Federal Register 60-Day Notice

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Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices

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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–CboeEDGX–2024–063 and should be
submitted on or before November 13,
2024.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.25
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024–24471 Filed 10–22–24; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[SEC File No. 270–653, OMB Control No.
3235–0703]

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Proposed Collection; Comment
Request; Extension: Regulation SCI,
Form SCI
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 collection of information
provided for in Regulation Systems
Compliance and Integrity (‘‘Regulation
SCI’’) (17 CFR 242.1000–1007) and
Form SCI (17 CFR 249.1900) under the
Securities Exchange Act of 1934
(‘‘Exchange Act’’) (15 U.S.C. 78a et seq.).
The Commission plans to submit this
existing collection of information to the
Office of Management and Budget
(‘‘OMB’’) for extension and approval.
25 17

CFR 200.30–3(a)(12).

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Regulation SCI requires certain key
market participants to, among other
things: (1) have comprehensive policies
and procedures in place to help ensure
the robustness and resiliency of their
technological systems, and also that
their technological systems operate in
compliance with the federal securities
laws and with their own rules; and (2)
provide certain notices and reports to
the Commission to improve
Commission oversight of securities
market infrastructure.
Regulation SCI advances the goals of
the national market system by
enhancing the capacity, integrity,
resiliency, availability, and security of
the automated systems of entities
important to the functioning of the U.S.
securities markets, as well as reinforcing
the requirement that such systems
operate in compliance with the
Exchange Act and rules and regulations
thereunder, thus strengthening the
infrastructure of the U.S. securities
markets and improving its resilience
when technological issues arise. In this
respect, Regulation SCI establishes an
updated and formalized regulatory
framework, thereby helping to ensure
more effective Commission oversight of
such systems.
Respondents consist of national
securities exchanges and associations,
registered clearing agencies, exempt
clearing agencies, plan processors, and
alternative trading systems. There are
currently 48 respondents, and the
Commission staff estimates that, on
average, 2 new respondents may become
SCI entities each year, 1 of which would
be a self-regulatory organization
(‘‘SRO’’). Accordingly, Commission staff
estimates that over the next three years
there will be an average of 50
respondents per year.
In addition, in December 2020, the
Commission adopted amendments to
Regulation SCI in connection with
updates to the national market system
for the collection, consolidation, and
dissemination of information with
respect to quotations for and
transactions in national market system
(‘‘NMS’’) stocks (‘‘Infrastructure
Amendments’’). Specifically, the
Commission adopted a definition of
‘‘SCI competing consolidator’’ that will
subject competing consolidators to
Regulation SCI, after a transition period,
if they are above a specified
consolidated market data gross revenue
threshold.1 The Infrastructure
Amendments increased the number of
1 See

Securities Exchange Act Release No. 34–
90610 (December 9, 2020), 86 FR 18596 (April 9,
2021) (File No. S7–03–20) (‘‘Infrastructure Adopting
Release’’).

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respondents to the collections of
information in Regulation SCI, and the
Commission estimates that seven
competing consolidators will meet this
definition and be subject to the
requirements of Regulation SCI.2
Rule 1001(a) requires each SCI entity
to establish, maintain, and enforce
written policies and procedures
reasonably designed to ensure that its
SCI systems and, for purposes of
security standards, indirect SCI systems,
have levels of capacity, integrity,
resiliency, availability, and security,
adequate to maintain the SCI entity’s
operational capability and promote the
maintenance of fair and orderly markets.
The Commission staff estimates that the
total annual initial recordkeeping
burden for 7 new respondents will be
4,511 hours, and the annual ongoing
recordkeeping burden for all 55
respondents will be, on average, 12,760
hours. The Commission staff estimates
that the 7 new respondents would incur,
on average, an annual initial internal
cost of compliance of $1,696,578, as
well as outside legal or consulting costs
of $305,500. In addition, all respondents
will incur, on average, an estimated
ongoing annual internal cost of
compliance of $4,801,060.
Rule 1001(b) requires each SCI entity
to establish, maintain, and enforce
written policies and procedures
reasonably designed to ensure that its
SCI systems operate in a manner that
complies with the Exchange Act and the
rules and regulations thereunder and
the entity’s rules and governing
documents, as applicable. The
Commission staff estimates that the total
annual initial recordkeeping burden for
7 new respondents will be 1,755 hours,
and the annual ongoing recordkeeping
burden for all respondents will be, on
average, 8,105 hours. The Commission
staff estimates that the 7 new
respondents would incur an initial
internal cost of compliance of $628,160,
as well as outside legal or consulting
costs of $175,500. In addition, all
respondents will incur, on average, an
estimated ongoing annual internal cost
of compliance of $2,881,660.
Rule 1001(c) requires each SCI entity
to establish, maintain, and enforce
reasonably designed written policies
and procedures that include the criteria
for identifying responsible SCI
personnel, the designation and
documentation of responsible SCI
personnel, and escalation procedures to
quickly inform responsible SCI
2 Some of these respondents were estimated to
incur no, or only part of, the estimated initial
burdens because they were already subject to
Regulation SCI (i.e., as plan processors, SROs or
affiliates of SROs).

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Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices
personnel of potential SCI events. The
Commission staff estimates that the total
annual initial recordkeeping burden for
7 new respondents will be 741 hours,
and the annual ongoing recordkeeping
burden for all respondents will be, on
average, 2,145. The Commission staff
estimates that the 7 new respondents
would incur an initial internal cost of
compliance of $309,868, and all
respondents will incur, on average, an
estimated ongoing annual internal cost
of compliance of $958,485.
Rule 1004 requires each SCI entity to
establish standards for the designation
of certain members or participants for
BC/DR plan testing, to designate
members or participants in accordance
with these standards, to require
participation by designated members or
participants in such testing at least
annually, and to coordinate such testing
on an industry- or sector-wide basis
with other SCI entities. The Commission
staff estimates that the total annual
initial recordkeeping burden for 9 new
respondents will be 2,700 hours, and
the annual ongoing recordkeeping
burden for all respondents that are not
plan processors will be, on average,
7,425 hours. The Commission staff
estimates that the 7 new respondents
would incur an initial internal cost of
compliance of $902,865. In addition, all
respondents that are not plan processors
will incur, on average, an estimated
ongoing annual internal cost of
compliance of $2,217,600. In addition,
the Commission staff estimates that the
2 plan processor respondents will incur
an estimated ongoing annual cost of
$108,000 for outside legal services
($54,000 per plan processor respondent
× 2 respondents).
Rule 1002(b)(1) requires each SCI
entity, upon any responsible SCI
personnel having a reasonable basis to
conclude that an SCI event has
occurred, to notify the Commission
immediately. The Commission staff
estimates that the total annual ongoing
burden for all 55 respondents will be,
on average, 440 hours. The Commission
staff estimates that respondents will
incur, on average, an estimated ongoing
annual internal cost of compliance of
$151,882.50.
Rule 1002(b)(2) requires each SCI
entity, within 24 hours of any
responsible SCI personnel having a
reasonable basis to conclude that the
SCI event has occurred, to submit a
written notification to the Commission
pertaining to the SCI event on a good
faith, best efforts basis. These
notifications are required to be
submitted on Form SCI. The
Commission staff estimates that the total
annual ongoing burden for all 55

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respondents will be, on average, 6,600
hours. The Commission staff estimates
that respondents will incur, on average,
an estimated ongoing annual internal
cost of compliance of $2,427,325.
Rule 1002(b)(3) requires each SCI
entity to provide updates to the
Commission pertaining to an SCI event
on a regular basis, or at such frequency
as reasonably requested by a
representative of the Commission, until
the SCI event is resolved and the SCI
entity’s investigation of the SCI event is
closed. The Commission staff estimates
that the total annual ongoing burden for
all 55 respondents will be, on average,
578 hours. The Commission staff
estimates that all respondents will
incur, on average, an estimated ongoing
annual internal cost of compliance of
$202,235.
Rule 1002(b)(4) requires each SCI
entity to submit written interim reports,
as necessary, and a written final report
regarding an SCI event to the
Commission. These reports are required
to be submitted on Form SCI. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 9,625
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of
$3,795,800.
Rule 1002(b)(5) requires each SCI
entity to submit to the Commission
quarterly reports containing a summary
description of any systems disruption or
systems intrusion that has had, or the
SCI entity reasonably estimates would
have, no or a de minimis impact on the
SCI entity’s operations or on market
participants. These reports are required
to be submitted on Form SCI. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 8,800
hours. The Commission staff estimates
that respondents will incur, on average,
an estimated ongoing annual internal
cost of compliance of $3,329,040.
In addition, the Commission staff
estimates that all 55 respondents will
incur, on average, annual costs of
$319,000 for outside legal advice in
preparation of certain notifications
required by Rule 1002(b).
Rule 1002(c)(1)(i) requires each SCI
entity, promptly after any responsible
SCI personnel has a reasonable basis to
conclude that an SCI event (other than
a systems intrusion) has occurred, to
disseminate certain information to its
members or participants. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 1,155
hours. The Commission staff estimates

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84661

that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of $506,815.
Rule 1002(c)(1)(ii) requires each SCI
entity, when known, to promptly
disseminate additional information
about an SCI event (other than a systems
intrusion) to its members or
participants. Rule 1002(c)(1)(iii)
requires each SCI entity to provide to its
members or participants regular updates
of any information required to be
disseminated under Rules 1002(c)(1)(i)
and (ii) until the SCI event is resolved.
The Commission staff estimates that the
total annual ongoing burden for all 55
respondents will be, on average, 6,435
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of
$2,841,795.
Rule 1002(c)(2) requires each SCI
entity to disseminate certain
information regarding a systems
intrusion to its members or participants,
and provides an exception when the SCI
entity determines that dissemination of
such information would likely
compromise the security of its SCI
systems or indirect SCI systems, or an
investigation of the systems intrusion,
and documents the reasons for such
determination. The Commission staff
estimates that the total annual ongoing
burden for all 55 respondents will be,
on average, 550 hours. The Commission
staff estimates that all respondents will
incur, on average, an estimated ongoing
annual internal cost of compliance of
$242,330.
In addition, the Commission staff
estimates that all 55 respondents will
incur, on average, annual costs of
$182,600 for outside legal advice in
preparation of certain notifications
required by Rule 1002(c).
Rule 1003(a)(1) requires each SCI
entity to submit to the Commission
quarterly reports describing completed,
ongoing, and planned material changes
to its SCI systems and security of
indirect SCI systems during the prior,
current, and subsequent calendar
quarters. These reports are required to
be submitted on Form SCI. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 27,500
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of
$9,204,800.
Rule 1003(a)(2) requires each SCI
entity to promptly submit a
supplemental report notifying the
Commission of a material error in or
material omission from a report

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Federal Register / Vol. 89, No. 205 / Wednesday, October 23, 2024 / Notices

previously submitted under Rule
1003(a)(1). These reports are required to
be submitted on Form SCI. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 825
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of $293,040.
Rule 1003(b)(1) requires each SCI
entity to conduct an SCI review of its
compliance with Regulation SCI not less
than once each calendar year, with an
exception for penetration test reviews,
which are required to be conducted not
less than once every three years. Rule
1003(b)(1) also provides an exception
for assessments of SCI systems directly
supporting market regulation or market
surveillance, which are required to be
conducted at a frequency based on the
risk assessment conducted as part of the
SCI review, but in no case less than
once every three years. Rule 1003(b)(2)
requires each SCI entity to submit a
report of the SCI review to senior
management no more than 30 calendar
days after completion of the review. The
Commission staff estimates that the total
annual ongoing burden for all 55
respondents will be, on average, 37,950
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of
$13,623,225.
Rule 1003(b)(3) requires each SCI
entity to submit the report of the SCI
review to the Commission and to its
board of directors or the equivalent of
such board, together with any response
by senior management, within 60
calendar days after its submission to
senior management. These reports are
required to be submitted on Form SCI.
The Commission staff estimates that the
total annual ongoing burden for all 55
respondents will be, on average, 55
hours. The Commission staff estimates
that all respondents will incur, on
average, an estimated ongoing annual
internal cost of compliance of $25,410.
In addition, the Commission staff
estimates that all respondents will
incur, on average, annual costs of
$2,750,000 for outside legal advice in
preparation of certain notifications
required by Rule 1003(b).
Rule 1006 requires each SCI entity,
with a few exceptions, to file any
notification, review, description,
analysis, or report to the Commission
required under Regulation SCI
electronically on Form SCI through the
EFFS. An SCI entity will submit to the
Commission an EAUF to register each
individual at the SCI entity who will
access the EFFS system on behalf of the

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SCI entity. The Commission staff
estimates that the total annual initial
burden for 7 new respondents will be 2
hours, and the annual ongoing burden
for all respondents will be, on average,
8 hours. The Commission staff estimates
that the 7 new respondents would incur
an initial internal cost of compliance of
$903. In addition, all 55 respondents
will incur, on average, an estimated
ongoing annual internal cost of
compliance of $3,795, as well as outside
costs to obtain a digital ID of $2,750.
Rule 1002(a) requires each SCI entity,
upon any responsible SCI personnel
having a reasonable basis to conclude
that an SCI event has occurred, to begin
to take appropriate corrective action.
The Commission staff estimates that the
total annual initial recordkeeping
burden for 7 new respondents will be
741 hours, and the annual ongoing
recordkeeping burden for all 55
respondents will be, on average, 2,145
hours. The Commission staff estimates
that the 7 new respondents would incur
an initial internal cost of compliance of
$309,868. In addition, all 55
respondents will incur, on average, an
estimated ongoing annual internal cost
of compliance of $949,190.
Rule 1003(a)(1) requires each SCI
entity to establish reasonable written
criteria for identifying a change to its
SCI systems and the security of indirect
SCI systems as material. The
Commission staff estimates that the total
annual initial recordkeeping burden for
7 new respondents will be 741 hours,
and the annual ongoing recordkeeping
burden for all 55 respondents will be,
on average, 1,485 hours. The
Commission staff estimates that the 7
new respondents would incur an initial
internal cost of compliance of $309,868.
In addition, all 55 respondents will
incur, on average, an estimated ongoing
annual internal cost of compliance of
$711,095.
Regulation SCI also requires SCI
entities to identify certain types of
events and systems. The Commission
staff estimates that the total annual
initial recordkeeping burden for 7 new
respondents will be 1,287 hours, and
the annual ongoing recordkeeping
burden for all 55 respondents will be,
on average, 2,145 hours. The
Commission staff estimates that the 7
new respondents would incur an initial
internal cost of compliance of $507,936.
In addition, all 55 respondents will
incur, on average, an estimated ongoing
annual internal cost of compliance of
$949,190.
Rules 1005 and 1007 establish
recordkeeping requirements for SCI
entities other than SROs. The
Commission staff estimates that for 6

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new respondents that are not SROs the
average annual initial burden would be
935 hours, and the annual ongoing
burden for all 19 respondents will be,
on average, 475 hours. The Commission
staff estimates that 6 new respondents
would incur an estimated internal
initial internal cost of compliance of
$72,930, as well as a one-time cost of
$5,400 to modify existing recordkeeping
systems. In addition, all 19 respondents
will incur, on average, an estimated
ongoing internal cost of compliance of
$37,050.
The Commission estimates that the
increase in the number of SCI entities
raises the total industry annual burden
hours to 150,619 hours and costs to
$3,848,749 respectively.
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 to be 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
December 23, 2024.
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: Austin Gerig, Director/Chief
Information Officer, Securities and
Exchange Commission, c/o Tanya
Ruttenberg, 100 F Street NE,
Washington, DC 20549, or send an email
to: [email protected].
Dated: October 18, 2024.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2024–24577 Filed 10–22–24; 8:45 am]
BILLING CODE 8011–01–P

SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #20780 and #20781;
ALASKA Disaster Number AK–20005]

Presidential Declaration of a Major
Disaster for Public Assistance Only for
the State of Alaska
Small Business Administration.
Notice.

AGENCY:
ACTION:

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