30 Day Notice

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Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices

At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:

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Electronic Comments
• Use the Commission’s internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
CboeBYX–2022–013 on the subject line.
Paper Comments
• Send paper comments in triplicate
to Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549–1090.
All submissions should refer to File
Number SR–CboeBYX–2022–013. This
file number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filing also will be available for
inspection and copying at the principal
office of the Exchange. All comments
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).

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received will be posted without change.
Persons submitting comments are
cautioned that we do not redact or edit
personal identifying information from
comment submissions. You should
submit only information that you wish
to make available publicly. All
submissions should refer to File
Number SR–CboeBYX–2022–013 and
should be submitted on or before May
16, 2022.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.29
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–08682 Filed 4–22–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–329, OMB Control No.
3235–0371]

Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736.
Extension:
Rule 15a–6

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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 15a–6 (17 CFR 240.15a–6) under
the Securities Exchange Act of 1934 (15
U.S.C. 78a et seq.).
Rule 15a-6 provides conditional
exemptions from the requirement to
register as a broker-dealer pursuant to
Section 15 of the Securities Exchange
Act for foreign broker-dealers that
engage in certain specified activities
involving U.S. persons. In particular,
Rule 15a–6(a)(3) provides an exemption
from broker-dealer registration for
foreign broker-dealers that solicit and
effect transactions with or for U.S.
institutional investors or major U.S.
institutional investors through a
registered broker-dealer, provided that
the U.S. broker-dealer, among other
things, obtains certain information
about, and consents to service of process
from, the personnel of the foreign
broker-dealer involved in such
29 17

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CFR 200.30–3(a)(12).

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transactions, and maintains certain
records in connection therewith.
These requirements are intended to
ensure (a) that the registered brokerdealer will receive notice of the identity
of, and has reviewed the background of,
foreign personnel who will contact U.S.
investors, (b) that the foreign brokerdealer and its personnel effectively may
be served with process in the event
enforcement action is necessary, and (c)
that the Commission has ready access to
information concerning these persons
and their U.S. securities activities.
Commission staff estimates that
approximately 2,000 U.S. registered
broker-dealers will spend an average of
two hours of clerical staff time and one
hour of managerial staff time per year
obtaining the information required by
the rule, resulting in a total aggregate
burden of 6,000 hours per year for
complying with the rule. Assuming an
hourly cost of $72 1 for a compliance
clerk and $319 2 for a compliance
manager, the resultant total internal
labor cost of compliance for the
respondents is $926,000 per year (2,000
entities × ((2 hours/entity × $72/hour) +
(1 hour per entity × $319/hour)) =
$926,000).
In general, the records to be
maintained under Rule 15a–6 must be
kept for the applicable time periods as
set forth in Rule 17a–4 (17 CFR
240.17a–4) under the Exchange Act or,
with respect to the consents to service
of process, for a period of not less than
six years after the applicable person
ceases engaging in U.S. securities
activities. Reliance on the exemption set
forth in Rule 15a–6 is voluntary, but if
a foreign broker-dealer elects to rely on
such exemption, the collection of
information described therein is
mandatory. The collection does not
involve confidential information.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
under the PRA unless it displays a
currently valid OMB control number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
1 The hourly rate used for a compliance clerk was
from SIFMA’s Office Salaries in the Securities
Industry 2013, modified by Commission staff to
account for an 1,800 hour work-year and multiplied
by 2.93 to account for bonuses, firm size, employee
benefits and overhead.
2 The hourly rate used for a compliance manager
was from SIFMA’s Management & Professional
Earnings in the Securities Industry 2013, modified
by Commission staff to account for an 1,800 hour
work-year and multiplied by 5.35 to account for
bonuses, firm size, employee benefits and overhead.

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Federal Register / Vol. 87, No. 79 / Monday, April 25, 2022 / Notices
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice to (i) www.reginfo.gov/public/do/
PRAMain and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: PRA_Mailbox@sec.gov.
Dated: April 19, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–08666 Filed 4–22–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94745; File No. SR–FICC–
2022–002]

Self-Regulatory Organizations; Fixed
Income Clearing Corporation; Notice of
Filing of Proposed Rule Change To
Revise the MBSD Clearing Rules To
Move Certain DRC Items (Mark-toMarket Items, Cash Obligation Items
and Accrued Principal and Interest)
From the Required Fund Deposit
Calculation to Cash Settlement, Revise
Certain Thresholds and Parameters in
the Intraday Mark-to-Market Charge,
Establish a New Intraday VaR Charge
and Make Certain Other Clarifications
April 19, 2022.

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Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’) 1 and Rule 19b–4 thereunder,2
notice is hereby given that on April 8,
2022, Fixed Income Clearing
Corporation (‘‘FICC’’) filed with the
Securities and Exchange Commission
(‘‘Commission’’) the proposed rule
change as described in Items I, II and III
below, which Items have been prepared
by the clearing agency. The Commission
is publishing this notice to solicit
comments on the proposed rule change
from interested persons.
I. Clearing Agency’s Statement of the
Terms of Substance of the Proposed
Rule Change
FICC is proposing to amend the
Mortgage-Backed Securities Division
(‘‘MBSD’’) Clearing Rules (‘‘MBSD
Rules’’) 3 to (1)(a) delete the
Deterministic Risk Component (‘‘DRC’’)
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Capitalized terms not otherwise defined herein
are defined in the MBSD Rules, as applicable,
available at http://www.dtcc.com/legal/rules-andprocedures.
2 17

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from the Required Fund Deposit
calculation, (b) move certain items
currently in the DRC (Mark-to-Market
items, cash obligation items and accrued
principal and interest) to Cash
Settlement and (c) retain the six days’
interest for Fails item currently in the
DRC calculation as a separate part of the
Required Fund Deposit, (2) revise the
definition of Intraday Mark-to Market
Charge to reflect the movement of the
DRC items to Cash Settlement and to
revise certain thresholds and
parameters, (3) establish a new intraday
VaR Charge and (4) make other
clarifying changes in the MBSD Rules,
as described in more detail below.
The proposal would also make certain
conforming changes to the Methodology
and Model Operations Document—
MBSD Quantitative Risk Model (the
‘‘QRM Methodology’’) in order to
implement the proposed changes to the
MBSD Rules, which changes are
attached hereto [sic] as Exhibit 5B, as
described in greater detail below.4
II. Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
In its filing with the Commission, the
clearing agency included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
clearing agency has prepared
summaries, set forth in sections A, B,
and C below, of the most significant
aspects of such statements.
4 Because FICC requested confidential treatment,
the QRM Methodology was filed separately with the
Secretary of the U.S. Securities and Exchange
Commission (‘‘Commission’’) as part of proposed
rule change SR–FICC–2016–007 (the ‘‘VaR Filing’’).
See Securities Exchange Act Release No. 79868
(January 24, 2017), 82 FR 8780 (January 30, 2017)
(SR–FICC–2016–007) (‘‘VaR Filing Approval
Order’’). FICC also filed the VaR Filing proposal as
an advance notice pursuant to Section 806(e)(1) of
the Payment, Clearing, and Settlement Supervision
Act of 2010 (12 U.S.C. 5465(e)(1)) and Rule 19b–
4(n)(1)(i) under the Securities Exchange Act of
1934, as amended (‘‘Act’’) (17 CFR 240.19b–
4(n)(1)(i)), with respect to which the Commission
issued a Notice of No Objection. See Securities
Exchange Act Release No. 79843 (January 19, 2017),
82 FR 8555 (January 26, 2017) (SR–FICC–2016–
801). The QRM Methodology has been amended
following the VaR Filing Approval Order. See
Securities Exchange Act Release Nos. 85944 (May
24, 2019), 84 FR 25315 (May 31, 2019) (SR–FICC–
2019–001), 90182 (October 14, 2020) 85 FR 66630
(October 20, 2020) (SR–FICC–2020–009) and 92303
(June 30, 2021) 86 FR 35854 (July 7, 2021) (SR–
FICC–2020–017).

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24369

(A) Clearing Agency’s Statement of the
Purpose of, and Statutory Basis for, the
Proposed Rule Change
1. Purpose
As described in greater detail below,
FICC is proposing changes to the MBSD
Rules that would move mark-to-market
components from Clearing Members’
Required Fund Deposits to Cash
Settlement. While the proposed change
would impact, in some cases, the form
of Clearing Members’ payments with
respect to these obligations, a study
described in greater detail below
indicated that the impact to Clearing
Members with debit balances would not
be material as compared to their total
Clearing Fund obligations.
In connection with this proposed
change, the proposal would also make
conforming changes to the definition of
‘‘Intraday Mark-to-Market Charge’’ and
would clarify the MBSD Rules regarding
the thresholds and parameters used in
collecting this charge. An impact study
based on the hypothetical assumption
that MBSD would reduce the thresholds
to the proposed floors, as described in
greater detail below, indicated the
proposal could increase total average
Intraday Mark-to-Market Charges
collected by FICC by an amount that
represented approximately 2.8% of the
total average Clearing Fund collected on
those days.
Finally, the proposal would provide
greater transparency to Clearing
Members by introducing a formal
Intraday VaR Charge, which FICC
currently collects as a special charge in
certain market conditions. Again, a
study conducted to approximate the
impact of this proposed change
indicated it could result in an increase
in amounts collected by FICC, but that
amount represented approximately less
than 0.1% of total average Clearing
Fund collected on the study dates, as
described in greater detail below.
These proposed changes to the MBSD
Rules are summarized below and
described in greater detail in this filing:
(1) Move Mark-to-Market related
charges from the Required Fund Deposit
calculation to Cash Settlement. FICC is
proposing to move all of the mark-tomarket components currently in the
DRC (except for six days’ interest for
Fails) 5 to Cash Settlement. FICC
proposes to accomplish this by deleting
the DRC from the Required Fund
Deposit calculation and moving certain
DRC items (Mark-to-Market items, cash
5 A Fail is a Transaction the clearing of which has
not occurred or has not been reported to FICC as
having occurred on the Contractual Settlement
Date, or expiration date, as applicable. See
definition of ‘‘Fail’’ in MBSD Rule 1, supra note 3.

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