[Federal Register Volume 78, Number 80 (Thursday, April 25, 2013)]
[Notices]
[Pages 24443-24445]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-09768]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 19b-4 and Form 19b-4, SEC File No. 270-38, OMB Control No.
3235-0045.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') has submitted to the Office of Management
and Budget (``OMB'') a request for extension of the existing collection
of information provided for in Rule 19b-4 (17 CFR 240.19b-4), under the
Securities Exchange Act of 1934 (the ``Act'') (15 U.S.C. 78a et seq.).
Section 19(b) of the Act (15 U.S.C. 78s(b)) requires each self-
regulatory organization (``SRO'') to file with the Commission copies of
any proposed rule, or any proposed change in, addition to, or deletion
from the rules of such SRO. Rule 19b-4 implements the requirements of
Section 19(b) by requiring the SROs to file their proposed rule changes
on Form 19b-4 and by clarifying which actions taken by SROs are subject
to the filing requirement set forth in Section 19(b). Rule 19b-4(n)
requires a designated clearing agency to provide an advance notice
(``Advance Notice'') to the Commission of any proposed change to its
rules, procedures, or operations that could materially affect the
nature or level of risks presented by such clearing agency. Rule 19b-
4(o) requires a registered clearing agency to submit for a Commission
determination any security-based swap, or any group, category, type, or
class of security-based swaps it plans to accept for clearing
(``Security-Based Swap Submission''), and provide notice to its members
of such submissions.
The collection of information is designed to provide the Commission
with the information necessary to determine, as required by the Act,
whether the proposed rule change is consistent with the Act and the
rules thereunder. The information is used to determine if the proposed
rule change should be approved, disapproved, or if proceedings should
be instituted to determine whether to approve or disapprove the
proposed rule change.
The respondents to the collection of information are self-
regulatory organizations (as defined by the Act), including national
securities exchanges, national securities associations, registered
clearing agencies, notice registered securities future product
exchanges, and the Municipal Securities Rulemaking Board.
In fiscal year 2012, thirty-four respondents filed a total of 1,688
proposed rule change responses.\1\ Each response takes approximately 38
hours to complete. Thus, the total annual reporting burden for filing
proposed rule changes with the Commission is 64,144 hours (1,688
proposals per year x 38 hours per filing).\2\ In addition to filing
their proposed rule changes with the Commission, the respondents also
are required to post each of their proposals on their respective Web
sites, a process which takes approximately four hours to complete per
proposal. Thus, for 1,688 proposals, the total annual reporting burden
on respondents to post the proposals on their Web sites is 6,752 hours
(1,688 proposals per year x 4 hours per filing). Further, the
respondents are required to update their rulebooks, which they maintain
on their Web sites, to reflect the changes that they make in each
proposal they file. Thus, for all filings that were not withdrawn by a
respondent (120 withdrawn filings in fiscal year 2012) or disapproved
by the Commission (2 disapproved filings in fiscal year 2012), the
respondents were required to update their online rulebooks to reflect
the effectiveness of 1,566 proposals, each of which takes approximately
four hours to complete per proposal. Thus, the total annual reporting
burden for updating online rulebooks is 6,264 hours ((1,688 filings per
year-120 withdrawn filings-2 disapproved filings) x 4 hours)). Finally,
a respondent is required to notify the Commission if it
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does not post a proposed rule change on its Web site on the same day
that it filed the proposal with the Commission. The Commission
estimates that SROs will fail to post proposed rule changes on their
Web sites on the same day as the filing 16 times a year, and that each
SRO will spend approximately one hour preparing and submitting such
notice to the Commission, resulting in a total annual burden of 16
hours (16 notices x 1 hour per notice).
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\1\ The Commission expects four additional respondents to
register during the three year period for which this Paperwork
Reduction Act Extension is applicable (three as registered clearing
agencies and one as a national securities exchange), bringing the
total number of respondents to thirty-eight.
\2\ In fiscal year 2012, respondents filed 120 optional
amendments to their proposals, as well as 629 required prefilings of
their proposed rule changes. Because those submissions are part of
the Form 19b-4 process as required by Rule 19b-4, they are included
within the 38 hour burden estimate, and, because amendments and
prefilings are part of a single proposal, they do not constitute a
separate response.
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Clearing agencies have additional information collection burdens.
As noted above, a designated clearing agency must file an Advance
Notice with the Commission of any proposed change to its rules,
procedures, or operations that could materially affect the nature or
level of risks presented by such designated clearing agency. The
Commission estimates that 10 designated clearing agencies will each
submit 35 Advance Notices per year, with each submission taking 90
hours to complete. The total annual reporting burden for filing Advance
Notices is therefore 31,500 hours (10 designated clearing agencies x 35
Advance Notices per year x 90 hours per response).
Designated clearing agencies are required to post all Advance
Notices to their Web sites, each of which takes approximately four
hours to complete. For 35 Advance Notices, the total annual reporting
burden for posting them to respondents' Web sites is 1,400 hours (10
designated clearing agencies x 35 Advance Notices per year x 4 hours
per Web site posting). Respondents are required to update the postings
of those Advance Notices that become effective, each of which takes
approximately four hours to complete. The total annual reporting burden
for updating Advance Notices on the respondents' Web sites is 1,400
hours (10 designated clearing agencies x 35 Advance Notices per year x
4 hours per Web site posting).
The respondents are also required to provide copies of all
materials submitted to the Commission relating to an Advance Notice to
the Board of Governors of the Federal Reserve System (the ``Board'')
contemporaneously with such submission to the Commission, which is
estimated to take two hours. The total annual reporting burden for
designated clearing agencies to meet this requirement is 700 hours (10
designated clearing agencies x 35 Advance Notices per year x 2 hours
per response).
The Commission estimates that six security-based swap clearing
agencies will each submit 20 Security-Based Swap Submissions per year,
with each submission taking 140 hours to complete resulting in a total
annual reporting burden of 16,800 hours (6 respondent clearing agencies
x 20 Security-Based Swap Submissions per year x 140 hours per
response). Respondent clearing agencies are required to post all
Security-Based Swap Submissions to their Web sites, each of which takes
approximately four hours to complete. For 20 Security-Based Swap
Submissions, the total annual reporting burden for posting them to the
six respondents' Web sites is 480 hours (6 respondent clearing agencies
x 20 Security-Based Swap Submissions per year x 4 hours per Web site
posting). In addition, three of the six respondent clearing agencies
that have not previously posted Security-Based Swap Submissions,
Advance Notices, and proposed rule changes on their Web sites may need
to update their existing Web sites to post such filings online. The
Commission estimates that each of these three clearing agencies would
spend approximately 15 hours updating its existing Web site, resulting
in a total one-time burden of 45 hours (3 respondent clearing agencies
x 15 hours per Web site update) or 15 hours annualized over three
years.
Respondent clearing agencies will also have to provide training to
staff members using the Electronic Form 19b-4 Filing System (``EFFS'')
to submit Security-Based Swap Submissions, Advance Notices, and/or
proposed rule changes electronically. The Commission estimates that
each of the six estimated security-based swap clearing agencies will
spend approximately 20 hours training all staff members who will use
EFFS to submit Security-Based Swap Submissions, Advance Notices, and/or
proposed rule changes electronically, for a total of 120 hours (6
respondent clearing agencies x 20 hours) or 40 hours annualized over
three years. The Commission also estimates that each of these six
clearing agencies will have a one-time burden of 130 hours to draft and
implement internal policies and procedures for using EFFS to make these
submissions, for a total of 780 hours (6 clearing agencies x 130 hours)
or 260 hours annualized over three years. The four remaining clearing
agencies that have existing internal policies and procedures for using
EFFS will need to update them for submitting Security-Based Swap
Submissions and/or Advance Notices with the Commission. The Commission
estimates that each of these four clearing agencies will have a one-
time burden of 30 hours to draft and implement modifications to their
internal policies, for a total of 120 hours (4 clearing agencies x 30
hours) or 40 hours annualized over three years. After the initial
training is completed, the Commission estimates that each of the 38
respondents will spend 10 hours each year training new compliance staff
members and updating the training of existing compliance staff members
to use EFFS, for a total annual burden of 380 hours (38 respondent SROs
x 10 hours).
In connection with Security-Based Swap Submissions, counterparties
may apply for a stay from a mandatory clearing requirement under Rule
3Ca-1 of the Exchange Act. The Commission estimates that each clearing
agency will submit five applications for stays from a clearing
requirement per year and it will take approximately 18 hours to
retrieve, review, and submit each application. Thus, the total annual
reporting burden for the Rule 3Ca-1 stay of clearing requirement would
be 540 hours (six respondent clearing agencies x five stay of clearing
applications per year x 18 hours to retrieve, review, and submit the
stay of clearing information).
Based on the above, the total estimated annual response burden is
the sum of the total annual reporting burdens for filing proposed rule
changes, Advance Notices, and Security-Based Swap Submissions; training
staff to file such proposals; drafting, modifying, and implementing
internal policies and procedures for filing such proposals; posting
each proposal on the respondents' Web sites; updating Web sites to
enable posting of proposals; updating the respondents' online rulebooks
to reflect the proposals that became effective; submitting copies of
Advance Notices to the Board; and applying for stays from clearing
requirements, which is 130,731 hours.
Compliance with Rule 19b-4 is mandatory. Information received in
response to Rule 19b-4 shall not be kept confidential; the information
collected is public information.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a
currently valid OMB control number.
The public may view background documentation for this information
collection at the following Web site, www.reginfo.gov. Comments should
be directed to: (i) Desk Officer for the Securities and Exchange
Commission, Office of Information and Regulatory Affairs, Office of
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to: [email protected]; and (ii) Thomas Bayer, Director/Chief Information
Officer, Securities and Exchange Commission, c/o Remi Pavlik-
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Simon, 6432 General Green Way, Alexandria, VA 22312 or send an email
to: [email protected]. Comments must be submitted to OMB within 30
days of this notice.
Dated: April 22, 2013.
Elizabeth M. Murphy,
Secretary.
[FR Doc. 2013-09768 Filed 4-24-13; 8:45 am]
BILLING CODE 8011-01-P