[Federal Register Volume 89, Number 127 (Tuesday, July 2, 2024)]
[Notices]
[Pages 54894-54895]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-14482]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-822, OMB Control No. 3235-0777]


Proposed Collection; Comment Request; Extension: Rules 15Fi-3 
Through 15Fi-5

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 Rules 15Fi-3 through 15Fi-5 
(17 CFR 240.15Fi-3 through 240.15Fi-5), under the Securities Exchange 
Act of 1934 (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.
    Rules 15Fi-3 through 15Fi-5 (17 CFR 240.15Fi-3 through 240.15Fi-5) 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 
require registered security-based swap dealers (``SBS dealer'') and 
registered major security-based swap participants (``major SBS 
participant'') (each SBS dealer and each major SBS participant 
hereafter referred to as an ``SBS Entity'') to apply specific risk 
mitigation techniques to portfolios of security-based swaps not 
submitted for clearing. Rules 15Fi-3 through 15Fi-5 impose a collection 
of information requirements on SBS Entities. Specifically, Rule 15Fi-3 
requires SBS Entities to reconcile outstanding security-based swaps 
with applicable counterparties on a periodic basis. Rule 15Fi-4 
requires SBS Entities to engage in certain forms of portfolio 
compression exercises with their counterparties, as appropriate. Rule 
15Fi-5 requires SBS Entities to execute written security-based swap 
trading relationship documentation with each of its counterparties 
prior to, or contemporaneously with, executing a security-based swap 
transaction, and to periodically audit the policies and procedures 
governing such documentation.
    Rules 15Fi-3 through 15Fi-5 have been promulgated pursuant to 
Section 15F(i)(2) of the Exchange Act, which requires that the 
Commission ``adopt rules governing documentation standards for 
security-based swap dealers and major security-based swap 
participants.'' Accordingly, the collections of information are at the 
heart of each of the underlying documentation requirements of the 
rules, such that not conducting them (or reducing the frequency of 
collection) would not be consistent with the statutory provisions. 
Moreover, the policies and procedures required to be established, 
maintained, and followed pursuant to Rules 15Fi-3 through 15Fi-5 are 
instrumental in focusing and assessing compliance with the underlying 
rules, consistent with how similar requirements are used in numerous 
other Commission rules. Thus, eliminating such collections (or reducing 
the frequency of collection) also would be inconsistent with the 
applicable statutory provisions and the intended effects of the rules.
    The Commission estimated that approximately 53 entities may fit 
within the definition of SBS dealer, and up to five entities may fit 
within the definition of major SBS participant. Thus, the Commission 
estimated that approximately 58 entities would be required to register 
with the Commission as SBS Entities and would be subject to Rules 15Fi-
3 through 15Fi-5. Of the 58 entities that would be required to register 
with the Commission as SBS Entities, the Commission estimated that 
approximately 20 would be dually-registered with the Commodity Futures 
Trading Commission (``CFTC'') as swap dealers or major swap 
participants. As the Rules 15Fi-3 through 15Fi-5 are largely similar to 
those adopted by the CFTC, dually-registered entities may have 
procedures and systems in place to collect the information, thereby 
minimizing compliance burdens. The Commission estimated that the total 
annual industry burden under 15Fi-3 through 15Fi-5 is approximately 
464,836 hours per year.

[[Page 54895]]

    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 30, 2024.
    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.
    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: 
[email protected].

    Dated: June 26, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-14482 Filed 7-1-24; 8:45 am]
BILLING CODE 8011-01-P