dissemination of all three related transactions, market observers would
have access to information of the transaction between the two original
counterparties and the subsequent two transactions with the prime
broker, thereby allowing them to compare the prices and conditions of
these transactions. This would allow users of publicly disseminated
data to infer from these disseminated reports the fees that the prime
broker charges for its credit intermediation service and separate these
fees from the transaction price of the security-based swap.
7. Proposed Prohibition on Fees for Public Dissemination
    The Commission is proposing new Rule 900(tt), which would define
the term ``widely accessible'' as used in the definition of ``publicly
disseminate'' in Rule 900(cc), as adopted, to mean ``widely available
to users of the information on a non-fee basis.'' This proposed
definition would have the effect of prohibiting a registered SDR from
charging fees for or imposing usage restrictions on the security-based
swap transaction data that it is required to publicly disseminate under
Regulation SBSR.
    Allowing access to transaction information without cost or
restriction allows it to be quickly incorporated into security-based
swap prices by market participants, leading to increased informational
efficiency of these prices and prices in related financial markets.
Free and unrestricted access to transaction prices and volumes
facilitates a more level playing field for market participants,
particularly those that otherwise have less access to security-based
swap order flow information, potentially enhancing competition between
market participants.\277\ Finally, unburdened access to security-based
swap market data also could benefit non-security-based swap financial
market participants who may use data from the security-based swap
market as input for their decision making, potentially improving the
efficiency of capital allocation and indirectly improving the
environment for capital formation.\278\ For instance, if a single-name
CDS on a reference entity trades more often than the underlying bonds,
single-name CDS transaction prices may help investors in evaluating
whether the prices of the underlying bonds incorporate available
information about the credit risk of the issuer.\279\
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    \277\ See Regulation SBSR Adopting Release, Section XXII(D)(3).
    \278\ See Philip Bond, Alex Edmans, and Itay Goldstein, ``The
Real Effects of Financial Markets,'' Annual Review of Financial
Economics, Vol. 4 (October 2012) (reviewing the theoretical
literature on the feedback between financial market price and the
real economy).
    \279\ See Sugato Chakravarty, Huseyin Gulen, and Stewart Mayhew,
``Informed Trading in Stock and Option Markets,'' Journal of
Finance, Vol. 59, No. 3 (2004) (estimating that the proportion of
information about underlying stocks revealed first in option markets
ranges from 10% to 20%); Gary Gorton, ``Are Naked Credit Default
Swaps Too Revealing?'' (June 4, 2010), available at http://faculty.som.yale.edu/garygorton/documents/NakedCDSTooRevealingIDDJune2010.pdf (last visited October 2, 2014)
(discussing how the introduction of CDS contracts may increase the
information sensitivity of underlying bonds).
---------------------------------------------------------------------------

    The proposed prohibition on a registered SDR charging fees for
public dissemination of the regulatorily mandated security-based swap
transaction data also is consistent with the CFTC's current prohibition
on CFTC-registered SDRs charging for public dissemination of
regulatorily mandated swap transaction data. Such consistency lessens
the incentives for SDRs registered with the CFTC to enter the security-
based swap market and also register with the Commission and charge for
public dissemination of security-based swap market data.\280\ Entering
the security-based swap market would allow them to charge for public
dissemination of security-based swap market data and use those revenues
from this business to subsidize their operations in the swap market, in
which they are not permitted to charge for public dissemination of swap
market data. If an SEC-registered SDR charges fees for security-based
swap data in order to subsidize its reporting activity in the CFTC
regime, then security-based swap market participants reporting to this
SDR could face higher costs than those it would face if the SDR
participated only in the security-based swap market.
---------------------------------------------------------------------------

    \280\ Dual registration is likely to occur independent of the
ability to charge for public dissemination of data in the security-
based swap market. However, the ability to charge for public
dissemination would add an additional incentive to do so.
---------------------------------------------------------------------------

    The Commission notes two ways in which market forces may limit the
extent of cross-subsidization by registered SDRs that also publicly
disseminate swap data. First, if SDRs compete for customers of raw
security-based swap data, then SDRs operating in both regimes who
choose to subsidize their activities in the swap market by charging
higher fees for security-based swap data will likely find themselves at
a disadvantage relative to SDRs that operate only in the security-based
swap regime who can afford to offer lower fees since they, by
definition, do not cross-subsidize because they do not participate in
both markets. However, this result depends significantly on the
assumption of a competitive market for security-based swap data, which
is less likely to exist when the number of registered of SDRs is small.
Second, it is possible that there are synergies available to SDRs that
operate in both regimes. These synergies would lower the average cost
of public dissemination by these SDRs and reduce the level of subsidies
needed to cover these costs. As a result, these synergies could limit

the size of the subsidy that users of security-based swap data would
pay to users of swap data.
    Additionally, the Commission preliminarily believes that requiring
free and unrestricted access to publicly-disseminated data will
reinforce the economic effects of Rule 903(b). Rule 903(b), as adopted,
provides that a registered SDR may disseminate information using UICs
(such as product IDs or other codes--e.g., reference entity
identifiers--embedded within the product IDs) or permit UICs to be used
for reporting by its participants only if the information necessary to
interpret such UICs is widely available on a non-fee basis. In the
absence of a prohibition on fees for or restricted access to publicly-
disseminated data, the Commission is concerned that a registered SDR
that wished to charge (or allow others to charge) users for the
information necessary to understand these UICs--but could not, because
of Rule 903(b)--might seek to do so indirectly by recharacterizing the
charge as being for public dissemination. The Commission preliminarily
believes that this could reduce the economic benefits of Rule 903(b).
    The Commission acknowledges that receiving data from market
participants; cleaning, processing, and storing these data; and making
these data available to the Commission and the public are costly
services for registered SDRs to provide. If charging fees for raw
security-based swap data is prohibited, registered SDRs could employ a
number of alternative measures to ensure they have sufficient resources
to comply with the statutory and regulatory requirements imposed on
registered SDRs. Some of these measures may have negative consequences
for market participants, reducing the benefits of publicly-disseminated
data. For example, registered SDRs could charge fees to recipients of
value-added data and services. Registered SDRs that provide such data
and services for a fee may have incentives to limit the usefulness of
transaction information through free public feeds, particularly in form
and manner in which it is made available, to push market participants
towards the fee-based services. Such an outcome could hinder the
transparency goals of the reporting regime because those market
participants with resources sufficient to buy value added data and
services would continue to have an informational advantage over those
without.
    Registered SDRs also could pass the costs of publicly disseminating
security-based swap data through to the reporting parties who report
transaction data to the registered SDR. Direct fees imposed on market
participants would likely be in proportion to the number of
transactions they execute, with more active market participants, who
contribute more to the production of transaction information, paying a
larger share of the costs of disseminating that information. These
costs of SDR reporting would likely be passed through to non-dealers as
a component of transactions costs. Non-security-based swap market
participants, by contrast, would not bear any of the costs. This could
have the effect of security-based swap market participants subsidizing
other users of the raw security-based swap data through free public
feeds.
8. Proposed Compliance Schedule for Regulation SBSR
    The compliance schedule proposed in this release is designed to
provide affected persons, especially registered SDRs and persons with a
duty to report security-based swap transactions to registered SDRs,
with time to develop, test, and implement reporting and dissemination
systems. The new proposed compliance schedule takes into consideration
the fact that the CFTC's regulatory reporting and public dissemination
rules are now in effect. As a result, several SDRs have registered and
are operating under the CFTC regime in the swap market, and swap market
participants have developed substantial infrastructure to support swap
transaction reporting.\281\ It is likely that much of the
infrastructure implemented in the swap market can be repurposed for the
security-based swap market, and if so, would enable more efficient
implementation of the Commission's regime for security-based swap
reporting.
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    \281\ See Sec. Indus. & Fin. Mkts. Ass'n v. CFTC, Civil Action
No. 13-1916 (PLF), slip op. at 89 (D.D.C., September 16, 2014)
(noting that ``the plaintiffs' associations' members' declarants
have made clear that the members (or their foreign affiliates)
already have come into compliance with the [CFTC] Rules as they
apply extraterritorially'').
---------------------------------------------------------------------------

    In the newly proposed compliance schedule, the two compliance
dates, with respect to security-based swaps in a particular asset
class, are based on the date that the first registered SDR that can
accept security-based swaps in that asset class commences operations.
This approach is designed to prevent regulatory reporting and public
dissemination of security-based swap transaction data from being
delayed while additional SDRs register with the Commission and commence
operations, while still offering time for SDRs and market participants
to develop the necessary policies, procedures, and infrastructure to
become operational. For example, while reporting to a registered SDR on
a transaction-by-transaction basis would be required on the date six
months after the first registered SDR in an asset class commences
operations (i.e., proposed Compliance Date 1), public dissemination
would not be required for an additional three months (i.e., on proposed
Compliance Date 2). This three-month period is designed to allow
registered SDRs to evaluate compliance with the SDRs' requirements for
transaction reports being submitted on a mandatory basis beginning on
Compliance Date 1, and to allow persons having the duty to report--
which, as a result of the amendments proposed herein, would include
platforms, registered clearing agencies, and reporting sides--to make
any necessary adjustments to the transaction records that they submit.
Registered SDRs also would have time to test that the appropriate
subset of information provided in the regulatory report will be
publicly disseminated, with flags as required by the registered SDR's
policies and procedures.\282\
---------------------------------------------------------------------------

    \282\ See Rules 907(a)(3) and 907(a)(4), as adopted.
---------------------------------------------------------------------------

    There are potential drawbacks to the proposed compliance schedule
as well. First, new entrants into the SDR market might be at a
competitive disadvantage since they would have to adhere to compliance
dates that were set based on registration of the first SDR in that
asset class that commences operations. This would be true particularly
if persons with a duty to report face high switching costs between SDRs
and could be locked in to the first registered SDR with which they
engage. Second, the proposed compliance schedule hinges on a person
registering and then commencing operations as an SDR. As a result,
reporting to an SDR, and the associated public dissemination, might not
occur for an extended period of time.
    The Commission preliminarily believes, however, that most persons
that have the desire and ability to operate as SEC-registered SDRs are
already operational in the swaps market as CFTC-registered SDRs, and
each should have a strong incentive to submit applications to register
with the Commission quickly. Thus, there is less likelihood of multiple
applications arriving over an extended period of time, which could have
been the case when the Commission originally proposed Rules 910 and 911
in the Regulation SBSR Proposing Release in 2010, before the CFTC had
finalized its

rules and SDRs were registered by the CFTC. The newly proposed
compliance schedule could give added incentive to avoid delaying the
submission of an application for registration, and to commence
operation as an SEC-registered SDR as quickly as possible. This result
would help the Commission and other relevant authorities obtain more
complete information about the security-based swap market for oversight
purposes as quickly as possible, and also allow the public to obtain
price, volume, and transaction information about all security-based
swaps as quickly as possible.

IX. Paperwork Reduction Act

    Certain provisions of these proposed amendments to Regulation SBSR
contain ``collection of information requirements'' within the meaning
of the Paperwork Reduction Act of 1995 (``PRA'').\283\ As discussed in
Section I, supra, these proposed amendments to Regulation SBSR would
impact Rules 900, 901, 905, 906, and 908. This release also proposes
guidance for complying with certain aspects of Regulation SBSR and
proposes new compliance dates for the rules in Regulation SBSR for
which the Commission has not specified a compliance date. The titles of
the collections for Regulation SBSR are: (1) Rule 901--Reporting
Obligations--For Reporting Sides; (2) Rule 901--Reporting Obligations--
For Registered SDRs; (3) Rule 902--Public Dissemination of Transaction
Reports; (4) Rule 904--Operating Hours of Registered Security-Based
Swap Data Repositories; (5) Rule 905--Correction of Errors in Security-
Based Swap Information--For Reporting Sides; (6) Rule 905--Correction
of Errors in Security-Based Swap Information--Non-Reporting Sides; (7)
Rule 906(a)--Other Duties of All Participants--For Registered SDRs; (8)
Rule 906(a)--Other Duties of All Participants--For Non-Reporting Sides;
(9) Rule 906(b)--Other Duties of All Participants--For All
Participants; (10) Rule 906(c)--Other Duties of All Participants--For
Covered Participants; (11) Rule 907--Policies and Procedures of
Registered Security-Based Swap Data Repositories; and (12) Rule
908(c)--Substituted Compliance (OMB Control No. 3235-0718). The
estimated collection of information burdens for Regulation SBSR are
contained in the Regulation SBSR Adopting Release.\284\ The estimated
changes to these burdens and costs that would result from the proposed
rules and amendments are discussed below. Compliance with these
collections of information requirements is mandatory. The Commission is
submitting these collections of information to the Office of Management
and Budget (``OMB'') for review in accordance with 44 U.S.C. 3507(d)
and 5 CFR 1320.11. An agency may not conduct or sponsor, and a person
is not required to respond to, a collection of information unless the
agency displays a currently valid control number.
---------------------------------------------------------------------------

    \283\ 44 U.S.C. 3501 et seq.
    \284\ See Regulation SBSR Adopting Release, Section XXI.
---------------------------------------------------------------------------

A. Definitions--Rule 900

    Rule 900 sets forth definitions of various terms used in Regulation
SBSR. In this release, the Commission is proposing to amend the
definition of ``participant'' in Rule 900(u) and to create a new
defined term ``widely accessible''--in proposed Rule 900(tt)--that is
used in the definition of ``publicly disseminate'' in Rule 900(cc), as
adopted. The proposed definition of ``widely accessible'' would have to
effect of prohibiting a registered SDR from charging fees for or
imposing usage restrictions on the security-based swap transaction data
that it is required to publicly disseminate under Regulation SBSR.
    Although the Commission discusses certain costs associated with
these proposed definitions in this Section, the Commission does not
believe that these changes themselves would result in a ``collection of
information'' within the meaning of the PRA.

B. Reporting Obligations--Rule 901

1. Rule 901--As Adopted
    Rule 901, as adopted, specifies, with respect to each reportable
event pertaining to covered transactions, who is required to report,
what data must be reported, when it must be reported, where it must be
reported, and how it must be reported. Rule 901(a), as adopted,
establishes a ``reporting hierarchy'' that specifies the side that has
the duty to report a security-based swap that is a covered transaction.
Pursuant to Rule 901(b), as adopted, if there is no registered SDR that
will accept the report required by Rule 901(a), the person required to
make the report must report the transaction to the Commission. Rule
901(c) sets forth the primary trade information and Rule 901(d) sets
forth the secondary trade information that must be reported. Rule
901(e) requires the reporting of life cycle events and adjustments due
to life cycle events, which pursuant to Rule 901(j) must be reported
within 24 hours of the time of occurrence, to the entity to which the
original transaction was reported. Rule 901(f) requires a registered
SDR to timestamp, to the second, any information submitted to it
pursuant to Rule 901, and Rule 901(g) requires a registered SDR to
assign a transaction ID to each security-based swap, or establish or
endorse a methodology for transaction IDs to be assigned by third
parties. Rule 901(h) requires reporting sides to electronically
transmit the information required by Rule 901 in a format required by
the registered SDR. Rule 901(i) requires reporting of pre-enactment
security-based swaps and transitional security-based swaps to the
extent that information about such transactions is available.
    For Reporting Sides. The Commission estimated that Rule 901, as
adopted, will impose an estimated total first-year burden of
approximately 1,394 hours \285\ per reporting side for a total first-
year burden of 418,200 hours for all reporting sides.\286\ The
Commission estimated that Rule 901, as adopted, will impose ongoing
annualized aggregate burdens of approximately 687 hours \287\ per
reporting side for a total aggregate annualized cost of 206,100 hours
for all reporting sides.\288\ The Commission further estimated that
Rule 901, as adopted, will impose initial and ongoing annualized dollar
cost burdens of $201,000 per reporting side, for total aggregate
initial and ongoing annualized dollar cost burdens of $60,300,000.\289\
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    \285\ See Regulation SBSR Adopting Release, Section XXI(B). The
Commission derived its estimate from the following: (355 hours (one-
time hourly burden for establishing and OMS) + 172 hours (one-time
hourly burden for establishing security-based swap reporting
mechanisms) + 180 hours (one-time hourly burden for compliance and
ongoing support) = 707 hours (one-time total hourly burden). See
Regulation SBSR Proposing Release, 75 FR 75248-50, notes 186, 194,
and 201. (436 hours (annual-ongoing hourly burden for internal order
management) + 33.3 hours (revised annual-ongoing hourly burden for
security-based swap reporting mechanisms) + 218 hours (annual-
ongoing hourly burden for compliance and ongoing support) = 687.3
hours (one-time total hourly burden. See id. at 75248-50, notes 187
and 201 (707 one-time hourly burden + 687 revised annual-ongoing
hourly burden = 1,394 total first-year hourly burden).
    \286\ See Regulation SBSR Adopting Release, Section XXI(B). The
Commission derived its estimate from the following: (1,394 hours per
reporting side x 300 reporting sides) = 418,200 hours.
    \287\ See Regulation SBSR Adopting Release, Section XXI(B). See
Cross-Border Proposing Release, 78 FR 31112-15.
    \288\ See Regulation SBSR Adopting Release, Section XXI(B). The
Commission derived its estimate from the following: (687 hours per
reporting side x 300 reporting sides) = 206,100 hours.
    \289\ See Regulation SBSR Adopting Release, Section XXI(B). The
Commission derived its estimate from the following: ($201,000 per
reporting side x 300 reporting sides) = $60,300,000. See Cross-
Border Proposing Release, 78 FR 31113-15. The Commission originally
estimated this burden based on discussions with various market
participants. See Regulation SBSR Proposing Release, 75 FR 75247-50.

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

    For Registered SDRs. The Commission estimated that the first-year
aggregate annualized burden on registered SDRs associated with Rules
901(f) and 901(g) will be 2,820 burden hours, which corresponds to 282
burden hours per registered SDR.\290\ The Commission also estimated
that the ongoing aggregate annualized burden associated with Rules
901(f) and 901(g) will be 1,520 burden hours, which corresponds to 152
burden hours per registered SDR.\291\
---------------------------------------------------------------------------

    \290\ See Regulation SBSR Adopting Release, Section XXI(B). See
Regulation SBSR Proposing Release, 75 FR 75250. This figure is based
on the following: [(1,200) + (1,520)] = 2,720 burden hours, which
corresponds to 272 burden hours per registered SDR.
    \291\ See Regulation SBSR Adopting Release, Section XXI(B).
---------------------------------------------------------------------------

2. Rule 901--Proposed Amendments
    The proposed amendments to Rule 901 would establish certain
requirements relating to the reporting of security-based swap
transactions to a registered SDR. Rule 901 of Regulation SBSR, as
adopted, contained ``collection of information requirements'' within
the meaning of the PRA, and the proposed amendments to Rule 901 contain
additional ``collection of information requirements'' within the
meaning of the PRA, which are discussed below. The title of this
collection is ``Rule 901--Reporting Obligations for Platforms and
Clearing Agencies.''
a. Summary of Collection of Information
    The Commission is proposing reporting obligations for those
security-based swaps that are clearing transactions or that are
executed on a platform and will be submitted to clearing. In order to
facilitate such reporting, the Commission is proposing Rules 901(a)(1),
901(a)(2)(i), and 901(a)(3). Pursuant to new subparagraph (1) of Rule
901(a), if a security-based swap is executed on a platform and will be
submitted to clearing, the platform on which the transaction was
executed shall have the duty to report the transaction to a registered
SDR. The Commission also is proposing a new subparagraph (2)(i) of Rule
901(a) that would assign the reporting duty for a clearing transaction
to the registered clearing agency that is a counterparty to the
security-based swap.
    The Commission also is proposing to add a new subparagraph (3) to
Rule 901(a) that would require any person that has a duty to report a
security-based swap that is submitted to clearing--which would be a
platform or a reporting side--to provide the registered clearing agency
with the transaction ID of the alpha and the identity of the registered
SDR to which the alpha will be reported or has been reported.
b. Proposed Use of Information
    The security-based swap transaction information that would be
required by the proposed amendments to Rule 901 would be used by
registered SDRs, market participants, the Commission, and other
relevant authorities. The information reported by platforms and
registered clearing agencies pursuant to Rule 901 would be used by
registered SDRs to publicly disseminate reports of security-based swap
transactions, as well as to offer a resource for the Commission and
other relevant authorities to obtain detailed information about the
security-based swap market. Market participants also would use the
information about these transactions that is publicly disseminated,
among other things, to assess the current market for security-based
swaps and any underlying securities and to assist in the valuation of
their own positions. The Commission and other relevant authorities
would use information about security-based swap transactions reported
to and held by registered SDRs to monitor and assess systemic risks, as
well as to examine for and consider whether to take enforcement action
against potentially abusive trading behavior, as appropriate.
c. Respondents
    In the Regulation SBSR Adopting Release, the Commission estimated
300 reporting side respondents and that, among the 300 reporting sides,
approximately 50 are likely to be required to register with the
Commission as security-based swap dealers and approximately five are
likely to register as major security-based swap participants.\292\ The
Commission noted that these 55 reporting sides likely will account for
the vast majority of recent security-based swap transactions and
reports and that there are only a limited number of security-based swap
transactions that do not include at least one of these larger
counterparties on either side.\293\ Finally, the Commission estimated
that the number of registered SDRs would not exceed ten.\294\
---------------------------------------------------------------------------

    \292\ See Regulation SBSR Adopting Release, Section XXI(B)(3).
    \293\ See id.
    \294\ See id.
---------------------------------------------------------------------------

    Proposed Rules 901(a)(1) and 901(a)(2)(i) would assign reporting
duties for security-based swap transactions, in certain enumerated
cases set forth in these rules, to platforms and registered clearing
agencies, respectively. The Commission preliminarily believes that
these proposed amendments to Rule 901(a) would result in 14 additional
respondents incurring the duty to report under Regulation SBSR.
Specifically, the Commission believes that there would be ten platforms
(exchanges and SB SEFs) and four registered clearing agencies that
would incur such duties. Proposed Rule 901(a)(3) would require a
person--either the platform upon which the security-based swap was
executed or the reporting side for those security-based swaps other
than clearing transactions--to report, for those security-bases swaps
submitted to a registered clearing agency, the transaction ID of the
submitted security-based swap and the identity of the registered SDR to
which the transaction will be or has been reported. The Commission
preliminarily believes that proposed Rule 901(a)(3) would place
reporting obligations on 300 reporting sides and 10 platforms.
d. Total Initial and Annual Reporting and Recordkeeping Burdens
i. Platforms and Registered Clearing Agencies
    Pursuant to Rule 901, all security-based swap transactions must be
reported to a registered SDR or to the Commission. Together, paragraphs
(a), (b), (c), (d), (e), (h), and (j) of Rule 901 set forth the
parameters that reporting entities must follow to report security-based
swap transactions. Because platforms and registered clearing agencies
now would have the duty to report, initial and ongoing burdens would be
placed on these entities. The Commission preliminarily believes that
these burdens will be a function of, among other things, the number of
reportable events and the data elements required to be reported for
each such event.
    In the Regulation SBSR Adopting Release, the Commission estimated
that respondents would face three categories of burdens to comply with
Rule 901.\295\ The Commission preliminarily believes that platforms and
registered clearing agencies would face the same categories of burdens
as those identified in the Regulation SBSR Adopting Release for other
types of respondents. First, each platform and registered clearing
agency

would likely have to develop the ability to capture the relevant
transaction information.\296\ Second, each platform and registered
clearing agency would have to implement a reporting mechanism. Third,
each platform and registered clearing agency would have to establish an
appropriate compliance program and support for the operation of any
system related to the capture and reporting of transaction information.
The Commission preliminarily believes that platforms and registered
clearing agencies would need to develop capabilities similar to those
highlighted in the Regulation SBSR Adopting Release in order to be able
to capture and report security-based swap transactions. The Commission
also preliminarily believes that, once a platform or registered
clearing agency's reporting infrastructure and compliance systems are
in place, the burden of reporting each individual reportable event will
be small when compared to the burdens of establishing the reporting
infrastructure and compliance systems.\297\ The Commission
preliminarily believes that all of the reportable events, for which
platforms and registered clearing agencies would be responsible for
reporting, will be reported through electronic means.
---------------------------------------------------------------------------

    \295\ See Regulation SBSR Adopting Release, Section XXI(B)(4).
    \296\ In the Regulation SBSR Adopting Release, the Commission
discussed the development, by reporting sides, of an internal order
and trade management system. The Commission believes that the costs
of developing a transaction processing system are comparable to the
costs discussed therein. Although the actual reporting
infrastructure needed by platforms and registered clearing agencies
could have some attributes that differ from the attributes of an
internal order and trade management system, the Commission
nonetheless preliminarily believes that the cost of implementing a
transaction processing system, and establishing an appropriate
compliance program and support for the operation of the system, will
be similar to the costs for reporting sides discussed in the
Regulation SBSR Adopting Release.
    \297\ In the Regulation SBSR Adopting Release, the Commission
reiterated its belief that reporting specific security-based swap
transactions to a registered SDR--separate from the establishing of
infrastructure and compliance systems that support reporting--would
impose an annual aggregate cost of approximately $5,400,000. See
Regulation SBSR Adopting Release, Section XXI(B)(4).
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    The Commission estimates that the total burden placed upon
reporting sides as a result of Rule 901 would be approximately 1,361
hours \298\ per reporting side during the first year.\299\ The
Commission preliminarily believes that this per-entity cost would be
the same for platforms and registered clearing agencies, resulting in a
total first-year burden of 19,054 hours for all platforms and
registered clearing agencies under the proposed amendments to Rule
901.\300\ The Commission estimates that the proposed amendments to Rule
901 would impose ongoing annualized aggregate burdens of approximately
654 hours \301\ per reporting entity for a total aggregate annualized
cost of 9,156 hours for all platforms and registered clearing
agencies.\302\ The Commission further preliminarily estimates that the
proposed amendments to Rule 901 would impose initial and ongoing
annualized dollar cost burdens of $201,000 per reporting entity,\303\
for total aggregate initial and ongoing annualized dollar cost burdens
of $2,814,000.\304\
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    \298\ The Commission derived its estimate from the following:
(355 hours (one-time hourly burden for establishing and OMS) + 172
hours (one-time hourly burden for establishing security-based swap
reporting mechanisms) + 180 hours (one-time hourly burden for
compliance and ongoing support) = 707 hours (one-time total hourly
burden). See Regulation SBSR Proposing Release, 75 FR 75248-50,
notes 186, 194, and 201. (436 hours (annual-ongoing hourly burden
for order management) + 218 hours (annual-ongoing hourly burden for
compliance and ongoing support) = 654 hours (one-time total hourly
burden. See id. at 75248-50, notes 187 and 201 (707 one-time hourly
burden + 654 revised annual-ongoing hourly burden = 1,361 total
first-year hourly burden).
    \299\ See Regulation SBSR Adopting Release, Section XXI(B)(4).
    \300\ The Commission derived its estimate from the following:
(1,361 hours per reporting entity x 14 platforms and registered
clearing agencies) = 19,054 hours.
    \301\ See supra note 298.
    \302\ The Commission derived its estimate from the following:
(654 hours per reporting entity x 14 platforms and registered
clearing agencies) = 9,156 hours.
    \303\ This figure is based on the sum of per-reporting entity
estimates for connectivity to SDRs for data reporting, as follows:
[($100,000 hardware- and software-related expenses, including
necessary back-up and redundancy, per SDR connection) x (2 SDR
connections per reporting entity)] + [($250/gigabyte of storage
capacity) x (4 gigabytes of storage capacity)] = $201,000. See
Regulation SBSR Proposing Release, 75 FR 75248-49, notes 188 and
193.
    \304\ The Commission derived its estimate from the following:
($201,000 per reporting side x 14 reporting sides) = $2,814,000. See
also Cross-Border Proposing Release, 78 FR 31112-15.
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    In the Regulation SBSR Adopting Release, the Commission revised its
previous estimates of the number of reportable events associated with
security-based swap transactions to approximately 3 million reportable
events per year under Rule 901, an estimate that the Commission
continues to believe is valid for the purposes of the Regulation SBSR
Proposed Amendments.\305\ The Commission estimated in the Regulation
SBSR Adopting Release that Rule 901(a), as adopted in that release,
will result in approximately 2 million reportable events related to
covered transactions.\306\
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    \305\ See Regulation SBSR Adopting Release, Section
XXI(B)(4)(b).
    \306\ See id.
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    The Commission preliminarily estimates that 1 million of the 3
million total reportable events would be reported as a result of the
proposed amendments to Rule 901.\307\ The Commission believes that
these 1 million reportable events would include the initial reporting
of the security-based swap by platforms and clearing agencies as well
as the reporting of any life cycle events. The Commission preliminarily
estimates that of the 1 million reportable events, approximately
370,000 would involve the reporting of new security-based swap
transactions, and approximately 630,000 would involve the reporting of
life cycle events under Rule 901(e).\308\ As a result, the Commission
preliminarily estimates that platforms will be responsible for the
reporting of approximately 120,000 security-based swaps.\309\ The
Commission preliminarily estimates that the proposed amendments to Rule
901(a) would result in platforms having a total burden of 600 hours
attributable to the reporting of security-based swaps by platform to
registered SDRs under Rules 901(c) and 901(d) over the course of a
year.\310\ The Commission preliminarily

estimates that the proposed amendments to Rule 901(a) would result in
registered clearing agencies having a total burden of 1,250 hours
attributable to the reporting of security-based swaps to registered
SDRs over the course of a year.\311\ The Commission preliminarily
estimates that the proposed amendments to Rule 901(a) would result in
registered clearing agencies having a total burden of 3,150 hours
attributable to the reporting of life cycle events to registered SDRs
under Rule 901(e) over the course of a year.\312\ The Commission
preliminarily believes that the proposed amendments would result in a
total reporting burden for registered clearing agencies under Rules
901(c) and (d) along with the reporting of life cycle events under Rule
901(e) of 4,400 burden hours.\313\ The Commission believes that all
reportable events that would be reported by platforms and registered
clearing agencies pursuant to these proposed amendments would be
reported through electronic means.
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    \307\ The Commission is proposing to amend Rule 901(a)(2) to
require a registered clearing agency to be the reporting side for
clearing transactions to which it is a counterparty. The Commission
is further proposing to amend Rule 901(e)(1) to provide that a
``registered clearing agency shall report whether or not it has
accepted a security-based swap for clearing.'' Proposed Rule
901(a)(2)(i), discussed above, would require registered clearing
agencies to report security-based swap transaction information for
clearing transactions. These reportable events have been included in
the Commission's estimates of the number of reportable events for
the purposes of Rule 901. In arriving at the of 1 million reporting
events, the Commission has included the following: (1) The
termination of the original or ``alpha'' security-based swap; (2)
the creation of beta and gamma security-based swaps; (3) the
termination of beta, gamma, and any previous open positions during
each netting cycle; and (4) any other transactions that are entered
into by the registered clearing agency.
    \308\ See supra note 235.
    \309\ The Commission preliminarily believes that platforms will
be responsible only for the reporting of any initial security-based
swaps that are executed on their facilities. Since only platform-
executed security-based swaps that will be submitted to a registered
clearing agency for clearing are subject to this proposal, platforms
would not be responsible for any life cycle event reporting under
Rule 901(e). The Commission estimates that platforms would be
responsible for reporting only approximately one third of the
360,000 security-based swaps (or 120,000 security-based swaps) and
registered clearing agencies (as a result of the creation of new
security-based swaps during the clearing process) would be
responsible for the reporting of the remaining two-thirds of
security-based swaps (or 250,000 security-based swaps).
    \310\ See Regulation SBSR Adopting Release, Section XXI(B)(4).
In the Regulation SBSR Proposing Release, the Commission estimated
that it would take approximately 0.005 hours for each security-based
swap transaction to be reported. See 75 FR 75249, note 195. The
Commission calculates the following: ((120,000 x 0.005)/(10
platforms)) = 60 burden hours per platform or 600 total burden hours
attributable to the reporting of security-based swaps.
    \311\ See Regulation SBSR Adopting Release, Section XXI(B)(4).
In the Regulation SBSR Proposing Release, the Commission estimated
that it would take approximately 0.005 hours for each security-based
swap transaction to be reported. See 75 FR 75249, note 195. The
Commission calculates the following: ((250,000 x 0.005)/(4
registered clearing agencies)) = 312.5 burden hours per registered
clearing agency or 1,250 total burden hours attributable to the
reporting of security-based swaps.
    \312\ See Regulation SBSR Adopting Release, Section XXI(B)(4).
In the Regulation SBSR Proposing Release, the Commission estimated
that it would take approximately 0.005 hours for each security-based
swap transaction to be reported. See 75 FR 75249, note 195. The
Commission calculates the following: ((630,000 x 0.005)/(4
registered clearing agencies)) = 787.5 burden hours per registered
clearing agency or 3,150 total burden hours attributable to the
reporting of life cycle events under Rule 901(e).
    \313\ As is discussed immediately above, the Commission
preliminarily believes that registered clearing agencies would incur
a burden of 1,250 hours attributable to the reporting of security-
based swaps pursuant to proposed Rule 901(a)(2)(i) along with a
burden of 3,150 hours attributable to the reporting of life cycle
events under Rule 901(e). As discussed in note 309, supra, platforms
would not be responsible for the reporting of any life cycle events
of any platform-executed security-based swap that will be submitted
to clearing.
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    The Commission recognizes that some entities that would qualify as
platforms or registered clearing agencies may have already spent time
and resources building the infrastructure that will support their
eventual reporting of security-based swaps. The Commission notes that,
as a result, the burdens and costs estimated herein could be greater
than those actually incurred by affected parties as a result of
compliance with the proposed amendments to Rule 901(a). Nonetheless,
the Commission believes that its estimates represent a reasonable upper
bound of the actual burdens and costs required to comply with the
paperwork burdens associated with the proposed amendments to Rule
901(a).
ii. Platforms and Reporting Sides
    Proposed Rule 901(a)(3) would require a person, either the platform
upon which the security-based swap was executed or the reporting side
for those security-based swaps other than clearing transactions, to
report, for those security-bases swaps submitted to a registered
clearing agency, the transaction ID of the submitted security-based
swap and the identity of the registered SDR to which the transaction
will be or has been reported.
    Rule 901(a)(3) would require certain information (transaction ID
and the identity of the registered SDR) to be reported to a registered
clearing agency only if such security-based swap has been submitted to
a registered clearing agency for clearing. As a result, platforms and
reporting sides required to report transaction IDs and the identity of
a registered SDR will already have put into place any infrastructure
needed to report these security-based swaps to a registered clearing
agency.\314\ However, the Commission does believe that including these
items would result in additional development and maintenance burdens.
Specifically, the Commission preliminarily believes that the additional
one-time burden related to the development of the ability to capture
the additional specific data elements required by proposed Rule
901(a)(3) would be 10 burden hours and the additional one-time burden
related to the implementation of a reporting mechanism would be 6
burden hours, per platform and reporting side.\315\ The Commission
preliminarily believes that the additional ongoing burden related to
the ability to capture the additional specific data elements required
by proposed Rule 901(a)(3) would be 10 burden hours and the additional
ongoing burden related to the maintenance of the reporting mechanism
would be 2 burden hours, per platform and reporting side.\316\
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    \314\ The required infrastructure for platforms and related
burdens and costs are discussed in Section IX(B)(2)(d)(i), supra.
For reporting sides, the required infrastructure and related burdens
and costs are already accounted for in the Regulation SBSR Adopting
Release, Section XXI(B)(4). The additional burdens discussed in this
paragraph related to the ability to capture the additional specific
data elements, as would be required by proposed Rule 901(a)(3),
would be incremental burdens that are in addition to the previously
established infrastructure burdens and costs.
    \315\ The Commission preliminarily estimates that the additional
burdens would be: [(Sr. Programmer (5 hours) + Sr. Systems Analyst
(5 hours)) = 10 burden hours (development of the ability to capture
transaction information); (Sr. Programmer (3 hours) + Sr. Systems
Analyst (3 hours)) = 6 burden hours (implementation of reporting
mechanism)]. The total one-time burden associated with the
amendments to 901(a) would be 16 burden hours per platform and
reporting side for a total one-time burden of 4960 hours (16 x 310
(300 reporting sides + 10 platforms)).
    \316\ The Commission preliminarily estimates that the additional
burdens would be: [(Sr. Programmer (5 hours) + Sr. Systems Analyst
(5 hours)) = 10 burden hours (maintenance of transaction capture
system); (Sr. Programmer (1 hour) + Sr. Systems Analyst (1 hour)) =
2 burden hours (maintenance of reporting mechanism)]. The total
ongoing burden associated with the proposed amendments to Rule
901(a) would be 12 burden hours per platform and reporting side for
a total ongoing burden of 3,720 hours (12 x 310 (300 reporting sides
+ 10 platforms)).
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iii. Bunched Order Executions and Allocations
    As explained in Section VIII of the Regulation SBSR Adopting
Release and Section III, supra, bunched order executions and
allocations must be reported to a registered SDR pursuant to Rule
901(a). The Regulation SBSR Adopting Release explains how Regulation
SBSR applies to executed bunched orders that are reported pursuant to
the reporting hierarchy in Rule 901(a)(2)(ii), as adopted. That release
also explains how Regulation SBSR applies to the security-based swaps
that result from allocation of an executed bunched order, if the
resulting security-based swaps are uncleared. In Section III, supra,
the Commission explained how Regulation SBSR, as adopted and as
proposed to be amended by this release, would apply to a platform-
executed bunched order that will be submitted to clearing, and the
security-based swaps that result from the allocation of any bunched
order execution, if the resulting security-based swaps are cleared. The
Commission included in its estimates of the number of reportable events
in the Regulation SBSR Adopting Release security-based swaps that
result from the allocation of bunched order executions that would be
submitted to clearing, if the resulting security-based swaps are
cleared. Thus, there is no burden associated with bunched order
executions and allocations that has not already been taken into
account.
iv. Prime Brokerage Transactions
    The Commission preliminarily believes that in a prime brokerage
transaction the customer/executing dealer transaction is a security-
based

swap that must be reported pursuant to Rule 901(a)(2)(ii), as adopted.
The Commission further preliminarily believes that the prime broker/
customer and prime broker/executing dealer transactions also are
security-based swaps that must be reported pursuant to Rule
901(a)(2)(ii). In this release, the Commission clarifies that prime
brokerage transactions were included in the estimates of security-based
swap transactions that are required to be reported, and as a result, do
not represent any new burdens.\317\
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    \317\ As is discussed in Section VIII(D)(6), supra, the
Commission does not believe that the interpretive guidance would
create any new duties. As a result, the Commission does not believe
that there would be any burdens or any additional costs or benefits
beyond those already considered in the Regulation SBSR Adopting
Release. The Commission's estimates of the number of reportable
events included all legs of prime brokerage transactions. See supra
note 276.
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e. Recordkeeping Requirements
    Apart from the duty to report certain transaction information to a
registered SDR, the Commission does not believe that Rule 901 would
result in any recordkeeping requirement for platform and reporting
sides. As is stated in the SDR Adopting Release, Rule 13n-5(b)(4) under
the Exchange Act requires an SDR to maintain the transaction data and
related identifying information that it collects for not less than five
years after the applicable security-based swap expires, and historical
positions for not less than five years.\318\ Accordingly, security-
based swap transaction reports received by a registered SDR pursuant to
Rule 901 would be required to be retained by the registered SDR for not
less than five years after the applicable security-based swap expires.
The Commission does not believe that reporting of security-based swap
transactions by platforms or registered clearing agencies--or the
inclusion of two additional data elements--would have any impact on the
PRA burdens of registered SDRs as detailed in the SDR Adopting Release.
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    \318\ See SDR Adopting Release, Section VI(E)(4).
---------------------------------------------------------------------------

f. Collection of Information Is Mandatory
    Each collection of information discussed above is mandatory.
g. Confidentiality of Responses to Collection of Information
    A registered SDR, pursuant to Sections 13(n)(5) of the Exchange Act
and Rules 13n-4(b)(8) and 13n-9 thereunder, is required to maintain the
privacy of the security-based swap information it receives. For the
majority of security-based swap transactions, the information collected
pursuant to Rule 901(c) by a registered SDR will be publicly
disseminated. However, certain security-based swaps are not subject to
Rule 902's public dissemination requirement; therefore, information
about these transactions will not be publicly available. In addition,
for all security-based swaps, the information collected pursuant to
Rule 901(d) is for regulatory purposes only and will not be widely
available to the public. To the extent that the Commission receives
confidential information pursuant to this collection of information,
such information would be kept confidential, subject to the provisions
of applicable law.
3. Rule 901--Aggregate Total PRA Burdens and Costs
    Based on the foregoing, the Commission estimates the following
aggregate total PRA burdens and costs, by category of entity, resulting
from Rule 901, as adopted and as proposed to be amended herein.
a. For Platforms
    As discussed above, the Regulation SBSR Adopting Release, the
Commission estimated burdens and costs for reporting sides under Rule
901. The Commission estimated that Rule 901, as adopted, will impose an
estimated total first-year burden of approximately 1,394 hours \319\
per reporting side for a total first-year burden of 418,200 hours for
all reporting sides.\320\ The Commission estimated that Rule 901, as
adopted, will impose ongoing annualized aggregate burdens of
approximately 687 hours \321\ per reporting side for a total aggregate
annualized cost of 206,100 hours for all reporting sides.\322\ The
Commission further estimated that Rule 901, as adopted, will impose
initial and ongoing annualized dollar cost burdens of $201,000 per
reporting side, for total aggregate initial and ongoing annualized
dollar cost burdens of $60,300,000.\323\
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    \319\ See Regulation SBSR Adopting Release, Section XXI(B).
    \320\ See id.
    \321\ See id.
    \322\ See id.
    \323\ See id.
---------------------------------------------------------------------------

    The Commission preliminarily believes that platforms would have a
first-year burden of 1,361 hours per platform, for a total first-year
burden of 13,610 hours under proposed Rule 901(a)(1).\324\ The
Commission also preliminarily estimates that proposed Rule 901(a)(1)
would impose ongoing annualized aggregate burdens of approximately 654
hours \325\ per platform for a total aggregate annualized burden of
6,540 hours for all platforms.\326\ The Commission further
preliminarily estimates that the proposed Rule 901(a)(1) would impose
initial and ongoing annualized dollar cost burdens of $201,000 per
platform,\327\ for total aggregate initial and ongoing annualized
dollar cost burdens of $2,010,000.\328\
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    \324\ The Commission derived its estimate from the following:
(1,361 hours per platform x 10 platforms) = 13,610 hours.
    \325\ See Cross-Border Proposing Release, 78 FR 31112-15.
    \326\ The Commission derived its estimate from the following:
(654 hours per platform x 10 platforms) = 6,540 hours.
    \327\ This figure is based on the sum of per-entity estimates
for connectivity to SDRs for data reporting, as follows: [($100,000
hardware- and software-related expenses, including necessary back-up
and redundancy, per SDR connection) x (2 SDR connections per
platform)] + [($250/gigabyte of storage capacity) x (4 gigabytes of
storage capacity)] = $201,000.
    \328\ The Commission derived its estimate from the following:
($201,000 per platform x 10 platforms) = $2,010,000. See also Cross-
Border Proposing Release, 78 FR 31112-15.
---------------------------------------------------------------------------

    The Commission preliminarily estimates that the proposed amendments
to Rule 901(a) would result in platforms having a total burden of 600
hours attributable to the reporting of security-based swaps to
registered SDRs over the course of a year, or 60 hours per platform.
    The Commission preliminarily believes that the additional one-time
burden related to the development of the ability to capture the
relevant transaction information, required by proposed Rule 901(a)(3),
would be 10 burden hours and the additional one-time burden related to
the implementation of a reporting mechanism would be 6 burden hours,
per platform. The Commission preliminarily believes that the additional
ongoing burden related to the development of the ability to capture the
relevant transaction information would be 10 burden hours and the
additional ongoing burden related to the maintenance of the reporting
mechanism would be 2 burden hours, per platform. As a result, the
Commission estimates that the total first-year burden would be 28 hours
and the ongoing annual burden would be 12 hours.
    As a result of these proposed requirements, the Commission
preliminarily estimates that platforms would have a total first-year
burden of 14,490 hours, or 1,449 hours per platform.\329\ In addition,
the

Commission preliminarily estimates that platforms would have an ongoing
annual burden of 7,260 hours, or 726 hours per platform.\330\ The
Commission also preliminarily estimates that each platform would have
connectivity costs of $201,000 in the first year and each year
thereafter.
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    \329\ The Commission derived its estimate from the following:
((1,361 hours + 60 hours + 28) per platform x 10 platforms) = 14,490
hours.
    \330\ The Commission derived its estimate from the following:
((654 hours + 60 hours + 12 hours) per platform x 10 platforms) =
7,260 hours.
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b. For Registered Clearing Agencies
    The Commission preliminarily believes that registered clearing
agencies would have a first-year burden of 1,361 hours per registered
clearing agency, for a total first-year burden of 5,444 hours under
Rule 901 (before including the burdens related to the reporting of
individual security-based swap transactions).\331\ The Commission also
preliminarily estimates that Rule 901 would impose ongoing annualized
aggregate burdens of approximately 654 hours \332\ per registered
clearing agency for a total aggregate annualized burden of 2,616 hours
for all registered clearing agencies.\333\ The Commission further
preliminarily estimates that the proposed Rule 901(a)(2)(i) would
impose initial and ongoing annualized dollar cost burdens of $201,000
per registered clearing agency,\334\ for total aggregate initial and
ongoing annualized dollar cost burdens of $804,000.\335\
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    \331\ The Commission derived its estimate from the following:
(1,361 hours per registered clearing agency x 4 registered clearing
agencies) = 5,444 hours.
    \332\ See supra note 302.
    \333\ The Commission derived its estimate from the following:
(654 hours per reporting entity x 4 registered clearing agencies) =
2,616 hours.
    \334\ This figure is based on the sum of per-reporting entity
estimates for connectivity to SDRs for data reporting, as follows:
[($100,000 hardware- and software-related expenses, including
necessary back-up and redundancy, per SDR connection) x (2 SDR
connections per reporting entity)] + [($250/gigabyte of storage
capacity) x (4 gigabytes of storage capacity)] = $201,000.
    \335\ The Commission derived its estimate from the following:
($201,000 per reporting side x 4 registered clearing agencies) =
$804,000. See also Cross-Border Proposing Release, 78 FR 31112-15.
---------------------------------------------------------------------------

    The Commission preliminarily estimates that the proposed Rule
901(a)(2)(i) would result in registered clearing agencies having a
total burden of 1,250 hours attributable to the initial reporting of
security-based swaps to registered SDRs over the course of a year, or
312.5 hours per registered clearing agency. The Commission
preliminarily estimates that the proposed amendments to Rule 901(a)
would result in registered clearing agencies having a total burden of
3,150 hours attributable to the reporting of life cycle events by
registered clearing agencies to registered SDRs under Rule 901(e) over
the course of a year, or 787.5 hours per registered clearing agency.
The Commission preliminarily believes that the proposed amendments
would result in a total annual burden on registered clearing agencies
to report security-based swaps and life cycle events of 4,400 burden
hours, or 1,100 hours per registered clearing agency.
    The Commission preliminarily estimates that, as a result of these
proposed requirements, registered clearing agencies would have a total
first-year burden of 9,844 hours, or 2,461 hours per registered
clearing agency.\336\ In addition, the Commission preliminarily
estimates that registered clearing agencies would have an ongoing
annual burden of 7,328 hours, or 1,754 hours per registered clearing
agency.\337\ The Commission also preliminarily estimates that each
registered clearing agency would have connectivity costs of $201,000 in
the first year and each year thereafter.\338\
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    \336\ The Commission derived its estimate from the following:
((1,361 hours + 312.5 hours + 787.5 hours) per registered clearing
agency x 4 registered clearing agencies) = 9,844 hours.
    \337\ The Commission derived its estimate from the following:
((654 hours + 312.5 hours + 787.5 hours) per registered clearing
agency x 4 registered clearing agencies) = 7,016 hours.
    \338\ See supra note 334.
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c. For Reporting Sides
    The Commission preliminarily believes that, as a result of proposed
Rule 901(a)(3), reporting sides would have a first-year burden of 1,394
hours per reporting side, for a total first-year burden of 418,200
hours.\339\ The Commission also preliminarily estimates that proposed
Rule 901(a)(3) would impose ongoing annualized aggregate burdens of
approximately 687 hours \340\ per reporting side, for a total aggregate
annualized burden of 206,100 hours for all reporting sides.\341\ The
Commission further preliminarily estimates that the proposed Rule
901(a)(3) would impose initial and ongoing annualized dollar cost
burdens of $201,000 per registered clearing agency,\342\ for total
aggregate initial and ongoing annualized dollar cost burdens of
$60,300,000.\343\
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    \339\ The Commission derived its estimate from the following:
(1,394 hours per reporting side x 300 reporting sides) = 418,200
hours.
    \340\ See Cross-Border Proposing Release, 78 FR 31112-15.
    \341\ The Commission derived its estimate from the following:
(687 hours per reporting side x 300 reporting sides) = 206,100
hours.
    \342\ This figure is based on the sum of per-reporting side
estimates for connectivity to SDRs for data reporting, as follows:
[($100,000 hardware- and software-related expenses, including
necessary back-up and redundancy, per SDR connection) x (2 SDR
connections per reporting side)] + [($250/gigabyte of storage
capacity) x (4 gigabytes of storage capacity)] = $201,000.
    \343\ The Commission derived its estimate from the following:
($201,000 per reporting side x 300 reporting sides) = $60,300,000.
See also Cross-Border Proposing Release, 78 FR 31112-15.
---------------------------------------------------------------------------

    As discussed above, the Commission estimated that Rule 901(a), as
previously adopted, will result in reporting sides having a total
burden of 2,500 hours attributable to the reporting of security-based
swaps to registered SDRs under Rules 901(c) and 901(d) over the course
of a year, or 8.33 hours per reporting side. The Commission further
estimated that Rule 901(a), as previously adopted, would result in
reporting sides having a total burden of 7,500 hours attributable to
the reporting of life cycle events to registered SDRs under Rule 901(e)
over the course of a year, or 25 hours per reporting side. As a result,
the Commission stated its belief that the total burden associated with
the reporting of security-based swaps under Rules 901(c) and 901(d),
along with the reporting of life cycle events under Rule 901(e), would
be 10,000 hours, or 33.33 hours per reporting side.
    The Commission preliminarily believes that the additional one-time
burden related to the development of the ability to capture the
relevant transaction information, required by proposed Rule 901(a)(3),
would be 10 burden hours and the additional one-time burden related to
the implementation of a reporting mechanism would be 6 burden hours,
per reporting side. The Commission preliminarily believes that the
additional ongoing burden related to the development of the ability to
capture the relevant transaction information would be 10 burden hours
and the additional ongoing burden related to the maintenance of the
reporting mechanism would be 2 burden hours, per reporting side. As a
result, the Commission estimates that the total first-year burden would
be 28 hours and the ongoing annual burden would be 12 hours.
    As a result of these proposed requirements, the Commission
preliminarily estimates that reporting sides would have a total first-
year burden of 436,599 hours, or 1,455.33 hours per reporting
side.\344\ In addition, the Commission preliminarily estimates that
reporting sides would have an ongoing annual burden of 219,699 hours,
or 732.33 hours per reporting

side.\345\ The Commission also preliminarily estimates that each
reporting side would have connectivity costs of $201,000 in the first
year and each year thereafter.
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    \344\ The Commission derived its estimate from the following:
((1,394 hours + 33.33 hours + 28) per reporting sides x 300
reporting sides) = 436,599 hours.
    \345\ The Commission derived its estimate from the following:
((687 hours + 33.33 hours + 12 hours) per reporting side x 300
reporting sides) = 219,699 hours.
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C. Correction of Errors in Security-Based Swap Information--Rule 905

1. Rule 905--As Adopted
    Rule 905, as adopted, establishes procedures for correcting errors
in reported and disseminated security-based swap information. Under
Rule 905(a)(1), where a side that was not the reporting side for a
security-based swap transaction discovers an error in the information
reported with respect to such security-based swap, the counterparty
must promptly notify the reporting side of the error. Under Rule
905(a)(2), as adopted, where a reporting side for a security-based swap
transaction discovers an error in the information reported with respect
to a security-based swap, or receives notification from its
counterparty of an error, the reporting side must promptly submit to
the entity to which the security-based swap was originally reported an
amended report pertaining to the original transaction. The amended
report must be submitted to the registered SDR in a manner consistent
with the policies and procedures of the registered SDR required
pursuant to Rule 907(a)(3).
    Rule 905(b), as adopted, sets forth the duties of a registered SDR
relating to corrections. If the registered SDR either discovers an
error in a transaction on its system or receives notice of an error
from a reporting side, Rule 905(b)(1) requires the registered SDR to
verify the accuracy of the terms of the security-based swap and,
following such verification, promptly correct the erroneous information
contained in its system. Rule 905(b)(2) further requires that, if such
erroneous information relates to a security-based swap that the
registered SDR previously disseminated and falls into any of the
categories of information enumerated in Rule 901(c), the registered SDR
must publicly disseminate a corrected transaction report of the
security-based swap promptly following verification of the trade by the
counterparties to the security-based swap, with an indication that the
report relates to a previously disseminated transaction.
    In the Regulation SBSR Adopting Release, the Commission stated its
belief that, with respect to reporting sides, Rule 905(a) will impose
an initial, one-time burden associated with designing and building the
reporting side's reporting system to be capable of submitting amended
security-based swap transactions to a registered SDR. In the Regulation
SBSR Adopting Release, for reporting sides, the Commission estimated
that Rule 905(a) will impose an initial (first-year) aggregate burden
of 15,015 hours, which is 50.0 burden hours per reporting side,\346\
and an ongoing aggregate annualized burden of 7,035 hours, which is
23.5 burden hours per reporting side.\347\
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    \346\ See Regulation SBSR Adopting Release, Section XXI(F).
    \347\ See id.
---------------------------------------------------------------------------

    With respect to the actual submission of amended transaction
reports required under Rule 905(a)(2), the Commission stated its belief
that this will not result in a material burden because this will be
done electronically though the reporting system that the reporting side
must develop and maintain to comply with Rule 901. The overall burdens
associated with such a reporting system are addressed in the
Commission's analysis of Rule 901.
    With regard to non-reporting-side participants, the Commission
stated its belief that Rule 905(a) will impose an initial and ongoing
burden associated with promptly notifying the relevant reporting entity
after discovery of an error as required under Rule 905(a)(1). In the
Regulation SBSR Adopting Release, the Commission estimated that the
annual burden will be 998,640 hours, which corresponds to 208.05 burden
hours per non-reporting-side participant.\348\ This figure was based on
the Commission's estimate of (1) 4,800 non-reporting-side participants;
and (2) 1 transaction per day per non-reporting-side participant.\349\
The burdens of Rule 905 on reporting sides and non-reporting-side
participants will be reduced to the extent that complete and accurate
information is reported to registered SDRs in the first instance
pursuant to Rule 901.
---------------------------------------------------------------------------

    \348\ See id.
    \349\ See id.
---------------------------------------------------------------------------

    Rule 905(b) requires a registered SDR to develop protocols
regarding the reporting and correction of erroneous information. In the
Regulation SBSR Adopting Release, however, the Commission stated its
belief that this duty would represent only a minor extension of other
duties for which the Commission is estimating burdens, and
consequently, will not impose substantial additional burdens on a
registered SDR. The Commission noted that a registered SDR will be
required to have the ability to collect and maintain security-based
swap transaction reports and update relevant records under the rules
adopted in the SDR Adopting Release. Likewise, the Commission noted
that a registered SDR must have the capacity to disseminate additional,
corrected security-based swap transaction reports under Rule 902. The
Commission concluded that the burdens associated with Rule 905--
including systems development, support, and maintenance--are addressed
in the Commission's analysis of those other rules and, thus, the
Commission stated its belief that Rule 905(b) will impose only an
incremental additional burden on registered SDRs. In the Regulation
SBSR Adopting Release, the Commission estimated that developing and
publicly providing the necessary procedures will impose on each
registered SDR an initial one-time burden on each registered SDR of
approximately 730 burden hours.\350\ The Commission further estimated
that to review and update such procedures on an ongoing basis will
impose an annual burden on each SDR of approximately 1,460 burden
hours.\351\
---------------------------------------------------------------------------

    \350\ See id.
    \351\ See id.
---------------------------------------------------------------------------

    Accordingly, in the Regulation SBSR Adopting Release, the
Commission estimated that the initial (first-year) aggregate annualized
burden on registered SDRs under Rule 905 will be 21,900 burden hours,
which corresponds to 2,190 burden hours for each registered SDR.\352\
The Commission further estimated that the ongoing aggregate annualized
burden on registered SDRs under Rule 905 will be 14,600 burden hours,
which corresponds to 1,460 burden hours for each registered SDR.\353\
---------------------------------------------------------------------------

    \352\ See id.
    \353\ See id.
---------------------------------------------------------------------------

2. Rule 905--Proposed Amendments
    Rule 905, as adopted, establishes a mechanism for reporting
corrections of previously submitted security-based swap transaction
information and assigns certain duties to the counterparties to a
transaction and to the registered SDR that holds the transaction. In
light of the Commission's proposed amendment to Rule 901(a) to require
a platform to report a security-based swap that is executed on the
platform and that will be submitted to clearing, the Commission is
proposing to make conforming changes to Rule 905(a) to require the
person having the duty to report the initial transaction to correct
previously reported erroneous

information if it discovers an error. Thus, under the proposed
amendments to Rule 905(a), the person having the duty to report a
security-based swap, whether a counterparty or a platform, would be
required to correct previously reported erroneous information with
respect to that security-based swap if it discovers an error.
    Certain provisions of Rule 905 of Regulation SBSR contain
``collection of information requirements'' within the meaning of the
PRA. The title of this collection is ``Rule 905--Correction of Errors
in Security-Based Swap Information.''
a. Summary of Collection of Information
    Rule 905 establishes duties for security-based swap counterparties
and registered SDRs to correct errors in information that previously
has been reported.
    Duty to correct. Under the proposed amendment to Rule 905(a)(1),
where a person that was not the reporting side for a security-based
swap transaction discovers an error in the information reported with
respect to such security-based swap, that person must promptly notify
the person having the duty to report the security-based swap of the
error. Under the proposed amendment to Rule 905(a)(2), where a person
having the duty to report a security-based swap transaction discovers
an error in the information reported with respect to a security-based
swap, or receives notification from a counterparty of an error, such
person must promptly submit to the entity to which the security-based
swap was originally reported an amended report pertaining to the
original transaction. The amended report must be submitted to the
registered SDR in a manner consistent with the policies and procedures
of the registered SDR required pursuant to Rule 907(a)(3), as adopted.
As a result the proposed amendments to Rule 905, a platform would have
the duty to report if it discovers an error.
b. Proposed Use of Information
    The security-based swap transaction information required to be
reported under the proposed amendments to Rule 905 would be used by
registered SDRs, its participants, the Commission, and other relevant
authorities. Participants will be able to use such information to
evaluate and manage their own risk positions and satisfy their duties
to report corrected information to a registered SDR. A registered SDR
will need the required information to correct security-based swap
transaction records, in order to maintain an accurate record of a
participant's positions as well as to disseminate corrected
information. The Commission and other relevant authorities will need
the corrected information to have an accurate understanding of the
market for surveillance and oversight purposes.
c. Respondents
    Rule 905, as proposed to be amended, would apply to platforms. As
noted above, the Commission estimates that there will be approximately
10 platforms that incur a duty to report security-based swap
transactions pursuant to Rule 901.
d. Total Initial and Annual Reporting and Recordkeeping Burdens
    In the Regulation SBSR Adopting Release, the Commission estimated
that Rule 905(a), as adopted, will impose an initial, one-time burden
associated with designing and building the reporting side's reporting
system to be capable of submitting amended security-based swap
transactions to a registered SDR.\354\ The Commission stated its belief
that designing and building appropriate reporting system functionality
to comply with Rule 905(a)(2), as adopted, will be a component of, and
represent an incremental ``add-on'' to, the cost to build a reporting
system and develop a compliance function as required under Rule 901, as
adopted.\355\ Specifically, the Commission estimated that, based on
discussions with industry participants, the incremental burden would be
equal to 5% of the one-time and annual burdens associated with
designing and building a reporting system that is in compliance with
Rule 901, plus 10% of the corresponding one-time and annual burdens
associated with developing the reporting side's overall compliance
program required under Rule 901.\356\
---------------------------------------------------------------------------

    \354\ See id.
    \355\ See id.
    \356\ See id.
---------------------------------------------------------------------------

    The Commission preliminarily believes that the above methodology is
applicable to error reporting by platforms under the proposed
amendments to Rule 905(a). Thus, for platforms, the Commission
estimates that the proposed amendments to Rule 905(a) would impose an
initial (first-year) aggregate burden of 500.5 hours, which is 50.0
burden hours per platform,\357\ and an ongoing aggregate annualized
burden of 234.5 hours, which is 23.5 burden hours per platform.\358\
---------------------------------------------------------------------------

    \357\ See Regulation SBSR Proposing Release, 75 FR 75254-55.
This figure is calculated as follows: [(((172 burden hours for one-
time development of reporting system) x (0.05)) + ((33 burden hours
annual maintenance of reporting system) x (0.05)) + ((180 burden
hours one-time compliance program development) x (0.1)) + ((218
burden hours annual support of compliance program) x (0.1))) x (10
platforms)] = 500.5 burden hours, which is 50 burden hours per
reporting side. See also Regulation SBSR Adopting Release, Section
XXI(F).
    \358\ See Regulation SBSR Proposing Release, 75 FR 75254-55.
This figure is calculated as follows: [(((33 burden hours annual
maintenance of reporting system) x (0.05)) + ((218 burden hours
annual support of compliance program) x (0.1))) x (10 platforms)] =
234.5 burden hours, which is 23.5 burden hours per platform.
---------------------------------------------------------------------------

e. Recordkeeping Requirements
    Security-based swap transaction reports received pursuant to Rule
905 are subject to Rule 13n-5(b)(4) under the Exchange Act. This rule
requires an SDR to maintain the transaction data and related
identifying information for not less than five years after the
applicable security-based swap expires and historical positions for not
less than five years.
    With respect to corrected information that is disseminated by a
registered SDR in compliance with Rule 905(b)(2), Rule 13n-7(b) under
the Exchange Act requires an SDR to keep and preserve at least one copy
of all documents, including all policies and procedures required by the
Exchange Act and the rules or regulations thereunder, for a period of
not less than five years, the first two years in a place that is
immediately available. This requirement encompasses amended security-
based swap transaction reports disseminated by the registered SDR. The
amendments to Rule 905(a) clarify the duties of counterparties and
other persons to report corrected information to a registered SDR. The
requirement that a registered SDR disseminate corrected information
would not change. The Commission preliminarily believes that the number
of corrections reported to the registered SDR would not be impacted by
the proposed amendments. As a result, the Commission preliminarily
believes that the burdens under Rule 905(b)(2) would not be impacted by
the proposed amendments to Rule 905(a).
f. Collection of Information Is Mandatory
    Each collection of information discussed above is mandatory.
g. Confidentiality of Responses to Collection of Information
    Information collected pursuant to the proposed amendments to Rule
905 would be widely available to the extent that it corrects
information previously reported pursuant to Rule 901(c) and
incorporated into security-based swap

transaction reports that are publicly disseminated by a registered SDR
pursuant to Rule 902. Most of the information required under Rule 902
will be widely available to the public to the extent it is incorporated
into security-based swap transaction reports that are publicly
disseminated by a registered SDR pursuant to Rule 902. However, Rule
902(c) prohibits public dissemination of certain kinds of transactions
and certain kinds of transaction information. An SDR, pursuant to
Sections 13(n)(5) of the Exchange Act and Rules 13n-4(b)(8) and Rule
13n-9 thereunder, is required to maintain the privacy of this security-
based swap information. To the extent that the Commission receives
confidential information pursuant to this collection of information,
such information will be kept confidential, subject to the provisions
of applicable law.
3. Rule 905--Aggregate Total PRA Burdens and Costs
    The Commission estimates the following aggregate total PRA burdens
and costs, by category of entity, resulting from the proposed
amendments to Rule 905.
a. For Platforms
    For platforms, the Commission estimates that the proposed
amendments to Rule 905(a) would impose an initial (first-year)
aggregate burden of 500.5 hours, which is 50.0 burden hours per
platform,\359\ and an ongoing aggregate annualized burden of 234.5
hours, which is 23.5 burden hours per platform.\360\
---------------------------------------------------------------------------

    \359\ This figure is calculated as follows: [(((172 burden hours
for one-time development of reporting system) x (0.05)) + ((33
burden hours annual maintenance of reporting system) x (0.05)) +
((180 burden hours one-time compliance program development) x (0.1))
+ ((218 burden hours annual support of compliance program) x (0.1)))
x (10 platforms)] = 500.5 burden hours, which is 50 burden hours per
reporting side.
    \360\ This figure is calculated as follows: [(((33 burden hours
annual maintenance of reporting system) x (0.05)) + ((218 burden
hours annual support of compliance program) x (0.1))) x (10
platforms)] = 234.5 burden hours, which is 23.5 burden hours per
platform.
---------------------------------------------------------------------------

    For reporting sides, the Commission estimates that Rule 905(a), as
adopted, will impose an initial (first-year) aggregate burden of 15,015
hours, which is 50.0 burden hours per reporting side,\361\ and an
ongoing aggregate annualized burden of 7,035 hours, which is 23.5
burden hours per reporting side.\362\
---------------------------------------------------------------------------

    \361\ This figure is calculated as follows: [(((172 burden hours
for one-time development of reporting system) x (0.05)) + ((33
burden hours annual maintenance of reporting system) x (0.05)) +
((180 burden hours one-time compliance program development) x (0.1))
+ ((218 burden hours annual support of compliance program) x (0.1)))
x (300 reporting sides)] = 15,015 burden hours, which is 50 burden
hours per reporting side. The burden hours for annual maintenance of
the reporting system has been updated to reflect new information on
the number of reportable events.
    \362\ This figure is calculated as follows: [(((33 burden hours
annual maintenance of reporting system) x (0.05)) + ((218 burden
hours annual support of compliance program) x (0.1))) x (300
reporting sides)] = 7,035 burden hours, which is 23.5 burden hours
per reporting side. The burden hours for annual maintenance of the
reporting system has been updated to reflect new information on the
number of reportable events.
---------------------------------------------------------------------------

b. For Non-Reporting Sides
    For non-reporting sides, the Commission estimates that the annual
burden will be 998,640 hours, which corresponds to 208.05 burden hours
per non-reporting-side participant.\363\
---------------------------------------------------------------------------

    \363\ This figure is based on the following: [(1.14 error
notifications per non-reporting-side participant per day) x (365
days/year) x (Compliance Clerk at 0.5 hours/report) x (4,800 non-
reporting-side participants)] = 998,640 burden hours, which
corresponds to 208.05 burden hours per non-reporting-side
participant.
---------------------------------------------------------------------------

c. For Registered SDRs
    For registered SDRs, the Commission estimates that the initial
(first-year) aggregate annualized burden on registered SDRs under Rule
905, as adopted and as proposed to be amended herein, would be 21,900
burden hours, which corresponds to 2,190 burden hours for each
registered SDR.\364\ The Commission further estimates that the ongoing
aggregate annualized burden on registered SDRs under Rule 905, as
adopted and as proposed to be amended herein, would be 14,600 burden
hours, which corresponds to 1,460 burden hours for each registered
SDR.\365\
---------------------------------------------------------------------------

    \364\ This figure is based on the following: [(730 burden hours
to develop protocols) + (1,460 burden hours annual support)) x (10
registered SDRs)] = 21,900 burden hours, which corresponds to 2,190
burden hours per registered SDR.
    \365\ This figure is based on the following: [(1,460 burden
hours annual support) x (10 registered SDRs)] = 14,600 burden hours,
which corresponds to 1,460 burden hours per registered SDR.
---------------------------------------------------------------------------

D. Other Duties of Participants--Rule 906

1. Rule 906--As Adopted
    Rule 906(a), as adopted, sets forth a procedure designed to ensure
that a registered SDR obtains relevant UICs for both sides of a
security-based swap, not just of the reporting side. Rule 906(a)
requires a registered SDR to identify any security-based swap reported
to it for which the registered SDR does not have a counterparty ID and
(if applicable) broker ID, trading desk ID, and trader ID of each
counterparty. Rule 906(a) further requires the registered SDR, once a
day, to send a report to each participant identifying, for each
security-based swap to which that participant is a counterparty, the
security-based swap(s) for which the registered SDR lacks counterparty
ID and (if applicable) broker ID, trading desk ID, and trader ID. A
participant that receives such a report must provide the missing ID
information to the registered SDR within 24 hours.
    Rule 906(b) requires each participant of a registered SDR to
provide the registered SDR with information sufficient to identify the
participant's ultimate parent(s) and any affiliate(s) of the
participant that are also participants of the registered SDR.
    Rule 906(c) requires each participant that is a registered
security-based swap dealer or registered major security-based swap
participant to establish, maintain, and enforce written policies and
procedures that are reasonably designed to ensure compliance with any
security-based swap transaction reporting obligations in a manner
consistent with Regulation SBSR. In addition, Rule 906(c) requires each
such participant to review and update its policies and procedures at
least annually.
    For Registered SDRs. Rule 906(a) requires a registered SDR, once a
day, to send a report to each of its participants identifying, for each
security-based swap to which that participant is a counterparty, any
security-based swap(s) for which the registered SDR lacks counterparty
ID and (if applicable) broker ID, trading desk ID, and trader ID. In
the Regulation SBSR Adopting Release, the Commission estimated that
there will be a one-time, initial burden of 112 burden hours for a
registered SDR to create a report template and develop the necessary
systems and processes to produce a daily report required by Rule
906(a).\366\ Further, the Commission estimated that there will be an
ongoing annualized burden of 308 burden hours for a registered SDR to
generate and issue the daily reports, and to enter into its systems the
ID information supplied by participants in response to the daily
reports.\367\
---------------------------------------------------------------------------

    \366\ See Regulation SBSR Adopting Release, Section XXI(G).
    \367\ See id.
---------------------------------------------------------------------------

    Accordingly, in the Regulation SBSR Adopting Release, the
Commission estimated that the initial aggregate annualized burden for
registered SDRs under Rule 906(a) will be 4,200 burden hours for all
SDR respondents, which corresponds to 420 burden hours per registered
SDR.\368\ The Commission estimated that the ongoing aggregate
annualized burden for registered SDRs

under Rule 906(a) will be 3,080 burden hours, which corresponds to 308
burden hours per registered SDR.\369\
---------------------------------------------------------------------------

    \368\ See id.
    \369\ See id.
---------------------------------------------------------------------------

    For Participants. Rule 906(a) requires any participant of a
registered SDR that receives a report from that registered SDR to
provide the missing UICs to the registered SDR within 24 hours. Because
all SDR participants will likely be the non-reporting side for at least
some transactions to which they are counterparties, in the Regulation
SBSR Adopting Release, the Commission stated its belief that all
participants will be impacted by Rule 906(a). In the Regulation SBSR
Adopting Release, the Commission estimated that the initial and ongoing
annualized burden under Rule 906(a) for all participants will be
199,728 burden hours, which corresponds to 41.6 burden hours per
participant.\370\ This figure is based on the Commission's estimates of
(1) 4,800 participants; and (2) approximately 1.14 transactions per day
per participant.\371\
---------------------------------------------------------------------------

    \370\ See id.
    \371\ See id.
---------------------------------------------------------------------------

    Rule 906(b) requires every participant to provide the registered
SDR an initial parent/affiliate report and subsequent reports, as
needed. In the Regulation SBSR Adopting Release, the Commission
estimated that there will be 4,800 participants, that each participant
will connect to two registered SDRs on average, and that each
participant will submit two reports each year.\372\ Accordingly, the
Commission estimated that the initial and ongoing aggregate annualized
burden associated with Rule 906(b) will be 9,600 burden hours, which
corresponds to 2 burden hours per participant.\373\ The aggregate
burden represents an upper estimate for all participants; the actual
burden will likely decrease because certain larger participants are
likely to have multiple affiliates, and one member of the group could
report ultimate parent and affiliate information on behalf of all of
its affiliates at the same time.
---------------------------------------------------------------------------

    \372\ See id. The Commission estimates that, during the first
year, each participant will submit an initial report and one update
report and, in subsequent years, will submit two update reports.
    \373\ See id.
---------------------------------------------------------------------------

    Rule 906(c) requires each participant that is a registered
security-based swap dealer or registered major security-based swap
participant (each, a ``covered participant'') to establish, maintain,
and enforce written policies and procedures that are reasonably
designed to ensure compliance with applicable security-based swap
transaction reporting obligations. Rule 906(c) also requires the review
and updating of such policies and procedures at least annually. In the
Regulation SBSR Adopting Release, the Commission estimated that the
one-time, initial burden for each covered participant to adopt written
policies and procedures as required under Rule 906(c) will be
approximately 216 burden hours.\374\ As discussed in the Regulation
SBSR Adopting Release,\375\ this figure is based on the estimated
number of hours to develop a set of written policies and procedures,
program systems, implement internal controls and oversight, train
relevant employees, and perform necessary testing. In addition, in the
Regulation SBSR Adopting Release, the Commission estimated the burden
of maintaining such policies and procedures, including a full review at
least annually, as required by Rule 906(c), will be approximately 120
burden hours for each covered participant.\376\ This figure includes an
estimate of hours related to reviewing existing policies and
procedures, making necessary updates, conducting ongoing training,
maintaining internal controls systems, and performing necessary
testing. Accordingly, the Commission estimated that the initial
aggregate annualized burden associated with Rule 906(c) will be 18,480
burden hours, which corresponds to 336 burden hours per covered
participant.\377\ In the Regulation SBSR Adopting Release, the
Commission estimated that the ongoing aggregate annualized burden
associated with Rule 906(c) will be 6,600 burden hours, which
corresponds to 120 burden hours per covered participant.\378\
---------------------------------------------------------------------------

    \374\ See id.
    \375\ See id.
    \376\ See id.
    \377\ See id.
    \378\ See id.
---------------------------------------------------------------------------

    Therefore, in the Regulation SBSR Adopting Release, the Commission
estimated that the total initial aggregate annualized burden associated
with Rule 906 will be 230,370 burden hours,\379\ and the total ongoing
aggregate annualized burden will be 217,370 burden hours for all
participants.\380\
---------------------------------------------------------------------------

    \379\ See id.
    \380\ See id.
---------------------------------------------------------------------------

2. Rule 906--Proposed Amendments
a. Rule 906(b)--Proposed Amendments
    The Commission is proposing to revise Rule 906(b) to indicate that
reporting obligations under Rule 906(b) would not attach to
participants that are platforms or registered clearing agencies. Under
the proposed amendments to Rule 901(a) and 901(e), platforms and
registered clearing agencies would have the duty to report certain
security-based swaps and therefore would become participants of
registered SDRs. Rule 906(b), as adopted, requires each participant of
a registered SDR to provide the registered SDR information sufficient
to identify its ultimate parent(s) and any affiliate(s) of the
participant that also are participants of the registered SDR, using
ultimate parent IDs and participant IDs. The Commission does not
believe that this change, which would relieve platforms and registered
clearing agencies of the requirement to provide ultimate parent IDs and
participant IDs, would affect the existing burdens being placed on
platforms and registered clearing agencies.
b. Rule 906(c)--Proposed Amendments
i. Summary of Collection of Information
    The proposed amendments to Rule 906(c) would require each
participant that is a registered clearing agency or platform to
establish, maintain, and enforce written policies and procedures that
are reasonably designed to ensure compliance with applicable security-
based swap transaction reporting obligations. Each such participant
also would be required to review and update its policies and procedures
at least annually.
ii. Proposed Use of Information
    The policies and procedures required under the proposed amendments
to Rule 906(c) would be used by participants to aid in their compliance
with Regulation SBSR, and also used by the Commission as part of its
ongoing efforts to monitor and enforce compliance with the federal
securities laws, including Regulation SBSR, through, among other
things, examinations and inspections.
iii. Respondents
    The proposed amendments to Rule 906(c) would result in the rule
applying to registered clearing agencies and platforms. The Commission
estimates that there will be 4 registered clearing agencies and 10
platforms.
iv. Total Initial and Annual Reporting and Recordkeeping Burdens
    For Registered Clearing Agencies and Platforms. The proposed
amendment to Rule 906(c) would require each registered clearing agency
or platform to establish, maintain, and enforce written policies and
procedures that are reasonably designed to ensure compliance with
applicable security-based swap transaction reporting obligations. The
proposed amendment to Rule 906(c) also would require each registered
clearing agency and platform to review and update such policies and

procedures at least annually. The Commission estimates that the one-
time, initial burden for each registered clearing agency or platform to
adopt written policies and procedures as required under the proposed
amendments to Rule 906(c) would be similar to the Rule 906(c) burdens
discussed in the Regulation SBSR Adopting Release for covered
participants, and would be approximately 216 burden hours per
registered clearing agency or platform.\381\ As discussed in the
Regulation SBSR Proposing Release,\382\ this figure is based on the
estimated number of hours to develop a set of written policies and
procedures, program systems, implement internal controls and oversight,
train relevant employees, and perform necessary testing. In addition,
the Commission estimates the burden of maintaining such policies and
procedures, including a full review at least annually will be
approximately 120 burden hours for each registered clearing agency or
platform.\383\ This figure includes an estimate of hours related to
reviewing existing policies and procedures, making necessary updates,
conducting ongoing training, maintaining internal controls systems, and
performing necessary testing. Accordingly, the Commission estimates
that the initial aggregate annualized burden associated with the
proposed amendments to Rule 906(c) would be 4,704 burden hours, which
corresponds to 336 burden hours per registered clearing agency or
platform.\384\ The Commission estimates that the ongoing aggregate
annualized burden associated with the proposed amendments to Rule
906(c) will be 1,680 burden hours, which corresponds to 120 burden
hours per registered clearing agency or platform.\385\
---------------------------------------------------------------------------

    \381\ See Regulation SBSR Proposing Release, 75 FR 75257. This
figure is based on the following: [(Sr. Programmer at 40 hours) +
(Compliance Manager at 40 hours) + (Compliance Attorney at 40 hours)
+ (Compliance Clerk at 40 hours) + (Sr. Systems Analyst at 32 hours)
+ (Director of Compliance at 24 hours)] = 216 burden hours per
registered clearing agency or platform.
    \382\ See Regulation SBSR Proposing Release, 75 FR 75257.
    \383\ See id. This figure is based on the following: [(Sr.
Programmer at 8 hours) + (Compliance Manager at 24 hours) +
(Compliance Attorney at 24 hours) + (Compliance Clerk at 24 hours) +
(Sr. Systems Analyst at 16 hours) + (Director of Compliance at 24
hours)] = 120 burden hours per registered clearing agency or
platform.
    \384\ This figure is based on the following: [(216 + 120 burden
hours) x (14 registered clearing agencies and platforms)] = 4,704
burden hours.
    \385\ This figure is based on the following: [(120 burden hours)
x (14 registered clearing agencies and platforms)] = 1,680 burden
hours.
---------------------------------------------------------------------------

v. Recordkeeping Requirements
    The Commission has adopted recordkeeping rules for registered
clearing agencies \386\ and proposed recordkeeping rules for
platforms.\387\
---------------------------------------------------------------------------

    \386\ See Clearing Agency Standards Adopting Release.
    \387\ See Securities Exchange Act Release No. 63825 (February 2,
2011), 76 FR 10948 (February 29, 2011) (``SB SEF Proposing
Release'').
---------------------------------------------------------------------------

vi. Collection of Information Is Mandatory
    Each collection of information discussed above is mandatory.
vii. Confidentiality of Responses to Collection of Information
    The collection of information required by the proposed amendments
to Rule 906 would not be widely available. To the extent that the
Commission receives confidential information pursuant this collection
of information, such information will be kept confidential, subject to
applicable law.
3. Rule 906--Aggregate Total PRA Burdens and Costs
    Based on the foregoing, the Commission estimates the following
aggregate total PRA burdens and costs, by category of entity, resulting
from Rule 906, as adopted and as proposed to be amended herein.
a. For Platforms and Registered Clearing Agencies
    The Commission estimates that the one-time, initial burden for each
registered clearing agency or platform to adopt written policies and
procedures as required under Rule 906(c), as adopted and as proposed to
be amended herein, would be similar to the Rule 906(c) burdens
discussed in the Regulation SBSR Adopting Release for covered
participants, and would be approximately 216 burden hours per
registered clearing agency or platform.\388\ This figure is based on
the estimated number of hours to develop a set of written policies and
procedures, program systems, implement internal controls and oversight,
train relevant employees, and perform necessary testing. In addition,
the Commission estimates the burden of maintaining such policies and
procedures, including a full review at least annually, as required by
Rule 906(c), would be approximately 120 burden hours for each
registered clearing agency or platform.\389\ This figure includes an
estimate of hours related to reviewing existing policies and
procedures, making necessary updates, conducting ongoing training,
maintaining internal controls systems, and performing necessary
testing. Accordingly, the Commission estimates that the initial
aggregate annualized burden associated with Rule 906(c), as adopted and
as proposed to be amended herein, would be 4,704 burden hours, which
corresponds to 336 burden hours per registered clearing agency or
platform.\390\ The Commission estimates that the ongoing aggregate
annualized burden associated with Rule 906(c), as adopted and as
proposed to be amended herein, would be 1,680 burden hours, which
corresponds to 120 burden hours per registered clearing agency or
platform.\391\
---------------------------------------------------------------------------

    \388\ This figure is based on the following: [(Sr. Programmer at
40 hours) + (Compliance Manager at 40 hours) + (Compliance Attorney
at 40 hours) + (Compliance Clerk at 40 hours) + (Sr. Systems Analyst
at 32 hours) + (Director of Compliance at 24 hours)] = 216 burden
hours per registered clearing agency or platform.
    \389\ This figure is based on the following: [(Sr. Programmer at
8 hours) + (Compliance Manager at 24 hours) + (Compliance Attorney
at 24 hours) + (Compliance Clerk at 24 hours) + (Sr. Systems Analyst
at 16 hours) + (Director of Compliance at 24 hours)] = 120 burden
hours per registered clearing agency or platform.
    \390\ This figure is based on the following: [(216 + 120 burden
hours) x (14 registered clearing agencies and platforms)] = 4,704
burden hours.
    \391\ This figure is based on the following: [(120 burden hours)
x (14 registered clearing agencies and platforms)] = 1,680 burden
hours.
---------------------------------------------------------------------------

b. For Registered SDRs
    The proposed amendments to Regulation SBSR discussed in this
release would not modify any requirements in Rule 906(a), as adopted.
Therefore, the Commission is not modifying its analysis of the burden
that Rule 906(a), as adopted, will impose on registered SDRs.
c. For Participants
    The Commission estimates that the initial and ongoing annualized
burden under Rule 906(a) for all participants will be 199,728 burden
hours, which corresponds to 41.6 burden hours per participant.\392\
This figure is based on the Commission's estimates of (1) 4,800
participants; and (2) approximately 1.14 transactions per day per
participant.\393\
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    \392\ See Regulation SBSR Adopting Release, Section XXI(G). This
burden was calculated using the same methodology as was used in the
Regulation SBSR Proposing Release, updated to account for new
estimates of the number of missing information reports resulting
from updates in the number of reportable events. See Regulation SBSR
Proposing Release, 75 FR 75256-57. This figure is based on the
following: [(1.14 missing information reports per participant per
day) x (365 days/year) x (Compliance Clerk at 0.1 hours/report) x
(4,800 participants) = 199,728 burden hours, which corresponds to
47.5 burden hours per participant.
    \393\ This figure is based on the following: [((2,000,000
estimated annual security-based swap transactions)/4,800
participants))/(365 days/year)] = 1.14, or approximately 1
transaction per day.

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    The Commission estimates that the initial and ongoing aggregate
annualized burden associated with Rule 906(b), as adopted and as
proposed to be amended herein, would be 9,600 burden hours, which
corresponds to 2 burden hours per participant.\394\
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    \394\ See Regulation SBSR Adopting Release, Section XXI(G). See
also Regulation SBSR Proposing Release, 75 FR 75257. This figure is
based on the following: [(Compliance Clerk at 0.5 hours per report)
x (2 reports/year/SDR connection) x (2 SDR connections/participant)
x (4,800 participants)] = 9,600 burden hours, which corresponds to 2
burden hours per participant.
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    The Commission estimates that the one-time, initial burden for each
covered participant to adopt written policies and procedures as
required under Rule 906(c), as adopted and as proposed to be amended
herein, would be approximately 216 burden hours.\395\ This figure is
based on the estimated number of hours to develop a set of written
policies and procedures, program systems, implement internal controls
and oversight, train relevant employees, and perform necessary testing.
In addition, the Commission estimates the burden of maintaining such
policies and procedures, including a full review at least annually, as
required by Rule 906(c), as adopted and as proposed to be amended
herein, would be approximately 120 burden hours for each covered
participant.\396\ This figure includes an estimate of hours related to
reviewing existing policies and procedures, making necessary updates,
conducting ongoing training, maintaining internal controls systems, and
performing necessary testing. Accordingly, the Commission estimates
that the initial aggregate annualized burden associated with Rule
906(c), as adopted and as proposed to be amended herein, would be
18,480 burden hours, which corresponds to 336 burden hours per covered
participant.\397\ The Commission estimates that the ongoing aggregate
annualized burden associated with Rule 906(c), as adopted and as
proposed to be amended herein, would be 6,600 burden hours, which
corresponds to 120 burden hours per covered participant.\398\
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    \395\ See Regulation SBSR Adopting Release, Section XXI(G). See
also Regulation SBSR Proposing Release, 75 FR 75257. This figure is
based on the following: [(Sr. Programmer at 40 hours) + (Compliance
Manager at 40 hours) + (Compliance Attorney at 40 hours) +
(Compliance Clerk at 40 hours) + (Sr. Systems Analyst at 32 hours) +
(Director of Compliance at 24 hours)] = 216 burden hours per covered
participant.
    \396\ See Regulation SBSR Adopting Release, Section XXI(G). See
also Regulation SBSR Proposing Release, 75 FR 75257. This figure is
based on the following: [(Sr. Programmer at 8 hours) + (Compliance
Manager at 24 hours) + (Compliance Attorney at 24 hours) +
(Compliance Clerk at 24 hours) + (Sr. Systems Analyst at 16 hours) +
(Director of Compliance at 24 hours)] = 120 burden hours per covered
participant.
    \397\ See Regulation SBSR Adopting Release, Section XXI(G). This
figure is based on the following: [(216 + 120 burden hours) x (55
covered participants)] = 18,480 burden hours.
    \398\ See Regulation SBSR Adopting Release, Section XXI(G). This
figure is based on the following: [(120 burden hours) x (55 covered
participants)] = 6,600 burden hours.
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    Therefore, the Commission estimates that the total initial
aggregate annualized burden associated with Rule 906, as adopted and as
proposed to be amended herein, would be 232,008 burden hours,\399\ and
the total ongoing aggregate annualized burden would be 219,008 burden
hours for all participants.\400\
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    \399\ See Regulation SBSR Adopting Release, Section XXI(G). This
figure is based on the following: [(4,200 burden hours for
registered SDRs under Rule 906(a)) + (199,728 burden hours for
participants under Rule 906(a)) + (9,600 burden hours for
participants under Rule 906(b)) + (18,480 burden hours for covered
participants under Rule 906(c))] = 232,008 burden hours.
    \400\ See Regulation SBSR Adopting Release, Section XXI(G). This
figure is based on the following: [(3,080 burden hours for
registered SDRs under the proposed amendment to Rule 906(a)) +
(199,728 burden hours for participants under the proposed amendment
to Rule 906(a)) + (9,600 burden hours for participants under the
proposed amendment to Rule 906(b)) + (6,600 burden hours for covered
participants under the proposed amendment to Rule 906(c))] = 219,008
burden hours.
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E. Policies and Procedures of Registered SDRs--Rule 907

1.Rule 907--As Adopted
    Rule 907(a), as adopted, requires a registered SDR to establish and
maintain written policies and procedures that detail how it will
receive and publicly disseminate security-based swap transaction
information. Rule 907(a)(4) requires policies and procedures for
assigning ``special circumstances'' flags to the necessary transaction
reports.
    Rule 907(c), as adopted, requires a registered SDR to make its
policies and procedures available on its Web site. Rule 907(d), as
adopted, requires a registered SDR to review, and update as necessary,
the policies and procedures that it is required to have by Regulation
SBSR at least annually. Rule 907(e), as adopted, requires a registered
SDR to have the capacity to provide to the Commission, upon request,
information or reports related to the timeliness, accuracy, and
completeness of data reported to it pursuant to Regulation SBSR and the
registered SDR's policies and procedures established thereunder.
    In the Regulation SBSR Adopting Release, the Commission estimated
that the one-time, initial burden for a registered SDR to adopt written
policies and procedures as required under Rule 907 will be
approximately 15,000 hours.\401\ In the Regulation SBSR Adopting
Release, the Commission stated that, drawing on the Commission's
experience with other rules that require entities to establish and
maintain policies and procedures,\402\ this figure is based on the
estimated number of hours to develop a set of written policies and
procedures, program systems, implement internal controls and oversight,
train relevant employees, and perform necessary testing.\403\ In
addition, in the Regulation SBSR Adopting Release, the Commission
estimated the annual burden of maintaining such policies and
procedures, including a full review at least annually, making available
its policies and procedures on the registered SDR's Web site, and
information or reports on non-compliance, as required under Rule
907(e), will be approximately 30,000 hours for each registered
SDR.\404\ As discussed in the Regulation SBSR Proposing Release, this
figure includes an estimate of hours related to reviewing existing
policies and procedures, making necessary updates, conducting ongoing
training, maintaining relevant systems and internal controls systems,
performing necessary testing, monitoring participants, and compiling
data.
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    \401\ See Regulation SBSR Adopting Release, Section XXI(H).
These burdens are the result of Rule 907 only and do not account for
any burdens that result from the SDR Rules. Such burdens are
addressed in a separate release. See SDR Adopting Release, Section
VIII(D).
    \402\ See supra note 382.
    \403\ See Regulation SBSR Adopting Release, Section XXI(H). This
figure also includes time necessary to design and program systems
and implement policies and procedures to assign certain UICs, as
required by Rule 907(a)(5).
    \404\ See Regulation SBSR Adopting Release, Section XXI(H).
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    In the Regulation SBSR Adopting Release, the Commission estimated
that the initial annualized burden associated with Rule 907 will be
approximately 45,000 hours per registered SDR, which corresponds to an
initial annualized aggregate burden of approximately 450,000
hours.\405\ The Commission further estimated that the ongoing
annualized burden associated with Rule 907 will be approximately 30,000
hours per registered SDR,\406\ which corresponds to an ongoing
annualized

aggregate burden of approximately 300,000 hours.\407\
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    \405\ This figure is based on the following: [((15,000 burden
hours per registered SDR) + (30,000 burden hours per registered
SDR)) x (10 registered SDRs)] = 450,000 initial annualized aggregate
burden hours during the first year.
    \406\ See Regulation SBSR Adopting Release, Section XXI(H).
    \407\ See id.
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2. Rule 907--Proposed Amendments
    The Commission is proposing to revise Rule 907(a)(6) to indicate
that a registered SDR's policies and procedures need not contain
provisions for obtaining ultimate parent IDs and participant IDs from
participants that are platforms or registered clearing agencies. Under
the proposed amendments to Rule 901(a) and 901(e), platforms and
registered clearing agencies would have the duty to report certain
security-based swaps and become participants of registered SDRs to
which they report. Rule 907(a)(6), as adopted, requires a registered
SDR to establish and maintain written policies and procedures ``[f]or
periodically obtaining from each participant information that
identifies the participant's ultimate parent(s) and any participant(s)
with which the participant is affiliated, using ultimate parent IDs and
participant IDs.'' The Commission preliminarily believes that requiring
a platform or registered clearing agency to report parent and affiliate
information to a registered SDR would not serve any regulatory purpose
and, therefore, has proposed to amend Rule 907(a)(6) to indicate that
the obligations under Rule 907(a)(6) do not attach to participants that
are platforms or a registered clearing agencies. This proposed
amendment would not result in any burdens being placed on platforms and
registered clearing agencies.
3. Rule 907--Aggregate Total PRA Burdens and Costs
    Based on the foregoing, the Commission estimates that the one-time,
initial burden for a registered SDR to adopt written policies and
procedures as required under Rule 907 will be approximately 15,000
hours. In addition, the Commission estimated the annual burden of
maintaining such policies and procedures, including a full review at
least annually, making available its policies and procedures on the
registered SDR's Web site, and information or reports on non-
compliance, as required under Rule 907(e), will be approximately 30,000
hours for each registered SDR. The Commission therefor estimates that
the initial annualized burden associated with Rule 907 will be
approximately 45,000 hours per registered SDR, which corresponds to an
initial annualized aggregate burden of approximately 450,000
hours.\408\ The Commission further estimated that the ongoing
annualized burden associated with Rule 907 will be approximately 30,000
hours per registered SDR,\409\ which corresponds to an ongoing
annualized aggregate burden of approximately 300,000 hours.\410\
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    \408\ This figure is based on the following: [((15,000 burden
hours per registered SDR) + (30,000 burden hours per registered
SDR)) x (10 registered SDRs)] = 450,000 initial annualized aggregate
burden hours during the first year.
    \409\ See Regulation SBSR Proposing Release, 75 FR 75259. This
figure is based on the following: [(Sr. Programmer at 3,333 hours) +
(Compliance Manager at 6,667 hours) + (Compliance Attorney at 10,000
hours) + (Compliance Clerk at 5,000 hours) + (Sr. System Analyst at
3,333 hours) + (Director of Compliance at 1,667 hours)] = 30,000
burden hours per registered SDR.
    \410\ See Regulation SBSR Proposing Release, 75 FR 75259. This
figure is based on the following: [(30,000 burden hours per
registered SDR) x (10 registered SDRs)] = 300,000 ongoing,
annualized aggregate burden hours.
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F. Cross-Border Matters--Rule 908

1. Rule 908--As Adopted
    Rule 908(a), as adopted, defines when a security-based swap
transaction is subject to regulatory reporting and/or public
dissemination. Specifically, Rule 908(a)(1)(i), as adopted, provides
that a security-based swap shall be subject to regulatory reporting and
public dissemination if ``[t]here is a direct or indirect counterparty
that is a U.S. person on either or both sides of the transaction.''
Rule 908(a)(1)(ii), as adopted, provides that a security-based swap
shall be subject to regulatory reporting and public dissemination if
``[t]he security-based swap is submitted to a clearing agency having
its principal place of business in the United States.'' Rule 908(a)(2),
as adopted, provides that a security-based swap not included within the
above provisions would be subject to regulatory reporting but not
public dissemination ``if there is a direct or indirect counterparty on
either or both sides of the transaction that is a registered security-
based swap dealer or a registered major security-based swap
participant.''
    Regulation 908(b), as adopted, defines when a person might incur
obligations under Regulation SBSR. Rule 908(b) provides that,
notwithstanding any other provision of Regulation SBSR, a person shall
not incur any obligation under Regulation SBSR unless it is a U.S.
person, a registered security-based swap dealer, or a registered major
security-based swap participant.
    The Commission stated its belief in the Regulation SBSR Adopting
Release that Rules 908(a) and 908(b) do not impose any collection of
information requirements. To the extent that a security-based swap
transaction or person is subject to Rule 908(a) or 908(b),
respectively, the collection of information burdens are calculated as
part of the underlying rule (e.g., Rule 901, which imposes the basic
duty to report security-based swap transaction information).
    Rule 908(c), as adopted, sets forth the requirements surrounding
requests for substituted compliance. Rule 908(c)(1) sets forth the
general rule that compliance with Title VII's regulatory reporting and
public dissemination requirements may be satisfied by compliance with
the rules of a foreign jurisdiction that is the subject of a Commission
order described in Rule 908(c)(2), provided that at least one of the
direct counterparties is either a non-U.S. person or a foreign branch.
    Rule 908(c)(2)(ii), as adopted, applies to any person that requests
a substituted compliance determination with respect to regulatory
reporting and public dissemination of security-based swaps. In
connection with each request, the requesting party must provide the
Commission with any supporting documentation that the entity believes
is necessary for the Commission to make a determination, including
information demonstrating that the requirements applied in the foreign
jurisdiction are comparable to the Commission's and describing the
methods used by relevant foreign financial regulatory authorities to
monitor compliance with those requirements. In the Regulation SBSR
Adopting Release, the Commission estimated that the total paperwork
burden associated with submitting a request for a substituted
compliance determination with respect to regulatory reporting and
public dissemination will be approximately 1,120 hours, plus $1,120,000
for 14 requests.\411\ The Commission noted that this estimate includes
all collection burdens associated with the request, including burdens
associated with analyzing whether the regulatory requirements of the
foreign jurisdiction impose a comparable, comprehensive system for the
regulatory reporting and public dissemination of all security-based
swaps. Furthermore, the Commission observed that this estimate assumes
that each request will be prepared de novo, without any benefit of
prior work on related subjects. The Commission noted,

however, that as such requests are developed with respect to certain
jurisdictions, the cost of preparing such requests with respect to
other foreign jurisdictions could decrease.\412\
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    \411\ The Commission staff estimates that the paperwork burden
associated with making a substituted compliance request pursuant to
Rule 908(c)(2)(ii) will be approximately 80 of in-house counsel
time, plus $80,000 for the services of outside professionals (based
on 200 hours of outside counsel time x $400). See Cross-Border
Proposing Release, 78 FR 31110.
    \412\ If and when the Commission grants a request for
substituted compliance, subsequent applications might be able to
leverage work done on the initial application. However, the
Commission is unable to estimate the amount by which the cost could
decrease without knowing the extent to which different jurisdictions
have similar regulatory structures.
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    In the Regulation SBSR Adopting Release, the Commission estimated,
assuming ten requests in the first year, that the aggregated burden for
the first year will be 800 hours, plus $800,000 for the services of
outside professionals.\413\ The Commission estimated that it would
receive 2 requests for substituted compliance determinations pursuant
to Rule 908(c)(2)(ii) in each subsequent year. Assuming the same
approximate time and costs, the Commission stated that the aggregate
burden for each year following the first year will be up to 160 hours
of company time and $160,000 for the services of outside
professionals.\414\
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    \413\ The Commission staff estimates that the paperwork burden
associated with making a substituted compliance request pursuant to
Rule 242.908(c)(2)(ii) will be up to approximately 800 hours (80
hours of in-house counsel time x 10 respondents), plus $800,000 for
the services of outside professionals (based on 200 hours of outside
counsel time x $400 x 10 respondents). See Cross-Border Proposing
Release, 78 FR 31110.
    \414\ The Commission staff estimates that the paperwork burden
associated with making a substituted compliance request pursuant to
Rule 908(c)(2)(ii) would be up to approximately 160 hours (80 hours
of in-house counsel time x two respondents) + plus $160,000 for the
services of outside professionals (based on 200 hours of outside
counsel time x $400 x two respondents). See Cross-Border Proposing
Release, 78 FR 31110.
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2. Rule 908--Proposed Amendments
    The Commission is proposing to amend Rule 908(b) to make it
consistent with 901(a)(1) which would provide that platforms and
registered clearing agencies would have the duty to report in certain
circumstances. The Commission proposes to amend Rule 908(b) to provide:
``Notwithstanding any other provision of [Regulation SBSR], a person
shall not incur any obligation under [Regulation SBSR] unless it is:
(1) A U.S. person; (2) A registered security-based swap dealer or
registered major security-based swap participant; (3) A platform; or
(4) A registered clearing agency.'' The Commission preliminarily
believes that, since the proposed amendment to Rule 908(b) simply makes
it clear that platforms and registered clearing agencies may have
obligations under Regulation SBSR, there are no burdens associated with
the amendment to Rule 908(b). In addition, to the extent that a
platform or registered clearing agency does have obligations under
Regulation SBSR, those burdens are discussed under the applicable rule.
3. Rule 908--Aggregate Total Burdens and Costs