60 day notice

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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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Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices
Accordingly, the staff estimates the total
annualized burden associated with Rule
15c3–4 for the six OTC derivatives
dealers will be approximately 5,800
hours annually.
The staff believes that the internal
cost of complying with Rule 15c3–4 will
be approximately $314 per hour.5 This
per hour cost is based upon an annual
average hourly salary for a compliance
manager who would be responsible for
ensuring compliance with the
requirements of Rule 15c3–4.
Accordingly, the total annualized
internal cost of compliance for all
affected OTC derivatives dealers is
estimated to be $1,821,200.6
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 shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
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
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. 2018–23207 Filed 10–23–18; 8:45 am]

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BILLING CODE 8011–01–P

5 The $314 per hour salary figure for a compliance
manager is from SIFMA’s Management &
Professional Earnings in the Securities Industry
2013, modified by Commission staff to account for
an 1800-hour work-year and multiplied by 5.35 to
account for bonuses, firm size, employee benefits
and overhead.
6 5,800 hours × $314 per hour = $1,821,200.

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SECURITIES AND EXCHANGE
COMMISSION
Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: U.S. Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Order Granting a Conditional Exemption
Under the Securities Exchange Act of
1934 from the Confirmation
Requirements of Exchange Act Rule 10b–
10(a) for Certain Transactions in Money
Market Funds, SEC File No. 270–792;
OMB Control No. 3235–0739

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 collection of information
summarized below. The Commission
plans to submit this existing collection
of information to the Office of
Management and Budget for extension
and approval: Order Granting a
Conditional Exemption under the
Securities Exchange Act of 1934 from
the Confirmation Requirements of
Exchange Act Rule 10b–10(a) for Certain
Transactions in Money Market Funds
(17 CFR 240.10b–10(a)).
Rule 10b–10 under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) generally requires broker-dealers to
provide customers with specified
information relating to their securities
transactions at or before the completion
of the transactions. Rule 10b–10(b),
however, provides an exception from
this requirement for certain transactions
in money market funds that attempt to
maintain a stable net asset value when
no sales load or redemption fee is
charged. The exception permits brokerdealers to provide transaction
information to money market fund
shareholders on a monthly, rather than
immediate, basis, subject to the
conditions. Amendments to Rule 2a–7
of the Investment Company Act of 1940
(‘‘Investment Company Act’’) (15 U.S.C.
80a–1 et seq.) among other things,
means, absent an exemption, brokerdealers would not be able to continue to
rely on the exception under Exchange
Act Rule 10b–10(b) for transactions in
money market funds operating in
accordance with Rule 2a–7(c)(1)(ii).1
1 See generally Money Market Fund Reform;
Amendments to Form PF, Securities Act Release
No. 9408, Investment Advisers Act Release No.
3616, Investment Company Act Release No. 30551
(June 5, 2013), 78 FR 36834, 36934 (June 19, 2013);
see also Exchange Act Rule 10b–10(b)(1), 17 CFR

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53691

In 2015, the Commission issued an
Order Granting a Conditional
Exemption under the Securities
Exchange Act of 1934 From The
Confirmation Requirements of Exchange
Act Rule 10b–10(a) For Certain
Transactions In Money Market Funds
(‘‘Order’’) 2 which allows broker-dealers,
subject to certain conditions, to provide
transaction information to investors in
any money market fund operating
pursuant to Rule 2a–7(c)(1)(ii) on a
monthly basis in lieu of providing
immediate confirmations as required
under Exchange Act Rule 10b–10(a)
(‘‘the Exemption’’). Accordingly, to be
eligible for the Exemption, a brokerdealer must (1) provide an initial
written notification to the customer of
its ability to request delivery of
immediate confirmations consistent
with the written notification
requirements of Exchange Act Rule 10b–
10(a), and (2) not receive any such
request to receive immediate confirms
from the customer. As of March 31,
2018, the Commission estimates there
are approximately 162 broker-dealers
that clear customer transactions or carry
customer funds and securities who
would be responsible for providing
customer confirmations. The
Commission estimates that the cost of
the ongoing notification requirements
would be minimal, approximately 5% of
the initial burden which was previously
estimated to be 36 hours per brokerdealer, or approximately 1.8 hours per
broker-dealer per year to provide
ongoing notifications or a total burden
of 292 hours annually for the 162
carrying broker-dealers.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
agency, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimate 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
240.10b–10(b)(1) (limiting alternative monthly
reporting to money market funds that attempt to
maintain a stable NAV).
2 See Order Granting a Conditional Exemption
Under the Securities Exchange Act of 1934 From
the Confirmation Requirements of Exchange Act
Rule 10b–10(a) for Certain Transactions in Money
Market Funds, Exchange Act Release No. 34–76480
(Nov. 19, 2015), 80 FR 73849 (Nov. 25, 2015).

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