Rule 18a-3 – Non-cleared security-based swap margin requirements for security-based swap dealers and major security-based swap participants for which there is not a prudential regulator.

Forms and Documents

Document	Type	Status	Availability
SUPPORTING STATEMENT 18A-3 and 18A-10 (3235-0702) Final Rule v.3.pdf	Supporting Statement A	Uploaded 2019-11-04	Repair queued

IC Document Collections

IC ID	Collection	Type	Status	Form
236982	Rule 18a-10 - Notices		New
236981	Rule 18a-10(b)(2) (Update Disclosures)		New
236980	Rule 18a-10 - Incorporate Disclosure Language (Initial, One-Time Burden)		New
236979	Rule 18a-10 - Develop Disclosure Language (Initial, One-Time Burden)		New
236978	Rule 18a-3 - Initial Margin Model		New
206775	Rule 18a-3 –Cost Burden (Initial, One-Time)		Modified
206774	Rule 18a-3 – Counterparty Risk Monitoring Procedures		Modified

ICR Details

OMB Control No: 3235-0702	ICR Reference No: 201907-3235-017
Status: Active	Previous ICR Reference No: 201305-3235-004
Agency/Subagency: SEC	Agency Tracking No: TM-270-651
Title: Rule 18a-3 – Non-cleared security-based swap margin requirements for security-based swap dealers and major security-based swap participants 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 with change	Conclusion Date: 11/06/2019
	Date Received in OIRA: 08/26/2019
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	11/30/2022	36 Months From Approved
Responses	3,057	0	0
Time Burden (Hours)	18,748	0	0
Cost Burden (Dollars)	4,000	0	0

---

Abstract: Rule 18a-3 establishes minimum margin requirements for nonbank firms required to register with the SEC under the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 as security-based swap dealers. Minimum margin standards ensure that firms collect sufficient collateral to secure the risk of loss on security-based swap positions. Rule 18a-10 provides an alternative compliance mechanism pursuant to which a stand-alone security-based swap dealer that is registered as a swap dealer and predominantly engages in a swaps business may elect to comply with the capital, margin, and segregation requirements of the Commodity Exchange Act (“CEA”) and the U.S. Commodity Futures Trading Commission’s (“CFTC”) rules in lieu of complying with the SEC's Rules 18a-1, 18a-3, and 18a-4, as adopted.

---

Authorizing Statute(s): PL: Pub.L. 111 - 203 763 & 764 Name of Law: Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010
   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 of 2010

---

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

---

Federal Register Notices & Comments

Did the Agency receive public comments on this ICR? No

---

Number of Information Collection (IC) in this ICR: 7

IC Title	Form No.	Form Name
Rule 18a-3 - Initial Margin Model
Rule 18a-3 – Counterparty Risk Monitoring Procedures
Rule 18a-3 –Cost Burden (Initial, One-Time)
Rule 18a-10 - Develop Disclosure Language (Initial, One-Time Burden)
Rule 18a-10(b)(2) (Update Disclosures)
Rule 18a-10 - Notices
Rule 18a-10 - Incorporate Disclosure Language (Initial, One-Time Burden)

---

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	3,057	0	34	3,023	0	0
Annual Time Burden (Hours)	18,748	0	3,250	15,498	0	0
Annual Cost Burden (Dollars)	4,000	0	6,000	-2,000	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: Rule 18a-3: The burdens of two of the ICs were reduced because the estimated number of respondents was reduced. In addition, one new IC was added because of a modification to the final rule that based on comments received on the proposal. Rule 18a-10: This is a new rule that was not in the proposal, but followed from comments received in connection with the proposal. Thus, all of the ICs in this rule result in an increase to the burden.

---

Annual Cost to Federal Government:

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

---

Common Form ICR:  No

---

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

---