60 Day Notice

Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Notices
the additional EM Contracts. ICC
believes that these procedures allow for
it to take timely action to contain losses
and liquidity demands and to continue
meeting its obligations in the event of
clearing member insolvencies or
defaults in respect of the additional
single name, in accordance with Rule
17Ad–22(e)(13).17
(B) Clearing Agency’s Statement on
Burden on Competition
ICC does not believe the proposed
amendments will have any impact, or
impose any burden, on competition not
necessary or appropriate in furtherance
of the purposes of the Act. As discussed
above, the purpose of the proposed rule
change is to adopt rules that will
provide the basis for ICC to clear
additional credit default swap contracts.
The additional EM Contracts will be
available to all ICC participants for
clearing. The clearing of the additional
EM Contracts by ICC does not preclude
the offering of the additional EM
Contracts for clearing by other market
participants. Accordingly, ICC does not
believe that clearance of the additional
EM Contracts will impose any burden
on competition not necessary or
appropriate in furtherance of the
purposes of the Act.

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(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed rule change have not been
solicited or received. ICC will notify the
Commission of any written comments
received by ICC.
III. Date of Effectiveness of the
Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of
publication of this notice in the Federal
Register or within such longer period
up to 90 days (i) as the Commission may
designate if it finds such longer period
to be appropriate and publishes its
reasons for so finding or (ii) as to which
the self-regulatory organization
consents, the Commission will:
(A) by order approve or disapprove
such proposed rule change, or
(B) institute proceedings to determine
whether the proposed rule change
should be disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views, and
arguments concerning the foregoing,
including whether the proposed rule

change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (http://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include File Number SR–
ICC–2022–007 on the subject line.
Paper Comments
Send paper comments in triplicate to
Secretary, Securities and Exchange
Commission, 100 F Street NE,
Washington, DC 20549.
All submissions should refer to File
Number SR–ICC–2022–007. This file
number should be included on the
subject line if email is used. To help the
Commission process and review your
comments more efficiently, please use
only one method. The Commission will
post all comments on the Commission’s
internet website (http://www.sec.gov/
rules/sro.shtml). Copies of the
submission, all subsequent
amendments, all written statements
with respect to the proposed rule
change that are filed with the
Commission, and all written
communications relating to the
proposed rule change between the
Commission and any person, other than
those that may be withheld from the
public in accordance with the
provisions of 5 U.S.C. 552, will be
available for website viewing and
printing in the Commission’s Public
Reference Room, 100 F Street NE,
Washington, DC 20549, on official
business days between the hours of
10:00 a.m. and 3:00 p.m. Copies of such
filings will also be available for
inspection and copying at the principal
office of ICE Clear Credit and on ICE
Clear Credit’s website at https://
www.theice.com/clear-credit/regulation.
All comments received will be posted
without change. Persons submitting
comments are cautioned that we do not
redact or edit personal identifying
information from comment submissions.
You should submit only information
that you wish to make available
publicly. All submissions should refer
to File Number SR–ICC–2022–007 and
should be submitted on or before July
19, 2022.

17 Id.

VerDate Sep<11>2014

For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
J. Matthew DeLesDernier,
Secretary.
[FR Doc. 2022–13707 Filed 6–27–22; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–652, OMB Control No.
3235–0699]

Proposed Collection; Comment
Request; Extension: Rule 18a–2
Upon Written Request, Copies Available
From: Securities and Exchange
Commission, Office of FOIA Services,
100 F Street NE, Washington, DC
20549–2736
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–2 (17 CFR
240.18a–2), 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.
Rule 18a–2 establishes capital
requirements for nonbank major
security-based swap participants that
are also not registered as broker-dealers
(‘‘nonbank MSBSPs’’). In particular, a
nonbank MSBSP is required at all times
to have and maintain positive tangible
net worth.
Under Rule 18a–2, nonbank MSBSPs
also need to comply with Exchange Act
Rule 15c3–4 (17 CFR 240.15c3–4),
which requires OTC derivatives dealers
and other firms subject to its provisions
to establish, document, and maintain a
system of internal risk management
controls to assist the firm in managing
the risk associated with its business
activities, including market, credit,
leverage, liquidity, legal, and
operational risks.
The staff previously estimated that 5
or fewer nonbank entities would register
with the Commission as MSBSPs. The
staff continues to estimate that 5 or
fewer nonbank entities will register with
the Commission as MSBSPs, although
currently no such entities have
registered. These nonbank MSBSPs will
be required to establish, document, and
regularly review and update risk
management control systems with
18 17

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Federal Register / Vol. 87, No. 123 / Tuesday, June 28, 2022 / Notices

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respect to market, credit, leverage,
liquidity, legal and operational risks.
Based on similar estimates for OTC
derivatives dealers, the Commission
staff believes that each nonbank MSBSP
will spend approximately 2,000 hours to
implement its risk management control
system, resulting in a one-time industrywide hour burden of approximately
10,000 recordkeeping hours, or
approximately 3,333 hours per year
when annualized over 3 years.1
Based on similar estimates for OTC
derivatives dealers, the staff further
estimates that each of these firms will
spend approximately 250 hours per year
reviewing and updating its risk
management control systems, resulting
in an ongoing annual industry-wide
hour burden of approximately 1,250
recordkeeping hours per year.2
Taken together, the total industrywide recordkeeping hour burden is
approximately 4,583 hours per year.3
Because nonbank MSBSPs may not
initially have the systems or expertise
internally to meet the risk management
requirements of Rule 18a–2, these firms
will likely hire an outside risk
management consultant to assist them
in implementing their risk management
systems. The staff estimates that each
firm will hire an outside management
consultant for approximately 200 hours
at a cost of approximately $400 per
hour, for a one-time external
management consulting cost of
approximately $80,000 per respondent,
and a total one-time industry
management consulting cost of
approximately $400,000, or
approximately $133,333 per year 4 when
annualized over 3 years.
Nonbank MSBSPs may incur start-up
costs to comply with Rule 18a–2,
including information technology costs.
The information technology systems of
a nonbank MSBSP may be in varying
stages of readiness to enable these firms
to meet the requirements of Rule 18a–
2, so the cost of modifying their
information technology systems could
vary significantly among firms. Based
on estimates for similar collections of
information,5 the Commission staff
1 5 MSBSPs × 2,000 hours = 10,000 hours. This
one-time burden annualized over a 3-year period is
approximately 3,333 hours industry-wide (10,000
hours/3 = 3,333.33 rounded down to 3,333).
2 5 MSBSPs × 250 hours/year = 1,250 hours/year.
3 2,000 hours/3 years = 3,333.33 + 1,250 hours =
4,583.33 hours rounded down to 4,583.
4 5 MSBSPs × 200 hours × $400/hour = $400,000.
Annualized over three years, this industry-wide
burden is approximately $133,333 per year
($400,000/3 years = $133,333.33 rounded down to
$133,333).
5 See Risk Management Controls for Broker or
Dealers with Market Access, Exchange Act Release
No. 6321 (Nov. 3, 2010), 75 FR 69792, 69814 (Nov.
15, 2010).

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17:11 Jun 27, 2022

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expects that each nonbank MSBSP will
spend an average of approximately
$16,000 for one-time initial hardware
and software external expenses, for a
total one-time industry-wide external
information technology cost of
approximately $80,000, or
approximately $26,667 per year 6 when
annualized over 3 years. Based on the
estimates for these similar collections of
information, the average ongoing
external cost to meet the information
technology requirements of Rule 18a–2
will be approximately $20,500 per
nonbank MSBSP. This will result in an
ongoing annual industry-wide external
information technology cost of
approximately $102,500.7 Taken
together, the total industry-wide
information technology related cost
burden is approximately $129,167 per
year.8
Therefore, the total industry-wide
recordkeeping cost burden is
approximately $262,500 per year
($133,333 + $129,167 = $262,500).
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
August 29, 2022.
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: June 22, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022–13712 Filed 6–27–22; 8:45 am]
BILLING CODE 8011–01–P
6 5 MSBSPs × $16,000/3 years = $26,666.666,
rounded up to $26,667.
7 5 MSBSP × $20,500 = $102,500.
8 $80,000/3 years + $102,500 = $129,166.667
rounded up to $129,167.

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SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–95140; File No. SR–MIAX–
2022–23]

Self-Regulatory Organizations: Miami
International Securities Exchange,
LLC; Notice of Filing and Immediate
Effectiveness of a Proposed Rule
Change To Amend Exchange Rule
1900, Registration Requirements,
Exchange Rule 1903, Continuing
Education Requirements, and
Exchange Rule 1904, Electronic Filing
Requirements for Uniform Forms
June 22, 2022.

Pursuant to the provisions of Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’) 1 and Rule 19b–4
thereunder,2 notice is hereby given that
on June 10, 2022, Miami International
Securities Exchange, LLC (‘‘MIAX
Options’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) a
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing a proposal to
amend Exchange Rule 1903, Continuing
Education Requirements. The proposed
rule change also makes conforming
amendments to Exchange Rule 1900,
Registration Requirements. Among other
changes, the proposed rule change
requires that the Regulatory Element of
continuing education be completed
annually rather than every three years
and provide a path through continuing
education for individuals to maintain
their qualification following the
termination of a registration. The
Exchange also proposes to amend its
manual signature requirements in
Exchange Rule 1904, Electronic Filing
Requirements for Uniform Forms.
The text of the proposed rule change
is available on the Exchange’s website at
http://www.miaxoptions.com/rulefilings/, at MIAX Options’ principal
office, and at the Commission’s Public
Reference Room.
1 15
2 17

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U.S.C. 78s(b)(1).
CFR 240.19b–4.

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