Adopting Release Supporting Statement (3235-0788)

Adopting Release Supporting Statement (3235-0788).pdf

Reporting of Securities Loans

OMB: 3235-0788

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SUPPORTING STATEMENT
for the Paperwork Reduction Act Information Collection Submission for
Rule 10c-1a Reporting of Securities Loans
OMB Number 3235-0788

A. JUSTIFICATION
1. Information Collection Necessity
Section 984(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act
(“Dodd-Frank Act”),1 now Section 10(c)(1) of the Securities Exchange Act of 1934 (“Exchange
Act”), provides the statutory authority for the Securities and Exchange Commission
(“Commission” or “SEC”) to prescribe rules and regulations regarding transactions involving the
loan or borrowing of securities, as necessary and appropriate in the public interest or for the
protection of investors. Section 984(b) of the Dodd Frank Act directed the Commission to
promulgate rules designed to increase the transparency of information available to brokers,
dealers, and investors, with respect to the loan or borrowing of securities.
Currently parties to securities lending transactions are not required to report the material
terms of their transactions. The lack of public information regarding securities lending
transactions creates inefficiencies in the securities lending market. The gaps in securities lending
data render it difficult for borrowers and lenders alike to ascertain market conditions and to know
whether the terms that they receive are consistent with market conditions. These gaps also
impact the ability of the Commission, other self-regulatory organizations (“SROs”), a registered
national securities association (“RNSA”) and other Federal financial regulators (collectively
“regulators”) to oversee transactions that are vital to fair, orderly, and efficient markets.
The Commission has adopted Rule 10c-1a2 to increase the transparency and efficiency of
the securities lending market by requiring covered persons (as defined under final Rule 10c-1a)
to report the material terms of their securities lending transactions (“10c-1a information”) to an
RNSA.3 Rule 10c-1a provides that the RNSA will make most of the 10c-1a information publicly
available.4
Certain provisions of Rule 10c-1a impose “collection of information” requirements
within the meaning of the Paperwork Reduction of 1995 (“PRA”). The title for the new
information collection is “Material Terms of Securities Lending Transactions.”
2. Information Collection Purpose and Use

1
2
3
4

See Pub. L. 111–203 sec. 984(a), 124 Stat. 1376, 1932-33 (2010).
See Reporting of Securities Loans, Release No. 34-[ADD CITATION POST-ADOPTION]
See final Rule 10c-1a(a).
See final Rule 10c-1a(g).

As described in the Adopting Release, the securities lending market is opaque and has
data gaps that create inefficiencies. The Commission believes that the information collections are
necessary to remediate these issues by giving market participants and regulators access to the
material terms of securities lending transactions.
3. Consideration Given to Information Technology
Rule 10c-1a permits the use of information technology to lessen the burden of collecting,
reporting, disseminating, and storing the 10c-1a information that it requires certain entities to
report to RNSAs. The Commission anticipates that many of the entities that are required to report
Rule 10c-1a information to an RNSA under the final Rule will already have connectivity to an
RNSA. Furthermore, the final rule permits covered persons to contract privately with third-party
vendors, including information technology service providers, to assist in fulfilling their reporting
obligations. The Commission believes that improvements in data processing technology may
also reduce any burdens that result from Rule 10c-1a.
4. Duplication
The Commission has not previously directly addressed the provision of the material terms of
securities lending transactions for purposes of the Federal securities laws. In order to limit the
potential duplication of transaction reporting, Rule 10c-1a limits the obligation to provide the
Rule 10c-1a information to an RNSA to only one participant in each securities lending
transaction to avoid the double counting of transactions.5
5. Effect on Small Entities
As discussed in the adopting release, the Commission estimates that Rule 10c-1a will impact
106 reporting agents, comprised of 97 brokers or dealers and 9 registered clearing agencies. The
Commission estimates that, as required by Rule 10c-1a, all reporting agents will be brokers,
dealers, or registered clearing agencies. For purposes of Commission rulemaking in connection
with the Regulatory Flexibility Act, a broker or dealer is a “small entity” if it has total capital
(net worth plus subordinated liabilities) of less than $500,000 on the date in the prior fiscal year
as of which its audited financial statements were prepared pursuant to 17 CFR 240.17a-5(d), and
it is not affiliated with any person (other than a natural person) that is not a small business or
small organization.6 A clearing agency is a “small entity” if such clearing agency: (i) Compared,
cleared, and settled less than $500 million in securities transactions during the preceding fiscal
year, (ii) had less than $200 million of funds and securities in its custody or control at all times
during the preceding fiscal year (or at any time that it has been in business, if shorter), and (iii) is
not affiliated with any person (other than a natural person) that is not a small business or small
organization.7
The Commission estimates that Rule 10c-1a will impact 278 investment companies that do
not employ a lending agent (or “intermediary”). For purposes of Commission rulemaking in
5
6
7

See final Rule 10c-1a(j)(1).
See 17 CFR 240.0-10(c).
See 17 CFR 240.0-10(d).

connection with the Regulatory Flexibility Act, an investment company is a small entity if,
together with other investment companies in the same group of related investment companies, it
has net assets of $50 million or less as of the end of its most recent fiscal year.8
The Commission estimates that Rule 10c-1a will impact 37 lending agents.9 For purposes
of Commission rulemaking in connection with the Regulatory Flexibility Act, lending agents that
are not broker or dealers, such as a bank, would be a “small entity” if on the last day of its most
recent fiscal year, such entity or person had total assets of $5 million or less.10 Clearing agencies
can also be lending agents under Rule 10c-1a, and, as described above, can also be “small
entities.”11
Based on a review of data, the Commission does not believe that any of the persons that
will be impacted by Rule 10c-1a are small entities under the relevant definitions.12 Entities
including investment companies, brokers, dealers, and banks, which engage in securities lending
transactions, typically tend to be larger institutions because of the scale necessary to make the
lending of securities cost-effective. To the extent that smaller entities engage in securities
lending, they generally employ lending agents, which would relieve these smaller lending
entities from having to provide Rule 10c-1a information to an RNSA.13 It is possible that in the
future a small entity may become impacted by Rule 10c-1a. However, based on experience with
persons who participate in this market, the Commission preliminarily believes that this scenario
is unlikely since firms that enter the market are unlikely to meet the small entity criteria.
For the foregoing reasons, the Commission certified in the adopting release, pursuant to
Section 605(b) of Title 5 of the U.S. Code, that Rule 10c-1a will not have a significant economic
impact on a substantial number of small entities.
6. Consequences of Not Conducting Collection
Rule 10c-1a provides market participants with access to pricing and other material
information regarding securities lending transactions, which will supplement the publicly
available information involving securities lending, close data gaps in the market, and minimize
information asymmetries between market participants. The gaps in securities lending data render
it difficult for borrowers and lenders alike to ascertain market conditions and to know whether
the terms that they receive are consistent with market conditions. These gaps also impact the
ability of the Commission and other regulators to oversee transactions that are vital to fair,
orderly, and efficient markets. The data collected and made available by Rule 10c-1a will
improve price discovery in the securities lending market and lead to a reduction of the
information asymmetry in the market. Increasing the accessibility of data could lower barriers to
entry for would-be participants in the securities lending market as well as the securities markets
more broadly because all market participants, not just counterparties to a trade or those that
8
9
10
11
12
13

See 17 CFR 270.0-10(a).
For example, some investment companies report using a bank as a lending agent on Form N-CEN.
See 17 CFR 240.0-10(a).
See 17 CFR 240.0-10(d).
See 17 CFR 240.0-10.
See final Rule 10c-1a(j)(1).

subscribe to certain services, will be able to view and analyze transactions that are taking place
in the securities lending market. As a result, the disclosure of the specified material terms of
securities lending transactions might improve the efficiency and resiliency of the securities
market by reducing frictions in the cost of borrowing securities, which may also have positive
effects on the markets for the securities themselves. Additionally, enhancing the transparency of
data on securities lending transactions will allow market participants to determine whether the
terms that they receive for their loans are consistent with market conditions. Such benefits would
not accrue to the securities lending market or the broader securities market if the information
collections required by Rule 10c-1a are not implemented.
7. Inconsistencies with Guidelines in 5 CFR 1320.5(d)(2)
Rule 10c-1a(a) requires that certain material terms of securities lending transactions be
reported to an RNSA more frequently than quarterly, specifically by the end of the day on which
a securities loan is effected or the terms of the securities loan are modified, as applicable. Rule
10c-1a(g) requires an RNSA to subsequently make certain of the reported data elements publicly
available as soon as practicable, and not later than the morning of the business day after the
covered securities loan is effected. As noted above, the timely availability of the information
collected under Rule 10c-1a is a key component to providing additional transparency in the
securities lending market for investors, market participants, and regulators.
Additionally, Rule 10c-1a requires RNSAs and reporting agents to retain certain records
for more than three years. Rule 10c-1a(h)(1) requires that an RNSA retain, for a period of five
years, the information collected pursuant to paragraphs (c) through (e) of the Rule in a
convenient and usable standard electronic data format that is machine readable and text
searchable without any manual intervention.
Rule 10c-1a(h)(3) requires that an RNSA makes retain the information collected pursuant
to paragraphs (c) through (e) of the rule in a convenient and usable standard electronic data
format that is machine readable and text searchable without any manual intervention for a period
of five years. Rule 10c-1a(h)(3) requires that an RNSA makes the information collected pursuant
to paragraphs (c) and (d) of the rule available to the public without use restrictions, for a period
of at least five years.
The Commission believes that requiring an RNSA to retain records for five years is
consistent with other record retention obligations that Exchange Act rules impose. For example,
17 CFR 240.17a-1, Exchange Act Rule 17a-1, requires RNSAs to keep documents for a period of
not less than five years. Similarly, 17 CFR 242.613(e)(8), Rule 613(e)(8) of Regulation NMS
requires the central repository to retain information in a convenient and usable standard
electronic data format that is directly available and searchable electronically without any manual
intervention for a period of not less than five years. Rule 10c-1a(h)(1) uses a five year standard
for storage that is similar to Rule 613(e)(8). The standard sets forth the criteria for how
information must be stored but does not specify any particular technological means of storing
such information, which should provide flexibility to the RNSA to adapt to technological
changes that develop in the future. As with Exchange Act Rule 17a-1, the retention period is
intended to facilitate implementation of the Commission’s broad inspection authority in Section
17(a) of the Exchange Act.

The Commission believes that five years is the appropriate length of time for the RNSA
to make information available to the public, because such a time period will provide market
participants with an opportunity to identify trends occurring in the market and in individual
securities based on changes to the material terms of securities lending transactions.
There are no other special circumstances, and this collection is otherwise consistent with
the guidelines in 5 CFR 1320.5(d)(2).
8. Consultations Outside the Agency
The proposing release for Rule 10c-1 (prior to its redesignation as Rule 10c-1a) solicited
comment on the new “collection of information” requirements and associated paperwork
burdens.14 Comments on Commission releases were received from industry groups, investors,
securities exchanges, SROs, and other market participants. The Commission and staff
participated in direct dialogue with various market participants through telephonic
meetings. The comments received addressing proposed Rule 10c-1 and the memorandums from
meetings with market participants regarding the proposed rule are available on the Commission’s
website at https://www.sec.gov/comments/s7-18-21/s71821.htm. The Commission considered all
comments received prior to publishing final Rule 10c-1a, and explained in the adopting release
how the final rule responds to such comments, in accordance with 5 C.F.R. 1320.11(f).
Concerning the PRA, one commenter stated that the Proposing Release underestimated
the number of respondents by only accounting for lenders that are registered with the
Commission.15 The Commission agreed with the commenter and increased its estimate to
account for unregistered entities. This resulted in an increase in the estimated number of
respondents (referred to as “Lenders” in the Proposing Release and “Covered Persons” in the
Adopting Release) that would not employ a lending agent, from 278 to 434.16 The 434 estimated
covered persons that would not employ a lending agent account for 217 of the 255 estimated
providing Covered Persons, and 217 of the 248 estimated non-providing Covered Persons in the
Adopting Release PRA.17
Additionally, many commenters opposed the Proposed Rule’s 15 minute reporting
requirement,18 with one commenter stating concerns that most lenders would not be able to meet
the proposed 15 minute reporting requirement without substantial technology development and
cost.19 As discussed in Part VII.G.1. of the Adopting Release, the Final Rule imposes an end-ofday reporting requirement, instead of the proposed 15 minute reporting requirement, which
should lower the initial burden associated with system design and configuration. Therefore, in
the Adopting Release the Commission estimates that providing covered persons each will
14

16
17
18
19

See Reporting of Securities Loans, Release No. 34-93613 (Nov. 18, 2021), 86 FR 69802 (Dec. 8, 2021)
(“Proposing Release”), at 69829.
See Letter from Edmon Blount, Founder and Director Emeritus, Center for the Study of Financial Market
Evolution (Dec. 15, 2021), at 3.
See Adopting Release, at Part X.A.1.
See infra notes 25 and 26.
See Adopting Release, at Part VII.G.1.
See Letter from Edward M. Marhefka, Managing Director, Global Head of Equities Data and Analytics,
IHS Markit (Jan. 4, 2022), at 13.

Commented [MC1]: Please include a short discussion here
regarding any changes to the information requirements
(including changes to the estimated burdens and/or number
of respondents).
Commented [OTP2R1]: The following two paragraphs
have been added to address this.

assume 3,000 PRA burden hours to develop and reconfigure their current systems to capture the
required data elements, instead of the estimated 3,600 burden hours that was included in the
Proposing Release PRA. Similarly, for the same reasons in the Adopting Release the
Commission estimates that non-providing covered persons each will assume 1,500 PRA burden
hours in to develop and reconfigure their current systems to capture the required data elements,
instead of the estimated 1,800 burden hours that was included in the Proposing Release PRA.
9. Payment or Gift
No payment or gift is provided to respondents.
10. Confidentiality
Rule 10c-1a(e)(1) through (e)(3) provides that certain material terms that are required to
be reported to an RNSA, such as the legal names of the parties to a securities lending transaction,
will not be made public and will be kept confidential.20 Rule 10c-1a(e) does not permit the
RNSA to make the listed data elements public. Additionally, Rule 10c-1(h)(4), requires that an
RNSA establish, maintain, and enforce reasonably designed written policies and procedures to
maintain the security and confidentiality of the confidential information required by Rule 10c1a(e).21 To the extent that the Commission does receive confidential information pursuant to this
collection of information, such information will be kept confidential, subject to the provisions of
applicable law.
11. Sensitive Questions
No information of a sensitive nature would be required under the Rule 10c-1a collections
of information. The information collections do not expressly include personally identifiable
information (“PII”) as part of the data to be collected. Rule10c-1a requires that the legal name of
each party to a securities lending transaction be confidentially reported as a material term to the
loan. If an individual is a party to a securities lending transaction their legal name would be
reported to an RNSA, but would not be made public. No Social Security numbers would be
collected. The agency has determined that a system of records notice (“SORN”) and privacy
impact assessment (“PIA”) are not required in connection with the Rule 10c-1a collections of
information. (See attached agency Privacy Analysis.)

20
21

Proposing Release, at 69852.
Proposing Release, at 69853.

Commented [MC3]: I will send you the Privacy Analysis
Worksheet (PAW) that was completed for the proposal.
Please review it and let me know if you have any changes.
Commented [OTP4R3]: I reviewed the PAW for the
proposing release and do not see any major changes or
issues. I'll need to update it to make some changes, so that it
reflects the adopting and not the proposing, but the privacy
and information issues are consistent.

12. Information Collection Burden
The Commission estimated the hourly burden of the information collection as summarized in
the chart below.
Summary of Hourly Burdens
A.

Proposed Rule 10c-1
Information Collections

Type of
Burden

Number
of Entities
Impacted

Annual
Responses
per Entity

Initial
Burden
per Entity
per
Response

Initial
Burden
Annualized
per Entity
per Response

Ongoing
Burden
per Entity
per
Response

Annual
Burden
Per Entity
per
Response

Total
Annual
Burden
Per
Entity

Total
Industry
Burden

[ D + E]

[F * B]

[G * A]

[C ÷ 3 years]
Providing Covered
Person: Systems
Development and
Monitoring—Initial
Burden
Providing Covered
Person: Systems
Development and
Monitoring—Ongoing
Burden
Non-providing Covered
Person: Systems
Development and
Monitoring—Initial
Burden
Non-providing Covered
Person: Systems
Development and
Monitoring—Ongoing
Burden
Non-providing Covered
Person: Entering into
Written Agreement with
Reporting Agent (No
Ongoing Burden)
Reporting Agents:
Systems Development
and Monitoring—Initial
Burden
Reporting Agents:
Systems Development
and Monitoring—
Ongoing Burden
Reporting Agents:
Entering into
Agreements with NonProviding Covered
Persons (No Ongoing
Burden)
Reporting Agents:
Entering into Agreement
with RNSA (No
Ongoing Burden)
Reporting Agents:
Record Preservation
Requirement (No Initial
Burden)
RNSA: Implement and
maintain infrastructure
for information
collection and
reporting—Initial
Burden
RNSA: Implement and
maintain infrastructure

Third
Party
Disclosure

255

3,0000

1,000

255,000

Third
Party
Disclosure

255

1,350

344,250

Third
Party
Disclosure

248

1,500

500

124,000

Third
Party
Disclosure

248

675

167,400

Third
Party
Disclosure

248

2,480

Third
Party
Disclosure

106

3,000

1,000

106,000

Third
Party
Disclosure

106

1,350

143,100

Third
Party
Disclosure

106

Third
Party
Disclosure

106

0.33

Recordkeeping

106

5,512

Reporting
and Third
Party
Disclosure

10,924

3,641

Reporting
and Third

7,739.50

1,060

7,739.50

for information
collection and
reporting—Ongoing
Burden
RNSA: Retention of
Collected Information
(No Initial Burden)

Party
Disclosure

Recordkeeping

TOTAL HOURLY BURDEN FOR ALL RESPONDENTS

52
1,160,269.5

As described in detail below, the information collection burdens in Rule 10c-1a are directly
related to either: (1) covered persons capturing certain securities lending transaction information
and reporting it to an RNSA (either directly or by using a reporting agent); or (2) an RNSA
collecting the information reported to it and subsequently making certain elements of it publicly
available. Given the differences in the information collections applicable to these parties, the
burdens applicable to covered persons, reporting agents, and RNSAs are separated in the analysis
below.
For purposes of PRA calculations, the initial hourly burden per entity per response is
“annualized,” i.e. spread over 3 years. In contrast, the ongoing hourly burden per entity per
response is calculated as an annual amount. The figures are summarized in the chart of hourly
burdens.
Information Collections Applicable to Entities Reporting Information to an RNSA
The Rule 10c-1a information collections apply to covered persons, which includes: (i) any
person that agrees to a covered securities loan on behalf of a lender (“intermediary” or “lending
agent”) other than a clearing agency when providing only the functions of a central counterparty
or a central securities depository; (ii) any person that agrees to a covered securities loan as a
lender when an intermediary is not used, unless the borrower is a broker or dealer borrowing
fully paid or excess margin securities; or (iii) a broker or dealer when borrowing fully paid or
excess margin securities.22
Rule 10c-1a(a)(2) permits covered persons to rely on a reporting agent23 to fulfill its reporting
obligations, if such covered person: (i) enters into a written agreement with a reporting agent that
agrees to provide the Rule 10c-1a information to an RNSA on behalf of such covered person;
and, (ii) provides such reporting agent with timely access to the Rule 10c-1a information.
Rule 10c-1a(b) enumerates the requirements for brokers, dealers, or registered clearing
agencies to act as reporting agents, including requiring that they: (1) provide Rule 10c-1a
information to an RNSA, in the format and manner required by the applicable rule(s) of such
RNSA; (2) establish, maintain, and enforce written policies and procedures that are reasonably
designed to provide Rule 10c-1a information to an RNSA on behalf of a covered person; (3)
enter into a written agreement with an RNSA that permits the reporting agent to provide Rule
10c-1a information to an RNSA on behalf of a covered person; (4) provide an RNSA with a list
naming each covered person on whose behalf the reporting agent is providing Rule 10c-1a
information to an RNSA; and (5) Preserve certain records, including the Rule 10c-1a information
22
23

See final Rule 10c-1a(j)(1) (defining the term “covered person”).
See final Rule 10c-1a(j)(4) (defining the term “reporting agent”).

obtained by the reporting agent, for a period of not less than three years, the first two years in an
easily accessible place.
This analysis is separated into three categories aligned with the different entities that will
assume PRA burdens under Rule 10c-1a: (1) covered persons; (2) reporting agents; and (3)
RNSAs.

I. Covered Persons
Under final Rule 10c-1a(j)(1), a covered person is any intermediary other than a clearing
agency when providing only the functions of a central counterparty pursuant to Rule 17Ad22(a)(2) of the Exchange Act or a central securities depository pursuant to Rule 17Ad-22(a)(3) of
the Exchange Act; any person that agrees to a covered securities loan as the lender when an
intermediary is not used unless paragraph (j)(1)(iii) of the final rule applies to a broker or dealer
borrowing fully paid or excess margin securities pursuant to Rule 15c3-3(b)(3) of the Exchange
Act; or the broker or dealer when borrowing fully paid or excess margin securities pursuant to
Rule 15c3-3(b)(3) of the Exchange Act.
The Commission estimates that 503 covered persons will be subject to PRA burdens under
final Rule 10c-1a(a). As set forth in paragraph (a)(1) of the final rule, any covered person who
agrees to a covered securities loan on behalf of itself or another person is required to provide
Rule 10c-1a information directly to an RNSA; however, a covered person may enter into a
written agreement with a reporting agent for the reporting agent to provide information to an
RNSA.24 Of the 503 covered persons, the Commission estimates that 255 are providing covered
persons25 and that 248 are non-providing covered persons.26
The below analysis is separated into two categories: providing covered persons and nonproviding covered persons. Both providing covered persons and non-providing covered persons
assume PRA burdens in complying with final Rule 10c-1a(a)(1).
1. Providing Covered Persons: Systems Development and Monitoring Initial Burden
i. Initial Burden
Providing covered persons assume PRA burdens related to developing and reconfiguring
their current systems to capture the required Rule 10c-1a information. Providing covered
persons, in complying with the final rule, will also be required to establish connections that will

For the purposes of the PRA estimates included in this release, such covered person is referred to as a “nonproviding covered person.”
4 broker-dealer intermediaries + 217 persons that agree to a covered securities loan as the lender when an
intermediary is not used and will provide information to an RNSA + 34 brokers or dealers borrowing fully
paid or excess margin securities = 255 providing covered persons.
31 non-broker-dealer intermediaries + 217 persons that agree to a covered securities loan as the lender
when an intermediary is not used and will provide information to a reporting agent = 248 non-providing
covered persons.

allow them to provide the information to an RNSA, which involves establishing connections
with an RNSA and the persons on whose behalf they are lending securities.
The PRA burden for this requirement is similar to that of establishing the appropriate systems
and processes required for collection and transmission of the required information in complying
with the CAT because of the general similarity between the systems established under that rule
and the systems that would be required to be established under final Rule 10c-1a. However, the
systems complying with final Rule 10c-1a will be significantly less complex than those required
by the CAT because the systems required for compliance with final Rule 10c-1a will need to
capture less information overall.
The PRA burden estimates for systems development and monitoring are based on the burdens
applicable to non-Order Audit Trail System (“OATS”) reporters under the CAT. The
Commission determined to use this estimate due to the factors it considered, as part of the CAT
Approval Order, in categorizing firms and estimating burdens. Non-OATS reporters were
estimated to assume the least amount of burdens under the CAT NMS Plan due to the limited
scope of their reportable activity. In addition, non-OATS reporters assumed new reporting
burdens in complying with the CAT, similar to how providing covered persons will assume new
PRA burdens in complying with the final rule’s reporting requirements. Based on the overall size
of the securities lending market and the number of providing covered persons that may provide
information directly to an RNSA, the Commission believes that the volume of securities lending
transactions for providing covered persons will be, on average, of a similar scope to the volume
of reports estimated by non-OATS reporters under the CAT Approval Order.
In the Proposing Release, the Commission, estimated that each providing lending agent and selfproviding lender would assume 3,600 PRA burden hours in developing and reconfiguring their
current systems to capture the required data elements. However, implementing an end-of-day
reporting requirement in place of the intraday reporting requirement removes the need for those
providing covered persons to acquire this level of automation and processing capacity, thus
lowering at least their initial burden associated with system design and configuration. Therefore,
the Commission estimates that providing covered persons each will assume 3,000 PRA burden
hours in developing and reconfiguring their current systems to capture the required data
elements, which is annualized to 1,000 PRA burden hours per entity, for a total estimated
initial annual industry burden of 255,000 hours.27
ii. Ongoing Annual Burden
Once a providing covered person has established the appropriate systems and processes
required for the collection and provision of the Rule 10c-1a information to an RNSA, it is
estimated that providing covered persons will assume ongoing annual PRA burdens associated
with, among other things, providing the Rule 10c-1a information to an RNSA, monitoring
systems, implementing systems changes, and troubleshooting errors. The Commission estimates
that the ongoing annual PRA burden will be equivalent to the ongoing burden estimated for nonOATS reporters in the CAT Approval Order, as adjusted for the change from the proposed
intraday reporting requirement to the end-of-day reporting requirement. Therefore, the
27

1,000 initial burden hours (annualized) x 255 providing Covered Persons = 255,000 total hours.

Commission estimates that each providing covered person will assume 1,350 PRA burden hours
per year, for a total estimated ongoing annual industry burden of 344,250 hours.28
2. Non-Providing Covered Persons: Systems Development and Monitoring
Non-providing covered persons will assume distinct PRA burdens from those applicable to
providing covered persons. First, non-providing covered persons will assume fewer initial and
ongoing PRA burdens related to systems development and monitoring because non-providing
covered persons will not, for purposes of compliance with final Rule 10c-1a(a), need to establish
connectivity to an RNSA and may have flexibility with regard to the format in which it provides
the Rule 10c-1a information to the reporting agent. Second, non-providing covered persons will
assume the initial burden of negotiating and executing a written agreement with the reporting
agent, as required by final Rule 10c-1a(a)(2) but are not estimated to assume an ongoing annual
PRA burden associated with such written agreement.
i. Initial Burden
Non-providing covered persons will assume the initial burden of developing and
reconfiguring their current systems to capture Rule 10c-1a information. Non-providing covered
persons will assume fewer PRA burdens than providing covered persons will because nonproviding covered persons may have the flexibility to collaborate with a reporting agent to
determine the most efficient means of establishing systems that comply with the final rule’s
reporting requirements. For example, if agreed to by both the non-providing covered person and
the reporting agent, the non-providing covered person could have the flexibility to provide to the
reporting agent the applicable Rule 10c-1a information that does not meet the specific format
requirements of an RNSA if the reporting agent is able to reformat the information once
received. Given these and other potential efficiencies, the Commission estimates that a nonproviding covered person will assume half of the initial burden hours that a providing covered
person will assume to develop and reconfigure their current systems to capture the Rule 10c-1a
information. Therefore, the Commission estimates that each non-providing covered person will
assume an initial PRA burden of 1,500 hours, which is annualized to 500 PRA burden hours per
entity, for a total estimated initial annual industry burden of 124,000 hours.29
ii. Ongoing Annual Burden
Once a non-providing covered person has established the necessary systems and processes for
the collection and provision of the Rule 10c-1a information to the reporting agent, such person
will assume ongoing annual PRA burdens associated with, among other things, providing the
data to the reporting agent, monitoring systems, implementing systems changes, and
troubleshooting errors. As with the initial PRA burden estimate for the systems development
and monitoring requirement, the ongoing annual PRA burden estimate for non-providing covered
persons is estimated to be less than that for providing covered persons because non-providing
covered persons may have the flexibility to collaborate with a reporting agent to determine the
most efficient means of establishing systems for purposes of compliance with the final rule.
28
29

1,350 ongoing burden hours x 255 providing Covered Persons = 344,250 total hours.
500 initial burden hours (annualized) x 248 non-providing Covered Persons = 124,000 total hours.

Given the potential efficiencies, the Commission estimates that a non-providing covered
person will assume half of the ongoing annual PRA burden that a providing covered person will
assume with regard to the development and reconfiguration of current systems to capture the
Rule 10c-1a information. Therefore, the Commission estimates that each non-providing covered
person will assume an ongoing annual PRA burden of 675 hours, for a total estimated ongoing
annual industry burden of 167,400 hours.30
3. Non-Providing Covered Person: Entering into Written Agreement with Reporting
Agent
Final Rule 10c-1a(a)(2)(i) requires a covered person to enter into a written agreement
with a reporting agent in order to rely on the reporting agent to fulfill the covered person’s
reporting obligations under paragraph (a)(1) of the final rule. In meeting this requirement, nonproviding covered persons may assume initial PRA burdens associated with drafting,
negotiating, and executing the agreements. There should be no associated ongoing annual PRA
burden once the agreement is signed, as the final rule does not separately impose a requirement
to modify the written agreement or take additional action after the agreement is executed.
These agreements are estimated to be standardized across the industry because the data
elements are consistent for all persons. The Commission estimates that the only terms that may
require negotiation are price and the format in which the information will be provided.
Therefore, to account for negotiation and any administrative tasks related to processing and
executing agreements, the Commission estimates that non-providing covered persons will spend
30 hours on this task, which is annualized to 10 PRA burden hours per entity, for a total
estimated initial annual industry burden of 2,480 hours.31

II. Reporting Agents
The Commission estimates that there will be 106 reporting agents. This estimate is based
on the number of broker-dealers that lent securities as of December 2022 (97),32 as well as the
number of registered clearing agencies in 2023 (9).33 Three requirements of proposed Rule 10c30
31
32

675 ongoing burden hours x 248 non-providing covered persons = 167,400 total hours.
10 initial burden hours (annualized) x 248 non-providing covered persons = 2,480 total hours.
These persons likely have experience providing RNSAs with information through other trade-reporting
requirements and have experience with securities lending. It is possible that some of these broker-dealers
may choose not to be a reporting agent and that other persons may choose to be a reporting agent. Given
uncertainty and a lack of granular data about the current market, however, the Commission continues to
believe that an estimate based on the number of broker-dealers that lent securities in is reasonable with
regard to the estimate of the number of reporting agents.
See Cybersecurity Risk Management Rule for Broker-Dealers, Clearing Agencies, Major Security-Based
Swap Participants, the Municipal Securities Rulemaking Board, National Securities Associations, National
Securities Exchanges, Security-Based Swap Data Repositories, Security-Based Swap Dealers, and Transfer
Agents, Release No. 34-97142 (Mar. 15, 2023), 88 FR 20212 (Apr. 5, 2023), 88 FR 20294. For purposes of
this PRA burden estimate, all registered clearing agencies are included as respondents who are reporting
agents. A registered clearing agency may elect not to be a reporting agent, in which case the PRA burden
estimate may decrease due to the decrease in number of respondents.

1a would subject reporting agents to initial and ongoing annual PRA burdens. The first
requirement relates to the development and monitoring of systems that would facilitate the
provision of information to an RNSA. Because reporting agents would provide the same
information as a self-providing lending agent, the Commission preliminarily estimates that the
initial and ongoing annual burden for this task would be equivalent to the initial burden
attributable to the same task for self-providing lending agents, as described above. The second
requirement relates to the written agreements with the persons who would be providing the
reporting agent information. Finally, the third requirement relates to entering into an agreement
with a RNSA to provide 10c-1a information. These burdens are third party disclosure burdens.
1. Reporting Agents: Systems Development and Monitoring
Initial Burden
Rule 10c-1a(b) permits a reporting agents to provide 10c-1a information to an RNSA on
behalf of another person if certain conditions are met. The Commission anticipates that a
reporting agent will be subject to initial burden to develop and reconfigure their current systems
to capture the required data elements. Additionally, the reporting agent would need to establish,
maintain, and enforce reasonably designed written policies and procedures to provide 10c-1a
information to an RNSA on behalf of another.34 Reporting agents would provide the same
information to an RNSA as a self-providing lending agent,35 so the Commission preliminarily
believes that the burden estimates should be consistent. Therefore, the Commission estimates
that each reporting agent would incur 3,000 hours of initial burden to develop and reconfigure
their current systems to capture the required data elements, which is annualized to 1,000 PRA
burden hours per entity, for a total estimated initial annual industry burden of 106,000
hours.36
Ongoing Annual Burden
Once a reporting agent has established the appropriate systems and processes required for
collection and provision of the required information to the RNSA, proposed Rule 10c-1 would
impose ongoing annual burdens associated with providing the data to the RNSA (including an
updated list of persons on whose behalf they are providing information, as needed), monitoring
systems, implementing changes, and troubleshooting errors. As with the initial burden for this
34
35

Rule 10c-1(b)(2).
While the information provided to the RNSA will be the same, certain aspects of the requirements
applicable to reporting agents would be slightly different than those applicable to self-providing lending
agents. For example, unlike self-providing lending agents, reporting agents will need to design systems to
establish connectivity with the persons on whose behalf they are providing information to an RNSA. In
addition, unlike self-providing lending agents, reporting agents will be required to provide to the RNSA the
identity of the person on whose behalf it is providing the information. Further, unlike any type of lending
agent, reporting agents will be required to establish, maintain, and enforce reasonably designed written
policies and procedures to provide information to an RNSA. Despite these differences, the Commission
preliminarily believes that the estimates used in the CAT Approval Order are an appropriate basis from
which to estimate the burdens for reporting agents in addition to self-providing lending agents because both
provide the same information to the RNSA. Accordingly, this burden estimate for reporting agents is not
being adjusted incrementally from the estimate for self-providing lending agents.
1,000 initial burden hours (annualized) x 106 reporting agents = 106,000 total hours.

requirement, reporting agents would provide the same information to the RNSA as a selfproviding lending agent, so the Commission preliminarily believes that the burden estimates
should be consistent. Therefore, the Commission estimates that each reporting agent would incur
1,350 hours of ongoing annual burden on this requirement, for a total estimated ongoing
annual industry burden of 143,100 hours.37
2. Reporting Agents: Entering into Written Agreements with Non-providing Covered
Persons
Rule 10c-1a(a)(2)(i) requires reporting agents to enter into a written agreement with the
person on whose behalf they are providing information to an RNSA. This requirement subjects
reporting agents to initial burden to draft, negotiate, and execute the agreements. The
Commission anticipates that this requirement will not subject reporting agents to ongoing annual
burden once the agreement is signed because there will be no need to modify the written
agreement or take additional action after it is executed. As discussed above, the Commission
anticipates that these agreements will likely be standardized across the industry since the data
elements will be consistent for all persons. The Commission estimates that the only terms that
may require negotiation are price and the format of the information that will be required to be
provided. As discussed above, however, the Commission preliminarily believes that this process
will be highly automated. The Commission estimates that it will take reporting agents the same
amount of time to comply with this requirement of time as non-providing lending agents.
Therefore, the Commission estimates that each reporting agent would spend 30 hours on this
task, which is annualized to 10 hours per entity, for a total estimated initial annual industry
burden of 1,060 hours.38
3. Reporting Agents: Entering into Written Agreement with an RNSA
Rule 10c-1(b)(3) requires that reporting agents enter into a written agreement with an
RNSA. Since all reporting agents will be providing the same information to the RNSA, the
Commission anticipates that the terms of these agreements will be negotiated and that ultimately
the RNSA will create a form agreement that will be consistent for all reporting agents. While it
is possible that the burden may be very small since these agreements will likely be standardized,
the Commission is conservatively estimating one hour of initial burden for each reporting agent
to account for any administrative tasks that will go into processing and executing agreements.39
The Commission anticipates that reporting agents that enter into written agreements with RNSAs
will not incur any ongoing annual burden to comply with this requirement once the agreement is
signed because there will be no need to modify the written agreement or take additional action
because the information will not vary.40 Therefore, the Commission estimates an initial
annual industry burden for this requirement of 35 hours.41

37
38
39

1,350 ongoing burden hours x 106 reporting agents = 143,100 total hours.
10 initial burden hours (annualized) x 106 reporting agents = 1,060 total hours.
For example, a reporting agent may need to enter the written agreement into a contract management system
or scan an executed paper agreement into an electronic format.
The data elements that will need to be reported will not change and will be consistent across the industry.
Therefore, there will be no need to modify or update agreements in any way.
.33 initial burden hours (annualized) x 106 reporting agents = 35 total hours.

4. Reporting Agents: Record Preservation Requirement
Rule 10c-1a(b)(5) requires that reporting agents preserve for a period of not less than
three years, the first two years in an easily accessible place, the Rule 10c-1a information that it
obtained from any person pursuant to paragraph (a)(2), including the time of receipt, and the
corresponding Rule 10c-1a information provided by the reporting agent to an RNSA, including
the time of transmission to an RNSA, and the written agreement that the reporting agent entered
into with the person on whose behalf it is providing information and the RNSA. This is a
recordkeeping burden. The initial burden associated with retaining the collected information is
associated with reporting agents’ burden to develop and reconfigure their current systems to
capture the required data elements. Accordingly, the Commission is not assessing an initial
burden associated with the recordkeeping of information required by proposed Rule 10c-1(a)(5).
The Commission anticipates that this recordkeeping requirement will be highly automated.
Accordingly, the Commission estimates that reporting agents will spend one hour per week on
upkeep and testing of records to ensure accuracy to comply with this requirement, resulting in a
total of 52 hours per year of annual burden per reporting agent, for a total estimated ongoing
annual industry burden of 5,512 hours.42

III. RNSAs
Under final Rule 10c-1a(j)(5), an RNSA is an association of brokers and dealers that is
registered as a national securities association pursuant to section 15A of the Exchange Act. The
Commission estimates that there is one RNSA that will assume new PRA burdens under
paragraphs (f), (g), and (h) of the final rule. Rule 10c-1a(f) requires an RNSA to implement rules
regarding the format and manner of its collection of Rule 10c-1a information.43 Rule 10c-1a(g)
requires RNSAs to make elements of the information it collects publicly available. Rule 10c1a(h) requires RNSAs to implement certain record retention and data availability practices for
the information it receives.
Burden Estimates Related to RNSA Rule Implementation
Under final Rule 10c-1a(f), an RNSA is required to implement rules regarding the format
and manner of its collection of Rule 10c-1a information and make publicly available such
information in accordance with rules promulgated pursuant to section 19(b) and Rule 19b-4 of
the Exchange Act. The PRA burden associated with filing any proposed rule changes by an
RNSA is already included under the collection of information requirements contained in Rule
19b-4 under the Exchange Act. Therefore, a separate PRA burden estimate is not included for
the purposes of the PRA included for this rulemaking.
1. RNSA: Implement and Maintain Information Collection and Reporting Infrastructure
42
43

1 ongoing burden hour x 52 annual responses per entity x 106 reporting agents = 5,512 total hours.
The burden of filing any proposed rule changes by the RNSA is already included under the collection of
information requirements contained in Rule 19b-4 under the Exchange Act. See Securities Exchange Act
Release No. 50486 (Oct. 5, 2004), 69 FR 60287, 60293 (Oct. 8, 2004) (File No. S7-18-04)(describing the
collection of information requirements contained in Rule 19b-4 under the Exchange Act).

Initial Burden
The initial burden assumed by an RNSA in creating and implementing the infrastructure
for providing covered persons and reporting agents to provide the applicable Rule 10c-1a
information to an RNSA, and for an RNSA to make such information publicly available, is
similar to the initial burden assumed by national securities exchanges and RNSAs in complying
with the requirement to establish the appropriate systems and processes for the collection and
transmission of the required information under the CAT. However, the systems that are
implemented to comply with Rule 10c-1a should be significantly less complex than those that are
implemented to comply with the CAT. This is because the Rule 10c-1a systems will need to
capture less information overall than what the CAT requires. Further, there is only one RNSA
that will need to create and implement the infrastructure for providing covered persons and
reporting agents to provide Rule 10c-1a information, in contrast to the multiple national
securities exchanges that create systems to comply with the CAT. In addition, an RNSA will
have internal staff that can create and implement the infrastructure for providing covered persons
and reporting agents to provide Rule 10c-1a information, unlike certain tasks required under the
CAT that may require outsourcing. Accordingly, the PRA burden estimates for this collection of
information are substantially reduced as compared to those for the CATs.
The Commission estimates that it would take an RNSA approximately 10,924 hours of
internal legal, compliance, information technology, and business operations time to develop the
infrastructure to enable providing covered persons and reporting agents to provide the Rule 10c1a information to an RNSA, and for an RNSA to assign a unique identifier to the covered
securities loan and make the specified information publicly available. The RNSA is not
estimated to assume external costs for the implementation of the infrastructure to enable
providing covered persons and reporting agents to provide the Rule 10c-1a information, assign a
unique identifier to the covered securities loan, and make the final rule’s specified information
publicly available. This is because the sole RNSA currently existing, FINRA, has experience in
implementing systems to collect information from its member broker-dealers. Therefore, the
Commission estimates that the average one-time initial PRA burden related to developing the
infrastructure to enable self-providing covered persons and reporting agents to provide the Rule
10c-1a information, assign a unique identifier to the covered securities loan, and make the final
rule’s specified information publicly available is 10,924 hours, for a total initial annualized
industry burden of 3,641 hours.44
Ongoing Annual Burden
Once an RNSA has developed the infrastructure to enable self-providing covered persons
and reporting agents to provide the Rule 10c-1a information, assigned a unique identifier to the
covered securities loan, made the final rule’s specified information publicly available, the
Commission estimates that an RNSA will assume ongoing annual PRA burdens of 7,739.5 hours
related to ensuring that the infrastructure is up-to-date and remains in compliance with the final
rule, for a total estimated ongoing annual industry burden of 7,739.5 hours.45
44
45

3,641 initial burden hours (annualized) x 1 RNSA = 3,641 total hours.
7,739.5 ongoing burden hours x 1 RNSA = 7,739.5 total hours.

2. RNSA Retention of Collected Information
Under final Rule 10c-1a(h)(1), an RNSA must retain the collected Rule 10c-1a
information in a convenient and usable standard electronic data format that is machine readable
and text searchable without any manual intervention for a period of five years. The initial burden
associated with retaining the collected Rule 10c-1a information is assumed in an RNSA’s
burdens related to implementing and maintaining the infrastructure for providing covered
persons and reporting agents to provide Rule 10c-1a information to an RNSA. Therefore, the
Commission is not separately assessing an initial burden associated with the retention of
collected Rule 10c-1a information. The Commission, however, estimates that an RNSA will
assume an ongoing annual PRA burden of 52 hours to retain the collected information, for a
total estimated ongoing annual industry burden of 52 hours.
13. Costs to Respondents
The Commission does not believe that respondents will incur any external costs to
comply with the proposed Rule.
14. Costs to Federal Government
The Federal government would not incur a cost in connection with the collection of this
information.
15. Changes in Burden
The changes in burden from the Proposed Rule are summarized in the chart below. Please note
the following:
•

The estimated burdens for the final rule submission have been separated into Initial and
Ongoing estimates (with the ongoing estimates being added as new entries in OMB’s
ROCIS system) in order to simplify future revisions.

•

The terms “Lending Agents” and “Lender” in the Proposed Rule have been replaced by
the single term “Covered Person” in the Final Rule to align with the defined terms
included in Final Rule 10c-1a(j), and therefore the calculations for the application
burdens have been combined. Specifically, the terms “Providing Lending Agents” and
“Lenders not Employing a Lending Agent” have been combined under new term
“Providing Covered Person” and the terms “Non-providing Lending Agents” and
“Lenders Directly Employing a Reporting Agent” have been combined under “Nonproviding Covered Person”.

Summary of Change in Estimated Burdens (Annual)
Name of Information
Collection

Previously
Reviewed Burden

New Estimated
Burden

Change in Burden

Providing Covered
Person: Systems
Development and
Monitoring—Initial
burden46

362,100\

255,000

(107,100)

Non-providing Covered
Person: Systems
Development and
Monitoring47

220,575

124,000

(96,575)

Non-providing Covered
Person: Entering into
Written Agreement with
Reporting Agent48

1,730

2,480

750

Reporting Agents:
Systems Development
and Monitoring—Initial
Burden

112,800

106,000

(6,800)

Reason for the Change
This IC has been renamed and the
burdens separated out into this
“initial” IC and a new “ongoing”
IC (below). The burden number
for this IC has decreased because
of the breakout of the previous
total into the new “ongoing” IC.
The estimated burden has also
changed because the number of
respondents has increased from
142 to 255 and the estimated
initial burden amount decreased
from 3,600 (annualized to 1,200)
to 3,000 (annualized to 1,000).
This IC has been renamed and the
burdens separated out into this
“initial” IC and a new “ongoing”
IC (below). The burden number
for this IC has decreased because
of the breakout of the previous
total into the new “ongoing” IC.
The estimated burden has also
changed because the number of
respondents has increased from
173 to 248 and the estimated
initial burden per non-providing
Covered Persons has decreased
from 1,800 (annualized to 600) to
1,500 (annualized to 500).
This IC has been renamed. In
addition, the estimated burden has
increased because the estimated
number of respondents has
increased from 173 to 248.
The burdens in this IC have been
separated out into this “initial” IC
and a new “ongoing” IC (below).
The estimated burden for this IC
has decreased because of the
breakout of the previous total into
the new “ongoing” IC. The
estimated burden has also
changed because the number of
respondents has increased from 94
to 106 and the estimated initial
burden per Reporting Agent

This information collection covers both the “Providing Lending Agents: Systems Development and Monitoring”
and “Lenders not Employing a Lending Agent – Self-Providing Lenders: Systems Development and Monitoring”
information collections that were included in the Proposing Release Supporting Statement.
47
This information collection covers both the “Non-providing Lending Agents: Systems Development and
Monitoring” and “Lenders Directly Employing a Reporting Agent: Systems Development and Monitoring”
information collections that were included in the Proposing Release Supporting Statement.
48
This information collection covers both the “Non-providing Lending Agents: Entering into Written Agreement
with Reporting Agent” and “Lenders Directly Employing a Reporting Agent: Entering into a Written Agreement
with a Reporting Agent” information collections that were included in the Proposing Release Supporting Statement.
46

decreased from 3,600 (annualized
to 1,200) to 3,000 (annualized to
1,000).
Reporting Agents:
Entering into
Agreements with NonProviding Covered
Persons
Reporting Agents:
Entering into Agreement
with RNSA
Reporting Agents:
Record Preservation
Requirement

Lenders not Employing
a Lending Agent—SelfProviding Lenders:
Systems Development
and Monitoring

940

1,060

120

4,888

5,512

624

354,450

(354,450)

This IC has been renamed. The
estimated burden has increased
because the number of
respondents increased from 94 to
106.
The estimated number of
respondents increased from 94 to
106.
This IC has been renamed. The
estimated burden has increased
because the number of
respondents has increased from 94
to 106.
This collection has been
combined with the initial and
ongoing ones for “Providing
Covered Person: Systems
Development and Monitoring.”
Accordingly, this is being
removed as a separate IC.
This collection has been
combined with the initial and
ongoing ones for “Providing
Covered Person: Systems
Development and Monitoring.”
Accordingly, this is being
removed as a separate IC.

Lenders Directly
Employing a Reporting
Agent: Systems
Development and
Monitoring

177,225

(177,225)

RNSA: Implement and
maintain infrastructure
for information
collection and reporting

3,641 (Initial)
7,739.5 (Ongoing)
11,380.5 (Total)

No change.

RNSA: Retention of
Collected Information

No change to the total annual
burden. A correction was made to
the number of responses per year
and the burden per response.

Providing Covered
Person: Systems
Development and
Monitoring—Ongoing
Burden

344,250

This is an “ongoing” burden
broken out into a new IC
(described above).

Non-Providing Covered
Person: Systems
Development and
Monitoring—Ongoing
Burden

167,400

This is an “ongoing” burden
broken out into a new IC
(described above).

Reporting Agents:
Systems Development
and Monitoring—
Ongoing Burden

143,100

This is an “ongoing” burden
broken out into a new IC
(described above).

RNSA: Implement and
maintain infrastructure
for information
collection and
reporting—Ongoing
Burden

7,740

This is an “ongoing” burden
broken out into a new IC
(described above).

Summary of Change in Estimated Burdens (Annual)
Name of Information
Collection

Previously
Reviewed Burden

New Estimated
Burden

Change in Burden

Providing Covered
Person: Systems
Development and
Monitoring49

170,400 (Initial)
191,700 (Ongoing)
362,100\ (Total)

255,000 (Initial)
344,250 (Ongoing)
599,250 (Total)

+84,600 (Initial)
+152,550 (Ongoing)
+237,150 (Total)

Non-providing Covered
Person: Systems
Development and
Monitoring50

103,800 (Initial)
116,775 (Onoging)
220,575 (Total)

124,000 (Initial)
167,400 (Ongoing)
291,400 (Total)

+20,200 (Initial)
+50,625 (Ongoing)
+70,825 (Total)

Non-providing Covered
Person: Entering into
Written Agreement with
Reporting Agent51

1,730 (Initial)

2,480 (Initial)

+750 (Initial)

Reporting Agents:
Systems Development
and Monitoring

Reporting Agents:
Entering into
Agreements with NonProviding Covered
Persons
Reporting Agents:
Entering into Agreement
with RNSA

Reason for the Change
The estimated number of
providing Covered Persons
increased from 142 to 255.
However, the estimated initial
burden per providing Covered
Person decreased from 3,600
(annualized to 1,200) to 3,000
(annualized to 1,000).
The estimated number of nonproviding Covered Persons
increased from 173 to 248.
However, the estimated initial
burden per non-providing
Covered Persons decreased from
1,800 (annualized to 600) to 1,500
(annualized to 500).
The estimated number of nonproviding Covered Persons
increased from 173 to 248.

112,800 (Initial)
126,900 (Ongoing)
239,700 (Total)

106,000 (Initial)
143,100 (Ongoing)
249,100 (Total)

-6,800 (Initial)
+16,200 (Ongoing)
+9,400 (Total)

The estimated number of
Reporting Agents increased from
94 to 106. However, the estimated
initial burden per Reporting Agent
decreased from 3,600 (annualized
to 1,200) to 3,000 (annualized to
1,000).

940 (Initial)

1,060 (Initial)

+120 (Initial)

The estimated number of
Reporting Agents increased from
94 to 106.

31 (Initial)

35 (Initial)

+4 (Initial)

The estimated number of
Reporting Agents increased from
94 to 106.

This information collection covers both the “Providing Lending Agents: Systems Development and Monitoring”
and “Lenders not Employing a Lending Agent – Self-Providing Lenders: Systems Development and Monitoring”
information collections that were included in the Proposing Release Supporting Statement.
50
This information collection covers both the “Non-providing Lending Agents: Systems Development and
Monitoring” and “Lenders Directly Employing a Reporting Agent: Systems Development and Monitoring”
information collections that were included in the Proposing Release Supporting Statement.
51
This information collection covers both the “Non-providing Lending Agents: Entering into Written Agreement
with Reporting Agent” and “Lenders Directly Employing a Reporting Agent: Entering into a Written Agreement
with a Reporting Agent” information collections that were included in the Proposing Release Supporting Statement.
49

Reporting Agents:
Record Preservation
Requirement
RNSA: Implement and
maintain infrastructure
for information
collection and reporting
RNSA: Retention of
Collected Information

The estimated number of
Reporting Agents increased from
94 to 106.

4,888 (Ongoing)

5,512 (Ongoing)

+624 (Ongoing)

3,641 (Initial)
7,739.5 (Ongoing)
11,380.5 (Total)

No change.

52 (Ongoing)

No change.

16. Information Collection Planned for Statistical Purposes
Not applicable. The information collection is not used for statistical purposes.
17. Approval to Omit OMB Expiration Date
The Commission is not seeking approval to omit the OMB approval expiration date.
18. Exceptions to Certification for Paperwork Reduction Act Submissions
This collection complies with the requirements in 5 CFR 1320.9.
B. COLLECTIONS OF INFORMATION EMPLOYING STATISTICAL METHODS
This collection does not involve statistical methods.

File Type	application/pdf
File Modified	2023-11-05
File Created	2023-11-05