Order Specifying the Manner and Format of Filing Unaudited Financial and Operational Information by Security-Based Swap Dealers and Major Security-Based Swap Participants That Are Not U.S. Persons and Are Relying on Substituted Compliance Determinations With Respect to Rule 18a-7, 59208-59258 [2021-22817]

Download as PDF 59208 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices should be submitted on or before November 16, 2021. For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.21 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–23257 Filed 10–25–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93335] Order Specifying the Manner and Format of Filing Unaudited Financial and Operational Information by Security-Based Swap Dealers and Major Security-Based Swap Participants That Are Not U.S. Persons and Are Relying on Substituted Compliance Determinations With Respect to Rule 18a–7 I. Introduction Currently, broker-dealers are required to file on a monthly or quarterly basis the applicable part of Form X–17A–5 (‘‘FOCUS Report’’).1 Broker-dealers use the FOCUS Report to submit unaudited financial and operational information that is used by the Commission and broker-dealer self-regulatory organizations to monitor and supervise the firms. On September 19, 2019, the U.S. Securities and Exchange Commission (‘‘Commission’’) adopted recordkeeping, reporting, and notification requirements applicable to registered security-based swap dealers and major security-based swap participants (collectively, ‘‘SBS Entities’’) and additional recordkeeping and reporting requirements for brokerdealers to account for their securitybased swap activities.2 As part of this initiative, the Commission adopted Exchange Act rule 18a–7 (‘‘Rule 18a– 7’’), amended Part II of the FOCUS Report, and adopted a new Part IIC of the FOCUS Report.3 Rule 18a–7 applies to SBS Entities that also are registered with the Commission as OTC derivatives dealers (a special purpose 21 17 CFR 200.30–3(a)(12). 17 CFR 240.17a–5(a). 2 See Recordkeeping and Reporting Requirements for Security-Based Swap Dealers, Major SecurityBased Swap Participants, and Broker-Dealers, Securities Exchange Act of 1934 (‘‘Exchange Act’’) Release No. 87005 (Sept. 19, 2019), 84 FR 68550 (Dec. 16, 2019) (‘‘Recordkeeping and Reporting Adopting Release’’). 3 Id. at 68571–88. See also 17 CFR 240.18a–7. The amendments to Part II included consolidating other FOCUS Report parts into Part II. See Recordkeeping and Reporting Adopting Release, 84 FR at 68573– 74 (discussing the consolidation of Parts IIB and IICSE into Part II). 1 See VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 broker-dealer that must limit its business to dealing in over-the-counter derivatives) or that do not have a brokerdealer registration.4 Under this rule, SBS Entities that do not have a prudential regulator are required to file Part II of the FOCUS Report on a monthly basis and SBS Entities that have a prudential regulator are required to file Part IIC of the FOCUS Report on a quarterly basis.5 Rule 18a–7 requires SBS Entities to file Part II or Part IIC of the FOCUS Report with the Commission or its designee.6 The Commission has designated the Financial Industry Regulatory Association, Inc. (‘‘FINRA’’) as the organization with which SBS Entities must file Part II or Part IIC of the FOCUS Report.7 Exchange Act rule 3a71–6 (‘‘Rule 3a71–6’’) conditionally provides that SBS Entities that are not U.S. persons may satisfy certain requirements under Exchange Act section 15F, including Rule 18a–7, by complying with comparable regulatory requirements of the SBS Entity’s home jurisdiction.8 Pursuant to Rule 3a71–6, the Commission has issued orders granting conditional substituted compliance with respect to certain requirements applicable to SBS Entities subject to regulation in France, Germany, and the United Kingdom (‘‘substituted compliance orders’’).9 The substituted compliance orders permit certain SBS 4 SBS Entities that also are registered as brokerdealers (other than OTC derivatives dealers) are subject to the FOCUS Report filing requirements of Exchange Act rule 17a–5. 17 CFR 240.17a–5(a). 5 See 17 CFR 240.18a–7(a)(1) and (2). 6 See 17 CFR 240.18a–7(a). 7 See 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, Exchange Release No. 34–88866 (May 14, 2020). 8 See 17 CFR 240.3a71–6. 9 See Order Granting Conditional Substituted Compliance in Connection with Certain Requirements Applicable to Non-U.S. SecurityBased Swap Dealers and Major Security-Based Swap Participants Subject to Regulation in the Federal Republic of Germany, Exchange Act Release No. 90765 (Dec. 22, 2020), 85 FR 85686 (Dec. 29, 2020); Order Granting Conditional Substituted Compliance in Connection with Certain Requirements Applicable to Non-U.S. SecurityBased Swap Dealers and Major Security-Based Swap Participants Subject to Regulation in the French Republic, Exchange Act Release No. 92484 (July 23, 2021), 86 FR 41612 (Aug. 2, 2021); Order Granting Conditional Substituted Compliance in Connection with Certain Requirements Applicable to Non-U.S. Security-Based Swap Dealers and Major Security-Based Swap Participants Subject to Regulation in the United Kingdom, Exchange Release No. 92529 (June 30, 2021), 86 FR 43318 (Aug. 6, 2021); Order Granting Conditional Substituted Compliance in Connection With Certain Requirements Applicable to Non-U.S. SecurityBased Swap Dealers Subject to Regulation in the Swiss Confederation, Exchange Act Release No. 93284 (Oct. 8, 2021). PO 00000 Frm 00097 Fmt 4703 Sfmt 4703 Entities in those jurisdictions (‘‘Covered Entities’’) to apply substituted compliance for specified Exchange Act requirements. The substituted compliance orders permit a Covered Entity to satisfy the requirements of Rule 18a–7 with respect to filing Part II or Part IIC of the FOCUS Report by being subject to and complying with specified requirements in the Covered Entity’s home jurisdiction, subject to additional conditions designed to help ensure comparability of regulatory outcomes. In particular, the conditions for applying substituted compliance with respect to Rule 18a–7 are that the Covered Entity: (1) Is subject to and complies with the relevant comparable requirements of the home jurisdiction; (2) files periodic unaudited financial and operational information with the Commission or its designee in the manner and format required by Commission rule or order and presents the financial information in the filing in accordance with generally accepted accounting principles (‘‘GAAP’’) that the Covered Entity uses to prepare general purpose publicly available or available to be issued financial statements in the home jurisdiction (‘‘manner and format condition’’); (3) applies substituted compliance for the capital requirements of Exchange Act rules 18a–1 through 18a–1d (collectively, ‘‘Rule 18a–1’’) if the Covered Entity does not have a prudential regulator; 10 and (4) applies substituted compliance for the record preservation requirements of Exchange Act rule 18a–6(b)(1)(viii) (‘‘Rule 18a– 6(b)(1)(viii)’’) if the Covered Entity does not have a prudential regulator.11 This order specifies how a Covered Entity must meet the manner and format condition in a substituted compliance order.12 Finally, in response to the Commission’s proposed substituted compliance orders with respect to Germany, France, and the United Kingdom, commenters made suggestions about the manner and 10 See 17 CFR 240.18a–1 through 18a–1d. 17 CFR 240.18a–6(b)(1)(viii). Rule 18a– 6(b)(1)(viii) requires SBS Entities without a prudential regulator to preserve specified information in support of amounts included in the FOCUS Report Part II prepared as of the audit date. Id. 12 This order applies to the manner and format condition in the existing substituted compliance orders and to any future orders that include the manner and format condition. If necessary to achieve comparable regulatory outcomes, the Commission may prescribe additional conditions in a future substituted compliance order with respect to a particular jurisdiction to tailor a Covered Entity’s reliance on the manner and format condition to the relevant laws in the jurisdiction. 11 See E:\FR\FM\26OCN1.SGM 26OCN1 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices format condition.13 The comments, and the Commission’s response to them, are discussed below. II. Discussion A. Manner of Filing i. Use Part II or IIC of the FOCUS Report and the eFOCUS System Administered by FINRA Most broker-dealers registered with the Commission currently file the applicable part of the FOCUS Report with FINRA through the eFOCUS system (‘‘FINRA eFOCUS system’’). As noted above, the Commission has designated FINRA to receive Part II and Part IIC of the FOCUS Report filed by SBS Entities pursuant to Rule 18a–7, including SBS Entities that are not broker-dealer members of FINRA. FINRA will administer a separate eFOCUS system to be used by SBS Entities that are not broker-dealer members of FINRA to file the FOCUS Report Part II and Part IIC (as applicable) (‘‘SEC eFOCUS system’’). Under this order, a Covered Entity must file the financial and operational information in the format discussed below with the Commission through the SEC eFOCUS system administered by FINRA.14 The SEC eFOCUS system is modelled closely on the FINRA eFOCUS system. Using the SEC eFOCUS system will enable Covered Entities applying substituted compliance with respect to Rule 18a–7 to file the FOCUS Report Part II and Part IIC (as applicable) on the same platform and to use the same preexisting templates, software, and procedures as SBS Entities that are not members of FINRA. Further, the Commission staff will have access to the SEC eFOCUS system and the FINRA eFOCUS system (collectively, the ‘‘eFOCUS systems’’) and information filed on those systems will be provided to the Commission staff to maintain a separate database. The staff will use its access to the eFOCUS systems and the database to monitor the financial condition of firms and to perform crossfirm analysis to identify trends and areas meriting further regulatory focus as well as to perform economic analyses. Requiring Covered Entities to 13 The comments are available at: https:// www.sec.gov/comments/s7-16-20/s71620.htm (Germany); https://www.sec.gov/comments/s7-2220/s72220.htm (France); and https://www.sec.gov/ comments/s7-04-21/s70421.htm (United Kingdom). 14 See paragraph (a) of the ordering language below. Covered Entities may file the FOCUS Reports Part II and Part IIC (as applicable) pursuant to instructions on the Commission’s website if the SEC eFOCUS system is not ready to receive them by the required first filing deadline and, thereafter, until the SEC eFOCUS system is ready to receive the FOCUS Reports. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 use the SEC eFOCUS system to file the required financial and operational information will facilitate integrating the information with the financial and operational information of brokerdealers (some of which will be registered as security-based swap dealers) and SBS Entities that are not applying substituted compliance with respect to Rule 18a–7. This will enhance the Commission’s ability to monitor and supervise these firms. ii. Frequency and Timing of Filing Rule 18a–7 requires an SBS Entity that is not prudentially regulated to file Part II of the FOCUS Report seventeen business days after the month end and an SBS Entity that is prudentially regulated to file Part IIC of the FOCUS Report thirty calendar days after the quarter end.15 In response to proposed substituted compliance orders, the Commission received comments requesting that Covered Entities be permitted to file their financial and operational information with the same frequency that they file financial reports in their home jurisdictions (typically quarterly).16 A commenter further requested that the deadline for filing the financial and operational information with the Commission be extended to 14 calendar days after the filing in their home jurisdiction is due, except the commenter requested 30 calendar days in the case of a filing that covers a period ending on the firm’s fiscal year end.17 The commenter’s requests would substantially delay (in some cases by multiple months) the reporting of financial and operational information by Covered Entities. Consequently, for the reasons discussed below, the Commission does not believe it would be appropriate to permit the extended timeframes for reporting this information requested by the commenter. The Commission—when amending Rule 3a71–6 to make substituted compliance available for 15 See 17 CFR 240.18a–7(a)(1) and (2). e.g., Letter from Kyle Brandon, Managing Director, Head of Derivative Policy, SIFMA (Dec. 8, 2020) (‘‘SIFMA Letter re: Proposed Order (Germany)’’) at 8; Letter from Jan Ford, Head of Compliance, Americas and Co-Head of SBS Council, Deutsche Bank, and Gary Kane, Co-Head Institutional Client Group, Americas and Co-Head of SBS Council, Deutsche Bank (Dec. 8, 2020) (‘‘Deutsche Bank Letter re: Proposed Order (Germany)’’) at 2; Letter from Kyle Brandon, Managing Director, Head of Derivative Policy, SIFMA (Jan. 25, 2021) (‘‘SIFMA Letter re: Proposed Order (France)’’) at 16; Letter from Kyle L. Brandon, Managing Director, Head of Derivatives Policy, SIFMA (May 3, 2021) (‘‘SIFMA Letter re: Proposed Order (UK)’’) at Appendix B. 17 SIFMA Letter re: Proposed Order (UK) at Appendix B. 16 See, PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 59209 Rule 18a–7—explained the importance of reporting.18 In particular, the reporting requirements are integral to the ability of the Commission to effectively examine and inspect regulated firms’ compliance with applicable securities laws.19 Further, the reports are used to determine which firms are engaged in various securitiesrelated activities, and how economic events and government policies may affect segments of the securities industry.20 In addition, the reports are important for protecting customers against the risks involved in having their securities held by a third party.21 Finally, the reporting requirements promote transparency of the financial and operational condition of firms registered with the Commission.22 In light of these considerations, Rule 3a71– 6 states, in pertinent part, that prior to making a substituted compliance determination regarding SBS Entity reporting requirements, the Commission intends to consider (in addition to any conditions imposed) whether the foreign financial regulatory system’s required reports, the timeframes for reporting information, the accounting standards governing the reports, and the required format of the reports are comparable to applicable provisions arising under the Exchange Act and its rules and regulations and would permit the Commission to examine and inspect regulated firms’ compliance with applicable securities laws.23 Rule 18a–7 requires SBS Entities without a prudential regulator to file the FOCUS Report Part II on a monthly basis 17 business days after the end of the month. As stated above, the commenter requests that Covered Entities without a prudential regulator be permitted to file the financial and operational information on a quarterly basis (if that is the filing frequency in their home jurisdiction) and 14 or 30 days after the deadlines for filing information in their home jurisdiction. Permitting quarterly filing and tying the deadline to local requirements would significantly delay the Commission’s receipt of the financial and operational information and result in the filing of information that is multiple months old. Therefore, for the reasons discussed above, the Commission does not believe it would be appropriate to permit the timeframes requested by the commenter. 18 See Recordkeeping and Reporting Adopting Release, 84 FR at 68598. 19 Id. 20 Id. 21 Id. 22 Id. 23 See 17 CFR 240.3a71–6; Recordkeeping and Reporting Adopting Release, 84 FR at 68598. E:\FR\FM\26OCN1.SGM 26OCN1 59210 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices However, the Commission does believe it would be appropriate to permit the filing deadline to be 35 calendar days after the month end. This would align with the 35-day filing deadline for Covered Entities with a prudential regulator (discussed below). Rule 18a–7 requires SBS Entities with a prudential regulator to file the FOCUS Report Part IIC 30 calendar days after the end of the quarter. The commenter requests that Covered Entities with a prudential regulator be permitted to file the financial and operational information 14 or 30 days after the deadlines for filing information in their home jurisdiction. As discussed above, tying the deadline to local requirements would significantly delay the Commission’s receipt of the financial and operational information and result in the filing of information that is several months old. Therefore, for the reasons discussed above, the Commission does not believe it would be appropriate to permit the timeframes requested by the commenter. However, the Commission believes it would be appropriate to permit the filing deadline to be 35 days after the quarter end. The Commission understands that the U.S. prudential regulators permit certain U.S. banks to file their financial reports 35 days after the quarter end. The Commission does not believe this modest increase in the number of days Covered Entities have to file the FOCUS Report Part II or Part IIC would implicate the concerns discussed above about receiving stale information. Under the order, a Covered Entity without a prudential regulatory must file the FOCUS Report Part II 35 calendar days after the end of the month.24 A Covered Entity with a prudential regulator must file the FOCUS Report Part IIC 35 calendar days after the end of the quarter. 25 B. Format of Filing i. Complete a Specified Set of Line Items on the FOCUS Report Part II and Part IIC of the FOCUS Report elicit financial and operational information about the filer through sections consisting of uniquely numbered line items. The information (e.g., a number or dollar amount) is entered into the line items. Under Rule 18a–7, an SBS Entity must use Part II or Part IIC of the FOCUS Report to submit required financial and operational information by filling out all applicable line items on the form. Commenters 24 See paragraph (a)(1) of the ordering language below. 25 See paragraph (a)(2) of the ordering language below. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 requested that Covered Entities be allowed to file other reports instead of or in combination with extracts from filings made with home country supervisors in lieu of filing the information elicited in Part II or Part IIC of the FOCUS Report.26 As discussed above, the Commission’s ability to monitor and supervise SBS Entities will be facilitated by having all firms file periodic unaudited financial and operational information through the eFOCUS systems. The eFOCUS systems are configured to receive information formatted to Part II and Part IIC of the FOCUS Report and the line items contained on the forms. Consequently, information formatted to other types of report templates or free-form information cannot be input into the systems. Moreover, having all firms enter information in the uniquely numbered line items on Part II or Part IIC of the FOCUS Report will facilitate cross firm comparisons. If firms use different forms or report information without using the template of a common form, the Commission staff would need to manually merge the data, and even then, there would be omissions when the other form does not have a parallel line item. However, the Commission sought comment in the proposed substituted compliance orders for Germany, France, and the United Kingdom on whether it would be appropriate initially for Covered Entities to report information elicited by a limited subset of the applicable line items on Part II and Part IIC of the FOCUS Report rather than all applicable line items. Commenters supported this approach and a commenter indicated the line items on the two forms that Covered Entities could complete with information that they report pursuant to other requirements.27 The Commission believes it would be appropriate initially to limit the line items that Covered Entities complete on Part II or Part IIC of the FOCUS Report (as applicable) to information they draw from other reports or otherwise produce. This will allow them to use existing systems and processes for calculating and producing the information reported on the FOCUS Report Part II or Part IIC (as applicable), while still producing information that will facilitate the Commission’s effective oversight of these entities. During this initial period, the Commission will evaluate whether it 26 See SIFMA Letter re: Proposed Order (Germany) at 8; Deutsche Bank Letter re: Proposed Order (Germany) at 2; SIFMA Letter re: Proposed Order (France) at 15. 27 See, e.g., SIFMA Letter re: Proposed Order (UK) at Appendix B. PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 would be appropriate to require additional information to be reported by these filers in order to achieve a comparable regulatory outcome to the FOCUS Report filing requirements of Rule 18a–7. For these reasons, the order requires Covered Entities to complete a limited set of applicable line items on Part II or Part IIC of the FOCUS Report (as applicable).28 ii. Report Information On A Consolidated or Unconsolidated Basis A commenter requested that Covered Entities be permitted to present the financial and operational information in the filings at the entity-level of the Covered Entity on either a consolidated or unconsolidated basis depending on the reporting basis the Covered Entity uses in its home jurisdiction.29 The Commission believes it would be appropriate for the purposes of this order to permit Covered Entities to present the information in Part II or Part IIC of the FOCUS Report (as applicable) at the entity level of the Covered Entity on the same basis (consolidated or unconsolidated) that the Covered Entity presents information in the financial reports it files in its home jurisdiction.30 This will avoid Covered Entities having to prepare two sets of financial statements: One for their home jurisdiction and one for the purposes of this order, while still producing information that will facilitate the Commission’s effective oversight of these entities. iii. Covered Entities Without a Prudential Regulator Must Complete the Regulatory Capital Section of Part IIC of the FOCUS Report The Commission has issued substituted compliance orders that 28 See paragraph (b) of the ordering language below. The minimum required line items are highlighted on Part II of the FOCUS Report attached as Appendix A (if not prudentially regulated) or Part IIC of the FOCUS Report attached as Appendix B (if prudentially regulated). An SBS Entity may report information elicited in other line items on the applicable FOCUS Report if it chooses to do so. Further, as is the case with SBS Entities, Covered Entities must complete required line items if applicable. For example, under this order, Covered Entities will need to complete line items linked to Exchange rule 18a–4 (‘‘Rule 18a–4’’). 17 CFR 240.18a–4. However, the Commission expects most, if not all, Covered Entities will operate under an exemption to the segregation requirements of Rule 18a–4. Almost all the line items linked to Rule 18a– 4 apply if the Covered Entity is not operating under the exemption. Therefore, a Covered Entity operating under the exemption need not complete these line items (there is a line item to indicate the firm is operating under the exemption, which will need to be completed if applicable). 29 See SIFMA Letter re: Proposed Order (UK) at Appendix B. 30 See paragraph (c) of the ordering language below. E:\FR\FM\26OCN1.SGM 26OCN1 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices permit Covered Entities to apply substituted compliance with respect to the capital requirements of Rule 18a–1 applicable to Covered Entities without a prudential regulator subject to certain conditions. One of the conditions is that the Covered Entity is subject to and complies with specified capital requirements in the firm’s home jurisdiction. The capital requirements in the home jurisdictions addressed in the substituted compliance orders are based on the international capital standard for banks (‘‘Basel capital standard’’).31 Part IIC of the FOCUS Report—because it is used by prudentially regulated SBS Entities—includes a section to report the firm’s capital computation under the Basel capital standard. Conversely, Part II of the FOCUS Report includes sections to report capital computations under Exchange Act rule 15c3–1 32 and Rule 18a–1. It does not contain a section to report a capital computation under the Basel capital standard. Moreover, as discussed above, substituted compliance with Rule 18a-7 is conditioned on a Covered Entity without a prudential regulator applying substituted compliance with respect to Rule 18a–1. For these reasons, the order provides that Covered Entities without a prudential regulator must complete the Regulatory Capital section from Part IIC of the FOCUS Report, rather than completing the Computation of Net Capital and Computation of Minimum Regulatory Capital Requirements sections from Part II of the FOCUS Report.33 Because Part II of the FOCUS Report does not include a section to calculate capital under the Basel capital standard, the version of that form attached to this order has been modified to include the capital calculation section from Part IIC of the FOCUS Report. iv. Report Basel Capital Standard Calculation Pursuant to Home Country Requirements A commenter requested that the Commission permit a Covered Entity to complete the capital line items in the 31 See, e.g., BCBS, The Basel Framework, available at: https://www.bis.org/basel_framework/. 32 17 CFR 240.15c3–1. 33 See paragraph (d) of the ordering language below. Initially, Covered Entities without a prudential regulator will need to file the FOCUS Report Part II and the FOCUS Report Part IIC (with only the Regulatory Capital section completed in the FOCUS Report Part IIC). Eventually, the SEC eFOCUS may be configured so that Covered Entities using Part II of the FOCUS Report to meet the manner and format condition will be able to report a capital calculation under the Basel capital standard using the relevant section from the FOCUS Report Part IIC without having to separately file the FOCUS Report Part IIC. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 filings, if the FOCUS Report Part IIC is used as the filing form, in a manner consistent with its home jurisdiction’s capital standards and related reporting requirements.34 The Commission believes this accommodation to local reporting requirements would be appropriate for Covered Entities with a prudential regulator and for Covered Entities without a prudential regulator applying substituted compliance for the capital requirements of Rule 18a–1. This will avoid these firms having to perform and present two Basel capital calculations (one pursuant to local requirements and one pursuant to U.S. requirements). Moreover, the Basel capital standard is an international standard that has been adopted in the U.S. and in jurisdictions where substituted compliance is available for capital. Therefore, requirements for how firms calculate capital pursuant to the Basel capital standard generally should be similar. Consequently, even though the capital section of Part IIC of the FOCUS Report requires SBS Entities to complete the Regulatory Capital section using the instructions accompanying form FFIEC 031 (‘‘Call Report’’), Covered Entities completing the capital section of Part IIC of the FOCUS Report pursuant to this order may rely on local requirements to present the information on this section of the FOCUS Report.35 v. Report GAAP Used In Memo Field to the FOCUS Report As discussed above, the manner and format condition in the Commission’s substituted compliance orders requires Covered Entities to file periodic unaudited financial and operational information with the Commission or its designee in the manner and format required by Commission rule or order and present the financial information in the filing in accordance with GAAP that the Covered Entity uses to prepare general purpose publicly available or available to be issued financial statements in the home jurisdiction. Under this order, the Covered Entity must notify the Commission in a memorandum field accompanying the FOCUS Report the GAAP it uses to present the financial information in the filing.36 This will allow the Commission 34 See SIFMA Letter re: Proposed Order (Germany) at 8; SIFMA Letter re: Proposed Order (France) at 15. 35 See paragraph (d) of the ordering language below. 36 See paragraph (e) of the ordering language below. In particular, the Covered Entity will need to report this information in the memorandum field for line item 12003 or 12004 (as applicable) of the FOCUS Report Part II if not prudentially regulated or line item 12758 or 12759 (as applicable) of the FOCUS Report Part IIC if prudentially regulated. PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 59211 to better understand the information presented in the FOCUS Report and how it may differ from information reported by SBS Entities pursuant to U.S. GAAP. vii. Follow FOCUS Report Instructions Unless Inconsistent With This Order Finally, the Covered Entity must follow the instructions for completing the FOCUS Report Part II or Part IIC, as applicable, to the extent the instructions are not inconsistent with the provisions of the order.37 This includes presenting information in U.S. dollars (not in local currencies).38 However, a prudentially regulated Covered Entity filing the FOCUS Report Part IIC need not follow instructions referring to line items on the Call Report to the extent the Covered Entity does not report the required information in a Call Report pursuant to that instruction.39 III. Conclusion It is hereby ordered that a Covered Entity must meet the manner and format condition in a Commission order granting conditional substituted compliance with respect Exchange Act rule 18a–7 by: (a)(1) If not prudentially regulated, filing through the SEC eFOCUS system a FOCUS Report Part II 35 calendar days after the end of each month; or (2) If prudentially regulated, filing through the SEC eFOCUS system the FOCUS Report Part IIC 35 calendar days after the end of each quarter; (b)(1) If not prudentially regulated, entering the required information on the line items (as applicable) highlighted on the FOCUS Report Part II attached as Appendix A to this order on the FOCUS Report Part II filed pursuant to paragraph (a)(1) above; or (2) If prudentially regulated, entering the required information on the line items (as applicable) highlighted on the FOCUS Report Part IIC attached as Appendix B to this order on the FOCUS Covered Entities may include this GAAP notice with the FOCUS Reports Part II and Part IIC (as applicable) filed pursuant to instructions on the Commission’s website if the SEC eFOCUS system is not ready to receive them by the required first filing deadline and, thereafter, until the SEC eFOCUS system is ready to receive the FOCUS Reports. 37 See paragraph (f) of the ordering language below. 38 Covered Entities may convert local currencies at a ‘‘top-line’’ level to U.S. dollars at the spot rate applicable on the ‘‘as of’’ date of the reported amount. 39 If the Covered Entity files a Call Report in the U.S. with a prudential regulator pursuant to the instructions for the Call Report, it should follow the instructions in the FOCUS Report Part IIC to report information in that report to the extent the same information is reported by the Covered Entity in the Call Report. E:\FR\FM\26OCN1.SGM 26OCN1 59212 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices Report Part IIC filed pursuant to paragraph (a)(2) above; (c) Presenting the information in the FOCUS Report Part II or Part IIC (as applicable) filed pursuant to paragraph (a) above at the entity level of the Covered Entity on the same basis (consolidated or unconsolidated) that the Covered Entity presents information in the financial reports it files in its home jurisdiction; (d) Completing the Regulatory Capital section of the FOCUS Report Part IIC and presenting the information in that section in accordance with the reporting requirements of the Covered Entity’s home jurisdiction; VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 (e) Identifying the generally accepted accounting principles being used to present the information in the FOCUS Report Part II or Part IIC (as applicable) filed pursuant to paragraph (a) above in the memo field for line item 12003, 12004, 12758, or 12759 (as applicable) of the report in the SEC eFOCUS system; and (f) Reporting the information in the FOCUS Report Part II or Part IIC (as applicable) filed pursuant to paragraph (a) above in accordance with the instructions for those reports; except that the Covered Entity can report the information: PO 00000 Frm 00101 Fmt 4703 Sfmt 4703 (1) In a manner consistent with a condition of this order, if the instruction conflicts with the condition; or (2) In a manner consistent with the requirements of its home jurisdiction, if the instruction on the FOCUS Report Part IIC requires information submitted on the Call Report and the Covered Entity does not report the required information on a Call Report. By the Commission. Dated: October 14, 2021. Eduardo A. Aleman, Deputy Secretary. BILLING CODE 8011–01–P E:\FR\FM\26OCN1.SGM 26OCN1 59213 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices Form X-17A-5 FOCUS Report Part II Cover Page UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOCUS REPORT (FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT) Part II ITIJ (Please read instructions before preparing Form) 0MB APPROVAL 0MB Number: 3235-0123 Expires: Estimated average burden hours per response: This report is being flied by a/an: 2) Broker-dealer not registered as an SBSD or MSBSP (siand-alone broker-dealer)........................................................................................................................ Broker-dealer registered as an SBSD (broker-dealer SBSD) .............................................................. 3) Broker-dealer registered as an MSBSP (broker-dealer MSBSP)............................................................ . 4) SBSD without a prudential regulator and not registered as a broker-dealer (stand-alone SBSD} ................ . MSBSP without a prudential regulator and not registered as a broker-dealer (stand-alone MSBSP) ........................ . 1) 5) Check here if respondent is an OTC derivatives dealer .................................................................................... This report is being iled by a: Firm authorized to use modelsD illl U.S. personD !12007! Non-U.S. personD IJB This report is being flied pursuant to (check applicable block(s)): 1) Rule 17a-5(a) ................................................ . 2) Rule 17a-5(b) ................................................. . 3) Special request by DEA or the Commission ............................................................................................... 4) 5) Rule 1Ba-7... ............................................................... . Other (explain: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ) .................................................... . NAME OF REPORTING ENTITY SEC FILE NO. Ii ADDRESS OF PRINCIPAL PLACE OF BUSINESS (Do not use P.O. Box No.) I (No. and Street) 11(Slate/Prov --1 1 -(Zip-Code) ---ince) (City) FIRMID NO. FOR PERIOD BEGINNING (MMIDDIYY) AND ENDING (MM/DD/YY) II II fl (Country) NAME OF PERSON TO CONTACT IN ii REGAR □ TO THIS REPORT EMAIL ADDRESS (AREA CODE) TELEPHONE NO. 11----111 NAME(S) OF SUBSIDIARIES OR AFFILIATES CONSOLIDATED IN THIS REPORT ll II ll ll ----------------·------··------ OFFICIAL USE II D ,. D Is this report consolidated orunconsolidated? ................................................................................ Consolidated UnconsolidNate d 0 Does respondent carry its own customer or security-based swap customeraccounls?........ ...... ............ .......... Yes Check here if res ondent is filin an audited re ort ................................................................................................................................. EXECUTION: The registrant submitting this Form and its attachments and the person(s) by whom it is executed represent hereby that all information contained therein is true, correct and complete. It is L1nderstood that all required items, slatemenls, and schedules are considered integral parts of this Form and that the submission ofa amendment re resents Iha! all unamended items, slatements, and schedules remain true. correct and com lete as reviousl submitted. Dated lhe · Signatures of Names of. ____________ H2c~,1 1) Principal ExecutiveOfficerorComparable Officer Principal ExecutiveOfficeror Comparable Officer Principal Financial Officer or Comparable Officer ------------s~~~a Princi al O erations Officer or Com arable Officer ------------R~A~i Princi al O erations Officer or Com arable Officer 2) Principal Financial Officer or Comparable Officer 3) VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00102 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.023</GPH> Persons who are lo respond to the collection of information contained in this form are not required to respond unless the form displays a rurrently valid 0MB control number. 59214 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices STATEMENT OF FINANCIAL CONDITION FOCUS Report Part II Items on !his page lo be reporfed by a: stand-Alone Broker-Dealer stand-Alone SBSD Broker-Dealer SBSD stand-Alone MSBSP Broker-Dealer MSBSP ~ Allowable 1. Cash----···································-----···································-····--············ 2. Cash segregated in con,:,liancewilh federal and olher reguations ........... ,-····-··················· ..················-······-············ 3. Receivables liom brokers/dealers and clearing organizations A. Failed to deliver 1. lncludible in segregmon reqlirerrenlunder 17 CFR 240.15c3-3 and its appendi:es or 17 CFR 240.18a-4and 18ir4a.............................•....••............ 2. Oher ..........................•..••.....................................•..•••............ B. Securities borrowed 1. lncludible in segregation reqlirerrenlunder 17 CFR 240.15c3-3 and its appendi:es or 17 CFR 240.18a-4and 18&-411 ................................................ 2. Oher ..........................•..••.....................................•....••............ C. Omibusaccounts 1. lncludible in segregaion reqlirerrenlunder 17 CFR 240.15c3-3 and itsappendi:esor 17 CFR 240.18a-4and 18ir4a .................................. _............. Non-Allowable $ ~ $ ~ $ 11111 $ ~ $ Ill $ ~ $ 1111 2. Oher ...................................................................................... D. Clearing organization; 1. lncludible in segregmon reqlirerrenlunder 17 CFR 240.15c3-3 and itsappendi:esor 17 CFR 240.18a-4and18ir4a, orlhe CEA .......................... 2. Oher ........................................................................ -............. $ ~ $ E Olher ····························································-············-····-············· 4. Receivables from customers A. Securities accounts 1. Cash and fully secured accounts...................·-···--············ 2. Partly secured accounts ........................................ __ ... ,........ $ I 3. Unsecured accounts·-·········································---············ B. Commdity accounts......................................................................... $ ~ ~ $ Ill $ $ Ill $ E!!!!I $ $ ~ 7. Securities purchased underagreanents ID resell............. -............. $ $ I!!!!! B. Olher .................................••••. $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Ill 1111 Ill $ Frm 00103 Fmt 4703 • Ill $ $ ~ $ $ • II $ ~ $ $ 1111 $ ~ $ $ $ ~ ~ ~ $ $ 1111 $ $ Ill II!!! $ ~ ~ $ ~ $ ~ $ ~ $ Sfmt 4725 Ill $ ~ ~ ~ $ Ill !!!!!! $ -·------ $ 8. Trade date receivable ...........-·········································-·················· 9. To1al net securities, comnodities, and swaps positions ... _............. $ 10. Securities borrowedundersubordiretion ai,eerrenls and partners' individual andcapial Hcurities acco111ts, almarketvalue A. Exen,:,ted securities.....·-··-·· $ B. Olher ......................................... $ $ $ $ Ill $ C. Allowance for doubtful accounts ..............................-··--············· 5. Receivables fromnon-custorrers A. Cash and fuBy secured accounts............................-····-············· B. Parly secured and unsecured accounts .................... -............. 6. Excess cash collateral pledged onderilative transactions ............. 11. Secured derrend notes- markelvalue acollateral A. Exen,:,ted securities............ $ ~ $ E:\FR\FM\26OCN1.SGM 26OCN1 I!!!) Ill 1111 II EN26OC21.024</GPH> Ami! Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices 59215 STATEMENT OF FINANCIAL CONDITION FOCUS Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP Report Part II Allowable A.!!!!! Non-Allowable I2!!!. 12. Mermerships in exchanges ------11 A. Owned, atmarketvalue ......... $ B. Owned at cost .................................................................................... $ !! $ .~ $ ~ $ fill) $ $ ~ $ ~ $ A. Dividends and interest receivable................................................... $ $ Ill $ B. Free shipments..................................................................................... C. Loans and ad.!ances.......................................................................... D. Miscellaneous...................................................................................... E Collateral accepted under ASC 860 ............................................... 12!!!1 ~ [!!!) S lli\ll Ill B E!l e!l C. Contributed for use of c011l)any, at market value ..................... 13. lnvesmntin and receivables from affiliates, subsidiariu and associated partnerships......................................................................... $ 14. Property, fumi1ure, equipmen~ leasehold ill1)rovements and rights underlease agreanents At cost (net of accum.1lated depreciation and amortization)........... ---- 15. Other assets $ S F. SPE Assets............................................................................................ S 16. TOTAL ASSETS........................................................................................ S $ $ rn $ [!!I s m $ -----~ $ ---Ill VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00104 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.025</GPH> Note: Stand-alone M3BSPs should onlyc011l)lete 1he Allowlille and Total colnms. 59216 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices STATEMENT OF FINANCIAL CONDITION FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP LIABILITIES AND OWNERSHIP EQUITY A.I. Liabilities ~ 17. Bank loans payable A. lncludible in segregation reqlir8118nt under 17 CFR 240.15c3-3 and its appendi:esor 17CFR240.18a-4and18a-4a,orlheCEA..........................................................................$ _ _ _ _ _ B. 01her...................................................................................................................................... $ Non-A.L Liabilities ~ $_____ ~ $ ______ - ~ $ ~ $ $ I!!!)$ - 18. Securities i!Old under repurchase agreements .................................................................. . 19. Payable lo brokers/dealers andclearingorganizations A. Failed to receive 1. lncludible in segregation requrementunder ----- 17 CFR 240.15c3·3 and its appendices or 17CFR240.18a-4and18it-4a......................................................................................... $ _ _ _ __ 2. Olher ........................................................................................................................ $ . B. Securities loaned 1. lncludible in segregation requrementunder I!!!!!) $ ___ _ 2. 01her ........................................................................................................................ $ C. Qmibus accounts 1. lncludible in segregation requrementunder 17 CFR 240 .15c3-3 and its appendices or 17 CFR240.18a-4and18a-4a. ................................................................................... $ _ _ _ __ ~ $_ _ _ ~ $ 2. Other...................................................................................................................... $ _ _ _ __ ~ $_ _ _ ~ $ $ ___ _ ~ D. Clearing organizations 1. lncludible in segregation requrementunder 17 CFR 240 .15c3·3 and its appendices or 17 CFR240.18a-4and18a-4a,orlheCEA. .............................................................. $ _ _ _ __ 2. Qlhi,r ............................................................................................................................. $ l!!!E! $ $ l!!!!! $ IE!!! $ ~ $___ _$ ___ I!!!!! B. Commcdities accounts .......................................................................................................... $ _ _ _ __ 21. Payable lo non-customers A. Securities accounts............................................................................................................ $ B. Commcdities accounts ..................................................................................................... $ _ _ _ __ (!!!g $ ~$ ~ L . _.. ___··--- IE!! $ ~ $ ~$ 22. Excess cash collateral received on derilative transactions................................................. $ _ _ _ __ 23. Trade date payable .................................................................................................................... $ 24. Total netsecurities, comnodities, and swaps positiora...................................................... $ _ _ _ __ ~$ ~$ ~ ~ ~ E. Other.................................................................................................................................. $ 20. Payable to customers A. Securities accounts- including hecredtsof ..........$ 25. Accounts payable and accrued liabilties and expenses A. Drafts payable .........................................................................................................................$ R Accounts payable ................................................................................................................... $ _ _ _ __ C. lncomelaxespayable ............................. $ _ _ _ __ ~ $ ~$ I!!!) $ l!!!!l $ [!!!!) D. Deferred income taxes...................................................................................................... . $ $ E. Accrued expenses and other liabilities ............................................................................. $ _ _ _ __ ~ ~$ $ F. OIiier .......................................................................................................................................$ _ _ _ __ ~$ ~$ G. Obligation to return securities ............................................................................................ $ ~$ ~$ ~$ H. SPE liabilities............................................................................................................................ $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00105 Fmt 4703 Sfmt 4725 - E:\FR\FM\26OCN1.SGM ~$ 26OCN1 - ----Ill ~ 1111 1111 ~ ~ EN26OC21.026</GPH> 17 CFR 240.15c3·3 and its appendices or 17 CFR240.18a-4and18a-4a. ................................................................................. $ _ _ _ __ 59217 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices STATEMENT OF FINANCIAL CONDITION FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP AJ Lia bijljes J.illl.b1 Non-A,L Liabjlies 26. Notes and fll)rlgages payable A. Unsecured ................................................................................................................................. $ _ _ _ __ B. Secured...................................................................................................................................... $ _ _ _ __ 27. Liabiities subordinalrldto claims of creditors A. Cash borrowings .................................................................................................................... . 1. From outsiders. ....................................................... $. _ _ _ _ __ 2. lncludesequitysuboninaion (Rule 15c3-1(d) orRule 18a-1(g)) nf ............................................................................... $_ _ _ _ __ I!!!!! l!!!:!I $ $ ~$ $ ~$ rn ~ I.o1il B. Securities borrowings, at market value. ............................................................................. . 1. From outsiders........................................................ $_ _ _ _ _ _ ~ $ _ _ _ __ C. Pursuant ID secured demand note collalllralagreements.............................................. $ _ _ _ __ -- 1. From outsiders ....................................................... $_ _ _ _ __ 2. Includes equitysubordnaion (Rule 15c3-1 (d) or Rule 18a-1(g)) of................................................................................ $_ _ _ _ __ $ _ _ _ __ D. Exchange memberships conlribuled for use of toll1lany, atmarketvalue............... . E Accounts and other borrowings not qualified for net capital purposes ......................... $ 28. TOTAL LIABILmES ..................................................................................................................... $ _ _ _ __ l!ml L_ ... ____ im:gs _ __ 9woershiD Eeuitv ------------ 29. Sole proprielorship..................................................................................................................................................................................................................................... $ 30. Partnership and linilBd liabilycoll1lany-including lirrillld par1ners.tnerrbers ............$ _ _ _ _ _ ~ 31. Corporation A. Preferred slock............................................................................................................................................................................. $ _ _ _ __ B. Corrrmn stock.............................................................................................................................................................................. $ _ _ _ __ C. Additional paid-in caplal........................................................................................................................................................... $ _ _ _ __ D. Relained earrings...................................................................................................................................................................... $ _ _ _ __ E Accumulated other comprehensive income.......................................................................................................................... $ _ _ _ __ $ Ill F. Total....................................................................................................................................................................................................................................................... $ G lesscapitalslockintreasury ......................................................................................................................................................................................................... $~_ _ _ _ _ ) _ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00106 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 Ill - EN26OC21.027</GPH> 32. TOTAL OWNERSHIP EQIITY (sum of Line Items 1770, 1780, 1795, and 1796)...................................................................................................................... $ 33. TOTAL LIABILmES AND OWNERSHIP EQUITY (sum of Line llrlms 1760 and 1800) ........................................................................................................... $ 59218 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices COMPUTATION OF NET CAPITAL (FILER AUTHORIZED TO USE MODELS) FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer (Au1horized lo use models) Stand-Alone SBSO (Au1horized lo use models) Broker-Dealer SBSD (Authorized lo use models) Broker-Dealer MSBSP {Authorized to use models) Computation of Net Capital ~ ~ 1. Total ownersl,ip equty lrom Item 1800 ................................................................................................................................................................................................ . $ 2. Deduct ownership equity not allowable for net capital ..................................................................................................................................................................... . $(_ ______ 3. Total ownersliip equty qualified for netcapital ............................................................................................................................................................................. . $ ~ A. Liabilities subordnated to clams of creditors alla;vable incofll)utation ofnetcapial......................................................................................................... . $ ~ B. Other (deductions) or alowable credibl (list) ................................................................................................................................................................................ . $ 5. Total capital and allowable subordinated lid:>ilties .......................................................................................................................................................................... . $ ~ ~ 4. Add: 6. Deductions and/or cha-ges A. Total nonallowable usetslromstalemento!Financial Condition........................................................................... $ ______ ~ 1. Additional charges for cu$lomers' and non-<:ustorners' security accounts........................................................ $ l:!!!J 2. Additional charges for customers' and non-<:ustorners' commodity accounts.................................................... $ ~ 3. Additional charges for customers' and non-<:ustomers' security-based swap accounts................................ $ ~ 4. Additional charges for cu$lomers' and non-<:ustomers' swap accounts............................................................. $ ~ B. Aged fail-to-deliv•r............................................................................................................................................................ $ ~ D. Secured demand nolB deficiency.................................................................................................................................. $______ l'2!!) 1. Nurrber of items ...................................................................................................... -----1!!1 C. Aged short security differences- less reserve of ..................................................................................................................... number ofilemi ........................................................................................................... E Commodity fuluresconlracbl and spot commodities- proprietary captal chal!les............................................... $ I!!!! F. Other deductions and/a chaiges.................................................................................................................................... $ (!!!I G. Deductions for accounts carried 111der Rules 15c3-1(aX6)and (c)(2Xx) .............................................................. $ ~ H. Total deductions and/orcharges (sum of Lines 6A-6G)........................................................................................................................................................... $.__ _ _ _ __ , ~ 7. CAher additions and/or allowable credts 0isl).................................................................................................................................................................................... $ ~ 8. Tentative net capital.................................................................................................................................................................................................................................. $ ~ 9. Market risk exposure- for VaR firms (sumoflines9E, 9F, 9G, and 9H) $ ~ A. Total value at risk (sum of lines 9A1-9A5).................................................................................................................... $______ I!! Value at risk col11)onents $ _______ !3636! 2. CurrencyVaR........................................................................................................ $ ~ 3. Col111lJdities VaR................................................................................................. $_ !!I 4. Equities VaR.......................................................................................................... $ ~ 5. Credit derivatives VaR........................................................................................ $ !3641! B. Diversifie.ation benefit ...... ..................................... $ <-----~ ~ !3643! C. Total divernified VaR (sum of Lines 9A and 98) ............................................................................................................ $ ____ D. M.iltiplication factor ............................................................................................................................................................. $ ----~ E Subtotal (Line 9C multiplied byline9D). ........................................................................................................................ $ _____ F. Deduction for specific risk. unless included in Lines 9A-9E above .. $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00107 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM !3655! !3646! 26OCN1 EN26OC21.028</GPH> 1. Fixed income VaR................................................................................................ Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices 59219 COMPUTATION OF NET CAPITAL (FILER AUTHORIZED TO USE MODELS) FOCUS Report Part II Items on this page lo be reported by a: Stand-Alone Broker-Dealer {Aulhorized lo use models) Stand-Alone SBSD (Authorized lo use models) Broker-Dealer S8SD {Authorized to use models) Broker-Dealer MSBSP (Authorized lo use models) G. Risk deduction using scenari:l analysis ($1Jl'loflines 9G1-9G5).............................................................................. $ 1. Fixed income........................................................................................................ $______ f!!l 2. Currency................................................................................................................. $ ~ 3. Comnodities........................................................................................................... $ ~ 4. Equities.................................................................................................................... $ ~ 5. Credtt derivatives.................................................................................................. $ ~ H. Residual marketable securities (see Rule 15c3-1(cX2Xvi) or 18a-1(c}(1Xvii}. as applcable).............................. ---~ $ $ _ _ _ _ __ 10. Market risk exposure-for Basel 2.5 firms (sum of lines 10E, 10H, 101, 10J, HK, 10L, 10M 10N, and 100) $ ______ ~ A. Totalvalueatrisk(sumoflines 10A1-10A5)................................................................................................................ Value at risk components 1. Fixed income VaR................................................................................................ $ _ _ _ _ _ _ l1]!?! 2. CUrrencyVaR........................................................................................................ $ 3. Commdities VaR ................................................................................................. ~ $ _ _ _ _ _ J1276~ 4. Equities VaR .......................................................................................................... $____ 5. Credit derivatives VaR ........................................................................................ $ .............................. f!m] ··-.. ~ B. Diversification benefit......................................................................................................................................................... . $L______J ~ C. Total diversified VaR (sum of line 10A and 108) ................................................................................................. $ D. M..tltiplication factor ............................................................................................................................................................ . $ _____ ~ E. Subtotal (Line 10C is multiplied by Line 100) ................................................................................................................ F. Total slressed VaR (SVaR) .................................................................................................................................................. $ ____ -- . ---------- ~ $____ ~ G. Multiplication factor .............................................................................................................................................................. . $____ ~ H. Subtotal (line 10F rrultipliedby line 10G) ..................................................................................................................... $ ---~ I. Incremental risk charge ORC) ........................................................................................................................................... $L _________ _J ~ J. Corrµrehensive risk measure {CRM)............................................................................................................................... . $ ---~ K Specific risk - standard specific market risk (SSMl) .................................................................................................... $____ L. Specific risk- securitization (SFA/SSFA) ........................................................................................................................ $ ---~ Ill!] ---~ M Alternative melhodfcrequitiesunderAppendixAto Rule 15c3-1or Rule 1aa.. 1a,asapplicable....................... $ _ _ _ _ _ _ !1277~ N. Residual positions............................................................................................................................................................... $ ~ 0. Other......................................................................................................................................................................................... $ ~ 11. Credit risk exposure for certain counlerparties (see Appendx Em Rule 15c3-1 orRule 18a-1 (e)(2), as applicable) A. Counterpartyexposurecharge(addlnes11A1 and 11A2)...................................................................................................................................................... 1. Net replacement value default, bankrupb:y............................................................................................................. $ _ _ _ _ __ $- - - - - - ~ 2. Credit equivalent armunt exposure to the counterpartyrrultiplied by lhe credit-risk weiglt of the counterpartyrrultiplied by8%.................................................................................................................................. $- - - - - - ~ B. Concentration charge......................................................................................................................................................................................................................... 1. Creditriskweights20% .............................................................................................................. $ $ _ _ _ __ -----~ 2. Credit risk weight>20%and S50% ............................................................................................ $ ______ ~ 3. Credit risk weight>50%............................................................................................................................................... $ ~ $______ ~ C. Portfolio concentration charge 12. Total credit risk exposure (add Lines11A, 118 and 11C) $ ~ 13. Net capital(for VaR firms, subtract Lines 9 and 12 fromline8) (for8asel 2.5 fiITT1S. subtract lines 10 and 12 li-Q'Tlline 8)......................................... $ ~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00108 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.029</GPH> Name ofFiim: As of. 59220 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices COMPUTATION OF NET CAPITAL (FILER NOT AUTHORIZED TO USE MODELS) FOCUS Report Part II Hems on this page to be reported by a: Stand•Alone Broker•Dealer (Not Authorized to use models) Stand•Alone SBSD (Not Authorized to use models) Broker-Dealer SBSD (Not Authorized lo use models) Broker-Dealer MSBSP (Nol Authorized lo use models) Co~utation of Net Capital 1. Total ownership eqlityfi'omltem1800.................................................................................................................................................................................... 2. Deduct ownership e(Jli(ynolallowablefurnetcaptal................................................................................................................................................................... $ $ ------E!!!J I!!!!!!! 3. Totalownersl!ip eqlityqualifiedfornetcapital............................................................................................................................................................................... S ~ 4. Add: A. Liabilities subordnallld to clams of creditors all-ble in coll1)ulation of netcaplal..................................................................................................... B. 01,er (deductions) or alowable crecils (lisfj........................................................................................................................................................................... 5. Total capital and allowable suborcinud liabiities..................................................................................................................................................................... 6. Deductions and/or chirges A. Total nonallowable assasfrom51aternmtoffinancial Condition........................................................................ 1. Additional chargesfor customers' 111d non-customers' securityaccouns......................................................... $ ~ ------!! $ $ ______ ~ 2. Additional chargesfor customers' 111d non-customers' conmodi(yaccounls................................................... $ ~ 3. Additional charges for customers' 111d non-customers' security-based swap accolllts................................. $ I!!!] 4. Additional chargesfor customers' and non-customers' swapaccourb............................................................. $------~ B. Aged fail-to .. deliver ............................................................................................................................................................ $ ------~ $ ~ $ ______ !Z9 1. Nunilerofitems....................................................................................................... - - - - - - ~ C. Aged shortsecuritydilferances-lessreseNeof.........................................................$_ _ _ _ _ _ ~ $ ______ ~ 1. Nunilerofitems............................................................................................................ - - - - - - ~ D. Secured demand note deficiency.................................................................................................................................. $ ______ ~ E Conmodity futures conhcts and spotconmodities- proprietary caplal cha111es............................................... $ ~ F. Other deductions anct'or chirges..................................................................................................................................... $ ps1oj $ ps1sj H. Total deductions and/or charges $ ~-----~~ 7. Olher additions and/or allowable credts.............................................................................................................................................................................................. S ~ 8. Tentative netcapital(netcapitalbeforehaircits) ........................................................... _..................... _........................................................................................... $ G. Deductions fur account& carried under Rule 15c3-1(aX6) and (c)(2)(x) .................................................................. r:!!!I ~ B. Subordinated securities borrowings............................................................................................................................. $ ______ $ ______ C. Trading and irrtesinentsecurities 1. Bankers' acceptances, certificates of deposi~ commercial paper, andmoneymarketinstuments............ .. $ _____ l!!!!!J 2. U.S. and Canadiai g011Bmmmtobli;Jations.............................................................................................................. $ ____ ~ 3. State and municipal governmentobligalions.......................................................................................................... $ _____ ~ 4. Corporate obligations .................................................................................................................................................... 5. Stocks and warrants .................................................................................................................................................. $ ~ $ ____ ~ 6. Options ............................................................................................................................................................................... $ _____ 7. Arbitrage .......................................................................................................................................................................... $ _____ p7301 p7321 8. Risk•based haircuts coll1)uted und11r 17CFR 240.15c3•1 aor 17 CFR 240.18a-1a ........................................ $ _____ ~ 9. Olhar securities ................................................................................................................................................................ $ ____ ~ D. Undue concentra:ion ........................................................................................................................................................... $ ~ - - - ~ 10. Haircuts on security-bared swaps ......................................................................................................................................... $ ~ $ _____ ~ 11. Haircuts on swaps..................................................................................................................................................................... $ ------~ )............................................. E Olher (list _________. __________ . .. 12. Total haircuts(sumoflines 9A-9E, 10, and 11)............................................................................................................................................................................... $ ------~ 13. Net capital (line 8 rrinus Line 12)........................................................................................................................................................................................................ $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00109 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 ~ EN26OC21.030</GPH> 9. Haircuts on securities other lhai security-based sw~s A. Contractual securities cormitments............................................................................................................................... Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II 59221 COMPUTATION OF MINIMUM REGULATORY CAPITAL REQUIREMENTS Items on this page to be reported by a: Stand-Alone Broker-Dealer Broker-Dealer SBSD (other than OTC Derivatives Dealer) Broker-Dealer MSBSP Calculation of Excess Tentatiw Net Capital (If Applicable) 1. Tentative net capital .................................................................................................................................................................................................................... $ ~ 2. Minirrum tentative net capital requirement.. ........................................................................................................................................................................... $ [!!! 3. Excess tentative net capital (difference bellllleenLines 1 and 2)....................................................................................................................................... $ _ _ _ _ _ _ _ _ _ (I!! ~ 4. Tentative net capital in excess of120%ofminirrumtentative net capital requi'emenl repoted on Line 2........................................................... $ Calculation of Mininum Net Capital Requirement 5. Ratio rrinimum net capital requirement A. 62/, % ofrotal aggregate indebtedness (Line ltem3840) ............................................................................................................................................... $ - - - - - - - - - ~ B. 2¾ofaggregatedebititems anhown in the Fo1TTIUla for Reserve Requrements pursuantto Rule 15c3-3 .................................................... $ . . i. Mnimum CFTC netcapital requirement(ifapplicable) ................................................................ $ . .. . ... -· ............ ..... rn!!J -------~ C. Percentage of risk margin amount corrputed under17 CFR 240.15c3-1(a)(7)(i) or (a)(10) .............................................................................. $ -------!!!! D. For broker-dealers engaged in reverse repurchase agreements, 10%ofthe amounts in 17 CFR 240.15c3-1 (a)(9)0Hii) ........................... $ _ _ _ _ _ _ _ _ _ [!! E. Mnimum ratio requirement (sum of lines SA, 5B, SC, and/or 5D, as SRJlicable) ................................................................................................... $ -------~ 6. Fixed-dollarninimumnetcapitalrequirement ...................................................................................................................................................................... $ -------~ 7. Minirrum netcapital requirement(greateroflines 5Eand 6) ........................................................................................................................................... $ -------~ 8. Excess net capital (Item 3750 rrinus Item 3760) .................................................................................................................................................................. $ -------~ 9. Net capital and tentative netcaplal in relation to early warning thresholds A. Net capttal in excess of 120% ciminirrum net capital requrementreported on Line 7 .......................................................................................... $ ---~ B. Net capital in excess of 5%of combined aggregate debt items as shown in the FolTTIUla for Reserve Requirements pursuantto Rule 15c3-3 ........................................................................................................... -----~ Computation of Aggregate Indebtedness (If Applicable) 10. Total aggregate indebtedness liabiities from Statement of Financial Condition (ltem123Di ................................................................................... $ -----!!!! 11.Add: A. Drafts for immediate credit.. ..................................................................................................................... $ ------~ B. Market value of securities borrowed for which no equivalent value is paid or credited .............. $ ____________ ~ ~ C. Other unrecorded amounts (list) ............................................................................................................. $ D. Total additions (sumofLine Items 3800, 3810, and3820) .......................................................................................................................................... $ ~ 12. Deduct:Adjustmentbased on deposits in Special Reserve Bank Accounts (see Rule 15c3-1(c)(1)(vii)J ............................................................... $ ------~ 13. Total aggregate indebtedness (sumofLine ltems3790 and 3830) ................................................................................................................................ $ -------~ 14. Percentage of aggregate indel:tednessto net capital (ltem3840divided byltem3750) ........................................................................................... % · - - - - - - - - - 1 ~ 15. Percentage of aggregate indel:tedness to net capital al!er anticipated capitalwithdrawals (Item 3840 divided by Item 3750 less ltem4880) ............................................................................................................................................................................................................................ %._ _ _ _ _ _ _ _ _ ~ Calculation of Other Ratios 16. Percentage ofnetcapitaltx, aggregate debits (ltem3750divided byltem4470) ......................................................................................................... % _ _ _ _ _ _ _ _ _ ~ 17. Percentage of net capita\ wanticipated capital withdrawals, to aggregate debits (ltem3750 less Item 4880, divided by ltem4470). ..................... $ _ _ _ _ _ _ _ _ ~ 18. Percentage of debt to delt-to-equitytotal, computed in accordance with Rule 15c3-1(d) ....................................................................................... %_ _ _ _ _ _ _ _ _ ~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00110 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 ---~ EN26OC21.031</GPH> 19. Options deductions/net capital ratio (1000%tesij total deductions exclusive of liquidating equly under Rule 15c3-1 (a)(6) and (c)(2)(x) divided by net capital .......................................................................................................................................................................... $ 59222 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II COMPUTATION OF MINIMUM REGULATORY CAPITAL REQUIREMENTS Items on this page to be reported by a: Stand-Alone SBSD SBSD registered as an OTC Derivatives Dealer Calculation of Excess Tentative Net Capital (If Applicable) 1. Tentative net capital .................................................................................................................................................................................................................... $ ______________ ~ 2. Fixed-dollarrrinimumtentative net capital requirement ...................................................................................................................................................... $ ~ 3. Excess tentative net capital (difference between Lines 1and 2)....................................................................................................................................... $ ~ 4. Tentative net capital in excessof120"/4ofminimumtentative net capital requirements reported on Line 2............................................................ $ (!!!I Calculation of Mininum Net Capital Requirement 5. Ratio rrinimum net capital requirement- Percertageofrisk margin irnountcomputed under 17 CFR 240.18a-1(a)(1) ................................... $ !!!!I ~ 8. Excess net capital (Item 3750 rrinus Item 3760) .................................................................................................................................................................. $ ~ 9. Net capital in excess of 120%ofminimum net capital requirement reported on Line 7 (Line Item 3750- [Line ltem3760 x 120%D .............. $ ~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00111 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.032</GPH> 6. Fixed-dollarrrinimumnetcapital requirement ...................................................................................................................................................................... $_._____ - - - - - - - ~ 7. Minimum net capital requirement(greateroflines 5 and6) .............................................................................................................................................. $ Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II 59223 COMPUTATION OF TANGIBLE NET WORTH Items on this page to be reported by a: Stand-Alone MSBSP 2. Goodwill and other intangible assets ....................................................................................................................................................................................... $ [l]m) 3. Tangible net worth (Line 1 minus Line 2) ............................................................................................................................................................................... $ ~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00112 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.033</GPH> 1. Totalownershipeqlity(fromltem1800) ................................................................................................................................................................................ $ _ _ _ _ _ _ _ _ ~ 59224 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II REGULATORY CAPITAL (INFORMATION AS REPORTED ON FFIEC FORM031- SCHEDULE RC-R) Items on !his page to be reported by a: Cerlain Foreign Stand-Alone SBSDs Cerlain Foreign Stand-Alone MSBSPs Capital Totals ---------1111 2. Tier 1 capital.................................................................................................................................................................................................................................. $.. llllll 3. Tier 2 capital.................................................................................................................................................................................................................................. $ B 1. Total bank equity capital (li"om FFIEC Form 031 's Schedule RC, Line 27A) .................................................................................................................. $ 4. Tier 3 capital allocated for market risk ................................................................................................................................................................................... $ [!!! 5. Total risk-based capital .............................................................................................................................................................................................................. $ 6. Total risk-weighted assets ......................................................................................................................................................................................................... $ 1111 liilll 7. Total assets for the leverage ratio ............................................................................................................................................................................................ $ 11111 £2!!!!m!.1l 8. Tier 1 leverage ratio............................................................................................ $ 9. Tier 1 risk based cap~al ratio............................................................................ $ 10.Totalrisk-basedcapi:alratio........................................................................... $_ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00113 Fmt 4703 ................ Sfmt 4725 ~ $ _ _ __ E:\FR\FM\26OCN1.SGM 11111ml ------ $ -- 26OCN1 EN26OC21.034</GPH> ----- Capita I Ratios (Colum, Bisto be corrpleted by all banks. Colum, Ais to be corrpleted by banks with financial subsidiuies.) 59225 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices STATEMENT OF INCOME (LOSS) OR STATEMENT OF COMPREHENSIVE INCOME. AS APPLICABLE FOCUS Report Part II Items on lhis page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP For the period ("""1DDYYfrom Nurrber ofrronths included in this statement REVENUE 1. Comrissions A. Cormissions on transactions in listed equity securities executed on an exchange.......................................................................................................... $ B. Cormissions on transaction sin exchange listed equity securiies executed over-the-counter ....................................................................................... $ C. Cormissions on listed option transactions ................................................................................................................................................................................. $ D. All other securities commissions .................................................................................................................................................................................................... $ E. Total securities comrissions .......................................................................................................................................................................................................... $ ______ 2. Gains or losses on fim, securities trading accounts A. From market making in over-the-counter equity se cur~ies ...... .. ........... ... .... ..... .... .. ... .. .... ... .. .. ....... ............. ... .... .. ... .. .. ..... .. .... ..... .. ......... ........... ... .... .. ... .. .... ... .. $ 1. Includes gains or losses on OTC market making in exchange-lisllld equity securities ................................................ $_ _ _ _ _ ~ ----r!m B. From trading in debt se cu riti es ....................................................................................................................................................................................................... $ C. From market making in options on a mi:ional securities exchange ....................................................................................................................................... $ _ _ _ __ D. From all other trading ....................................................................................................................................................................................................................... $ E. Total gains or losses ........................................................................................................................................................................................................................ $ 3. 4. Gains or lossesfromderivatives lrading ........................................................................................................................................................................................... $ _ _ _ __ Gains or losses on fim, securities inveslment accounts A. Includes realized gains or losses .................................................................................................................................................. $_ _ _ _ _ - 1111 B. Includes unrealized gains or losses.............................................................................................................................................. $ C. Total realized and unrealized gains or losses............................................................................................................................................................................. $ 5. Gains or losses from underwriting and selling groups.................................................................................................................................................................... $ A. Includes underwriting income &om corporate equity securities .............................................................................................. $_ _ _ _ _ IIJ B 6. Margin interest ........................................................................................................................................................................................................................................ $ 7. Revenue &om sale of inve strnent company shares ........................................................................................................................................................................ $ 8. Fees for account supervision, invesment advisory and admnistrative selvices ...................................................................................................................... $ 9. Revenue from research services ........................................................................................................................................................................................................ $ __________ ________ Ill 12. Other revenue ......................................................................................................................................................................................................................................... $ 13. Total revenue .......................................................................................................................................................................................................................................... $ EXPENSES 14. Registered representatives' compensation ...................................................................................................................................................................................... $ 15. Clerical and adrrinistrative employees· expenses .......................................................................................................................................................................... $ 16. Salaries and other employment coslll for general partners. and voting stockholderofticers ................................................................................................. $ A. Includes interest credited to general and limed partners• captal accounlll ........................................................................ $_ _ _ _ _ [!]ll 17. Floor brokerage paid to ce~ain brokers (see definitioni ................................................................................................................................................................ $ 18. Comrissions and clearance paid to all other brokers (see definition)........................................................................................................................................ $ 1111\\1 111 10. Gains or losses on commodities .......................................................................................................................................................................................................... $ 11. Other revenue related to securities business ................................................................................................................................................................................... $ 1111 ____ lllil 1111 1111 -------- 19. Clearance paidto non-brokers (see defin~on) ................................................................................................................................................................................ $ 20. Communications ...................................................................................................................................................................................................................................... $ ..................................... $ 21. Occupancy and equipment costs ..................... .. 22. Prorrolional costs... . .. .............. $ ............. $ A. Includes interest on accounts subject to subordination agreements ..... ···················•$ _ _ _ m 24. Losses in error accountandbaddebts ................................................................................................................................................................................... $ 25. Data processing costs (Including service bureau seivice charges)...... ....................................................... ................... $ 26. Non·recurringcharges .................. $ VerDate Sep<11>2014 22:39 Oct 25, 2021 ................................. ............................................... Jkt 256001 PO 00000 Frm 00114 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 ---1!.!D ---lm!l ~ EN26OC21.035</GPH> 23. lnterestexpense ..................... 59226 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices STATEMENT OF INCOME (LOSS) OR STATEMENT OF COMPREHENSIVE INCOME, AS APPLICABLE FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP 27. Regula1x>ryfees andexpenses ............................................................................................................................................................................................................ $ 28. Other expenses ...................................................................................................................................................................................................................................... $ 29. Total expenses ....................................................................................................................................................................................................................................... $ NET INCOME/COMPREHENSI\IE INCOME 30. Income or loss before federal income taxes and items below (Line 13 less Line 29) .............................................................................................................. $ -------~ 31. Provision for federal income taxes (for parent only) ....................................................................................................................................................................... $ _________ ~ 32. Equity in earnings or losses of unconsolidated subsidiaries not included above ..................................................................................................................... $ ___ ~ A. After federal income taxes of.... ...................................................................................................................................................... $_ _ _ _ _ ~ 33. Net income or loss after federal income taxes ................................................................................................................................................................................. $ _ _ _ __ 34. Other corrprehensive income (loss} .................................................................................................................................................................................................. $ A. After federal incorre taxes of.... ...................................................................................................................................................... $_ _ _ _ _ ~ 35. Comprehensive income (loss) ...................................................................................................................................................................................... ............. $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00115 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.036</GPH> MONTHLY INCOME 36. Net income (current month only) before corrprehensive income and provision for federal income taxes .......................................................................... $ 59227 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices CAPITAL WITHDRAWALS FOCUS Report Part II Items on 1his page lo be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Broker-Dealer MSBSP OWNERSHIP EQUITY AND SUBORDINATED LIABILmES MA TURING OR PROPOSED TO BE WITHDRAWN WITHIN THE NEXT SIX MONTHS AND ACCRUALS, WHICH HA VE NOT BEEN DEDUCTED IN THE COM PUTA TlON OF NET CAPITAL Type of Proposed Withdrawal or Accrual (See below fur code to enter) ---• ----- Name of lender or Contributor Arrou nt to be Wilhdrawn (cHh a1T11unt and/or Net Capi1al Value of Securities) Insider or Oulsider? (In or Out) (M.tt>DJYYJ _ -------------------------------______ ---------_ _ $ ------------------------_ _ _ _ -_ I ll - - - - - - - ___ $ ____ _ _________ $ - - - - - - - - - - - $ _____ _ Tote!: $ _ _ _ _ _ _ - Renew (Yes or No) ------------- - - - - - - - - - - $ _____ _ --------------------------- - - ---------- $ ------------------ - to -- ------------ --- ---- ---------- _________ $ ____ _ - - - - - - ___ $ Expect Withdrawal or Maturity Dale ------------ •To agrse with the total on Recap (Lile ltllm4880) Detailed listing mustincludethe total of items rraturing during the six1T11nth periodfullowng the report date, rega-cless of whether or not the capital contribution is expected to be rene11111d. This section must also include proposed capilal wilhd"awlls scheclJled withi, the sixlTllnth periodfoll011ingthe report date includilg the proposed redenl)lion cl stock and payments ofliabiliies secured byfixedassels (which are considered alowable assels in the capital ~utation, which col.id be required by the lender on demand or in less than six months. CODE: 3. 4. VerDate Sep<11>2014 DESCRIPTIONS: Equity capital Subordinated liabiilies Accruals Assels not readily convertible irto cash 1. 2. 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00116 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.037</GPH> Instructions: 59228 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices CAPITAL IMTHDRAWALS RECAP FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Broker-Dealer MSBSP OWNERSHIP EQUITY AND SUBORDINATED LIABILITIES MATURING OR PROPOSED TO BE WITHDRAWN WITHIN THE NEXT SIX MONTHS AND ACCRUALS, WHICH HAVE NDTBEEN DEDUCTED IN THE COMPUTATION OF NET CAPITAL 1. Equity capital A. Partnership and lirrited Ii ab illy company capital 1. General partneis ............................................................................................................................................................... $ _ _ _ _ _ 1111 1111111 2. Lirrited partners and lirrited liabilty company members.......................................................................................... $ 3. Undis1ributed prdits ................................................................................................................................................. $ 4. Other (describe beloo) .................................................................................................................................................... $ 1\111 11/11 11111 5. Sole proprietorstip ........................................................................................................................................................... $ B. Corporation capital 1. Common stock ................................................................................................................................................................... $ _ _ _ 2. Preferred stock .................................................................................................................................................................. $ 11111 11111 11111 3. Retained earnngs (dividends and other) .................................................................................................................... $ 4. Other (describe beloo) .................................................................................................................................................... $ 2. Subordinated liabilties A. Secured demand notes ........................................................................................................................................................... $ _ _ _ _ _ B. Cash subordinates .................................................................................................................................................................... $ - B C. Debenl!Jres................................................................................................................................................................................. D. Other (describe be loo) ............................................................................................................................................................ 3. Other anticipated withdrawals A. Bonuses....................................................................................................................................................................................... B. Voluntary con1ributions to penson or profitshari~ plans ............................................................................................... 1111 $ $ 111111 IIIJ $ _____ $ - 111111 C. Other (describe be loo) ............................................................................................................................................................ $ Total (sum of Lines 1-3): $ _ _ _ _ _ _ 4. Description of Other STATEMENT OF CHANGES IN OWNERSHIP EQUITY (SOLE PROPRIETORSHIP, PARTNERSHIP, LLC OR CORPORATION) ------1111 ............. 1111 Ill$ 1111 C. Deductions (includes nor;conforrring capital of................................................................................................................. $ _ _ _ _ _ g $ Balance, end ofperiod(fromline Item 1800) .................................................................................................................................................................................. $ 1111 1. Balance,beginningofpa-iod ............................................................................................................................................................................................................... $ A. Net income (loss) or comprehensive income (loss), as applicable ........................................................................................................................................ $ B. Additions (includes non-confollTling capial of.................................................................................................................... $ _ _ _ _ _ 2. STATEMENT OF CHANGES IN LIABILITIES SUBORDINATED TO CLAIMS OF CREDITORS Balance, beginning of period ............................................................................................................................................................................................................ $ )m!\I B. Decreases.................................................................................................................................................................................................................. 4. Balance, end ofperiod(fromltem3520) ......................................................................................................................................................................................... $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00117 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM ~ m A. Increases 26OCN1 -~-~ EN26OC21.038</GPH> 3. 59229 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FINANCIAL AND OPERATIONAL DATA FOCUS Report Part II Items on this page lo be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSO Broker-Dealer SBSD Broker-Dealer MSBSP ~ 1. t.tnth end total number ofslllck record breaks A. Breaks long unresolwd for rmre than three business days..·-············-··········..···-·-··················-······················· .. ··· $ _______ I!!] B. Breaks short unresolved for more than seven business days after discovery........................ _...........·-···........... $ I!! 2. Is the firm in colT1)1iance with Rule 17a-13 er 18a-9, as appicabla, regarding periodic court and verification of securities positions and locati111s at least once in each calendw quil'lel? (Check one) .......................................... t!!!I I!!! Yes □~ No D ~ 3. Personnel en,,loyed atendofreporting period A. Income producing pers111nel...................................................................................................................................................................................................... t!!!I B. Non-income producing persomel (al othe~............................................................ _............................................................................................................... t!!I t!!!!I C. Total (sum of lines 3.A-38) ............................................................................................................................_.......................................................................... 4. Actual number of tickets executed durng the reporting period ...................................................................................................................................................... ~ 5. Number of corrected custorrar confirmations sent after setllerrant date ............................................................................................................................... -... l!!I IY@rket Y@lw, Ledger Po::ewal No oflterm 6. Failed to deliver5 business days or lcnger(21 business days or l111ger in the case of municipal securities)...................................................................... .. - - - - - ~ $ _____ ~ $ _ _ _ __ ~ 7. Failed to receive 5 business days or longer (21 busness days orlonger in the case of municipal securities) .............................................................. ·-········ - - - - - ~ $ _____ ~ $ _ _ _ __ ~ 8. Security (including security-based swap) concentrations A. Proprietary positions for which 11,ere is an undue concentralion........................................................................................................................................ B. Custom,rs' and security-based swap customers' accourts under Rules 15c3-3 er 18a-4; as applcabla................................................................ $ _ _ _ _ _ __ ~ $ _ _ _ _ _ __ ~ 10. Maxirlllm haircuts on underwriting cormilrnents during the reporting period....................................................................................................................... $ _ _ _ _ _ __ ~ $ _ _ _ _ _ __ ~ 11. Planned capital expenditu111s for business expansion during nexhixmonths........................................................................................................................ $ _ _ _ _ _ __ ~ 12.Liabilities of other individuals or erg111izalions guaran1Bed byrespondert............................................................................................................................ -... $ _ _ _ _ _ __ 13.Lease and rentals payable within one year.................................................................................................................................................................................. $ _ _ _ _ _ __ ~ 9. Total of personal capital boll'owilgs due wittin six rmnths .........................-......................................................................................................................... _... ~ 14. Aggrega1B lease and rental cormilrnents payable for ertire term of the lease Gross.............................................................................................................................................................................................................................................. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00118 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 $ _ _ _ _ _ __ ~ $ _ _ _ _ __ ~ EN26OC21.039</GPH> A. B. Net................................................................................................................................................................................................................................................. 59230 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FINANCIAL AND OPERATIONAL DATA FOCUS Report Part II Items on lhis page lo be reporied by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Broker-Dealer MSBSP Operational Deductions from Capital-Note A IV Deductions in Co!!J!uting Net Capital (OrritPennies) Ill Debits (Short Value} (Orrit 000's) No.ofltems Credits !Long Value} (Orrit 000's) 1. Money suspense and bala,cing diferences ........................................................... . ~$ 2!$ !!!!)$ ~ 2. Security euspense and diflarences wit, related money balances ....................... L_ _ _ __ ~$ ~$ ~$ ~$ eJ!$ ~$ !! 3. Market value of short and long seci.ritysuspense and cifferences without related money balances (other than reported in Lile 4, belo,v) ............ . ~$ m!IS ~$ ~ 4. Market value of security record breaks...................................................................... ~$ ~$ ~$ !!!!! ~$ ~$ ~$ ~$ ~$ ~$ !!! B. Deposimries ............................................................................................................. ~$ ~$ ~$ C. Clearing organizations........................................................................................... L_ _ _ __ S_ _ _ __ ~$ ~$ (!!gS !!'!!)$ !m]S ~$ D. ln1er-companyaccounts....................................................................................... . ~$ ~$ ~$ ~ E Bank accounts and loans. ..................................................................................... ~$ ~$ ~$ !!! F. Other.......................................................................................................................... . ~$ ~$ ~$ !!! G. (Offsetting) Lines 5Athrough 5F........................................................................ ![?!!I$( @Dt..__@11 TOTAL (Lines 5A-5G) .................................................................................................. ~$ ~$ 6. Col!TllOdity dilferences.................................................................................................. ~$ ~$ 7. Open 1ransfers and reoigarization account i1erns over 40 days net confirmed or verified ..................................................................................................... Im:!)$ 8. TOTAL (Lines 1-7) ........................................................................................................ ~$ 9. Lines 1-6 resolvedsubseq.ientto report dale ......................................................... . ~$ 10. Aged fails-to deliver.................................................................................................. ~$ -to receive ................................................................................................. . ~· ~$ s_____ ~ 5. Unresolved reconcilngdiflarences wih others A. Corresponderts, broker..dealers, SBSOs, and MSBSPs.................................. L_ _ _ __ s._____ ~$ ms !!!)$ l!!!!)$ ~$ ~$ ms !!]$ rns ~$ ~$ ~ ~ ~ !!?] ~ ~ ~ ~ ~ ~ 11!!] ~ - This section must be coll'l)le1ed as follows: 1. The filers must corrple1e Colurm IV, Lines 1 through8 and 10, reporting deductions from capital as of the repoltda1e whelherresolred subse!J!ently or nct(see instructions relativa b each line iten1. 2. Coklrms I, II and II of lines 1 through Bmust be corll>le1ed only if the total deduction onColurm IV of Line 8 equals or exceeds 25%of excess netcapilal as of the priarronth end reporting dale. All colurms of line 10 reqlire complelioll 3. A response ID Colurms Ithrough IV of Line 9 and the 'Po1enial Operational Charges Not Deduc1ed FromCapita~Note B" are requil8d only if: A. The pararreters c~ed in Nole A-2 exist, and B. The total deduction, line 8, Colurm IV, for the currentrmnlh exceeds the total deductions for thepria rmnth by 50%orrmre. 4. AU colurms and Lines 1 through 10111Jstbe answered if required. If respondent has ncthing to repoll, en1er "O." Other Operational Data (Items 1, 2 and 3 below rewire an answe~ Item 1. Have the accounts enurreraled on Lines 5A through 5F abwe been reconciled with statements received li"om others within35 dir,-s for Lines SA through 5D and 65 days for Liles 5E and 5F prior to the report dale and have all reconciling differences been appropriately coni,rehended in the coni,utation of net capital atlhe report dale? lflhis has not been done in alrespecls, answer No. Yes _ _ _ ~ No _ _ _ ~ Item 2. Do the respondents books relecta concenlrated postion in coll1T1ldities? If yes, reportthe totals ($000 orrilred) in accordance witi the specific instructions. If No, answer "0' for. A. Firm trading and inveslmenl accounts ............................................................................................................................................................................................ $ --~ B. Custorrers' and non-custorrers' and other accourb ................................................................................................................................................................... Item 3. Does respondent have any plamed operational changes? (Answer Yes or No based oo specific instructions.) ....................................................... Yes _ _ _ _ ~ No ~ 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00119 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 ---~ EN26OC21.040</GPH> VerDate Sep<11>2014 $ 59231 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FINANCIAL AND OPERATIONAL DATA FOCUS Report Part II Items on this page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD Broker-Dealer MSBSP Potential Operational Charges Not Deducted from Capital-Note B I No. of Items Ill Debits (Short Value) (Report in Thousands) Credits (Long Value) (Report in Thousands) IV Deductions in Conputing Net Capital (Qrit Pennies) 1. Mmeysuspense and balancing dlferences........................................... _ _ _ _ _ ~ $ _ _ _ __ ~ $ ~$ ~ 2. Security suspense and differences with related money balances...... L _ _ _ ~ $ _ _ _ __ ~ $ S______ ~ $ _ _ __ ~ $ ~$ ~$ ~ ~ 3. Market value of short and long sec1rity suspense and differen:es without re lated money (other than reported in Line 4, below) ............ !!!IS ____ ~ $ ~$ ~ 4. Market value of security record breaks .................................................... - - - - - ~ $ _ _ _ __ ~ $ ~$ ~ A. Correspondenls, broker-dealers, SBSDs, and MSBSPs ................. L _ _ _ ~ $ _ _ _ __ ~ $ S_ _ _ _ _ _ ~ $ _ __ ~$ [!!)$ ~$ ~ ~ B. Depositories............................................................................................. _ _ _ ~ $ _ _ _ __ ~ $ ~$ ~ C. Clearing organizations .......................................................................... L _ _ _ ~ $ _ _ _ __ ~ $ S_ _ _ _ _ _ ~ $ _ _ __ ~ $ ~$ ~$ ~ ~ D. lnter-cornpanyaccounts....................................................................... _ _ _ _ _ ~ $ _ _ _ __ ~ $ ~$ ~ E. Bankaccountsandloans ..................................................................... ---•--!!!J$ _ _ _ __ ~ $ !!!!)$ ~ F. Other .......................................................................................................... - - - - - ~ $ _ _ __ ~$ ~$ ~ G. (Offsetting) Lines 5Athrough 5F ........................................................ _ _ _ _ _ ~ $ ~ - - - ->~< ~ 5. Unresolved reconciingdifferenceswith others TOTAL (Lines 5A-5G).................................................................................. _ _ _ _ _ ~ $ _ _ _ __ ~ $ ~$ ~ ~ ~ 6. Corrrrodity differences ................................................................................ !!!)$ _ __ ~$ l!?!!)$ 7. TOTAL (Lines 1-6)........................................................................................ ~ $ _ __ ~$ ~$ NOTE B - This section must be completed as follows: 1. Lines 1 through 6 and Columns I througi IVrrustbe colll)leted only if: A. The total deductions on line 8, Column IV, of the "Operational Deductions From Capital-Note A" equal or exceed 25%ofexcess net capital as of the prior month end reporting date; and B. The total deduction onl ine 8, Column IV,, of the "Operational Deductions FromCapita~Note A" for the currertmonth exceeds the total deductions for the prior month by 50% or more. If respondert has nothing to report, enter"0." 2. Include only suspense and difference items open at the report date which weie NOT required to be dewcted in the colll)utation of net capital ANDwhichwerenotresolved seven (7) business days subsequent to the repoit date. 3. Include in Column IV only additional deductions not comprehended in the colll)utation of net capital at the report date. 4. Include on Lines 5A through5F unfavorable differences offsetbyfavorable dilfeiences at the reportda if resolution of the fawrableitems resulted in additional dewctions in the computation of net capital subsequert to the report date. 5. Exclude from lines 5A through 5F newreconciling differences disclosed as a resultofreconcilngwith the books ofaccountstatements received subsequertto the report date. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00120 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.041</GPH> 6. Lines 1 through 5 above correspond to similar lines in the "Operational Deductions Fran Capita-Note A" and the same instructions should be followed except as stated in Notes B-1 through B-5 above. 59232 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II COMPUTATION FOR DETERMINATION OF CUSTOMER RESERVE REQUIREMENTS Items on this page to be reported by a: Stand-Alone Broker-Dealer Broker-Dealer SBSD Broker-Dealer MSBSP CREDIT BALANCES 1. Free credit balances and other credit balances in customers' security acco111t8 (see Note A) ........................................................................................................................................................................ $ _ _ _ _ _ _ ~ 2. !lonies borrowed collateralzed by securities carried forlhe accomts of customers (see NoteB) ........ $ ~ 3. !loniespayableagainstcustomers' securtieslo111ed(seeNote C) ............................................................. $ ~ 4. Customers' securities failed to receive(seeNota D)....................................................................................... $ ~ 5. Credit balances in firm accounts which are attributable to principal sales to customers .......................... $ ~ 6. Market value of stock dividends, stock splits and sinilar distributions receivii>le outslanding over 30 calendar dll'fS............................................................................................................................................ $ ~ 7...Market value of short security count differences aver 30 calendar days old ........................................... $ ~ 8. "Market value of short securities andcrecits (not to be ofsetbylongs orby debits) in all suspense acco111ts over30 calendar days ................................................................................ $ ~ 9. Market value of securities which are intransferinexcessof40 calendardays and have notbeen confirmed to be in transfer by the transfer agent or the issuer during the 40 days................................... $ I!!!!) 10.0lher(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ........................ $ ~ 11. TOTAL CRB)ITS (sumoflines 1-10) ..................................................................................................................................................................................... $ _ _ _ _ _ __ DEBIT BALANCES 12. "Debit balances in customers' cash 111dmargin accounts, excludngunsecured accourts and accounts doubllill ofcollection (see Note E) ................................................................................................. $ _ _ _ _ _ _ _ !!!!! 13. Securities borrowed to effectuate short sales by customers and securities bonowed to make delivery on customers' securtiesfailedto delver.......................................................................................... $ _ _ _ _ _ _ _ ~ 14. Failed to deliver of customers' securities notolderthan 30calendar dll'fS................................................ $ f!!!! 15. Margin required and on deposit with the Oplions Clearing Corporation for all option contracts writen or purchased in customer accomts (see Nola F) ............................................................................... $ ~ 16. Margin required and on deposit with a clearing agency regisleredwilh the Cormission under Hction 17A of the Exchange Act (15 U.S.C. 78q-1) or a deritatives clearing orgarization registered with the Commodity Futures Trading Conmission under section 5bofthe CollTllldity Exchange Act (7 U.S.C. 7a-1) related to the followhg types of positions written, pl.l'chased or sold in customer accounts: (1) security futures products and (2)futures cortracls (and options thereon)carried ina securities accountpurauantto anSROportfoliomargiringrule(seeNote G) ......................................... $ _ _ _ _ _ _ _ 17.0lher(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ........................ $ l!!!!J f!!!I 18...Aggregate debititems(sumoflines 12-17}............................................................................................................................................................................... $ _ _ _ _ _ __ 19. "less 3%(for alternative method ony- see RLle 15c3-1(a)(1)(it) (3%x Line ltem4470}............................................................................................... S _ _ _ _ _ __ 20. "'TOTAL DEBITS (Line 18 less Line 19) ..................................................................................................................................................................................... $ _ _ _ _ _ __ RESERVE COMPUTATION 21. Excess of total debits over total crecit8 (Line 20 less Line 11)............................................................................................................................................... $ _ _ _ _ _ __ 22. Excess of total credits over total debits (Line 11 less Line20}............................................................................................................................................. $ ·----- ........................ 23. If co111>ulation is1'!11demonthlyas permitted, enter 105%of excess oftotalcrecit8 overtotaldellits ........................................................................... $ _ _ _ _ _ __ 24. Amount held on deposit in "Reserve Bank Account(s)," inducing$ _ _ _ _ _ _ _ _ ~value of quallied secuities, at end of reporting period ............................................................................................................................................................................................................... S _ _ _ _ _ __ 25. Amount of deposit(orwithdrawal) includng $ _ _ _ _ _ _ _ _ ~value of qualified securities ............................................................. S _ _ _ _ _ __ 26. New amount in Reserve Bank Accounl(s) d\er adcing deposit or subtracting withdrawal inch.dilg $ _ _ _ _ _ _ _ _ ~11alueofqualifiedsecurties .............................................................................................................................................. $ _ _ _ _ _ __ 27. Date ofdepos~(PJM'DDll"I) .............................................................................................................................................................................................................. S _ _ _ _ _ __ FREWENCY OF COMPUTATION 28.Daily - - - - - - ~ W e e k l y - - - - - - ~ Mmthly fffl'1 In 1h e event the net cap ila I requill!ment is cor111uted under the alernative method, this reserve formula rrust be pre pa ll!d in accordance with the requirements of para!Japh (a)(1J(it ofRule 15c3-1. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00121 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.042</GPH> References to notes in this section refer to the notes to 17 CFR 240.15c3-1 a 59233 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices POSSESSION OR CONTROL FOR CUSTOMERS FOCUS Report Part II Items on this page lo be reported by a: Stand-Alone Broker-Dealer Broker-Dealer SBSD Broker-Dealer MSBSP State the rrarketvaluation and nurrberofitems of. 1. Customers' fully paid securities and excess rrargin securities not in the respondent's possession or corirol as orthe report date (for which instructions lo reduce to possession or conlrol had been issued as of the reportdalB) but for whichlhe required action was not taken by respondentwilhinthe ti!llll fi'ames specified under Rule 15c3-3. Notes Aand 8............................................ -....................... $ A. Nurrber of items............................................................................................................................................................................................................. 2. Customers' fully paid securities and excessrrargin securities for wlich instructions to reduce to possession or conhl had net been issued as of tie repotdate, excluding items arisingfi'om"len1)orary lags which resultfi'omnorrral business operations" as pel1Tit1Bd under Rule 15c3-3. Notes B, C and D................................................................................................................................................. $ A. Nurrber of items................................................................................................................................................................................................................ -------l!!! ~ -------l!!! ~ 3. The system and procedures l.diizedin corrplying with lhe requirement to rraintainphysical possession or control of customers' fully paid and extess margin securities have been tested andarefunctioringin a rranner adequate lo fulfill the requirelllllnlsofRule 15c3-3.............................................................................................................................. Yes _ _ _ _ _ _ _ ~No _ _ _ _ _ _ _ ~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00122 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.043</GPH> Notes: A- Do not include in Line 1 customers' fully paid and excess 1111rgin securities required by Rule 15c3-3to be in possession or conrol bit for which no action was requred byhe respondent as of the reportdate or required action was taken byrespondenlwilhin the tine fi'ames specified under Rule 15c3-3. B -State separately in response to Lines 1 and2 whetherlhe securiies reported in response thereloweresubsequenffyreduced to possession or conlrd by Iha respondent C- Be sure to include in Line 2 orlyilems notarisingfrom'temporary lags which resullfi'omnom,al business opntions' as pemitted under Rue 15c3-3. D Line 2 rrust be responded lo only will a report which is filed as of the date selected for the broker's or dealer's amual audiloffinancialstate!llllnls, 'M!ether ornol such daB is the end of a calendar qua lier. The response to Line 2 shoud be filed within 60 calendar days after such da!B, ralherlhan wilhthe remainder of this report This iriormation rray be raquired on a more hquent basis by lhe Cormission or the designatedeKarrini111 a!Ahorily in accordance with Rule 17a-5(a)(2)(iv). 59234 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II COMPUTATION FOR DETERMINATION OF PAB REQUIREMENTS Items on 1his page to be reported by a: Stand-Alone Broker-Dealer Broker-Dealer SBSD Broker-Dealer MSBSP CREDIT BALANCES 1. Free credit balances and olher cred~ balances in PAB security accounts (see Note A) ............................. $ _ _ _ _ _ __ ~ 2. Monies borrowed collateralizedbysecurities carried for the accounts of PAB(see Note B) ...................... $ _ _ _ _ _ __ l[illl 3. Monies payable againstPABsecurities loaned(seeNote CJ ....................................................................... $ _ _ _ _ __ 4. PAB securities failed ID receive(see Note D) ....................................................................................................... $ _ _ _ _ _ __ ~ ~ 5. Creditbalancesin firmaccountswhichare attribulableto principal sales to PAB ........................................ $ _ _ _ _ _ __ [fill 6. Market value of stock dividends, stock splits andsinilar distributions receivable outstanding over 30 calendar days ........................................................................................................................ $ 7. *'Market value ofshortsecuritycountdifferences over30calendar days old .............................................. $ _ _ _ _ _ __ 8. *'Market value of short securities and credits (not to be offset by longs orby debits) in all suspense accounts over30 calendar days .......................................................................................................... $ ![ill! 9. Market value of securities which are in transfer in excess of40 calendar days and have notbeen confirmed to be in transfer by the transfer agentorthe issuer during the 40days......... .. ................. $ _ _ _ _ _ _ _ ~ 10.0ther(List: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___, ........................... $ _ _ _ _ _ ~ 11. TOTAL PAB CREDITS (sum ofLines 1-10) .......................................................................................................................................................................... $ DEBIT BALANCES 12. Debit balances in PAB cash and margin accounts, excludng unsecU"ed accounts and accounts doubtful of collection (see Note E) ......................................................................................................................... $ _ _ _ _ __ 13. Securities borrowed Ill effectuate short sales by PAB and securities bomwedto make delivery on PAB securities failed to deli/er ............................................................................................................................... $ _ _ _ _ _ __ 14. Failed ID deliver of PAB securities not olderthan 30 calendar days ............................................................... $ _ _ _ _ _ __ 15. Margin required and on deposit wilh Options Clearing Corporation for all option contracts written or purchased in PAB accounts (see Note F) .......................................................................................... $ _ _ _ _ _ __ 16. Margin required and on depositwilh a clearing agency registered with lhe Corrrrission under section 17 Aof the Exchange Act (15 U.S.C. 78q-1) or a derilatives clearing organization registered wilh the Commodity Futures Trading Corrrrission under section 5b oflhe Commodity Exchange Act (7 U.S.C. 7a-1) related Ill lhefollowing types of positions written, purchased or sold in PAB accounts: (1) security futures products and (2)futures contracts (and options thereon) carried in a securities accountpursuantto an SRO portfolio margining rule (see Note G) ............................................. $ _ _ _ _ _ __ 17.0!her(List: _ _ _ _ _ _ _ - - - - - - - - - - ~ ........................... $ _ _ _ _ _ Imm ~ ~ 18.TOTALPAB DEBITS (sumoflines12-17) ............................................................................................................................................................................. $ RESERVE COMPUTATION 19. Excess oftolal PAB debits over tolal PAB credits (Line 18 less Line 11) ......................................................................................................................... $ 20. Excess of total PAB credits over IDtal PAB debits (Line 11 less Line 18) ......................................................................................................................... $ 21. Excess debfts in cuslDmer reserve fom11la computation...................................................................................................................................................... $ 22. PAB reserve requirement (Line 20 less Line 21).................................................................................................................................................................... $ 23. Arrountheld on deposit in Reserve Bank Account(s) including$ ______ ~vaue ctqualfied securities, at end of reporting period............................................................................................................................................................................................................ $ 24. Arrountofdeposit(orwithdrawal) includng$ ________ ~vaue ofqualfied securities ........................................................................... $ 25. New amount in Reserve Bank Account(s) after addng depositor subtracting withdrawa including$ ~vaue ofquaifiedsecurities ......................................................................................................................................... $ 26. Date ofdeposit(WDD/YY) ............................................................................................................................................................................... . FREQUENCY OF COMPUTATION - - - - - ~ Weekly ------------- ~ MJnthly -----~ See notes regarding PAB Reserve Bank Account Computation (Notes 1-10). In the event the net capilal requirement is computed under the aternative method, this reserve formula must be prepared in accordance with the requirements of paragr~h (a)(1)(ii) ofRule 15c3-1. References to notes in this section refer to the notes to 17 CFR 240.15c3-1 a. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00123 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.044</GPH> 27. Daily Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II 59235 CLAIMING AN EXEMPTION FROM RULE 15c3-3 Items on 1his page to be reported by a: Stand-Alone Broker-Dealer (if claiming an ex emption tom Rule 15c3-3) Broker-Dealer SBSD (ifclaiming an exemption 1rom Rule 15c3-3) Broker-Dealer MSBSP (if claiming an exemption tom Rule 15c3-3) EX EMPTIVE PROVISION UNDER RULE 15c3•3 A. (k)(1)- Lirrited business (mutualfunds and/orvariableannuities only). ................................................................................................ -----~ B. (k)(2)0) - "Special Account for the Exclusive Benelit of Customers" rraintained ................................................................................... -----~ C. (k)(2)(ii)-AII customer transactions cleared throu~ anotl-er broker-dealer on a fully disclosed basis D. VerDate Sep<11>2014 Name of clearing firm _ _ _ _·------------·--------------1ITTf?li.:..;.;~ ---~ (k)(3)- Exerrpted by order of the Comrrission (include copy of letter) .................................................................................................... ---~ 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00124 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.045</GPH> If an exerrption rrom Rule 15c3-3 is claimed, identify below the section upon which such exerrption is based (check allthat apply): 59236 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II COMPUTATION FOR DETERMINATION OF SECURITY-BASED SWAP CUSTOMER RESERVE REQUIREMENTS lblms on 1his page lo be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD CREDIT BALANCES 1. Free credit balances andothercredibalances in the acco~ts carried for security.based Map customera (He Note A)............................................................................................................................ $ 2. Mmies borrowed collaleralizedby securities in accoun:scarriedfor security-based swap customers (see Note 8).............................................................................................................................. $ 3. Mmiespayable aganstsecurfy-based swap customers' securities loaned (see Note C)...................... $ 4. Security-based swap custDmers' securities failed to receive (see Note DJ................................................. $ 5. Credit balances in firm accounts attributable to principal sales to security-based swap customers....... $ 6. Marketvalue of stock dividends, stock splits and sinilar distributions receivable 01.Dtandng over 30 calendar days............................................................................................................................................. $ 7. "'Market value of short securitycountdilfe1&nces over 30 calendar days old........................................... $ 8. "'Market value ofshort ncuritin and credts (not to beoffi.etby longs or by debits) in all iU$11ense accounts over 30 calendar days....................................................................................................................... $ 9. Market value ofsecurities which are in transfer in excess of 40 calendar days and have not been confirmed to be in fransf&r bythe transfer agentorthe issuer during1he 40 days................................. $ 10.Clther(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___, ....................... $ 11111 11. TOTAL CRBJITS (sumoflines 1..10) ................................................................................................................................................................................... .. $ _ _ _ _ _ _ __ DEBIT BALANCES 12. Debit balances in accounls carried for secu-ity-based swap cu81omen, excluding unsecured accounts and accounts doubeful of collection (see Note E)......................................................................... $ 13. Securities borrowed to etrectualll short sales by security-based swap customers and securiies borrowed to make delivery on secuity.based swap customers' securiiesfailedto delver................... $ 14. Failed to deliver o'security.basedswap customers' securitiesnotolderthan 30 calend.- days.......... $ 15. Margin required and on depositwi1h Options Clearing Corporation for all option contracts writbln or purchased in acco~ts earned for securt,-based swap customers (see Note F)................. $ 16. Margin related to securiyfulure products writbm, purchased or soil in accounts carried for secuitybased swap customersrequredandon deposit in a qualified clearirg agencyaccourtata clearing agencyregisteredwiththe Ccmrission undersection 17Aofthe ExchangeAct(15 U.S.C. 78q-1) or a derivative clearng organiza:ion registered with the Commdify Fulures Trading Ccmrission under section 5b cf the ConmodityExchange Act(7 U.S.C. 7a..1) (see Note G)................................... $ 17. Margin related ID deared security-based swap transactions in 11:coum carried for secuity-based swap customers required and on deposit in a qualified deiring agencyaccourtata clearing agency registered with the Cormission pursuartto section 17A of the Exchange Act(15 U.S.C. 78q..1)....... $ 18. Margin relatsd to non-deared security-based swap transactions in accomts carriedfor securfybased swap customers requredandheld in aqualifiedregistered security.based swap deal« account at ano1her security-based swap dealer............................................................................................ $ 19.0ther(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ....................... $ 11111 20...Aggregabl dobitilllms......................................................................................................................................................................................................... $ _ _ _ _ _ _ _ _ ,IIIJ 21. "'TOTAL DEBITS (sumoflines 12-19)........................................................................................................................................................................... $ RESERVE COMPUTATION 22. Excess of total debits over total credits (Line 21 less Line 11)...................................................................................................................................... $ _ _ _ _ _ _ _ _ 23. Excess of total credits over mtal debits (Line 11 less Line21)......................................................................................................................................... $ 24. Am:luntheld on deposit in 'ReserveAccount(s),' inclldng vaue of qualfiedsecurities, atend of reporting peri>d.............................................. $ 1111 11B 25. Am:lunt of deposit(or wi1hdrawal) includng $ - - i e of qualified securities........................................................................ $ 26. New amount in RHerve Account(s) alleraddng deposit or subtracting withdrawal includng $ _ _ _ _ _ gvatue of qualified securities.......................................................................................................................................................... $ ?7.Dateofdeposit(WDDMY) ................................................................................................................................................................................................... $ 11111 Ill) llliJ ,. In the eventlhe net capital requirement is co!Tl)uted under the alernalive me1hod, this reserveforrrula 111Jstbe prepared in accordance with therequirerren1s ofparagr;ph (a)(1)0ij ofRule 15c3-1. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00125 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.046</GPH> References to notes in this section refer to the notes to 17 CFR 240.15c3-3bor 17CFR 24Q 18a-4a, as applicable. 59237 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II POSSESSION OR CONTROL FOR SECURITY-BASED SWAP CUSTOMERS Items on 1his page to be reported by a: Stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD State the market valuation and nurrberofitems of. 1. Security-based swap cuslxlmers' extess securities collateral not in the respondents possession or control as of the report date (for which instructions lo reduce lxl possession or control had been issued as of the report date) but for which the required action was not taken by ~s~:~:~t0~:::::~.~-~:..'.'.~.:.. ~~-~~'.~~~ .. :.~:..~.~-~--~-~~--~.'.~~-~:..~.~l~-~-~~-~•-·a·~-~-~~-~~~-~-l-~:.~~'.~~-~-~~-d-~::::::::::::::::::::::::::::::::::::::::::::::: $ ■ 2. Security-based swap cuslxlmers' extess securities collateral for which instructions to reduce possession or control had not been issued ~s ~u:~;~~~e:~--~~-~8.1..~ul_e ..1_~.3.:.~(~).°.r..~~~-~8.~~---~~-~~~li~~-~l-e_::::::::::::::::::::::::::::::::: :::::::::::::::::::::::::::::::: ::::::::::::::::::::::::::::::::::::::::::::::: $ _ _ _ _ _ _ _ 3. The system and procedures utilized in coni>lying with the requremenllxl maintain physical possession or control of securify-based swap customers' excess securities collateral have been tasted and are functioning in a manneradequate 1D fulfill the requirements ofRule 15c3-3(p)or Rule 18a-4, as applcable ...................................................................... Yes _ _ _ _ _ _ _ lllflo _ _ _ _ _ _ _ ■ g Notes: VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00126 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.047</GPH> A - Do not include in Line 1 securify-based swap customers' excess securities collateral required to be in possession or control blt for which no action was required by the respondent as of the report date or required action was taken by respondentwithinthe requredtime frames. B -State separately in response to Line 1 whether thesecurties reported in response thereto were subsequently reduced to possession or control by the respondent. 59238 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II CLAIMING AN EXEMPTION FROM RllE 18a-4 Items on lhis page lo be reported by a: Stand-Alone SBSD (if claiming an exemption tom Rule 18a-4) SBSD registered as an OTC Derivatives Dealer (if claiming an exemption tom Rule 18a-4) EXEMPTION FROM RULE 18a-4 If an exemption tom Rule 18a-4 is claimed, check lhe box .............................................................................................................. c:J - Name ofFirrn: VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00127 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.048</GPH> Asof. _ _ _ _ _ _ __ 59239 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II COMPUTATION OF CFTC MINIMUM CAATAI.. REQUIREMENTS Items on 1his page lo be reported by: Fulures Commission Merchant NET CAPITAL REQUIRB> A. Risk•based requiranenl i. Almunl of cuslomar risk Mlintenance margin .............•...........•........•.................................... $ _ _ _ _ _ _ _ _ _ I!!] ii. Enter 8%ofline A.i .•...........•...........•........•...................................................................•..................................•. $ _ _ _ _ _ _ _ __ iii. Amount of non•customar risk Mlintenance margin ...................................................................... $ _ _ _ _ _ _ _ _ _ ~ f!!! v. Amount of uncleared swap margin ...................................................................................................................... $ _ _ _ _ _ _ _ _ _ E!!! iv F.nter 8%ofline A.ii ........................................................................................................................................ $ _ _ _ _ _ _ _ _ Iii. If the FCMis also registered as a swap dealer, erter 2%ofline A.v ......................................................... $ ~ \Iii. Enterthe sumoflinesA.ii,A.iv, and A.Ii ......................................................................................................... $ ~ B. Mini1111m dollar amountreqlirement.. ..................................................................................................................... $ ~ C. Other NFA requiremant. ............................................................................................................................................ $ ~ D. Minirum CFTC net capital requiremant Enter the greatesloflinesA.v, B, or C ..................................................................................................................................................................................... $ _ _ _ _ _ _ _ _ _ Note: (!!!I If amount on Line Dis grealllr flan the ninirumnetcapital requi111mantconputed on ltem3760, lhen enter this grea1Bramount on 11Bm3760. The grealBr of the amourt required by lhe SEC or CFTC is the mininum net capital reqlirement CFTC 1mly warning level- ermr the greitnt of 110%ofline A.v. or 150%ofline Bor 150"/4ofline Cor $375,000 ................................................... $ _ _ _ _ _ _ _ _ _ l!!J NameofFilITT _ _ _ _ _ _ _ _ _ _ _ __ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00128 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.049</GPH> Asof. _ _ _ _ _ _ _ _ _ _ _ _ _ __ 59240 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II STATEMENT OF SEGREGATION REQUREMENTSANDFUNDSIN SEGREGATION FOR CUSTOMERS lRADING ON U.S. COMMODITY EXCHANGES Items on 1his page to be reported by a: Futures Commission Merchant SEGREGATION REQUIREMENTS 1. Netledger balance A. Cash............................................................................................................................................................................................................................. $ m!!!!I R Securities (atrnarket) ................................................................................................................................................................................................ S ~ 2. Net unrealized prolit (loss] in openfutures cortraclstraded on a corlractrnarket............................................................................................... S ------~ 3. Exchange traded options A. Add: Market value ofopen option contracts purchased on a contractmarkel................................................................................................. S B. Deduct Marketvalue ofopen option contracts grarted (sold] on a contractrnarket..................................................................................... S (_ _ _ _ _ _ _ _ 4. Netequity(deficit)(lotaloflines1,2and 3)................................................................................................................................................................ 5. Accounts liquidating 1D a deficit and accounts with debit balances-gross amount........................ $ _ _ _ _ _ _ _ _ _ $ )l!ml I!!!!!!! ~ f7ll!7I Less: amount offset by customer owned securities................................................................................ $( ~ 6. Amount required lo be segregated (add Lines4 and5)................................................................................................................................................. S ------~ S ~ FUNDS IN SEGREGATED ACCOUNTS 7. Deposited in segregated funds bank accounts B. Securities representinginvesmenls of customers' funds (at market) ................................................................................................................ s s C. Securities held for particular customers or option cuslomers in fieu of cash (alrrarket)............................................................................. .. $ A. Cash .................................................................................................................................................................................................................................. ~ l!!!!l!I E!!!!!I 8. Margin on deposit with derirative clearing orgarizations ofcon1rac:tmarkels rn:m A. Cash .................................................................................................................................................................................................................................. $ B. Securities representinginvesmnls ofcustomeri funds (at market) ................................................................................................................. C. Securities held for particular customers or option customers in fieu of cash (atrnarket)................................................................................ s s ~ [!!!!I 9. Net settlement trom(m) derivative cleari1t1 orgarizations ofcontractmarkets........................................................................................................ .. $ ~ 10. Exchange traded options A. Value of open long option contracts .......................................................................................................................................................................... $ B. Value of open short op ion contrac1li...................................................................................................................................................................... .. s( EmJ )~ 11. Net equities with other FCMs A. Net liquidating equity .................................................................................................................................................................................................... $ E!!!!l B. Securities representinginvesments of customers' funds (at market) .............................................................................................................. .. s ~ C. Securities held for particularcustomars or option customers in fieu of cash (atrnarket)............................................................................... $ I!!!!!! s [!!!!I 13. Total amount in segregation (add Lines 7 through 12).............................................................................................................................................. .. $ ~ 14. Excess(deficiency) funds in segregalion(subtractline6 trom Line 13) ................................................................................................................. .. s l?:!!!!I 15. Managemanttarget amount for excess funds in segregation ................................................................................................................................... .. $ ~ 16. Excess(deficiency) funds in segregation over (under)managementlargelamourtexcess ............................................................................... .. s ~ 12. Segregated funds on hand(describe; _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00129 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.050</GPH> Name ofFimr _ _ _ _ _ _ _ _ _ _ _ __ As of _ _ _ _ _ _ _ _ _ _ _ _ _ __ Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II 59241 STATEMENT OF CLEARED SWAPS CUSTOMER SEGRE GAllON REQUIREMENTS AND FUNDS IN CLEARED SWAPS CUSTOMER ACCOUNTS UNDER SECTION 4D(F) OFTHE COMMODITY EXCHANGE ACT Items an lhis page ta be reported by: Futures Commission Merchant CLEARS) &WAPS CUSTOI.ER REQUIRB.ENTS 1. Netledger balance A. Cash ............................·-··-·················-···········--···················--·····--······-·····················-································-··-·······················································-··········· $ ~ B. Securities (atrmrket) ···-································-·····················-·············-·····················-································-··-···································································· $ - - - - ~ 2. Net unrealized profit Ooss) in open cleared swaps ••.•....•..•.••.·-·············-·····················-································-··-································-·····················-··········· $ ~ 3. Cleared swaps options A. Market value of open cleared swaps option contracts purchased ...................·-································-··-································-·····················-··········· $ ~ B. Market value of open cleared swaps option contracts granlad (sokl) .•............ -...·····························-··-···································································· $ ( _ _ _ _ _ _ _ ) ~ 4. Net equity (deficit) (add Lines 1, 2, and 3)........·-·······························--···-·····················-································-········································································ $ 5. Accounts liquidating ID a deficit and acco111ts with debitbalarees- gross amount................................ $_ _ _ _ _ _ _ _ _ ~ Less: arrountolfset by customer owned securities...............·-·············-·····················-·································$~_ _ _ _ _ _ _ !!r!!J ~ $ 6. Arrount required to be segregated for cleared swaps customers (addlines4 and 5)...................................................... ............................................. $ FUNDS IN CLEARED &WAPS CUSTOt.ER SEGREGAT8) ACCOUNTS 7. Deposited in dearedswaps customer ses,egated acco1111s at barks A. Cash ............................................................................................................................................................................................................................................ $ ~ B. Securities representinginvesmnls of cleared swaps customers' Ii.Inds (atrnarkeO ···············--···-········································································ $ ~ C. Securities held for particular cleared swaps customers in lieu of cash (atrnarkeij ................................................................................................... $ t!E!!I 8. Margins on deposit with derivatives clearing organizations in cleared swaps customer segregalBd accoums A. Cash ...................................................·-············· ..····················· ..·············-····················· .. ································-·· ..································......................._........... $ ~ B. Securities representinginvesmnts of cleared swaps customers' lurds (atrmrkeO ····················-·· .. ··············································•····················· $ ~ C. Securities held for particular cleared swaps customers in lieu of cash (atmerket .......•.....•..........._..........................................................._.•...•..... $ !!!!I !!!!!I 9. Net settlement trom(ID) derivatives clearing organizations.·-·············-·····················-································-··..····························........................................ $ 10. Cleared swaps options A. Value of open cleared swaps long option contracts....... _...................................................................................................................................-........... $ B. Value of open cleared swaps short option corlracls ....................................................................................................................................................... $ ( ~ )~ 11. Net equities with other FCM. A. Net liquidating equity .................................·-·····················-·············..·····················.. ································-··-···································································· $ B. Securities representinginveslmllnts of cleared swaps customers' Ii.Inds (at market)............................................................................................... $ C. Securities held for particular cleared swaps customers in lieu of cash (al market) ................................................................................................... $ 12. Cleared swaps customer Ii.Inds on hand(describe: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- J $ 13. Total arrountin cleared swaps customer ses,egation (add Liles 7through 12).·-································-··-································-·····················............. $ 14. Excess (deficiency) Ii.Inds in cleared swaps customer segregation(suttractline6 ti-om Line 13) .............................................................................. $ 15. Managemenllarget arrountfor excess funds in cleared swaps ses,egalBd acco1111s ..........................-........................................................................ $ 16. Excess(deficiency) funds in clea18d swaps customer segl8gatedaccourts over (111der)managementtargetexcess ..............................-........... $ t!!!!I m!!J Irr!!!! !ml !!!!!I !!!!!I !!!!!I I!!:!:!!! VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00130 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.051</GPH> Name ofFimr _ _ _ _ _ _ _ _ _ _ _ __ Asof. _ _ _ _ _ _ _ _ _ _ _ _ _ __ 59242 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II STATEMENT OF SEGREGATION REQUIREMENTS AND FUNDS IN SEGREGATION FOR CUSTOMERS' DEALER OPTIONS ACCOUNTS Items on lhis page to be reported by a: Futures Commission Merchant 1. .ll!munt required to be segregated in accordance with 17 CFR 32 .6.................................................................................·-············-······························.. $ 2. Funds/property in segregated accounts A Cash ............·-·····································································································································-········· $ ------~ B. SecuritiH (atmarketvalue)..................................................................................................................... $ ~ C. Total fundslproperty in segregated accouri:5 ..................................................................................................................................................................... 3. Excess (deficiency) funds in sei,egation (subtract Line 2C Iran Line 1) .......................................................................................................................... NameofFirrn: VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00131 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.052</GPH> As of. _ _ _ _ _ _ _ __ Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II 59243 STATEMENT OF SEC UR EDAMOLNTSAND FUNDS HELD IN SEPARATE ACCOUNTS FOR FOREIGN FUTURES AND FOREIGN OPTIONS CUSTOMERS PURSUANT TO CFTC REGULA110N 30. 7 Items on 1his page to be reported by a: Futures Commission Merchant FORBGN FUTURES AND FOREIGN OPTIONS SECURED A!t[)UNTS Amount required to be set aside pursuant to law, rule, or regulation of a foreign gC11errrnentor a rule of a selt:-regulatory organization aiJ:horizedthereunder. ........................................................................................................................................................... $ --- ~ A. Cash ........................................................................................................................................................................................................................................... $ ~ B. Securities (at1n1rkeQ .............................................................................................................................................................................................................. $ 1!!71 2. Net unrealized profit (loss) in open futures contracts traded on a foreign board of trade.............................................................................................. $ ~ A. Market value of open option contracts purchased on a foreign board of trade. ......................................................................................................... $ B. Market value of open option contracts grarted (sol:!) on a foreign board of trade ................................................................................................... $ l!!fil l!!!ZI 4. Net equity (deficiQ (add Lines 1, 2, and 3) .............................................................................................................................................................................. $ ~ $ ~ 1. Net ledger balance - Foreign futures andforeign options trading -All customers 3. Exchange traded options 5. Accounts liquidating to a deficit and accounts with debi balances-gross amount................................... Less: Amount offset by custorner owned securities......................................................................................... $________ ~ $ ~ 6. Amount required to be set aside as the secured amount- Net liCJJidating eqlityrnethod (add Lnes 4 and5) ....................................................... $ ~ 7. Greater of amount required to be set aside pursuant to foreignjurisdiction (above) or Line 6 .................................................................................... $ [!lll VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00132 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.053</GPH> Name ofFirm: As of. _ _ _ _ _ _ _ __ 59244 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part II STATEMENT OF SEC UR ED AMOUNTS AND FUNDS HELD IN SEPARATE ACCOUNTS FOR FOREIGN FUTURES AND FOREIGN OPTIONS CUSTOMERS PURSUANT TO CFTC REGULAllON 30. 7 Items on this page to be reported by: Fuh.tres Commission Merchant FUNDS DEPOSITED IN SEPARATE 17 CFR 30.7 ACCOUNTS 1. Cash in banks A. Banks locamd in 1he United S1ates.......................................................... $ - - - - - - - - ~ B. Other banks qualified under 17 CFR. 30.7 Name{s): - - - - - - - - ~ $ -----~ $ 2. Securities A. In safekeeping with banks located in 1he Unied Slates...................... $ - - - - - - - - ~ 8. In safekeeping with otherbanks de signaled by 17 CFR 30.7 Name(s): - - - - - - - - - - ~ 3. Equities with registered fu1ures comrission merchants $ ------~ $ A Cash ................................................................................................................ $ - - - - - - - - ~ ~ B Securities ....................................................................................................... $ D. Value oflong optioncon1racts .................................................................. $ !!:!!!!I l!!!!J E Value ofshortoption contracts............................................................... $ j!!!!f C. Unrealized gain ~oss) on open futures contracts................................ $ $ 4. Amounts held by clearing organizations of foreign boards oflrade Name(s): ---------~ A Cash................................................................................................................ $ ~ fl Secu1ities....................................................................................................... $ ~ C. Amountdue to (fron-y clearing organizations- dai~ variation........... $ - - - - - - - - ~ D. Value oflong option contracts ............................................................... $ l!!!!I E Value ohhort option contracts................................................................. $ ~ $ 5. Amounts held by members of foreign boa-ds of trade Name(s): ---------~ A. Cash ........................................................................................................... $ _ _ _ _ _ _ __ 8. Securities ....................................................................................................... $ _ _ _ _ _ _ __ l!!!!!J l!!!!1 C. Unrealized gain (loss) on open futures contracts............................... $ 1ml) D. Value oflong optioncontracts............................................................... $ _ _ _ _ _ _ __ I!!!!! E Value of short option contracts................................................................ $ _ _ _ _ _ _ _ _ __, ~ ~ $ 6. Amounlll wi1h other depositories designated bya foreign board of trade ---------£!!!! $ I!"!!!! 7. Segregated funds on hand (describe:--------~ $ [ml 8. Total funds in separate 17 CFR 30.7 accounts ............................................ $ [!! 9. Excess (deficiency) setaside funds for secured amount (Line Item 7770 rrinus Line llem 7360}...................................................... .. $ ~ 1O.Mmagerrenttuget amount fur excess fimds in separate 17 CFR 30.7 account; ...................................................................................... .. $ ~ 11.Excess (deficiency) funds in separate 17 CFR 30.7 accounts over (under) managerrenttargetexress...................................................... $ ~ Name(s): VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00133 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.054</GPH> Name ofFiim _ _ _ _ _ _ _ _ _ _ _ __ As of _ _ _ _ _ _ _ __ 59245 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SCHEDULE 1 -AGGREGATE SECURITIES, COMMODITIES, Af'.OSWAPSPOSITIONS Items on this page to be reported by: stand-Alone Broker-Dealer Stand-Alone SBSD Broker-Dealer SBSD stand-Alone MSBSP Broker-Dealer MSBSP Aggregate Securitin. Comnodities. and Swaps Positions 1. U.S. ireasurysecurities...................................................................................................... $ _ _ _ _ _ _ __ LONGitlOUGHT 2. U.S. government agency and U.S. goverrment-spcmo1t1d entaiprises................. $ A. Mlrlgage-backed securities issued by U.S. govenmmt agency and U.S. government-sponsored enterprises............................................................... $ B. Debt securities issued by U.S. government agency and U.S. government-sponsored ente1prises ........................................................................ $ _ _ _ _ _ _ __ 3. Securities issued by statss and political subdillisions in the U.S............................... $ _ _ _ _ _ _ __ 4. Foreign securities A. Debtsecurities............................................................................................................ $ _ _ _ _ _ _ __ B. Equilysecurities........................................................................................................... $ _ _ _ _ _ _ __ 5. Money market instruments................................................................................................ $ _ _ _ _ _ _ __ 6. Privata labelmortgage backedsecurlies...................................................................... $ 7. Other asset-backed securities.......................................................................................... $ 8. Corporate obligations.......................................................................................................... $ 9. Stocks and warranlll (other than arbitrage positions)................................................... $ 10. Arbitrage............................................................................................................................ $ 11.Spotcorrrrodities.............................................................................................................. $ _ _ _ _ _ _ __ 12. Other securities and corrrrodities.................................................................................. $ 13. Securities with no ready market A. Equity ......................................................................................................................... $ B. Debt............................................................................................................................... $ C. Other.............................................................................................................................. $ _ _ _ _ _ _ __ D. Total securities with no ready m11ket..................................................................... $ _ _ _ _ _ _ __ 14. Total netsecurities and spot comnodities (sum of Lines 1-12 and 130) .............. $ _ _ _ _ _ _ __ ' 15. Security-based swaps A. Cleared ....................................................................................................................... . $ B. Non-cleared ................................................................................................................. $ _ _ _ _ _ _ __ 16. Mxed swaps A. Cleared......................................................................................................................... $ _ _ _ _ _ _ __ B. Non-cleared................................................................................................................. $ _ _ _ _ _ _ __ 17. swaps A. Cleared........................................................................................................................ $ _ _ _ _ _ _ __ Non-cleared............................................................................................................... $ -------- R 18. Other derivatives and q,tiom......................................................................................... $ 19. Counlerparly netting......................................................................................................... $ 20. Cash collateral netting...................................................................................................... $ 21. Total derivative recewables and payables (sum of Lines 15·20)............................. $ 22. Total net securities. comrodities. and swaps positions (sum of lines 14 and 21)........................................................................................................ $ Name ofFirm _ _ _ _ _ _ _ _ _ _ _ __ As of _ _ _ _ _ _ _ _ _ _ _ _ _ __ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00134 Fmt 4703 ------- Sfmt 4725 I ll ---------------------------·-------------------------------------------------------------- SHORT/SOLD $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ - $ $ $ lllll $ $ $ $ $ $ $ $ $ ------1111 - - - - - Pll-9 1111. $ 1(21;e $ l.iffll llmi $ lt'M E:\FR\FM\26OCN1.SGM $ 26OCN1 EN26OC21.055</GPH> FOCUS Report Part II Schedule 1 59246 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SCHEDULE 2- CREDIT CONCENTRATION REPORT FOR FIFTEEN LARGEsr EXPOSURES IN DERIVATIVES FOCUS Report Part II Schedule2 L Items on this page to be reported by : stand-Alone Broker-Dealer (Aulhorized to use models) stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP By Current Net Exposure Counterparty Identifier Gross Replace11111nt Value Receivable Payable (Gross Gain) (Gross Loss) Net Replace11111nt Value Current Net and CurrentNet ExposU111 Potential Exposure Margin Collected Net Replace11111nt Value CurrentNehnd Current Net Exposll!ll Potential Exposure Margin Collected Fmt 4703 E:\FR\FM\26OCN1.SGM 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. By Current Net and Potential Exposure Counterpartyldentifier Gross Replace11111nt Value Receivable Payable (Gross Gain) (Gross Loss) 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. Name affirm _ _ _ _ __ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00135 Sfmt 4725 26OCN1 EN26OC21.056</GPH> As of. _ _ _ _ _ _ _ _ _ _ _ _ __ 59247 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SCHEDULE 3- PORTFOLIO SUMMARY OF DERIVATIVES EXPOSURES BY INTERNAL CREDIT RATING FOCUS Report Par1 II Schedule3 Items on this page to be reported by: Internal Credtt Rating Gross Replacement Value Receivable Stand-Alone Broker-Dealer (Aulhorized to use models) Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP Net Replacement Value Payable Current Net Exposure Current Net and Potential Exposure Margin Collected Payable 1. $ 2. $ 3. $ $ 5. $ 6. $ 7. $ 8. $ 9. $ 10. $ 11. $ 12. $ 13. $ 14. $ 15. $ 16. $ 17. $ 18. $ 19. $ 20. $ 21. $ 22. 23. $ I $ 24. $ 25. ' $ 26. $ 27. $ 28. $ 29. $ 30. $ 31. 32. $ 33. $ 34. $ 35. $ 36. $ nraled VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00136 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.057</GPH> NameofFirm As of. 59248 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SCHEDULE 4- GEOGRAPHIC DISTRIBUTION OF DERIVATIVES EXPOSURES FOR TEN LARGEST COUNTRIES FOCUS Report Part II Schedule4 L Items on this page to be reported by: Stand-Alone Broker-Dealer (Authorized to use models) Stand-Alone SBSD Broker-Dealer SBSD Stand-Alone MSBSP Broker-Dealer MSBSP By Current Net Exposunt Gross Replacement Value Country Receivable Payable Net Replacement Value 1. $ 2. $ 3. $ 4. 10. s s s s s s s Totals: $ 5. 6. 7. 8. 9. I. Current Net Exposure By Current Net and Potential Exposure Gross Replacement Value Country Receivable Payable Net Replacement Value Current Net Exposure Current Net and Potential Exposure Margin Collec111d Current Net and Potential Exposure Margin ColleclBd 1. $ $ $ 2. $ $ s s 3. $ $ 4. $ $ $ 5. $ $ 6. $ $ s s 7. $ $ $ 8. $ $ s 9. $ $ s 10. $ $ $ $ $ Totals: $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00137 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.058</GPH> NameofFirm As of. _ _ _ _ _ _ _ _ _ _ _ _ __ 59249 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices Form X-17 A-5 FOCUS Report Part IIC Cover Page UNITED STATES SECURITIES AND EXCHANGE COMMISSION FOCUS REPORT (FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLE REPORT) Part IIC ID] 0MB APPROVAL 0MB Number: Expires: Estimated average burden hours per response: (Please read instructions before preparing Form) This report is being filed by an: 1) SBSD with a prudential regulator (bank SBSD)................................................................................................ 2) MSBSP wilh a prudential regulator (bank MSBSP). ... ... . .... ... ... ... .. .. ... ... ... .... .. ... ... ...... ... ... .... .. ... .... .. .... ... ... ... ... . D lllll D Ill U.S. personD 1111 Non-U.S. personD 11111 This report is being filed by a: This report is being filed pursuant lo (check applicable block(s)): 1) Special request by lhe Commission ............................................................................................................. 2) 3) Rule 18a-7............ ................. ................................................................................................................. Other (explain: _ _ _ _ _ _ _ _ _ _ _ _ _ _ )............................................................ NAME OF REPORTING ENTITY D II D 11111!1 D II SEC FILE NO. g ADDRESS OF PRINCIPAL PLACE OF BUSINESS (Do not use P.O. Box No.) FIRMID NO. II (No. and Street) 11(State/Province) - - - I - - -(Zip - Code) - - - - - Ill (City) FOR PERIOD BEGINNING (MM/00/YY) AND ENDING (MM/DDIYY) It Bl II II (Country) NAME OF PERSON TO CONTACT IN REGARD TO THIS REPORT - --------• EMAIL ADDRESS (AREA CODE) TELEPHONE NO. Ill NAME(S) OF SUBSIDIARIES OR AFFILIATES CONSOLIDATED IN Tl-IS REPORT OFFICIAL USE JI II II ------------• Is this report consolidated or unconsolidated? ............... .. Does respondent carry its own security-based swap customer accounts? .... EXECUTION: The registrant submitting this Form and its attachments and the person(s) by whom ii is executed represent hereby that all infurmation contained therein is true, correct and complete. It is understood that all required items, statements, and schedules are considered integral parts of this Form and lhat the submission of an amendment re resents that all unamended items, statements, and schedules remain true, correct and com lete as rev iousl submitted. Dated l h - day o Signatures of Names of ~~ -------------------~ - 1) ------• ------• Principal ExecutiveOfficerorComparable Officer Principal Executive Officer or Comparable Officer 2) Principal Financial Officer or Comparable Oflcer Principal Financial Officer or Comparable Officer 3) Principal Operations Officer or Comparable Officer j ATTENTION: Principal Operations Officer or Comparable Officer Intentional misstatements and/or omissions oflacts constitute federal criminalviolations. (See 18 U.S.C. 1001 and 15 U.S C 78ff(a).) Persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00138 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.059</GPH> 0MB control number. 59250 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC BALANCE SHEET (INFORMATION AS REPORTED ON FFIEC FORM 031 - SCHEDULE RC) Items on this page to be reported by a: Bank SBSD Bank MSBSP ~ A!!m 1. Cash and balances we fran depositoiyinstifutions (fromFFIEC Forrn031's Schedule RC-A) $______ A. Noninlllrest-bearing balancBS and currency and coin ............................................................................................................... B. lntere~bearing balances.................................................................................................................................................................... $ - A. Federal funds sold indomastic offices............................................................................................................................................. $ ____ B. Securities purchased under agreBTl8nts lo resell ........................................................................................................................... $ !!!!I 11111 $ _____ ~ 2. Securities A. Held-to-maturity securities.................................................................................................................................................................... B. Available-for-sale secu-ities ............................................................................................................................................................ 3. Federal funds sold and securities pu-chased under agreernmts lo resel 4. Loans and lease financing receivables (fromFFIEC Forrn031 's Schedule RC-C) A. Loans and leaaes held for sale ....................................................................................................................................................... $ _ _ _ _ .._ B. Loans and leases, net of unearned income $ 11111 $ 5. Trading assets (from FFIEC Form 031's Schedule RC-D) .................................................................................................................. $ 6. Prernses and fixed assets(incl.Jdhg capitai2ed leases) .................................................................................................................... $ 7. other real estate owned (fromFFIEC Form031's ScheduleRC-M) ................................................................................................. $ 8. ln118mients in unconsolidaled subsidiariBS andassocialed corr!)anies.......................................................................................... $ 9. Diredand indirectinvestmants in real estate venlures ........................................................................................................................ $ --11111 ~ 11111 E!!!J 10. Intangible assets A. Goodwill .................................................................................................................................................................................................... $ B. other intangible assets (fromFFIEC Form 031 's Schedule RC-M) ............................................................................................ $ 11. Olherassel:s (fromFFIEC Form031's Schedule RC-F) ................................................................................................................... $ 12. Total assets (sum of lines 1 through 11)............................................................................................................................................... $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00139 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 1111 11111 26OCN1 EN26OC21.060</GPH> C. LESS: Allowance i>r loan and lease losses D. Loans and leases, net of unearned income and alowance (Line4B rrinus Line4C)............................................................. Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC 59251 BALANCE SHEET (INFORMATION AS REPORTED ON FFIEC FORM 031 - SCHEDULE RC) Items on this page to be reported by a: Bank SBSD Bank MSBSP Ljabmttes Iatll1 13. Deposits $ _ _ _ _ __ A. In domestic offices (sum of totals ofColunns A and C fromFFIEC Form 031's Schedule RC·E, part I) ........................... 1. Nonintereat-bearing $ ____~ 2. Interest-bearing $ ~ B. In foreign offices, Edge and Agre11T&nt subsidiarias, and IBFs (from FFIEC Form 031 's Schedule RC-E, pat IQ........... 1. Noninterest·bearing $ _ _ _ _ __ $ ------~ 2. lnlarest-bearing $ ~ 14. Federal imds purchased and securities sold 111der a11eemenls to repu-chase ......................................................................... A. Federal funds purchased in d01T111stic offices.................................................................................................................................... $ ____~ B. Securities sold under a!J&IIT&nls to repurchase ......................................................................................................................... 15. Trading iablities..................................................................................................................................................................................... 16. Olher borrowed money(includes mortgage indebtedness and obligations undercapitalzed leases) (lromFFIEC Form031's Schedule RC·M)............................................................................................................................................................................................... $ - $ - $ ____~ 17. Nol applicable ......................................................................................................................................................................................... 18. Nol applicable ......................................................................................................................................................................................... 19. SUbordinal9dnol9s and debentu1&s .................................................................................................................................................... $ ____~ 20. Olher liabilities (fromFFIEC Form031's Schedule RC-G) ................................................................................................................ $ 11111 $ - 21. Total liabilities (sum of lines 131hrough 20).................................................................................................................................... 22. Nol applicable ............................................................................................................................................................................................ Eau itvCIPital $ $ 25. surplus (exclude al surplus related to preferred stock) ................................................................................................................. $ 26 A. Retainad earni1's. ......................................................................................................................................................................... $ B. Accurrulaled o1her con,:,rehensive income ...................................................................................................................................... $ C. Other equity capital corrponents. ........................................................................................................................................................ $ 27A. Total bank equity capital (sum of lines 23 through 26.C)............................................................................................................... $ B. Non•controlling(rrinority) interesls in consolidated subsidiaries.................................................................................................. $ 28. Total equity capital (sum of lines 27A and 278) .................................................................................................................................. $ 29. Total liabilities and equitycapi1al (sum of lines 21 and 28) ............................................................................................................... $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00140 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM -11111 11111 ~ ~ 11111 111111 26OCN1 EN26OC21.061</GPH> 23. Perpetual preferred stock and relalad surplus ...................................................................................................................................... 24. Comnon stock....................................................................................................................................................................................... 59252 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices REGULATORY CAPITAL (INFORMATION AS REPORTED ON FFIEC FORM 031 -SCHEDULE RC-R) Items on this page to be reported by a: Bank SBSD Bank MSBSP ~ Totals 1. Total bank equity capital (fnmFFIEC Fonn031's Schedule RC, Line27A)................................................................................................................................ $ 2. Tier 1 capitaL............................................................................................................................................................................................................................................ $ 1111111 3. Tier 2 capital... .......................................................................................................................................................................................................................................... . $ 11111 4. Tier 3 capital allocatedfor1111rket risk................................................................................................................................................................................................... $ 5. Total risk-based capital ............................................................................................................................................................................................................................ $ 6. Total risk-weighllld assets ....................................................................................................................................................................................................................... $ 7. Total assets for the leverage raio ....................................................................................................................................................................................................... . $ Capial Ratios (Colunn Bis Ill be co"l)leted by all b111ks. Column Ais Ill be completed by banks with financial subsidi•ies.) CourmA 8. Tier 1 lewraga raio ....................................................................................................................................... . $ 9. Tier 1 risk.. based capital ratio ....................................................................................................................... . $ 10. Total risk-based caplal ratio ....................................................................................................................... . $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00141 Fmt 4703 Sfmt 4725 Ill 11111 E:\FR\FM\26OCN1.SGM Comm 8 $ $ 26OCN1 1111 -~ 1111 -- EN26OC21.062</GPH> FOCUS Report Part IIC 59253 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC INCOME STATEMENT (INFORMATION AS REPORTED ON FFIEC FORM031 -SCHE[)JLE RI) Bank SBSD Bank MSBSP Items on this page to be reported by a: le!!!! 1. Total interest income····························-·································-·················-····················································-·································-·················-·································-······· $ .-... A. Interest rate exposures._ .............._................................. -...··············-·································-·················..························ .. ······· ..······· ..·····-·-······························..·-·····.. $ B. Foreign exchange exposures...... ·-···· .. ··························· .. ·················-·................................................................................................................................................... .. $ C. Equity security and index exposures ...........................·-·············· ........................................................ ·-·····..················..·· ........................._................................. _....... $ D. Conrmdily and olher exposures ..................................·-···..···.........-.................................................... -................................. -................._................................. _....... $ E. Creditexposures ........................................................................................................................................................................................................................................ .. $ -.-. -.. F. lrr1>act on trading revenue of changes in the credtwor1hiness of the bank's derivative counterpries onlhe bank's derivativeassets) .......................... $ ~ G. lrrpact on trading revenue ct changes in lhe crecitworthness oflhe bank on lhe bank·s deriwtive liabilities............................-................................·-······· $ ~ A. Net gains (losses) on credt derivatives hekl for trading ......................................................................................................................... ·-······· .. ····· ...·........................ $ ~ B. Net gains (losses) on credl derivldives held for purposes olher than tradng ............................... -................................................... ·-·····················..··········-······· $ ~ 11. Credit losses on deriratives ................................................. _...................................................................... ·-····················································-···· ..···························-······· $ ~ 2. Total interest expense ............................................................-·····························································································································-·································-······· $ 3. Total noninterestincome ....................................................... -...............................................................................................................................................................·-····..· $ 4. Total noninlerestexpense..................................................... -............................................................................................................................ ·-······················........... _....... $ 5. Realized gains (losses) on held-to-rra1url.y securities...·-······· ..········-·································-·················..·································-··············-·-·································-·····.. $ 6. Realized gains (losses) on avaiable-for-ealesecurlies._....................................................................... -................................................... ·-·····················..··········-······· $ 7. Income (loss) before in came taxes and extraordinary items and other aqustments ......................... -................................................... ·-········..·········.............. _....... $ 8. Net income (loss) attributable to bank ...............................·-·················································..····...·.. ··········-·····..··························-·················-····.. ···························-······· $ 9. Trading revenue(fromcash instnrnents and derivldive instruments) ~ ~ 11111 111111 11111 Lines 9F and9Gare to be completed by banks with $100billionor more in totalassetsthatarerequiradto complete lines 9Athrough 9Eabove. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00142 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.063</GPH> 10. Net gains (losses) recognized in earnings on credit derivatives lhat economically hedge crecit exposures held outside the tracing account 59254 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC COMPUTATION FOR DETERMINATION OF SECURITY•BASED SWAP CUSTOMER RESERVE REQUIREMENTS Items on lhis page lo be reported by a: Bank SBSD (lfnol exempt tom Rule 18a-4) CREDIT BALANCES 1. Free credit balances andolhercreditbalancesinthe acco111ts carried forsecurily•based swap customers (see Note A)................................................................................................................................ $ 2. Monies borrowed collat&ralizedby securities in accounts carried for security-based swap cullk>1T111rs (see Nole B)............................................................................................................................... $ 3. Monies payable agailst securly,based swapcusto1T111rs' securities loaned (see Note C) ...................... $ 4. Security-based 8WIIP cus!Dmers' securities failed to receive (see NoteD).................................................. $ 5. Credit balances in firm accourts attributable to principal sales to security-based swap customers....... $ 6. Marketvakle of stock dividends, stock splits and sirilar disbiliuions receivable olblandng over 30 calendll' days............................................................................................................................................. $ 7. Marketvakle of short securitiesand credits (nd:lo be offset by longs or by debts) in all suspense accounts over 30 calend.- days.......................................................................................................................... $ 8. Markelvakle of securities which are in tansfer in excess of 40 cal end II' days and have not been confirm11d to be in transfer by the transfer agenlorlhe issuer during the 40 days................................... $ 9. Olhar(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ ___,.......................... $ ---11111 _______ ______ 11111 BIi 10. TOTAL CREDITS........................................................................................................................................................................................................................... $ DEBIT BALANCES 11. Debit balances in accounts carried for sec11ity•based SWIIP customers, exclulingunsecured accounts and accounts doublful of collection (see Note E)........................................................................... $ 12. Securities borrowad1D elfectuale short sales by security-based swap cuslo1T111rs and securities borrowed 1D meke delivery on secllily•basedswap cusbmers' securiiesfailedto delveL. .............. $ 13. Failed to deliver ri security-based swap customers' securities not older than 30 calendar days.......... $ 14. Margin required and on deposhlilh Options ClearingCorporalionforall option contracts wrillBn or purchased in acco111tscarriedfor securly.. based swap customers (see Nme F) ............... _. $ 15. Margin related lo securiy future products written, purchased or sokl in accoum carried for secllitrbased swap cu81omers requred and on deposit in a qualiied clearing agency accourt at a clearing agency regisleredwith the Camission undersecion 17 Aof the Exchange Ac1 (15 U.SC. 78q.. 1) or a derivative clearilg organization registered with the Conmodily Futures Trading Camission under section Sb dthe ComnodityExchange Ac1(7 U.S.C. 7a-1) (see Nme G).................................... $ 16. Margin related 1D de ared securey,based swap transaction a in accounts carried for secllity-based swap cus1Dmers required and on deposit in a qualiied dearing agency accourtata clearing agency registered v,ilh the Cormission pursuart 1D section 17A of fle Exchange Act(15 U.S.C. 78q•1 )....... $ ---- ---- 17. Margin related to non-deared secllity-based&Wap transactions in accounts carried for securitybased swap cus1Dmers requi'edandhekl in aqualifiedre~mred secunty-based swap dealer accountatanoflersecurity-basedswapdealer.............................................................................................. $ _ _ _ _ _ _ _ 18.0lher(List _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _~ ........................ $ _ _ _ _ _ _ 11\1111 RESERVE COMPUTATION 20. Excess of to1al debits over lo1al crelits (Line 19 less Line 10)............................................................................................................................................ $ 21. Excess ofto1al credits over 1Dlal debits (Line 10 less Line 19).............................................................................................................................................. $ 22. Amlunt held on deposit in "ReserveAccount(s),■ inclldilg value of quaifiedsecurities, at end of reporting peri>d ................................................ $ 23. Amlunt of deposit (or withdraws) includi,g $ • ·sl'Je of qualified securities.......................................................................... $ ~4. New amount in Raserv,~1:u;f~~~~~a8~~~iti~~:~.~.'.~~~.~:'.'..~.~~.~.'..~~~~.:.~....................................................................................... $ 25. Date ofdeposit(~DIYY) .......................................................................................................................................................................................................... $ References lo noles in this section refer to the notes to 17 CFR 240.18a-4a VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00143 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM --------= ----------111111 ------1111 26OCN1 EN26OC21.064</GPH> 19. TOTAL DEBITS ................................................................................................................................................................................................................................. $ Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC 59255 POSSESSION OR CONTROL FOR SECURITY-BASED SWAP CUSTOMERS Items on lhis page ID be reported by a: Bank SBSD Ofnot exempliom Rule 18a-4) Slate the merketvaklation and nurmerofilBms of. 1. Security-baHd swap cu51orn,rs' excess securities colalBral not in the respondent& possession or conlrolH of the report date (fur which insbuctions t, reduce to poss8$5ion or control had b1111n issued as of the report date) bltilr which the reqlired action was not taken by respondentwithinlhe tirn, fi'ame specified under RI.le 18a-4. Notes Aand B.................................·-····--······························· $ _ _ _ _ _ _ _ - ---- A. Nurmer of items.........................-····································-··············-···················································-····································-··············-······················ 2. Security-based swap cu51orn,rs' excess securitiescol111Bral forwhich instructions to reduce possession or cortrol had not been issued asoflhereportdateunderRLle 18a-4..........................·-··············································································································································· $ - - - - - - - { l l l l l l A. Nurmer of items.........................•....................................•..............•....................................•..............•.................................•.•..............•...................... 3. The syslBm and proced11"es Llilized in coll"f)lying with the requi"ernentto meinlain physical possession or contrd ofsecurity-based swap customers' excess securities collalBral have beenlBsted and ara functi111ing in a 1t11nneradequala to li.Jlfil the requirements of Rule 18a-4................................................................................................................................. Yes _ _ _ _ _ _ _ llllfllo _ _ _ _ _ _ _ _ Notes: A - Do not include in Line 1 security-based swap customers' excess securities colliteral required by Rule 18a-4to be in possession or contrd bit for which no action was reqind bylhe respondertas of the repa1 date or requi"ed action was taken~ respoodenlwithin the time li"ames specified under Rule 18a-4. VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00144 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.065</GPH> B -Stam separalBlyin response lo Line 1 whether lhesecurties reporlBd in response thereto were subsequentty reduced lo possession or conlrd by the respondent 59256 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices FOCUS Report Part IIC CLAIMING AN EXEMPTION FROM RULE 18a-4 Items on lhis page lo be reported by a: Bank SBSD c:J. EXEMPTION FROM RULE 18a-4 VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00145 Fmt 4703 Sfmt 4725 E:\FR\FM\26OCN1.SGM 26OCN1 EN26OC21.066</GPH> If an exemptionfrom Rule 18a-4 is claimed, checklhe box .......................................................................... .............................................. Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SCHEDULE 1 -AGGREGATE SECURITY-BASED SWAf' AND SWAP POSITIONS Items on this page lo be reported by a: Bank SBSDs Bank MSBSPs LONG@OUGHJ A22reaate Positions 1. Security-based swaps A. Cleared ................................................................................................................................................. .. $ B. Non-cleared .......................................................................................................................................... .. $ 2. Mxed swaps A. Cleared ..................................................................................................................................................... $ B. Non-cleared ....................................................................................................................................... .. $ 3. Swaps A. Cleared ..................................................................................................................................................... $ B. Non-cleared .......................................................................................................................................... .. $ 4. Other derivatives ........................................................................................................................................... .. $ 5. Total (sum of Lines 1-4)................................................................................................................................ $ VerDate Sep<11>2014 22:39 Oct 25, 2021 Jkt 256001 PO 00000 Frm 00146 Fmt 4703 Sfmt 9990 ----j 1111i' ' E:\FR\FM\26OCN1.SGM §HORT/SOLD $ $ $ $ $ . $ ; $ $ 26OCN1 --11111 1111 11111 ' EN26OC21.067</GPH> FOCUS Report Part IIC 59257 59258 Federal Register / Vol. 86, No. 204 / Tuesday, October 26, 2021 / Notices SECURITIES AND EXCHANGE COMMISSION [FR Doc. 2021–22817 Filed 10–25–21; 8:45 am] BILLING CODE 8011–01–C [Release No. 34–93391; File No. 265–33] SECURITIES AND EXCHANGE COMMISSION Asset Management Advisory Committee; Meeting Public Availability of the Securities and Exchange Commission’s FY 2019 Service Contract Inventory Securities and Exchange Commission. AGENCY: ACTION: Notice. In accordance with Section 743 of Division C of the Consolidated Appropriations Act of 2010 (Pub. L. 111–117), SEC is publishing this notice to advise the public of the availability of the FY2019 Service Contract Inventory (SCI) along with the FY2020 SCI Planned Analysis. The SCI provides information on FY2019 actions above the simplified acquisition threshold for service contracts. The inventory organizes the information by function to show how SEC distributes contracted resources throughout the agency. The SEC developed the inventory per the guidance issued on January 17, 2017, by the Office of Management and Budget’s Office of Federal Procurement Policy (OFPP). OFPP’s guidance is available at https://www.whitehouse.gov/sites/ whitehouse.gov/files/omb/memoranda/ 2017/service_contract_inventories.pdf. The Service Contract Inventory Analysis for FY2019 provides information based on the FY 2019 Inventory. Please note that the SEC’s FY 2019 Service Contract Inventory data is now included in government-wide inventory available on www.acquisition.gov. The governmentwide inventory can be filtered to display the inventory data for the SEC. The SEC has posted the FY 2019 SCI Analysis and its FY 2020 plans for analyzing data on the SEC’s homepage at https:// www.sec.gov/about/secreports.shtml and https://www.sec.gov/open. FOR FURTHER INFORMATION CONTACT: Direct questions regarding the service contract inventory to Vance Cathell, Director Office of Acquisitions 202.551.8385 or CathellV@sec.gov. Dated: October 21, 2021. Vanessa A. Countryman, Secretary. [FR Doc. 2021–23306 Filed 10–25–21; 8:45 am] BILLING CODE 8011–01–P VerDate Sep<11>2014 22:39 Oct 25, 2021 Securities and Exchange Commission. ACTION: Notice of meeting. AGENCY: [Release No.: 34–93396] Jkt 256001 Notice is being provided that the Securities and Exchange Commission Asset Management Advisory Committee (‘‘AMAC’’) will hold a public meeting on November 3, 2021, by remote means. The meeting will begin at 10:00 a.m. (ET) and will be open to the public via webcast on the Commission’s website at www.sec.gov. Persons needing special accommodations to take part because of a disability should notify the contact person listed below. The public is invited to submit written statements to the Committee. The meeting will include a discussion of matters in the asset management industry relating to the Evolution of Advice and the Small Advisers and Small Funds Subcommittees, including potential recommendations. DATES: The public meeting will be held on November 3, 2021. Written statements should be received on or before October 29, 2021. ADDRESSES: The meeting will be held by remote means and webcast on www.sec.gov. Written statements may be submitted by any of the following methods. To help us process and review your statement more efficiently, please use only one method. At this time, electronic statements are preferred. SUMMARY: Commission’s Public Reference Room, 100 F Street NE, Room 1580, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Operating conditions may limit access to the Commission’s public reference room. All statements received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: Christian Broadbent, Senior Special Counsel, Neil Lombardo, Senior Special Counsel, or Jay Williamson, Branch Chief, at (202) 551–6720, Division of Investment Management, Securities and Exchange Commission, 100 F Street NE, Washington DC 20549–3628. In accordance with Section 10(a) of the Federal Advisory Committee Act, 5 U.S.C.-App. 1, and the regulations thereunder, Sarah ten Siethoff, Designated Federal Officer of the Committee, has ordered publication of this notice.1 SUPPLEMENTARY INFORMATION: Vanessa A. Countryman, Committee Management Officer. [FR Doc. 2021–23265 Filed 10–25–21; 8:45 am] BILLING CODE P SECURITIES AND EXCHANGE COMMISSION [Release No. 34–93388; File No. SR–ICC– 2021–018] Electronic Statements • Use the Commission’s internet submission form (https://www.sec.gov/ rules/other.shtml); or • Send an email message to rulecomments@sec.gov. Please include File Number 265–33 on the subject line; or Self-Regulatory Organizations; ICE Clear Credit LLC; Order Approving Proposed Rule Change Relating to the ICC Back-Testing Framework Paper Statements • Send paper statements to Vanessa Countryman, Federal Advisory Committee Management Officer, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File No. 265–33. This file number should be included on the subject line if email is used. The Commission will post all statements on the Commission’s website at (https://www.sec.gov/comments/26533/265-33.htm). Statements also will be available for website viewing and printing in the On August 24, 2021, ICE Clear Credit LLC (‘‘ICC’’) 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 (SR–ICC–2021–018) to revise the ICE CDS Clearing: Back-Testing Framework (‘‘Back-Testing Framework’’) to include additional description on the lookback period for back-testing and other PO 00000 Frm 00147 Fmt 4703 Sfmt 4703 October 20, 2021. I. Introduction 1 Due to scheduling challenges, earlier advance publication was not possible. 1 15 U.S.C. 78s(b)(1). 2 17 CFR 240.19b–4. E:\FR\FM\26OCN1.SGM 26OCN1

Agencies

SECURITIES AND EXCHANGE COMMISSION

[Federal Register Volume 86, Number 204 (Tuesday, October 26, 2021)]
[Notices]
[Pages 59208-59258]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-22817]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-93335]


Order Specifying the Manner and Format of Filing Unaudited 
Financial and Operational Information by Security-Based Swap Dealers 
and Major Security-Based Swap Participants That Are Not U.S. Persons 
and Are Relying on Substituted Compliance Determinations With Respect 
to Rule 18a-7

I. Introduction

    Currently, broker-dealers are required to file on a monthly or 
quarterly basis the applicable part of Form X-17A-5 (``FOCUS 
Report'').\1\ Broker-dealers use the FOCUS Report to submit unaudited 
financial and operational information that is used by the Commission 
and broker-dealer self-regulatory organizations to monitor and 
supervise the firms. On September 19, 2019, the U.S. Securities and 
Exchange Commission (``Commission'') adopted recordkeeping, reporting, 
and notification requirements applicable to registered security-based 
swap dealers and major security-based swap participants (collectively, 
``SBS Entities'') and additional recordkeeping and reporting 
requirements for broker-dealers to account for their security-based 
swap activities.\2\ As part of this initiative, the Commission adopted 
Exchange Act rule 18a-7 (``Rule 18a-7''), amended Part II of the FOCUS 
Report, and adopted a new Part IIC of the FOCUS Report.\3\ Rule 18a-7 
applies to SBS Entities that also are registered with the Commission as 
OTC derivatives dealers (a special purpose broker-dealer that must 
limit its business to dealing in over-the-counter derivatives) or that 
do not have a broker-dealer registration.\4\ Under this rule, SBS 
Entities that do not have a prudential regulator are required to file 
Part II of the FOCUS Report on a monthly basis and SBS Entities that 
have a prudential regulator are required to file Part IIC of the FOCUS 
Report on a quarterly basis.\5\ Rule 18a-7 requires SBS Entities to 
file Part II or Part IIC of the FOCUS Report with the Commission or its 
designee.\6\ The Commission has designated the Financial Industry 
Regulatory Association, Inc. (``FINRA'') as the organization with which 
SBS Entities must file Part II or Part IIC of the FOCUS Report.\7\
---------------------------------------------------------------------------

    \1\ See 17 CFR 240.17a-5(a).
    \2\ See Recordkeeping and Reporting Requirements for Security-
Based Swap Dealers, Major Security-Based Swap Participants, and 
Broker-Dealers, Securities Exchange Act of 1934 (``Exchange Act'') 
Release No. 87005 (Sept. 19, 2019), 84 FR 68550 (Dec. 16, 2019) 
(``Recordkeeping and Reporting Adopting Release'').
    \3\ Id. at 68571-88. See also 17 CFR 240.18a-7. The amendments 
to Part II included consolidating other FOCUS Report parts into Part 
II. See Recordkeeping and Reporting Adopting Release, 84 FR at 
68573-74 (discussing the consolidation of Parts IIB and IICSE into 
Part II).
    \4\ SBS Entities that also are registered as broker-dealers 
(other than OTC derivatives dealers) are subject to the FOCUS Report 
filing requirements of Exchange Act rule 17a-5. 17 CFR 240.17a-5(a).
    \5\ See 17 CFR 240.18a-7(a)(1) and (2).
    \6\ See 17 CFR 240.18a-7(a).
    \7\ See 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, Exchange Release No. 34-88866 (May 14, 2020).
---------------------------------------------------------------------------

    Exchange Act rule 3a71-6 (``Rule 3a71-6'') conditionally provides 
that SBS Entities that are not U.S. persons may satisfy certain 
requirements under Exchange Act section 15F, including Rule 18a-7, by 
complying with comparable regulatory requirements of the SBS Entity's 
home jurisdiction.\8\ Pursuant to Rule 3a71-6, the Commission has 
issued orders granting conditional substituted compliance with respect 
to certain requirements applicable to SBS Entities subject to 
regulation in France, Germany, and the United Kingdom (``substituted 
compliance orders'').\9\ The substituted compliance orders permit 
certain SBS Entities in those jurisdictions (``Covered Entities'') to 
apply substituted compliance for specified Exchange Act requirements.
---------------------------------------------------------------------------

    \8\ See 17 CFR 240.3a71-6.
    \9\ See Order Granting Conditional Substituted Compliance in 
Connection with Certain Requirements Applicable to Non-U.S. 
Security-Based Swap Dealers and Major Security-Based Swap 
Participants Subject to Regulation in the Federal Republic of 
Germany, Exchange Act Release No. 90765 (Dec. 22, 2020), 85 FR 85686 
(Dec. 29, 2020); Order Granting Conditional Substituted Compliance 
in Connection with Certain Requirements Applicable to Non-U.S. 
Security-Based Swap Dealers and Major Security-Based Swap 
Participants Subject to Regulation in the French Republic, Exchange 
Act Release No. 92484 (July 23, 2021), 86 FR 41612 (Aug. 2, 2021); 
Order Granting Conditional Substituted Compliance in Connection with 
Certain Requirements Applicable to Non-U.S. Security-Based Swap 
Dealers and Major Security-Based Swap Participants Subject to 
Regulation in the United Kingdom, Exchange Release No. 92529 (June 
30, 2021), 86 FR 43318 (Aug. 6, 2021); Order Granting Conditional 
Substituted Compliance in Connection With Certain Requirements 
Applicable to Non-U.S. Security-Based Swap Dealers Subject to 
Regulation in the Swiss Confederation, Exchange Act Release No. 
93284 (Oct. 8, 2021).
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    The substituted compliance orders permit a Covered Entity to 
satisfy the requirements of Rule 18a-7 with respect to filing Part II 
or Part IIC of the FOCUS Report by being subject to and complying with 
specified requirements in the Covered Entity's home jurisdiction, 
subject to additional conditions designed to help ensure comparability 
of regulatory outcomes. In particular, the conditions for applying 
substituted compliance with respect to Rule 18a-7 are that the Covered 
Entity: (1) Is subject to and complies with the relevant comparable 
requirements of the home jurisdiction; (2) files periodic unaudited 
financial and operational information with the Commission or its 
designee in the manner and format required by Commission rule or order 
and presents the financial information in the filing in accordance with 
generally accepted accounting principles (``GAAP'') that the Covered 
Entity uses to prepare general purpose publicly available or available 
to be issued financial statements in the home jurisdiction (``manner 
and format condition''); (3) applies substituted compliance for the 
capital requirements of Exchange Act rules 18a-1 through 18a-1d 
(collectively, ``Rule 18a-1'') if the Covered Entity does not have a 
prudential regulator; \10\ and (4) applies substituted compliance for 
the record preservation requirements of Exchange Act rule 18a-
6(b)(1)(viii) (``Rule 18a-6(b)(1)(viii)'') if the Covered Entity does 
not have a prudential regulator.\11\
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    \10\ See 17 CFR 240.18a-1 through 18a-1d.
    \11\ See 17 CFR 240.18a-6(b)(1)(viii). Rule 18a-6(b)(1)(viii) 
requires SBS Entities without a prudential regulator to preserve 
specified information in support of amounts included in the FOCUS 
Report Part II prepared as of the audit date. Id.
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    This order specifies how a Covered Entity must meet the manner and 
format condition in a substituted compliance order.\12\ Finally, in 
response to the Commission's proposed substituted compliance orders 
with respect to Germany, France, and the United Kingdom, commenters 
made suggestions about the manner and

[[Page 59209]]

format condition.\13\ The comments, and the Commission's response to 
them, are discussed below.
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    \12\ This order applies to the manner and format condition in 
the existing substituted compliance orders and to any future orders 
that include the manner and format condition. If necessary to 
achieve comparable regulatory outcomes, the Commission may prescribe 
additional conditions in a future substituted compliance order with 
respect to a particular jurisdiction to tailor a Covered Entity's 
reliance on the manner and format condition to the relevant laws in 
the jurisdiction.
    \13\ The comments are available at: https://www.sec.gov/comments/s7-16-20/s71620.htm (Germany); https://www.sec.gov/comments/s7-22-20/s72220.htm (France); and https://www.sec.gov/comments/s7-04-21/s70421.htm (United Kingdom).
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II. Discussion

A. Manner of Filing

i. Use Part II or IIC of the FOCUS Report and the eFOCUS System 
Administered by FINRA
    Most broker-dealers registered with the Commission currently file 
the applicable part of the FOCUS Report with FINRA through the eFOCUS 
system (``FINRA eFOCUS system''). As noted above, the Commission has 
designated FINRA to receive Part II and Part IIC of the FOCUS Report 
filed by SBS Entities pursuant to Rule 18a-7, including SBS Entities 
that are not broker-dealer members of FINRA. FINRA will administer a 
separate eFOCUS system to be used by SBS Entities that are not broker-
dealer members of FINRA to file the FOCUS Report Part II and Part IIC 
(as applicable) (``SEC eFOCUS system''). Under this order, a Covered 
Entity must file the financial and operational information in the 
format discussed below with the Commission through the SEC eFOCUS 
system administered by FINRA.\14\ The SEC eFOCUS system is modelled 
closely on the FINRA eFOCUS system. Using the SEC eFOCUS system will 
enable Covered Entities applying substituted compliance with respect to 
Rule 18a-7 to file the FOCUS Report Part II and Part IIC (as 
applicable) on the same platform and to use the same preexisting 
templates, software, and procedures as SBS Entities that are not 
members of FINRA. Further, the Commission staff will have access to the 
SEC eFOCUS system and the FINRA eFOCUS system (collectively, the 
``eFOCUS systems'') and information filed on those systems will be 
provided to the Commission staff to maintain a separate database. The 
staff will use its access to the eFOCUS systems and the database to 
monitor the financial condition of firms and to perform cross-firm 
analysis to identify trends and areas meriting further regulatory focus 
as well as to perform economic analyses. Requiring Covered Entities to 
use the SEC eFOCUS system to file the required financial and 
operational information will facilitate integrating the information 
with the financial and operational information of broker-dealers (some 
of which will be registered as security-based swap dealers) and SBS 
Entities that are not applying substituted compliance with respect to 
Rule 18a-7. This will enhance the Commission's ability to monitor and 
supervise these firms.
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    \14\ See paragraph (a) of the ordering language below. Covered 
Entities may file the FOCUS Reports Part II and Part IIC (as 
applicable) pursuant to instructions on the Commission's website if 
the SEC eFOCUS system is not ready to receive them by the required 
first filing deadline and, thereafter, until the SEC eFOCUS system 
is ready to receive the FOCUS Reports.
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ii. Frequency and Timing of Filing
    Rule 18a-7 requires an SBS Entity that is not prudentially 
regulated to file Part II of the FOCUS Report seventeen business days 
after the month end and an SBS Entity that is prudentially regulated to 
file Part IIC of the FOCUS Report thirty calendar days after the 
quarter end.\15\ In response to proposed substituted compliance orders, 
the Commission received comments requesting that Covered Entities be 
permitted to file their financial and operational information with the 
same frequency that they file financial reports in their home 
jurisdictions (typically quarterly).\16\ A commenter further requested 
that the deadline for filing the financial and operational information 
with the Commission be extended to 14 calendar days after the filing in 
their home jurisdiction is due, except the commenter requested 30 
calendar days in the case of a filing that covers a period ending on 
the firm's fiscal year end.\17\
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    \15\ See 17 CFR 240.18a-7(a)(1) and (2).
    \16\ See, e.g., Letter from Kyle Brandon, Managing Director, 
Head of Derivative Policy, SIFMA (Dec. 8, 2020) (``SIFMA Letter re: 
Proposed Order (Germany)'') at 8; Letter from Jan Ford, Head of 
Compliance, Americas and Co-Head of SBS Council, Deutsche Bank, and 
Gary Kane, Co-Head Institutional Client Group, Americas and Co-Head 
of SBS Council, Deutsche Bank (Dec. 8, 2020) (``Deutsche Bank Letter 
re: Proposed Order (Germany)'') at 2; Letter from Kyle Brandon, 
Managing Director, Head of Derivative Policy, SIFMA (Jan. 25, 2021) 
(``SIFMA Letter re: Proposed Order (France)'') at 16; Letter from 
Kyle L. Brandon, Managing Director, Head of Derivatives Policy, 
SIFMA (May 3, 2021) (``SIFMA Letter re: Proposed Order (UK)'') at 
Appendix B.
    \17\ SIFMA Letter re: Proposed Order (UK) at Appendix B.
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    The commenter's requests would substantially delay (in some cases 
by multiple months) the reporting of financial and operational 
information by Covered Entities. Consequently, for the reasons 
discussed below, the Commission does not believe it would be 
appropriate to permit the extended timeframes for reporting this 
information requested by the commenter. The Commission--when amending 
Rule 3a71-6 to make substituted compliance available for Rule 18a-7--
explained the importance of reporting.\18\ In particular, the reporting 
requirements are integral to the ability of the Commission to 
effectively examine and inspect regulated firms' compliance with 
applicable securities laws.\19\ Further, the reports are used to 
determine which firms are engaged in various securities-related 
activities, and how economic events and government policies may affect 
segments of the securities industry.\20\ In addition, the reports are 
important for protecting customers against the risks involved in having 
their securities held by a third party.\21\ Finally, the reporting 
requirements promote transparency of the financial and operational 
condition of firms registered with the Commission.\22\ In light of 
these considerations, Rule 3a71-6 states, in pertinent part, that prior 
to making a substituted compliance determination regarding SBS Entity 
reporting requirements, the Commission intends to consider (in addition 
to any conditions imposed) whether the foreign financial regulatory 
system's required reports, the timeframes for reporting information, 
the accounting standards governing the reports, and the required format 
of the reports are comparable to applicable provisions arising under 
the Exchange Act and its rules and regulations and would permit the 
Commission to examine and inspect regulated firms' compliance with 
applicable securities laws.\23\
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    \18\ See Recordkeeping and Reporting Adopting Release, 84 FR at 
68598.
    \19\ Id.
    \20\ Id.
    \21\ Id.
    \22\ Id.
    \23\ See 17 CFR 240.3a71-6; Recordkeeping and Reporting Adopting 
Release, 84 FR at 68598.
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    Rule 18a-7 requires SBS Entities without a prudential regulator to 
file the FOCUS Report Part II on a monthly basis 17 business days after 
the end of the month. As stated above, the commenter requests that 
Covered Entities without a prudential regulator be permitted to file 
the financial and operational information on a quarterly basis (if that 
is the filing frequency in their home jurisdiction) and 14 or 30 days 
after the deadlines for filing information in their home jurisdiction. 
Permitting quarterly filing and tying the deadline to local 
requirements would significantly delay the Commission's receipt of the 
financial and operational information and result in the filing of 
information that is multiple months old. Therefore, for the reasons 
discussed above, the Commission does not believe it would be 
appropriate to permit the timeframes requested by the commenter.

[[Page 59210]]

However, the Commission does believe it would be appropriate to permit 
the filing deadline to be 35 calendar days after the month end. This 
would align with the 35-day filing deadline for Covered Entities with a 
prudential regulator (discussed below).
    Rule 18a-7 requires SBS Entities with a prudential regulator to 
file the FOCUS Report Part IIC 30 calendar days after the end of the 
quarter. The commenter requests that Covered Entities with a prudential 
regulator be permitted to file the financial and operational 
information 14 or 30 days after the deadlines for filing information in 
their home jurisdiction. As discussed above, tying the deadline to 
local requirements would significantly delay the Commission's receipt 
of the financial and operational information and result in the filing 
of information that is several months old. Therefore, for the reasons 
discussed above, the Commission does not believe it would be 
appropriate to permit the timeframes requested by the commenter. 
However, the Commission believes it would be appropriate to permit the 
filing deadline to be 35 days after the quarter end. The Commission 
understands that the U.S. prudential regulators permit certain U.S. 
banks to file their financial reports 35 days after the quarter end. 
The Commission does not believe this modest increase in the number of 
days Covered Entities have to file the FOCUS Report Part II or Part IIC 
would implicate the concerns discussed above about receiving stale 
information.
    Under the order, a Covered Entity without a prudential regulatory 
must file the FOCUS Report Part II 35 calendar days after the end of 
the month.\24\ A Covered Entity with a prudential regulator must file 
the FOCUS Report Part IIC 35 calendar days after the end of the 
quarter. \25\
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    \24\ See paragraph (a)(1) of the ordering language below.
    \25\ See paragraph (a)(2) of the ordering language below.
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B. Format of Filing

i. Complete a Specified Set of Line Items on the FOCUS Report
    Part II and Part IIC of the FOCUS Report elicit financial and 
operational information about the filer through sections consisting of 
uniquely numbered line items. The information (e.g., a number or dollar 
amount) is entered into the line items. Under Rule 18a-7, an SBS Entity 
must use Part II or Part IIC of the FOCUS Report to submit required 
financial and operational information by filling out all applicable 
line items on the form. Commenters requested that Covered Entities be 
allowed to file other reports instead of or in combination with 
extracts from filings made with home country supervisors in lieu of 
filing the information elicited in Part II or Part IIC of the FOCUS 
Report.\26\
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    \26\ See SIFMA Letter re: Proposed Order (Germany) at 8; 
Deutsche Bank Letter re: Proposed Order (Germany) at 2; SIFMA Letter 
re: Proposed Order (France) at 15.
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    As discussed above, the Commission's ability to monitor and 
supervise SBS Entities will be facilitated by having all firms file 
periodic unaudited financial and operational information through the 
eFOCUS systems. The eFOCUS systems are configured to receive 
information formatted to Part II and Part IIC of the FOCUS Report and 
the line items contained on the forms. Consequently, information 
formatted to other types of report templates or free-form information 
cannot be input into the systems. Moreover, having all firms enter 
information in the uniquely numbered line items on Part II or Part IIC 
of the FOCUS Report will facilitate cross firm comparisons. If firms 
use different forms or report information without using the template of 
a common form, the Commission staff would need to manually merge the 
data, and even then, there would be omissions when the other form does 
not have a parallel line item.
    However, the Commission sought comment in the proposed substituted 
compliance orders for Germany, France, and the United Kingdom on 
whether it would be appropriate initially for Covered Entities to 
report information elicited by a limited subset of the applicable line 
items on Part II and Part IIC of the FOCUS Report rather than all 
applicable line items. Commenters supported this approach and a 
commenter indicated the line items on the two forms that Covered 
Entities could complete with information that they report pursuant to 
other requirements.\27\ The Commission believes it would be appropriate 
initially to limit the line items that Covered Entities complete on 
Part II or Part IIC of the FOCUS Report (as applicable) to information 
they draw from other reports or otherwise produce. This will allow them 
to use existing systems and processes for calculating and producing the 
information reported on the FOCUS Report Part II or Part IIC (as 
applicable), while still producing information that will facilitate the 
Commission's effective oversight of these entities. During this initial 
period, the Commission will evaluate whether it would be appropriate to 
require additional information to be reported by these filers in order 
to achieve a comparable regulatory outcome to the FOCUS Report filing 
requirements of Rule 18a-7. For these reasons, the order requires 
Covered Entities to complete a limited set of applicable line items on 
Part II or Part IIC of the FOCUS Report (as applicable).\28\
---------------------------------------------------------------------------

    \27\ See, e.g., SIFMA Letter re: Proposed Order (UK) at Appendix 
B.
    \28\ See paragraph (b) of the ordering language below. The 
minimum required line items are highlighted on Part II of the FOCUS 
Report attached as Appendix A (if not prudentially regulated) or 
Part IIC of the FOCUS Report attached as Appendix B (if prudentially 
regulated). An SBS Entity may report information elicited in other 
line items on the applicable FOCUS Report if it chooses to do so. 
Further, as is the case with SBS Entities, Covered Entities must 
complete required line items if applicable. For example, under this 
order, Covered Entities will need to complete line items linked to 
Exchange rule 18a-4 (``Rule 18a-4''). 17 CFR 240.18a-4. However, the 
Commission expects most, if not all, Covered Entities will operate 
under an exemption to the segregation requirements of Rule 18a-4. 
Almost all the line items linked to Rule 18a-4 apply if the Covered 
Entity is not operating under the exemption. Therefore, a Covered 
Entity operating under the exemption need not complete these line 
items (there is a line item to indicate the firm is operating under 
the exemption, which will need to be completed if applicable).
---------------------------------------------------------------------------

ii. Report Information On A Consolidated or Unconsolidated Basis
    A commenter requested that Covered Entities be permitted to present 
the financial and operational information in the filings at the entity-
level of the Covered Entity on either a consolidated or unconsolidated 
basis depending on the reporting basis the Covered Entity uses in its 
home jurisdiction.\29\ The Commission believes it would be appropriate 
for the purposes of this order to permit Covered Entities to present 
the information in Part II or Part IIC of the FOCUS Report (as 
applicable) at the entity level of the Covered Entity on the same basis 
(consolidated or unconsolidated) that the Covered Entity presents 
information in the financial reports it files in its home 
jurisdiction.\30\ This will avoid Covered Entities having to prepare 
two sets of financial statements: One for their home jurisdiction and 
one for the purposes of this order, while still producing information 
that will facilitate the Commission's effective oversight of these 
entities.
---------------------------------------------------------------------------

    \29\ See SIFMA Letter re: Proposed Order (UK) at Appendix B.
    \30\ See paragraph (c) of the ordering language below.
---------------------------------------------------------------------------

iii. Covered Entities Without a Prudential Regulator Must Complete the 
Regulatory Capital Section of Part IIC of the FOCUS Report
    The Commission has issued substituted compliance orders that

[[Page 59211]]

permit Covered Entities to apply substituted compliance with respect to 
the capital requirements of Rule 18a-1 applicable to Covered Entities 
without a prudential regulator subject to certain conditions. One of 
the conditions is that the Covered Entity is subject to and complies 
with specified capital requirements in the firm's home jurisdiction. 
The capital requirements in the home jurisdictions addressed in the 
substituted compliance orders are based on the international capital 
standard for banks (``Basel capital standard'').\31\ Part IIC of the 
FOCUS Report--because it is used by prudentially regulated SBS 
Entities--includes a section to report the firm's capital computation 
under the Basel capital standard. Conversely, Part II of the FOCUS 
Report includes sections to report capital computations under Exchange 
Act rule 15c3-1 \32\ and Rule 18a-1. It does not contain a section to 
report a capital computation under the Basel capital standard. 
Moreover, as discussed above, substituted compliance with Rule 18a-7 is 
conditioned on a Covered Entity without a prudential regulator applying 
substituted compliance with respect to Rule 18a-1.
---------------------------------------------------------------------------

    \31\ See, e.g., BCBS, The Basel Framework, available at: https://www.bis.org/basel_framework/.
    \32\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------

    For these reasons, the order provides that Covered Entities without 
a prudential regulator must complete the Regulatory Capital section 
from Part IIC of the FOCUS Report, rather than completing the 
Computation of Net Capital and Computation of Minimum Regulatory 
Capital Requirements sections from Part II of the FOCUS Report.\33\ 
Because Part II of the FOCUS Report does not include a section to 
calculate capital under the Basel capital standard, the version of that 
form attached to this order has been modified to include the capital 
calculation section from Part IIC of the FOCUS Report.
---------------------------------------------------------------------------

    \33\ See paragraph (d) of the ordering language below. 
Initially, Covered Entities without a prudential regulator will need 
to file the FOCUS Report Part II and the FOCUS Report Part IIC (with 
only the Regulatory Capital section completed in the FOCUS Report 
Part IIC). Eventually, the SEC eFOCUS may be configured so that 
Covered Entities using Part II of the FOCUS Report to meet the 
manner and format condition will be able to report a capital 
calculation under the Basel capital standard using the relevant 
section from the FOCUS Report Part IIC without having to separately 
file the FOCUS Report Part IIC.
---------------------------------------------------------------------------

iv. Report Basel Capital Standard Calculation Pursuant to Home Country 
Requirements
    A commenter requested that the Commission permit a Covered Entity 
to complete the capital line items in the filings, if the FOCUS Report 
Part IIC is used as the filing form, in a manner consistent with its 
home jurisdiction's capital standards and related reporting 
requirements.\34\ The Commission believes this accommodation to local 
reporting requirements would be appropriate for Covered Entities with a 
prudential regulator and for Covered Entities without a prudential 
regulator applying substituted compliance for the capital requirements 
of Rule 18a-1. This will avoid these firms having to perform and 
present two Basel capital calculations (one pursuant to local 
requirements and one pursuant to U.S. requirements). Moreover, the 
Basel capital standard is an international standard that has been 
adopted in the U.S. and in jurisdictions where substituted compliance 
is available for capital. Therefore, requirements for how firms 
calculate capital pursuant to the Basel capital standard generally 
should be similar. Consequently, even though the capital section of 
Part IIC of the FOCUS Report requires SBS Entities to complete the 
Regulatory Capital section using the instructions accompanying form 
FFIEC 031 (``Call Report''), Covered Entities completing the capital 
section of Part IIC of the FOCUS Report pursuant to this order may rely 
on local requirements to present the information on this section of the 
FOCUS Report.\35\
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    \34\ See SIFMA Letter re: Proposed Order (Germany) at 8; SIFMA 
Letter re: Proposed Order (France) at 15.
    \35\ See paragraph (d) of the ordering language below.
---------------------------------------------------------------------------

v. Report GAAP Used In Memo Field to the FOCUS Report
    As discussed above, the manner and format condition in the 
Commission's substituted compliance orders requires Covered Entities to 
file periodic unaudited financial and operational information with the 
Commission or its designee in the manner and format required by 
Commission rule or order and present the financial information in the 
filing in accordance with GAAP that the Covered Entity uses to prepare 
general purpose publicly available or available to be issued financial 
statements in the home jurisdiction. Under this order, the Covered 
Entity must notify the Commission in a memorandum field accompanying 
the FOCUS Report the GAAP it uses to present the financial information 
in the filing.\36\ This will allow the Commission to better understand 
the information presented in the FOCUS Report and how it may differ 
from information reported by SBS Entities pursuant to U.S. GAAP.
---------------------------------------------------------------------------

    \36\ See paragraph (e) of the ordering language below. In 
particular, the Covered Entity will need to report this information 
in the memorandum field for line item 12003 or 12004 (as applicable) 
of the FOCUS Report Part II if not prudentially regulated or line 
item 12758 or 12759 (as applicable) of the FOCUS Report Part IIC if 
prudentially regulated. Covered Entities may include this GAAP 
notice with the FOCUS Reports Part II and Part IIC (as applicable) 
filed pursuant to instructions on the Commission's website if the 
SEC eFOCUS system is not ready to receive them by the required first 
filing deadline and, thereafter, until the SEC eFOCUS system is 
ready to receive the FOCUS Reports.
---------------------------------------------------------------------------

vii. Follow FOCUS Report Instructions Unless Inconsistent With This 
Order
    Finally, the Covered Entity must follow the instructions for 
completing the FOCUS Report Part II or Part IIC, as applicable, to the 
extent the instructions are not inconsistent with the provisions of the 
order.\37\ This includes presenting information in U.S. dollars (not in 
local currencies).\38\ However, a prudentially regulated Covered Entity 
filing the FOCUS Report Part IIC need not follow instructions referring 
to line items on the Call Report to the extent the Covered Entity does 
not report the required information in a Call Report pursuant to that 
instruction.\39\
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    \37\ See paragraph (f) of the ordering language below.
    \38\ Covered Entities may convert local currencies at a ``top-
line'' level to U.S. dollars at the spot rate applicable on the ``as 
of'' date of the reported amount.
    \39\ If the Covered Entity files a Call Report in the U.S. with 
a prudential regulator pursuant to the instructions for the Call 
Report, it should follow the instructions in the FOCUS Report Part 
IIC to report information in that report to the extent the same 
information is reported by the Covered Entity in the Call Report.
---------------------------------------------------------------------------

III. Conclusion

    It is hereby ordered that a Covered Entity must meet the manner and 
format condition in a Commission order granting conditional substituted 
compliance with respect Exchange Act rule 18a-7 by:
    (a)(1) If not prudentially regulated, filing through the SEC eFOCUS 
system a FOCUS Report Part II 35 calendar days after the end of each 
month; or
    (2) If prudentially regulated, filing through the SEC eFOCUS system 
the FOCUS Report Part IIC 35 calendar days after the end of each 
quarter;
    (b)(1) If not prudentially regulated, entering the required 
information on the line items (as applicable) highlighted on the FOCUS 
Report Part II attached as Appendix A to this order on the FOCUS Report 
Part II filed pursuant to paragraph (a)(1) above; or
    (2) If prudentially regulated, entering the required information on 
the line items (as applicable) highlighted on the FOCUS Report Part IIC 
attached as Appendix B to this order on the FOCUS

[[Page 59212]]

Report Part IIC filed pursuant to paragraph (a)(2) above;
    (c) Presenting the information in the FOCUS Report Part II or Part 
IIC (as applicable) filed pursuant to paragraph (a) above at the entity 
level of the Covered Entity on the same basis (consolidated or 
unconsolidated) that the Covered Entity presents information in the 
financial reports it files in its home jurisdiction;
    (d) Completing the Regulatory Capital section of the FOCUS Report 
Part IIC and presenting the information in that section in accordance 
with the reporting requirements of the Covered Entity's home 
jurisdiction;
    (e) Identifying the generally accepted accounting principles being 
used to present the information in the FOCUS Report Part II or Part IIC 
(as applicable) filed pursuant to paragraph (a) above in the memo field 
for line item 12003, 12004, 12758, or 12759 (as applicable) of the 
report in the SEC eFOCUS system; and
    (f) Reporting the information in the FOCUS Report Part II or Part 
IIC (as applicable) filed pursuant to paragraph (a) above in accordance 
with the instructions for those reports; except that the Covered Entity 
can report the information:
    (1) In a manner consistent with a condition of this order, if the 
instruction conflicts with the condition; or
    (2) In a manner consistent with the requirements of its home 
jurisdiction, if the instruction on the FOCUS Report Part IIC requires 
information submitted on the Call Report and the Covered Entity does 
not report the required information on a Call Report.

    By the Commission.

    Dated: October 14, 2021.
Eduardo A. Aleman,
Deputy Secretary.
BILLING CODE 8011-01-P

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[FR Doc. 2021-22817 Filed 10-25-21; 8:45 am]
BILLING CODE 8011-01-C

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