Federal Register 30-Day Notice

Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Notices

lotter on DSK11XQN23PROD with NOTICES1

consultant for approximately 200 hours
at a cost of approximately $596 per
hour, for a one-time external
management consulting cost of
approximately $119,200 per respondent,
and a total one-time industry
management consulting cost of
approximately $596,000, or
approximately $198,667 per year 4 when
annualized over 3 years.
Nonbank MSBSPs may incur start-up
costs to comply with Rule 18a–2,
including information technology costs.
The information technology systems of
a nonbank MSBSP may be in varying
stages of readiness to enable these firms
to meet the requirements of Rule 18a–
2, so the cost of modifying their
information technology systems could
vary significantly among firms. Based
on estimates for similar collections of
information,5 the Commission staff
expects that each nonbank MSBSP will
spend an average of approximately
$16,000 for one-time initial hardware
and software external expenses, for a
total one-time industry-wide external
information technology cost of
approximately $80,000, or
approximately $26,667 per year 6 when
annualized over 3 years. Based on the
estimates for these similar collections of
information, the average ongoing
external cost to meet the information
technology requirements of Rule 18a–2
will be approximately $20,500 per
nonbank MSBSP. This will also result in
an ongoing annual industry-wide
external information technology cost of
approximately $102,500.7 Taken
together, the total industry-wide
information technology related cost
burden is approximately $129,167 per
year.8
Therefore, the total industry-wide
recordkeeping cost burden is
approximately $327,834 per year
($198,667 + $129,167 = $327,834).
The requirement to establish,
document, and maintain a system of
internal risk management controls will
be imposed on nonbank MSBSPs
because, by definition, they maintain
materially large positions in securitybased swap markets and will pose
substantial risk to the stability of those
4 5 MSBSPs × 200 hours × $596/hour = $596,000.
Annualized over three years, this industry-wide
burden is approximately $198,667 per year
($596,000/3 years = $198,666.66 rounded up to
$198,667).
5 See Risk Management Controls for Broker or
Dealers with Market Access, Exchange Act Release
No. 6321 (Nov. 3, 2010), 75 FR 69792, 69814 (Nov.
15, 2010).
6 5 MSBSPs × $16,000/3 years = $26,666.666,
rounded up to $26,667.
7 5 MSBSP × $20,500 = $102,500.
8 $80,000/3 years + $102,500 = $129,166.667
rounded up to $129,167.

VerDate Sep<11>2014

17:06 Sep 18, 2025

Jkt 265001

markets should they default on their
obligations.9 The collections of
information in Rule 18a–2 will facilitate
the monitoring of the financial
condition of nonbank MSBSPs by the
Commission and its staff. The
information collection is mandatory and
is kept confidential to the extent
permitted by the Freedom of
Information Act (5 U.S.C. 552 et seq.).
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 OMB
Control Number.
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the SEC,
including whether the information will
have practical utility; (b) the accuracy of
the SEC’s estimate of the burden
imposed by the proposed collection of
information, including the validity of
the methodology and the assumptions
used; (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, electronic
collection techniques or other forms of
information technology.
The public may view and comment
on this information collection request
at: https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202507-3235-006
or email comment to
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov within 30 days of the day
after publication of this notice, by
October 20, 2025.
Dated: September 16, 2025.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025–18116 Filed 9–18–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0701]

Agency Information Collection
Activities; Submission for OMB
Review; Comment Request; Extension:
Rule 18a–1
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
9 The record preservation requirements for the
information collections are in Rule 18a–6, 17 CFR
240.18a–6.

PO 00000

Frm 00102

Fmt 4703

Sfmt 4703

45273

(44 U.S.C. 3501 et seq.), the Securities
and Exchange Commission (SEC or
‘‘Commission’’) is submitting to the
Office of Management and Budget
(‘‘OMB’’) this request for the extension
of the proposed collection of
information in Rule 18a–1.
Rule 18a–1, 17 CFR 240.18a–1,
establishes net capital requirements for
nonbank security-based swap dealers
that are not also broker-dealers
registered with the Commission (‘‘standalone SBSDs’’). First, under paragraphs
(a)(2) and (d) of Rule 18a–1, a standalone SBSD may apply to the
Commission to be authorized to use
internal value-at-risk (‘‘VaR) models to
compute net capital, and a stand-alone
SBSD authorized to use internal models
must review and update the models it
uses to compute market and credit risk,
as well as back-test the models. Second,
under paragraph (f) of Rule 18a–1, a
stand-alone SBSD is required to comply
with certain requirements of Exchange
Act Rule 15c3–4 (17 CFR 240.15c3–4).
Rule 15c3–4 requires OTC derivatives
dealers and firms subject to its
provisions to establish, document, and
maintain a system of internal risk
management controls to assist the firm
in managing the risks associated with
business activities, including market,
credit, leverage, liquidity, legal, and
operational risks. Third, for purposes of
calculating ‘‘haircuts’’ on credit default
swaps, paragraph (c)(1)(vi)(B)(1)(iii) of
Rule 18a–1 requires stand-alone SBSDs
that are not using internal models to use
an industry sector classification system
that is documented and reasonable in
terms of grouping types of companies
with similar business activities and risk
characteristics. Fourth, under paragraph
(h) of Rule 18a–1, stand-alone SBSDs
are required to provide the Commission
with certain written notices with respect
to equity withdrawals. Fifth, under
paragraph (c)(5) of Appendix D to Rule
18a–1 (17 CFR 240.18a–1d), stand-alone
SBSDs are required to file with the
Commission two copies of any proposed
subordinated loan agreement (including
nonconforming subordinated loan
agreements) at least 30 days prior to the
proposed execution date of the
agreement. Finally, under paragraph
(c)(1)(ix)(C) of Rule 18a–1, a nonbank
SBSD may treat collateral held by a
third-party custodian to meet an initial
margin requirement of a security-based
swap or swap customer as being held by
the nonbank SBSD for purposes of the
capital in lieu of margin charge
provisions of the rule if certain
conditions are met. In particular, the
SBSD must execute an account control
agreement and must maintain written

E:\FR\FM\19SEN1.SGM

19SEN1

lotter on DSK11XQN23PROD with NOTICES1

45274

Federal Register / Vol. 90, No. 180 / Friday, September 19, 2025 / Notices

documentation of its analysis that in the
event of a legal challenge the account
control agreement would be held to be
legal, valid, binding, and enforceable
under the applicable law.
The collection of information is
mandatory and is designed to ensure
that stand-alone SBSDs maintain
sufficient liquidity at all times to meet
all unsubordinated obligations of their
customers and counterparties and,
should a nonbank SBSD fail, that there
are sufficient resources for an orderly
liquidation. These information
collections facilitate the monitoring of
the financial condition of nonbank
SBSDs by the Commission. The
information collected by the
Commission under Rule 18a–1, as
adopted, is kept confidential to the
extent permitted by the Freedom of
Information Act (5 U.S.C. 552 et seq.).
The annual aggregate initial burden
for all respondents is estimated to be
4,310 hours. The aggregate initial cost
burden for all respondents is estimated
to be $2,772,334. The aggregate annual
burden for all respondents is estimated
to be 28,933 hours. The aggregate
annual cost burden for all respondents
is estimated to be $3,732,600.
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 OMB
Control Number.
Written comments are invited on: (a)
whether this proposed collection of
information is necessary for the proper
performance of the functions of the SEC,
including whether the information will
have practical utility; (b) the accuracy of
the SEC’s estimate of the burden
imposed by the proposed collection of
information, including the validity of
the methodology and the assumptions
used; (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, electronic
collection techniques or other forms of
information technology.
The public may view and comment
on this information collection request
at: https://www.reginfo.gov/public/do/
PRAViewICR?ref_nbr=202505-3235-018
or email comment to
MBX.OMB.OIRA.SEC_desk_officer@
omb.eop.gov within 30 days of the day
after publication of this notice, by
October 20, 2025.
Dated: September 16, 2025.
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025–18117 Filed 9–18–25; 8:45 am]
BILLING CODE 8011–01–P

VerDate Sep<11>2014

17:06 Sep 18, 2025

Jkt 265001

SECURITIES AND EXCHANGE
COMMISSION

The MSRB filed a response to comments
on File No. SR–MSRB–2025–01.7

[Release No. 34–103987; File No. SR–
MSRB–2025–01]

II. Description of the Proposed Rule
Change

Self-Regulatory Organizations;
Municipal Securities Rulemaking
Board; Order Approving a Proposed
Rule Change To Amend Rule G–14
RTRS Procedures Under MSRB Rule
G–14 Regarding the Timing of
Reporting Transactions in Municipal
Securities to the MSRB and To Make a
Related Amendment to Rule G–12

On September 20, 2024, the
Commission issued an order approving
proposed rule change SR–MSRB–2024–
01, as modified by Amendment No. 1,
which modified, among other things,
the baseline 15-minute reporting
requirement for reporting trades to
MSRB’s Real-time Transaction
Reporting System (‘‘RTRS’’) in two
ways: (i) reducing the deadline for
reporting such trades to no later than
one minute after the Time of Trade (the
‘‘one-minute reporting requirement’’)
and (ii) requiring that trades be reported
as soon as practicable, regardless of the
amended deadline (the ‘‘as soon as
practicable requirement’’).8 Under file
No. SR–MSRB–2024–01, the MSRB also
added two new exceptions to the new
one-minute reporting requirement for
trades with a manual component 9 and
for trades by dealers with limited
trading activity 10 and included a
requirement that dealers append a new
manual trade indicator to identify all
manual trades.11 The 2024 Amendments
were intended to make publicly
available more timely information about
the market and the prices at which
municipal securities transactions are
executed.12 The MSRB has not

September 16, 2025.

I. Introduction
On June 10, 2025, the Municipal
Securities Rulemaking Board (‘‘MSRB’’
or ‘‘Board’’) filed with the Securities
and Exchange Commission (‘‘SEC’’ or
‘‘Commission’’), pursuant to Section
19(b)(1) of the Securities Exchange Act
of 1934 (‘‘Act’’ or ‘‘Exchange Act’’) 1 and
Rule 19b–4 thereunder,2 a proposed rule
change to (i) amend Rule G–14 RTRS
Procedures under MSRB Rule G–14, on
reports of sales or purchases, to rescind
a previously approved but not yet
effective shortening of the amount of
time within which brokers, dealers and
municipal securities dealers (‘‘dealers’’)
must report most transactions to the
MSRB, reverting such timeframe to the
currently operative 15-minute reporting
timeframe, (ii) amend the Rule G–14
RTRS Procedures to eliminate two
previously approved but not yet
effective reporting exceptions and a
manual trade indicator relating to the
rescinded shortened timeframes, and
(iii) make a related conforming
amendment to MSRB Rule G–12, on
uniform practice (‘‘Rule G–12’’), as
described herein (the ‘‘proposed rule
change’’).3 The proposed rule change
was published for comment in the
Federal Register on June 20, 2025.4 On
July 22, 2025, the Commission extended
until September 18, 2025, the time
period within which to approve the
proposed rule change, disapprove the
proposed rule change, or institute
proceedings to determine whether to
disapprove the proposed rule change.5
The Commission received comment
letters on the proposed rule change.6
1 15

U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 See Exchange Act Release No. 103262 (June 16,
2025), 90 FR 26390 (June 20, 2025) (‘‘Notice’’).
Comments on the proposed rule change are
available at https://www.sec.gov/comments/sr-msrb2025-01/srmsrb202501.htm.
4 See Notice, 90 FR at 26390.
5 See Exchange Act Release No. 103516 (July 22,
2025), 90 FR 35325 (July 25, 2025).
6 See Letters to Secretary, from Christopher A.
Iacovella, President & Chief Executive Office,
2 17

PO 00000

Frm 00103

Fmt 4703

Sfmt 4703

American Securities Association (July 10, 2025)
(‘‘ASA Letter’’); Gerar O’Reilly, Co-CEO and CoChief Investment Officer, and David A. Plecha,
Global Head of Fixed Income, Dimensional Fund
Advisors LP (July 10, 2025) (‘‘Dimensional Fund
Advisors Letter’’); Kenneth E. Bentsen Jr., President
and CEO, SIFMA and SIFMA Asset Management
Group (July 11, 2025) (‘‘SIFMA Letter’’); Howard
Meyerson, Managing Director, Financial
Information Forum (‘‘FIF Letter’’); Michael Decker,
Senior Vice President, Research and Public Policy,
Bond Dealers of America (July 11, 2025) (‘‘BDA
Letter’’); Tyler Gellasch, President and CEO,
Healthy Markets Association (Aug. 8, 2025) (‘‘HMA
Letter’’). One of these commenters also commented
on the governance practices and rulemaking
processes of the MSRB. See ASA Letter at 2–5.
Those comments are outside of the scope of the
proposed rule change.
7 See Letter to Secretary, Commission, from
Ernesto A. Lanza, Chief Regulatory and Policy
Officer, MSRB, dated September 5, 2025, available
at https://www.sec.gov/comments/sr-msrb-2025-01/
srmsrb202501-648967-1945034.pdf (‘‘MSRB
Letter’’).
8 See Exchange Act Release No. 101118 (Sept. 20,
2024), 89 FR 78955 (Sept. 26, 2024), File No. SR–
MSRB–2024–01 (the ‘‘2024 Amendments’’). The
2024 Amendments were developed in close
coordination with the Financial Industry Regulatory
Authority (‘‘FINRA,’’ and together with the MSRB,
the ‘‘SROs’’).
9 See 2024 Amendments, 89 FR at 78957–59.
10 See id. at 78957.
11 See id. at 78959.
12 See id. at 78956.

E:\FR\FM\19SEN1.SGM

19SEN1