Order Granting Conditional Exemptions Under the Securities Exchange Act of 1934 in Connection With Portfolio Margining of Swaps and Security-Based Swaps

Forms and Documents

Document	Type	Status	Availability
Supporting Statement for Exemptive Order Granting Conditional Exempt .pdf	Supporting Statement A	Uploaded 2016-03-22	Available
DF 763.pdf	Supplementary Document	Uploaded 2013-01-18	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
205365	Order Granting Conditional Exemptions Under the SecuritiesExchange Act of 1934 in Connection With Portfolio Margining of Swaps andSecurity-Based Swaps	Other-null	Modified

ICR Details

OMB Control No: 3235-0698	ICR Reference No: 201601-3235-001
Status: Historical Active	Previous ICR Reference No: 201301-3235-004
Agency/Subagency: SEC	Agency Tracking No: TM-270-648
Title: Order Granting Conditional Exemptions Under the Securities Exchange Act of 1934 in Connection With Portfolio Margining of Swaps and Security-Based Swaps
Type of Information Collection: Extension without change of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 06/03/2016
	Date Received in OIRA: 03/22/2016
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	06/30/2019	36 Months From Approved	06/30/2016
Responses	45	0	57
Time Burden (Hours)	51,450	0	403,750
Cost Burden (Dollars)	120,000	0	912,000

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Abstract: Order granting conditional exemptive relief from compliance with certain provisions of the Securities Exchange Act of 9134 in connection with a program to commingle and portfolio margin customer positions in cleared credit default swaps, which include both swaps and security based swaps, in a segregated account established and maintained in accordance with Section 4d(f) of the Commodity Exchange Act.

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Authorizing Statute(s): US Code: 15 USC 78c-5 Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 78mm Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 5164	02/01/2016
30-day Notice:	Federal Register Citation:	Citation Date:
	81 FR 15139	03/21/2016
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Order Granting Conditional Exemptions Under the SecuritiesExchange Act of 1934 in Connection With Portfolio Margining of Swaps andSecurity-Based Swaps

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	45	57	0	0	-12	0
Annual Time Burden (Hours)	51,450	403,750	0	0	-352,300	0
Annual Cost Burden (Dollars)	120,000	912,000	0	0	-792,000	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: First, the Commission reduced the total number of respondents from 57 to 45 based on updated data regarding the number of entities that are dually registered as broker-dealers and futures commission merchants. Second, the Commission reduced the number of non-affiliate credit default swap customers from 1,000 to 109 based on data that the Commission receives on a monthly basis, as well as current projections regarding the estimated increase in the number of customers per respondent. Third, the Commission reduced its estimate that each respondent will incur a one-time cost of $40,000 in outside legal counsel expenses in connection with entering into non-conforming subordination agreements with non-affiliate cleared credit default swap customers under paragraph IV(b)(1)(ii) of the Order. Based on staff experience in connection with the Order, the Commission anticipates that respondents will incur such costs in-house.

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Annual Cost to Federal Government: $0

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Yes

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/22/2016

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