[Federal Register Volume 79, Number 66 (Monday, April 7, 2014)]
[Notices]
[Pages 19128-19129]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-07655]
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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 15c2-11; SEC File No. 270-196, OMB Control No. 3235-0202.
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 15c2-11, (17
CFR 240.15c2-11), under the Securities 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 15c2-11 under the Securities Exchange Act regulates the
initiation or resumption of quotations in a quotation medium by a
broker-dealer for over-the-counter (``OTC'') securities. The Rule was
designed primarily to prevent certain manipulative and fraudulent
trading schemes that had arisen in connection with the distribution and
trading of unregistered securities issued by shell companies or other
companies having outstanding but infrequently traded securities.
Subject to certain exceptions, the Rule prohibits broker-dealers from
publishing a quotation for a security, or submitting a quotation for
publication, in a quotation medium unless they have reviewed specified
information concerning the security and the issuer.
Based on information provided by Financial Industry Regulatory
Authority, Inc. (``FINRA''), in the 2013 calendar year, FINRA received
approximately 1,009 applications from broker-dealers to initiate or
resume publication of quotations of covered OTC securities on the OTC
Bulletin Board and/or OTC Link or other quotation mediums. We estimate
that (i) 31% of the covered OTC securities were issued by reporting
issuers, while the other 69% were issued by non-reporting issuers, and
(ii) it will take a broker-dealer about 4 hours to review, record and
retain the information pertaining to a reporting issuer, and about 8
hours to review, record and retain the information pertaining to a non-
reporting issuer.
We therefore estimate that broker-dealers who initiate or resume
publication of quotations for covered OTC securities of reporting
issuers will require 1,236 hours (1,009 x 31% x 4) to review, record
and retain the information required by the Rule. We estimate that
broker-dealers who initiate or resume publication of quotations for
covered OTC securities of non-reporting issuers will require 5,600
hours (1,009 x 69% x 8) to review, record and retain the information
required by the Rule. Thus, we estimate the total annual burden hours
for broker-dealers to initiate or resume publication of quotations of
covered OTC securities to be 6,836 hours (1,236 + 5,600). The
Commission believes that these 6,836 hours would be borne by internal
staff working at a rate of $53 per hour.\1\
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\1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2012 for
General Clerk national hourly rate.
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Subject to certain exceptions, the Rule prohibits broker-dealers
from publishing a quotation for a security, or submitting a quotation
for publication, in a quotation medium unless they have reviewed
specified information concerning the security and the issuer. The
broker-dealer must also make the information reasonably available upon
request to any person expressing an interest in a proposed transaction
in the security with such broker or dealer. The collection of
information that is submitted to FINRA for review and approval is
currently not available to the public from FINRA.
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
[[Page 19129]]
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: April 2, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07655 Filed 4-4-14; 8:45 am]
BILLING CODE 8011-01-P