Rule 17ad-22 Clearing Agency Standards for Operation and Governance

Forms and Documents

Document Name	Status
Supporting Statement Rule 17Ad-22 PRA extension.docx Supporting Statement A	2019-10-11

IC Document Collections

IC ID	Document Title	Status
238130	IC52 - 17Ad-22(e)(23) (for respondent not registered)	New
238128	IC50 - 17Ad-22(e)(22) (for respondent not registered)	New
238127	IC48 - 17Ad-22(e)(21) (for respondent not registered)	New
238126	IC46 - 7Ad-22(e)(20) (for respondent not registered)	New
238125	IC44 - 17Ad-22(e)(19) (for respondent not registered)	New
238124	IC42 - 17Ad-22(e)(18) (for respondent not registered)	New
238123	IC40 - 17Ad-22(e)(17) (for respondent not registered)	New
238122	IC38 - 17Ad-22(e)(16) (for respondent not registered)	New
238121	IC36 - 17Ad-22(e)(15) (for respondent not registered)	New
238120	IC34 - 17Ad-22(e)(14) (for respondent not registered)	New
238119	IC32 - 17Ad-22(e)(13) (for respondent not registered)	New
238118	IC30 - 17Ad-22(e)(12) (for respondents not registered)	New
238117	IC27 - 17Ad-22(e)(10) (for respondent not registered)	New
238116	IC25 - 17Ad-22(e)(9) (for respondent not registered)	New
238115	IC23 - 17Ad-22(e)(8) (for respondent not registered)	New
238114	IC21 - 17Ad-22(e)(7) (for respondent not registered)	New
238113	IC19 - 17Ad-22(e)(6) (for respondent not registered)	New
238112	IC17 - 17Ad-22(e)(5) (for respondent not registered)	New
238111	IC15 - 17Ad-22(e)(4) (for respondent not registered)	New
238110	IC13 - 17Ad-22(e)(3) (for respondent not registered)	New
238109	IC11 - 17Ad-22(e)(2) (for respondent not registered	New
238107	IC9 - 17Ad-22(e)(1) (for respondent not registered)	New
238106	IC6 - Rule 17Ad-22(c)(2) (for respondents not registered)	New
238102	IC7 - Rules 17Ad-22(d)(1)-(15)	New
223780	IC51 - 17Ad-22(e)(23) (for respondents already registered)	Modified
223779	IC49 - 17Ad-22(e)(22) (for respondents already registered)	Modified
223778	IC47 - 17Ad-22(e)(21) (for respondents already registered)	Modified
223777	IC45 - 17Ad-22(e)(20) (for respondents already registered)	Modified
223776	IC43 - 17Ad-22(e)(19) (for respondents already registered)	Modified
223775	IC41 - 17Ad-22(e)(18) (for respondents already registered)	Modified
223774	IC39 - 17Ad-22(e)(17) (for respondents already registered	Modified
223773	IC 37 - 17Ad-22(e)(16) (for respondents already registered)	Modified
223772	IC 35 - 17Ad-22(e)(15) (for respondents already registered)	Modified
223771	IC33 - 17Ad-22(e)(14) (for respondents already registered)	Modified
223770	IC31 - 17Ad-22(e)(13) (for respondents already registered)	Modified
223769	IC29 - 17Ad-22(e)(12) (for respondents already registered)	Modified
223768	IC28 - Rule 17Ad-22(e)(11)	Modified
223767	IC26 - 17Ad-22(e)(10) (for respondents already registered)	Modified
223766	IC24 - 17Ad-22(e)(9) (for respondents already registered)	Modified
223765	IC22 - 17Ad-22(e)(8) (for respondents already registered)	Modified
223764	IC20 - 17Ad-22(e)(7) (for respondents already registered)	Modified
223763	IC18 - 17Ad-22(e)(6) (for respondents already registered)	Modified
223762	IC16 - 17Ad-22(e)(5) (for respondents already registered)	Modified
223761	IC14 - 17Ad-22(e)(4) (for respondents already registered)	Modified
223760	IC12 - 17Ad-22(e)(3) (for respondents already registered)	Modified
223759	IC10 - 17Ad-22(e)(2) (for respondents already registered)	Modified
223758	Rule 17Ad-22(e)(1)	Modified
204630	Rule 17Ad-22(c)	Removed
203049	IC5 - Rule 17Ad-22(c)(2) (for respondents already registered)	Modified
203048	IC4 - Rule 17Ad-22(c)(1) - Record of Financial Resources	Modified
203044	IC3 - Rules 17Ad-22(b)(5)-(7)	Modified
203043	IC2 - Rule 17Ad-22(b)(4) - Model Validation	Modified
203040	IC1 - Rules 17Ad-22(b)(1)-(3)	Modified

ICR Details

OMB Control No: 3235-0695	ICR Reference No: 201910-3235-005
Status: Historical Active	Previous ICR Reference No: 201609-3235-023
Agency/Subagency: SEC	Agency Tracking No: TM-270-646
Title: Rule 17ad-22 Clearing Agency Standards for Operation and Governance
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: 03/25/2020
	Date Received in OIRA: 01/06/2020
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	03/31/2023	36 Months From Approved	03/31/2020
Responses	226	0	209
Time Burden (Hours)	8,093	0	13,398
Cost Burden (Dollars)	13,397,120	0	11,894,080

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Abstract: Rule 17Ad-22 sets standards for the operation and governance of “covered clearing agencies” (which consist of designated clearing agencies, clearing agencies involved in activities with a more complex risk profile for which the Commodity Futures Trading Commission is not the Supervisory Agency, and any clearing agency determined to be a covered clearing agency by the Commission). Specifically, Rule 17Ad-22 requires covered clearing agencies to establish, implement, maintain and enforce written policies and procedures designed to promote effective risk management procedures and controls as well as meet the statutory requirements under the Exchange Act on an ongoing basis.

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Authorizing Statute(s): US Code: 15 USC 78q-1 Name of Law: Securities Exchange Act of 1934
   US Code: 15 USC 5464(a)(2) Name of Law: Wall Street Reform and Consumer Protection Act
   US Code: 15 USC 78c-3 Name of Law: Securities Exchange Act of 1934
  

Citations for New Statutory Requirements: US Code: 12 USC 5464(a)(2) Name of Law: Wall Street Reform and Consumer Protection Act

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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:
	84 FR 57929	10/29/2019
30-day Notice:	Federal Register Citation:	Citation Date:
	85 FR 149	01/02/2020
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 52

IC Title	Form No.	Form Name
IC24 - 17Ad-22(e)(9) (for respondents already registered)
IC26 - 17Ad-22(e)(10) (for respondents already registered)
IC44 - 17Ad-22(e)(19) (for respondent not registered)
IC46 - 7Ad-22(e)(20) (for respondent not registered)
IC50 - 17Ad-22(e)(22) (for respondent not registered)
IC52 - 17Ad-22(e)(23) (for respondent not registered)
IC3 - Rules 17Ad-22(b)(5)-(7)
IC41 - 17Ad-22(e)(18) (for respondents already registered)
Rule 17Ad-22(e)(1)
IC10 - 17Ad-22(e)(2) (for respondents already registered)
IC12 - 17Ad-22(e)(3) (for respondents already registered)
IC20 - 17Ad-22(e)(7) (for respondents already registered)
IC14 - 17Ad-22(e)(4) (for respondents already registered)
IC16 - 17Ad-22(e)(5) (for respondents already registered)
IC22 - 17Ad-22(e)(8) (for respondents already registered)
IC29 - 17Ad-22(e)(12) (for respondents already registered)
IC31 - 17Ad-22(e)(13) (for respondents already registered)
IC33 - 17Ad-22(e)(14) (for respondents already registered)
IC 35 - 17Ad-22(e)(15) (for respondents already registered)
IC18 - 17Ad-22(e)(6) (for respondents already registered)
IC 37 - 17Ad-22(e)(16) (for respondents already registered)
IC39 - 17Ad-22(e)(17) (for respondents already registered
IC43 - 17Ad-22(e)(19) (for respondents already registered)
IC47 - 17Ad-22(e)(21) (for respondents already registered)
IC49 - 17Ad-22(e)(22) (for respondents already registered)
IC51 - 17Ad-22(e)(23) (for respondents already registered)
IC2 - Rule 17Ad-22(b)(4) - Model Validation
IC4 - Rule 17Ad-22(c)(1) - Record of Financial Resources
IC1 - Rules 17Ad-22(b)(1)-(3)
IC5 - Rule 17Ad-22(c)(2) (for respondents already registered)
IC28 - Rule 17Ad-22(e)(11)
IC45 - 17Ad-22(e)(20) (for respondents already registered)
IC7 - Rules 17Ad-22(d)(1)-(15)
IC6 - Rule 17Ad-22(c)(2) (for respondents not registered)
IC11 - 17Ad-22(e)(2) (for respondent not registered
IC13 - 17Ad-22(e)(3) (for respondent not registered)
IC19 - 17Ad-22(e)(6) (for respondent not registered)
IC25 - 17Ad-22(e)(9) (for respondent not registered)
IC36 - 17Ad-22(e)(15) (for respondent not registered)
Rule 17Ad-22(c)
IC9 - 17Ad-22(e)(1) (for respondent not registered)
IC17 - 17Ad-22(e)(5) (for respondent not registered)
IC15 - 17Ad-22(e)(4) (for respondent not registered)
IC21 - 17Ad-22(e)(7) (for respondent not registered)
IC30 - 17Ad-22(e)(12) (for respondents not registered)
IC32 - 17Ad-22(e)(13) (for respondent not registered)
IC34 - 17Ad-22(e)(14) (for respondent not registered)
IC40 - 17Ad-22(e)(17) (for respondent not registered)
IC23 - 17Ad-22(e)(8) (for respondent not registered)
IC27 - 17Ad-22(e)(10) (for respondent not registered)
IC38 - 17Ad-22(e)(16) (for respondent not registered)
IC42 - 17Ad-22(e)(18) (for respondent not registered)
IC48 - 17Ad-22(e)(21) (for respondent not registered)

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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	226	209	0	-3	20	0
Annual Time Burden (Hours)	8,093	13,398	0	-145	-5,160	0
Annual Cost Burden (Dollars)	13,397,120	11,894,080	0	0	1,503,040	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: Yes

Burden Reduction Due to: Miscellaneous Actions

Short Statement: The burden estimates are lower than those in the 2016 Adopting Release. The lower estimate is primarily attributable to the fact that several of the respondent clearing agencies have already incurred either all or some of the initial burdens associated with the provisions of Rule 17Ad-22(e). At the time that the Commission adopted Rule 17Ad-22(e) in 2016, the respondents had not yet incurred these initial burdens. For that reason, the initial burden estimates for many of the provisions included in Rule 17Ad-22(e) are lower for the prospective PRA extension compared to those that were provided in the PRA analysis that was submitted in connection with the 2016 Adopting Release. Separately, in contrast to the PRA analysis that was submitted in connection with the 2016 Adopting Release, the above analysis for the prospective PRA extension does not include burden estimates for Rule 17Ad-22(c) separate and apart from those that are provided for Rules 17Ad-22(c)(1) and (c)(2). Since the submission of the PRA analysis in the 2016 Adopting Release, the Commission staff has reconsidered the burden estimates that were previously provided for Rule 17Ad-22(c) and noted that the rule does not impose any requirements other than those separately accounted for in the PRA burden estimates provided for Rules 17Ad-22(c)(1) and (c)(2). As such, the Commission staff believes it is appropriate to include only the burden estimates for these two rules.

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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: 01/06/2020

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