Submission for OMB Review; Comment Request, 3135-3137 [2022-01057]

Download as PDF Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices recommendations for the proposed information collection should be sent within 30 days of publication of this notice to (i) MBX.OMB.OIRA.SEC_desk_ officer@omb.eop.gov and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@ sec.gov. Dated: January 14, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–01058 Filed 1–19–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–523, OMB Control No. 3235–0585] lotter on DSK11XQN23PROD with NOTICES1 Submission for OMB Review; Comment Request; Extension: Rule 206(4)–7 Upon Written Request, Copies Available From: Securities and Exchange Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 20549–2736 Notice is hereby given that, pursuant to the Paperwork Reduction Act of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange Commission (the ‘‘Commission’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for extension of the previously approved collection of information discussed below. The title for the collection of information is ‘‘Investment Advisers Act rule 206(4)–7, 17 CFR Sec. 275.206(4)– 7, Compliance procedures and practices.’’ This collection of information is found at 17 CFR 275.206(4)–7, and is mandatory. Rule 206(4)–7 under the Investment Advisers Act of 1940 (‘‘Advisers Act’’) requires each investment adviser registered with the Commission to (1) adopt and implement written policies and procedures reasonably designed to prevent violations of the Advisers Act and its rules, (2) review those compliance policies and procedures annually, and (3) designate a chief compliance officer who is responsible for administering the compliance policies and procedures. The rule is designed to protect investors by fostering better compliance with the securities laws. The collection of information under rule 206(4)–7 is necessary to help ensure that investment advisers maintain comprehensive internal programs that VerDate Sep<11>2014 17:16 Jan 19, 2022 Jkt 256001 promote the advisers’ compliance with the Advisers Act and its rules. The Commission’s examination and oversight staff may review the information collected to assess investment advisers’ compliance programs. Responses provided to the Commission pursuant to the rule in the context of the Commission’s examination and oversight program are generally kept confidential. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid control number. The respondents to this information collection are investment advisers registered with the Commission. Updated data indicate that there were 14,376 advisers registered with the Commission as of August 2021. Each respondent would produce one response, per year. Commission staff has estimated that compliance with rule 206(4)–7 imposes an annual burden of approximately 90 hours per response. Based on this figure, Commission staff estimates a total annual burden of 1,293,840 hours for this collection of information. The public may view the background documentation for this information collection at the following website, www.reginfo.gov. Comments should be directed to: (1) Desk Officer for the Securities and Exchange Commission, Office of Information and Regulatory Affairs, Office of Management and Budget, Room 10102, New Executive Office Building, Washington, DC 20503, or by sending an email to: Lindsay.M.Abate@omb.eop.gov; and (2) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John R. Pezzullo, 100 F Street NE, Washington, DC 20549 or send an email to: PRA_ Mailbox@sec.gov. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to www.reginfo.gov/public/do/ PRAMain. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Dated: January 14, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–01061 Filed 1–19–22; 8:45 am] BILLING CODE 8011–01–P PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 3135 SECURITIES AND EXCHANGE COMMISSION [SEC File No. 270–586, OMB Control No. 3235–0647] Submission for OMB Review; 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 204 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’’) has submitted to the Office of Management and Budget (‘‘OMB’’) a request for approval of extension of the previously approved collection of information provided for in Rule 204 (17 CFR 242.204), under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.). Rule 204(a) provides that a participant of a registered clearing agency must deliver securities to a registered clearing agency for clearance and settlement on a long or short sale in any equity security by settlement date, or if a participant of a registered clearing agency has a fail to deliver position at a registered clearing agency in any equity security for a long or short sale transaction in the equity security, the participant shall, by no later than the beginning of regular trading hours on the applicable close-out date, immediately close out its fail to deliver positions by borrowing or purchasing securities of like kind and quantity. For a short sale transaction, the participant must close out a fail to deliver by no later than the beginning of regular trading hours on the settlement day following the settlement date. If a participant has a fail to deliver that the participant can demonstrate on its books and records resulted from a long sale, or that is attributable to bona-fide market making activities, the participant must close out the fail to deliver by no later than the beginning of regular trading hours on the third consecutive settlement day following the settlement date. Rule 204 is intended to help further the Commission’s goal of reducing fails to deliver by maintaining the reductions in fails to deliver achieved by the adoption of temporary Rule 204T, as well as other actions taken by the Commission. In addition, Rule 204 is intended to help further the Commission’s goal of addressing E:\FR\FM\20JAN1.SGM 20JAN1 3136 Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices lotter on DSK11XQN23PROD with NOTICES1 potentially abusive ‘‘naked’’ short selling in all equity securities. The information collected under Rule 204 will continue to be retained and/or provided to other entities pursuant to the specific rule provisions and will be available to the Commission and selfregulatory organization (‘‘SRO’’) examiners upon request. The information collected will continue to aid the Commission and SROs in monitoring compliance with these requirements. In addition, the information collected will aid those subject to Rule 204 in complying with its requirements. These collections of information are mandatory. Several provisions under Rule 204 will impose a ‘‘collection of information’’ within the meaning of the Paperwork Reduction Act. I. Allocation Notification Requirement: As of December 31, 2020, there were 3,551 registered brokerdealers.1 Each of these broker-dealers could clear trades through a participant of a registered clearing agency and, therefore, become subject to the notification requirements of Rule 204(d). If a participant allocates a fail to deliver position to a broker or dealer pursuant to Rule 204(d), the broker or dealer that has been allocated the fail to deliver position in an equity security must determine whether such fail to deliver position was closed out in accordance with Rule 204(a). If such broker or dealer does not comply with the provisions of Rule 204(a), such broker or dealer must immediately notify the participant that it has become subject to the requirements of Rule 204(b). The Commission estimates that a broker or dealer could have to make such determination and notification with respect to approximately 2.1 equity securities per day.2 The Commission estimates a total of 1,886,646 potential notifications in accordance with Rule 204(d) across all registered brokerdealers that could be allocated responsibility to close out a fail to deliver position per year (3,551 registered broker-dealers notifying participants once per day 3 on 2.1 equity 1 The Commission’s Division of Economic and Risk Analysis (‘‘DERA’’) estimates that there were approximately 3,551 registered broker-dealers as of December 31, 2020. 2 DERA estimates that there were approximately 7,450 average daily fail to deliver positions during 2020. Across 3,551 registered broker-dealers, the number of securities per registered broker-dealer per trading day is approximately 2.1 (7,450 ÷ 3,551) equity securities. 3 Because failure to comply with the close-out requirements of Rule 204(a) is a violation of the rule, the Commission believes that a broker or dealer would make the notification to a participant that it is subject to the borrowing requirements of Rule 204(b) at most once per day. VerDate Sep<11>2014 17:16 Jan 19, 2022 Jkt 256001 securities, multiplied by 253 trading days in 2020). The total estimated annual burden hours per year will be approximately 301,864 burden hours (1,886,646 multiplied by 0.16 hours/ notification 4). II. Demonstration Requirement for Fails to Deliver on Long Sales: As of December 31, 2020, there were 127 participants of NSCC that were registered as broker-dealers. If a participant of a registered clearing agency has a fail to deliver position in an equity security at a registered clearing agency and determined that such fail to deliver position resulted from a long sale, the Commission estimates that a participant of a registered clearing agency will have to make such determination with respect to approximately 29 securities per day.5 The Commission estimates a total of 931,799 potential demonstrations in accordance with Rule 204(a)(1) across all broker-dealer participants per year (127 participants checking for compliance once per day on 29 securities, multiplied by 253 trading days in 2020). The total approximate estimated annual burden hour per year will be approximately 149,088 burden hours (931,799 multiplied by 0.16 hours/demonstration 6). III. Pre-Borrow Notification Requirement: As of December 31, 2020, there were 27 participants of NSCC that were registered as broker-dealers. If a participant of a registered clearing agency has a fail to deliver position in an equity security, the participant must determine whether the fail to deliver position was closed out in accordance with Rule 204(a). The Commission estimates that a participant of a registered clearing agency will have to make such determination with respect to approximately 59 equity securities per day.7 The Commission estimates a total of 1,895,729 potential notifications in accordance with Rule 204(c) across all participants per year (127 broker4 See Amendments to Regulation SHO, Exchange Act Release No. 60388 (July 27, 2009), 74 FR 38265 (July 31, 2009) (‘‘Rule 204 Adopting Release’’) (making permanent the amendments to Regulation SHO contained in Interim Final Temporary Rule 204T and incorporating by reference the time estimates from the Rule 204T Adopting Release for compliance with the notification, demonstration, and certification requirements of Rule 204). 5 DERA estimates that during 20120 approximately 49.2% of trade volume was long. DERA estimates that there were approximately 7,450 average daily fail to deliver positions during 2020. Across 127 broker-dealer participants of the NSCC, the number of securities per participant per day is approximately 59 (7,450 ÷ 127) equity securities. 49.2% of 59 equity securities per trading day equals approximately 29 securities per day. 6 See supra note 4. 7 See supra note 5. PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 dealer participants notifying brokerdealers once per day on 59 securities, multiplied by 253 trading days in 2020). The total estimated annual burden hours per year will be approximately 303,317 burden hours (1,895,729 multiplied by 0.16 hours/notification 8). IV. Certification Requirement: As of December 31, 2020, there were 3,551 registered broker-dealers. Each of these broker-dealers may clear trades through a participant of a registered clearing agency. If the broker-dealer determines that it has not incurred a fail to deliver position on settlement date for a long or short sale in an equity security for which the participant has a fail to deliver position at a registered clearing agency or has purchased or borrowed securities in accordance with the prefail credit provision of Rule 204(e), the Commission estimates that a brokerdealer could have to make such determination with respect to approximately 2.1 securities per day.9 The Commission estimates that each such registered broker-dealer could have to certify to a participant that the broker-dealer has not incurred a fail to deliver position on settlement date for a long or short sale in an equity security for which the participant has a fail to deliver position at a registered clearing agency or, alternatively, that the brokerdealer is in compliance with the requirements set forth in the pre-fail credit provision of Rule 204(e), 1,886,646 times per year (3,551 registered broker-dealers certifying once per day on 2.1 securities, multiplied by 253 trading days in 2020). The total approximate estimated annual burden hours per year will be approximately 301,864 burden hours (1,886,646 multiplied by 0.16 hours/ certification 10). V. Pre-Fail Credit Demonstration Requirement: As of December 31, 2020, there were 3,551 registered brokerdealers. If a broker-dealer purchased or borrowed securities in accordance with the conditions specified in Rule 204(e) and determined that it had a net long position or net flat position on the settlement day for which the brokerdealer is claiming pre-fail credit, the Commission estimates that a brokerdealer could have to make such a determination with respect to approximately 2.1 securities per day.11 The Commission estimates that the total number of times per year that such registered broker-dealers could have to demonstrate on their respective books 8 See supra note 4. supra note 2. 10 See supra note 4. 11 See supra note 2. 9 See E:\FR\FM\20JAN1.SGM 20JAN1 Federal Register / Vol. 87, No. 13 / Thursday, January 20, 2022 / Notices and records that the broker-dealer has a net long position or net flat position on the settlement day for which the brokerdealer is claiming pre-fail credit is 1,886,646 times per year (3,551 registered broker-dealers checking for compliance once per day on 2.1 equity securities, multiplied by 253 trading days in 2020). The total approximate estimated annual burden hours per year will be 301,864 burden hours (1,886,646 multiplied by 0.16 hours/ demonstration 12). The total aggregate annual burden for the collection of information undertaken pursuant to all five provisions is thus 1,357,997 hours per year (301,864 + 149,088 + 303,317 + 301,864 + 301,864). 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. The public may view background documentation for this information collection at the following website: www.reginfo.gov. Find this particular information collection by selecting ‘‘Currently under 30-day Review—Open for Public Comments’’ or by using the search function. Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to (i) MBX.OMB.OIRA.SEC_desk_ officer@OMB.EOP.GOV and (ii) David Bottom, Director/Chief Information Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending an email to: PRA_Mailbox@ sec.gov. Dated: January 14, 2022. J. Matthew DeLesDernier, Assistant Secretary. [FR Doc. 2022–01057 Filed 1–19–22; 8:45 am] BILLING CODE 8011–01–P SECURITIES AND EXCHANGE COMMISSION [Investment Company Act Release No. 34470; 812–15284] Oaktree Fund Advisors, LLC and Oaktree Strategic Credit Fund January 14, 2022. Securities and Exchange Commission (‘‘Commission’’). ACTION: Notice. lotter on DSK11XQN23PROD with NOTICES1 AGENCY: Notice of an application under Section 6(c) of the Investment Company Act of 1940 (the ‘‘Act’’) for an exemption from Sections 18(a)(2), 18(c), 18(i) and Section 61(a) of the Act. Applicants request an order to permit certain closed-end management investment companies that have elected to be regulated as business development companies (‘‘BDCs’’) to issue multiple classes of shares with varying sales loads and asset-based service and/or distribution fees. APPLICANTS: Oaktree Fund Advisors, LLC. (‘‘OFA’’), Oaktree Strategic Credit Fund (‘‘OSCF’’). FILING DATE: The application was filed on November 30, 2021. HEARING OR NOTIFICATION OF HEARING: An order granting the requested relief will be issued unless the Commission orders a hearing. Interested persons may request a hearing on any application by emailing the SEC’s Secretary at Secretarys-Office@sec.gov and serving the relevant applicant with a copy of the request by email, if an email address is listed for the relevant applicant below, or personally or by mail, if a physical address is listed for the relevant applicant below. Hearing requests should be received by the Commission by 5:30 p.m. on February 8, 2022, and should be accompanied by proof of service on applicants, in the form of an affidavit or, for lawyers, a certificate of service. Pursuant to rule 0–5 under the Act, hearing requests should state the nature of the writer’s interest, any facts bearing upon the desirability of a hearing on the matter, the reason for the request, and the issues contested. Persons who wish to be notified of a hearing may request notification by emailing the Commission’s Secretary. ADDRESSES: The Commission: Secretarys-Office@sec.gov. Applicants: c/o William G. Farrar, by email to farrarw@sullcrom.com. FOR FURTHER INFORMATION CONTACT: Lisa Reid Ragen, Branch Chief, at (202) 551– 6825 (Division of Investment Management, Chief Counsel’s Office). SUPPLEMENTARY INFORMATION: For Applicants’ representations, legal analysis, and condition, please refer to Applicants’ application, dated November 30, 2021, which may be obtained via the Commission’s website by searching for the file number, using the Company name box, at https:// www.sec.gov/search/search.htm, or by calling (202) 551–8090. For the Commission, by the Division of Investment Management, under delegated authority. SUMMARY OF APPLICATION: supra note 4. VerDate Sep<11>2014 17:16 Jan 19, 2022 BILLING CODE 8011–01–P Jkt 256001 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 [Release No. 34–93972; File No. SR–MIAX– 2021–58] Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Designation of a Longer Period for Commission Action on a Proposed Rule Change To Adopt Exchange Rule 532, Order and Quote Price Protection Mechanisms and Risk Controls January 13, 2022. On November 16, 2021, Miami International Securities Exchange, LLC (‘‘MIAX Options’’ or the ‘‘Exchange’’) filed with the Securities and Exchange Commission (the ‘‘Commission’’), pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 a proposed rule change to adopt a new Managed Protection Override feature, a new Max Put Price Protection feature, and a new MIAX Strategy Price Protection, which will be included in new Exchange Rule 532, ‘‘Order and Quote Price Protection Mechanisms and Risk Controls.’’ The proposed rule change was published for comment in the Federal Register on December 3, 2021.3 The Commission has received no comment letters regarding the proposed rule change. Section 19(b)(2) of the Act 4 provides that, within 45 days of the publication of notice of the filing of a proposed rule change, or within such longer period up to 90 days as the Commission may designate if it finds such longer period to be appropriate and publishes its reasons for so finding or as to which the self-regulatory organization consents, the Commission shall either approve the proposed rule change, disapprove the proposed rule change, or institute proceedings to determine whether the proposed rule change should be disapproved. The 45th day after publication of the notice for the proposed rule change is January 17, 2022. The Commission is extending the 45day period for Commission action on the proposed rule change. The Commission finds that it is appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider and act on the proposed rule change. Accordingly, pursuant to U.S.C. 78s(b)(1). CFR 240.19b–4. 3 See Securities Exchange Act Release No. 93676 (November 29, 2021), 86 FR 68695. 4 15 U.S.C. 78s(b)(2). 2 17 [FR Doc. 2022–01053 Filed 1–19–22; 8:45 am] 12 See SECURITIES AND EXCHANGE COMMISSION 1 15 J. Matthew DeLesDernier, Assistant Secretary. 3137 E:\FR\FM\20JAN1.SGM 20JAN1

Agencies

[Federal Register Volume 87, Number 13 (Thursday, January 20, 2022)]
[Notices]
[Pages 3135-3137]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-01057]


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

SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-586, OMB Control No. 3235-0647]


Submission for OMB Review; 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 204

    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'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 204 
(17 CFR 242.204), under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.).
    Rule 204(a) provides that a participant of a registered clearing 
agency must deliver securities to a registered clearing agency for 
clearance and settlement on a long or short sale in any equity security 
by settlement date, or if a participant of a registered clearing agency 
has a fail to deliver position at a registered clearing agency in any 
equity security for a long or short sale transaction in the equity 
security, the participant shall, by no later than the beginning of 
regular trading hours on the applicable close-out date, immediately 
close out its fail to deliver positions by borrowing or purchasing 
securities of like kind and quantity. For a short sale transaction, the 
participant must close out a fail to deliver by no later than the 
beginning of regular trading hours on the settlement day following the 
settlement date. If a participant has a fail to deliver that the 
participant can demonstrate on its books and records resulted from a 
long sale, or that is attributable to bona-fide market making 
activities, the participant must close out the fail to deliver by no 
later than the beginning of regular trading hours on the third 
consecutive settlement day following the settlement date. Rule 204 is 
intended to help further the Commission's goal of reducing fails to 
deliver by maintaining the reductions in fails to deliver achieved by 
the adoption of temporary Rule 204T, as well as other actions taken by 
the Commission. In addition, Rule 204 is intended to help further the 
Commission's goal of addressing

[[Page 3136]]

potentially abusive ``naked'' short selling in all equity securities.
    The information collected under Rule 204 will continue to be 
retained and/or provided to other entities pursuant to the specific 
rule provisions and will be available to the Commission and self-
regulatory organization (``SRO'') examiners upon request. The 
information collected will continue to aid the Commission and SROs in 
monitoring compliance with these requirements. In addition, the 
information collected will aid those subject to Rule 204 in complying 
with its requirements. These collections of information are mandatory.
    Several provisions under Rule 204 will impose a ``collection of 
information'' within the meaning of the Paperwork Reduction Act.
    I. Allocation Notification Requirement: As of December 31, 2020, 
there were 3,551 registered broker-dealers.\1\ Each of these broker-
dealers could clear trades through a participant of a registered 
clearing agency and, therefore, become subject to the notification 
requirements of Rule 204(d). If a participant allocates a fail to 
deliver position to a broker or dealer pursuant to Rule 204(d), the 
broker or dealer that has been allocated the fail to deliver position 
in an equity security must determine whether such fail to deliver 
position was closed out in accordance with Rule 204(a). If such broker 
or dealer does not comply with the provisions of Rule 204(a), such 
broker or dealer must immediately notify the participant that it has 
become subject to the requirements of Rule 204(b). The Commission 
estimates that a broker or dealer could have to make such determination 
and notification with respect to approximately 2.1 equity securities 
per day.\2\ The Commission estimates a total of 1,886,646 potential 
notifications in accordance with Rule 204(d) across all registered 
broker-dealers that could be allocated responsibility to close out a 
fail to deliver position per year (3,551 registered broker-dealers 
notifying participants once per day \3\ on 2.1 equity securities, 
multiplied by 253 trading days in 2020). The total estimated annual 
burden hours per year will be approximately 301,864 burden hours 
(1,886,646 multiplied by 0.16 hours/notification \4\).
---------------------------------------------------------------------------

    \1\ The Commission's Division of Economic and Risk Analysis 
(``DERA'') estimates that there were approximately 3,551 registered 
broker-dealers as of December 31, 2020.
    \2\ DERA estimates that there were approximately 7,450 average 
daily fail to deliver positions during 2020. Across 3,551 registered 
broker-dealers, the number of securities per registered broker-
dealer per trading day is approximately 2.1 (7,450 / 3,551) equity 
securities.
    \3\ Because failure to comply with the close-out requirements of 
Rule 204(a) is a violation of the rule, the Commission believes that 
a broker or dealer would make the notification to a participant that 
it is subject to the borrowing requirements of Rule 204(b) at most 
once per day.
    \4\ See Amendments to Regulation SHO, Exchange Act Release No. 
60388 (July 27, 2009), 74 FR 38265 (July 31, 2009) (``Rule 204 
Adopting Release'') (making permanent the amendments to Regulation 
SHO contained in Interim Final Temporary Rule 204T and incorporating 
by reference the time estimates from the Rule 204T Adopting Release 
for compliance with the notification, demonstration, and 
certification requirements of Rule 204).
---------------------------------------------------------------------------

    II. Demonstration Requirement for Fails to Deliver on Long Sales: 
As of December 31, 2020, there were 127 participants of NSCC that were 
registered as broker-dealers. If a participant of a registered clearing 
agency has a fail to deliver position in an equity security at a 
registered clearing agency and determined that such fail to deliver 
position resulted from a long sale, the Commission estimates that a 
participant of a registered clearing agency will have to make such 
determination with respect to approximately 29 securities per day.\5\ 
The Commission estimates a total of 931,799 potential demonstrations in 
accordance with Rule 204(a)(1) across all broker-dealer participants 
per year (127 participants checking for compliance once per day on 29 
securities, multiplied by 253 trading days in 2020). The total 
approximate estimated annual burden hour per year will be approximately 
149,088 burden hours (931,799 multiplied by 0.16 hours/demonstration 
\6\).
---------------------------------------------------------------------------

    \5\ DERA estimates that during 20120 approximately 49.2% of 
trade volume was long. DERA estimates that there were approximately 
7,450 average daily fail to deliver positions during 2020. Across 
127 broker-dealer participants of the NSCC, the number of securities 
per participant per day is approximately 59 (7,450 / 127) equity 
securities. 49.2% of 59 equity securities per trading day equals 
approximately 29 securities per day.
    \6\ See supra note 4.
---------------------------------------------------------------------------

    III. Pre-Borrow Notification Requirement: As of December 31, 2020, 
there were 27 participants of NSCC that were registered as broker-
dealers. If a participant of a registered clearing agency has a fail to 
deliver position in an equity security, the participant must determine 
whether the fail to deliver position was closed out in accordance with 
Rule 204(a). The Commission estimates that a participant of a 
registered clearing agency will have to make such determination with 
respect to approximately 59 equity securities per day.\7\ The 
Commission estimates a total of 1,895,729 potential notifications in 
accordance with Rule 204(c) across all participants per year (127 
broker-dealer participants notifying broker-dealers once per day on 59 
securities, multiplied by 253 trading days in 2020). The total 
estimated annual burden hours per year will be approximately 303,317 
burden hours (1,895,729 multiplied by 0.16 hours/notification \8\).
---------------------------------------------------------------------------

    \7\ See supra note 5.
    \8\ See supra note 4.
---------------------------------------------------------------------------

    IV. Certification Requirement: As of December 31, 2020, there were 
3,551 registered broker-dealers. Each of these broker-dealers may clear 
trades through a participant of a registered clearing agency. If the 
broker-dealer determines that it has not incurred a fail to deliver 
position on settlement date for a long or short sale in an equity 
security for which the participant has a fail to deliver position at a 
registered clearing agency or has purchased or borrowed securities in 
accordance with the pre-fail credit provision of Rule 204(e), the 
Commission estimates that a broker-dealer could have to make such 
determination with respect to approximately 2.1 securities per day.\9\ 
The Commission estimates that each such registered broker-dealer could 
have to certify to a participant that the broker-dealer has not 
incurred a fail to deliver position on settlement date for a long or 
short sale in an equity security for which the participant has a fail 
to deliver position at a registered clearing agency or, alternatively, 
that the broker-dealer is in compliance with the requirements set forth 
in the pre-fail credit provision of Rule 204(e), 1,886,646 times per 
year (3,551 registered broker-dealers certifying once per day on 2.1 
securities, multiplied by 253 trading days in 2020). The total 
approximate estimated annual burden hours per year will be 
approximately 301,864 burden hours (1,886,646 multiplied by 0.16 hours/
certification \10\).
---------------------------------------------------------------------------

    \9\ See supra note 2.
    \10\ See supra note 4.
---------------------------------------------------------------------------

    V. Pre-Fail Credit Demonstration Requirement: As of December 31, 
2020, there were 3,551 registered broker-dealers. If a broker-dealer 
purchased or borrowed securities in accordance with the conditions 
specified in Rule 204(e) and determined that it had a net long position 
or net flat position on the settlement day for which the broker-dealer 
is claiming pre-fail credit, the Commission estimates that a broker-
dealer could have to make such a determination with respect to 
approximately 2.1 securities per day.\11\ The Commission estimates that 
the total number of times per year that such registered broker-dealers 
could have to demonstrate on their respective books

[[Page 3137]]

and records that the broker-dealer has a net long position or net flat 
position on the settlement day for which the broker-dealer is claiming 
pre-fail credit is 1,886,646 times per year (3,551 registered broker-
dealers checking for compliance once per day on 2.1 equity securities, 
multiplied by 253 trading days in 2020). The total approximate 
estimated annual burden hours per year will be 301,864 burden hours 
(1,886,646 multiplied by 0.16 hours/demonstration \12\).
---------------------------------------------------------------------------

    \11\ See supra note 2.
    \12\ See supra note 4.
---------------------------------------------------------------------------

    The total aggregate annual burden for the collection of information 
undertaken pursuant to all five provisions is thus 1,357,997 hours per 
year (301,864 + 149,088 + 303,317 + 301,864 + 301,864).
    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent within 30 days of publication of this notice 
to (i) [email protected] and (ii) David Bottom, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o John Pezzullo, 100 F Street NE, Washington, DC 20549, or by sending 
an email to: [email protected].

    Dated: January 14, 2022.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2022-01057 Filed 1-19-22; 8:45 am]
BILLING CODE 8011-01-P
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.