[Federal Register Volume 90, Number 92 (Wednesday, May 14, 2025)]
[Notices]
[Pages 20538-20539]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-08448]


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SECURITIES AND EXCHANGE COMMISSION

[OMB Control No. 3235-0702]


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

[[Page 20539]]

(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 non-cleared security-based 
swaps. Under Rule 18a-3(e), nonbank SBSDs are required to monitor the 
risk of each account that holds non-cleared security-based 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\
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    \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.
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    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\
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    \2\ 13 nonbank SBSDs x 60 hours = 780 hours.
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    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\
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    \3\ 1 nonbank SBSD x 250 hours = 250 hours.
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    The total annual hour burden associated with Rule 18a-3 is thus 
approximately 1,030 hours (780 hours + 250 hours).
    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