81 FR 83915 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 225 (November 22, 2016)

Page Range		83915-83916
FR Document		2016-28028

Federal Register, Volume 81 Issue 225 (Tuesday, November 22, 2016)

[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83915-83916]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-28028]


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SECURITIES AND EXCHANGE COMMISSION


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 15c3-5, SEC File No. 270-601, OMB Control No. 3235-0673

    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'') 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 
15c3-5 (17 CFR 240.15c3-5) under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.) (``Exchange Act'').
    Rule 15c3-5 under the Exchange Act requires brokers or dealers with 
access to trading directly on an exchange or alternative trading system 
(``ATS''), including those providing sponsored or direct market access 
to customers or other persons, to implement risk management controls 
and supervisory procedures reasonably designed to manage the financial, 
regulatory, and other risks of this business activity.
    The rule requires brokers or dealers to establish, document, and 
maintain certain risk management controls and supervisory procedures as 
well as regularly review such controls and procedures, and document the 
review, and remediate issues discovered to

[[Page 83916]]

assure overall effectiveness of such controls and procedures. Each such 
broker or dealer is required to preserve a copy of its supervisory 
procedures and a written description of its risk management controls as 
part of its books and records in a manner consistent with Rule 17a-
4(e)(7) under the Exchange Act. Such regular review is required to be 
conducted in accordance with written procedures and is required to be 
documented. The broker or dealer is required to preserve a copy of such 
written procedures, and documentation of each such review, as part of 
its books and records in a manner consistent with Rule 17a-4(e)(7) 
under the Exchange Act, and Rule 17a-4(b) under the Exchange Act, 
respectively.
    In addition, the Chief Executive Officer (or equivalent officer) is 
required to certify annually that the broker or dealer's risk 
management controls and supervisory procedures comply with the rule, 
and that the broker-dealer conducted such review. Such certifications 
are required to be preserved by the broker or dealer as part of its 
books and records in a manner consistent with Rule 17a-4(b) under the 
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
    Respondents consist of broker-dealers with access to trading 
directly on an exchange or ATS. The Commission estimates that there are 
currently 640 respondents. To comply with Rule 15c3-5, these 
respondents will spend a total of approximately 102,400 hours per year 
(160 hours per broker-dealer x 640 broker-dealers = 102,400 hours). At 
an average internal cost per burden hour of approximately $339.09, the 
resultant total related internal cost of compliance for these 
respondents is $34,722,560 per year (102,400 burden hours multiplied by 
approximately $339.09/hour). In addition, for hardware and software 
expenses, the Commission estimates that the average annual external 
cost would be approximately $20,500 per broker-dealer, or $13,120,000 
in the aggregate ($20,500 per broker-dealer x 640 brokers and dealers = 
$13,120,000).
    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 Web site: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: 
[email protected]; and (ii) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: November 16, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-28028 Filed 11-21-16; 8:45 am]
 BILLING CODE 8011-01-P

Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices 83915

Dutch versus other auction III. Date of Effectiveness of the inspection and copying at the principal
methodologies, degree and triggers for Proposed Rule Change and Timing for office of ICE Clear Credit and on ICE
juniorization and participation by Commission Action Clear Credit’s Web site at https://
customers. Certain of the proposed Within 45 days of the date of www.theice.com/clear-credit/regulation.
governance arrangements in the All comments received will be posted
publication of this notice in the Federal
amendments also reflect feedback from without change; the Commission does
Register or within such longer period
Participants, including with respect to not edit personal identifying
up to 90 days (i) as the Commission may
the role of Risk Committee in major information from submissions. You
designate if it finds such longer period
decisions. Throughout the process, ICC should submit only information that
to be appropriate and publishes its
has regularly shared drafts of the you wish to make available publicly. All
reasons for so finding or (ii) as to which submissions should refer to File
amendments with Participants, and the self-regulatory organization
sought (and received) comment from Number SR–ICC–2016–013 and should
consents, the Commission will: be submitted on or before December 13,
Participants and Participants’ internal (A) By order approve or disapprove
and external counsel on such drafts, 2016.
the proposed rule change or
which ICC has taken into consideration (B) institute proceedings to determine For the Commission, by the Division of
in the drafting of the amendments. whether the proposed rule change Trading and Markets, pursuant to delegated
ICC has discussed the amendments authority.18
should be disapproved.
individually with members of its buy- Brent J. Fields,
side advisory committee, which consists IV. Solicitation of Comments Secretary.
of customers of Participants. ICC also Interested persons are invited to [FR Doc. 2016–28032 Filed 11–21–16; 8:45 am]
considered the views of industry groups submit written data, views, and BILLING CODE 8011–01–P
representing customers of Participants, arguments concerning the foregoing,
both through discussions with members including whether the proposed rule
of such groups and through the public change is consistent with the Act. SECURITIES AND EXCHANGE
statements and positions of such groups. Comments may be submitted by any of COMMISSION
Certain buy-side customers have the following methods:
expressed concern with aspects of the Submission for OMB Review;
amendments, particularly the Electronic Comments Comment Request
application of partial tear-up and • Use the Commission’s Internet Upon Written Request, Copies Available
reduced gain distributions to customer comment form (http://www.sec.gov/ From: Securities and Exchange
positions. As discussed above, ICC rules/sro.shtml); or Commission, Office of FOIA Services,
believes the use of these recovery tools, • Send an email to rule-comments@ 100 F Street NE., Washington, DC
for customer as well as proprietary sec.gov. Please include File Number SR– 20549–2736
positions of Participants, reflects an ICC–2016–013 on the subject line. Extension:
appropriate balancing of the legitimate Rule 15c3–5, SEC File No. 270–601, OMB
Paper Comments
interests of the clearing house, Control No. 3235–0673
Participants and customers in extreme Send paper comments in triplicate to Notice is hereby given that, pursuant
default scenarios. ICC also believes that Secretary, Securities and Exchange to the Paperwork Reduction Act of 1995
the risks of such recovery tools are Commission, 100 F Street NE., (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
mitigated by the expanded opportunity Washington, DC 20549–1090. Securities and Exchange Commission
for customers to participate, either All submissions should refer to File (‘‘Commission’’) has submitted to the
directly or indirectly, in default Number SR–ICC–2016–013. This file Office of Management and Budget
auctions, as noted above. Other buy-side number should be included on the (‘‘OMB’’) a request for approval of
customers have expressed concern with subject line if email is used. To help the extension of the previously approved
the potential use of reduced gain Commission process and review your collection of information provided for in
distribution before the exhaustion of all comments more efficiently, please use Rule 15c3–5 (17 CFR 240.15c3–5) under
other potential clearing house resources. only one method. The Commission will the Securities Exchange Act of 1934 (15
As discussed above, in light of such post all comments on the Commission’s U.S.C. 78a et seq.) (‘‘Exchange Act’’).
concerns, ICC has limited the use of Internet Web site (http://www.sec.gov/ Rule 15c3–5 under the Exchange Act
reduced gain distribution to scenarios rules/sro.shtml). Copies of the requires brokers or dealers with access
where all other financial resources of submission, all subsequent to trading directly on an exchange or
the clearing house have been exhausted. amendments, all written statements alternative trading system (‘‘ATS’’),
Certain customers have also suggested with respect to the proposed rule including those providing sponsored or
that the clearing house increase the change that are filed with the direct market access to customers or
amount of its own contribution to the Commission, and all written other persons, to implement risk
guaranty fund, and place such communications relating to the management controls and supervisory
contribution higher in the priority proposed rule change between the procedures reasonably designed to
waterfall of default resources. As Commission and any person, other than manage the financial, regulatory, and
discussed above, ICC has increased the those that may be withheld from the other risks of this business activity.
priority of its contributions in the public in accordance with the The rule requires brokers or dealers to
waterfall, to a position prior to the provisions of 5 U.S.C. 552, will be
sradovich on DSK3GMQ082PROD with NOTICES

establish, document, and maintain
guaranty fund contributions of non- available for Web site viewing and certain risk management controls and
defaulting Participants (although ICC printing in the Commission’s Public supervisory procedures as well as
has not proposed to change the Reference Room, 100 F Street NE., regularly review such controls and
aggregate amount of its contribution). Washington, DC 20549, on official procedures, and document the review,
ICC will notify the Commission of any business days between the hours of and remediate issues discovered to
written comments on the proposed rule 10:00 a.m. and 3:00 p.m. [sic] Copies of
changes received by ICC. such filings will also be available for 18 17 CFR 200.30–3(a)(12).

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83916 Federal Register / Vol. 81, No. 225 / Tuesday, November 22, 2016 / Notices

assure overall effectiveness of such or by sending an email to: Shagufta_ In addition, the information collected
controls and procedures. Each such Ahmed@omb.eop.gov; and (ii) Pamela under Rule 201’s written policies and
broker or dealer is required to preserve Dyson, Director/Chief Information procedures requirement applicable to
a copy of its supervisory procedures and Officer, Securities and Exchange trading centers helps to ensure that
a written description of its risk Commission, c/o Remi Pavlik-Simon, trading centers do not execute or
management controls as part of its books 100 F Street NE., Washington, DC display any impermissibly priced short
and records in a manner consistent with 20549, or by sending an email to: PRA_ sale orders, unless an order is marked
Rule 17a–4(e)(7) under the Exchange Mailbox@sec.gov. Comments must be ‘‘short exempt,’’ in accordance with the
Act. Such regular review is required to submitted to OMB within 30 days of rule’s requirements. Similarly, the
be conducted in accordance with this notice. information collected under the written
written procedures and is required to be Dated: November 16, 2016. policies and procedures requirement of
documented. The broker or dealer is the broker-dealer provision of Rule
Brent J. Fields,
required to preserve a copy of such 201(c) and the riskless principal
written procedures, and documentation Secretary.
[FR Doc. 2016–28028 Filed 11–21–16; 8:45 am] provision of Rule 201(d)(6) helps to
of each such review, as part of its books ensure that broker-dealers comply with
and records in a manner consistent with BILLING CODE 8011–01–P
the requirements of these provisions.
Rule 17a–4(e)(7) under the Exchange
The information collected pursuant to
Act, and Rule 17a–4(b) under the
SECURITIES AND EXCHANGE the ‘‘short exempt’’ marking
Exchange Act, respectively.
In addition, the Chief Executive COMMISSION requirement of Rule 200(g) also provides
Officer (or equivalent officer) is required an indication to a trading center of
to certify annually that the broker or Proposed Collection; Comment when it must execute or display a short
dealer’s risk management controls and Request sale order without regard to whether the
supervisory procedures comply with the short sale order is at a price that is less
Upon Written Request, Copies Available than or equal to the current national
rule, and that the broker-dealer
From: Securities and Exchange best bid.
conducted such review. Such
Commission, Office of FOIA Services,
certifications are required to be It is estimated that SRO and non-SRO
preserved by the broker or dealer as part 100 F Street NE., Washington, DC
20549–2736. respondents registered with the
of its books and records in a manner Commission and subject to the
consistent with Rule 17a–4(b) under the Extension: collection of information requirements
Exchange Act. Compliance with Rule Rule 201 and Rule 200(g) of Regulation
of Rule 201 and Rule 200(g) incur an
15c3–5 is mandatory. SHO, SEC File No. 270–606, OMB
Control No. 3235–0670. aggregate annual burden of 2,908,309
Respondents consist of broker-dealers hours to comply with the rules and an
with access to trading directly on an Notice is hereby given that pursuant aggregate annual external cost of
exchange or ATS. The Commission to the Paperwork Reduction Act of 1995 $120,000.
estimates that there are currently 640 (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
respondents. To comply with Rule Written comments are invited on: (a)
Securities and Exchange Commission Whether the proposed collection of
15c3–5, these respondents will spend a (‘‘Commission’’) is soliciting comments
total of approximately 102,400 hours information is necessary for the proper
on the existing collection of information
per year (160 hours per broker-dealer × provided for in Rule 201 (17 CFR
performance of the functions of the
640 broker-dealers = 102,400 hours). At Commission, including whether the
242.201) and Rule 200(g) (17 CFR information shall have practical utility;
an average internal cost per burden hour
242.200(g)) under the Securities (b) the accuracy of the Commission’s
of approximately $339.09, the resultant
Exchange Act of 1934 (15 U.S.C. 78a et estimates of the burden of the proposed
total related internal cost of compliance
seq.). The Commission plans to submit collection of information; (c) ways to
for these respondents is $34,722,560 per
this existing collection of information to enhance the quality, utility, and clarity
year (102,400 burden hours multiplied
the Office of Management and Budget of the information collected; and (d)
by approximately $339.09/hour). In
(‘‘OMB’’) for extension and approval.
addition, for hardware and software ways to minimize the burden of the
expenses, the Commission estimates Rule 201 is a short sale-related circuit collection of information on
that the average annual external cost breaker rule that, if triggered, imposes a respondents, including through the use
would be approximately $20,500 per restriction on the prices at which of automated collection techniques or
broker-dealer, or $13,120,000 in the securities may be sold short. Rule 200(g) other forms of information technology.
aggregate ($20,500 per broker-dealer × provides that a broker-dealer may mark Consideration will be given to
640 brokers and dealers = $13,120,000). certain qualifying sell orders ‘‘short comments and suggestions submitted in
An agency may not conduct or exempt.’’ The information collected writing within 60 days of this
sponsor, and a person is not required to under Rule 201’s written policies and publication.
respond to, a collection of information procedures requirement applicable to
trading centers, the written policies and An agency may not conduct or
under the PRA unless it displays a
procedures requirement of the broker- sponsor, and a person is not required to
currently valid OMB control number.
The public may view background dealer provision of Rule 201(c), the respond to, a collection of information
documentation for this information written policies and procedures under the PRA unless it displays a
collection at the following Web site: requirement of the riskless principal currently valid OMB control number.
sradovich on DSK3GMQ082PROD with NOTICES

www.reginfo.gov. Comments should be provision of Rule 201(d)(6), and the Please direct your written comments
directed to: (i) Desk Officer for the ‘‘short exempt’’ marking requirement of to: Pamela Dyson, Director/Chief
Securities and Exchange Commission, Rule 200(g) enable the Commission and Information Officer, Securities and
Office of Information and Regulatory self-regulatory organizations (‘‘SROs’’) Exchange Commission, c/o Remi Pavlik-
Affairs, Office of Management and to examine and monitor for compliance Simon, 100 F Street NE., Washington,
Budget, Room 10102, New Executive with the requirements of Rule 201 and DC 20549, or send an email to: PRA_
Office Building, Washington, DC 20503, Rule 200(g). Mailbox@sec.gov.

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Document Created: 2018-02-14 08:29:13
Document Modified: 2018-02-14 08:29:13

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 83915