Proposed Collection; Comment Request; Extension: Rule 204, 83930-83932 [2024-24132]
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83930
Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices
are available at www.prc.gov, Docket
Nos. MC2024–779, K2024–72.
POSTAL SERVICE
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–24001 Filed 10–17–24; 8:45 am]
BILLING CODE 7710–12–P
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
18, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 2, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 425
to Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2025–9, K2025–9.
SUMMARY:
Sean C. Robinson,
Attorney, Corporate and Postal Business Law.
[FR Doc. 2024–24010 Filed 10–17–24; 8:45 am]
BILLING CODE 7710–12–P
POSTAL SERVICE
POSTAL SERVICE
Sean Robinson,
Attorney, Corporate and Postal Business Law.
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
[FR Doc. 2024–24041 Filed 10–17–24; 8:45 am]
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
18, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on October 4, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 378 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2025–33, K2025–32.
SUMMARY:
[FR Doc. 2024–24035 Filed 10–17–24; 8:45 am]
BILLING CODE 7710–12–P
Postal ServiceTM.
Notice.
AGENCY:
ACTION:
POSTAL SERVICE
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
18, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean C. Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
3642 and 3632(b)(3), on September 30,
2024, it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail Express, Priority Mail &
USPS Ground Advantage® Contract 416
to Competitive Product List. Documents
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:48 Oct 17, 2024
Jkt 265001
Product Change—Priority Mail and
USPS Ground Advantage® Negotiated
Service Agreement
Postal ServiceTM.
ACTION: Notice.
AGENCY:
The Postal Service gives
notice of filing a request with the Postal
Regulatory Commission to add a
domestic shipping services contract to
the list of Negotiated Service
Agreements in the Mail Classification
Schedule’s Competitive Products List.
DATES: Date of required notice: October
18, 2024.
FOR FURTHER INFORMATION CONTACT:
Sean Robinson, 202–268–8405.
SUPPLEMENTARY INFORMATION: The
United States Postal Service® hereby
gives notice that, pursuant to 39 U.S.C.
SUMMARY:
PO 00000
Frm 00105
Fmt 4703
Sfmt 4703
BILLING CODE 7710–12–P
SECURITIES AND EXCHANGE
COMMISSION
Sean Robinson,
Attorney, Corporate and Postal Business Law.
Product Change—Priority Mail
Express, Priority Mail, and USPS
Ground Advantage® Negotiated
Service Agreement
3642 and 3632(b)(3), on October 9, 2024,
it filed with the Postal Regulatory
Commission a USPS Request to Add
Priority Mail & USPS Ground
Advantage® Contract 385 to
Competitive Product List. Documents
are available at www.prc.gov, Docket
Nos. MC2025–51, K2025–50.
[SEC File No. 270–586, OMB Control No.
3235–0647]
Proposed Collection; Comment
Request; Extension: Rule 204
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
(‘‘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 Rule 204 (17 CFR
242.204) under the Securities Exchange
Act of 1934 (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.
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
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Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices
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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
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 quarter four of 2023,
there were 3,429 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 2.44
equity securities per day.2 The
Commission estimates a total of
1 The Commission’s Division of Economic and
Risk Analysis (‘‘DERA’’) estimates that there were
approximately 3,429 registered broker-dealers as of
quarter four of 2023, based on FOCUS filings data.
2 DERA estimates that there were approximately
8,378 average daily fail to deliver positions during
2023. Across 3,429 registered broker-dealers, the
number of securities per registered broker-dealer
per trading day is approximately 2.44 (8,378 ÷
3,429) equity securities.
VerDate Sep<11>2014
16:48 Oct 17, 2024
Jkt 265001
2,108,424 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 (3,429
registered broker-dealers notifying
participants once per day 3 on 2.44
equity securities, multiplied by 252
trading days in 2023). The total
estimated annual burden hours per year
will be approximately 337,348 burden
hours (2,108,424 multiplied by 0.16
hours/notification 4).
II. Demonstration Requirement for
Fails to Deliver on Long Sales: As of
December 29, 2023, there were 129
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 a determination with respect
to approximately 30 securities per day.5
The Commission estimates a total of
975,240 potential demonstrations in
accordance with Rule 204(a)(1) across
all broker-dealer participants per year
(129 participants checking for
compliance once per day on 30
securities, multiplied by 252 trading
days in 2023). The total approximate
estimated annual burden hours per year
will be approximately 156,038 burden
hours (975,240 multiplied by 0.16
hours/demonstration 6).
III. Pre-Borrow Notification
Requirement: As of December 29, 2023,
there were 129 participants of NSCC
that were registered as broker-dealers. If
a participant of a registered clearing
agency has a fail to deliver position in
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’’) (July
27, 2009) (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 2023 approximately
46.6% of trade volume was long. DERA estimates
that there were approximately 8,378 average daily
fail to deliver positions during 2023. Across 129
broker-dealer participants of the NSCC, the number
of securities per participant per day is
approximately 65 (8,378 ÷ 129) equity securities.
46.64% of 65 equity securities per trading day
equals approximately 30 securities per day.
6 See supra note 4.
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83931
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 65 equity securities
per day.7 The Commission estimates a
total of 2,113,020 potential notifications
in accordance with Rule 204(c) across
all participants per year (129 brokerdealer participants notifying brokerdealers once per day on 65 securities,
multiplied by 252 trading days in 2023).
The total estimated annual burden
hours per year will be approximately
338,083 burden hours (2,113,020
multiplied by 0.16 hours/notification 8).
IV. Certification Requirement: As of
quarter four 2023, there were 3,429
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 2.44 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),
2,108,424 times per year (3,429
registered broker-dealers certifying once
per day on 2.44 securities, multiplied by
252 trading days in 2023). The total
approximate estimated annual burden
hours per year will be approximately
337,348 burden hours (2,108,424
multiplied by 0.16 hours/
certification 10).
V. Pre-Fail Credit Demonstration
Requirement: As of quarter four 2023,
there were 3,429 registered brokerdealers. If a broker-dealer purchased or
borrowed securities in accordance with
the conditions specified in Rule 204(e)
7 See
supra note 5.
supra note 4.
9 See supra note 2.
10 See supra note 4.
8 See
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83932
Federal Register / Vol. 89, No. 202 / Friday, October 18, 2024 / Notices
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
determination with respect to
approximately 2.44 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
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
2,108,424 times per year (3,429
registered broker-dealers checking for
compliance once per day on 2.44 equity
securities, multiplied by 252 trading
days in 2023). The total approximate
estimated annual burden hours per year
will be 337,348 burden hours (2,108,424
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
1,506,165 hours per year (337,348 +
156,038+ 338,083 + 337,348 + 337,348).
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
(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 by
December 17, 2024.
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: Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Tanya Ruttenberg, 100
F Street NE, Washington, DC 20549, or
send an email to: PRA_Mailbox@
sec.gov.
11 See
12 See
supra note 2.
supra note 4.
VerDate Sep<11>2014
16:48 Oct 17, 2024
Dated: October 15, 2024.
Sherry R. Haywood,
Assistant Secretary.
[Disaster Declaration #20753 and #20754;
GEORGIA Disaster Number GA–20014]
[FR Doc. 2024–24132 Filed 10–17–24; 8:45 am]
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Georgia
BILLING CODE 8011–01–P
SMALL BUSINESS ADMINISTRATION
[Disaster Declaration #20732 and #20733;
FLORIDA Disaster Number FL–20014]
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Florida
U.S. Small Business
Administration.
AGENCY:
ACTION:
U.S. Small Business
Administration.
ACTION: Amendment 2.
AGENCY:
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Georgia (FEMA–4830–DR),
dated 10/09/2024.
Incident: Hurricane Helene.
Incident Period: 09/24/2024 and
continuing.
SUMMARY:
Issued on 10/14/2024.
Physical Loan Application Deadline
Date: 12/09/2024.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/09/2025.
ADDRESSES: Visit the MySBA Loan
Portal at https://lending.sba.gov to
apply for a disaster assistance loan.
FOR FURTHER INFORMATION CONTACT:
Alan Escobar, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
SUPPLEMENTARY INFORMATION: The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Georgia,
dated 10/09/2024, is hereby amended to
include the following areas as adversely
affected by the disaster.
Primary Counties: Columbia, Dodge,
Dooly, Glascock, Grady, Jefferson,
Johnson, McDuffie, McIntosh,
Monroe, Montgomery, Richmond,
Telfair, Thomas, Warren, Wheeler.
All other information in the original
declaration remains unchanged.
DATES:
Amendment 2.
This is an amendment of the
Presidential declaration of a major
disaster for Public Assistance Only for
the State of Florida (FEMA–4828–DR),
dated 10/05/2024.
Incident: Hurricane Helene.
Incident Period: 09/23/2024 and
continuing.
SUMMARY:
Issued on 10/13/2024.
Physical Loan Application Deadline
Date: 12/04/2024.
Economic Injury (EIDL) Loan
Application Deadline Date: 07/07/2025.
DATES:
Visit the MySBA Loan
Portal at https://lending.sba.gov to
apply for a disaster assistance loan.
ADDRESSES:
FOR FURTHER INFORMATION CONTACT:
Alan Escobar, Office of Disaster
Recovery & Resilience, U.S. Small
Business Administration, 409 3rd Street
SW, Suite 6050, Washington, DC 20416,
(202) 205–6734.
The notice
of the President’s major disaster
declaration for Private Non-Profit
organizations in the State of Florida,
dated 10/05/2024, is hereby amended to
include the following areas as adversely
affected by the disaster.
SUPPLEMENTARY INFORMATION:
Primary Counties: Baker, Nassau,
Putnam.
All other information in the original
declaration remains unchanged.
(Catalog of Federal Domestic Assistance
Number 59008)
Rafaela Monchek,
Deputy Associate Administrator, Office of
Disaster Recovery & Resilience.
[FR Doc. 2024–24176 Filed 10–17–24; 8:45 am]
BILLING CODE 8026–09–P
SMALL BUSINESS ADMINISTRATION
(Catalog of Federal Domestic Assistance
Number 59008)
[Disaster Declaration #20753 and #20754;
GEORGIA Disaster Number GA–20014]
Rafaela Monchek
Deputy Associate Administrator, Office of
Disaster Recovery & Resilience.
Presidential Declaration Amendment of
a Major Disaster for Public Assistance
Only for the State of Georgia
[FR Doc. 2024–24175 Filed 10–17–24; 8:45 am]
AGENCY:
BILLING CODE 8026–09–P
Jkt 265001
SMALL BUSINESS ADMINISTRATION
PO 00000
Frm 00107
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Sfmt 4703
U.S. Small Business
Administration.
E:\FR\FM\18OCN1.SGM
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]]>Agencies
[Federal Register Volume 89, Number 202 (Friday, October 18, 2024)]
[Notices]
[Pages 83930-83932]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-24132]
=======================================================================
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-586, OMB Control No. 3235-0647]
Proposed Collection; Comment Request; Extension: Rule 204
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 (``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 Rule 204 (17 CFR 242.204) under the
Securities Exchange Act of 1934 (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.
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
[[Page 83931]]
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 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 quarter four of 2023,
there were 3,429 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 2.44 equity securities
per day.\2\ The Commission estimates a total of 2,108,424 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 (3,429 registered broker-dealers
notifying participants once per day \3\ on 2.44 equity securities,
multiplied by 252 trading days in 2023). The total estimated annual
burden hours per year will be approximately 337,348 burden hours
(2,108,424 multiplied by 0.16 hours/notification \4\).
---------------------------------------------------------------------------
\1\ The Commission's Division of Economic and Risk Analysis
(``DERA'') estimates that there were approximately 3,429 registered
broker-dealers as of quarter four of 2023, based on FOCUS filings
data.
\2\ DERA estimates that there were approximately 8,378 average
daily fail to deliver positions during 2023. Across 3,429 registered
broker-dealers, the number of securities per registered broker-
dealer per trading day is approximately 2.44 (8,378 / 3,429) 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'') (July 27, 2009) (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 29, 2023, there were 129 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 a
determination with respect to approximately 30 securities per day.\5\
The Commission estimates a total of 975,240 potential demonstrations in
accordance with Rule 204(a)(1) across all broker-dealer participants
per year (129 participants checking for compliance once per day on 30
securities, multiplied by 252 trading days in 2023). The total
approximate estimated annual burden hours per year will be
approximately 156,038 burden hours (975,240 multiplied by 0.16 hours/
demonstration \6\).
---------------------------------------------------------------------------
\5\ DERA estimates that during 2023 approximately 46.6% of trade
volume was long. DERA estimates that there were approximately 8,378
average daily fail to deliver positions during 2023. Across 129
broker-dealer participants of the NSCC, the number of securities per
participant per day is approximately 65 (8,378 / 129) equity
securities. 46.64% of 65 equity securities per trading day equals
approximately 30 securities per day.
\6\ See supra note 4.
---------------------------------------------------------------------------
III. Pre-Borrow Notification Requirement: As of December 29, 2023,
there were 129 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 65 equity securities per day.\7\ The
Commission estimates a total of 2,113,020 potential notifications in
accordance with Rule 204(c) across all participants per year (129
broker-dealer participants notifying broker-dealers once per day on 65
securities, multiplied by 252 trading days in 2023). The total
estimated annual burden hours per year will be approximately 338,083
burden hours (2,113,020 multiplied by 0.16 hours/notification \8\).
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\7\ See supra note 5.
\8\ See supra note 4.
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IV. Certification Requirement: As of quarter four 2023, there were
3,429 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 2.44 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), 2,108,424 times per
year (3,429 registered broker-dealers certifying once per day on 2.44
securities, multiplied by 252 trading days in 2023). The total
approximate estimated annual burden hours per year will be
approximately 337,348 burden hours (2,108,424 multiplied by 0.16 hours/
certification \10\).
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\9\ See supra note 2.
\10\ See supra note 4.
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V. Pre-Fail Credit Demonstration Requirement: As of quarter four
2023, there were 3,429 registered broker-dealers. If a broker-dealer
purchased or borrowed securities in accordance with the conditions
specified in Rule 204(e)
[[Page 83932]]
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 determination with respect to approximately 2.44 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 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 2,108,424 times per year
(3,429 registered broker-dealers checking for compliance once per day
on 2.44 equity securities, multiplied by 252 trading days in 2023). The
total approximate estimated annual burden hours per year will be
337,348 burden hours (2,108,424 multiplied by 0.16 hours/demonstration
\12\).
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\11\ See supra note 2.
\12\ See supra note 4.
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The total aggregate annual burden for the collection of information
undertaken pursuant to all five provisions is thus 1,506,165 hours per
year (337,348 + 156,038+ 338,083 + 337,348 + 337,348).
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 (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 by
December 17, 2024.
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: Austin Gerig, Director/
Chief Data Officer, Securities and Exchange Commission, c/o Tanya
Ruttenberg, 100 F Street NE, Washington, DC 20549, or send an email to:
[email protected].
Dated: October 15, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-24132 Filed 10-17-24; 8:45 am]
BILLING CODE 8011-01-P
