Federal Register 60-Day Notice

2025 05 14_90 FR 20538_3235-0702_60-Day Collection Notice.pdf

Rule 18a-3, Security-Based Swap Margin Requirements for Non-Prudentially Regulated Entities

Federal Register 60-Day Notice

OMB: 3235-0702

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lotter on DSK11XQN23PROD with NOTICES1

20538

Federal Register / Vol. 90, No. 92 / Wednesday, May 14, 2025 / Notices

17Ad–22(e)(8),(9) and (10) 13 as to the
finality and accuracy of its daily
settlement process and addressing the
risks associated with physical
deliveries.
Rule 17Ad–22(e)(2)(i) and (v) 14
requires each covered clearing agency to
establish, implement, maintain, and
enforce written policies and procedures
reasonably designed to provide for
governance arrangements that are clear
and transparent and specify clear and
direct lines of responsibility. ICC
determined to accept the additional EM
Contract for clearing in accordance with
its governance process, which included
review of the contract and related risk
management considerations by the Risk
Committee and approval by the Board.
These governance arrangements
continue to be clear and transparent,
such that information relating to the
assignment of responsibilities and the
requisite involvement of the Board and
committees is clearly detailed in the
Rules and policies and procedures,
consistent with the requirements of Rule
17Ad–22(e)(2)(i) and (v).15
Rule 17Ad–22(e)(13) 16 requires each
covered clearing agency to establish,
implement, maintain, and enforce
written policies and procedures
reasonably designed to ensure it has the
authority and operational capacity to
take timely action to contain losses and
liquidity demands and continue to meet
its obligations by, at a minimum,
requiring its participants and, when
practicable, other stakeholders to
participate in the testing and review of
its default procedures, including any
close-out procedures, at least annually
and following material changes thereto.
ICC will apply its existing default
management policies and procedures for
the additional EM Contract. 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

change is to adopt rules that will
provide the basis for ICC to clear
additional credit default swap contracts.
The additional EM Contract will be
available to all ICC participants for
clearing. The clearing of the additional
EM Contract by ICC does not preclude
the offering of the additional EM
Contract for clearing by other market
participants. Accordingly, ICC does not
believe that clearance of the additional
EM Contract will impose any burden on
competition not necessary or
appropriate in furtherance of the
purposes of the Act.

(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

Electronic Comments

(C) Clearing Agency’s Statement on
Comments on the Proposed Rule
Change Received From Members,
Participants or Others
Written comments relating to the
proposed amendments have not been
solicited or received by ICE Clear Credit.
ICE Clear Credit will notify the
Commission of any comments received
with respect to the proposed rule
change.
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:

14 17

CFR 240.17ad–22(e)(2)(i) and (v).

15 Id.
16 17

CFR 240.17ad–22(e)(13).

17 Id.

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• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
• Send an email to rule-comments@
sec.gov. Please include file number SR–
ICC–2025–008 on the subject line.
Send paper comments in triplicate to
Vanessa Countryman, Secretary,
Securities and Exchange Commission,
100 F Street NE, Washington, DC 20549.

PO 00000

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For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–08454 Filed 5–13–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0702]

Paper Comments
13 Id.

All submissions should refer to file
number SR–ICC–2025–008. 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 (https://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
a.m. and 3 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.ice.com/clearcredit/regulation.
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–ICC–2025–008 and
should be submitted on or before June
4, 2025.

Sfmt 4703

Proposed Collection; Comment
Request; Extension: Rule 18a–3
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
18 17

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CFR 200.30–3(a)(12).

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lotter on DSK11XQN23PROD with NOTICES1

Federal Register / Vol. 90, No. 92 / Wednesday, May 14, 2025 / Notices
(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission
(‘‘Commission’’) is soliciting comments
on the proposed 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’’).
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
Rule 18a–3(e), nonbank SBSDs are
required to monitor the risk of each
account that holds non-cleared securitybased 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
required under Exchange Act Rule
15c3–4. In addition, Rule 18a–3(d)(2)
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
Exchange Act Rule 18a–1(d), as
applicable, governing the use of internal
models to compute net capital.1
The total annual hour burden
associated with Rule 18a–3 is
approximately 1,030 hours calculated as
follows:
The Commission staff estimates that
there are 13 nonbank SBSDs that are
subject to Rule 18a–3(e). The staff
further estimates that each nonbank
SBSD would spend an average
approximately 60 hours per year
reviewing risks associated with its
counterparties pursuant to the
procedures and guidelines implemented
by each nonbank SBSD, for an annual
industry-wide ongoing burden of
approximately 780 recordkeeping
hours.2
With respect to Rule 18a–3(d)(2),
Commission also estimates that one
nonbank SBSD uses a model to calculate
initial margin and that this nonbank
SBSD will spend approximately 250
hours per year reviewing, updating, and
back testing its initial margin model,
resulting in a total industry-wide annual
hour burden of approximately 250
recordkeeping hours.3
The total annual hour burden
associated with Rule 18a–3 is thus
approximately 1,030 hours (780 hours +
250 hours).
1 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.
2 13 nonbank SBSDs × 60 hours = 780 hours.
3 1 nonbank SBSD × 250 hours = 250 hours.

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The Commission estimates that there
is no annual cost burden associated
with Rule 18a–3 as the previously
estimated start-up costs have already
been incurred.
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 OMB
Control Number.
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the
Commission, including whether the
information will have practical utility;
(b) the accuracy of the Commission’s
estimate of the burden imposed by the
proposed collection of information,
including the validity of the
methodology and the assumptions used;
(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, electronic collection
techniques or other forms of information
technology.
Please direct your written comment to
Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Tanya Ruttenberg, 100
F Street NE, Washington, DC 20549 and
send it by email to
[email protected] within
60 days of publication of this notice, by
July 14, 2025.
Dated: May 8, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–08448 Filed 5–13–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–103007; File No. SR–MRX–
2025–08]

Self-Regulatory Organizations; Nasdaq
MRX, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed
Rule Change To Increase the Options
Regulatory Fee (ORF) on a Temporary
Basis and Discontinue the ORF Model
Scheduled To Be Implemented in June
2025
May 8, 2025.

Pursuant to 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 April 30,
2025, Nasdaq MRX, LLC (‘‘MRX’’ or
1 15
2 17

PO 00000

U.S.C. 78s(b)(1).
CFR 240.19b–4.

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Fmt 4703

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20539

‘‘Exchange’’) filed with the Securities
and Exchange Commission
(‘‘Commission’’) the 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 proposes to increase
MRX’s Options Regulatory Fee or
‘‘ORF.’’ Also, the Exchange proposes to
discontinue the ORF model scheduled
to be implemented in June 2025.3 The
increased ORF rate will sunset on
December 31, 2025 and will revert to
$0.0004 per contract side.
While the changes proposed herein
are effective upon filing, the Exchange
has designated the amendments become
operative on May 1, 2025.
The text of the proposed rule change
is available on the Exchange’s website at
https://listingcenter.nasdaq.com/
rulebook/mrx/rulefilings, at the
principal office of the Exchange, and at
the Commission’s Public Reference
Room.
II. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
In its filing with the Commission, the
Exchange included statements
concerning the purpose of and basis for
the proposed rule change and discussed
any comments it received on the
proposed rule change. The text of these
statements may be examined at the
places specified in Item IV below. The
Exchange has prepared summaries, set
forth in sections A, B, and C below, of
the most significant aspects of such
statements.
A. Self-Regulatory Organization’s
Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule
Change
1. Purpose
MRX proposes to increase its ORF
from $0.0004 to $0.0010 per contract
3 See Securities Exchange Act Release No. 101891
(December 12, 2024), 89 FR 103017 (December 18,
2024) (SR–MRX–2024–45) (Notice of Filing and
Immediate Effectiveness of Proposed Rule Change
To Adopt a New Approach to the Options
Regulatory Fee (ORF) in 2025). See also Securities
Exchange Act Release No. 102342 (February 4,
2025), 90 FR 9259 (February 10, 2025) (SR–MRX–
2025–05) (Nasdaq MRX, LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change
To Delay the Implementation of the New Options
Regulatory Fee (ORF) and ORF Methodology
Proposed in SR–MRX–2024–45).

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