[Federal Register Volume 78, Number 165 (Monday, August 26, 2013)]
[Notices]
[Pages 52808-52809]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-20679]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 15c3-5; SEC File No. 270-601, OMB Control No. 3235-0673.
Notice is hereby given that, pursuant to the Paperwork Reduction
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and
Exchange Commission (``Commission'') is soliciting comments on the
existing collection of information provided for in Rule 15c3-5 (17 CFR
240.15c3-5) under the Securities and Exchange Act of 1934 (15 U.S.C.
78a et seq.) (``Exchange Act''). The Commission plans to submit this
existing collection of information to the Office of Management and
Budget (``OMB'') for extension and approval.
Rule 15c3-5 under the Exchange Act requires brokers or dealers with
access to trading directly on an exchange or alternative trading system
(``ATS''), including those providing sponsored or direct market access
to customers or other persons, to implement risk management controls
and supervisory procedures reasonably designed to manage the financial,
regulatory, and other risks of this business activity.
The rule requires brokers or dealers to establish, document, and
maintain certain risk management controls and supervisory procedures as
well as regularly review such controls and procedures, and document the
review, and remediate issues discovered to assure overall effectiveness
of such controls and procedures. Each such broker or dealer is required
to preserve a copy of its supervisory procedures and a written
description of its risk management controls as part of its books and
records in a manner consistent with Rule 17a-4(e)(7) under the Exchange
Act. Such regular review is required to be conducted in accordance with
written procedures and is required to be documented. The broker or
dealer is required to preserve a copy of such written procedures, and
documentation of each such review, as part of its books and records in
a manner consistent with Rule 174(e)(7) under the Exchange Act, and
Rule 17a-4(b) under the Exchange Act, respectively.
In addition, the Chief Executive Officer (or equivalent officer) is
required to certify annually that the broker or dealer's risk
management controls and supervisory procedures comply with the rule,
and that the broker-dealer conducted such review. Such certifications
are required to be preserved by the broker or dealer as part of its
books and records in a manner consistent with Rule 17a-4(b) under the
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
Respondents consist of broker-dealers with access to trading
directly on an exchange or ATS. The Commission
[[Page 52809]]
estimates that there are currently 870 respondents. To comply with Rule
15c3-5, these respondents will spend approximately 139,200 hours per
year (160 hours per broker-dealer x 870 broker-dealers = 139,200
hours). At an average internal cost per burden hour of approximately
$390.57, the resultant total related internal cost of compliance for
these respondents is $54,367,170 per year (139,200 burden hours
multiplied by approximately $390.57/hour). In addition, for hardware
and software expenses, the Commission estimates that the average annual
external cost would be approximately $20,500 per broker-dealer, or a
total of $17,835,000 ($20,500 per broker-dealer x 870 broker-dealers =
$17,835,000) for all respondents.
Written comments are invited on (a) whether the proposed collection
of information is necessary for the proper performance of the functions
of the Commission, including whether the information shall have
practical utility; (b) the accuracy of the Commission's estimates of
the burden of the proposed collection of information; (c) ways to
enhance the quality, utility, and clarity of the information collected;
and (d) ways to minimize the burden of the collection of information on
respondents, including through the use of automated collection
techniques or other forms of information technology. Consideration will
be given to comments and suggestions submitted in writing within 60
days of this publication.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information under the PRA unless it
displays a currently valid OMB control number.
Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email
to: [email protected].
Dated: August 20, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-20679 Filed 8-23-13; 8:45 am]
BILLING CODE 8011-01-P