29 Jul 2025
📈SEC Notice on Information Collection for Financial Risk Management
Agency Information Collection Activities; Submission for OMB Review; Comment Request; Extension: Rule 18a-3
Summary
The SEC is submitting a request for an extension for Rule 18a-3, concerning minimum margin requirements for nonbank security-based swap dealers and participants. The rule stipulates the necessity for establishing risk management control systems, including procedures for monitoring counterparties' risks related to non-cleared security-based swaps. A burden estimate of 1,030 annual hours is outlined for compliance activities.
Agencies
- Securities and Exchange Commission
Business Impact
$$ - Med
The regulatory text outlines compliance requirements under Rule 18a-3, impacting nonbank SBSDs and MSBSPs by mandating monitoring of counterparty risks and document procedures for risk management. This will require ongoing recordkeeping efforts, affecting operational costs and risk management strategies.