82 FR 16637 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 64 (April 5, 2017)

Page Range		16637-16638
FR Document		2017-06695
Federal Register, Volume 82 Issue 64 (Wednesday, April 5, 2017)
[Federal Register Volume 82, Number 64 (Wednesday, April 5, 2017)]
[Notices]
[Pages 16637-16638]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2017-06695]


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SECURITIES AND EXCHANGE COMMISSION


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:
    Rule 17a-5; SEC File No. 270-155, OMB Control No. 3235-0123.

    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 Rule 17a-5 (17 CFR 240.17a-
5), under the Securities

[[Page 16638]]

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.
    Rule 17a-5 is the basic financial reporting rule for brokers and 
dealers.\1\ The rule requires the filing of Form X-17A-5, the Financial 
and Operational Combined Uniform Single Report (``FOCUS Report''), 
which was the result of years of study and comments by representatives 
of the securities industry through advisory committees and through the 
normal rule proposal methods. The FOCUS Report was designed to 
eliminate the overlapping regulatory reports required by various self-
regulatory organizations and the Commission and to reduce reporting 
burdens as much as possible. The rule also requires the filing of an 
annual audited report of financial statements.
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    \1\ Rule 17a-5(c) requires a broker or dealer to furnish certain 
of its financial information to customers and is subject to a 
separate PRA filing (OMB Control Number 3235-0199).
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    The FOCUS Report consists of: (1) Part I, which is a monthly report 
that must be filed by brokers or dealers that clear transactions or 
carry customer securities; (2) one of three alternative quarterly 
reports: Part II, which must be filed by brokers or dealers that clear 
transactions or carry customer securities; Part IIA, which must be 
filed by brokers or dealers that do not clear transactions or carry 
customer securities; and Part IIB, which must be filed by specialized 
broker-dealers registered with the Commission as OTC derivatives 
dealers; \2\ (3) supplemental schedules, which must be filed annually; 
and (4) a facing page, which must be filed with the annual audited 
report of financial statements. Under the rule, a broker or dealer that 
computes certain of its capital charges in accordance with Appendix E 
to Exchange Act Rule 15c3-1 must file additional monthly, quarterly, 
and annual reports with the Commission.
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    \2\ Part IIB of Form X-17A-5 must be filed by OTC derivatives 
dealers under Exchange Act Rule 17a-12 and is subject to a separate 
PRA filing (OMB control number 3235-0498).
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    The Commission estimates that the total hours burden under Rule 
17a-5 is approximately 356,020 hours per year when annualized, and the 
total cost burden under Rule 17a-5 is approximately $45,133,148 per 
year.
    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 
estimate 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: March 30, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-06695 Filed 4-4-17; 8:45 am]
 BILLING CODE 8011-01-P
16638 Federal Register / Vol. 82, No. 64 / Wednesday, April 5, 2017 / Notices

Exchange Act of 1934 (15 U.S.C. 78a et estimate of the burden of the proposed was published for comment in the
seq.). The Commission plans to submit collection of information; (c) ways to Federal Register on February 9, 2017.3
this existing collection of information to enhance the quality, utility, and clarity The Commission received three
the Office of Management and Budget of the information collected; and (d) comment letters 4 to the Proposed Rule
(‘‘OMB’’) for extension and approval. ways to minimize the burden of the Change, including a response letter from
Rule 17a–5 is the basic financial collection of information on FICC.
reporting rule for brokers and dealers.1 respondents, including through the use
The rule requires the filing of Form X– II. Description of the Proposed Rule
of automated collection techniques or
17A–5, the Financial and Operational Change
other forms of information technology.
Combined Uniform Single Report Consideration will be given to The Proposed Rule Change proposes
(‘‘FOCUS Report’’), which was the result comments and suggestions submitted in several amendments to the FICC
of years of study and comments by writing within 60 days of this Government Securities Division
representatives of the securities industry publication. (‘‘GSD’’) Rulebook (‘‘GSD Rules’’) 5
through advisory committees and An agency may not conduct or designed to provide FICC with a
through the normal rule proposal sponsor, and a person is not required to supplemental means to calculate the
methods. The FOCUS Report was respond to, a collection of information VaR Charge component of its GSD
designed to eliminate the overlapping under the PRA unless it displays a Netting Members’ (‘‘Netting Members’’)
regulatory reports required by various currently valid OMB control number. daily margin requirement, known as the
self-regulatory organizations and the Please direct your written comments ‘‘Required Fund Deposit.’’ Specifically,
Commission and to reduce reporting to: Pamela Dyson, Director/Chief under the proposal, FICC would include
burdens as much as possible. The rule Information Officer, Securities and a minimum volatility calculation for a
also requires the filing of an annual Exchange Commission, c/o Remi Pavlik- Netting Member’s VaR Charge called the
audited report of financial statements. Simon, 100 F Street NE., Washington, ‘‘Margin Proxy.’’ FICC represents that
The FOCUS Report consists of: (1) DC 20549, or send an email to PRA_ the Margin Proxy would enhance the
Part I, which is a monthly report that Mailbox@sec.gov. risk-based model and parameters that
must be filed by brokers or dealers that FICC uses to establish Netting Members’
Dated: March 30, 2017.
clear transactions or carry customer Required Fund Deposits by enabling
securities; (2) one of three alternative Eduardo A. Aleman,
FICC to better identify the risk posed by
quarterly reports: Part II, which must be Assistant Secretary. a Netting Member’s unsettled portfolio.
filed by brokers or dealers that clear [FR Doc. 2017–06695 Filed 4–4–17; 8:45 am]
transactions or carry customer BILLING CODE 8011–01–P
A. Overview of the Required Fund
securities; Part IIA, which must be filed Deposit
by brokers or dealers that do not clear According to FICC, a key tool it uses
transactions or carry customer SECURITIES AND EXCHANGE to manage market risk is the daily
securities; and Part IIB, which must be COMMISSION calculation and collection of Required
filed by specialized broker-dealers [Release No. 34–80349; File No. SR–FICC– Fund Deposits from its Netting
registered with the Commission as OTC 2017–001] Members. The Required Fund Deposit is
derivatives dealers; 2 (3) supplemental intended to mitigate potential losses to
schedules, which must be filed Self-Regulatory Organizations; Fixed FICC associated with liquidation of such
annually; and (4) a facing page, which Income Clearing Corporation; Order Netting Member’s accounts at GSD that
must be filed with the annual audited Approving a Proposed Rule Change To are used for margining purposes
report of financial statements. Under the (1) Implement the Margin Proxy, (2) (‘‘Margin Portfolio’’) in the event that
rule, a broker or dealer that computes Modify the Calculation of the Coverage FICC ceases to act for such Netting
certain of its capital charges in Charge in Circumstances Where the Member (referred to as a Netting
accordance with Appendix E to Margin Proxy Applies, and (3) Make Member ‘‘Default’’).
Exchange Act Rule 15c3–1 must file Certain Technical Corrections A Netting Member’s Required Fund
additional monthly, quarterly, and Deposit consists of several components,
March 30, 2017.
annual reports with the Commission. including the VaR Charge and the
The Commission estimates that the I. Introduction Coverage Charge. The VaR Charge
total hours burden under Rule 17a–5 is comprises the largest portion of a
approximately 356,020 hours per year Fixed Income Clearing Corporation
(‘‘FICC’’) filed with the Securities and Netting Member’s Required Fund
when annualized, and the total cost
burden under Rule 17a–5 is Exchange Commission (‘‘Commission’’)
The Commission did not receive any comments on
approximately $45,133,148 per year. on February 2, 2017 the proposed rule the Advance Notice.
Written comments are invited on: (a) change SR–FICC–2017–001 (‘‘Proposed 3 Securities Exchange Act Release No. 79958

Whether the proposed collection of Rule Change’’) pursuant to Section (February 3, 2017), 82 FR 10117 (February 9, 2017)
19(b)(1) of the Securities Exchange Act (SR–FICC–2017–001)(‘‘Notice’’).
information is necessary for the proper 4 See letter from Robert E. Pooler, Chief Financial
performance of the functions of the of 1934 (‘‘Act’’) 1 and Rule 19b–4
Officer, Ronin Capital LLC (‘‘Ronin’’), dated
Commission, including whether the thereunder.2 The Proposed Rule Change February 24, 2017, to Eduardo A. Aleman, Assistant
information shall have practical utility; Secretary, Commission (‘‘Ronin Letter’’); letter from
1 15 U.S.C. 78s(b)(1). Alan Levy, Managing Director, Industrial and
(b) the accuracy of the Commission’s 2 17 CFR 240.19b–4. FICC also filed this proposal Commercial Bank of China Financial Services LLC
jstallworth on DSK7TPTVN1PROD with NOTICES

as an advance notice pursuant to Section 802(e)(1) (‘‘ICBCFS’’), dated February 24, 2017, to
1 Rule 17a–5(c) requires a broker or dealer to Commission (‘‘ICBCFS Letter’’); and Timothy J.
of the Payment, Clearing, and Settlement
furnish certain of its financial information to Supervision Act of 2010 and Rule 19b–4(n)(1) Cuddihy, Managing Director, FICC, dated March 8,
customers and is subject to a separate PRA filing under the Act. 15 U.S.C. 5465(e)(1) and 17 CFR 2017, to Eduardo A. Aleman, Assistant Secretary,
(OMB Control Number 3235–0199). 240.19b–4(n)(1). The advance notice was published Commission (‘‘FICC Letter’’) available at https://
2 Part IIB of Form X–17A–5 must be filed by OTC for comment in the Federal Register on March 2, www.sec.gov/comments/sr-ficc-2017–001/
derivatives dealers under Exchange Act Rule 17a– 2017. See Securities Exchange Act Release No. ficc2017001.htm.
12 and is subject to a separate PRA filing (OMB 80139 (March 2, 2017), 82 FR 80139 (March 8, 5 Available at http://www.dtcc.com/en/legal/

control number 3235–0498). 2017) (SR–FICC–2017–801) (‘‘Advance Notice’’). rules-and-procedures.

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Document Created: 2018-02-01 14:47:16
Document Modified: 2018-02-01 14:47:16
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		82 FR 16637