The Securities and Exchange Commission (SEC) is seeking approval from the Office of Management and Budget (OMB) to extend the collection of information required under Rule 15c3-4. This rule demands that certain broker-dealers and security-based swap dealers create and maintain a system of internal risk management controls. It is estimated that currently 17 firms must comply with this rule, with an additional 6 firms expected to join in the next three years, resulting in an annual burden of approximately 8,600 hours. The SEC is also inviting public comments on this information collection until January 21, 2025.
Simple Explanation
The SEC wants approval to keep a rule that makes certain companies who trade stocks and swaps create special plans to handle risks. Right now, 17 companies need to do this, and more will join, taking lots of time to do each year.