[Federal Register Volume 78, Number 38 (Tuesday, February 26, 2013)]
[Page 13102]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-04367]



Submission for OMB Review; Comment Request

Upon Written Request Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 

    Appendix F to Rule 15c3-1; SEC File No. 270-440, OMB Control No. 

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for approval of extension of 
the previously approved collection of information provided for in 
Appendix F to Rule 15c3-1 (``Appendix F'' or ``Rule 15c3-1f'') (17 CFR 
240.15c3-1f) under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.).
    Appendix F requires a broker-dealer choosing to register, upon 
Commission approval, as an OTC derivatives dealer to develop and 
maintain an internal risk management system based on Value-at-Risk 
(``VaR'') models. It is anticipated that a total of four (4) broker-
dealers registering as OTC derivatives dealers will spend 1,000 hours 
on a one-time basis complying with the system development requirements 
of Rule 15c3-1f, for an estimated one-time initial startup burden of 
approximately 4,000 hours. Appendix F also requires the OTC derivatives 
dealer to maintain its system model according to certain prescribed 
standards. It is anticipated that a total of eight (8) broker-dealers 
will spend 1,000 hours per year maintaining the system model required 
by Rule 15c3-1f, for an estimated recurring annual burden of 
approximately 8,000 hours. Thus, the total industry-wide burden is 
estimated to be approximately 12,000 hours (4,000 hours + 8,000 hours) 
for the first year and 8,000 hours for each subsequent year.\1\

    \1\ The Commission estimates that a total of eight entities will 
be registered as OTC derivatives dealers at the end of the next 
three years, consisting of the four current OTC derivatives dealers 
and four anticipated registrants. This is in contrast with the prior 
estimate of five OTC derivatives dealers, consisting of four current 
OTC derivatives dealers and one anticipated registrant.

    The records required to be kept pursuant to Appendix F and results 
of periodic reviews conducted pursuant to Rule 15c3-4 generally must be 
preserved under Rule 17a-4 of the Exchange Act (17 CFR 240.17a-4) for a 
period of not less than three years, the first two years in an easily 
accessible place. The Commission will not generally publish or make 
available to any person notices or reports received pursuant to the 
Rule. The statutory basis for the Commission's refusal to disclose such 
information to the public is the exemption contained in Section (b)(4) 
of the Freedom of Information Act (5 U.S.C. 552), which essentially 
provides that the requirement of public dissemination does not apply to 
commercial or financial information which is privileged or 
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid OMB control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid OMB control number.
    The public may view background documentation for this information 
collection at the following Web site, www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: Shagufta_Ahmed@omb.eop.gov; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 
6432 General Green Way, Alexandria, Virginia 22312 or send an email to 
PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 30 days 
of this notice.

    Dated: February 20, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-04367 Filed 2-25-13; 8:45 am]