Quiero saber acerca de...

Federal Register / Vol. 86, No. 155 / Monday, August 16, 2021 / Notices exclusive benefit of security-based swap customers under Exchange Act rule 18a4. Substituted compliance is not available for Exchange Act rule 18a4.
In addition, the proposed Order would not provide substituted compliance for paragraph g of Exchange Act rule 18a8 that an SBS
Entity that is a security-based swap dealer provide notification if it fails to make a required deposit into its special
reserve account for the exclusive benefit of security-based swap customers under Exchange Act rule 18a4. Substituted compliance is not available for Exchange Act rule 18a4.
The following table summarizes the Commissions proposed preliminary positive substituted compliance determinations with respect to requirements of Exchange Act rule 18a 8 by listing in each row: 1 The
45783

paragraph of the proposed Order that sets forth the determination; 2 the paragraph of Exchange Act rule 18a8 to which the determination applies; 3 a brief description of the notification required by the paragraph; and 4 a brief description of any additional conditions to applying substituted compliance to the requirements.103

EXCHANGE ACT RULE 18a8
Notification Order paragraph
Rule paragraph
Rule description
d4iB

c

d4iC

d

Prudential regulator capital category adjustment notices.
Books and records notices

The following table summarizes the Commissions preliminary determinations with respect to requirements of Exchange Act rule 18a 8 for which a positive substituted compliance determination would not be
Conditions
made because they are fully linked to substantive Exchange Act requirements for which the proposed Order would not provide substituted compliance by listing in each row: 1 The paragraph of the proposed Order that sets forth the
1 2
1 2

SEC Filing Condition.
Contact Information Condition.
SEC Filing Condition.
Contact Information Condition.

determination; 2 the paragraph of Exchange Act rule 18a8 to which the determination applies; 3 a brief description of the notification required by the paragraph; and 4 the exclusion from substituted compliance.

EXCHANGE ACT RULE 18A8
Notification Order paragraph
Rule paragraph
Rule description
d4iiC

g

Reserve account notices

The proposed Order would not extend to, and Covered Entities would remain subject to, the requirement of Exchange Act section 15Ff to keep books and records open to inspection by any representative of the Commission and
the requirement of Exchange Act rule 18a6g to furnish promptly to a representative of the Commission legible, true, complete, and current copies of those records of the Covered Entity that are required to be preserved under Exchange Act rule 18a6, or any other records of the Covered Entity that are subject to examination or required to be made or maintained pursuant to Exchange Act section 15F that are requested by a representative of the Commission.107
Consequently, every Covered Entity registered with the Commission, whether complying directly with Exchange Act requirements or relying on substituted compliance as a means of complying with the Exchange Act, would be required to satisfy the inspection and production requirements imposed on such entities under the Exchange Act. Covered Entities would be able to make, keep, and preserve
103 The chart below does not include the proposed conditions for applying substituted compliance to Exchange Act rule 18a8; namely that the Covered Entity: 1 Must be subject to and comply with specified requirements of foreign law;
and 2 must promptly furnish to a representative of the Commission upon request an English
translation of a notification. See para. d7 of the proposed Order setting forth the English translation requirement.
104 See 15 U.S.C. 78o10g.
105 See CO article 958f; FMIO article 36; FMIO
FINMA article 1; FinMIA articles 38, 104, and 106;
FINMA Circular 2013/8 marg. 60 and marg. 61.

6. Exchange Act Section 15Fg Exchange Act Section 15Fg requires SBS Entities, including SBS Entities with a prudential regulator, to maintain daily trading records.104 The Commission preliminarily believes Swiss laws produce a comparable result in terms of its daily trading recordkeeping requirements.105
Accordingly, the Commission preliminarily is making a positive substituted compliance determination for the self-executing requirements in this paragraph.106
7. Examination and Production of Records
lotter on DSK11XQN23PROD with NOTICES1

Exclusion
VerDate Sep<11>2014

17:21 Aug 13, 2021

Jkt 253001

PO 00000

Frm 00082

Fmt 4703

Sfmt 4703

Rule 18a4 Exclusion.

records, subject to the proposed conditions described above, in a manner prescribed by applicable Swiss requirements. As an element of its substituted compliance application, the Swiss Firms have provided the Commission with adequate assurances that no law or policy would impede the ability of any entity that is directly supervised by the authority and that may register with the Commission to provide prompt access to the Commission to such entitys books and records or to submit to onsite inspection or examination by the Commission.
Consistent with those assurances and the requirements that apply to all Covered Entities under the Exchange Act, Covered Entities operating under the proposed Order would need to keep books and records open to inspection by any representative of the Commission and to furnish promptly to a 106 See
para. d5 of the proposed Order.
Exchange Act section 15Ff; Exchange Act rule 18a6g. French and UK Substituted Compliance Orders do not extend substituted compliance to these requirements. See French Substituted Compliance Order, 86 FR at 41650; UK
Substituted Compliance Order, 86 FR at 43361.
107 See
E:FRFM16AUN1.SGM

16AUN1