Federal Register 30-Day Notice

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

19(b)(3)(A)(iii) of the Act 5 and
subparagraph (f)(6) of Rule 19b–4
thereunder.6
A proposed rule change filed
pursuant to Rule 19b–4(f)(6) under the
Act 7 normally does not become
operative for 30 days after the date of its
filing. However, Rule 19b–4(f)(6)(iii) 8
permits the Commission to designate a
shorter time if such action is consistent
with the protection of investors and the
public interest. The Exchange has asked
the Commission to waive the 30-day
operative delay so that the proposed
rule change may become operative
immediately. The Commission believes
that waiving the 30-day operative delay
is consistent with the protection of
investors and the public interest
because the proposal does not raise any
novel regulatory issues and waiver will
allow the Exchange to begin receiving
and using a direct feed from 24X as soon
as it goes live. Therefore, the
Commission hereby waives the 30-day
operative delay and designates the
proposal operative upon filing.9
At any time within 60 days of the
filing of the proposed rule change, the
Commission summarily may
temporarily suspend such rule change if
it appears to the Commission that such
action is necessary or appropriate in the
public interest, for the protection of
investors, or otherwise in furtherance of
the purposes of the Act. If the
Commission takes such action, the
Commission shall institute proceedings
to determine whether the proposed rule
should be approved or disapproved.
IV. Solicitation of Comments
Interested persons are invited to
submit written data, views and
arguments concerning the foregoing,
including whether the proposed rule
change is consistent with the Act.
Comments may be submitted by any of
the following methods:
Electronic Comments
• Use the Commission’s internet
comment form (https://www.sec.gov/
rules/sro.shtml); or
5 15

U.S.C. 78s(b)(3)(A)(iii).
CFR 240.19b–4(f)(6). In addition, Rule 19b–
4(f)(6)(iii) requires a self-regulatory organization to
give the Commission written notice of its intent to
file the proposed rule change, along with a brief
description and text of the proposed rule change,
at least five business days prior to the date of filing
of the proposed rule change, or such shorter time
as designated by the Commission. The Exchange
has satisfied this requirement.
7 17 CFR 240.19b–4(f)(6).
8 17 CFR 240.19b–4(f)(6)(iii).
9 For purposes only of waiving the 30-day
operative delay, the Commission has also
considered the proposed rule’s impact on
efficiency, competition, and capital formation. See
15 U.S.C. 78c(f).

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• Send an email to rule-comments@
sec.gov. Please include file number SR–
NASDAQ–2025–074 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–2025–074. 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 filing 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–2025–074
and should be submitted on or before
October 10, 2025.
For the Commission, by the Division of
Trading and Markets, pursuant to delegated
authority.10
J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025–18145 Filed 9–18–25; 8:45 am]
BILLING CODE 8011–01–P

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

Agency Information Collection
Activities; Submission for OMB
Review; 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 submitting to the
Office of Management and Budget
(‘‘OMB’’) this request for an extension of
the proposed collection of information
in Rule 18a–2.
Rule 18a–2, 17 CFR 240.18a–2,
establishes capital requirements for
10 17

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CFR 200.30–3(a)(12).

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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
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
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).
2 5 MSBSPs × 250 hours/year = 1,250 hours/year.
3 2,000 hours/3 years = 3,333.33 + 1,250 hours =
4,583.33 hours rounded down to 4,583.

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

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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.

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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.

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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

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