81 FR 1244 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 6 (January 11, 2016)

[Federal Register Volume 81, Number 6 (Monday, January 11, 2016)]
[Notices]
[Page 1244]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-00256]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-440, OMB Control No. 3235-0496]


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:
    Appendix F to Rule 15c3-1.

    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 existing 
collection of information provided for in Appendix F to Rule 15c3-1 
(``Appendix F'' or ``Rule 15c3-1f'') (17 CFR 240.15c3-1f) under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). The Commission 
plans to submit this existing collection of information to the Office 
of Management and Budget (``OMB'') for extension and approval.
    Appendix F requires a broker-dealer choosing to register, upon 
Commission approval, as an OTC derivatives dealer to develop and 
maintain an internal risk management system based on Value-at-Risk 
(``VaR'') models. It is anticipated that a total of one (1) broker-
dealer registering as an OTC derivatives dealer will spend 1,000 hours 
on a one-time basis complying with the system development requirements 
of Rule 15c3-1f, for an estimated one-time initial startup burden of 
approximately 1,000 hours. Appendix F also requires the OTC derivatives 
dealer to maintain its system model according to certain prescribed 
standards. It is anticipated that the four (4) OTC derivatives dealers 
currently registered with the Commission will each spend 1,000 hours 
per year maintaining the system model required by Rule 15c3-1f, for an 
estimated recurring annual burden of approximately 4,000 hours. It is 
anticipated that the one (1) broker-dealer registering as an OTC 
derivatives dealer will spend 1,000 hours maintaining the system model 
required by Rule 15c3-1f in each year following its registration. Thus, 
the total industry-wide burden is estimated to be approximately 5,000 
hours (4,000 hours + 1,000 hours) for the first year and 5,000 hours 
for each subsequent year.\1\
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    \1\ The Commission estimates that a total of five entities will 
be registered as OTC derivatives dealers at the end of the next 
three years, consisting of the four current OTC derivatives dealers 
and one anticipated registrant. This is in contrast with the prior 
estimate of eight OTC derivatives dealers, consisting of four 
current OTC derivatives dealers and four anticipated registrants.
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    The records required to be kept pursuant to Appendix F and results 
of periodic reviews conducted pursuant to Rule 15c3-4 generally must be 
preserved under Rule 17a-4 of the Exchange Act (17 CFR 240.17a-4) for a 
period of not less than three years, the first two years in an easily 
accessible place. The Commission will not generally publish or make 
available to any person notices or reports received pursuant to the 
Rule. The statutory basis for the Commission's refusal to disclose such 
information to the public is the exemption contained in Section (b)(4) 
of the Freedom of Information Act (5 U.S.C. 552), which essentially 
provides that the requirement of public dissemination does not apply to 
commercial or financial information which is privileged or 
confidential.
    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 under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549 or send an email 
to: [email protected].

    Dated: January 5, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-00256 Filed 1-8-16; 8:45 am]
BILLING CODE 8011-01-P