2025-06128Notice

SEC Extends Risk Reporting Rules for Elite Broker-Dealers

Published Date: 4/10/2025

Notice

Summary

The SEC is extending the approval for two OTC derivatives dealers to keep using a special rule (Appendix F) to calculate their financial risks instead of the usual method. These dealers spend about 1,000 hours each year reporting their risk models, and no new dealers are expected to join in the next three years. This extension keeps things steady with no new costs or changes for others.

Analyzed Economic Effects

1 provisions identified: 0 benefits, 0 costs, 1 mixed.

Two Dealers Authorized to Use Appendix F

Two over-the-counter (OTC) derivatives dealers have been approved to use Appendix F to Rule 15c3-1 to compute net capital charges for market and credit risk instead of using securities haircuts under paragraph (c)(2)(vi). The Commission estimates each of the two approved dealers will spend about 1,000 hours per year reporting information about their value-at-risk (VAR) models and internal risk management systems, for a total annual burden of about 2,000 hours. The staff does not expect any additional OTC derivatives dealers to apply to use Appendix F during the next three years.

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Key Dates

Published Date
4/10/2025

Department and Agencies

Department
Independent Agency
Agency
Securities and Exchange Commission
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