[Federal Register Volume 81, Number 121 (Thursday, June 23, 2016)]
[Notices]
[Pages 40935-40937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-14840]
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SECURITIES AND EXCHANGE COMMISSION
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 19b-4 and Form 19b-4, SEC File No. 270-38, OMB Control No.
3235-0045.
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 19b-4 (17 CFR 240.19b-
4), under the Securities Exchange Act of 1934 (``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.
Section 19(b) of the Act (15 U.S.C. 78s(b)) requires each self-
regulatory organization (``SRO'') to file with the Commission copies of
any proposed rule, or any proposed change in, addition to, or deletion
from the rules of such SRO. Rule 19b-4 implements the requirements of
Section 19(b) by requiring the SROs to file their proposed rule changes
on Form 19b-4 and by clarifying which actions taken by SROs are subject
to the filing requirement set forth in Section 19(b). Rule 19b-4(n)
requires a designated clearing agency to provide the Commission advance
notice (``Advance Notice'') of any proposed change to its rules,
procedures, or operations that could materially affect the nature or
level of risks presented by such clearing agency. Rule 19b-4(o)
requires a registered clearing agency to submit for a Commission
determination any security-based swap, or any group, category, type, or
class of security-based swaps it plans to accept for clearing
(``Security-Based Swap Submission''), and provide notice to its members
of such submissions.
The collection of information is designed to provide the Commission
with the information necessary to determine, as required by the Act,
whether the proposed rule change is consistent with the Act and the
rules thereunder. The information is used to determine if the proposed
rule change should be approved, disapproved, suspended, or if
proceedings should be instituted to determine whether to approve or
disapprove the proposed rule change.
The respondents to the collection of information are SROs (as
defined by Section 3(a)(26) of the Act),\1\ including national
securities exchanges, national securities associations, registered
clearing agencies, notice registered securities future product
exchanges, and the Municipal Securities Rulemaking Board.
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\1\ 15 U.S.C. 78c(a)(26).
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In calendar year 2015, each respondent filed an average of
approximately 57 proposed rule changes. Each filing takes approximately
39 hours to complete on average. Thus, the total annual reporting
burden for filing proposed rule changes with the Commission is 86,697
hours (57 proposals per year x 39 SROs x 39 hours per filing) for the
estimated future number of 39 SROs.\2\ In addition to filing their
proposed rule changes with the Commission, the respondents also are
required to post each of their proposals on their respective Web sites,
a process that takes approximately four hours to complete per proposal.
Thus, for 1,935 proposals, the total annual reporting burden on
respondents to post the proposals on their Web sites is 7,740 hours
(1,935 proposals per year x 4 hours per filing) or 8,892 hours (57
proposals per year x 39 SROs x 4 hours per filing) for the estimated
future number of 39 SROs. Further, the respondents are required to
update their rulebooks, which they maintain on their Web sites, to
reflect the changes that they make in each proposal they file. Thus,
for all filings that were not withdrawn by a respondent (240 withdrawn
filings in calendar year 2015) or disapproved by the Commission (6
disapproved filings in calendar year 2015), the respondents were
required to update their online rulebooks to reflect the effectiveness
of 1,689 proposals, each of which takes approximately four hours to
complete
[[Page 40936]]
per proposal. Thus, the total annual reporting burden for updating
online rulebooks is 7,764 hours ((2,223 filings per year-275 withdrawn
filings \3\-7 disapproved filings \4\) x 4 hours). Finally, a
respondent is required to notify the Commission if it does not post a
proposed rule change on its Web site on the same day that it filed the
proposal with the Commission. The Commission estimates that SROs will
fail to post proposed rule changes on their Web sites on the same day
as the filing 22 times a year (across all SROs), and that each SRO will
spend approximately one hour preparing and submitting such notice to
the Commission, resulting in a total annual burden of 22 hours (22
notices x 1 hour per notice).
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\2\ For most of 2015, 34 SROs were registered. One registered
SRO withdrew in December 2015 and one SRO newly registered with the
Commission in January 2016. The Commission expects five additional
respondents to register during the three-year period for which this
PRA Extension is applicable (three as registered clearing agencies
and two as national securities exchanges), bringing the total number
of respondents to 39.
\3\ For 34 SROs, 240 withdrawn filings equal approximately 7.06
filings per SRO. For 39 SROs, the figure would increase to 275
withdrawn filings.
\4\ For 34 SROs, six disapproved filings equal approximately
0.18 filings per SRO. For 39 SROs, the figure would increase to
seven disapproved filings.
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Designated clearing agencies have additional information collection
burdens. As noted above, pursuant to Rule 19b-4(n), a designated
clearing agency must file with the Commission an Advance Notice of any
proposed change to its rules, procedures, or operations that could
materially affect the nature or level of risks presented by such
designated clearing agency. The Commission estimates that four
designated clearing agencies will each submit five Advance Notices per
year, with each submission taking 90 hours to complete. The total
annual reporting burden for filing Advance Notices is therefore 1,800
hours (4 designated clearing agencies x 5 Advance Notices per year x 90
hours per response).
Designated clearing agencies are required to post all Advance
Notices to their Web sites, each of which takes approximately four
hours to complete. For five Advance Notices, the total annual reporting
burden for posting them to respondents' Web sites is 80 hours (4
designated clearing agencies x 5 Advance Notices per year x 4 hours per
Web site posting). Respondents are required to update the postings of
those Advance Notices that become effective, each of which takes
approximately four hours to complete. The total annual reporting burden
for updating Advance Notices on the respondents' Web sites is 80 hours
(4 designated clearing agencies x 5 Advance Notices per year x 4 hours
per Web site posting).
Pursuant to Rule 19b-4(n)(5), the respondents are also required to
provide copies of all materials submitted to the Commission relating to
an Advance Notice to the Board of Governors of the Federal Reserve
System (``Board'') contemporaneously with such submission to the
Commission, which is estimated to take two hours. The total annual
reporting burden for designated clearing agencies to meet this
requirement is 40 hours (4 designated clearing agencies x 5 Advance
Notices per year x 2 hours per response).
The Commission estimates that three security-based swap clearing
agencies will each submit 20 Security-Based Swap Submissions per year,
with each submission taking 140 hours to complete resulting in a total
annual reporting burden of 8,400 hours (3 respondent clearing agencies
x 20 Security-Based Swap Submissions per year x 140 hours per
response). Respondent clearing agencies are required to post all
Security-Based Swap Submissions to their Web sites, each of which takes
approximately four hours to complete. For 20 Security-Based Swap
Submissions, the total annual reporting burden for posting them to the
three respondents' Web sites is 240 hours (3 respondent clearing
agencies x 20 Security-Based Swap Submissions per year x 4 hours per
Web site posting). In addition, three clearing agencies that have not
previously posted Security-Based Swap Submissions, Advance Notices, and
proposed rule changes on their Web sites may need to update their
existing Web sites to post such filings online. The Commission
estimates that each of these three clearing agencies would spend
approximately 15 hours updating its existing Web site, resulting in a
total one-time burden of 45 hours (3 respondent clearing agencies x 15
hours per Web site update) or 15 hours annualized over three years.
Respondent clearing agencies will also have to provide training to
staff members using the Electronic Form 19b-4 Filing System (``EFFS'')
to submit Security-Based Swap Submissions, Advance Notices, and/or
proposed rule changes electronically. The Commission estimates that one
anticipated security-based swap clearing agency will spend
approximately 20 hours training all staff members who will use EFFS to
submit Security-Based Swap Submissions, Advance Notices, and/or
proposed rule changes electronically, or 6.7 hours annualized over
three years. The Commission also estimates that one anticipated
clearing agency will have a one-time burden of 130 hours to draft and
implement internal policies and procedures for using EFFS to make these
submissions, or 43.3 hours annualized over three years. The Commission
estimates that each of the 39 respondents will spend 10 hours each year
training new compliance staff members and updating the training of
existing compliance staff members to use EFFS, for a total annual
burden of 390 hours (39 respondent SROs x 10 hours).
In connection with Security-Based Swap Submissions, counterparties
may apply for a stay from a mandatory clearing requirement under Rule
3Ca-1. The Commission estimates that each clearing agency will submit
five applications for stays from a clearing requirement per year and it
will take approximately 18 hours to retrieve, review, and submit each
application. Thus, the total annual reporting burden for the Rule 3Ca-1
stay of clearing requirement would be 270 hours (3 respondent clearing
agencies x 5 stay of clearing applications per year x 18 hours to
retrieve, review, and submit the stay of clearing information).
Based on the above, the total estimated annual response burden
pursuant to Rule 19b-4 and Form 19b-4 is the sum of the total annual
reporting burdens for filing proposed rule changes, Advance Notices,
and Security-Based Swap Submissions; training staff to file such
proposals; drafting, modifying, and implementing internal policies and
procedures for filing such proposals; posting each proposal on the
respondents' Web sites; updating Web sites to enable posting of
proposals; updating the respondents' online rulebooks to reflect the
proposals that became effective; submitting copies of Advance Notices
to the Board; and applying for stays from clearing requirements, which
is 114,740 hours.
Compliance with Rule 19b-4 is mandatory. Information received in
response to Rule 19b-4 shall not be kept confidential; the information
collected is public information.
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
estimate 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 in
writing within 60 days of this publication.
[[Page 40937]]
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: Pamela Dyson, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an
email to [email protected].
Dated: June 17, 2016.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2016-14840 Filed 6-22-16; 8:45 am]
BILLING CODE 8011-01-P