83 FR 53689 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 206 (October 24, 2018)

Page Range		53689-53690
FR Document		2018-23206
Federal Register, Volume 83 Issue 206 (Wednesday, October 24, 2018)
[Federal Register Volume 83, Number 206 (Wednesday, October 24, 2018)]
[Notices]
[Pages 53689-53690]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-23206]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: US Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Rules 3a68-2 and 3a68-4(c)
    SEC File No. 270-641, OMB Control No. 3235-0685

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``SEC'') is soliciting comments on the existing collection 
of information provided for Rules 3a68-2 and 3a68-4(c). The SEC plans 
to submit this existing collection of information to the Office of 
Management and Budget (``OMB'') for extension and approval.
    Rule 3a68-2 creates a process for interested persons to request a 
joint interpretation by the SEC and the Commodity Futures Trading 
Commission (``CFTC'') (together with the SEC, the ``Commissions'') 
regarding whether a particular instrument (or class of instruments) is 
a swap, a security-based swap, or both (i.e., a mixed swap). Under Rule 
3a68-2, a person provides to the Commissions a copy of all material 
information regarding the terms of, and a statement of the economic 
characteristics and purpose of, each relevant agreement, contract, or 
transaction (or class thereof), along with that person's determination 
as to whether each such agreement, contract, or transaction (or class 
thereof) should be characterized as a swap, security-based swap, or 
both (i.e., a mixed swap). The Commissions also may request the 
submitting person to provide additional information.
    The SEC expects 25 requests pursuant to Rule 3a68-2 per year. The 
SEC estimates the total paperwork burden associated with preparing and 
submitting each request would be 20 hours to retrieve, review, and 
submit the information associated with the submission. This 20 hour 
burden is divided between the SEC and the CFTC, with 10 hours per 
response regarding reporting to the SEC and 10 hours of response 
regarding third party disclosure to the CFTC.\1\ The SEC estimates this 
would result in an

[[Page 53690]]

aggregate annual burden of 500 hours (25 requests x 20 hours/request).
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    \1\ The burdens imposed by the CFTC are included in this 
collection of information.
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    The SEC estimates that the total costs resulting from a submission 
under Rule 3a68-2 would be approximately $12,000 for outside attorneys 
to retrieve, review, and submit the information associated with the 
submission. The SEC estimates this would result in aggregate costs each 
year of $300,000 (25 requests x 30 hours/request x $400).
    Rule 3a68-4(c) establishes a process for persons to request that 
the Commissions issue a joint order permitting such persons (and any 
other person or persons that subsequently lists, trades, or clears that 
class of mixed swap) to comply, as to parallel provisions only, with 
specified parallel provisions of either the Commodity Exchange Act 
(``CEA'') or the Securities Exchange Act of 1934 (``Exchange Act''), 
and related rules and regulations (collectively ``specified parallel 
provisions''), instead of being required to comply with parallel 
provisions of both the CEA and the Exchange Act.
    The SEC expects ten requests pursuant to Rule 3a68-4(c) per year. 
The SEC estimates that nine of these requests will have also been made 
in a request for a joint interpretation pursuant to Rule 3a68-2, and 
one will not have been. The SEC estimates the total burden for the one 
request for which the joint interpretation pursuant to 3a68-2 was not 
requested would be 30 hours, and the total burden associated with the 
other nine requests would be 20 hours per request because some of the 
information required to be submitted pursuant to Rule 3a68-4(c) would 
have already been submitted pursuant to Rule 3a68-2. The burden in both 
cases is evenly divided between the SEC and the CFTC.
    The SEC estimates that the total costs resulting from a submission 
under Rule 3a68-4(c) would be approximately $20,000 for the services of 
outside attorneys to retrieve, review, and submit the information 
associated with the submission of the one request for which a request 
for a joint interpretation pursuant to Rule 3a68-2 was not previously 
made (1 request x 50 hours/request x $400). For the nine requests for 
which a request for a joint interpretation pursuant to Rule 3a68-2 was 
previously made, the SEC estimates the total costs associated with 
preparing and submitting a party's request pursuant to Rule 3a68-4(c) 
would be $6,000 less per request because, as discussed above, some of 
the information required to be submitted pursuant to Rule 3a68-4(c) 
already would have been submitted pursuant to Rule 3a68-2. The SEC 
estimates this would result in an aggregate cost each year of $126,000 
for the services of outside attorneys (9 requests x 35 hours/request x 
$400).
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the SEC, including whether the information shall have 
practical utility; (b) the accuracy of the SEC'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: Charles Riddle, Acting 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Candace Kenner, 100 F Street NE, Washington, DC 20549, or send an 
email to: PRA_Mailbox@sec.gov.

    Dated: October 19, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-23206 Filed 10-23-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices 53689

SECURITIES AND EXCHANGE respondents must make five annual SECURITIES AND EXCHANGE
COMMISSION responses under Rule 17h–2T. These COMMISSION
five responses are estimated to require
Proposed Collection; Comment 14 hours per respondent per year for an Proposed Collection; Comment
Request aggregate estimated annual burden of Request
Upon Written Request, Copies Available 3,990 hours (285 respondents × 14
hours). Upon Written Request, Copies Available
From: Securities and Exchange
From: US Securities and Exchange
Commission, Office of FOIA Services, In addition, new respondents must Commission, Office of FOIA Services,
100 F Street NE, Washington, DC draft an organizational chart required 100 F Street NE, Washington, DC
20549–2736. under Rule 17h–1T and establish a 20549–2736
Extension: system for complying with the risk
Rules 17h–1T and 17h–2T, SEC File No. Extension:
assessment rules. The staff estimates Rules 3a68–2 and 3a68–4(c)
270–359, OMB Control No. 3235–0410. that drafting the required organizational SEC File No. 270–641, OMB Control No.
Notice is hereby given that pursuant chart requires one hour and establishing 3235–0685
to the Paperwork Reduction Act of 1995 a system for complying with the risk
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the assessment rules requires three hours. Notice is hereby given that pursuant
Securities and Exchange Commission Based on the reduction in the number to the Paperwork Reduction Act of 1995
(‘‘Commission’’) is soliciting comments of filers in recent years, the staff (44 U.S.C. 3501 et seq.), the Securities
on the existing collection of information estimates there will be zero new and Exchange Commission (‘‘SEC’’) is
provided for in Rules 17h–1T and 17h– respondents, and thus, a corresponding soliciting comments on the existing
2T (17 CFR 240.17h–1T and 17 CFR collection of information provided for
estimated burden of zero hours for new
240.17h–2T), under the Securities Rules 3a68–2 and 3a68–4(c). The SEC
respondents. Thus, the total compliance
Exchange Act of 1934 (15 U.S.C. 78a et plans to submit this existing collection
seq.). The Commission plans to submit burden per year is approximately 6,840
of information to the Office of
this existing collection of information to burden hours (2,850 hours + 3,990
Management and Budget (‘‘OMB’’) for
the Office of Management and Budget hours). extension and approval.
(‘‘OMB’’) for extension and approval. Written comments are invited on: (a) Rule 3a68–2 creates a process for
Rule 17h–1T requires a covered Whether the proposed collection of interested persons to request a joint
broker-dealer to maintain and preserve information is necessary for the proper interpretation by the SEC and the
records and other information performance of the functions of the Commodity Futures Trading
concerning certain entities that are Commission, including whether the Commission (‘‘CFTC’’) (together with
associated with the broker-dealer. This information will have practical utility; the SEC, the ‘‘Commissions’’) regarding
requirement extends to the financial and (b) the accuracy of the Commission’s whether a particular instrument (or
securities activities of the holding estimate of the burden of the collection
company, affiliates and subsidiaries of class of instruments) is a swap, a
of information; (c) ways to enhance the security-based swap, or both (i.e., a
the broker-dealer that are reasonably
quality, utility, and clarity of the mixed swap). Under Rule 3a68–2, a
likely to have a material impact on the
financial or operational condition of the information collected; and (d) ways to person provides to the Commissions a
broker-dealer. Rule 17h–2T requires a minimize the burden of the collection of copy of all material information
covered broker-dealer to file with the information on respondents, including regarding the terms of, and a statement
Commission quarterly reports and a through the use of automated collection of the economic characteristics and
cumulative year-end report concerning techniques or other forms of information purpose of, each relevant agreement,
the information required to be technology. Consideration will be given contract, or transaction (or class
maintained and preserved under Rule to comments and suggestions submitted thereof), along with that person’s
17h–1T. in writing within 60 days of this determination as to whether each such
The collection of information required publication. agreement, contract, or transaction (or
by Rules 17h–1T and 17h–2T, class thereof) should be characterized as
An agency may not conduct or a swap, security-based swap, or both
collectively referred to as the ‘‘risk sponsor, and a person is not required to
assessment rules’’, is necessary to (i.e., a mixed swap). The Commissions
respond to, a collection of information also may request the submitting person
enable the Commission to monitor the
under the PRA unless it displays a to provide additional information.
activities of a broker-dealer affiliate
currently valid OMB control number.
whose business activities are reasonably The SEC expects 25 requests pursuant
likely to have a material impact on the Please direct your written comments to Rule 3a68–2 per year. The SEC
financial and operational condition of to: Charles Riddle, Acting Director/Chief estimates the total paperwork burden
the broker-dealer. Without this Information Officer, Securities and associated with preparing and
information, the Commission would be Exchange Commission, c/o Candace submitting each request would be 20
unable to assess the potentially Kenner, 100 F Street NE, Washington, hours to retrieve, review, and submit the
damaging impact of the affiliate’s DC 20549, or send an email to: PRA_ information associated with the
activities on the broker-dealer. Mailbox@sec.gov. submission. This 20 hour burden is
There are currently 285 respondents divided between the SEC and the CFTC,
Dated: October 19, 2018.
that must comply with Rules 17h–1T with 10 hours per response regarding
amozie on DSK3GDR082PROD with NOTICES1

and 17h–2T. Each of these 285 Eduardo A. Aleman,
reporting to the SEC and 10 hours of
respondents are estimated to require 10 Assistant Secretary. response regarding third party
hours per year to maintain the records [FR Doc. 2018–23199 Filed 10–23–18; 8:45 am] disclosure to the CFTC.1 The SEC
required under Rule 17h–1T, for an BILLING CODE 8011–01–P estimates this would result in an
aggregate estimated annual burden of
2,850 hours (285 respondents × 10 1 The burdens imposed by the CFTC are included

hours). In addition, each of these 285 in this collection of information.

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53690 Federal Register / Vol. 83, No. 206 / Wednesday, October 24, 2018 / Notices

aggregate annual burden of 500 hours would result in an aggregate cost each the Office of Management and Budget
(25 requests × 20 hours/request). year of $126,000 for the services of (‘‘OMB’’) for extension and approval.
The SEC estimates that the total costs outside attorneys (9 requests × 35 hours/ Rule 15c3–4 requires certain broker-
resulting from a submission under Rule request × $400). dealers that are registered with the
3a68–2 would be approximately $12,000 Written comments are invited on: (a) Commission as OTC derivatives dealers,
for outside attorneys to retrieve, review, Whether the proposed collection of or who compute their net capital
and submit the information associated information is necessary for the proper charges under Appendix E to Rule
with the submission. The SEC estimates performance of the functions of the SEC, 15c3–1 (17 CFR 240.15c3–1) (‘‘ANC
this would result in aggregate costs each including whether the information shall firms’’), to establish, document, and
year of $300,000 (25 requests × 30 have practical utility; (b) the accuracy of maintain a system of internal risk
hours/request × $400). the SEC’s estimates of the burden of the management controls. The Rule sets
Rule 3a68–4(c) establishes a process proposed collection of information; (c) forth the basic elements for an OTC
for persons to request that the ways to enhance the quality, utility, and derivatives dealer or an ANC firm to
Commissions issue a joint order clarity of the information to be consider and include when establishing,
permitting such persons (and any other collected; and (d) ways to minimize the documenting, and reviewing its internal
person or persons that subsequently burden of the collection of information risk management control system, which
lists, trades, or clears that class of mixed are designed to, among other things,
on respondents, including through the
swap) to comply, as to parallel ensure the integrity of an OTC
use of automated collection techniques
provisions only, with specified parallel derivatives dealer’s or an ANC firm’s
or other forms of information
provisions of either the Commodity risk measurement, monitoring, and
technology. Consideration will be given
Exchange Act (‘‘CEA’’) or the Securities management process, to clarify
to comments and suggestions submitted
Exchange Act of 1934 (‘‘Exchange Act’’), accountability at the appropriate
in writing within 60 days of this
and related rules and regulations organizational level, and to define the
publication.
(collectively ‘‘specified parallel permitted scope of the dealer’s activities
provisions’’), instead of being required An agency may not conduct or and level of risk. The Rule also requires
to comply with parallel provisions of sponsor, and a person is not required to that management of an OTC derivatives
both the CEA and the Exchange Act. respond to, a collection of information dealer or an ANC firm must periodically
The SEC expects ten requests under the PRA unless it displays a review, in accordance with written
pursuant to Rule 3a68–4(c) per year. currently valid OMB control number. procedures, the firm’s business
The SEC estimates that nine of these Please direct your written comments activities for consistency with its risk
requests will have also been made in a to: Charles Riddle, Acting Director/Chief management guidelines.
request for a joint interpretation Information Officer, Securities and The staff estimates that the average
pursuant to Rule 3a68–2, and one will Exchange Commission, c/o Candace amount of time a new OTC derivatives
not have been. The SEC estimates the Kenner, 100 F Street NE, Washington, dealer will spend establishing and
total burden for the one request for DC 20549, or send an email to: PRA_ documenting its risk management
which the joint interpretation pursuant Mailbox@sec.gov. control system is 2,000 hours and that,
to 3a68–2 was not requested would be Dated: October 19, 2018. on average, a registered OTC derivatives
30 hours, and the total burden dealer will spend approximately 200
Eduardo A. Aleman,
associated with the other nine requests hours each year to maintain (e.g.,
Assistant Secretary.
would be 20 hours per request because reviewing and updating) its risk
some of the information required to be [FR Doc. 2018–23206 Filed 10–23–18; 8:45 am]
management control system.1 Currently,
submitted pursuant to Rule 3a68–4(c) BILLING CODE 8011–01–P three firms are registered with the
would have already been submitted Commission as OTC derivatives dealers.
pursuant to Rule 3a68–2. The burden in The staff estimates that approximately
both cases is evenly divided between SECURITIES AND EXCHANGE six additional OTC derivatives dealers
the SEC and the CFTC. COMMISSION may become registered within the next
The SEC estimates that the total costs three years. Thus, the estimated
resulting from a submission under Rule Proposed Collection; Comment
Request annualized burden would be 600 hours
3a68–4(c) would be approximately for the three OTC derivatives dealers
$20,000 for the services of outside Upon Written Request, Copies Available currently registered with the
attorneys to retrieve, review, and submit From: Securities and Exchange Commission to maintain their risk
the information associated with the Commission, Office of FOIA Services, management control systems,2 4,000
submission of the one request for which 100 F Street NE, Washington, DC hours for the six new OTC derivatives
a request for a joint interpretation 20549–2736 dealers to establish and document their
pursuant to Rule 3a68–2 was not risk management control systems,3 and
previously made (1 request × 50 hours/ Extension:
Rule 15c3–4, SEC File No. 270–441, OMB
1,200 hours for the six new OTC
request × $400). For the nine requests derivatives dealers to maintain their risk
Control No. 3235–0497
for which a request for a joint management control systems.4
interpretation pursuant to Rule 3a68–2 Notice is hereby given that pursuant
was previously made, the SEC estimates to the Paperwork Reduction Act of 1995 1 This notice does not cover the hour burden

the total costs associated with preparing (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the associated with ANC firms, because the hour
burden for ANC firms is included in the Paperwork
and submitting a party’s request Securities and Exchange Commission
amozie on DSK3GDR082PROD with NOTICES1

Reduction Act collection for Rule 15c3–1, which
pursuant to Rule 3a68–4(c) would be (‘‘Commission’’) is soliciting comments requires ANC firms to comply with specific
$6,000 less per request because, as on the collection of information provisions of Rule 15c3–4 in Appendix E to Rule
discussed above, some of the provided for in Rule 15c3–4 (17 CFR 15c3–1. See 17 CFR 240.15c3–1(a)(7)(iii), 17 CFR
240.15c3–1e(a)(1)(ii), and 17 CFR 240.15c3–
information required to be submitted 240.15c3–4) under the Securities 1e(a)(1)(viii)(C).
pursuant to Rule 3a68–4(c) already Exchange Act of 1934 (15 U.S.C. 78a et 2 (200 hours × 3 firms) = 600.

would have been submitted pursuant to seq.). The Commission plans to submit 3 ((2,000 hours/3 years) × 6 firms) = 4,000.

Rule 3a68–2. The SEC estimates this this existing collection of information to 4 (200 hours × 6 firms) = 1,200.

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Document Created: 2018-10-24 00:24:45
Document Modified: 2018-10-24 00:24:45
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		83 FR 53689