30 day notice

64910

Federal Register / Vol. 83, No. 242 / Tuesday, December 18, 2018 / Notices

SECURITIES AND EXCHANGE
COMMISSION
Submission for OMB Review;
Comment Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736

amozie on DSK3GDR082PROD with NOTICES

Extension:
Rule 15c3–4, SEC File No. 270–441, OMB
Control No. 3235–0497

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’’) has submitted to the
Office of Management and Budget
(‘‘OMB’’) a request for approval of
extension of the previously approved
collection of information provided for in
Rule 15c3–4 (17 CFR. 240.15c3–4) (the
‘‘Rule’’) under the Securities Exchange
Act of 1934 (15 U.S.C. 78a et seq.).
Rule 15c3–4 requires certain brokerdealers 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. The Rule sets
forth the basic elements for an OTC
derivatives dealer or an ANC firm to
consider and include when establishing,
documenting, and reviewing its internal
risk management control system, which
are designed to, among other things,
ensure the integrity of an OTC
derivatives dealer’s or an ANC firm’s
risk measurement, monitoring, and
management process, to clarify
accountability at the appropriate
organizational level, and to define the
permitted scope of the dealer’s activities
and level of risk. The Rule also requires
that management of an OTC derivatives
dealer or an ANC firm 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 OTC derivatives
dealer will spend establishing and
documenting its risk management
control system is 2,000 hours and that,
on average, a registered OTC derivatives
dealer will spend approximately 200
hours each year to maintain (e.g.,
reviewing and updating) its risk
management control system.1 Currently,
1 This notice does not cover the hour burden
associated with ANC firms, because the hour
burden for ANC firms is included in the Paperwork

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three firms are registered with the
Commission as OTC derivatives dealers.
The staff estimates that approximately
six additional entities may become
registered as OTC derivatives dealers
within the next three years. Thus, the
estimated annualized burden would be
600 hours for the three OTC derivatives
dealers currently registered with the
Commission to maintain their risk
management control systems,2 4,000
hours for the six new OTC derivatives
dealers to establish and document their
risk management control systems,3 and
1,200 hours for the six new OTC
derivatives dealers to maintain their risk
management control systems.4
Accordingly, the staff estimates the total
annualized burden associated with Rule
15c3–4 for the six OTC derivatives
dealers will be approximately 5,800
hours annually.
The staff believes that the internal
cost of complying with Rule 15c3–4 will
be approximately $314 per hour.5 This
per hour cost is based upon an annual
average hourly salary for a compliance
manager who would be responsible for
ensuring compliance with the
requirements of Rule 15c3–4.
Accordingly, the total annualized
internal cost of compliance for all
affected OTC derivatives dealers is
estimated to be $1,821,200.6
The records required to be made by
OTC derivatives dealers pursuant to the
Rule and the results of the periodic
reviews conducted under paragraph (d)
of Rule 15c3–4 must be preserved under
Rule 17a–4 of the Exchange Act (17 CFR
240.17a–4) for a period of not less than
three years, the first two years in an
easily accessible place. The Commission
will not generally publish or make
available to any person notice or reports
received pursuant to the Rule. The
statutory basis for the Commission’s
refusal to disclose such information to
the public is the exemption contained in
section (b)(4) of the Freedom of
Information Act (5 U.S.C. 552), which
essentially provides that the
requirement of public dissemination
Reduction Act collection for Rule 15c3–1, which
requires ANC firms to comply with specific
provisions of Rule 15c3–4 in Appendix E to Rule
15c3–1. See 17 CFR 240.15c3–1(a)(7)(iii), 17 CFR
240.15c3–1e(a)(1)(ii), and 17 CFR 240.15c3–
1e(a)(1)(viii)(C).
2 (200 hours x 3 firms) = 600.
3 ((2,000 hours/3 years) × 6 firms) = 4,000.
4 (200 hours × 6 firms) = 600.
5 The $314 per hour salary figure for a compliance
manager is from SIFMA’s Management &
Professional Earnings in the Securities Industry
2013, modified by Commission staff to account for
an 1800-hour work-year and multiplied by 5.35 to
account for bonuses, firm size, employee benefits
and overhead.
6 5,800 hours × $314 per hour = $1,821,200.

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does not apply to commercial or
financial information which is
privileged or confidential.
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.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Comments should be
directed to: (i) Desk Officer for the
Securities and Exchange Commission,
Office of Information and Regulatory
Affairs, Office of Management and
Budget, Room 10102, New Executive
Office Building, Washington, DC 20503,
or by sending an email to: (i)
[email protected]; and (ii)
Charles Riddle, Acting Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Candace
Kenner, 100 F Street NE Washington,
DC 20549, or by sending an email to:
[email protected]. Comments
must be submitted to OMB within 30
days of this notice.
Dated: December 12, 2018.
Eduardo A. Aleman,
Deputy Secretary.
[FR Doc. 2018–27270 Filed 12–17–18; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–84804; File No. SR–NYSE–
2018–58]

Self-Regulatory Organizations; New
York Stock Exchange LLC; Notice of
Filing of Proposed Rule Change To
Amend Rule 123C To Extend the CutOff Times for Order Entry and
Cancellation for Participation in the
Closing Auction and When the
Exchange Will Begin Disseminating
Order Imbalance Information for the
Closing Auction
December 12, 2018.

Pursuant to Section 19(b)(1) 1 of the
Securities Exchange Act of 1934
(‘‘Act’’) 2 and Rule 19b–4 thereunder,3
notice is hereby given that, on
November 30, 2018, New York Stock
Exchange LLC (‘‘NYSE’’ or ‘‘Exchange’’)
filed with the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I, II, and III below, which Items
have been prepared by the selfregulatory organization. The
1 15

U.S.C. 78s(b)(1).
U.S.C. 78a.
3 17 CFR 240.19b–4.
2 15

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