[Federal Register Volume 87, Number 1 (Monday, January 3, 2022)]
[Notices]
[Pages 127-128]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-28427]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-641, OMB Control No. 3235-0685]


Proposed Collection; Comment Request; Extension: Rules 3a68-2 and 
3a68-4(c)

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

    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 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

[[Page 128]]

$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: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: December 28, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-28427 Filed 12-30-21; 8:45 am]
BILLING CODE 8011-01-P


