[Federal Register Volume 87, Number 13 (Thursday, January 20, 2022)]
[Notices]
[Pages 3140-3141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01056]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-441, OMB Control No. 3235-0497]


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 15c3-4

    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 collection of 
information

[[Page 3141]]

provided for in Rule 15c3-4 (17 CFR 240.15c3-4) 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 15c3-4 requires certain broker-dealers that are registered 
with the Commission as OTC derivatives dealers, or who compute their 
net capital charges under Appendix E to Rule 15c3-1 (17 CFR 240.15c3-1) 
(``ANC firms''), to establish, document, and maintain a system of 
internal risk management controls. In addition, security-based swap 
dealers (``SBSDs'') that are subject to Rule 18a-1 (17 CFR 240.18a-1) 
must comply with Rule 15c3-4 as if they were OTC derivatives dealers. 
The Rule sets forth the basic elements for an OTC derivatives dealer, 
an ANC firm, or an SBSD to consider and include when establishing, 
documenting, and reviewing its internal risk management control system, 
which is designed to, among other things, ensure the integrity of an 
OTC derivatives dealer's, an ANC firm's, or an SBDS's risk measurement, 
monitoring, and management process, to clarify accountability at the 
appropriate organizational level, and to define the permitted scope of 
the firm's activities and level of risk. The Rule also requires that 
management of an OTC derivatives dealer, ANC firm, or SBSD must 
periodically review, in accordance with written procedures, the firm's 
business activities for consistency with its risk management 
guidelines.
    The staff estimates that the average amount of time a new firm 
subject to Rule 15c3-4 will spend establishing and documenting its risk 
management control system is approximately 2,000 hours (666.666667 
hours per year when annualized over three years) and that, on average, 
an existing firm subject to Rule 15c3-4 will spend approximately 200 
hours each year to maintain (e.g., reviewing and updating) its risk 
management control system. Currently, five firms are registered with 
the Commission as OTC derivatives dealers, five as ANC firms, and one 
as an SBSD. The staff estimates that approximately two new additional 
entities may register as OTC derivatives dealers, one new entity may 
register as an ANC firm, and two new entities may register as SBSDs 
subject to the requirements of Rule 15c3-4 within the next three years. 
Thus, the estimated annual burden would be approximately 2,200 hours 
for the eleven existing firms (five OTC derivatives dealers, five ANC 
firms, and one SBSD) currently required to comply with Rule 15c3-4 to 
maintain their risk management control systems,\1\ 3,333 hours for the 
five new firms (two new OTC derivatives dealers, one new ANC firm, and 
two new SBSDs) to establish and document their risk management control 
systems,\2\ and 1,000 hours for the five new firms (two new OTC 
derivatives dealers, one new ANC firm, and two new SBSDs) to maintain 
their risk management control systems.\3\ Accordingly, the staff 
estimates the total annual burden associated with Rule 15c3-4 for the 
16 respondents (nine OTC derivatives dealers, six ANC firms, and five 
SBSDs) will be approximately 6,533 hours per year.
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    \1\ (200 hours x 11 firms) = 2200.
    \2\ ((2,000 hours/3 years) x 5 firms) = 3,333.
    \3\ (200 hours x 5 firms) = 1,000.
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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 
estimates 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 unless it displays a 
currently valid OMB control number.
    Please direct your written comments to: David Bottom, Acting 
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: January 14, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01056 Filed 1-19-22; 8:45 am]
BILLING CODE 8011-01-P


