60 Day Notice

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Federal Register / Vol. 87, No. 93 / Friday, May 13, 2022 / Notices
$455, and half would be by a
compliance officer at an hourly rate of
$400, for a total cost of $2,385,450.
Finally, we expect that the 1,003
newly registered entities that are not
affiliated with an existing institution
will incur a significantly higher hourly
burden in reviewing and documenting
their safeguard policies and procedures.
We expect that virtually all of the newly
registered covered entities that do not
have an affiliate are likely to be small
entities and are likely to have smaller
and less complex operations, with a
correspondingly smaller set of safeguard
policies and procedures to document,
compared to other larger existing
institutions with multiple affiliates. We
estimate that it will take a typical newly
registered unaffiliated institution
approximately 60 hours to review,
identify, and document their safeguard
policies and procedures, for a total of
60,180 hours for all newly registered
unaffiliated entities. We expect that half
of this time would be incurred by inside
counsel at an hourly rate of $455, and
half would be by a compliance officer at
an hourly rate of $400, for a total cost
of $25,726,950.
Therefore, we estimate that the total
annual hourly burden associated with
the safeguards rule is 65,760 hours at a
total hourly cost of $28,112,400. We also
estimate that all covered institutions
will be respondents each year, for a total
of 20,309 respondents.
These estimates of average burden
hours are made solely for the purposes
of the Paperwork Reduction Act. An
agency may not conduct or sponsor, and
a person is not required to respond to
a collection of information unless it
displays a currently valid control
number. The safeguard rule does not
require the reporting of any information
or the filing of any documents with the
Commission. The collection of
information required by the safeguard
rule is mandatory.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by June 13, 2022. to (i)
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov and (ii) David Bottom,
Director/Chief Information Officer,
Securities and Exchange Commission, c/
o John Pezzullo, 100 F Street NE,
Washington, DC 20549, or by sending an
email to: [email protected].

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18:32 May 12, 2022

Jkt 256001

Dated: May 9, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10300 Filed 5–12–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–651, OMB Control No.
3235–0702]

Proposed Collection; Comment
Request
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
Extension:
Rule 18a–3

Notice is hereby given that pursuant
to the Paperwork Reduction Act of 1995
(‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Securities and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the existing collection of information
provided for in Rule 18a–3 (17 CFR
240.18a–3), under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et
seq.) (‘‘Exchange Act’’). The
Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.1
Rule 18a–3 establishes minimum
margin requirements for nonbank
security-based swap dealers (‘‘SBSDs’’)
and nonbank major security-based swap
participants (‘‘MSBSPs’’) for noncleared security-based swaps. Under
paragraph (e) of Rule 18a–3 nonbank
SBSDs are required to monitor the risk
of each account that holds non-cleared
security based swaps for a counterparty
and to establish, maintain, and
document procedures and guidelines for
monitoring the risk of accounts as part
of its risk management control system
1 This OMB Control Number previously included
the collections of information in Rule 18–10 as well
as the ones in Rule 18a–3. The Commission
subsequently requested a separate OMB Control
Number for the collections of information in Rule
18a–10. OMB approved that request on February 9,
2022, and the collections of information for Rule
18a–10 are now in OMB Control Number 3235–
0785. As a result, the Commission is now changing
the burdens in this OMB Control Number 3235–
0702 to remove the ones previously included for
Rule 18a–10. The Collections of information in Rule
18a–10 were included in OMB Control Number
3235–0702 because Rule 18a–10 was not proposed,
but was adopted concurrently with 18a–3 as a result
of comments received on the proposal for Rule 18a–
3. The Commission later amended Rule 18a–10 and
revised the collections of information in Rule 18a–
10 and, at that time, requested a separate OMB
Control Number. See PRA ICR Documents for 3235–
0785 on (reginfo.gov).

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29419

required under Exchange Act Rule
15c3–4. In addition, paragraph (d)(2) of
Rule 18a–3 provides that a nonbank
SBSD seeking approval to use a model
to calculate initial margin will be
subject to an application process
consistent with Exchange Act Rule
15c3–1e and paragraph (d) of Exchange
Act Rule 18a–1, as applicable, governing
the use of internal models to compute
net capital.2
The total annual hour burden
associated with Rule 18a–3 is
approximately 2,243 hours calculated as
follows:
The Commission staff estimates that
there are 7 nonbank SBSDs that are
subject to Rule 18a–3. The staff further
estimates that each would spend an
average of approximately 210 hours
establishing and documenting their Rule
18a–3 counterparty risk monitoring
procedures, for a one-time industrywide hour burden of approximately
1,470 recordkeeping hours or 490 hours
per year when annualized over three
years.3 In addition, the staff estimates
that each nonbank SBSD would spend
an average of approximately 60 hours
per year reviewing risks associated with
its counterparties, for an annual
industry-wide burden of approximately
420 recordkeeping hours.4 Taken
together, the annual industry-wide hour
burden is approximately 910 hours.5
The Commission estimates it will take
a nonbank SBSD approximately 50
hours to prepare and submit an
application to the Commission to seek
authorization to use an internal model
to calculate initial margin. The staff
estimates that five non-bank SBSDs
have sought Commission approval to
use an internal model to calculate initial
margin, resulting in a total industrywide one-time hour burden of
approximately 250 hours or
approximately 83 hours per year when
annualized over three years.6 The
Commission also estimates that each
nonbank SBSD will spend
approximately 250 hours per year
reviewing, updating, and back testing
their initial margin model, resulting in
2 While Rule 18a–3 contains requirements that
apply to both nonbank SBSDs and MSBSPs, the
particular requirements that constitute a collection
of information relate only to nonbank SBSDs.
3 7 nonbank SBSDs × 210 hours = 1,470 hours.
These amounts are annualized over three years
resulting in 70 (210 hours/3 years) hours per
nonbank SBSD per year and an industry wide
annual burden of 490 recordkeeping hours.
4 7 nonbank SBSDs × 60 hours = 420 hours.
5 490 hours + 420 hours = 910 hours.
6 5 nonbank SBSDs × 50 hours = 250 hours. These
amounts are annualized over three years resulting
in 16.67 (50 hours/3 years) hours per nonbank
SBSD per year and an industry wide annual burden
of 83.33 recordkeeping hours, rounded down to 83
hours.

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Federal Register / Vol. 87, No. 93 / Friday, May 13, 2022 / Notices

a total industry-wide annual hour
burden of approximately 1,250
recordkeeping hours.7 Taken together,
the Commission estimates an annual
industry-wide hour burden of
approximately 1,333 hours.8
The total annual hour burden
associated with Rule 18a–3 is thus
approximately 2,243 hours (910 hours +
1,333 hours).
The total annual cost burden
associated with Rule 18a–3 is
approximately $3,333 calculated as
follows:
The 7 respondents subject to the
collection of information may incur
start-up costs in order to comply with
this collection of information. These
costs may vary depending on the size
and complexity of the nonbank SBSD.
In addition, the start-up costs may be
less for the 2 nonbank SBSD
respondents also registered as brokerdealers because these firms may already
be subject to similar requirements with
respect to other margin rules. For the
remaining 5 nonbank SBSDs, because
these written procedures may be novel
undertakings for these firms, the
Commission staff assumes these
nonbank SBSDs will have their written
risk analysis methodology reviewed by
outside counsel. Therefore, the staff
estimates that these 5 nonbank SBSDs
will engage an outside counsel to review
their written risk analysis methodology,
at a rate of approximately $400 per hour
for 5 hours (i.e., $2,000 in legal costs).
This will result in a one-time industrywide external recordkeeping cost of
approximately $10,000, or
approximately $3,333 per year 9
annualized over 3 years.
Written comments are invited on: (a)
Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information shall have practical utility;
(b) the accuracy of the Commission’s
estimates of the burden of the proposed
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information collected; and (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of automated collection techniques or
other forms of information technology.
Consideration will be given to
comments and suggestions submitted by
July 12, 2022.
nonbank SBSDs × 250 hours = 1,250 hours.
hours/3 years) + 1,250 hours = 1,333.33
hours, rounded down to 1,333 hours.
9 5 nonbank SBSDs × $400/hour × 5 hours=
$10,000. This amount annualized is $3,333.33 per
nonbank SBSD, rounded down to $3,333.
75

8 (250

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18:32 May 12, 2022

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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.
Please direct your written comments
to: David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or send an email to: PRA_
[email protected].
Dated: May 9, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10285 Filed 5–12–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–54, OMB Control No.
3235–0056]

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.
Extension:
Form 8–A

Notice is hereby given that, pursuant
to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) has submitted to the
Office of Management and Budget this
request for extension of the previously
approved collection of information
discussed below.
Form 8–A (17 CFR 249.208a) is a
registration statement used to register a
class of securities under Section 12(b) or
Section 12(g) of the Securities Exchange
Act of 1934 (15 U.S.C. 78l(b) and 78l(g))
(‘‘Exchange Act’’). Section 12(a) (15
U.S.C. 78l(a)) of the Exchange Act
makes it unlawful for any member,
broker, or dealer to effect any
transaction in any security (other than
an exempted security) on a national
securities exchange unless such security
has been registered under the Exchange
Act (15 U.S.C. 78a et seq.). Exchange
Act Section 12(b) establishes the
registration procedures. Exchange Act
Section 12(g) requires an issuer that is
not a bank or bank holding company to
register a class of equity securities (other
than exempted securities) within 120
days after its fiscal year end if, on the
last day of its fiscal year, the issuer has
total assets of more than $10 million
and the class of equity securities is

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‘‘held of record’’ by either (i) 2,000
persons, or (ii) 500 persons who are not
accredited investors. An issuer that is a
bank or a bank holding company, must
register a class of equity securities (other
than exempted securities) within 120
days after the last day of its first fiscal
year ended after the effective date of the
JOBS Act if, on the last day of its fiscal
year, the issuer has total assets of more
than $10 million and the class of equity
securities is ‘‘held of record’’ by 2,000
or more persons. The information must
be filed with the Commission on
occasion. Form 8–A is a public
document. Form 8–A takes
approximately 3 hours to prepare and is
filed by approximately 1,376
respondents for a total annual reporting
burden of 4,128 hours (3 hours per
response × 1,376 responses).
An agency may conduct or sponsor,
and a person is not required to respond
to, a collection of information unless it
displays a currently valid control
number.
The public may view background
documentation for this information
collection at the following website:
www.reginfo.gov. Find this particular
information collection by selecting
‘‘Currently under 30-day Review—Open
for Public Comments’’ or by using the
search function. Written comments and
recommendations for the proposed
information collection should be sent
within 30 days of publication of this
notice by June 13, 2022 to (i)
www.reginfo.gov/public/do/PRAMain
and (ii) David Bottom, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o John
Pezzullo, 100 F Street NE, Washington,
DC 20549, or by sending an email to:
[email protected].
Dated: May 9, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–10288 Filed 5–12–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–94874; File No. SR–MIAX–
2022–16]

Self-Regulatory Organizations; Miami
International Securities Exchange,
LLC; Notice of Withdrawal of Proposed
Rule Change To Amend the MIAX Fee
Schedule To Adopt a Tiered-Pricing
Structure for Additional Limited
Service MIAX Express Interface Ports
May 9, 2022.

On April 1, 2022, Miami International
Securities Exchange, LLC (‘‘MIAX’’ or

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