Federal Register 60-Day Notice

Federal Register / Vol. 90, No. 133 / Tuesday, July 15, 2025 / Notices
national securities exchange be
‘‘designed to prevent fraudulent and
manipulative acts and practices’’ and
‘‘to protect investors and the public
interest.’’ 16
The Commission asks that
commenters address the sufficiency of
the Exchange’s statements in support of
the proposal, which are set forth in the
Notice, in addition to any other
comments they may wish to submit
about the proposed rule change. In
particular, the Commission seeks
comment on whether the proposal to list
and trade Shares of the Trust, which
would hold AVAX, is designed to
prevent fraudulent and manipulative
acts and practices or raises any new or
novel concerns not previously
contemplated by the Commission.
IV. Procedure: Request for Written
Comments
The Commission requests that
interested persons provide written
submissions of their views, data, and
arguments with respect to the issues
identified above, as well as any other
concerns they may have with the
proposal. In particular, the Commission
invites the written views of interested
persons concerning whether the
proposal is consistent with Section
6(b)(5) or any other provision of the Act,
and the rules and regulations
thereunder. Although there do not
appear to be any issues relevant to
approval or disapproval that would be
facilitated by an oral presentation of
views, data, and arguments, the
Commission will consider, pursuant to
Rule 19b–4, any request for an
opportunity to make an oral
presentation.17
Interested persons are invited to
submit written data, views, and
arguments regarding whether the
proposed rule change should be
approved or disapproved by August 5,
2025. Any person who wishes to file a
rebuttal to any other person’s
submission must file that rebuttal by
August 19, 2025.
Comments may be submitted by any
of the following methods:

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16 15

U.S.C. 78f(b)(5).
19(b)(2) of the Act, as amended by the
Securities Acts Amendments of 1975, Public Law
94–29 (June 4, 1975), grants the Commission
flexibility to determine what type of proceeding—
either oral or notice and opportunity for written
comments—is appropriate for consideration of a
particular proposal by a self-regulatory
organization. See Securities Acts Amendments of
1975, Senate Comm. on Banking, Housing & Urban
Affairs, S. Rep. No. 75, 94th Cong., 1st Sess. 30
(1975).
17 Section

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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–
NASDAQ–2025–030 on the subject line.
Paper Comments
• 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–NASDAQ–2025–030. 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
a.m. and 3 p.m. Copies of the filing also
will be available for inspection and
copying at the principal office of the
Exchange. Do not include personal
identifiable information in submissions;
you should submit only information
that you wish to make available
publicly. We may redact in part or
withhold entirely from publication
submitted material that is obscene or
subject to copyright protection. All
submissions should refer to file number
SR–NASDAQ–2025–030 and should be
submitted on or before August 5, 2025.
Rebuttal comments should be submitted
by August 19, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.18
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–13196 Filed 7–14–25; 8:45 am]
BILLING CODE 8011–01–P

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CFR 200.30–3(a)(57).

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31733

SECURITIES AND EXCHANGE
COMMISSION
[OMB Control No. 3235–0699]

Proposed Collection; Comment
Request; Extension: Rule 18a–2
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 (‘‘SEC’’ or
‘‘Commission’’) is soliciting comments
on the proposed collection of
information in Rule 18a–2.
Rule 18a–2, 17 CFR 240.18a–2,
establishes capital requirements for
nonbank major security-based swap
participants that are also not registered
as broker-dealers (‘‘nonbank MSBSPs’’).
In particular, a nonbank MSBSP is
required at all times to have and
maintain positive tangible net worth.
Under Rule 18a–2, nonbank MSBSPs
also need to comply with Exchange Act
Rule 15c3–4 (17 CFR 240.15c3–4),
which requires OTC derivatives dealers
and other firms subject to its provisions
to establish, document, and maintain a
system of internal risk management
controls to assist the firm in managing
the risk associated with its business
activities, including market, credit,
leverage, liquidity, legal, and
operational risks.
The staff previously estimated that 5
or fewer nonbank entities would register
with the Commission as MSBSPs. The
staff continues to estimate that 5 or
fewer nonbank entities will register with
the Commission as MSBSPs, although
currently no such entities have
registered. These nonbank MSBSPs will
be required to establish, document, and
regularly review and update risk
management control systems with
respect to market, credit, leverage,
liquidity, legal and operational risks.
Based on similar estimates for OTC
derivatives dealers, the Commission
staff believes that each nonbank MSBSP
will spend approximately 2,000 hours to
implement its risk management control
system, resulting in a one-time industrywide hour burden of approximately
10,000 recordkeeping hours, or
approximately 3,333 hours per year
when annualized over 3 years.1
Based on similar estimates for OTC
derivatives dealers, the staff further
1 5 MSBSPs × 2,000 hours = 10,000 hours. This
one-time burden annualized over a 3-year period is
approximately 3,333 hours industry-wide (10,000
hours/3 = 3,333.33 rounded down to 3,333).

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Federal Register / Vol. 90, No. 133 / Tuesday, July 15, 2025 / Notices

estimates that each of these firms will
spend approximately 250 hours per year
reviewing and updating its risk
management control systems, resulting
in an ongoing annual industry-wide
hour burden of approximately 1,250
recordkeeping hours per year.2
Taken together, the total industrywide recordkeeping hour burden is
approximately 4,583 hours per year.3
Because nonbank MSBSPs may not
initially have the systems or expertise
internally to meet the risk management
requirements of Rule 18a–2, these firms
will likely hire an outside risk
management consultant to assist them
in implementing their risk management
systems. The staff estimates that each
firm will hire an outside management
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
MSBSPs × 250 hours/year = 1,250 hours/year.
hours/3 years = 3,333.33 + 1,250 hours =
4,583.33 hours rounded down to 4,583.
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.
25

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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
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.
Please direct your written comments
on this 60-Day Collection Notice to
Austin Gerig, Director/Chief Data
Officer, Securities and Exchange
Commission, c/o Tanya Ruttenberg via
email to PaperworkReductionAct@
sec.gov by September 15, 2025. There
will be a second opportunity to
comment on this SEC request following
the Federal Register publishing a 30Day Submission Notice.

Dated: July 11, 2025.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025–13253 Filed 7–14–25; 8:45 am]
BILLING CODE 8011–01–P

SECURITIES AND EXCHANGE
COMMISSION
[Release No. 34–103431; File No. SR–LTSE–
2025–12]

Self-Regulatory Organizations; LongTerm Stock Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of
a Proposed Rule Change To Amend
LTSE Rule 11.660 of the Exchange’s
Consolidated Audit Trail Compliance
Rule Regarding the National Market
System Plan Governing the
Consolidated Audit Trail To Be
Consistent With the Exemptive Relief
Granted by the Commission From
Certain Provisions Related to
Timestamp Granularity
July 10, 2025.

Pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934
(‘‘Act’’),1 and Rule 19b–4 thereunder,2
notice is hereby given that on June 27,
2025, Long-Term Stock Exchange, Inc.
(‘‘LTSE’’ or the ‘‘Exchange’’) filed with
the Securities and Exchange
Commission (‘‘Commission’’) the
proposed rule change as described in
Items I and II below, which Items have
been prepared by the Exchange. The
Commission is publishing this notice to
solicit comments on the proposed rule
change from interested persons.
I. Self-Regulatory Organization’s
Statement of the Terms of Substance of
the Proposed Rule Change
The Exchange is filing with the
Securities and Exchange Commission
(‘‘Commission’’) a proposed rule change
to amend LTSE Rule 11.660 of the
Exchange’s compliance rule (‘‘CAT
Compliance Rule’’) regarding the
National Market System Plan Governing
the Consolidated Audit Trail (the ‘‘CAT
NMS Plan’’ or ‘‘Plan’’) 3 to be consistent
with the exemptive relief granted by the
Commission from certain provisions of
the CAT NMS Plan related to timestamp
granularity (‘‘2025 Timestamp
Granularity Exemption’’).4 Specifically,
the Exchange proposes to update the
expiration date of the exemption in Rule
1 15

MSBSP × $20,500 = $102,500.
8 $80,000/3 years + $102,500 = $129,166.667
rounded up to $129,167.
9 The record preservation requirements for the
information collections are in Rule 18a–6, 17 CFR
240.18a–6.

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U.S.C. 78s(b)(1).
CFR 240.19b–4.
3 Unless otherwise specified, capitalized terms
used in this rule filing are defined as set forth in
the CAT Compliance Rule.
4 Securities Exchange Act Rel. No. 102980 (May
2, 2025), 90 FR 19334 (May 7, 2025).
2 17

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