
on these estimates, the Commission believes that Rule 901(a) will result in respondents having a
total initial burden of 7.6 hours attributable to the initial reporting of security-based swaps by
respondents to registered SDRs under Rules 901(c) and 901(d) over the course of a year. 25 The
Commission further estimates that respondents will have a total burden of 5.9 hours attributable
to the reporting of life cycle events under Rule 901(e) over the course of a year. 26 Therefore, the
Commission believes that the amendments to Regulation SBSR will result in a total reporting
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.
23

In the U.S. Activity Proposal, the Commission estimated that there would be 120 new
respondents will be made up of 90 persons and approximates 30 registered broker-dealers
(including registered SB SEFs). This estimate has been revised to include only 20 new
respondents.

24

Under this assumption, we expect 540 reportable events (2,700 * 0.2) to be new securitybased swap transactions reported by registered broker-dealers, and 972 reportable events
to be other new security-based swap transactions that are required to be reported under
the rule ((2,700 - 540) * 0.45), for a total of 1,512 reportable events that are new securitybased swap transactions. The remaining 1,188 reportable events ((2,700 - 540) * 0.55)
would be life-cycle events reportable under rule 901(e).

25

In the Regulation SBSR Amendments Adopting Release, the Commission calculated the
following: ((1,512* 0.005) / (20 respondents)) = 0.36 burden hours per respondent or 7.6
total burden hours attributable to the initial reporting of security-based swaps.

26

In the Regulation SBSR Amendments Adopting Release, the Commission calculated the
following: ((1,188 * 0.005) / (20 respondents)) = 0.30 burden hours per reporting side or
5.9 total burden hours attributable to the reporting of life cycle events.
8

burden for respondents under Rules 901(c) and (d) along with the reporting of life cycle events
under Rule 901(e) of 6 burden hours per year. The Commission continues to believe that many
reportable events will be reported through electronic means and that the ratio of electronic
reporting to manual reporting is likely to increase over time. The Commission expects
respondents that capture and report transactions electronically will likely incur fewer burden
hours than those respondents that capture and report transactions manually.
The Commission estimates that Rule 901 will impose an estimated total first-year burden
of approximately 1,362 hours 27 per respondent that will incur the duty to report as a result of the
amendments to Rule 901(a)(2)(ii)(E)(I)-(IV). The Commission further estimates that Rule 901
will impose an initial annualized burden of approximately 235.67 hours 28 per respondent and an
ongoing annualized aggregate burden of approximately 654.67 hours 29 per respondent resulting
in a total approximate aggregate annualized burden of 17,806.5 hours for all respondents. 30 This
collection is a third-party disclosure type of collection. 31
3. Registered SDRs
The Commission does not believe that the amendments will result in any additional
burdens being placed upon registered SDRs.
4. Platforms
27

We derived our estimate from the following: (355 hours (one-time hourly burden for
establishing an OMS) + 172 hours (one-time hourly burden for establishing securitybased swap reporting mechanisms) + 180 hours (one-time hourly burden for compliance
and ongoing support) = 707 hours (one-time total hourly burden). (436 hours (annualongoing hourly burden for internal order management) + .66 hours (revised annualongoing hourly burden for security-based swap reporting mechanisms) + 218 hours
(annual-ongoing hourly burden for compliance and ongoing support) = 654.66 hours
(annual-ongoing hourly burden. (707 one-time hourly burden + 654.66 revised annualongoing hourly burden = 1,361.66 total first-year hourly burden).

28

We derived our estimate from the following: (Y1: 707 hours per respondent; Y2: 0 hours
per respondent; Y3: 0 hours per respondent) = 707 hours / 3 years = 235.67 hours per
year.

29

See Regulation SBSR Amendments Adopting Release.

30

We derived our estimate from the following: ((707 hours / 3 years = 235.67) + (654 +
.30 +.36 = 654.66) = 890.33 hours per respondent * 20 respondents) = 17,806.5 hours.

31

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.
9

The Commission has adopted certain reporting obligations for those security-based swaps
that are clearing transactions (discussed in greater detail below) or that are executed on a
platform and will be submitted to clearing. In order to facilitate such reporting, the Commission
adopted Rules 901(a)(1) and 901(a)(3). Pursuant to new subparagraph (1) of Rule 901(a), if a
security-based swap is executed on a platform and will be submitted to clearing, the platform on
which the transaction was executed shall have the duty to report the transaction to a registered
SDR.
The Commission believes that these amendments to Rule 901(a) will result in 14
additional respondents incurring the duty to report under Regulation SBSR. Specifically, the
Commission believes that there will be 10 platforms (exchanges and SB SEFs) and 4 registered
clearing agencies (discussed below) that will incur such duties. Rule 901(a)(3) will require a
person—either the platform upon which the security-based swap was executed or the reporting
side for those security-based swaps other than clearing transactions—to report, for those
security-bases swaps submitted to a registered clearing agency, the transaction ID of the
submitted security-based swap and the identity of the registered SDR to which the transaction
will be or has been reported. The Commission believes that Rule 901(a)(3) will place reporting
obligations on 10 platforms.
The Commission previously stated its belief that reporting sides that fall under the
reporting hierarchy in Rule 901(a)(2)(ii) will incur certain burdens as a result thereof with
respect to their reporting of covered transactions. The Commission believes that platforms will
face the same categories of burdens as those identified in the Regulation SBSR Adopting Release
for other types of respondents. However, in addition to the burden of development of an OMS
capable of capturing relevant security-based swap transaction information, implementation of a
reporting mechanism, and establishment of an appropriate compliance program and support for
the operation of the OMS and reporting mechanism, platforms will also have the added burden of
reporting a larger number of transactions, including the Rule 901(a) requirements relating to the
reporting of clearing information.
The Commission revised its previous estimates of the number of reportable events
associated with security-based swap transactions to approximately 3 million reportable events
per year under Rule 901, an estimate that the Commission continues to believe is valid for the
purposes of the amendments. 32 The Commission estimated in the Regulation SBSR Adopting
Release that Rule 901(a) will result in approximately 2 million reportable events related to
covered transactions. 33 The Commission estimates that 1 million of the 3 million total reportable
events will be reported as a result of the amendments to Rule 901. 34 The Commission believes
32

See Regulation SBSR Amendments Adopting Release.

33

See id.

34

In arriving at the of 1 million reporting events, the Commission has included the
following: (1) the termination of the original or “alpha” security-based swap; (2) the
creation of beta and gamma security-based swaps; (3) the termination of beta, gamma,
and any previous open positions during each netting cycle; and (4) any other transactions
that are entered into by the registered clearing agency.
10

that these 1 million reportable events will include the initial reporting of the security-based swap
by platforms and clearing agencies as well as the reporting of any life cycle events. The
Commission estimates that of the 1 million reportable events, approximately 370,000 will
involve the reporting of new security-based swap transactions, and approximately 630,000 will
involve the reporting of life cycle events under Rule 901(e). 35 As a result, the Commission
estimates that platforms will be responsible for the reporting of approximately 120,000 securitybased swaps. 36 The Commission estimates that the amendments to Rule 901(a) will result in
platforms having a total burden of 600 hours attributable to the reporting of security-based swaps
to registered SDRs under Rules 901(c) and 901(d) over the course of a year. 37 The Commission
believes that all reportable events that will be reported by platforms pursuant to the amendments
will be reported through electronic means.
The Commission recognizes that some entities that will qualify as platforms may have
already spent time and resources building the infrastructure that will support their eventual
reporting of security-based swaps. The Commission notes that, as a result, the burdens and costs
estimated herein could be greater than those actually incurred by affected parties as a result of
compliance with the amendments to Rule 901(a). Nonetheless, the Commission believes that its
estimates represent a reasonable upper bound of the actual burdens and costs required to comply
with the paperwork burdens associated with the amendments to Rule 901(a).
Additionally, Rule 901(a)(3) will require a platform upon which the security-based swap
was executed, to report, for those security-bases swaps submitted to a registered clearing agency,
the transaction ID of the submitted security-based swap and the identity of the registered SDR to
which the transaction will be or has been reported. As a result, platforms will already have put
into place any infrastructure needed to report these security-based swaps to a registered clearing
agency. 38 However, the Commission does believe that including the additional reportable items
35

See Regulation SBSR Amendments Adopting Release.

36

The Commission believes that platforms will be responsible only for the reporting of any
initial security-based swaps that are executed on their facilities. Since only platformexecuted security-based swaps that will be submitted to a registered clearing agency for
clearing are subject to this proposal, platforms would not be responsible for any life cycle
event reporting under Rule 901(e). The Commission estimates that platforms will be
responsible for reporting only approximately one third of the 360,000 security-based
swaps (or 120,000 security-based swaps) and registered clearing agencies (as a result of
the creation of new security-based swaps during the clearing process) would be
responsible for the reporting of the remaining two-thirds of security-based swaps (or
250,000 security-based swaps).

37

See Regulation SBSR Amendments Adopting Release. The Commission estimated that it
would take approximately 0.005 hours for each security-based swap transaction to be
reported. The Commission calculates the following: ((120,000 x 0.005) / (10 platforms))
= 60 burden hours per platform or 600 total burden hours attributable to the reporting of
security-based swaps.

38

The required infrastructure for platforms and related burdens and costs are discussed in
the Regulation SBSR Amendments Adopting Release. The required infrastructure and
11

will result in additional development and maintenance burdens. Specifically, the Commission
believes that the additional one-time burden related to the development of the ability to capture
the additional specific data elements required by Rule 901(a)(3) will be 10 burden hours and the
additional one-time burden related to the implementation of a reporting mechanism will be 6
burden hours, per platform and reporting side. 39 The Commission believes that the additional
ongoing burden related to the ability to capture the additional specific data elements required by
Rule 901(a)(3) will be 10 burden hours and the additional ongoing burden related to the
maintenance of the reporting mechanism will be 2 burden hours, per platform. 40
The Commission previously stated its belief that reporting sides that fall under the
reporting hierarchy in Rule 901(a)(2)(ii) will incur certain burdens as a result thereof with
respect to their reporting of covered transactions. The Commission believes that platforms will
face the same categories of burdens as those identified in the Regulation SBSR Adopting Release
for other types of respondents. The Commission estimated that the total burden placed upon
reporting sides as a result of Rule 901 will be approximately 1,361 hours 41 per reporting side
during the first year. 42 The Commission believes that the per-entity burden for platforms will be
related burdens and costs for reporting side were already accounted for in the Regulation
SBSR Adopting Release. 80 FR 14675-77. The additional burdens discussed in this
paragraph related to the ability to capture the additional specific data elements, as
required by Rule 901(a)(3), will be incremental burdens that are in addition to the
previously established infrastructure burdens and costs.
39

The Commission estimates that the additional burdens will be: [(Sr. Programmer (5
hours) + Sr. Systems Analyst (5 hours)) = 10 burden hours (development of the ability to
capture transaction information); (Sr. Programmer (3 hours) + Sr. Systems Analyst (3
hours)) = 6 burden hours (implementation of reporting mechanism)]. The total one-time
burden associated with the amendments to 901(a) would be 16 burden hours per platform
and reporting side for a total one-time burden of 160 hours (16 x 10 platforms).

40

The Commission estimates that the additional burdens would be: [(Sr. Programmer (5
hours) + Sr. Systems Analyst (5 hours)) = 10 burden hours (maintenance of transaction
capture system); (Sr. Programmer (1 hour) + Sr. Systems Analyst (1 hour)) = 2 burden
hours (maintenance of reporting mechanism)]. The total ongoing burden associated with
the amendments to Rule 901(a) would be 12 burden hours per platform and reporting side
for a total ongoing burden of 120 hours (12 x 10 platforms).

41

The Commission derived its estimate from the following: (355 hours (one-time hourly
burden for establishing and OMS) + 172 hours (one-time hourly burden for establishing
security-based swap reporting mechanisms) + 180 hours (one-time hourly burden for
compliance and ongoing support) = 707 hours (one-time total hourly burden). (436 hours
(annual-ongoing hourly burden for order management) + 218 hours (annual-ongoing
hourly burden for compliance and ongoing support) = 654 hours (annual ongoing hourly
burden). (707 one-time hourly burden + 654 revised annual-ongoing hourly burden =
1,361 total first-year hourly burden). See Regulation SBSR Amendments Adopting
Release.

42

See Regulation SBSR Amendments Adopting Release.
12

similar in composition. However, taking into account the additional burdens resulting from the
amendments to Rule 901, the total first year burden will be 1,449 hours, 43 resulting in a total
first-year burden of 14,490 hours for all platforms under the amendments to Rule 901, 44 which
includes development of an OMS capable of capturing relevant security-based swap transaction
information, implementation of a reporting mechanism, and establishment of an appropriate
compliance program and support for the operation of the OMS and reporting mechanism. 45 The
Commission estimates that the amendments to Rule 901 will impose ongoing annualized
aggregate burdens of approximately 726 hours 46 per platform for a total aggregate annualized
cost of 7,260 hours for all platforms. 47 The Commission estimated one response per respondent
per year, which, including the one-time burden equally allocated over three years, results in a
burden of 967 hours per response 48 and a total aggregate annualized burden of 9,670 hours for all

43

The Commission derived its estimate from the following: (355 hours (one-time hourly
burden for establishing and OMS) + 172 hours (one-time hourly burden for establishing
security-based swap reporting mechanisms) + 180 hours (one-time hourly burden for
compliance and ongoing support) + 16 hours (additional hourly burden resulting from
establishing ability to report information related to clearing) = 723 hours (one-time total
hourly burden). (436 hours (annual-ongoing hourly burden for order management) + 218
hours (annual-ongoing hourly burden for compliance and ongoing support) + 60 hours
(annual-ongoing burden of reporting security-based swap transaction information) + 12
hours (annual-ongoing hourly burden of reporting security-based swap transaction
information related to clearing) = 726 hours (annual-ongoing hourly burden). (723 onetime hourly burden + 726 revised annual-ongoing hourly burden = 1,449 total first-year
hourly burden). See Regulation SBSR Amendments Adopting Release.

44

The Commission derived its estimate from the following: (1,449 hours per reporting
entity x 10 platforms) = 14,490 hours.

45

The Commission estimates: (355 hours (one-time hourly burden for establishing and
OMS) + 172 hours (one-time hourly burden for establishing security-based swap
reporting mechanisms) + 180 hours (one-time hourly burden for compliance and ongoing
support) + 16 hours (additional hourly burden resulting from establishing ability to report
information related to clearing) = 723 hours (one-time total hourly burden) See
Regulation SBSR Amendments Adopting Release.

46

The Commission estimates: (436 hours (annual-ongoing hourly burden for order
management) + 218 hours (annual-ongoing hourly burden for compliance and ongoing
support) + 60 hours (annual-ongoing burden of reporting security-based swap transaction
information) + 12 hours (annual-ongoing hourly burden of reporting security-based swap
transaction information related to clearing) = 726 hours (annual-ongoing hourly burden).
See Regulation SBSR Amendments Adopting Release.

47

The Commission derived its estimate from the following: (726 hours per reporting entity
x 10 platforms) = 7,260 hours.

48

This figure is based on the following: [((723 hours/3 years) + (726 hours))/ (1 response
per year)] = 967 hours.
13

respondents. 49 This collection is a third-party disclosure type of collection. 50
5. Registered Clearing Agencies
The Commission has adopted certain reporting obligations for those security-based swaps
that are clearing transactions or are executed on a platform (discussed in greater detail above)
and will be submitted to clearing. In order to facilitate such reporting, the Commission adopted
new subparagraph (2)(i) of Rule 901(a) that assigns the reporting duty for a clearing transaction
to the registered clearing agency that is a counterparty to the security-based swap.
As stated above, the Commission believes that the amendments to Rule 901(a) will result
in 14 additional respondents incurring the duty to report under Regulation SBSR, including four
registered clearing agencies. The Commission believes that clearing agencies will face the same
categories of burdens as those identified in the Regulation SBSR Adopting Release for other
types of respondents. In addition, registered clearing agencies will also have the added burden of
reporting a larger number of transactions.
As discussed above, the Commission revised its previous estimates of the number of
reportable events associated with security-based swap transactions to approximately 3 million
reportable events per year under Rule 901, an estimate that the Commission continues to believe
is valid for the purposes of the amendments. 51 The Commission continues to believe that 1
million of the 3 million total reportable events will be reported as a result of the amendments to
Rule 901. 52 The Commission estimates that of the 1 million reportable events, approximately
370,000 will involve the reporting of new security-based swap transactions, and approximately
630,000 will involve the reporting of life cycle events under Rule 901(e). 53 The Commission
estimates that the amendments to Rule 901(a) will result in registered clearing agencies having a
total burden of 1,250 hours attributable to the reporting of security-based swaps to registered
49

We derived our estimate from the following: (967 hours per respondent * 120
respondents) = 9,670 hours.

50

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

51

See Regulation SBSR Amendments Adopting Release.

52

In arriving at the of 1 million reporting events, the Commission has included the
following: (1) the termination of the original or “alpha” security-based swap; (2) the
creation of beta and gamma security-based swaps; (3) the termination of beta, gamma,
and any previous open positions during each netting cycle; and (4) any other transactions
that are entered into by the registered clearing agency.

53

See Regulation SBSR Amendments Adopting Release.
14

SDRs over the course of a year. 54 The Commission estimates that the amendments to Rule
901(a) will result in registered clearing agencies having a total burden of 3,150 hours attributable
to the reporting of life cycle events to registered SDRs under Rule 901(e) over the course of a
year. 55 The Commission believes that the amendments will result in a total reporting burden for
registered clearing agencies under Rules 901(c) and (d) along with the reporting of life cycle
events under Rule 901(e) of 4,400 burden hours or 1,100 hours per registered clearing agency. 56
The Commission believes that all reportable events that will be reported by registered clearing
agencies pursuant to these amendments will be reported through electronic means.
The Commission recognizes that some entities that will qualify as registered clearing
agencies may have already spent time and resources building the infrastructure that will support
their eventual reporting of security-based swaps. The Commission notes that, as a result, the
burdens and costs estimated herein could be greater than those actually incurred by affected
parties as a result of compliance with the amendments to Rule 901(a). Nonetheless, the
Commission continues to believe that its estimates represent a reasonable upper bound of the
actual burdens and costs required to comply with the paperwork burdens associated with the
amendments to Rule 901(a).
The Commission previously stated its belief that reporting sides that fall under the
reporting hierarchy in Rule 901(a)(2)(ii) will incur certain burdens as a result thereof with
respect to their reporting of covered transactions. The Commission continues to believe that
registered clearing agencies will face the same categories of burdens as those identified in the
Regulation SBSR Adopting Release for other types of respondents. The Commission estimated
that the total burden placed upon reporting sides as a result of Rule 901 would be approximately
1,361 hours 57 per reporting side during the first year. 58 The Commission believes that the per54

See Regulation SBSR Amendments Adopting Release. The Commission estimated that it
would take approximately 0.005 hours for each security-based swap transaction to be
reported. The Commission calculates the following: ((250,000 x 0.005) / (4 registered
clearing agencies)) = 312.5 burden hours per registered clearing agency or 1,250 total
burden hours attributable to the reporting of security-based swaps.

55

See Regulation SBSR Amendments Adopting Release. The Commission estimated that it
would take approximately 0.005 hours for each security-based swap transaction to be
reported. The Commission calculates the following: ((630,000 x 0.005) / (4 registered
clearing agencies)) = 787.5 burden hours per registered clearing agency or 3,150 total
burden hours attributable to the reporting of life cycle events under Rule 901(e).

56

As is discussed immediately above, the Commission believes that registered clearing
agencies will incur a burden of 1,250 hours attributable to the reporting of security-based
swaps pursuant to Rule 901(a)(2)(i) along with a burden of 3,150 hours attributable to the
reporting of life cycle events under Rule 901(e). Platforms will not be responsible for the
reporting of any life cycle events of any platform-executed security-based swap that will
be submitted to clearing. 4,400 burden hours / 4 registered clearing agencies = 1,100
hours per registered clearing agency.

57

The Commission derived its estimate from the following: (355 hours (one-time hourly
burden for establishing and OMS) + 172 hours (one-time hourly burden for establishing
15

entity burden for registered clearing agencies will be similar in composition. However, taking
into account the additional burdens resulting from amendments to Rule 901, the total first year
burden will be 2,461 hours, 59 resulting in a total first-year burden of 9,844 hours for all
registered clearing agencies under the amendments to Rule 901, 60 which includes development
of an OMS capable of capturing relevant security-based swap transaction information,
implementation of a reporting mechanism, and establishment of an appropriate compliance
program and support for the operation of the OMS and reporting mechanism. The Commission
believes that the amendments to Rule 901 will impose ongoing annualized aggregate burdens of
approximately 1,754 hours 61 per reporting entity for a total aggregate annualized cost of 6,916
hours for all registered clearing agencies. 62 The Commission estimated one response per
respondent per year, which, including the one-time burden equally allocated over three years,
results in a burden of 1,989.7 hours per response. 63 This collection is a third-party disclosure

security-based swap reporting mechanisms) + 180 hours (one-time hourly burden for
compliance and ongoing support) = 707 hours (one-time total hourly burden). (436 hours
(annual-ongoing hourly burden for order management) + 218 hours (annual-ongoing
hourly burden for compliance and ongoing support) = 654 hours (one-time total hourly
burden. (707 one-time hourly burden + 654 revised annual-ongoing hourly burden =
1,361 total first-year hourly burden). See Regulation SBSR Amendments Adopting
Release.
58

See Regulation SBSR Amendments Adopting Release.

59

The Commission derived its estimate from the following: (355 hours (one-time hourly
burden for establishing and OMS) + 172 hours (one-time hourly burden for establishing
security-based swap reporting mechanisms) + 180 hours (one-time hourly burden for
compliance and ongoing support) = 707 hours (one-time total hourly burden). (436 hours
(annual-ongoing hourly burden for order management) + 218 hours (annual-ongoing
hourly burden for compliance and ongoing support) + 1,100 hours (annual-ongoing
burden of reporting security-based swap transaction information) = 1,754 hours (annualongoing hourly burden). (707 one-time hourly burden + 1,754 revised annual-ongoing
hourly burden = 2,461 total first-year hourly burden). See Regulation SBSR
Amendments Adopting Release.

60

The Commission derived its estimate from the following: (2,461 hours per reporting
entity x 4 registered clearing agencies) = 9,844 hours.

61

The Commission estimates: (436 hours (annual-ongoing hourly burden for order
management) + 218 hours (annual-ongoing hourly burden for compliance and ongoing
support) + 1,100 hours (annual-ongoing burden of reporting security-based swap
transaction information) = 1,754 hours (annual-ongoing hourly burden)

62

The Commission derived its estimate from the following: (1,754 hours per reporting
entity x 4 registered clearing agencies) = 6,916 hours.

63

This figure is based on the following: [((707 hours/3 years) + (1,754 hours))/ (1 response
per year)] = 1,989.7 hours.
16

type of collection. 64
iii. Rule 901 – Aggregate Burdens
1. Reporting Sides
In summary, the Commission estimates that each reporting side will have an aggregate
one-time burden of approximately 723 burden hours, taking into account those burdens
previously adopted along with burdens resulting from the amendments, which corresponds to
216,900 burden hours for all 300 reporting sides. 65 Furthermore, the Commission estimates that
each reporting side will have an aggregate ongoing annual burden of approximately 699 burden
hours, taking into account those burdens previously adopted along with burdens resulting from
the amendments, which corresponds to 209,700 burden hours for all 300 reporting sides. 66 The
Commission estimates one response per respondent per year, which, including the one-time
burden equally allocated over three years, results in a burden of 940 hours per response. 67 This
collection is a third-party disclosure type of collection. 68
2. Reporting Sides – New Respondents
In summary, the Commission estimates that each new respondent will have an aggregate
one-time burden of approximately 707 burden hours, taking into account those burdens
previously adopted along with burdens resulting from the amendments, which corresponds to
14,140 burden hours for all 20 new respondents. 69 Furthermore, the Commission estimates that
each new respondent will have an aggregate ongoing annual burden of approximately 654.7
64

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

65

This figure is based on the following: (723 hours * 300 reporting sides) = 216,900 hours.

66

This figure is based on the following: (699 hours * 300 reporting sides) = 229,700 hours.

67

This figure is based on the following: [((723 hours/3 years) + (699 hours))/ (1 response
per year)] = 940 hours.

68

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

69

This figure is based on the following: (707 hours * 20 respondents) = 14,140 hours.
17

burden hours, taking into account those burdens previously adopted along with burdens resulting
from the amendments, which corresponds to 13,093 burden hours for all 20 new respondents. 70
The Commission estimates one response per respondent per year, which, including the one-time
burden equally allocated over three years, results in a burden of 890.33 hours per response. 71
This collection is a third-party disclosure type of collection. 72
3. Registered SDRs
Because the Commission does not believe that the amendments will have any impact on
the burdens of SDRs, the Commission believes that the burdens, as previously adopted, are still
applicable. Therefore, the Commission continues to believe that Rules 901(f) and 901(g) will
impose an initial one-time aggregate burden of 1,200 burden hours, which corresponds to 120
burden hours per SDR respondent. Further, the Commission continues to believe that Rules
901(f) and 901(g) will impose an aggregate ongoing annualized burden of 1,520 burden hours,
which corresponds to 152 burden hours per SDR respondent. The Commission estimated two
responses per SDR respondent per year, which, including the one-time burden equally allocated
over three years, results in a burden of 192 hours per respondent per year. 73 This collection is a
recordkeeping type of collection.
4. Platforms
In summary, the Commission estimates that the initial one-time burden will be 723 hours,
resulting in a total initial one-time burden of 7,230 hours for all platforms under the amendments
to Rule 901. 74 The Commission estimates that the amendments to Rule 901 will impose ongoing
annualized aggregate burdens of approximately 726 hours per reporting entity for a total
aggregate annualized cost of 7,260 hours for all platforms. 75 The Commission estimated one
response per respondent per year, which, including the one-time burden equally allocated over
70

This figure is based on the following: (654.7 hours * 20 respondents) = 13,094 hours.

71

This figure is based on the following: [((707 hours/3 years) + (654.7 hours))/ (1 response
per year)] = 890.33 hours.

72

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

73

This figure is based on the following: [((120 hours/3 years) + (152 hours))/ (2 responses
per year)] = 96 hours per response or 192 hours per respondent.

74

The Commission derived its estimate from the following: (723 hours per reporting entity
x 10 platforms) = 7,230 hours.

75

The Commission derived its estimate from the following: (726 hours per reporting entity
x 10 platforms) = 7,260 hours.
18

three years, results in a burden of 967 hours per response. 76 This collection is a third-party
disclosure type of collection. 77
5. Registered Clearing Agencies
In summary, the Commission estimates that the initial one-time burden will be 707 hours,
resulting in a total initial one-time burden of 2,828 hours for all registered clearing agencies
under the amendments to Rule 901. 78 The Commission further estimates that the amendments to
Rule 901 will impose ongoing annualized aggregate burdens of approximately 1,754 hours per
reporting entity for a total aggregate annualized cost of 6,916 hours for all registered clearing
agencies. 79 The Commission estimated one response per respondent per year, which, including
the one-time burden equally allocated over three years, results in a burden of 1,989.67 hours per
response. 80 This collection is a third-party disclosure type of collection. 81
b.

Public Dissemination of Transaction Report
i. Rule 902 – As Previously Adopted

As previously adopted, Rule 902 requires a registered SDR to publicly disseminate a
transaction report immediately upon receipt of information about a security-based swap, or a life
cycle event to adjustment due to a life cycle event (or upon re-opening following a period when
76

This figure is based on the following: [((723 hours/3 years) + (726 hours))/ (1 response
per year)] = 967 hours.

77

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.

78

The Commission derived its estimate from the following: (2,461 hours per reporting
entity x 4 registered clearing agencies) = 9,844 hours.

79

The Commission derived its estimate from the following: (1,754 hours per reporting
entity x 4 registered clearing agencies) = 6,916 hours.

80

This figure is based on the following: [((707 hours/3 years) + (1,754 hours))/ (1 response
per year)] = 1,989.67 hours.

81

Although Rule 901(b) provides that, if there is no registered SDR that will accept
information pertaining to a security-based swap, reporting sides should report to the
Commission, we expect the reporting burden pursuant to this provision will be minimal
or even zero as registered SDRs should be operational prior to effectiveness of
Regulation SBSR. Accordingly, we have assumed that all burden hours associated with
this collection will be attributable to a third-party disclosure type, rather than a reporting
type, of collection.
19

the registered SDR was closed), except in certain limited circumstances described in Rule
902(c). 82 A published transaction report must consist of all of the information reported pursuant
to Rule 901(c), plus any condition flags required by the policies and procedures of the registered
SDR to which the transaction is reported. The Commission estimated that 10 entities will be
subject to this burden. The Commission estimated that the initial one-time aggregate burden for
the development and implementation of systems necessary to comply with Rule 902 will be
84,000 burden hours, which corresponds to 8,400 burden hours per SDR respondent. Further,
the Commission estimated that the public dissemination requirements will impose an aggregate
ongoing annualized burden of 50,400 burden hours, which corresponds to 5,040 burden hours
per SDR respondent. The Commission estimated that each registered SDR will have to build the
infrastructure only once and will have to update such infrastructure each year. As a result, the
Commission estimates one response per SDR per year (representing the annual upkeep of the
public dissemination system), which, including the one-time hourly burden equally allocated
over three years, results in an hourly burden of 7,840 hours per respondent. 83 This collection is a
third-party disclosure type of collection.
ii. Rule 902 – Amendments
On July 14, 2016, the Commission adopted rules, amendments, and guidance relation to
Regulation SBSR. The burdens resulting from these proposals are summarized below. The
Commission does not believe that the amendments result in any additional burdens being placed
upon SDRs.
iii. Rule 902 – Aggregate Burdens
Because the Commission does not believe that the amendments will have any impact on
the burdens of SDRs, the Commission believes that the burdens, as previously adopted, are still
applicable. The Commission continues to believe that the initial one-time aggregate burden for
the development and implementation of systems necessary to comply with Rule 902 will be
84,000 burden hours, which corresponds to 8,400 burden hours per SDR respondent. Further,
the Commission continues to believe that the public dissemination requirements will impose an
aggregate ongoing annualized burden of 50,400 burden hours, which corresponds to 5,040
burden hours per SDR respondent. The Commission continues to believe that each registered
SDR will have to build the infrastructure only once and will have to update such infrastructure
each year. As a result, the Commission continues to estimate that there will be one response per
SDR per year (representing the annual upkeep of the public dissemination system), which,
including the one-time hourly burden equally allocated over three years, results in an hourly
burden of 7,840 hours per respondent. 84 This collection is a third-party disclosure type of
82

The Commission notes that reporting side respondents incur no duties of dissemination
under Rule 902. All duties of dissemination apply only to registered SDRs.

83

This figure is based on the following: [(8,400 hours/3 years) + (5,040 hours)] = 7,840
hours per respondent.

84

This figure is based on the following: [(8,400 hours/3 years) + (5,040 hours)] = 7,840
hours per respondent.
20

collection.
c.

Coded Information
i.

Rule 903 – Participants

The burdens associated with Rule 903 of Regulation SBSR remain unchanged from the
burdens contained in the Regulation SBSR Adopting Release. Rule 903(a) continues to provide
that, if an internationally recognized standards-setting system (“IRSS”) that meets certain criteria
is recognized by the Commission and has assigned a unique identification code (“UIC”) to a
person, unit of a person, or product (or has endorsed a methodology for assigning transaction
IDs), all registered SDRs must use that UIC in carrying out their responsibilities under
Regulation SBSR. If no such system has been recognized by the Commission, or if such a
system has not assigned a UIC to a particular person, unit of a person, or product (or has not
endorsed a methodology for assigning transaction IDs), the registered SDR must assign a UIC to
that person, unit of a person, or product using its own methodology (or endorse a methodology
for assigning transaction IDs). In the Regulation SBSR Adopting Release, the Commission
recognized the Global LEI System (“GLEIS”) as an IRSS that meets the criteria of Rule 903.
The GLEIS issues UICs for legal entities, known as “legal entity identifiers” or “LEIs.”
Therefore, if an entity has an LEI issued by or through the GLEIS, that LEI must be used for all
purposes under Regulation SBSR. In conjunction with the Commission’s recognition of the
GLEIS, Rule 903 requires all persons who are participants of at least one registered SDR to
obtain an LEI from or through the GLEIS for use under Regulation SBSR. Furthermore, each
participant that acts as a guarantor of a direct counterparty’s performance of any obligation under
a security-based swap that is subject to Rule 908(a) shall, if the direct counterparty has not
already done so, obtain a UIC for identifying the direct counterparty from or through that system,
if that system permits third-party registration without a requirement to obtain prior permission of
the direct counterparty.
Rule 903 applies to any person who is a participant of at least one registered SDR. The
Commission estimates that there may be up to 4,800 security-based swap counterparties that are
participants of one or more registered SDRs. As stated in the Regulation SBSR Adopting
Release, the Commission believes that no fewer than 3,500 of approximately 4,800 accounts that
participated in the market for single-name CDS in 2013 currently have LEIs. Consequently, the
Commission estimated that, for purposes of the PRA, there may be as many as 1,300 participant
respondents who do not already have a GLEIS LEI and who will be required to obtain one and as
many as 4,800 participants who will need to maintain a GLEIS LEI. The Commission estimated
that first-year aggregate burden imposed by Rule 903 will be 1,300 hours, which corresponds to
1 hour per participant, to account for the initial burdens of obtaining an LEI. 85 The Commission
estimated that the ongoing burden imposed by Rule 903 will be 4,800 hours, which corresponds
to 1 hour per participant, to account for ongoing administration of the LEI. 86 In addition, for
85

This figure is based on the following: [Compliance Attorney at 1 hour/year) x (1,300
participants)] = 1,300 burden hours.

86

This figure is based on the following: [(Compliance Attorney at 1 hour/year) x (4,800
participants)] = 4,800 burden hours. The Commission notes that for the 1,300
21

these participants, the assignment of an LEI will entail both one-time and ongoing costs assessed
by local operation units (“LOUs”) of the GLEIS. This collection is a third-party disclosure type
of collection.
d.

Operating Hours of Registered SDRs

The burdens associated with Rule 904 of Regulation SBSR remain unchanged from those
burdens contained in the Regulation SBSR Adopting Release.
Rule 904 requires a registered SDR to operate continuously, subject to two exceptions.
First, under Rule 904(a), a registered SDR may establish normal closing hours during periods
when, in its estimation, the U.S. market and major foreign markets are inactive. Second, under
Rule 904(b), a registered SDR may declare, on an ad hoc basis, special closing hours to perform
system maintenance that cannot wait until normal closing hours. Rule 904(c) specifies
requirements for handling and disseminating reported data during a registered SDR’s normal and
special closing hours. Pursuant to Rule 904(d), immediately upon system re-opening, the
registered SDR is required to publicly disseminate any transaction data required to be reported
under Rule 901(c) that it received and held in queue. Pursuant to Rule 904(e), if a registered
SDR cannot hold in queue transaction data to be reported, immediately upon re-opening the SDR
is required to send a message to all participants that it has resumed normal operations. The
Commission estimates that 10 entities will be subject to this burden. The Commission estimates
that the requirements to notify participants and the public of closing hours and system
availability will impose an aggregate ongoing annualized burden of 360 burden hours, which
corresponds to 36 burden hours per SDR respondent. The Commission estimates 12 responses
per respondent per year, resulting in a burden of 3 hours per response. This collection is a thirdparty disclosure type of collection.
e.

Error Correction
i.

Rule 905 – As Previously Adopted

Rule 905, as adopted in the Regulation SBSR Adopting Release, establishes procedures
for correcting errors in reported and disseminated security-based swap information. Rule 905
requires any counterparty to a security-based swap that discovers an error in previously-reported
information to take action to ensure that corrected information is provided to the registered SDR
to which the initial transaction was reported. The rule also requires a registered SDR to verify
any error reports that it receives and correct and, if necessary, publicly disseminate a corrected
transaction report.

participants that currently do not have an LEI, the first year burden on obtaining an LEI
will be one hour per participant. However, these same participants will not incur the
annual recurring burden during that first year and will only incur this recurring burden in
subsequent year. Thus, the one hour per year ongoing estimate for participants that do not
currently have an LEI will be reduced (Y1: 0; Y2: 1 hour; Y3: 1 hour = 2 hours/3 = .67
hour).
22

1. Reporting Sides
Under Rule 905(a)(2), where a reporting side for a security-based swap transaction
discovers an error in the information reported with respect to a security-based swap, or receives
notification from its counterparty of an error, the reporting side must promptly submit to the
entity to which the security-based swap was originally reported an amended report pertaining to
the original transaction. The amended report must be submitted to the registered SDR in a
manner consistent with the policies and procedures of the registered SDR required pursuant to
Rule 907(a)(3). The Commission believes that compliance with this rule will require support
and maintenance of error-reporting functions. The Commission believes that designing and
building appropriate reporting system functionality to comply with the error-reporting rule will
represent an incremental “add-on” to the cost to build a reporting system. The Commission
estimates that the incremental burden will be equal to 5% of the one-time and annual costs
associated with designing and building a reporting system pursuant to Rule 901 plus 10% of the
corresponding one-time and annual costs associated with developing the overall compliance
program required under Rule 901. The Commission estimated that Rule 905(a) will impose an
initial (first-year) aggregate burden of 15,015 hours, which is approximately 50 burden hours per
reporting side, 87 and an ongoing aggregate annualized burden of 7,035 hours, which is 23.5
burden hours per reporting side. 88 The Commission estimated that each reporting side will, on
average, only have to submit one error correction report per day. As a result, the Commission
estimated the burden per respondent per year, which, including the one-time burden equally
allocated over three years, to be 40.17 hours. 89 This collection is a third-party disclosure type of
collection.

87

See Regulation SBSR Adopting Release, 80 FR at 14682. This figure is calculated as
follows: [(((172 burden hours for one-time development of reporting system) x (0.05)) +
((33 burden hours annual maintenance of reporting system) x (0.05)) + ((180 burden
hours one-time compliance program development) x (0.1)) + ((218 burden hours annual
support of compliance program) x (0.1))) x (300 reporting sides)] = 15,015 burden hours,
which is 50 burden hours per reporting side. The burden hours for annual maintenance of
the reporting system has been updated to reflect new information on the number of
reportable events.

88

See Regulation SBSR Adopting Release, 80 FR at 14682. This figure is calculated as
follows: [(((33 burden hours annual maintenance of reporting system) x (0.05)) + ((218
burden hours annual support of compliance program) x (0.1))) x (300 reporting sides)] =
7,035 burden hours, which is 23.5 burden hours per reporting side. The burden hours for
annual maintenance of the reporting system has been updated to reflect new information
on the number of reportable events.

89

This figure is based on the following: [(50.0 hours/3 years) + (23.5 hours)]. The
Commission further estimated that each reporting side respondent will submit 365 error
corrections reports each year for a per-response burden of 0.11005 hours [40.17
hours/365 responses]. This equates to a total burden of 12,051 hours [40.17 hours x 300
reporting sides].
23

2.

Non-Reporting Sides

Under Rule 905(a)(1), where a side that was not the reporting side for a security-based
swap transaction discovers an error in the information reported with respect to such securitybased swap, the counterparty must promptly notify the reporting side of the error. The
Commission estimated that as many as 4,800 entities will be subject to this burden. The
Commission estimated that the requirements to notify reporting sides will impose an aggregate
ongoing annualized burden of 998,640 hours, which corresponds to 208.05 burden hours per
non-reporting-side participant. 90 This figure is based on the Commission’s estimate of (1) 4,800
participants; and (2) 1.14 transactions per day per participant. 91 The burdens of Rule 905 on
reporting sides and other participants will be reduced to the extent that complete and accurate
information is reported to registered SDRs in the first instance pursuant to Rule 901. This
collection is a third-party disclosure type of collection.
3.

Registered SDRs

Rule 905(b) sets forth the duties of a registered SDR relating to corrections. If the
registered SDR either discovers an error in a transaction on its system or receives notice of an
error from a reporting side, Rule 905(b)(1) requires the registered SDR to verify the accuracy of
the terms of the security-based swap and, following such verification, promptly correct the
erroneous information contained in its system. Rule 905(b)(2) further requires that, if such
erroneous information relates to a security-based swap that the registered SDR previously
disseminated and does not fall into any of the categories of information enumerated in Rule
901(c), the registered SDR must publicly disseminate a corrected transaction report of the
security-based swap promptly following verification of the trade by the counterparties to the
security-based swap, with an indication that the report relates to a previously disseminated
transaction.
In the Regulation SBSR Adopting Release, the Commission estimated that 10 entities
will be subject to this burden. The Commission estimated that to develop and publicly provide
the necessary protocols will impose an initial one-time burden of approximately 7,300 burden
hours, which corresponds to 730 burden hours per SDR respondent. The Commission estimated
that the initial (first-year) aggregate annualized burden on registered SDRs under Rule 905
would be 21,900 burden hours, which corresponds to 2,190 burden hours for each registered

90

See Regulation SBSR Adopting Release, 80 FR at 14682. This figure is based on the
following: [(1.14 error notifications per non-reporting-side participant per day) x (365
days/year) x (Compliance Clerk at 0.5 hours/report) x (4,800 participants)] = 998,640
burden hours, which corresponds to 208.05 burden hours per participant. The annual
burden per respondent/per response is 0.57 hours [(208.05 total hourly burden per
year/365 responses per year = 0.57 hours per response].

91

This figure is based on the following: [((2,000,000 estimated annual security-based swap
transactions) / (4,800 estimated participants)) / (365 days/year)] = 1.14 transactions per
day, on average.
24

SDR. 92 The Commission further estimated that the ongoing aggregate annualized burden on
registered SDRs under Rule 905 would be 14,600 burden hours, which corresponds to 1,460
burden hours for each registered SDR. 93 The Commission estimated that the protocols will have
to be updated once each year, resulting in one response per respondent per year, which, including
the one-time burden equally allocated over three years, results in a burden of 1,703.33 hours per
response. 94 This collection is a third-party disclosure type of collection.
ii.

Rule 905 – Amendments

On July 14, 2016, the Commission adopted amendments to Regulation SBSR. The
burdens resulting from these amendments are summarized below.
1.

Reporting Sides – New Respondents

The Commission estimates that an additional 20 respondents will incur the duty to report
under the amendments to Regulation SBSR. The Commission estimates that the 20 new
respondents now subject to Regulation SBSR will incur, as a result of Rule 905(a), an initial
(first-year) aggregate burden of 968 hours, which is 48.4 burden hours per new respondent, 95 and
an ongoing aggregate annualized burden of 436 hours, which is 21.8 burden hours per new
respondent. 96 The Commission estimates that each reporting side will, on average, only have to
submit one error correction report per day. As a result, the Commission estimates the burden per
respondent per year, which, including the one-time burden equally allocated over three years, to
be 37.93 hours. 97 The Commission believes that the actual submission of amended transaction
92

This figure is based on the following: [(730 burden hours to develop protocols) + (1,460
burden hours annual support)) x (10 registered SDRs)] = 21,900 burden hours, which
corresponds to 2,190 burden hours per registered SDR.

93

This figure is based on the following: [(1,460 burden hours annual support) x (10
registered SDRs)] = 14,600 burden hours, which corresponds to 1,460 burden hours per
registered SDR.

94

This figure is based on the following: [((730 hours/3 years) + (1,460 hours))/ (1 response
per year)] = 1703.33 hours.

95

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((.11 burden hours annual maintenance of reporting system)
x (0.05)) + ((180 burden hours one-time compliance program development) x (0.1)) +
((218 burden hours annual support of compliance program) x (0.1))) x (20 respondents)]
= 968 burden hours, which is 48.4 burden hours per new respondent.

96

This figure is calculated as follows: [(((.11 burden hours annual maintenance of
reporting system) x (0.05)) + ((218 burden hours annual support of compliance program)
x (0.1))) x (20 respondents)] = 436 burden hours, which is 21.8 burden hours per new
respondent.

97

This figure is based on the following: [(48.4 hours/3 years) + (21.8 hours)]. The
Commission further estimated that each reporting side respondent will submit 365 error
corrections reports each year for a per-response burden of 0.10392 hours [37.93
25

reports required under Rule 905(a)(2) will not result in a material burden because this will be
done electronically though the reporting system that the new respondents are required to develop
and maintain to comply with existing Rule 901. The overall burdens associated with such a
reporting system are addressed in our analysis of Rule 901.
2.

Platforms

Rule 905, as amended, applies to all participants of registered SDRs, including platforms.
The Commission estimates that there will be approximately 10 platforms that incur a duty to
report security-based swap transactions pursuant to Rule 901 and thus may have a duty to correct
errors under Rule 905. In light of the Commission’s amendments to Rule 901(a) to require a
platform to report a security-based swap that is executed on the platform and that will be
submitted to clearing, the Commission has adopted conforming changes to Rule 905(a) to require
the person having the duty to report the initial transaction to correct previously reported
erroneous information if it discovers an error. Thus, under the amendments to Rule 905(a), the
person having the duty to report a security-based swap, whether a counterparty or a platform,
will be required to correct previously reported erroneous information with respect to that
security-based swap. The Commission estimates that the amendments to Rule 905(a) will
impose an initial (first-year) aggregate burden of 514 hours, which is 51.4 burden hours per
platform, 98 and an ongoing aggregate annualized burden of 248 hours, which is 24.8 burden
hours per platform. 99
3.

Registered Clearing Agencies

Rule 905 also applies to registered clearing agencies as a result of the amendments to
Rule 905(a). However, because registered clearing agencies will be responsible for a large
number of reportable events, they will likely be required to report more error corrections. As a
result, the burdens imposed by Rule 905(a) on registered clearing agencies will be greater. For
registered clearing agencies, the Commission estimates that the amendments to Rule 905(a) will
impose an initial (first-year) aggregate burden of 413.6 hours, which is 103.4 burden hours per
registered clearing agency, 100 and an ongoing aggregate annualized burden of 307.2 hours, which
hours/365 responses]. This equates to a total burden of 758.67 hours [37.93 hours x 20
reporting sides].
98

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((60 burden hours annual maintenance of reporting system)
x (0.05)) + ((180 burden hours one-time compliance program development) x (0.1)) +
((218 burden hours annual support of compliance program) x (0.1))) x (10 platforms)] =
514 burden hours, which is 51.4 burden hours per platform.

99

This figure is calculated as follows: [(((60 burden hours annual maintenance of reporting
system) x (0.05)) + ((218 burden hours annual support of compliance program) x (0.1))) x
(10 platforms)] = 248 burden hours, which is 24.8 burden hours per platform.

100

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((1100 burden hours annual maintenance of reporting
26

is 76.8 burden hours per registered clearing agency. 101 The Commission estimates that each
registered clearing agency will, on average, only have to report one error correction report per
day. As a result, the Commission estimates the burden per respondent per year, which, including
the one-time burden equally allocated over three years, to be 111.27 hours. 102 This collection is
a third-party disclosure type of collection. 103
iii.

Rule 905 – Aggregate Burdens
1.

Reporting Sides

With respect to the 300 reporting sides previously identified, the Commission continues
to believe that Rule 905(a) will impose an initial (first-year) aggregate burden of 15,015 hours,
which is approximately 50 burden hours per reporting side, 104 and an ongoing aggregate
annualized burden of 7,035 hours, which is 23.5 burden hours per reporting side. 105 The
Commission estimates that each reporting side will, on average, only have to submit one error
correction report per day. This collection is a third-party disclosure type of collection.
system) x (0.05)) + ((180 burden hours one-time compliance program development) x
(0.1)) + ((218 burden hours annual support of compliance program) x (0.1))) x (4
registered clearing agencies)] = 103.4 burden hours, which is 103.4 burden hours per
registered clearing agency.
101

This figure is calculated as follows: [(((1100 burden hours annual maintenance of
reporting system) x (0.05)) + ((218 burden hours annual support of compliance program)
x (0.1))) x (4 registered clearing agencies)] = 307.2 burden hours, which is 76.8 burden
hours per registered clearing agency.

102

This figure is based on the following: [103.4 hours/3 years) + (76.8 hours)]. The
Commission further estimated that each reporting side respondent will submit 365 error
corrections reports each year for a per-response burden of 0.3048 hours [111.2667
hours/365 responses]. This equates to a total burden of 445.07 hours [111.2667 hours x 4
reporting sides].

103

We have assumed that all burden hours associated with this collection will be attributable
to a third-party disclosure type, rather than a reporting type, of collection.

104

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((33 burden hours annual maintenance of reporting system)
x (0.05)) + ((180 burden hours one-time compliance program development) x (0.1)) +
((218 burden hours annual support of compliance program) x (0.1))) x (300 reporting
sides)] = 15,015 burden hours, which is 50 burden hours per reporting side. The burden
hours for annual maintenance of the reporting system has been updated to reflect new
information on the number of reportable events.

105

This figure is calculated as follows: [(((33 burden hours annual maintenance of reporting
system) x (0.05)) + ((218 burden hours annual support of compliance program) x (0.1))) x
(300 reporting sides)] = 7,035 burden hours, which is 23.5 burden hours per reporting
side. The burden hours for annual maintenance of the reporting system has been updated
to reflect new information on the number of reportable events.
27

2.

Non-Reporting Sides

With respect to the as many as 4,800 non-reporting sides that will be subject to this
burden, the Commission continues to estimate that the requirements to notify reporting sides will
impose an aggregate ongoing annualized burden of 998,640 hours, which corresponds to 208.05
burden hours per non-reporting-side participant. 106 This figure is based on the Commission’s
estimate of (1) 4,800 participants; and (2) 1.14 transaction per day per participant. 107 The
burdens of Rule 905 on reporting sides and other participants will be reduced to the extent that
complete and accurate information is reported to registered SDRs in the first instance pursuant to
Rule 901. This collection is a third-party disclosure type of collection.
3.

Registered SDRs

Rule 905(b) will require a registered SDR to develop protocols regarding the reporting
and correction of erroneous information. The Commission believes, however, that this duty will
represent only a minor extension of other duties for which the Commission estimated burdens.
The Commission estimates that 10 entities will be subject to this burden. The Commission
estimates that to develop and publicly provide the necessary protocols will impose an initial onetime burden of approximately 7,300 burden hours, which corresponds to 730 burden hours per
SDR respondent. The Commission estimates that the initial (first-year) aggregate annualized
burden on registered SDRs under Rule 905 will be 21,900 burden hours, which corresponds to
2,190 burden hours for each registered SDR. 108 The Commission further estimates that the
ongoing aggregate annualized burden on registered SDRs under Rule 905 will be 14,600 burden
hours, which corresponds to 1,460 burden hours for each registered SDR. 109 The Commission
estimates that the protocols will have to be updated once each year, resulting in one response per
106

This burden was calculated using the same methodology as was used in the Regulation
SBSR Proposing Release, updated to account for new estimates of the number of error
notifications resulting from updates in the number of reportable events. This figure is
based on the following: [(1.14 error notifications per non-reporting-side participant per
day) x (365 days/year) x (Compliance Clerk at 0.5 hours/report) x (4,800 participants)] =
998,640 burden hours, which corresponds to 208.05 burden hours per participant. The
annual burden per respondent/per response is 0.57 hours [(208.05 total hourly burden per
year/365 responses per year = 0.57 hours per response].

107

This figure is based on the following: [((2,000,000 estimated annual security-based swap
transactions) / (4,800 estimated participants)) / (365 days/year)] = 1.14 transactions per
day, on average.

108

This figure is based on the following: [(730 burden hours to develop protocols) + (1,460
burden hours annual support)) x (10 registered SDRs)] = 21,900 burden hours, which
corresponds to 2,190 burden hours per registered SDR.

109

This figure is based on the following: [(1,460 burden hours annual support) x (10
registered SDRs)] = 14,600 burden hours, which corresponds to 1,460 burden hours per
registered SDR.
28

respondent per year, which, including the one-time burden equally allocated over three years,
results in a burden of 1,703.33 hours per response. 110 This collection is a third-party disclosure
type of collection.
4.

Reporting Sides – New Respondents

The Commission estimates that 20 new respondents will incur the duty to report under
the amendments to Regulation SBSR. The Commission estimates that the 20 new respondents
subject to Regulation SBSR will incur, as a result of Rule 905(a), an initial (first-year) aggregate
burden of 968 hours, which is 48.4 burden hours per new respondent, 111 and an ongoing
aggregate annualized burden of 436 hours, which is 21.8 burden hours per new respondent. 112
This collection is a third-party disclosure type of collection. The Commission believes that the
actual submission of amended transaction reports required under Rule 905(a)(2) will not result in
a material burden because this will be done electronically though the reporting system that the
respondent already is required to develop and maintain to comply with Rule 901. The overall
burdens associated with such a reporting system are addressed in our analysis of Rule 901.
5.

Platforms

Rule 905 applies to all participants of registered SDRs. Rule 905, as amended, applies to
platforms. The Commission continues to believe that there will be approximately 10 platforms
that incur a duty to report security-based swap transactions pursuant to Rule 901 and thus may
have a duty to correct errors under Rule 905. In light of the Commission’s amendment to Rule
901(a) to require a platform to report a security-based swap that is executed on the platform and
that will be submitted to clearing, the Commission adopted conforming changes to Rule 905(a)
to require the person having the duty to report the initial transaction to correct previously
reported erroneous information if it discovers an error. Thus, under the amendments to Rule
905(a), the person having the duty to report a security-based swap, whether a counterparty or a
platform, will be required to correct previously reported erroneous information with respect to
that security-based swap if it discovers an error. The Commission estimates that the
amendments to Rule 905(a) will impose an initial (first-year) aggregate burden of 514 hours,
which is 51.4 burden hours per platform, 113 and an ongoing aggregate annualized burden of 248
110

This figure is based on the following: [((730 hours/3 years) + (1,460 hours))/ (1 response
per year)] = 1703.33 hours.

111

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((.11 burden hours annual maintenance of reporting system)
x (0.05)) + ((180 burden hours one-time compliance program development) x (0.1)) +
((218 burden hours annual support of compliance program) x (0.1))) x (20 respondents)]
= 968 burden hours, which is 48.4 burden hours per new respondent.

112

This figure is calculated as follows: [(((.11 burden hours annual maintenance of
reporting system) x (0.05)) + ((218 burden hours annual support of compliance program)
x (0.1))) x (20 respondents)] = 436 burden hours, which is 21.8 burden hours per new
respondent.

113

This figure is calculated as follows: [(((172 burden hours for one-time development of
29

hours, which is 24.8 burden hours per platform. 114 This collection is a third-party disclosure type
of collection.
6.

Registered Clearing Agencies

Rule 905 also applies to registered clearing agencies as a result of the amendments to
Rule 905(a). However, because registered clearing agencies will be responsible for a large
number of reportable events, they will likely be required to report more error corrections. As a
result, the burdens imposed by Rule 905(a) on registered clearing agencies will be greater. For
registered clearing agencies, the Commission estimates that the amendments to Rule 905(a) will
impose an initial (first-year) aggregate burden of 413.6 hours, which is 103.4 burden hours per
registered clearing agency, 115 and an ongoing aggregate annualized burden of 307.2 hours, which
is 76.8 burden hours per registered clearing agency. 116 This collection is a third-party disclosure
type of collection. 117
Other Duties
f.
i.

Rule 906 – As Previously Adopted
1.

Participants

Rule 906(a) requires a participant that receives a daily report from a registered SDR to
provide the missing identifier codes to the registered SDR within 24 hours. The Commission
estimated that as many as 4,800 participants will be subject to this burden. The Commission
further estimated that the ongoing annualized burden under Rule 906(a) to participants will be
reporting system) x (0.05)) + ((60 burden hours annual maintenance of reporting system)
x (0.05)) + ((180 burden hours one-time compliance program development) x (0.1)) +
((218 burden hours annual support of compliance program) x (0.1))) x (10 platforms)] =
514 burden hours, which is 51.4 burden hours per platform.
114

This figure is calculated as follows: [(((33 burden hours annual maintenance of reporting
system) x (0.05)) + ((218 burden hours annual support of compliance program) x (0.1))) x
(10 platforms)] = 248 burden hours, which is 24.8 burden hours per platform.

115

This figure is calculated as follows: [(((172 burden hours for one-time development of
reporting system) x (0.05)) + ((1100 burden hours annual maintenance of reporting
system) x (0.05)) + ((180 burden hours one-time compliance program development) x
(0.1)) + ((218 burden hours annual support of compliance program) x (0.1))) x (4
registered clearing agencies)] = 103.4 burden hours, which is 103.4 burden hours per
registered clearing agency.

116

This figure is calculated as follows: [(((1100 burden hours annual maintenance of
reporting system) x (0.05)) + ((218 burden hours annual support of compliance program)
x (0.1))) x (4 registered clearing agencies)] = 307.2 burden hours, which is 76.8 burden
hours per registered clearing agency.

117

We have assumed that all burden hours associated with this collection will be attributable
to a third-party disclosure type, rather than a reporting type, of collection.
30

199,728 burden hours, which corresponds to 41.6 burden hours per participant. 118 This figure is
based on the Commission’s estimates of (1) 4,800 participants; and (2) approximately 1.14
transactions per day per participant. 119 The Commission estimated that each participant will be
required to respond to 1.14 missing information reports each day, resulting in 416.1 responses
per participant respondent per year, for a burden of 0.1 hours per response. 120 This collection is
a third-party disclosure type of collection.
Rule 906(b) requires each participant of a registered SDR to provide to the registered
SDR an initial parent/ affiliate report and subsequent reports, as needed. The Commission
estimated that there will be as many as 4,800 participants, that each participant will connect to
two registered SDRs on average, and that each participant will submit two reports each year. 121
Accordingly, the Commission estimated that the ongoing annualized burden associated with Rule
906(b) will be 9,600 burden hours, which corresponds to 2 burden hours per participant. 122 The
Commission estimated 2 responses per participant respondent per year, resulting in a burden of 1
hour per response. This collection is a third-party disclosure type of collection.

118

This figure is based on the following: [(1.14 missing information reports per participant
per day) x (365 days/year) x (Compliance Clerk at 0.1 hours/report) x (4,800 participants)
= 199,728 burden hours, which corresponds to 41.6 burden hours per participant.

119

This figure is based on the following: [((2,000,000 estimated annual security-based swap
transactions) / 4,800 participants)) / (365 days/year)] = 1.14 transactions per day, or
approximately 1 transaction per day.

120

This figure is based on the following: (41.6 hours/ (416.1 responses/year) = 0.1 hours per
response.

121

The Commission estimates that, during the first year, each participant will submit an
initial report and one update report and, in subsequent years, will submit two update
reports.

122

See Regulation SBSR Adopting Release, 80 FR at 14684. This figure is based on the
following: [(Compliance Clerk at 0.5 hours per report) x (2 reports/year/SDR
connection) x (2 SDR connections/participant) x (4,800 participants)] = 9,600 burden
hours, which corresponds to 2 burden hours per participant.
31

2.
Rule 906(c) – Registered Security-Based Swap Dealers and
Registered Major Security-Based Swap Participants
Rule 906(c) requires each participant that is a registered security-based swap dealer or
registered major security-based swap participant to establish, maintain, and enforce written
policies and procedures (updated at least annually) that are reasonably designed to ensure
compliance with any security-based swap transaction reporting obligations in a manner
consistent with Regulation SBSR. The Commission estimated that 55 entities will be subject to
this burden. The Commission estimated that the one-time, initial burden for covered participants
to adopt written policies and procedures as required under Rule 906(c) will be approximately
11,880 burden hours, which corresponds to 216 burden hours per covered participant. Further,
the Commission estimated the aggregate ongoing annual burden of maintaining such policies and
procedures, including a full review at least annually, as required by Rule 906(c), will be
approximately 6,600 burden hours, which corresponds to 120 burden hours for each covered
participant. The Commission estimated 1 response per respondent per year, which, including the
one-time burden equally allocated over three years, results in a burden of 192 hours per
response. 123 This collection is a recordkeeping type of collection.
3.

Registered SDRs

Rule 906(a) establishes procedures designed to ensure that a registered SDR obtains
applicable UICs for both counterparties to a security-based swap. Rule 906(a) requires a
registered SDR, once a day, to send a report to each of its participants identifying, for each
security-based swap to which that participant is a counterparty, the security-based swap(s) for
which the registered SDR lacks participant ID and (if applicable) broker ID, trading desk ID, and
trader ID. The Commission estimated that 10 entities will be subject to this burden. The
Commission estimated that there will be a one-time, initial burden of 1,120 burden hours for a
registered SDR to create a report template and develop the necessary systems and processes to
produce a daily report required by Rule 906(a), which corresponds to 112 burden hours per SDR
respondent. Further, the Commission estimated that there will be an ongoing annualized burden
of 3,080 burden hours for SDRs to generate and issue the daily reports, and to enter into their
systems the UICs supplied by participants in response to the daily reports, which corresponds to
308 burden hours per SDR respondent. The Commission believes that each participant will
received two missing information reports each day and that each SDR will be required to send
160,000 daily reports annually. 124 The Commission estimated that each daily report will result in

123

This figure is based on the following: [((216 hours/3 years) + (120 hours))/ (1 response
per year)] = 192 hours.

124

The Commission estimated: [((2,000,000 estimated annual SBS transactions)/(4,800
estimated participants))/(365 days/year)] = approximately 1.14 transactions per day per
participant. The Commission further estimates: [(1 missing information report per
participant (i.e., an error rate of 80%)) x (365 days/year) x (4,800 participants)] =
1,597,824 daily reports per year, or approximately 160,000 daily reports per year per
SDR.
32

a burden of 0.002158 hours. 125 This collection is a third-party disclosure type of collection.
ii.

Rule 906 – Amendments
1.

Participants

With respect to the 4,800 participants that will likely be required to provide missing UIC
information to a registered SDR for at least some transactions, the Commission has revised its
original estimate of the burdens imposed by Rule 906(a) because participants will have to
provide missing UIC information for a larger number of transactions. In the Regulation SBSR
Adopting Release, the Commission estimated that the initial and ongoing annualized burden
under Rule 906(a) for all participants will be 199,728 burden hours, with corresponds to 41.6
burden hours per participant. 126 The Commission continues to believe that there will be
approximately one million additional reportable events under Regulation SBSR. 127 Of these one
million reportable events, the Commission estimates that approximately 120,000 platformexecuted alphas reflected in estimates in the Regulation SBSR Adopting Release could have
missing UIC information. Bother sides of a platform-executed alpha might have to report
mission UIC information since neither side is the reporting side and thus both sides are nonreporting sides. Therefore, the Commission believes that each participant, on average, will now
be required to provide missing UIC information for 1.27 transactions each day. 128 As a result,
the Commission believes that the burden placed on each participant by Rule 906(a) will be 46.4
hours annually, for a total burden of 222,504 hours for all participants. 129
In addition, in the amendments to Rule 906(b), the Commission has specifically excluded
from the reporting requirement of Rule 906(b) participants that are platforms, registered clearing
agencies, externally managed investment vehicles, and registered broker-dealers (including SB
125

This figure is based on the following: [((112 hours/3 years) + (308 hours))/ (160,000
responses per year)] = 0.002158 hours. The Commission stated its belief that the process
of sending out daily reports will be automated.

126

This figure is based on the Commission’s estimates of (1) 4,800 participants; and (2)
approximately 1.14 transactions per day per participant. See Regulation SBSR
Amendments Adopting Release.

127

See Regulation SBSR Amendments Adopting Release.

128

The Commission estimates: [(((2,000,000 original estimate of annual security-based
swap transactions for which missing UIC information will need to be provided to the
SDR) + ((120,000 additional security-based swap transactions for which UIC information
is required) x (2 since both sides could be required to provide missing UIC information)))
/ 4,800 participants) / (365 days/year)] = 1.27 average security-based swap transactions
per day for which each participant will need to provide missing UIC information.

129

The Commission estimates that the total burden for all participants will be 222,504
calculated as follows: (1.27 missing information reports per day) x (365 days per year) x
(Compliance Clerk at 0.1 hours/report) x (4,800 participants) = 222,504 hours/year or
46.4 hours for each participant.
33

SEFs) that become participants of a registered SDR solely as a result of making a report to
satisfy an obligation under Rule 901(a)(2)(ii)(E)(4). Platforms and registered clearing agencies
were not covered respondents to Rule 906(b) when the Commission estimated the burdens of
Rule 906(b). Therefore, the amendment to Rule 906(b) that specifically excludes them does not
affect the Commission’s estimate of the burdens associated with Rule 906(b).
However, externally managed investment vehicles were considered respondents of Rule
906(b) and the estimated burdens on all participant respondents included burdens imposed on
externally managed investment vehicles. 130 Therefore, the amendment to Rule 906(b) has the
effect of reducing the number of respondents and the associated burdens of Rule 906(b) that the
Commission estimated in the Regulation SBSR Adopting Release. Based on an analysis of TIW
transaction data, the Commission believes that, of the 4,800 estimated participants,
approximately 1,920 are externally managed investment vehicles. 131 Therefore, there are only
2,880 participant respondents to Rule 906(b). The Commission continues to estimate that each
respondent to Rule 906(b) will submit two reports per year and that each report will result in one
burden hour. 132 The Commission continues to believe that each respondent will incur two
burden hours per year in connection with Rule 906(b), but is reducing its estimate of total burden
hours for all participants from 9,600 (estimated in the Regulation SBSR Adopting Release) to
5,760 (2,880 respondents x 2 hours/respondent = 5,760 hours).
2.
Registered Security-Based Swap Dealers and Registered
Major Security-Based Swap Participants
The Commission does not believe that the amendments result in any additional burdens
being placed upon registered security-based swap dealers and registered major security-based
swap participants.
3.

Registered Broker-Dealer Participants

The amendments to Rule 906(c) result in the rule applying to registered broker-dealers
that are likely to become participants solely as a result of being required to report one or more
security-based swaps to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4). The Commission
now estimates that there will be 20 such registered broker-dealers. The amendments to Rule
906(c) will require each registered broker-dealer that is likely to become a participant solely as a
result of making a report to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4) to establish,
maintain, and enforce written policies and procedures that are reasonably designed to ensure
compliance with applicable security-based swap transaction reporting obligations. Each such
registered broker-dealer will be required to review and update such policies and procedures at
least annually. The Commission estimates that the one-time, initial burden for each such
registered broker-dealer to adopt written policies and procedures will be similar to the Rule
130

See Regulation SBSR Amendments Adopting Release.

131

Roughly 40% of TIW accounts on average have been identified by staff as private funds
or registered investment companies, 4,800 x 0.4 = 1,920.

132

See Regulation SBSR Amendments Adopting Release.
34

906(c) burdens discussed in the Regulation SBSR Adopting Release, and will be approximately
216 burden hours per registered broker-dealer. 133 The Commission estimates the burden of
maintaining such policies and procedures, including a full review at least annually will be
approximately 120 burden hours for each registered broker-dealer that is likely to become an
SDR participant. 134 Accordingly, the Commission estimates that the initial aggregate annualized
burden associated with the amendments to Rule 906(c) will be 6,720 burden hours, which
corresponds to 336 burden hours per registered broker-dealer that is likely to become a
participant solely as a result of making a report to satisfy an obligation under Rule
901(a)(2)(ii)(E)(4). 135 The Commission estimates that the ongoing aggregate annualized burden
associated with the amendments to Rule 906(c) will be 3,600 burden hours, which corresponds to
120 burden hours per registered broker-dealer that is likely to become a participant solely as a
result of making a report to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4). 136 This
collection is a recordkeeping type of collection.
4.

Registered SDRs

The Commission does not believe that the amendments result in any additional burdens
being placed upon registered SDRs.
5.

Registered Clearing Agencies and Platforms

The amendments to Rule 906(c) require each registered clearing agency or platform to
adopt written policies and procedures. The Commission estimates that the one-time, initial
burden for each registered clearing agency or platform to adopt written policies and procedures
will be similar to the Rule 906(c) burdens for other covered participants. 137 The Commission
estimates that Rule 906(c) will impose a burden of approximately 216 hours on each registered
security-based swap dealer or registered major security-based swap participant (together,
“covered participants”). 138 In addition, the Commission estimates that the burden of maintaining
133

See Regulation SBSR Amendments Adopting Release. This figure is based on the
following: [(Sr. Programmer at 40 hours) + (Compliance Manager at 40 hours) +
(Compliance Attorney at 40 hours) + (Compliance Clerk at 40 hours) + (Sr. Systems
Analyst at 32 hours) + (Director of Compliance at 24 hours)] = 216 burden hours per
registered broker-dealer that is likely to become a participant solely as a result of making
a report to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4).

134

See Regulation SBSR Amendments Adopting Release.

135

This figure is based on the following: (216 + 120 burden hours) x (20 registered brokerdealers that are likely to become a participant solely as a result of making a report to
satisfy an obligation under Rule 901(a)(2)(ii)(E)(4))] = 6,720 burden hours.

136

This figure is based on the following: (120 burden hours) x (20 registered broker-dealers
that are likely to become a participant solely as a result of making a report to satisfy an
obligation under Rule 901(a)(2)(ii)(E)(4))] = 2,400 burden hours.

137

See Regulation SBSR Amendments Adopting Release.

138

See id. This figure is based on the following: [(Sr. Programmer at 40 hours) +
35

such policies and procedures, including a full review at least annually, will be approximately 120
burden hours for each covered participant. 139 Accordingly, the Commission estimates that the
initial aggregate annualized burden associated with the amendments to Rule 906(c) will be 4,704
burden hours, which corresponds to 336 burden hours per registered clearing agency or
platform. 140 The Commission estimates that the ongoing aggregate annualized burden associated
with the amendments to Rule 906(c) will be 1,680 burden hours, which corresponds to 120
burden hours per registered clearing agency or platform. 141 This collection is a recordkeeping
type of collection.
iii.

Rule 906 – Aggregate Burdens
1.

Participants

As discussed above, the Commission estimates that as many as 4,800 participants will be
subject to the Rule 906(a) requirement that requires participants to provide missing identifier
codes to the registered SDR within 24 hours. As a result of amendments to Regulation SBSR
that will result in up to one million additional reportable events, and the corresponding
approximately 120,000 platforms-executed alphas that could have missing UIC information, the
Commission believes that each participant, on average, will now be required to provide missing
UIC information for 1.27 transactions each day. 142 As a result, the Commission believes that the
(Compliance Manager at 40 hours) + (Compliance Attorney at 40 hours) + (Compliance
Clerk at 40 hours) + (Sr. Systems Analyst at 32 hours) + (Director of Compliance at 24
hours)] = 216 burden hours per registered clearing agency or platform. This figure is
based on the estimated number of hours to develop a set of written policies and
procedures, program systems, implement internal controls and oversight, train relevant
employees, and perform necessary testing.
139

See id. This figure is based on the following: [(Sr. Programmer at 8 hours) +
(Compliance Manager at 24 hours) + (Compliance Attorney at 24 hours) + (Compliance
Clerk at 24 hours) + (Sr. Systems Analyst at 16 hours) + (Director of Compliance at 24
hours)] = 120 burden hours per registered clearing agency or platform. This figure
includes an estimate of hours related to reviewing existing policies and procedures,
making necessary updates, conducting ongoing training, maintaining internal controls
systems, and performing necessary testing.

140

This figure is based on the following: [(216 + 120 burden hours) x (14 registered
clearing agencies and platforms)] = 4,704 burden hours.

141

This figure is based on the following: [(120 burden hours) x (14 registered clearing
agencies and platforms)] = 1,680 burden hours.

142

The Commission estimates: [(((2,000,000 original estimate of annual security-based
swap transactions for which missing UIC information will need to be provided to the
SDR) + ((120,000 additional security-based swap transactions for which UIC information
is required) x (2 since both sides could be required to provide missing UIC information)))
/ 4,800 participants) / (365 days/year)] = 1.27 average security-based swap transactions
per day for which each participant will need to provide missing UIC information.
36

burden placed on each participant by Rule 906(a) will be 46.4 hours annually, for a total burden
under Rule 906(a) of 222,504 hours for all participants. 143 The Commission estimates that each
participant will we required to respond to 1.27 missing information reports each day, resulting in
463.6 responses per participant respondent per year, for a burden of 0.1 hours per response. 144
This collection is a third-party disclosure type of collection.
Since externally managed investment vehicles were considered respondents of Rule
906(b), as previously adopted, the amendment to Rule 906(b) has the effect of reducing the
number of respondents and the associated burdens of Rule 906(b). The Commission now
estimates that there are only 2,880 participant respondents to Rule 906(b). The Commission
continues to believe that each respondent will incur two burden hours per year in connection
with Rule 906(b), but is reducing its estimate of total burden hours for all participants from 9,600
(estimated in the Regulation SBSR Adopting Release) to 5,760 (2,880 respondents x 2
hours/respondent = 5,760 hours). This collection is a third-party disclosure type of collection.
2.
Registered Security-Based Swap Dealers and Registered
Major Security-Based Swap Participants
The Commission estimates that the one-time, initial burden for covered participants to
adopt written policies and procedures as required under Rule 906(c) will be approximately
11,880 burden hours, which corresponds to 216 burden hours per covered participant. Further,
the Commission estimates the aggregate ongoing annual burden of maintaining such policies and
procedures, including a full review at least annually, as required by Rule 906(c), will be
approximately 6,600 burden hours, which corresponds to 120 burden hours for each covered
participant. The Commission estimates 1 response per respondent per year, which, including the
one-time burden equally allocated over three years, results in a burden of 192 hours per
response. 145 This collection is a recordkeeping type of collection.
3.

Registered Broker-Dealer Participants

As is discussed above, the amendments to Rule 906(c) result in the rule applying to
registered broker-dealers that are likely to become participants solely as a result of being
required to report one or more security-based swaps to satisfy an obligation under Rule
901(a)(2)(ii)(E)(4). The Commission estimates that the initial aggregate annualized burden
associated with the amendments to Rule 906(c) will be 6,720 burden hours, which corresponds to
336 burden hours per registered broker-dealer that is likely to become a participant solely as a
143

The Commission estimates that the total burden for all participants will be 222,504
calculated as follows: (1.27 missing information reports per day) x (365 days per year) x
(Compliance Clerk at 0.1 hours/report) x (4,800 participants) = 222,504 hours/year or
46.4 hours for each participant.

144

This figure is based on the following: (46.4 hours/ (463.5 responses/year) = 0.1 hours per
response.

145

This figure is based on the following: [((216 hours/3 years) + (120 hours))/ (1 response
per year)] = 192 hours.
37

result of making a report to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4). 146 The
Commission estimates that the ongoing aggregate annualized burden associated with the
amendments to Rule 906(c) will be 3,600 burden hours, which corresponds to 120 burden hours
per registered broker-dealer that is likely to become a participant solely as a result of making a
report to satisfy an obligation under Rule 901(a)(2)(ii)(E)(4). 147 This collection is a
recordkeeping type of collection.
4.

Registered SDRs

As is discussed above, the Commission does not believe that the amendments will have
any impact on the burdens imposed on registered SDRs. The Commission estimates that 10
entities will be subject to Regulation SBSR. The Commission estimates that there will be a onetime, initial burden of 1,120 burden hours for a registered SDR to create a report template and
develop the necessary systems and processes to produce a daily report required by Rule 906(a),
which corresponds to 112 burden hours per SDR respondent. Further, the Commission estimates
that there will be an ongoing annualized burden of 3,080 burden hours for SDRs to generate and
issue the daily reports, and to enter into their systems the UICs supplied by participants in
response to the daily reports, which corresponds to 308 burden hours per SDR respondent. The
Commission believes that each participant will received two missing information reports each
day and that each SDR will be required to send 160,000 daily reports annually. 148 The
Commission estimates that each daily report will result in a burden of 0.002158 hours. 149 This
collection is a third-party disclosure type of collection.
5.

Registered Clearing Agencies and Platforms

As is discussed above, the Commission estimates that the one-time, initial burden for
each registered clearing agency or platform to adopt written policies and procedures will be
similar to the Rule 906(c) burdens for other covered participants. The Commission estimates
146

This figure is based on the following: (216 + 120 burden hours) x (20 registered brokerdealers that are likely to become a participant solely as a result of making a report to
satisfy an obligation under Rule 901(a)(2)(ii)(E)(4))] = 6,720 burden hours.

147

This figure is based on the following: (120 burden hours) x (20 registered broker-dealers
that are likely to become a participant solely as a result of making a report to satisfy an
obligation under Rule 901(a)(2)(ii)(E)(4))] = 2,400 burden hours.

148

The Commission estimated: [((2,000,000 estimated annual SBS transactions)/(4,800
estimated participants))/(365 days/year)] = approximately 1.14 transactions per day per
participant. The Commission further estimates: [(1 missing information report per
participant (i.e., an error rate of 80%)) x (365 days/year) x (4,800 participants)] =
1,597,824 daily reports per year, or approximately 160,000 daily reports per year per
SDR.

149

This figure is based on the following: [((112 hours/3 years) + (308 hours))/ (160,000
responses per year)] = 0.002158 hours. The Commission stated its belief that the process
of sending out daily reports will be automated.
38

that the initial aggregate annualized burden associated with the amendments to Rule 906(c) will
be 4,704 burden hours, which corresponds to 336 burden hours per registered clearing agency or
platform. 150 The Commission estimates that the ongoing aggregate annualized burden associated
with the amendments to Rule 906(c) will be 1,680 burden hours, which corresponds to 120
burden hours per registered clearing agency or platform. 151 This collection is a recordkeeping
type of collection.
g.

Policies and Procedures of Registered SDRs

Rule 907 requires each registered SDR to establish and maintain policies and procedures
addressing various aspects of Regulation SBSR compliance. Rule 907(a) generally requires a
registered SDR to establish and maintain written policies and procedures that detail how it will
receive and publicly disseminate security-based swap transaction information. Rule 907(a)(4),
for example, requires policies and procedures for assigning condition flags to the appropriate
transaction reports.
In the amendments to Regulation SBSR, the Commission has revised Rule 907(a)(6) to
indicate that a registered SDR’s policies and procedures need not contain provisions for
obtaining ultimate parent IDs and participant IDs from participants that are platforms or
registered clearing agencies. Under amended Rules 901(a) and 901(e), platforms and registered
clearing agencies will have the duty to report certain security-based swaps and become
participants of registered SDRs to which they report. Rule 907(a)(6), as amended, requires a
registered SDR to establish and maintain written policies and procedures “[f]or periodically
obtaining from each participant information that identifies the participant’s ultimate parent(s)
and any participant(s) with which the participant is affiliated, using ultimate parent IDs and
participant IDs.” The Commission believes that requiring a platform or registered clearing
agency to report parent and affiliate information to a registered SDR will not serve any
regulatory purpose and, therefore, has amended Rule 907(a)(6) to indicate that the obligations
under Rule 907(a)(6) do not attach to participants that are platforms or a registered clearing
agencies. This amendment will not result in any burdens being placed on platforms and
registered clearing agencies.
Rule 907(c) requires a registered SDR to make its policies and procedures available on its
website. Rule 907(d) requires a registered SDR to review, and update as necessary, the policies
and procedures that it is required to have by Regulation SBSR at least annually. Rule 907(e)
requires a registered SDR to have the capacity to provide to the Commission, upon request,
information or reports related to the timeliness, accuracy, and completeness of data reported to it
pursuant to Regulation SBSR and the registered SDR’s policies and procedures established
thereunder.

150

This figure is based on the following: [(216 + 120 burden hours) x (14 registered
clearing agencies and platforms)] = 4,704 burden hours.

151

This figure is based on the following: [(120 burden hours) x (14 registered clearing
agencies and platforms)] = 1,680 burden hours.
39

Rule 907 requires a registered SDR to establish and maintain compliance with written
policies and procedures; to make its policies and procedures publicly available on its website;
review, and update as necessary, its policies and procedures at least annually; and have the
capacity to provide to the Commission, upon request, information or reports related to the
timeliness, accuracy, and completeness of data reported to it pursuant to Regulation SBSR and
the registered SDR’s policies and procedures thereunder. The Commission estimates that 10
registered SDRs will be subject to Rule 907. The Commission previously estimated that the onetime, initial burden for registered SDRs to comply with the requirements of Rule 907, as
previously adopted, will be approximately 150,000 burden hours, which corresponds to 15,000
burden hours per SDR respondent. Further, the Commission previously estimated that the
annual burden of maintaining and reviewing policies and procedures as well as compiling
statistics on non-compliance will be approximately 300,000 burden hours, which corresponds to
30,000 burden hours per SDR respondent.
As a result of amendments made to various provisions of Regulation SBSR registered
SDRs will need to broaden the scope of the written policies and procedures that Rule 907
requires them to have. 152 The Commission believes that a registered SDR’s expansion of its
policies and procedures in response to the amendments to Regulation SBSR represents an “addon” to the burdens already calculated with respect to the SDR policies and procedures under
Rule 907. The Commission estimates the incremental burden to be an additional 10% of the
one-time and annual burdens estimated to result from existing Rule 907. Accordingly, the
Commission believes that the one-time, initial burden for a registered SDR to adopt written
policies and procedures as required under Rule 907 will be approximately 16,500 hours. 153 In
addition, the Commission estimates the annual burden of maintaining such policies and
procedures, including a full review at least annually, making available its policies and procedures
on the registered SDR’s website, and information or reports on non-compliance, as required
under Rule 907(e), will be approximately 33,000 hours for each registered SDR. 154 The
Commission therefore estimates that the initial annualized burden associated with Rule 907 will
be approximately 45,000 hours per registered SDR, which corresponds to an initial annualized
aggregate burden of approximately 495,000 hours. 155 The Commission further estimates that the
152

For example, new Rule 901(e)(1)(ii) requires a registered clearing agency to report to the
alpha SDR whether or not it has accepted the alpha for clearing. The alpha SDR must
revise its policies and procedures to allow for the information from the registered clearing
agency to be connected to the initial report of the alpha. In addition, new Rule 902(c)(8)
requires a registered SDR to avoid public dissemination of a security-based swap that has
been rejected from clearing or rejected by a prime broker if the original transaction report
has not yet been publicly disseminated. A registered SDR must adjust its policies and
procedures for public dissemination to comply with new Rule 902(c)(8).

153

This figure is calculated as follows: [15,000 one-time written policies and procedures
development x (1.1)] = 16,500.

154

This figure is calculated as follows: [(30,000 one-time written policies and procedures
development x (1.1)] = 33,000.

155

This figure is based on the following: [((16,500 burden hours per registered SDR) +
40

ongoing annualized burden associated with Rule 907 will be approximately 33,000 hours per
registered SDR, which corresponds to an ongoing annualized aggregate burden of approximately
330,000 hours. 156
The Commission estimates one response per respondent per year, which, including the
one-time burden equally allocated over three years, results in a burden of 38,500 hours per
response. 157 This collection is a recordkeeping type of collection. No persons other than
registered SDRs will incur any burdens under Rule 907.
h.

Substituted Compliance

Rule 908(c) sets forth the requirements surrounding requests for “substituted
compliance,” under which regulatory duties attaching to cross-border security-based swap
transactions—in this case, regulatory reporting and public dissemination—could be satisfied by
complying with the rules of a foreign jurisdiction rather than the parallel rules applicable in the
United States. Rule 908(c)(2)(ii) applies to any person that requests a substituted compliance
determination with respect to a particular foreign jurisdiction for regulatory reporting and public
dissemination of security-based swaps. In connection with each request, the requesting party
must provide the Commission with any supporting documentation that the entity believes is
necessary for the Commission to make a determination, including information demonstrating that
the requirements applied in the foreign jurisdiction are comparable to the Commission’s and
describing the methods used by relevant foreign financial regulatory authorities to monitor
compliance with those requirements.
The Commission estimated that the total paperwork burden associated with anticipated
requests for substituted compliance determinations with respect to regulatory reporting and
public dissemination will be approximately 1,120 hours. 158 This estimate includes all collection
burdens associated with the request, including burdens associated with analyzing whether the
regulatory requirements of the foreign jurisdiction impose a comparable system for the
regulatory reporting and public dissemination of security-based swaps. Furthermore, this
estimate assumes that each request will be prepared de novo, without any benefit of prior work
on related subjects. The Commission notes, however, that as such requests are developed with
respect to certain jurisdictions, the cost of preparing such requests with respect to other foreign
jurisdictions could decrease.
(33,000 burden hours per registered SDR)) x (10 registered SDRs)] = 495,000 initial
annualized aggregate burden hours during the first year.
156

This figure is based on the following: [(33,000 burden hours per registered SDR) x (10
registered SDRs)] = 330,000 ongoing, annualized aggregate burden hours.

157

This figure is based on the following: [((16,500 hours/3 years) + (33,000 hours))/ (1
response per year)] = 35,000 hours.

158

The Commission estimates that the paperwork burden associated with making a
substituted compliance request pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will be
approximately 80 hours of in-house counsel time.
41

Because only a small number of jurisdictions have substantial OTC derivatives markets
and are implementing OTC derivatives reforms, the Commission estimates that it will receive
approximately 10 requests in the first year for substituted compliance determinations with
respect to regulatory reporting and public dissemination pursuant to Rule 908(c)(2)(ii) of
Regulation SBSR. Assuming 10 requests in the first year, the Commission estimated an
aggregated burden for the first year will be 800 hours. 159 The Commission estimated that it will
receive 2 requests for substituted compliance determinations pursuant to Rule 908(c)(2)(ii) in
each subsequent year. Assuming the same approximate time, the aggregate burden for each year
following the first year will be up to 160 hours of the requester’s time. 160 Because the
Commission anticipates that entities will request substituted compliance beyond the initial
implementation of Regulation SBSR, the Commission believes that it is appropriate to
characterize these burdens as annual recurring burdens. However, the Commission also believes
that these burdens will largely occur in the first year of implementation. As a result, the
Commission believes that the average annual burden of Rule 908(c) will be approximately 374
hours. 161 This collection is a reporting type of collection.
i.

Registration of SDRs as Securities Information Processors
Rule 909 – SDRs

Rule 909 requires a registered SDR also to register with the Commission as a SIP on
Form SDR. As a result of the consolidation of SDR and SIP registration on a single form, the
Commission continues to believe that Rule 909 does not constitute a separate “collection of
information” within the meaning of the PRA. 162 Any burdens and costs pertaining to the
completion of Form SDR have been considered in connection with the Regulation SDR
Adopting Release.
13.

Estimate of Total Annual Cost Burden

The total cost for all of Regulation SBSR for all respondents is approximately
$21,406,000 initially, with a total ongoing cost thereafter of approximately $80,458,000. These
costs are broken down by collection of information below.
159

The Commission estimates that the paperwork burden associated with making 10
substituted compliance requests pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will
be up to approximately 800 hours (80 hours of in-house counsel time) x (10 respondents).

160

The Commission estimates that the paperwork burden associated with making substituted
compliance requests pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will be up to
approximately 160 hours (80 hours of in-house counsel time) x (2 respondents).

161

The Commission estimates that the average annual paperwork burden associated with
making 14 substituted compliance requests, during the first three years following
implementation, will be up to 373.33 hours ((80 hours of in-house counsel time) x (14
respondents))/3 years).

162

See SDR Adopting Release, 80 FR 14458-64.
42

a.

Reporting Obligations
i. Rule 901 – As Previously Adopted
1. Reporting Sides

The Commission estimated that reporting sides may incur annual costs to capture and
maintain relevant security-based swap transaction information to comply with the reporting
requirements of Rule 901. The Commission estimated that 300 entities will be subject to this
cost burden. Reporting sides will need to establish and maintain connectivity to a registered
SDR to facilitate the reporting required by Rule 901. The Commission estimated that the annual
cost to establish connectivity to a registered SDR will be a dollar cost burden of approximately
$60,000,000, which corresponds to a dollar cost burden of $200,000 for each reporting side. 163
In addition, the Commission estimated that the aggregate annual dollar cost burden to save
relevant security-based swap information and documents will be $300,000, which will
correspond to $1,000 for each reporting side. 164 Further, the Commission estimated that, in total,
the dollar cost burden for reporting sides to comply with the reporting obligations of Rule 901
will be $60,300,000 annually, or $201,000 per reporting side per year. We estimated 1 response
per respondent per year, resulting in a dollar cost burden of $201,000 per response. This
collection is a third-party disclosure type of collection.
i. Rule 901 – Amendments
On July 14, 2016, the Commission adopted certain amendments to Regulation SBSR.
The cost burdens resulting from these amendments are summarized below.
1. Reporting Sides
The Commission does not believe that the amendments will result in any additional cost
burdens being placed upon reporting sides.
2. Reporting Sides – New Respondents

163

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per reporting side) x (300 reporting sides)] =
$60,000,000.

164

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (300 reporting sides)] = $300,000. The Commission stated its
belief that storage costs associated with saving relevant security-based swap information
and documents will not vary significantly between the first year and subsequent years.
43

The Commission estimates that new respondents may incur annual costs to capture and
maintain relevant security-based swap transaction information to comply with the reporting
requirements of Rule 901. The Commission believes that 20 entities will be subject to this cost
burden. These new respondents will need to establish and maintain connectivity to a registered
SDR to facilitate the reporting required by Rule 901. The Commission estimates that the annual
cost to establish connectivity to a registered SDR will be a dollar cost burden of approximately
$4,000,000, which corresponds to a dollar cost burden of $200,000 for each new respondent. 165
In addition, the Commission estimates that the aggregate annual dollar cost burden to save
relevant security-based swap information and documents will be $20,000, which corresponds to
$1,000 for each new reporting side. 166 Further, the Commission estimates that, in total, the
dollar cost burden for these new reporting sides to comply with the reporting obligations of Rule
901 will be $4,020,000 annually, or $201,000 per new reporting side per year. We estimate 1
response per respondent per year, resulting in a dollar cost burden of $201,000 per response.
This collection is a third-party disclosure type of collection.
3. Platforms
The Commission estimates that platforms may incur annual costs to capture and maintain
relevant security-based swap transaction information to comply with the reporting requirements
of Rule 901 similar to reporting sides. The Commission estimates that 10 platforms will be
subject to this cost burden. These platforms will need to establish and maintain connectivity to a
registered SDR to facilitate the reporting required by Rule 901. The Commission estimates that
the annual cost to establish connectivity to a registered SDR will be a dollar cost burden of
approximately $2,000,000, which corresponds to a dollar cost burden of $200,000 for each new
respondent. 167 In addition, the Commission estimates that the aggregate annual dollar cost
burden to save relevant security-based swap information and documents will be $10,000, which
165

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per reporting side) x (20 new reporting sides)] =
$4,000,000.

166

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (20 new reporting sides)] = $20,000. The Commission stated its
belief that storage costs associated with saving relevant security-based swap information
and documents will not vary significantly between the first year and subsequent years.

167

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per platform) x (10 platforms)] = $2,000,000.
44

corresponds to $1,000 for each platform. 168 Further, the Commission estimates that, in total, the
dollar cost burden for these new reporting sides to comply with the reporting obligations of Rule
901 will be $2,010,000 annually, or $201,000 per platform per year. We estimate 1 response per
respondent per year, resulting in a dollar cost burden of $201,000 per response. This collection
is a third-party disclosure type of collection.
4. Clearing Agencies
The Commission estimates that clearing agencies may incur annual costs to capture and
maintain relevant security-based swap transaction information to comply with the reporting
requirements of Rule 901 similar to reporting sides. The Commission estimates that 4 clearing
agencies will be subject to this cost burden. These clearing agencies will need to establish and
maintain connectivity to a registered SDR to facilitate the reporting required by Rule 901. The
Commission estimates that the annual cost to establish connectivity to a registered SDR will be a
dollar cost burden of approximately $1,600,000, which corresponds to a dollar cost burden of
$400,000 for each new respondent. 169 In addition, the Commission estimates that the aggregate
annual dollar cost burden to save relevant security-based swap information and documents will
be $4,000, which corresponds to $1,000 for each clearing agency. 170 Further, the Commission
estimates that, in total, the dollar cost burden for these clearing agencies to comply with the
reporting obligations of Rule 901 will be $1,604,000 annually, or $401,000 per clearing agency
per year. We estimate 1 response per respondent per year, resulting in a dollar cost burden of
$401,000 per response. This collection is a third-party disclosure type of collection.

168

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (10 platforms)] = $10,000. The Commission stated its belief that
storage costs associated with saving relevant security-based swap information and
documents will not vary significantly between the first year and subsequent years.

169

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (4 SDR connections per registered clearing agency) x (4 registered clearing
agencies platforms)] = $1,600,000.

170

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (4 registered clearing agencies)] = $4,000. The Commission
stated its belief that storage costs associated with saving relevant security-based swap
information and documents will not vary significantly between the first year and
subsequent years.
45

ii. Rule 901 – Aggregate Burdens
1. Reporting Sides
In summary, the Commission believes that reporting sides may incur an annual dollar
cost burden of approximately $60,000,000, which corresponds to a dollar cost burden of
$200,000 for each reporting side. 171 In addition, the Commission estimated that the aggregate
annual dollar cost burden to save relevant security-based swap information and documents will
be $300,000, which corresponds to $1,000 for each reporting side. 172 Further, the Commission
estimated that, in total, the dollar cost burden for reporting sides to comply with the reporting
obligations of Rule 901 will be $60,300,000 annually, or $201,000 per reporting side per year.
We estimated 1 response per respondent per year, resulting in a dollar cost burden of $201,000
per response. This collection is a third-party disclosure type of collection.
2. Reporting Sides – New Respondents
In summary, the Commission estimates that new respondents may incur an annual dollar
cost burden of approximately $4,000,000, which corresponds to a dollar cost burden of $200,000
for each new respondent. 173 In addition, the Commission estimates that the aggregate annual
dollar cost burden to save relevant security-based swap information and documents will be
$20,000, which corresponds to $1,000 for each new reporting side. 174 Further, the Commission
171

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per reporting side) x (300 reporting sides)] =
$60,000,000.

172

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (300 reporting sides)] = $300,000. The Commission stated its
belief that storage costs associated with saving relevant security-based swap information
and documents will not vary significantly between the first year and subsequent years.

173

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per reporting side) x (20 new reporting sides)] =
$4,000,000.

174

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (20 new reporting sides)] = $20,000. The Commission stated its
belief that storage costs associated with saving relevant security-based swap information
46

estimates that, in total, the dollar cost burden for these new reporting sides to comply with the
reporting obligations of Rule 901 will be $4,020,000 annually, or $201,000 per new reporting
side per year. We estimate 1 response per respondent per year, resulting in a dollar cost burden
of $201,000 per response. This collection is a third-party disclosure type of collection.
3. Platforms
In summary, the Commission estimates that platform may incur an annual dollar cost
burden of approximately $2,000,000, which corresponds to a dollar cost burden of $200,000 for
each new respondent. 175 In addition, the Commission estimates that the aggregate annual dollar
cost burden to save relevant security-based swap information and documents will be $10,000,
which corresponds to $1,000 for each platform. 176 Further, the Commission estimates that, in
total, the dollar cost burden for these new reporting sides to comply with the reporting
obligations of Rule 901 will be $2,010,000 annually, or $201,000 per platform per year. We
estimate 1 response per respondent per year, resulting in a dollar cost burden of $201,000 per
response. This collection is a third-party disclosure type of collection.
4. Registered Clearing Agencies
In summary, the Commission estimates that clearing agencies may incur an annual dollar
cost burden of approximately $1,600,000, which corresponds to a dollar cost burden of $400,000
for each new respondent. 177 In addition, the Commission estimates that the aggregate annual
dollar cost burden to save relevant security-based swap information and documents will be

and documents will not vary significantly between the first year and subsequent years.
175

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (2 SDR connections per platform) x (10 platforms)] = $2,000,000.

176

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (10 platforms)] = $10,000. The Commission stated its belief that
storage costs associated with saving relevant security-based swap information and
documents will not vary significantly between the first year and subsequent years.

177

This estimate is based on discussions of Commission staff with various market
participants, as well as the Commission’s experience regarding connectivity between
securities market participants for data reporting purposes. The Commission derived the
total estimated dollar cost burden from the following: [($100,000 hardware- and
software-related expenses, including necessary back-up and redundancy, per SDR
connection) x (4 SDR connections per registered clearing agency) x (4 registered clearing
agencies)] = $1,600,000.
47

$4,000, which corresponds to $1,000 for each clearing agency. 178 Further, the Commission
estimates that, in total, the dollar cost burden for these clearing agencies to comply with the
reporting obligations of Rule 901 will be $1,604,000 annually, or $401,000 per clearing agency
per year. We estimate 1 response per respondent per year, resulting in a dollar cost burden of
$401,000 per response. This collection is a third-party disclosure type of collection.
b.

Public Dissemination of Transaction Reports

The burdens associated with Rule 902 of Regulation SBSR remain unchanged from those
burdens identified in the Regulation SBSR Adopting Release. Therefore, the Commission
believes that its previously adopted PRA analysis continues to apply.
The Commission previously stated its belief that a registered SDR will be able to
integrate the capability to publicly disseminate security-based swap transaction reports required
under Rule 902 as part of its overall system development for transaction data. Based on
discussions with industry participants, the Commission estimated that, to implement and comply
with the public dissemination requirement of Rule 902, each registered SDR will incur a dollar
cost burden equal to an additional 20% of the first-year and ongoing burdens discussed in the
SDR Registration Proposing Release. 179 The Commission estimated that each registered SDR
will incur $10,000,000 in initial one-time information technology costs. The Commission
previously estimated that the total initial cost for all SDR respondents to comply with Rule 902
will be $20,000,000, or $2,000,000 per registered SDR. 180 The Commission further estimated
that each registered SDR will incur $6,000,000 in ongoing information technology costs. The
Commission continues to believe that the total annual cost to comply with Rule 902 will be
$12,000,000, or $1,200,000 per registered SDR per year. 181 This collection is a third-party
disclosure type of collection.
178

This estimate is based on discussions of Commission staff with various market
participants and is calculated as follows: [($250/gigabyte of storage capacity) x (4
gigabytes of storage) x (4 registered clearing agencies)] = $4,000. The Commission
stated its belief that storage costs associated with saving relevant security-based swap
information and documents will not vary significantly between the first year and
subsequent years.

179

See SDR Registration Proposing Release, 75 FR 77348-50. See also SDR Adopting
Release, 80 FR 14523-4. This estimate was based on discussions with industry members
and market participants, including entities that may register as SDRs under Title VII, and
includes time necessary to design and program a registered SDR’s system to calculate
and disseminate initial and subsequent trade reports.

180

The Commission derived the total estimated initial dollar cost burden from the following:
[($10,000,000 in information technology costs) x (0.2) x (10 registered SDRs)] =
$20,000,000.

181

The Commission derived the total estimated initial dollar cost burden from the following:
[($6,000,000 in information technology costs) x (0.2) x (10 registered SDRs)] =
$12,000,000.
48

c.

Use of LEIs – Rule 903

As is discussed above, the Commission estimated that, for purposes of the PRA, there
may be as many as 1,300 participant respondents that will be required to obtain a GLEIS LEI as
a result of Rule 903(a) and the Commission’s recognition of the GLEIS—which issues legal
entity identifiers—as an internationally recognized-standards setting body that meets the
standards of Rule 903. In addition to the hourly burden associated with obtaining and renewing
the LEI, the Commission estimated that the cost of registering a new LEI with a local operation
unit of the GLEIS is approximately $220, with an additional cost of $120 per year for
maintaining an LEI. 182 As a result, the Commission estimated that the three-year cost of
obtaining and maintaining an LEI will be $460 per participant, or $153 per year, for a total cost
of $198,900 for all participants who do not already have GLEIS LEIs. 183 The Commission
notes, however, that for those 3,500 participants that have already obtained an LEI, the annual
maintenance cost will be $120 per participant for a total cost of $420,000 per year. These
collections are third-party disclosure type of collections.
d.

Substituted Compliance – Rule 908

The Commission estimates that the total paperwork burden associated with submitting all
anticipated requests for substituted compliance determinations with respect to regulatory
reporting and public dissemination will be approximately $1,120,000 for 14 requests. 184
Because only a small number of jurisdictions have substantial OTC derivatives markets
and are implementing OTC derivatives reforms, the Commission estimates that it will receive
approximately 10 requests in the first year for substituted compliance determinations with
respect to regulatory reporting and public dissemination pursuant to Rule 908(c)(2)(ii) of
Regulation SBSR. Assuming 10 requests in the first year, the Commission staff estimates an
aggregated burden for the first year will be $800,000 for the services of outside professionals. 185
182

See “GMEI Utility: Frequently Asked Questions” (available at:
https://www.gmeiutility.org/frequentlyAskedQuestions.jsp, detailing registration and
maintenance costs for LEIs issued by GMEI, an endorsed pre-LOU of the interim GLEIS,
last visited June 24, 2016.)

183

The Commission derived this estimate as follows: [$220/initial registration cost per
participant + ($120/annual maintenance cost per participant x 2 (accounting for years 2
and 3) = $460 (three year cost per participant), or $153/year/participant]. The resulting
total cost for all 1,300 participants will be $198,900 ($153 x 1,300 participants who do
not already have GLEIS LEIs).

184

The Commission estimated that the paperwork burden associated with making a
substituted compliance request pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will be
approximately $80,000 for the services of outside professionals (based on (200 hours of
outside counsel time) x ($400/hour)).

185

The Commission estimated that the paperwork burden associated with making a
substituted compliance request pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will be
$800,000 for the services of outside professionals (based on (200 hours of outside
49

The Commission estimates that it will receive 2 requests for substituted compliance
determinations pursuant to Rule 908(c)(2)(ii) in each subsequent year. Assuming the same
approximate time and costs, the aggregate burden for each year following the first year will be
$160,000 for the services of outside professionals. 186 Because the Commission anticipates that
entities will request substituted compliance beyond the initial implementation of Regulation
SBSR, the Commission believes that it is appropriate to characterize these burdens as annual
recurring burdens. However, the Commission also believes that these burdens will largely occur
in the first year of implementation. As a result, the commission believes that the average annual
dollar cost of Rule 908(c) will be approximately $373,334. 187
14.

Cost to the Federal Government

The Commission may incur costs related to the request, receipt, and storage of securitybased swap transaction data. The Commission could potentially incur significant costs in
analyzing the data. However, at this time, the Commission is unable to quantify these costs.
15.

Changes in Burden

Regulation SBSR was adopted in the Regulation SBSR Adopting Release and amended
in the Regulation SBSR Amendments Adopting Release. The Commission adopted the
amendments substantially as proposed.
16.

Information Collection Planned for Statistical Purposes

Not applicable.
17.

Approval to Omit OMB Expiration Date

Not applicable.
18.

Exceptions to Certification Statement

Not applicable.

counsel time) x ($400) x (10 respondents)).
186

The Commission staff estimated that the paperwork burden associated with making a
substituted compliance request pursuant to Rule 908(c)(2)(ii) of Regulation SBSR will be
$160,000 for the services of outside professionals (based on (200 hours of outside
counsel time) x ($400) x (2 respondents)).

187

The Commission estimates that the average annual dollar cost associated with making 14
substituted compliance requests, during the first three years following implementation,
will be up to approximately $373,334 ((($80,000 for services of outside professionals) x
(14 respondents))/3 years).
50

B.

COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This collection does not involve statistical methods.

51

Summary of Hourly Burdens
Rule

Type of Burden

Entity Type

# Entities
Impacted

901
902
904
905
906
907
Totals

Recordkeeping
Third-Party
Third-Party
Third-Party
Third-Party
Recordkeeping

SDR
SDR
SDR
SDR
SDR
SDR

10
10
10
10
10
10

Annual
Responses
per Entity
2
1
12
1
160,000
1

Initial
Burden per
Entity
120.00
8,400.00
0.00
730.00
112.00
16,500.00

Initial Burden
Annualized per
Entity
40.00
2,800.00
0.00
243.33
37.33
5,500.00

Ongoing
Burden per
Entity
152.00
5,040.00
36.00
1,460.00
308.00
33,000.00

Annual Burden
Per Entity per
Response
96.00
7,840.00
3.00
1,703.33
0.002158
38,500.00

Total Annual
Burden Per
Entity
192.00
7,840.00
36.00
1,703.33
345.33
38,500.00
48,616.67

1,920.00
78,400.00
360.00
17,033.33
3,453.33
385,000.00
486,166.67

Total Initial
Burden For All
Respondents
1,200.00
84,000.00
0.00
7,300.00
1,120.00
165,000.00
258,620.00

Total Ongoing
Burden For All
Respondents
1,520.00
50,400.00
360.00
14,600.00
3,080.00
330,000.00
399,960.00

901
905
Totals

Third-Party
Third-Party

Platforms
Platforms

10
10

1
1

723.00
51.40

241.00
17.13

726.00
24.8

967.00
41.93

967.00
41.93
1,008.93

9,670.00
419.33
10,089.33

7,230.00
514.00
7,744.00

7,260.00
248.00
7,508.00

901
905
Totals

Third-Party
Third-Party

Clearing Agencies
Clearing Agencies

4
4

1
365

707.00
103.40

235.67
34.47

1,754.00
76.80

1,989.67
0.30

1,989.67
111.27
2,100.93

7,958.67
445.07
8,403.73

2,828.00
413.60
3,241.60

7,016.00
307.20
7,323.20

906(c)

Recordkeeping

Registered Clearing
Agencies and
Platforms

14

1

216.00

72.00

120.00

192.00

192.00

2,688.00

3,024.00

1,680.00

192.00

2,688.00

3,024.00

1,680.00

Totals
903(a)
903(a)
Totals

Third-Party
Third-Party

Participants w/o LEIs
Participants w/ LEIs

1,300
3,500

1
1

901
905
Totals

Third-Party
Third-Party

Reporting Sides
Reporting Sides

300
300

901

Third-Party

Reporting Sides –
New Respondents

Third-Party

Reporting Sides –
New Respondents

905

1.00
0.00

0.33
0.00

0.67
1.00

1.00
1.00

1.00
1.00
2.00

1,300.00
3,500.00
4,800.00

1,300.00
0.00
1,300.00

866.67
3,500.00
4,366.67

1
365

723.00
50.00

241.00
16.67

699.00
23.50

940.00
0.110046

940.00
40.17
980.17

282,000.00
12,050.00
294,050.00

216,900.00
15,000.00
231,900.00

209,700.00
7,050.00
216,750.00

20

1

707.00

235.67

654.11

889.78

889.78

17,806.53

14,140.00

13,093.20

20

365

48.40

16.13

21.80

0.10393

Totals

906(c)

Recordkeeping

Security-Based Swap
Dealers and Major
Security-Based Swap
Participants

55

1

216.00

72.00

120.00

192.00

Totals
906(c)

Recordkeeping

Registered BrokerDealer Participants

Total Burden

20

1

216.00

72.00

120.00

192.00

Totals

37.93

758.67

968.00

436.00

928.26

18,565.20

15,108.00

13,529.20

192.00

10,560.00

11,880.00

6,600.00

192.00

10,560.00

11,880.00

6,600.00

192.00

3,840

4,320.00

2,400.00

192.00

3,840.00

4,320.00

2,400.00

905
906(a)
906(b)
Totals

Third-Party
Third-Party
Third-Party

Participants
Participants
Participants

4,800
4,800
2,880

365
463.6
2

0.00
0.00
0.00

0.00
0.00
0.00

208.05
46.36
2.00

0.57
0.10
1.00

208.05
46.36
2.00
256.41

998,640.00
222,504.00
5,760.00
1,226,904.00

0.00
0.00
0.00
0.00

998,640.00
222,504.00
5,760.00
1,226,904.00

908
Totals

Reporting

Requesting Entities

14

1

80.00

26.67

0.00

26.67

26.67
26.67

373.33
373.33
2,066,440.27

1,120.00
1,120.00
538,257.60

0.00
0.00
1,887,021.07

TOTAL HOURLY BURDEN FOR ALL RESPONDENTS

Summary of Dollar Costs
Rule

Type of Burden

Entity Type

# Entities
Impacted

Annual
Responses
per Entity

Initial Cost
per Entity

902

Third-Party

SDR

10

1

$2,000,000

Initial Cost
Annualized per
Entity
$666,666.67

Annual
Ongoing
Cost per
Entity
$1,200,000.
00

Annual Cost
Per Entity per
Response
$1,866,666.67

Totals

Total Annual
Cost Per Entity

Total Cost

Total Initial Cost
For All
Respondents

Total Ongoing
Cost For All
Respondents

$1,866,666.67

$18,666,666.67

$20,000,000.00

$12,000,000.00

$1,866,666.67

$18,666,666.67

$20,000,000.00

$12,000,000.00

$0.00
$0.00

$60,300,000.00
$60,300,000.00

901
Totals

Third-Party

Reporting Sides

300

1

0

$0.00

$201,000.00

$201,000.00

$201,000.00
$201,000.00

$60,300,000.00
$60,300,000.00

901

Third-Party

Reporting Sides –
New Respondents

20

1

0

$0.00

$201,000.00

$201,000.00

$201,000.00

$4,020,000.00

$0.00

$4,020,000.00

$201,000.00

$4,020,000.00

$0.00

$4,020,000.00

Totals
901
Totals

Third-Party

Platforms

10

1

0

$0.00

$201,000.00

$201,000.00

$201,000.00
$201,000.00

$2,010,000.00
$2,010,000.00

$0.00
$0.00

$2,010,000.00
$2,010,000.00

901
Totals

Third-Party

Clearing Agencies

4

1

0

$0.00

$401,000.00

$401,000.00

$401,000.00
$401,000.00

$1,604,000.00
$1,604,000.00

$0.00
$0.00

$1,604,000.00
$1,604,000.00

903(a) [2]
903(a)
Totals

Third-Party
Third-Party

Participants w/o LEIs
Participants w/ LEIs

1,300
3,500

1
1

$220
$0

$73.33
$0.00

$80.00
$120.00

$153.33
$80.00

$153.33
$80.00
$233.33

$199,333.33
$280,000.00
$479,333.33

$286,000.00
$0.00
$286,000.00

$104,000.00
$420,000.00
$524,000.00

908
Totals

Reporting

Requesting Entities

14

1

$80,000

$26,666.67

$0.00

$26,666.67

$26,666.67
$26,666.67

$373,333.33
$373,333.33

$1,120,000.00
$1,120,000.00

$0.00
$0.00

$87,453,333.33

$21,406,000.00

$80,458,000.00

TOTAL COST FOR ALL RESPONDENTS

2