[Federal Register Volume 86, Number 214 (Tuesday, November 9, 2021)]
[Notices]
[Page 62235]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-24427]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-442, OMB Control No. 3235-0498]


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-12/Form X-17A-5 Part II

    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 Rule 17a-12 (17 CFR 240.17a-
12) and Part II of Form X-17A-5 (17 CFR 249.617) 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.
    Rule 17a-12 is the reporting rule tailored specifically for over-
the-counter (``OTC'') derivatives dealers registered with the 
Commission, and Part II of Form X-17A-5, the Financial and Operational 
Combined Uniform Single (``FOCUS'') Report, is the basic document for 
reporting the financial and operational condition of OTC derivatives 
dealers. Rule 17a-12 requires registered OTC derivatives dealers to 
file Part II of the FOCUS Report quarterly. Rule 17a-12 also requires 
that OTC derivatives dealers file audited financial statements 
(``audited report'') annually.
    The reports required under Rule 17a-12 provide the Commission with 
information used to monitor the operations of OTC derivatives dealers 
and to enforce their compliance with the Commission's rules. These 
reports also enable the Commission to review the business activities of 
OTC derivatives dealers and to anticipate, where possible, how these 
dealers may be affected by significant economic events.
    There are currently five registered OTC derivatives dealers. The 
staff expects that three of those firms will register as Security-Based 
Swap Dealers within the next three years and therefore will no longer 
be subject to Rule 17a-12. Thus, only two OTC derivatives dealers will 
be subject to the requirements of Rule 17a-12. The staff estimates that 
the average amount of time necessary to prepare and file the quarterly 
reports required by the rule is eighty hours per OTC derivatives dealer 
\1\ per year and that the average amount of time to prepare and file 
the annual audited report is 100 hours per OTC derivatives dealer per 
year, for a total reporting burden of 180 hours per OTC derivatives 
dealer annually. Thus the staff estimates that the total industry-wide 
time burden to comply with the requirements of Rule 17a-12 is 360 hours 
per year (180 x 2). The Commission estimates that the average annual 
cost per OTC derivatives dealer for an independent public accountant to 
examine the financial statements is approximately $46,300 per OTC 
derivatives dealer. Thus, the total industry-wide annual cost burden is 
approximately $92,600 ($46,300 x 2).
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    \1\ Based upon an average of 4 responses per year and an average 
of 20 hours spent preparing each response.
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    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 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 unless it displays a 
currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
R. Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email 
to: [email protected].

    Dated: November 3, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-24427 Filed 11-8-21; 8:45 am]
BILLING CODE 8011-01-P


