Rule 18a-4 – Segregation requirements for security-based swap dealers and major security-based swap participants.

Forms and Documents

Document	Type	Status	Availability
SUPPORTING STATEMENT 18A-4 (3235-0700) Final Rule.v2.pdf	Supporting Statement A	Uploaded 2019-10-29	Available

IC Document Collections

IC ID	Collection	Type	Status	Form
237023	Rule 18a-4 - Subordination Agreements, Outside Counsel Review-- Initial, One-Time Cost		New
237022	Rule 18a-4(d)(1) (Counterparty Notice, Outside Counsel Review)-- Initial Cost		New
237020	Rule 18a-4(f) (Exemptions)-- Ongoing Burden		New
237019	Rule 18a-4(f) (Exemptions, Incorporating Disclosure Language)-- Initial Burden		New
237018	Rule 18a-4(f) (Exemptions, Developing Disclosure Language--Initial Burden		New
237017	Rule 18a-4(e)(3) (Disclosure to U.S. Counterparties)-- Ongoing Burden		New
237016	Rule 18a-4(e)(3) (Disclosure to U.S. Counterparties, Incorporating New Language)-- Initial Burden		New
237015	Rule 18a-4(e)(3) (Disclosures to U.S. Counterparties, Developing Forms)-- Initial Burden		New
237012	Rule 18a-4(d)(2) (Subordination Agreements)-- Ongoing Burden		New
237003	Rule 18a-4(d)(2) (Subordination Agreements, Entering Into)-- Initial Burden		New
237001	Rule 18a-4(d)(2) (Subordination Agreements, Drafting)-- Initial Burden		New
236999	Rule 18a-4(d)(1) (Counterparty Notice)-- Ongoing Burden		New
236997	Rule 18a-4(d)(1) (Counterparty Notice)-- Initial Burden		New
236996	Rule 18a-4(a) (Special Accounts)-- Ongoing Burden		New
236995	Rule 18a-4(a) (Special Accounts)-- Initial Burden		New
206762	Rule 18a-4 Subordination Agreements		Removed
206761	Rule 18a-4 -- Counterparty Notice		Removed
206760	Rule 18a-4(c) (Customer Reserve Computation)-- Ongoing Burden		Modified
206759	Rule 18a-4 Special Accounts		Removed

ICR Details

OMB Control No: 3235-0700	ICR Reference No: 201907-3235-018
Status: Active	Previous ICR Reference No: 201305-3235-002
Agency/Subagency: SEC	Agency Tracking No: TM-270-650
Title: Rule 18a-4 – Segregation requirements for security-based swap dealers and major security-based swap participants.
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	80,465	0	0
Time Burden (Hours)	128,849	0	0
Cost Burden (Dollars)	58,667	0	0

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Abstract: Rule 18a-4 establishes customer protection and segregation requirements for all 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 and major security-based swap participants. Customer protection and segregation standards ensure that firms do not misappropriate customer assets for their own or other unauthorized uses.

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

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: 16

IC Title	Form No.	Form Name
Rule 18a-4(a) (Special Accounts)-- Initial Burden
Rule 18a-4(a) (Special Accounts)-- Ongoing Burden
Rule 18a-4(d)(1) (Counterparty Notice)-- Initial Burden
Rule 18a-4(d)(1) (Counterparty Notice)-- Ongoing Burden
Rule 18a-4(d)(2) (Subordination Agreements)-- Ongoing Burden
Rule 18a-4(c) (Customer Reserve Computation)-- Ongoing Burden
Rule 18a-4(d)(2) (Subordination Agreements, Entering Into)-- Initial Burden
Rule 18a-4(f) (Exemptions, Incorporating Disclosure Language)-- Initial Burden
Rule 18a-4(f) (Exemptions)-- Ongoing Burden
Rule 18a-4(d)(1) (Counterparty Notice, Outside Counsel Review)-- Initial Cost
Rule 18a-4 Special Accounts
Rule 18a-4 -- Counterparty Notice
Rule 18a-4 Subordination Agreements
Rule 18a-4(d)(2) (Subordination Agreements, Drafting)-- Initial Burden
Rule 18a-4(e)(3) (Disclosures to U.S. Counterparties, Developing Forms)-- Initial Burden
Rule 18a-4(e)(3) (Disclosure to U.S. Counterparties)-- Ongoing Burden
Rule 18a-4(f) (Exemptions, Developing Disclosure Language--Initial Burden
Rule 18a-4 - Subordination Agreements, Outside Counsel Review-- Initial, One-Time Cost
Rule 18a-4(e)(3) (Disclosure to U.S. Counterparties, Incorporating New Language)-- Initial Burden

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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	80,465	0	41,933	38,532	0	0
Annual Time Burden (Hours)	128,849	0	310,309	-181,460	0	0
Annual Cost Burden (Dollars)	58,667	0	206,667	-148,000	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: The ICs previously entered for Rule 18a-4- Special Accounts, Rule 18a-4- Counterparty Notice, and Rule 18a-4- Subordination Agreements, were removed and re-entered in order to more clearly present the initial, one-time costs and on-going costs for each burden. In addition, the burdens for each of these has decreased from the proposed rule because the requirements applicable to some respondents has been adopted under a different OMB number (Rule 15c3-3 (OMB No. 3235-0033)), and we have submitted revised burden estimates for that OMB number. Rule 18a-4(f)- Exemptions is new and is based on comments received on the rule when it was proposed. This rule has three distinct ICs-- two for initial, one-time burdens (with different numbers of annual responses), and one for ongoing costs.

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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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