60 day notice

Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices
SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.

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Extension:
Rules 17h–1T and 17h–2T, SEC File No.
270–359, OMB Control No. 3235–0410.

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rules 17h–1T and 17h–
2T (17 CFR 240.17h–1T and 17 CFR
240.17h–2T), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to
the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 17h–1T requires a covered
broker-dealer to maintain and preserve
records and other information
concerning certain entities that are
associated with the broker-dealer. This
requirement extends to the financial and
securities activities of the holding
company, affiliates and subsidiaries of
the broker-dealer that are reasonably
likely to have a material impact on the
financial or operational condition of the
broker-dealer. Rule 17h–2T requires a
covered broker-dealer to file with the
Commission quarterly reports and a
cumulative year-end report concerning
the information required to be
maintained and preserved under Rule
17h–1T.
The collection of information required
by Rules 17h–1T and 17h–2T,
collectively referred to as the ‘‘risk
assessment rules’’, is necessary to
enable the Commission to monitor the
activities of a broker-dealer affiliate
whose business activities are reasonably
likely to have a material impact on the
financial and operational condition of
the broker-dealer. Without this
information, the Commission would be
unable to assess the potentially
damaging impact of the affiliate’s
activities on the broker-dealer.
There are currently 285 respondents
that must comply with Rules 17h–1T
and 17h–2T. Each of these 285
respondents are estimated to require 10
hours per year to maintain the records
required under Rule 17h–1T, for an
aggregate estimated annual burden of
2,850 hours (285 respondents × 10
hours). In addition, each of these 285

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respondents must make five annual
responses under Rule 17h–2T. These
five responses are estimated to require
14 hours per respondent per year for an
aggregate estimated annual burden of
3,990 hours (285 respondents × 14
hours).
In addition, new respondents must
draft an organizational chart required
under Rule 17h–1T and establish a
system for complying with the risk
assessment rules. The staff estimates
that drafting the required organizational
chart requires one hour and establishing
a system for complying with the risk
assessment rules requires three hours.
Based on the reduction in the number
of filers in recent years, the staff
estimates there will be zero new
respondents, and thus, a corresponding
estimated burden of zero hours for new
respondents. Thus, the total compliance
burden per year is approximately 6,840
burden hours (2,850 hours + 3,990
hours).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden of the collection
of information; (c) ways to enhance the
quality, utility, and clarity of the
information collected; and (d) ways to
minimize the burden of the collection of
information on respondents, including
through the use of automated collection
techniques or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: October 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23199 Filed 10–23–18; 8:45 am]
BILLING CODE 8011–01–P

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53689

SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: US Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rules 3a68–2 and 3a68–4(c)
SEC File No. 270–641, OMB Control No.
3235–0685

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (‘‘SEC’’) is
soliciting comments on the existing
collection of information provided for
Rules 3a68–2 and 3a68–4(c). The SEC
plans to submit this existing collection
of information to the Office of
Management and Budget (‘‘OMB’’) for
extension and approval.
Rule 3a68–2 creates a process for
interested persons to request a joint
interpretation by the SEC and the
Commodity Futures Trading
Commission (‘‘CFTC’’) (together with
the SEC, the ‘‘Commissions’’) regarding
whether a particular instrument (or
class of instruments) is a swap, a
security-based swap, or both (i.e., a
mixed swap). Under Rule 3a68–2, a
person provides to the Commissions a
copy of all material information
regarding the terms of, and a statement
of the economic characteristics and
purpose of, each relevant agreement,
contract, or transaction (or class
thereof), along with that person’s
determination as to whether each such
agreement, contract, or transaction (or
class thereof) should be characterized as
a swap, security-based swap, or both
(i.e., a mixed swap). The Commissions
also may request the submitting person
to provide additional information.
The SEC expects 25 requests pursuant
to Rule 3a68–2 per year. The SEC
estimates the total paperwork burden
associated with preparing and
submitting each request would be 20
hours to retrieve, review, and submit the
information associated with the
submission. This 20 hour burden is
divided between the SEC and the CFTC,
with 10 hours per response regarding
reporting to the SEC and 10 hours of
response regarding third party
disclosure to the CFTC.1 The SEC
estimates this would result in an
1 The burdens imposed by the CFTC are included
in this collection of information.

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Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices

aggregate annual burden of 500 hours
(25 requests × 20 hours/request).
The SEC estimates that the total costs
resulting from a submission under Rule
3a68–2 would be approximately $12,000
for outside attorneys to retrieve, review,
and submit the information associated
with the submission. The SEC estimates
this would result in aggregate costs each
year of $300,000 (25 requests × 30
hours/request × $400).
Rule 3a68–4(c) establishes a process
for persons to request that the
Commissions issue a joint order
permitting such persons (and any other
person or persons that subsequently
lists, trades, or clears that class of mixed
swap) to comply, as to parallel
provisions only, with specified parallel
provisions of either the Commodity
Exchange Act (‘‘CEA’’) or the Securities
Exchange Act of 1934 (‘‘Exchange Act’’),
and related rules and regulations
(collectively ‘‘specified parallel
provisions’’), instead of being required
to comply with parallel provisions of
both the CEA and the Exchange Act.
The SEC expects ten requests
pursuant to Rule 3a68–4(c) per year.
The SEC estimates that nine of these
requests will have also been made in a
request for a joint interpretation
pursuant to Rule 3a68–2, and one will
not have been. The SEC estimates the
total burden for the one request for
which the joint interpretation pursuant
to 3a68–2 was not requested would be
30 hours, and the total burden
associated with the other nine requests
would be 20 hours per request because
some of the information required to be
submitted pursuant to Rule 3a68–4(c)
would have already been submitted
pursuant to Rule 3a68–2. The burden in
both cases is evenly divided between
the SEC and the CFTC.
The SEC estimates that the total costs
resulting from a submission under Rule
3a68–4(c) would be approximately
$20,000 for the services of outside
attorneys to retrieve, review, and submit
the information associated with the
submission of the one request for which
a request for a joint interpretation
pursuant to Rule 3a68–2 was not
previously made (1 request × 50 hours/
request × $400). For the nine requests
for which a request for a joint
interpretation pursuant to Rule 3a68–2
was previously made, the SEC estimates
the total costs associated with preparing
and submitting a party’s request
pursuant to Rule 3a68–4(c) would be
$6,000 less per request because, as
discussed above, some of the
information required to be submitted
pursuant to Rule 3a68–4(c) already
would have been submitted pursuant to
Rule 3a68–2. The SEC estimates this

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would result in an aggregate cost each
year of $126,000 for the services of
outside attorneys (9 requests × 35 hours/
request × $400).
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the SEC,
including whether the information shall
have practical utility; (b) the accuracy of
the SEC’s estimates of the burden of the
proposed collection of information; (c)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (d) ways to minimize the
burden of the collection of information
on respondents, including through the
use of automated collection techniques
or other forms of information
technology. Consideration will be given
to comments and suggestions submitted
in writing within 60 days of this
publication.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
Please direct your written comments
to: Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
Mailbox@sec.gov.
Dated: October 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018–23206 Filed 10–23–18; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 15c3–4, SEC File No. 270–441, OMB
Control No. 3235–0497

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the collection of information
provided for in Rule 15c3–4 (17 CFR
240.15c3–4) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.). The Commission plans to submit
this existing collection of information to

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the Office of Management and Budget
(‘‘OMB’’) for extension and approval.
Rule 15c3–4 requires certain brokerdealers that are registered with the
Commission as OTC derivatives dealers,
or who compute their net capital
charges under Appendix E to Rule
15c3–1 (17 CFR 240.15c3–1) (‘‘ANC
firms’’), to establish, document, and
maintain a system of internal risk
management controls. The Rule sets
forth the basic elements for an OTC
derivatives dealer or an ANC firm to
consider and include when establishing,
documenting, and reviewing its internal
risk management control system, which
are designed to, among other things,
ensure the integrity of an OTC
derivatives dealer’s or an ANC firm’s
risk measurement, monitoring, and
management process, to clarify
accountability at the appropriate
organizational level, and to define the
permitted scope of the dealer’s activities
and level of risk. The Rule also requires
that management of an OTC derivatives
dealer or an ANC firm must periodically
review, in accordance with written
procedures, the firm’s business
activities for consistency with its risk
management guidelines.
The staff estimates that the average
amount of time a new OTC derivatives
dealer will spend establishing and
documenting its risk management
control system is 2,000 hours and that,
on average, a registered OTC derivatives
dealer will spend approximately 200
hours each year to maintain (e.g.,
reviewing and updating) its risk
management control system.1 Currently,
three firms are registered with the
Commission as OTC derivatives dealers.
The staff estimates that approximately
six additional OTC derivatives dealers
may become registered within the next
three years. Thus, the estimated
annualized burden would be 600 hours
for the three OTC derivatives dealers
currently registered with the
Commission to maintain their risk
management control systems,2 4,000
hours for the six new OTC derivatives
dealers to establish and document their
risk management control systems,3 and
1,200 hours for the six new OTC
derivatives dealers to maintain their risk
management control systems.4
1 This notice does not cover the hour burden
associated with ANC firms, because the hour
burden for ANC firms is included in the Paperwork
Reduction Act collection for Rule 15c3–1, which
requires ANC firms to comply with specific
provisions of Rule 15c3–4 in Appendix E to Rule
15c3–1. See 17 CFR 240.15c3–1(a)(7)(iii), 17 CFR
240.15c3–1e(a)(1)(ii), and 17 CFR 240.15c3–
1e(a)(1)(viii)(C).
2 (200 hours × 3 firms) = 600.
3 ((2,000 hours/3 years) × 6 firms) = 4,000.
4 (200 hours × 6 firms) = 1,200.

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