81 FR 5163 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 20 (February 1, 2016)

Page Range		5163-5164
FR Document		2016-01716
Federal Register, Volume 81 Issue 20 (Monday, February 1, 2016)
[Federal Register Volume 81, Number 20 (Monday, February 1, 2016)]
[Notices]
[Pages 5163-5164]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01716]


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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 Conditional Exemptions Under the Securities 
Exchange Act of 1934 in Connection with Portfolio Margining of Swaps 
and Security-Based Swaps; SEC File No. S7-13-12, OMB Control No. 
3235-0698.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the existing 
collection of information provided for in the Order Granting 
Conditional Exemptions Under the Securities Exchange Act of 1934 
(``Exchange Act'') in Connection with Portfolio Margining of Swaps and 
Security-Based Swaps, Exchange Act Release No. 68433 (Dec. 14, 2012), 
77 FR 75211 (Dec. 19, 2012) (``Order''). The Commission plans to submit 
this existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    On December 14, 2012, the Commission found it necessary or 
appropriate in the public interest and consistent with the protection 
of investors to grant the conditional exemptions discussed in the 
Order. Among other things, the Order requires dually-registered broker-
dealer and futures commission merchants (``BD/FCMs'') that elect to 
offer a program to commingle and portfolio margin customer positions in 
credit default swaps (``CDS'') in customer accounts maintained in 
accordance with Section 4d(f) of the Commodity Exchange Act (``CEA'') 
and rules thereunder, to obtain certain agreements and opinions from 
its customers regarding the applicable regulatory regime, and to make 
certain disclosures to its customers before receiving any money, 
securities, or property of a customer to margin, guarantee, or secure 
positions consisting of cleared CDS, which include both swaps and 
security-based swaps, under a program to commingle and portfolio margin 
CDS. The Order also requires BD/FCMs that elect to offer a program to 
commingle and portfolio margin CDS positions in customer accounts 
maintained in accordance with Section 4d(f) of the CEA and rules 
thereunder, to maintain minimum margin levels using a margin 
methodology approved by the Commission or the Commission staff.
    When it adopted the Order, the Commission discussed the burden 
hours and costs associated with complying with certain provisions of 
the Order that contain ``collection of information requirements'' 
within the meaning of the PRA.\1\ The collection of information 
requirements are designed, among other things, to provide appropriate 
agreements, disclosures, and opinions to BD/FCM customers to clarify 
key aspects of the regulatory framework that will govern their 
participation in a program to commingle and portfolio margin CDS 
positions and to ensure that appropriate levels of margin are 
collected. Because the Order is still in effect, the Commission 
believes it is prudent to extend this collection of information.
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    \1\ See Order, 77 FR at 75221-23.
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    The Commission estimates that 45 firms may seek to avail themselves 
of the conditional exemptive relief provided by the Order and therefore 
would be subject to the information collection.\2\ The Commission 
estimates that each of the 45 firms that may seek to avail themselves 
of the conditional exemptive relief provided by the Order would spend a 
total of 3,430 burden hours to comply with the existing collection of 
information, calculated as follows: (20 hours to develop a 
subordination agreement for each non-affiliate cleared credit default 
swap customers in accordance with paragraph IV(b)(1)(ii) of the Order) 
x (109 non-affiliate credit default swap customers \3\) + ((20 hours to 
develop a subordination agreement for each affiliate cleared credit 
default swap customers in accordance with paragraph IV(b)(2)(ii) of the 
Order) + (2 hours developing and reviewing the opinion required by 
paragraph IV(b)(2)(iii) of the Order)) x (11 affiliate credit default 
swap customers) + (1,000 hours to seek the Commission's approval of 
margin methodologies under paragraph IV(b)(3) of the Order) + (8 hours 
to disclose information to customers under paragraph IV(b)(6) of the 
Order) = 3,430 burden hours, or approximately 154,350 burden hours in 
the aggregate, calculated as follows: (3,430 burden hours per firm) x 
(45 firms) = 154,350 burden hours. Amortized over three years, the 
annualized burden hours would be 1,143 hours per firm, or a total of 
51,450 for all 45 firms.
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    \2\ The Commission bases this estimate on the total number of 
entities that are dually registered as broker-dealers and futures 
commission merchants. See Financial Data for FCMs as of July 31, 
2015, Commodity Futures Trading Commission, available at http://www.cftc.gov/MarketReports/FinancialDataforFCMs/index.htm.
    \3\ Based on information that the Commission receives on a 
monthly basis, as well as current projections regarding the 
estimated increase in the number of customers per respondent, the 
Commission anticipates an average number of credit default swap 
customers to be 120 per respondent, 109 of which would be non-
affiliates and 11 of which would be affiliates. The Commission notes 
that these estimates are based on current data and the current 
regulatory framework.
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    The Commission further estimates that each respondent will incur a 
one-time cost of $8,000 in outside legal cost expenses per firm, 
calculated as follows: (200 hours to obtain opinions of counsel from 
affiliate cleared credit default swap customers under paragraph 
IV(b)(2)(iii) of the Order) x ($400 per hour for outside legal counsel) 
= $8,000, for an aggregate burden of $360,000, calculated as follows: 
($8,000 in external legal costs per firm) x (45 firms) = $360,000. 
Amortized over three years, the annualized capital external cost would 
be $2,667 per firm, or a total of $120,000 for all 45 firms.
    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 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: 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].


[[Page 5164]]


    Dated: January 25, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-01716 Filed 1-29-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Notices 5163

Dated: January 25, 2016. margin CDS. The Order also requires reviewing the opinion required by
Robert W. Errett, BD/FCMs that elect to offer a program paragraph IV(b)(2)(iii) of the Order)) ×
Deputy Secretary. to commingle and portfolio margin CDS (11 affiliate credit default swap
[FR Doc. 2016–01711 Filed 1–29–16; 8:45 am] positions in customer accounts customers) + (1,000 hours to seek the
BILLING CODE 8011–01–P maintained in accordance with Section Commission’s approval of margin
4d(f) of the CEA and rules thereunder, methodologies under paragraph IV(b)(3)
to maintain minimum margin levels of the Order) + (8 hours to disclose
SECURITIES AND EXCHANGE using a margin methodology approved information to customers under
COMMISSION by the Commission or the Commission paragraph IV(b)(6) of the Order) = 3,430
staff.
burden hours, or approximately 154,350
Proposed Collection; Comment When it adopted the Order, the
Request Commission discussed the burden hours burden hours in the aggregate,
and costs associated with complying calculated as follows: (3,430 burden
Upon Written Request, Copies Available with certain provisions of the Order that hours per firm) × (45 firms) = 154,350
From: U.S. Securities and Exchange contain ‘‘collection of information burden hours. Amortized over three
Commission, Office of FOIA Services, requirements’’ within the meaning of years, the annualized burden hours
100 F Street NE., Washington, DC the PRA.1 The collection of information would be 1,143 hours per firm, or a total
20549–2736. requirements are designed, among other of 51,450 for all 45 firms.
Extension: things, to provide appropriate The Commission further estimates
Order Granting Conditional Exemptions agreements, disclosures, and opinions to
Under the Securities Exchange Act of
that each respondent will incur a one-
BD/FCM customers to clarify key time cost of $8,000 in outside legal cost
1934 in Connection with Portfolio
aspects of the regulatory framework that expenses per firm, calculated as follows:
Margining of Swaps and Security-Based
Swaps; SEC File No. S7–13–12, OMB will govern their participation in a (200 hours to obtain opinions of counsel
Control No. 3235–0698. program to commingle and portfolio from affiliate cleared credit default swap
margin CDS positions and to ensure that customers under paragraph IV(b)(2)(iii)
Notice is hereby given that pursuant appropriate levels of margin are
to the Paperwork Reduction Act of 1995 of the Order) × ($400 per hour for
collected. Because the Order is still in
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the outside legal counsel) = $8,000, for an
effect, the Commission believes it is
Securities and Exchange Commission aggregate burden of $360,000, calculated
prudent to extend this collection of
(‘‘Commission’’) is soliciting comments information. as follows: ($8,000 in external legal
on the existing collection of information The Commission estimates that 45 costs per firm) × (45 firms) = $360,000.
provided for in the Order Granting firms may seek to avail themselves of Amortized over three years, the
Conditional Exemptions Under the the conditional exemptive relief annualized capital external cost would
Securities Exchange Act of 1934 provided by the Order and therefore be $2,667 per firm, or a total of $120,000
(‘‘Exchange Act’’) in Connection with would be subject to the information for all 45 firms.
Portfolio Margining of Swaps and collection.2 The Commission estimates Written comments are invited on: (a)
Security-Based Swaps, Exchange Act that each of the 45 firms that may seek Whether the proposed collection of
Release No. 68433 (Dec. 14, 2012), 77 to avail themselves of the conditional information is necessary for the proper
FR 75211 (Dec. 19, 2012) (‘‘Order’’). The exemptive relief provided by the Order performance of the functions of the
Commission plans to submit this would spend a total of 3,430 burden Commission, including whether the
existing collection of information to the hours to comply with the existing
Office of Management and Budget information shall have practical utility;
collection of information, calculated as (b) the accuracy of the Commission’s
(‘‘OMB’’) for extension and approval. follows: (20 hours to develop a
On December 14, 2012, the estimates of the burden of the proposed
subordination agreement for each non-
Commission found it necessary or collection of information; (c) ways to
affiliate cleared credit default swap
appropriate in the public interest and enhance the quality, utility, and clarity
customers in accordance with paragraph
consistent with the protection of of the information to be collected; and
IV(b)(1)(ii) of the Order) × (109 non-
investors to grant the conditional affiliate credit default swap customers 3) (d) ways to minimize the burden of the
exemptions discussed in the Order. + ((20 hours to develop a subordination collection of information on
Among other things, the Order requires agreement for each affiliate cleared respondents, including through the use
dually-registered broker-dealer and credit default swap customers in of automated collection techniques or
futures commission merchants (‘‘BD/ accordance with paragraph IV(b)(2)(ii) other forms of information technology.
FCMs’’) that elect to offer a program to of the Order) + (2 hours developing and Consideration will be given to
commingle and portfolio margin comments and suggestions submitted in
customer positions in credit default 1 See Order, 77 FR at 75221–23. writing within 60 days of this
swaps (‘‘CDS’’) in customer accounts 2 The Commission bases this estimate on the total publication.
maintained in accordance with Section number of entities that are dually registered as
An agency may not conduct or
4d(f) of the Commodity Exchange Act broker-dealers and futures commission merchants.
See Financial Data for FCMs as of July 31, 2015, sponsor, and a person is not required to
(‘‘CEA’’) and rules thereunder, to obtain Commodity Futures Trading Commission, available respond to, a collection of information
certain agreements and opinions from at http://www.cftc.gov/MarketReports/
under the PRA unless it displays a
its customers regarding the applicable FinancialDataforFCMs/index.htm.
3 Based on information that the Commission currently valid OMB control number.
regulatory regime, and to make certain
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receives on a monthly basis, as well as current Please direct your written comments
disclosures to its customers before projections regarding the estimated increase in the
receiving any money, securities, or number of customers per respondent, the
to: Pamela Dyson, Director/Chief
property of a customer to margin, Commission anticipates an average number of Information Officer, Securities and
guarantee, or secure positions consisting credit default swap customers to be 120 per Exchange Commission, c/o Remi Pavlik-
respondent, 109 of which would be non-affiliates Simon, 100 F Street NE., Washington,
of cleared CDS, which include both and 11 of which would be affiliates. The
swaps and security-based swaps, under Commission notes that these estimates are based on DC 20549, or send an email to: PRA_
a program to commingle and portfolio current data and the current regulatory framework. Mailbox@sec.gov.

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5164 Federal Register / Vol. 81, No. 20 / Monday, February 1, 2016 / Notices

Dated: January 25, 2016. to postpone a determination as to of the information collection, including
Robert W. Errett, whether an activity is entered into for suggestions for reducing the burden, to
Deputy Secretary. profit or is in the nature of a Sustanchia Gladden, Department of the
[FR Doc. 2016–01716 Filed 1–29–16; 8:45 am] nondeductible hobby. The election is Treasury, 1500 Pennsylvania Avenue
BILLING CODE 8011–01–P made on Form 5213. NW., Room 1050, Washington, DC
Affected Public: Businesses or other 20020 or to Sustanchia.Gladden@
for-profits; Individuals. treasury.gov.
DEPARTMENT OF THE TREASURY Estimated Total Annual Burden FOR FURTHER INFORMATION CONTACT:
Hours: 2,762. Requests for additional information
Submission for OMB Review; OMB Control Number: 1545–1837. should be directed to Sustanchia
Comment Request Type of Review: Extension of a Gladden, Department of the Treasury,
currently approved collection. 1500 Pennsylvania Avenue NW., Room
January 26, 2016. Title: Revenue Procedure 2003–36,
The Department of the Treasury will 1050, Washington, DC 20020 or to
Industry Issue Resolution Program. Sustanchia.Gladden@treasury.gov.
submit the following information Abstract: Rev. Proc. 2003–36
collection requests to the Office of SUPPLEMENTARY INFORMATION:
describes procedures for business
Management and Budget (OMB) for OMB Control Number: 1505–0218.
taxpayers, industry associations, and
review and clearance in accordance Title: Grants to States for Low-Income
other interested parties to submit issues
with the Paperwork Reduction Act of Housing Projects in lieu of Tax Credits.
for consideration under the Internal Abstract: Authorized under the
1995, Public Law 104–13, on or after the Revenue Service’s Industry Issue
date of publication of this notice. American Recovery and Reinvestment
Resolution (IIR) Program. The objective Act (ARRA) (Pub. L. 111–5), the
DATES: Comments should be received on of the IIR Program is to identify
or before March 2, 2016 to be assured Department of the Treasury
frequently disputed or burdensome tax implemented several provisions of the
of consideration. issues that are common to a significant
ADDRESSES: Send comments regarding
Act, more specifically Division B—Tax,
number of business taxpayers that may Unemployment, Health, State Fiscal
the burden estimates, or any other be resolved through published or other
aspect of the information collections, Relief, and Other Provisions. Among
administrative guidance. these components is a program which
including suggestions for reducing the Affected Public: Businesses or other
burden, to (1) Office of Information and requires Treasury to make payments, in
for-profits.
Regulatory Affairs, Office of lieu of a tax credit, to state housing
Estimated Average Annual Burden
Management and Budget, Attention: credit agencies. State housing credit
per Response: 40 hours.
Desk Officer for Treasury, New Estimated Total Annual Burden agencies use the funds to make
Executive Office Building, Room 10235, Hours: 2,000. subawards to finance the construction
Washington, DC 20503, or email at or acquisition and rehabilitation of
OIRA_Submission@OMB.EOP.gov and
Brenda Simms, qualified low-income buildings. The
(2) Treasury PRA Clearance Officer, Treasury PRA Clearance Officer. collection of information from the
1750 Pennsylvania Ave. NW., Suite [FR Doc. 2016–01710 Filed 1–29–16; 8:45 am] agencies is necessary to properly
8117, Washington, DC 20220, or email BILLING CODE 4810–01–P monitor compliance with program
at PRA@treasury.gov. requirements.
Type of Review: Extension of a
FOR FURTHER INFORMATION CONTACT:
DEPARTMENT OF THE TREASURY currently approved collection.
Copies of the submissions may be Affected Public: State, Local, or Tribal
obtained by emailing PRA@treasury.gov, Proposed Collection; Comment Governments.
calling (202) 622–1295, or viewing the Request Estimated Number of Respondents:
entire information collection request at 55.
www.reginfo.gov. Departmental Offices, Treasury.
AGENCY:
Estimated Annual Hours per
Internal Revenue Service (IRS) Notice and request for
ACTION: Response: 0.5 hours.
comments. Estimated Total Annual Burden
OMB Control Number: 1545–0166.
Type of Review: Extension of a Hours: 57.
SUMMARY: The Department of the
currently approved collection. Request for Comment: Comments
Treasury, as part of its continuing effort
Title: Recapture of Investment Credit. submitted in response to this notice will
to reduce paperwork and respondent
Abstract: Form 4255 is used to figure be summarized and included in the
burden, invites the general public and
the increase in tax for the recapture of request for Office of Management and
other Federal agencies to comment on
investment credit claimed and for the Budget approval. Comments may
an extension of an existing information
recapture of a qualifying therapeutic become a matter of public record. The
collection, as required by the Paperwork
discovery project grant. public is invited to submit comments
Reduction Act of 1995, Public Law 104–
Affected Public: Businesses or other concerning: (a) Whether the collection
13 (44 U.S.C. 3506(c)(2)(A)). Currently,
for-profits. of information is necessary for the
the Office of the Fiscal Assistant
Estimated Total Annual Burden proper performance of the functions of
Secretary, within the Department of the
Hours: 129,492. the agency, including whether the
Treasury, is soliciting comments
OMB Control Number: 1545–0195. information will have practical utility;
concerning grants to states for low-
Type of Review: Extension of a (b) the accuracy of the agency’s estimate
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income housing projects in lieu of tax
currently approved collection. of the burden of the collection of
credits.
Title: Election to Postpone information; (c) ways to enhance the
Determination as to Whether the DATES: Written comments should be quality, utility, and clarity of the
Presumption Applies that an activity is received on or before April 1, 2016 to information to be collected; (d) ways to
engaged in for profit. be assured of consideration. minimize the burden of the collection of
Abstract: Section 183 of the Internal ADDRESSES: Send comments regarding information on respondents, including
Revenue Code allows taxpayers to elect the burden estimate, or any other aspect the use of automated collection

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Document Created: 2016-01-30 01:17:14
Document Modified: 2016-01-30 01:17:14
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 5163