Proposed Collection; Comment Request, 64566-64569 [2021-25173]

Download as PDF 64566 Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Notices to determine whether the proposed rule change should be approved or disapproved. IV. Solicitation of Comments Interested persons are invited to submit written data, views, and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Act. Comments may be submitted by any of the following methods: Electronic Comments • Use the Commission’s internet comment form (https://www.sec.gov/ rules/sro.shtml); or • Send an email to rule-comments@ sec.gov. Please include File Number SR– NYSE–2021–67 on the subject line. Paper Comments khammond on DSKJM1Z7X2PROD with NOTICES • Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File Number SR–NYSE–2021–67. This file number should be included on the subject line if email is used. To help the Commission process and review your comments more efficiently, please use only one method. The Commission will post all comments on the Commission’s internet website (https://www.sec.gov/ rules/sro.shtml). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. All comments received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. All submissions should refer to File Number SR–NYSE–2021–67, and should be submitted on or before December 9, 2021. VerDate Sep<11>2014 17:11 Nov 17, 2021 Jkt 256001 For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.24 J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–25125 Filed 11–17–21; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–653, OMB Control No. 3235–0703] Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Regulation SCI, Form SCI Notice is hereby given that pursuant to the Paperwork Reduction Act of 1995 (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (‘‘Commission’’) is soliciting comments on the collection of information provided for in Regulation Systems Compliance and Integrity (‘‘Regulation SCI’’) (17 CFR 242.1000–1007) and Form SCI (17 CFR 249.1900) under the Securities Exchange Act of 1934 (‘‘Exchange Act’’) (15 U.S.C. 78a et seq.). The Commission plans to submit this existing collection of information to the Office of Management and Budget (‘‘OMB’’) for extension and approval. Regulation SCI requires certain key market participants to, among other things: (1) Have comprehensive policies and procedures in place to help ensure the robustness and resiliency of their technological systems, and also that their technological systems operate in compliance with the federal securities laws and with their own rules; and (2) provide certain notices and reports to the Commission to improve Commission oversight of securities market infrastructure. Regulation SCI advances the goals of the national market system by enhancing the capacity, integrity, resiliency, availability, and security of the automated systems of entities important to the functioning of the U.S. securities markets, as well as reinforcing the requirement that such systems operate in compliance with the Exchange Act and rules and regulations thereunder, thus strengthening the infrastructure of the U.S. securities markets and improving its resilience 24 17 PO 00000 CFR 200.30–3(a)(12). Frm 00122 Fmt 4703 Sfmt 4703 when technological issues arise. In this respect, Regulation SCI establishes an updated and formalized regulatory framework, thereby helping to ensure more effective Commission oversight of such systems. Respondents consist of national securities exchanges and associations, registered clearing agencies, exempt clearing agencies, plan processors, and alternative trading systems. There are currently 47 respondents, and the Commission staff estimates that, on average, 2 new respondents may become SCI entities each year, 1 of which would be a self-regulatory organization (‘‘SRO’’). Accordingly, Commission staff estimates that over the next three years there will be an average of 49 respondents per year. In addition, in December 2020, the Commission adopted amendments to Regulation SCI in connection with updates to the national market system for the collection, consolidation, and dissemination of information with respect to quotations for and transactions in national market system (‘‘NMS’’) stocks (‘‘Infrastructure Amendments’’). Specifically, the Commission adopted a definition of ‘‘SCI competing consolidator’’ that will subject competing consolidators to Regulation SCI, after a transition period, if they are above a specified consolidated market data gross revenue threshold.1 The Infrastructure Amendments increased the number of respondents to the collections of information in Regulation SCI, and the Commission estimates that seven competing consolidators will meet this definition and be subject to the requirements of Regulation SCI.2 Rule 1001(a) requires each SCI entity to establish, maintain, and enforce written policies and procedures reasonably designed to ensure that its SCI systems and, for purposes of security standards, indirect SCI systems, have levels of capacity, integrity, resiliency, availability, and security, adequate to maintain the SCI entity’s operational capability and promote the maintenance of fair and orderly markets. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 4,511 hours, and the annual ongoing recordkeeping burden for all 54 respondents will be, 1 See Securities Exchange Act Release No. 34– 90610 (December 9, 2020), 86 FR 18596 (April 9, 2021) (File No. S7–03–20) (‘‘Infrastructure Adopting Release’’). 2 Some of these respondents were estimated to incur no, or only part of, the estimated initial burdens because they were already subject to Regulation SCI (i.e., as plan processors, SROs or affiliates of SROs). E:\FR\FM\18NON1.SGM 18NON1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Notices on average, 12,528 hours. The Commission staff estimates that the 7 new respondents would incur, on average, an annual initial internal cost of compliance of $1,513,382, as well as outside legal or consulting costs of $305,500. In addition, all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $4,205,412. Rule 1001(b) requires each SCI entity to establish, maintain, and enforce written policies and procedures reasonably designed to ensure that its SCI systems operate in a manner that complies with the Exchange Act and the rules and regulations thereunder and the entity’s rules and governing documents, as applicable. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 1,755 hours, and the annual ongoing recordkeeping burden for all respondents will be, on average, 8,010 hours. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $660,270, as well as outside legal or consulting costs of $175,500. In addition, all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $2,539,890. Rule 1001(c) requires each SCI entity to establish, maintain, and enforce reasonably designed written policies and procedures that include the criteria for identifying responsible SCI personnel, the designation and documentation of responsible SCI personnel, and escalation procedures to quickly inform responsible SCI personnel of potential SCI events. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 741 hours, and the annual ongoing recordkeeping burden for all respondents will be, on average, 2,106. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $276,432, and all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $839,592. Rule 1004 requires each SCI entity to establish standards for the designation of certain members or participants for BC/DR plan testing, to designate members or participants in accordance with these standards, to require participation by designated members or participants in such testing at least annually, and to coordinate such testing on an industry- or sector-wide basis with other SCI entities. The Commission staff estimates that the total annual initial recordkeeping burden for 9 new respondents will be 2,700 hours, and VerDate Sep<11>2014 17:11 Nov 17, 2021 Jkt 256001 the annual ongoing recordkeeping burden for all respondents that are not plan processors will be, on average, 7,290 hours. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $804,735. In addition, all respondents that are not plan processors will incur, on average, an estimated ongoing annual internal cost of compliance of $1,939,950. In addition, the Commission staff estimates that the 2 plan processor respondents will incur an estimated ongoing annual cost of $108,000 for outside legal services ($54,000 per plan processor respondent × 2 respondents). Rule 1002(b)(1) requires each SCI entity, upon any responsible SCI personnel having a reasonable basis to conclude that an SCI event has occurred, to notify the Commission immediately. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 432 hours. The Commission staff estimates that respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $133,030. Rule 1002(b)(2) requires each SCI entity, within 24 hours of any responsible SCI personnel having a reasonable basis to conclude that the SCI event has occurred, to submit a written notification to the Commission pertaining to the SCI event on a good faith, best efforts basis. These notifications are required to be submitted on Form SCI. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 6,480 hours. The Commission staff estimates that respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $2,134,890. Rule 1002(b)(3) requires each SCI entity to provide updates to the Commission pertaining to an SCI event on a regular basis, or at such frequency as reasonably requested by a representative of the Commission, until the SCI event is resolved and the SCI entity’s investigation of the SCI event is closed. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 567 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $177,106.50. Rule 1002(b)(4) requires each SCI entity to submit written interim reports, as necessary, and a written final report regarding an SCI event to the Commission. These reports are required to be submitted on Form SCI. The PO 00000 Frm 00123 Fmt 4703 Sfmt 4703 64567 Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 9,450 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $3,297,510. Rule 1002(b)(5) requires each SCI entity to submit to the Commission quarterly reports containing a summary description of any systems disruption or systems intrusion that has had, or the SCI entity reasonably estimates would have, no or a de minimis impact on the SCI entity’s operations or on market participants. These reports are required to be submitted on Form SCI. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 8,640 hours. The Commission staff estimates that respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $2,919,348. In addition, the Commission staff estimates that all 54 respondents will incur, on average, annual costs of $313,200 for outside legal advice in preparation of certain notifications required by Rule 1002(b). Rule 1002(c)(1)(i) requires each SCI entity, promptly after any responsible SCI personnel has a reasonable basis to conclude that an SCI event (other than a systems intrusion) has occurred, to disseminate certain information to its members or participants. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 1,134 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $741,557.50. Rule 1002(c)(1)(ii) requires each SCI entity, when known, to promptly disseminate additional information about an SCI event (other than a systems intrusion) to its members or participants. Rule 1002(c)(1)(iii) requires each SCI entity to provide to its members or participants regular updates of any information required to be disseminated under Rules 1002(c)(1)(i) and (ii) until the SCI event is resolved. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 6,318 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $2,496,096. Rule 1002(c)(2) requires each SCI entity to disseminate certain information regarding a systems intrusion to its members or participants, E:\FR\FM\18NON1.SGM 18NON1 khammond on DSKJM1Z7X2PROD with NOTICES 64568 Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Notices and provides an exception when the SCI entity determines that dissemination of such information would likely compromise the security of its SCI systems or indirect SCI systems, or an investigation of the systems intrusion, and documents the reasons for such determination. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 540 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $212,827.25. In addition, the Commission staff estimates that all 54 respondents will incur, on average, annual costs of $179,280 for outside legal advice in preparation of certain notifications required by Rule 1002(c). Rule 1003(a)(1) requires each SCI entity to submit to the Commission quarterly reports describing completed, ongoing, and planned material changes to its SCI systems and security of indirect SCI systems during the prior, current, and subsequent calendar quarters. These reports are required to be submitted on Form SCI. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 27,000 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $8,063,820. Rule 1003(a)(2) requires each SCI entity to promptly submit a supplemental report notifying the Commission of a material error in or material omission from a report previously submitted under Rule 1003(a)(1). These reports are required to be submitted on Form SCI. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 810 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $256,716. Rule 1003(b)(1) requires each SCI entity to conduct an SCI review of its compliance with Regulation SCI not less than once each calendar year, with an exception for penetration test reviews, which are required to be conducted not less than once every three years. Rule 1003(b)(1) also provides an exception for assessments of SCI systems directly supporting market regulation or market surveillance, which are required to be conducted at a frequency based on the risk assessment conducted as part of the SCI review, but in no case less than once every three years. Rule 1003(b)(2) requires each SCI entity to submit a VerDate Sep<11>2014 17:11 Nov 17, 2021 Jkt 256001 report of the SCI review to senior management no more than 30 calendar days after completion of the review. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 37,260 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $11,934,810. Rule 1003(b)(3) requires each SCI entity to submit the report of the SCI review to the Commission and to its board of directors or the equivalent of such board, together with any response by senior management, within 60 calendar days after its submission to senior management. These reports are required to be submitted on Form SCI. The Commission staff estimates that the total annual ongoing burden for all 54 respondents will be, on average, 54 hours. The Commission staff estimates that all respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $22,248. In addition, the Commission staff estimates that all respondents will incur, on average, annual costs of $2,700,000 for outside legal advice in preparation of certain notifications required by Rule 1003(b). Rule 1006 requires each SCI entity, with a few exceptions, to file any notification, review, description, analysis, or report to the Commission required under Regulation SCI electronically on Form SCI through the EFFS. An SCI entity will submit to the Commission an EAUF to register each individual at the SCI entity who will access the EFFS system on behalf of the SCI entity. The Commission staff estimates that the total annual initial burden for 7 new respondents will be 1.95 hours, and the annual ongoing burden for all respondents will be, on average, 8.1 hours. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $806. In addition, all 54 respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $3,348, as well as outside costs to obtain a digital ID of $2,700. Rule 1002(a) requires each SCI entity, upon any responsible SCI personnel having a reasonable basis to conclude that an SCI event has occurred, to begin to take appropriate corrective action. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 741 hours, and the annual ongoing recordkeeping burden for all 54 respondents will be, on average, 2,106 hours. The Commission staff estimates PO 00000 Frm 00124 Fmt 4703 Sfmt 4703 that the 7 new respondents would incur an initial internal cost of compliance of $276,432. In addition, all 54 respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $831,438. Rule 1003(a)(1) requires each SCI entity to establish reasonable written criteria for identifying a change to its SCI systems and the security of indirect SCI systems as material. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 741 hours, and the annual ongoing recordkeeping burden for all 54 respondents will be, on average, 1,458 hours. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $276,432. In addition, all 54 respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $622,944. Regulation SCI also requires SCI entities to identify certain types of events and systems. The Commission staff estimates that the total annual initial recordkeeping burden for 7 new respondents will be 1,287 hours, and the annual ongoing recordkeeping burden for all 54 respondents will be, on average, 2,106 hours. The Commission staff estimates that the 7 new respondents would incur an initial internal cost of compliance of $453,089. In addition, all 54 respondents will incur, on average, an estimated ongoing annual internal cost of compliance of $831,438. Rules 1005 and 1007 establish recordkeeping requirements for SCI entities other than SROs. The Commission staff estimates that for 6 new respondents that are not SROs the average annual initial burden would be 935 hours, and the annual ongoing burden for all 18 respondents will be, on average, 450 hours. The Commission staff estimates that 6 new respondents would incur an estimated internal initial internal cost of compliance of $64,515, as well as a one-time cost of $5,400 to modify existing recordkeeping systems. In addition, all 18 respondents will incur, on average, an estimated ongoing internal cost of compliance of $31,050. Written comments are invited on: (a) Whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; (b) the accuracy of the Commission’s estimates of the burden of the proposed collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; and E:\FR\FM\18NON1.SGM 18NON1 Federal Register / Vol. 86, No. 220 / Thursday, November 18, 2021 / Notices (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology. Consideration will be given to comments and suggestions submitted in writing within 60 days of this publication. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information under the PRA unless it displays a currently valid OMB control number. Please direct your written comments to: David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: PRA_ Mailbox@sec.gov. Dated: November 15, 2021. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2021–25173 Filed 11–17–21; 8:45 am] BILLING CODE 8011–01–P [Release Nos. 33–11007; 34–93573; File No. 265–28] Investor Advisory Committee Meeting The Securities and Exchange Commission Investor Advisory Committee, established pursuant to Section 911 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, is providing notice that it will hold a public meeting. The public is invited to submit written statements to the Committee. DATES: The meeting will be held on Thursday, December 2, 2021 from 10:00 a.m. until 4:00 p.m. (ET). Written statements should be received on or before December 1, 2021. ADDRESSES: The meeting will be conducted by remote means and/or at the Commission’s headquarters, 100 F St NE, Washington, DC 20549. The meeting will be webcast on the Commission’s website at www.sec.gov. Written statements may be submitted by any of the following methods: khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: Electronic Statements D Use the Commission’s internet submission form (https://www.sec.gov/ rules/other.shtml); or D Send an email message to rulescomments@sec.gov. Please include File No. 265–28 on the subject line; or Jkt 256001 Marc Oorloff Sharma, Chief Counsel, Office of the Investor Advocate, at (202) 551–3302, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The meeting will be open to the public, except during that portion of the meeting reserved for an administrative work session during lunch. Persons needing special accommodations to take part because of a disability should notify the contact person listed in the section above entitled FOR FURTHER INFORMATION CONTACT. The agenda for the meeting includes: opening remarks, announcement of new officers, and announcement regarding a disclosure subcommittee; welcome remarks; approval of previous meeting minutes; a panel discussion regarding crypto and digital assets: helping to ensure investor protection and market integrity in the face of new technologies; a panel discussion regarding the SEC’s potential role in addressing elder financial abuse issues; a discussion of a recommendation regarding individual retirement accounts; subcommittee reports; and a non-public administrative session. SUPPLEMENTARY INFORMATION: Securities and Exchange Commission. ACTION: Notice of meeting. AGENCY: 17:11 Nov 17, 2021 D Send paper statements to Vanessa A. Countryman, Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549–1090. All submissions should refer to File No. 265–28. This file number should be included on the subject line if email is used. To help us process and review your statement more efficiently, please use only one method. Statements also will be available for website viewing and printing in the Commission’s Public Reference Room, 100 F Street NE, Room 1503, Washington, DC 20549, on official business days between the hours of 10:00 a.m. and 3:00 p.m. All statements received will be posted without change. Persons submitting comments are cautioned that we do not redact or edit personal identifying information from comment submissions. You should submit only information that you wish to make available publicly. FOR FURTHER INFORMATION CONTACT: SECURITIES AND EXCHANGE COMMISSION VerDate Sep<11>2014 Paper Statements Dated: November 15, 2021. Vanessa A. Countryman, Secretary. [FR Doc. 2021–25188 Filed 11–17–21; 8:45 am] BILLING CODE 8011–01–P PO 00000 Frm 00125 Fmt 4703 Sfmt 4703 64569 SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–603, OMB Control No. 3235–0658] Proposed Collection; Comment Request Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Extension: Rule 22e–3 Notice is hereby given that, under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501–3520), the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget a request for extension of the previously approved collection of information discussed below. Section 22(e) of the Investment Company Act [15 U.S.C. 80a–22(e)] (‘‘Act’’) generally prohibits funds, including money market funds, from suspending the right of redemption, and from postponing the payment or satisfaction upon redemption of any redeemable security for more than seven days. The provision was designed to prevent funds and their investment advisers from interfering with the redemption rights of shareholders for improper purposes, such as the preservation of management fees. Although section 22(e) permits funds to postpone the date of payment or satisfaction upon redemption for up to seven days, it does not permit funds to suspend the right of redemption for any amount of time, absent certain specified circumstances or a Commission order. Rule 22e–3 under the Act [17 CFR 270.22e–3] exempts money market funds from section 22(e) to permit them to suspend redemptions in order to facilitate an orderly liquidation of the fund. Specifically, rule 22e–3 permits a money market fund to suspend redemptions and postpone the payment of proceeds pending board-approved liquidation proceedings if: (i) The fund’s board of directors, including a majority of disinterested directors, determines pursuant to § 270.2a–7(c)(8)(ii)(C) that the extent of the deviation between the fund’s amortized cost price per share and its current net asset value per share calculated using available market quotations (or an appropriate substitute that reflects current market conditions) may result in material dilution or other unfair results to investors or existing shareholders; (ii) the fund’s board of directors, including a majority of E:\FR\FM\18NON1.SGM 18NON1

Agencies

[Federal Register Volume 86, Number 220 (Thursday, November 18, 2021)]
[Notices]
[Pages 64566-64569]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-25173]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-653, OMB Control No. 3235-0703]


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

Extension:
    Regulation SCI, Form SCI

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the collection of 
information provided for in Regulation Systems Compliance and Integrity 
(``Regulation SCI'') (17 CFR 242.1000-1007) and Form SCI (17 CFR 
249.1900) under the Securities Exchange Act of 1934 (``Exchange Act'') 
(15 U.S.C. 78a et seq.). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    Regulation SCI requires certain key market participants to, among 
other things: (1) Have comprehensive policies and procedures in place 
to help ensure the robustness and resiliency of their technological 
systems, and also that their technological systems operate in 
compliance with the federal securities laws and with their own rules; 
and (2) provide certain notices and reports to the Commission to 
improve Commission oversight of securities market infrastructure.
    Regulation SCI advances the goals of the national market system by 
enhancing the capacity, integrity, resiliency, availability, and 
security of the automated systems of entities important to the 
functioning of the U.S. securities markets, as well as reinforcing the 
requirement that such systems operate in compliance with the Exchange 
Act and rules and regulations thereunder, thus strengthening the 
infrastructure of the U.S. securities markets and improving its 
resilience when technological issues arise. In this respect, Regulation 
SCI establishes an updated and formalized regulatory framework, thereby 
helping to ensure more effective Commission oversight of such systems.
    Respondents consist of national securities exchanges and 
associations, registered clearing agencies, exempt clearing agencies, 
plan processors, and alternative trading systems. There are currently 
47 respondents, and the Commission staff estimates that, on average, 2 
new respondents may become SCI entities each year, 1 of which would be 
a self-regulatory organization (``SRO''). Accordingly, Commission staff 
estimates that over the next three years there will be an average of 49 
respondents per year.
    In addition, in December 2020, the Commission adopted amendments to 
Regulation SCI in connection with updates to the national market system 
for the collection, consolidation, and dissemination of information 
with respect to quotations for and transactions in national market 
system (``NMS'') stocks (``Infrastructure Amendments''). Specifically, 
the Commission adopted a definition of ``SCI competing consolidator'' 
that will subject competing consolidators to Regulation SCI, after a 
transition period, if they are above a specified consolidated market 
data gross revenue threshold.\1\ The Infrastructure Amendments 
increased the number of respondents to the collections of information 
in Regulation SCI, and the Commission estimates that seven competing 
consolidators will meet this definition and be subject to the 
requirements of Regulation SCI.\2\ Rule 1001(a) requires each SCI 
entity to establish, maintain, and enforce written policies and 
procedures reasonably designed to ensure that its SCI systems and, for 
purposes of security standards, indirect SCI systems, have levels of 
capacity, integrity, resiliency, availability, and security, adequate 
to maintain the SCI entity's operational capability and promote the 
maintenance of fair and orderly markets. The Commission staff estimates 
that the total annual initial recordkeeping burden for 7 new 
respondents will be 4,511 hours, and the annual ongoing recordkeeping 
burden for all 54 respondents will be,

[[Page 64567]]

on average, 12,528 hours. The Commission staff estimates that the 7 new 
respondents would incur, on average, an annual initial internal cost of 
compliance of $1,513,382, as well as outside legal or consulting costs 
of $305,500. In addition, all respondents will incur, on average, an 
estimated ongoing annual internal cost of compliance of $4,205,412.
---------------------------------------------------------------------------

    \1\ See Securities Exchange Act Release No. 34-90610 (December 
9, 2020), 86 FR 18596 (April 9, 2021) (File No. S7-03-20) 
(``Infrastructure Adopting Release'').
    \2\ Some of these respondents were estimated to incur no, or 
only part of, the estimated initial burdens because they were 
already subject to Regulation SCI (i.e., as plan processors, SROs or 
affiliates of SROs).
---------------------------------------------------------------------------

    Rule 1001(b) requires each SCI entity to establish, maintain, and 
enforce written policies and procedures reasonably designed to ensure 
that its SCI systems operate in a manner that complies with the 
Exchange Act and the rules and regulations thereunder and the entity's 
rules and governing documents, as applicable. The Commission staff 
estimates that the total annual initial recordkeeping burden for 7 new 
respondents will be 1,755 hours, and the annual ongoing recordkeeping 
burden for all respondents will be, on average, 8,010 hours. The 
Commission staff estimates that the 7 new respondents would incur an 
initial internal cost of compliance of $660,270, as well as outside 
legal or consulting costs of $175,500. In addition, all respondents 
will incur, on average, an estimated ongoing annual internal cost of 
compliance of $2,539,890.
    Rule 1001(c) requires each SCI entity to establish, maintain, and 
enforce reasonably designed written policies and procedures that 
include the criteria for identifying responsible SCI personnel, the 
designation and documentation of responsible SCI personnel, and 
escalation procedures to quickly inform responsible SCI personnel of 
potential SCI events. The Commission staff estimates that the total 
annual initial recordkeeping burden for 7 new respondents will be 741 
hours, and the annual ongoing recordkeeping burden for all respondents 
will be, on average, 2,106. The Commission staff estimates that the 7 
new respondents would incur an initial internal cost of compliance of 
$276,432, and all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $839,592.
    Rule 1004 requires each SCI entity to establish standards for the 
designation of certain members or participants for BC/DR plan testing, 
to designate members or participants in accordance with these 
standards, to require participation by designated members or 
participants in such testing at least annually, and to coordinate such 
testing on an industry- or sector-wide basis with other SCI entities. 
The Commission staff estimates that the total annual initial 
recordkeeping burden for 9 new respondents will be 2,700 hours, and the 
annual ongoing recordkeeping burden for all respondents that are not 
plan processors will be, on average, 7,290 hours. The Commission staff 
estimates that the 7 new respondents would incur an initial internal 
cost of compliance of $804,735. In addition, all respondents that are 
not plan processors will incur, on average, an estimated ongoing annual 
internal cost of compliance of $1,939,950. In addition, the Commission 
staff estimates that the 2 plan processor respondents will incur an 
estimated ongoing annual cost of $108,000 for outside legal services 
($54,000 per plan processor respondent x 2 respondents).
    Rule 1002(b)(1) requires each SCI entity, upon any responsible SCI 
personnel having a reasonable basis to conclude that an SCI event has 
occurred, to notify the Commission immediately. The Commission staff 
estimates that the total annual ongoing burden for all 54 respondents 
will be, on average, 432 hours. The Commission staff estimates that 
respondents will incur, on average, an estimated ongoing annual 
internal cost of compliance of $133,030.
    Rule 1002(b)(2) requires each SCI entity, within 24 hours of any 
responsible SCI personnel having a reasonable basis to conclude that 
the SCI event has occurred, to submit a written notification to the 
Commission pertaining to the SCI event on a good faith, best efforts 
basis. These notifications are required to be submitted on Form SCI. 
The Commission staff estimates that the total annual ongoing burden for 
all 54 respondents will be, on average, 6,480 hours. The Commission 
staff estimates that respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $2,134,890.
    Rule 1002(b)(3) requires each SCI entity to provide updates to the 
Commission pertaining to an SCI event on a regular basis, or at such 
frequency as reasonably requested by a representative of the 
Commission, until the SCI event is resolved and the SCI entity's 
investigation of the SCI event is closed. The Commission staff 
estimates that the total annual ongoing burden for all 54 respondents 
will be, on average, 567 hours. The Commission staff estimates that all 
respondents will incur, on average, an estimated ongoing annual 
internal cost of compliance of $177,106.50.
    Rule 1002(b)(4) requires each SCI entity to submit written interim 
reports, as necessary, and a written final report regarding an SCI 
event to the Commission. These reports are required to be submitted on 
Form SCI. The Commission staff estimates that the total annual ongoing 
burden for all 54 respondents will be, on average, 9,450 hours. The 
Commission staff estimates that all respondents will incur, on average, 
an estimated ongoing annual internal cost of compliance of $3,297,510.
    Rule 1002(b)(5) requires each SCI entity to submit to the 
Commission quarterly reports containing a summary description of any 
systems disruption or systems intrusion that has had, or the SCI entity 
reasonably estimates would have, no or a de minimis impact on the SCI 
entity's operations or on market participants. These reports are 
required to be submitted on Form SCI. The Commission staff estimates 
that the total annual ongoing burden for all 54 respondents will be, on 
average, 8,640 hours. The Commission staff estimates that respondents 
will incur, on average, an estimated ongoing annual internal cost of 
compliance of $2,919,348.
    In addition, the Commission staff estimates that all 54 respondents 
will incur, on average, annual costs of $313,200 for outside legal 
advice in preparation of certain notifications required by Rule 
1002(b).
    Rule 1002(c)(1)(i) requires each SCI entity, promptly after any 
responsible SCI personnel has a reasonable basis to conclude that an 
SCI event (other than a systems intrusion) has occurred, to disseminate 
certain information to its members or participants. The Commission 
staff estimates that the total annual ongoing burden for all 54 
respondents will be, on average, 1,134 hours. The Commission staff 
estimates that all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $741,557.50.
    Rule 1002(c)(1)(ii) requires each SCI entity, when known, to 
promptly disseminate additional information about an SCI event (other 
than a systems intrusion) to its members or participants. Rule 
1002(c)(1)(iii) requires each SCI entity to provide to its members or 
participants regular updates of any information required to be 
disseminated under Rules 1002(c)(1)(i) and (ii) until the SCI event is 
resolved. The Commission staff estimates that the total annual ongoing 
burden for all 54 respondents will be, on average, 6,318 hours. The 
Commission staff estimates that all respondents will incur, on average, 
an estimated ongoing annual internal cost of compliance of $2,496,096.
    Rule 1002(c)(2) requires each SCI entity to disseminate certain 
information regarding a systems intrusion to its members or 
participants,

[[Page 64568]]

and provides an exception when the SCI entity determines that 
dissemination of such information would likely compromise the security 
of its SCI systems or indirect SCI systems, or an investigation of the 
systems intrusion, and documents the reasons for such determination. 
The Commission staff estimates that the total annual ongoing burden for 
all 54 respondents will be, on average, 540 hours. The Commission staff 
estimates that all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $212,827.25.
    In addition, the Commission staff estimates that all 54 respondents 
will incur, on average, annual costs of $179,280 for outside legal 
advice in preparation of certain notifications required by Rule 
1002(c).
    Rule 1003(a)(1) requires each SCI entity to submit to the 
Commission quarterly reports describing completed, ongoing, and planned 
material changes to its SCI systems and security of indirect SCI 
systems during the prior, current, and subsequent calendar quarters. 
These reports are required to be submitted on Form SCI. The Commission 
staff estimates that the total annual ongoing burden for all 54 
respondents will be, on average, 27,000 hours. The Commission staff 
estimates that all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $8,063,820.
    Rule 1003(a)(2) requires each SCI entity to promptly submit a 
supplemental report notifying the Commission of a material error in or 
material omission from a report previously submitted under Rule 
1003(a)(1). These reports are required to be submitted on Form SCI. The 
Commission staff estimates that the total annual ongoing burden for all 
54 respondents will be, on average, 810 hours. The Commission staff 
estimates that all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $256,716.
    Rule 1003(b)(1) requires each SCI entity to conduct an SCI review 
of its compliance with Regulation SCI not less than once each calendar 
year, with an exception for penetration test reviews, which are 
required to be conducted not less than once every three years. Rule 
1003(b)(1) also provides an exception for assessments of SCI systems 
directly supporting market regulation or market surveillance, which are 
required to be conducted at a frequency based on the risk assessment 
conducted as part of the SCI review, but in no case less than once 
every three years. Rule 1003(b)(2) requires each SCI entity to submit a 
report of the SCI review to senior management no more than 30 calendar 
days after completion of the review. The Commission staff estimates 
that the total annual ongoing burden for all 54 respondents will be, on 
average, 37,260 hours. The Commission staff estimates that all 
respondents will incur, on average, an estimated ongoing annual 
internal cost of compliance of $11,934,810.
    Rule 1003(b)(3) requires each SCI entity to submit the report of 
the SCI review to the Commission and to its board of directors or the 
equivalent of such board, together with any response by senior 
management, within 60 calendar days after its submission to senior 
management. These reports are required to be submitted on Form SCI. The 
Commission staff estimates that the total annual ongoing burden for all 
54 respondents will be, on average, 54 hours. The Commission staff 
estimates that all respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $22,248.
    In addition, the Commission staff estimates that all respondents 
will incur, on average, annual costs of $2,700,000 for outside legal 
advice in preparation of certain notifications required by Rule 
1003(b).
    Rule 1006 requires each SCI entity, with a few exceptions, to file 
any notification, review, description, analysis, or report to the 
Commission required under Regulation SCI electronically on Form SCI 
through the EFFS. An SCI entity will submit to the Commission an EAUF 
to register each individual at the SCI entity who will access the EFFS 
system on behalf of the SCI entity. The Commission staff estimates that 
the total annual initial burden for 7 new respondents will be 1.95 
hours, and the annual ongoing burden for all respondents will be, on 
average, 8.1 hours. The Commission staff estimates that the 7 new 
respondents would incur an initial internal cost of compliance of $806. 
In addition, all 54 respondents will incur, on average, an estimated 
ongoing annual internal cost of compliance of $3,348, as well as 
outside costs to obtain a digital ID of $2,700.
    Rule 1002(a) requires each SCI entity, upon any responsible SCI 
personnel having a reasonable basis to conclude that an SCI event has 
occurred, to begin to take appropriate corrective action. The 
Commission staff estimates that the total annual initial recordkeeping 
burden for 7 new respondents will be 741 hours, and the annual ongoing 
recordkeeping burden for all 54 respondents will be, on average, 2,106 
hours. The Commission staff estimates that the 7 new respondents would 
incur an initial internal cost of compliance of $276,432. In addition, 
all 54 respondents will incur, on average, an estimated ongoing annual 
internal cost of compliance of $831,438.
    Rule 1003(a)(1) requires each SCI entity to establish reasonable 
written criteria for identifying a change to its SCI systems and the 
security of indirect SCI systems as material. The Commission staff 
estimates that the total annual initial recordkeeping burden for 7 new 
respondents will be 741 hours, and the annual ongoing recordkeeping 
burden for all 54 respondents will be, on average, 1,458 hours. The 
Commission staff estimates that the 7 new respondents would incur an 
initial internal cost of compliance of $276,432. In addition, all 54 
respondents will incur, on average, an estimated ongoing annual 
internal cost of compliance of $622,944.
    Regulation SCI also requires SCI entities to identify certain types 
of events and systems. The Commission staff estimates that the total 
annual initial recordkeeping burden for 7 new respondents will be 1,287 
hours, and the annual ongoing recordkeeping burden for all 54 
respondents will be, on average, 2,106 hours. The Commission staff 
estimates that the 7 new respondents would incur an initial internal 
cost of compliance of $453,089. In addition, all 54 respondents will 
incur, on average, an estimated ongoing annual internal cost of 
compliance of $831,438.
    Rules 1005 and 1007 establish recordkeeping requirements for SCI 
entities other than SROs. The Commission staff estimates that for 6 new 
respondents that are not SROs the average annual initial burden would 
be 935 hours, and the annual ongoing burden for all 18 respondents will 
be, on average, 450 hours. The Commission staff estimates that 6 new 
respondents would incur an estimated internal initial internal cost of 
compliance of $64,515, as well as a one-time cost of $5,400 to modify 
existing recordkeeping systems. In addition, all 18 respondents will 
incur, on average, an estimated ongoing internal cost of compliance of 
$31,050.
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and

[[Page 64569]]

(d) ways to minimize the burden of the collection of information on 
respondents, including through the use of automated collection 
techniques or other forms of information technology. Consideration will 
be given to comments and suggestions submitted in writing within 60 
days of this publication.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o John 
Pezzullo, 100 F Street NE, Washington, DC 20549, or send an email to: 
[email protected].

    Dated: November 15, 2021.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-25173 Filed 11-17-21; 8:45 am]
BILLING CODE 8011-01-P
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