Rule 18a-1 – Net Capital Requirements For Security-Based Swap Dealers For Which There Is Not a Prudential Regulator

Forms and Documents

Document Name	Status
SUPPORTING STATEMENT 18A-1 Final Rule.pdf Supporting Statement A	2019-08-12

IC Document Collections

IC ID	Document Title	Status
237323	Rule 18a-1(d) (VaR Models)	New
236972	Rule 18a-1(c) - Account Control Agreement Legal Analysis	New
236971	Rule 18a-1(c) Account Control Agreement Opinion of Counsel	New
236970	Rule 18a-1(c) - Account Control Agreement Legal Analysis	New
236969	Rule 18a-1(c) - Account Control Agreement Opinion of Counsel	New
236968	Rule 18a-1 - Subordinated Loan Agreements	New
206757	Rule 18a-1(h) Commission Notices	Modified
206756	18a-1(c) Industry Sector Classification	Modified
206755	18a-1(g) Risk Management Control System	Modified
206752	Rule 18a-1 Liquidity Stress Testing	Removed
206751	Rule 18a-1(a) VaR Models	Modified

ICR Details

OMB Control No: 3235-0701	ICR Reference No: 201907-3235-015
Status: Active	Previous ICR Reference No: 201305-3235-001
Agency/Subagency: SEC	Agency Tracking No: TM-270-649
Title: Rule 18a-1 – Net Capital Requirements For Security-Based Swap Dealers For Which There Is Not a Prudential Regulator
Type of Information Collection: New collection (Request for a new OMB Control Number)	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 10/28/2019
	Date Received in OIRA: 08/26/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2022	36 Months From Approved
Responses	640	0	0
Time Burden (Hours)	26,545	0	0
Cost Burden (Dollars)	13,475,000	0	0

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Abstract: Rule 18a-1 establishes net capital standards and requirements for nonbank firms not subject to Rule 15c3-1 and required to register with the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 as security-based swap dealers. Net capital standards ensure that firms maintain sufficient liquid assets to meet all customer obligations.

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Authorizing Statute(s): PL: Pub.L. 111 - 203 763 & 764 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act
   US Code: 15 USC 78a et seq. Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 203 763-764 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
3235-AL12	Final or interim final rulemaking	84 FR 43872	08/22/2019

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Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 10

IC Title	Form No.	Form Name
Rule 18a-1 Liquidity Stress Testing
Rule 18a-1(c) - Account Control Agreement Opinion of Counsel
Rule 18a-1(c) - Account Control Agreement Legal Analysis
18a-1(c) Industry Sector Classification
Rule 18a-1(h) Commission Notices
Rule 18a-1(a) VaR Models
18a-1(g) Risk Management Control System
Rule 18a-1(c) Account Control Agreement Opinion of Counsel
Rule 18a-1(c) - Account Control Agreement Legal Analysis
Rule 18a-1 - Subordinated Loan Agreements
Rule 18a-1(d) (VaR Models)

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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	640	0	33	607	0	0
Annual Time Burden (Hours)	26,545	0	41,988	-15,443	0	0
Annual Cost Burden (Dollars)	13,475,000	0	4,176,500	9,298,500	0	0

Burden increases because of Program Change due to Agency Discretion: Yes

Burden Increase Due to: Changing Regulations

Burden decreases because of Program Change due to Agency Discretion: Yes

Burden Reduction Due to: Changing Regulations

Short Statement: Based on comments received on the proposal, the Commission is adopting several new ICs and is not adopting one that was previously proposed. In addition, the Commission has reduced its estimated number of respondents for several ICs due to the adoption of a new rule (Rule 18a-10). Finally, one IC was inadvertently left out of the submission for the proposed rule (although it was included in the notice of proposed rulemaking) and it has been included here.

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Annual Cost to Federal Government: $0

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

Does this ICR request any personally identifiable information (see OMB Circular No. A-130 for an explanation of this term)? Please consult with your agency's privacy program when making this determination.     No

Does this ICR include a form that requires a Privacy Act Statement (see 5 U.S.C. §552a(e)(3))? Please consult with your agency's privacy program when making this determination.     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: 08/26/2019

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