Order Designating Financial Industry Regulatory Authority, Inc., To Receive Form X-17A-5 (FOCUS Report) From Certain Security-Based Swap Dealers and Major Security-Based Swap Participants, 29993-29994 [2020-10770]

Download as PDF Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Notices concern market dominant product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3622, 39 U.S.C. 3642, 39 CFR part 3030, and 39 CFR part 3040, subpart B. For request(s) that the Postal Service states concern competitive product(s), applicable statutory and regulatory requirements include 39 U.S.C. 3632, 39 U.S.C. 3633, 39 U.S.C. 3642, 39 CFR part 3035, and 39 CFR part 3040, subpart B. Comment deadline(s) for each request appear in section II. II. Docketed Proceeding(s) 1. Docket No(s).: MC2020–132 and CP2020–139; Filing Title: USPS Request to Add Priority Mail & First-Class Package Service Contract 147 to Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: May 12, 2020; Filing Authority: 39 U.S.C. 3642, 39 CFR 3040.130 et seq., and 39 CFR 3035.105; Public Representative: Kenneth R. Moeller; Comments Due: May 20, 2020. 2. Docket No(s).: MC2020–133 and CP2020–140; Filing Title: USPS Request to Add Priority Mail Contract 615 to Competitive Product List and Notice of Filing Materials Under Seal; Filing Acceptance Date: May 12, 2020; Filing Authority: 39 U.S.C. 3642, 39 CFR 3040.130 et seq., and 39 CFR 3035.105; Public Representative: Gregory S. Stanton; Comments Due: May 20, 2020. This Notice will be published in the Federal Register. Erica A. Barker, Secretary. NMS Stock listed on the Exchange or that are based on, or represent an interest in, an underlying index or reference asset that includes an NMS Stock listed on the Exchange. The proposed rule change was published for comment in the Federal Register on October 23, 2019.3 On December 5, 2019, pursuant to Section 19(b)(2) of the Act,4 the Commission designated a longer period within which to approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether to disapprove the proposed rule change.5 On January 17, 2020, the Commission instituted proceedings under Section 19(b)(2)(B) of the Act 6 to determine whether to approve or disapprove the proposed rule change.7 On April 17, 2020, the Commission designated a longer period for Commission action on proceedings to determine whether to approve or disapprove the proposed rule change.8 On May 13, 2020, the Exchange withdrew the proposed rule change (SR–NYSE–2019–54). For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.9 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–10652 Filed 5–18–20; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–88866] [FR Doc. 2020–10637 Filed 5–18–20; 8:45 am] BILLING CODE 7710–FW–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–88863; File No. SR–NYSE– 2019–54] Self-Regulatory Organizations; New York Stock Exchange LLC; Notice of Withdrawal of a Proposed Rule Change To Permit the Exchange To List and Trade Exchange Traded Products May 13, 2020. On October 3, 2019, New York Stock Exchange LLC (‘‘Exchange’’) filed with the Securities and Exchange Commission (‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to list and trade Exchange Traded Products that have a component 1 15 2 17 U.S.C. 78s(b)(1). CFR 240.19b–4. VerDate Sep<11>2014 17:57 May 18, 2020 Jkt 250001 Order Designating Financial Industry Regulatory Authority, Inc., To Receive Form X–17A–5 (FOCUS Report) From Certain Security-Based Swap Dealers and Major Security-Based Swap Participants May 14, 2020. I. Introduction Currently, broker-dealers are required to file on a monthly or quarterly basis various parts (Part II, Part IIB, Part II CSE, or Part IIA) of Form X–17A–5 (‘‘FOCUS Report’’), a form which is used to report financial and operational information. On September 19, 2019, 3 See Securities Exchange Act Release No. 87329 (Oct. 17, 2019), 84 FR 56864. 4 15 U.S.C. 78s(b)(2). 5 See Securities Exchange Act Release No. 87671, 84 FR 67763 (Dec. 11, 2019). 6 15 U.S.C. 78s(b)(2)(B). 7 See Securities Exchange Act Release No. 88003, 85 FR 4051 (Jan. 23, 2020). 8 See Securities Exchange Act Release No. 88677, 85 FR 22767 (Apr. 23, 2020). 9 17 CFR 200.30–3(a)(12). PO 00000 Frm 00075 Fmt 4703 Sfmt 4703 29993 the Commission adopted recordkeeping, reporting, and notification requirements for security-based swap dealers and major security-based swap participants (collectively, ‘‘security-based swap entities’’ or ‘‘SBSEs’’) and additional recordkeeping and reporting requirements for broker-dealers to account for their security-based swap activities.1 In adopting these requirements, the Commission amended Part II of the FOCUS Report to elicit additional information about the security-based swap activities of brokerdealers that file Part II, including broker-dealers that will also be registered as SBSEs. In addition, the Commission adopted amendments that will require the broker-dealers that currently file Part IIB and Part II CSE to file revised Part II. Further, the Commission adopted a rule (‘‘Rule 18a– 7’’) pursuant to Section 15F of the Securities Exchange Act of 1934 (‘‘Exchange Act’’) that will require SBSEs that are not also registered with the Commission as broker-dealers or regulated by a prudential regulator (‘‘stand-alone SBSEs’’) to file Part II of the FOCUS Report on a monthly basis and SBSEs for which there is a prudential regulator (‘‘bank SBSEs’’) to file new Part IIC of the FOCUS Report on a quarterly basis.2 The compliance date for these entities to file revised Part II or new Part IIC of the FOCUS Report is October 6, 2021.3 Most broker-dealers currently file the FOCUS Report electronically on the eFOCUS system 4 developed by the Financial Industry Regulatory Authority, Inc. (‘‘FINRA’’). These broker-dealers file the FOCUS Report pursuant to a plan established by the broker-dealer’s self-regulatory organization (‘‘SRO’’), the procedures and provisions of which have been submitted to and declared effective by the Commission pursuant to paragraph (a)(3) of Exchange Act Rule 17a–5.5 1 See Recordkeeping and Reporting Requirements for Security-Based Swap Dealers, Major SecurityBased Swap Participants, and Broker-Dealers, Securities Exchange Act Release No. 87005 (Sept. 19, 2019), 84 FR 68550 (Dec. 16, 2019) (‘‘Recordkeeping Adopting Release’’). 2 See 17 CFR 240.18a–7(a)(1) (applicable to standalone SBSEs); 17 CFR 240.18a–7(a)(2) (applicable to bank SBSEs). Revised Part II of the FOCUS Report is available on pages 68672–68721 of the Recordkeeping Adopting Release. New Part IIC of the FOCUS Report is available on pages 68722– 68733 of the Recordkeeping Adopting Release. 3 See Recordkeeping Adopting Release, 84 FR at 68600–601; Cross-Border Application of Certain Security-Based Swap Requirements, Exchange Act Release No. 87780 (Dec. 18, 2019), 85 FR 6270 (Feb. 4, 2020). 4 FINRA’s eFOCUS system is available at https:// www.finra.org/filing-reporting/efocus. 5 See 17 CFR 240.17a–5(a)(3). E:\FR\FM\19MYN1.SGM 19MYN1 29994 Federal Register / Vol. 85, No. 97 / Tuesday, May 19, 2020 / Notices Because stand-alone SBSEs and bank SBSEs will not be dually registered as broker-dealers, they will not be supervised by SROs and therefore are not subject to the SRO plans requiring the FOCUS Report to be filed on FINRA’s eFOCUS system. Rule 18a–7 requires stand-alone SBSEs and bank SBSEs to file the FOCUS Report with ‘‘the Commission or its designee’’ 6 to provide the Commission with the option of requiring that these registrants file the FOCUS Report with a third party.7 By this order, the Commission is designating FINRA as the organization with which stand-alone SBSEs and bank SBSEs must file revised Part II and new Part IIC of the FOCUS Report, respectively, on and after the October 6, 2021, compliance date. II. Discussion FINRA is uniquely qualified to provide the Commission with a familiar and consolidated platform for standalone SBSEs and bank SBSEs to file the FOCUS Report, uniform ancillary ongoing services associated with these filings, and a consolidated platform for transmitting this data to the Commission. First, FINRA-supervised brokerdealers currently file the FOCUS Report through the eFOCUS system owned and operated by FINRA. The Commission anticipates many firms that register as stand-alone SBSEs and bank SBSEs will be affiliated with broker-dealers that currently use the eFOCUS system. FINRA’s eFOCUS system is unique in that it would enable the broker-dealer and non-broker-dealer entities to file both entities’ FOCUS Reports on the same platform using the same preexisting templates, software, and procedures currently used by the broker-dealer. Second, FINRA is uniquely able to transmit the data in the FOCUS Report filings by broker-dealers and nonbroker-dealer SBSEs in a consolidated data transmission to the Commission. Thus, Commission staff will be able to compare data between these different types of entities in a consistent manner and in the same database, which will allow staff to monitor these registrants more effectively. Third, if FINRA is not designated to receive FOCUS Report filings from stand-alone and bank SBSEs, a separate, parallel filing system would need to be created only for non-FINRA supervised filers, which would create complexity and redundancy because the same 6 See 17 CFR 240.18a–7(a). 7 See Recordkeeping Adopting Release, 84 FR at 68572. VerDate Sep<11>2014 17:57 May 18, 2020 Jkt 250001 information for required filers would be located on two different filing systems. This, in turn, could create unnecessary confusion and uncertainty for filers. It might also inadvertently result in different available services simply based on which filing system the entity is assigned to use. III. Conclusion It is hereby ordered that FINRA is designated as the organization with which stand-alone SBSEs must file Part II of FOCUS Report and bank SBSEs must file Part IIC of the FOCUS Report in accordance with the requirements of those filings, Section 15F of the Exchange Act, and Rule 18a–7.8 By the Commission. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2020–10770 Filed 5–18–20; 8:45 am] 05/08/2020, Private Non-Profit organizations that provide essential services of a governmental nature may file disaster loan applications at the address listed above or other locally announced locations. The following areas have been determined to be adversely affected by the disaster: Primary Counties: Craighead The Interest Rates are: Percent For Physical Damage: Non-Profit Organizations With Credit Available Elsewhere ..... Non-Profit Organizations Without Credit Available Elsewhere ..... For Economic Injury: Non-Profit Organizations Without Credit Available Elsewhere ..... 2.750 2.750 2.750 BILLING CODE 8011–01–P The number assigned to this disaster for physical damage is 16450C and for economic injury is 164510. SMALL BUSINESS ADMINISTRATION (Catalog of Federal Domestic Assistance Number 59008) [Disaster Declaration #16450 and #16451; Arkansas Disaster Number AR–00114] Presidential Declaration of a Major Disaster for Public Assistance Only for the State of Arkansas U.S. Small Business Administration. ACTION: Notice. Cynthia Pitts, Acting Associate Administrator for Disaster Assistance. [FR Doc. 2020–10686 Filed 5–18–20; 8:45 am] BILLING CODE 8026–03–P AGENCY: SMALL BUSINESS ADMINISTRATION This is a Notice of the Presidential declaration of a major disaster for Public Assistance Only for the State of ARKANSAS (FEMA–4544– DR), dated 05/08/2020. Incident: Severe Storms, Tornadoes, and Straight-line Winds. Incident Period: 03/28/2020. DATES: Issued on 05/08/2020. Physical Loan Application Deadline Date: 07/07/2020. Economic Injury (EIDL) Loan Application Deadline Date: 02/08/2021. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. FOR FURTHER INFORMATION CONTACT: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, 409 3rd Street SW, Suite 6050, Washington, DC 20416, (202) 205–6734. SUPPLEMENTARY INFORMATION: Notice is hereby given that as a result of the President’s major disaster declaration on SUMMARY: 8 Technical instructions for filing the FOCUS Report with FINRA will be made available on the Commission’s or FINRA’s website before the October 6, 2021, compliance date. PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 [Disaster Declaration #16435 and #16436; South Carolina Disaster Number SC–00071] Presidential Declaration Amendment of a Major Disaster for the State of South Carolina U.S. Small Business Administration. ACTION: Amendment 1. AGENCY: This is an amendment of the Presidential declaration of a major disaster for the State of South Carolina (FEMA–4542–DR), dated 05/01/2020. Incident: Severe Storms, Tornadoes, and Straight-line Winds. Incident Period: 04/12/2020 through 04/13/2020. DATES: Issued on 05/12/2020. Physical Loan Application Deadline Date: 06/30/2020. Economic Injury (EIDL) Loan Application Deadline Date: 02/01/2021. ADDRESSES: Submit completed loan applications to: U.S. Small Business Administration, Processing and Disbursement Center, 14925 Kingsport Road, Fort Worth, TX 76155. SUMMARY: A. Escobar, Office of Disaster Assistance, U.S. Small Business Administration, FOR FURTHER INFORMATION CONTACT: E:\FR\FM\19MYN1.SGM 19MYN1

Agencies

[Federal Register Volume 85, Number 97 (Tuesday, May 19, 2020)]
[Notices]
[Pages 29993-29994]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-10770]


-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-88866]


Order Designating Financial Industry Regulatory Authority, Inc., 
To Receive Form X-17A-5 (FOCUS Report) From Certain Security-Based Swap 
Dealers and Major Security-Based Swap Participants

May 14, 2020.

I. Introduction

    Currently, broker-dealers are required to file on a monthly or 
quarterly basis various parts (Part II, Part IIB, Part II CSE, or Part 
IIA) of Form X-17A-5 (``FOCUS Report''), a form which is used to report 
financial and operational information. On September 19, 2019, the 
Commission adopted recordkeeping, reporting, and notification 
requirements for security-based swap dealers and major security-based 
swap participants (collectively, ``security-based swap entities'' or 
``SBSEs'') and additional recordkeeping and reporting requirements for 
broker-dealers to account for their security-based swap activities.\1\ 
In adopting these requirements, the Commission amended Part II of the 
FOCUS Report to elicit additional information about the security-based 
swap activities of broker-dealers that file Part II, including broker-
dealers that will also be registered as SBSEs. In addition, the 
Commission adopted amendments that will require the broker-dealers that 
currently file Part IIB and Part II CSE to file revised Part II. 
Further, the Commission adopted a rule (``Rule 18a-7'') pursuant to 
Section 15F of the Securities Exchange Act of 1934 (``Exchange Act'') 
that will require SBSEs that are not also registered with the 
Commission as broker-dealers or regulated by a prudential regulator 
(``stand-alone SBSEs'') to file Part II of the FOCUS Report on a 
monthly basis and SBSEs for which there is a prudential regulator 
(``bank SBSEs'') to file new Part IIC of the FOCUS Report on a 
quarterly basis.\2\ The compliance date for these entities to file 
revised Part II or new Part IIC of the FOCUS Report is October 6, 
2021.\3\
---------------------------------------------------------------------------

    \1\ See Recordkeeping and Reporting Requirements for Security-
Based Swap Dealers, Major Security-Based Swap Participants, and 
Broker-Dealers, Securities Exchange Act Release No. 87005 (Sept. 19, 
2019), 84 FR 68550 (Dec. 16, 2019) (``Recordkeeping Adopting 
Release'').
    \2\ See 17 CFR 240.18a-7(a)(1) (applicable to stand-alone 
SBSEs); 17 CFR 240.18a-7(a)(2) (applicable to bank SBSEs). Revised 
Part II of the FOCUS Report is available on pages 68672-68721 of the 
Recordkeeping Adopting Release. New Part IIC of the FOCUS Report is 
available on pages 68722-68733 of the Recordkeeping Adopting 
Release.
    \3\ See Recordkeeping Adopting Release, 84 FR at 68600-601; 
Cross-Border Application of Certain Security-Based Swap 
Requirements, Exchange Act Release No. 87780 (Dec. 18, 2019), 85 FR 
6270 (Feb. 4, 2020).
---------------------------------------------------------------------------

    Most broker-dealers currently file the FOCUS Report electronically 
on the eFOCUS system \4\ developed by the Financial Industry Regulatory 
Authority, Inc. (``FINRA''). These broker-dealers file the FOCUS Report 
pursuant to a plan established by the broker-dealer's self-regulatory 
organization (``SRO''), the procedures and provisions of which have 
been submitted to and declared effective by the Commission pursuant to 
paragraph (a)(3) of Exchange Act Rule 17a-5.\5\

[[Page 29994]]

Because stand-alone SBSEs and bank SBSEs will not be dually registered 
as broker-dealers, they will not be supervised by SROs and therefore 
are not subject to the SRO plans requiring the FOCUS Report to be filed 
on FINRA's eFOCUS system. Rule 18a-7 requires stand-alone SBSEs and 
bank SBSEs to file the FOCUS Report with ``the Commission or its 
designee'' \6\ to provide the Commission with the option of requiring 
that these registrants file the FOCUS Report with a third party.\7\ By 
this order, the Commission is designating FINRA as the organization 
with which stand-alone SBSEs and bank SBSEs must file revised Part II 
and new Part IIC of the FOCUS Report, respectively, on and after the 
October 6, 2021, compliance date.
---------------------------------------------------------------------------

    \4\ FINRA's eFOCUS system is available at https://www.finra.org/filing-reporting/efocus.
    \5\ See 17 CFR 240.17a-5(a)(3).
    \6\ See 17 CFR 240.18a-7(a).
    \7\ See Recordkeeping Adopting Release, 84 FR at 68572.
---------------------------------------------------------------------------

II. Discussion

    FINRA is uniquely qualified to provide the Commission with a 
familiar and consolidated platform for stand-alone SBSEs and bank SBSEs 
to file the FOCUS Report, uniform ancillary ongoing services associated 
with these filings, and a consolidated platform for transmitting this 
data to the Commission.
    First, FINRA-supervised broker-dealers currently file the FOCUS 
Report through the eFOCUS system owned and operated by FINRA. The 
Commission anticipates many firms that register as stand-alone SBSEs 
and bank SBSEs will be affiliated with broker-dealers that currently 
use the eFOCUS system. FINRA's eFOCUS system is unique in that it would 
enable the broker-dealer and non-broker-dealer entities to file both 
entities' FOCUS Reports on the same platform using the same preexisting 
templates, software, and procedures currently used by the broker-
dealer.
    Second, FINRA is uniquely able to transmit the data in the FOCUS 
Report filings by broker-dealers and non-broker-dealer SBSEs in a 
consolidated data transmission to the Commission. Thus, Commission 
staff will be able to compare data between these different types of 
entities in a consistent manner and in the same database, which will 
allow staff to monitor these registrants more effectively.
    Third, if FINRA is not designated to receive FOCUS Report filings 
from stand-alone and bank SBSEs, a separate, parallel filing system 
would need to be created only for non-FINRA supervised filers, which 
would create complexity and redundancy because the same information for 
required filers would be located on two different filing systems. This, 
in turn, could create unnecessary confusion and uncertainty for filers. 
It might also inadvertently result in different available services 
simply based on which filing system the entity is assigned to use.

III. Conclusion

    It is hereby ordered that FINRA is designated as the organization 
with which stand-alone SBSEs must file Part II of FOCUS Report and bank 
SBSEs must file Part IIC of the FOCUS Report in accordance with the 
requirements of those filings, Section 15F of the Exchange Act, and 
Rule 18a-7.\8\
---------------------------------------------------------------------------

    \8\ Technical instructions for filing the FOCUS Report with 
FINRA will be made available on the Commission's or FINRA's website 
before the October 6, 2021, compliance date.

    By the Commission.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-10770 Filed 5-18-20; 8:45 am]
 BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.