[Federal Register Volume 79, Number 106 (Tuesday, June 3, 2014)]
[Notices]
[Pages 31995-31996]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-12773]
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SECURITIES AND EXCHANGE COMMISSION
Submission for OMB Review; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
[[Page 31996]]
Commission, Office of Investor Education and Advocacy, Washington, DC
20549-0213.
Extension:
Rule 19b-7 and Form 19b-7; SEC File No. 270-495, OMB Control No.
3235-0553.
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 (``SEC'' or ``Commission'') has submitted to the Office of
Management and Budget (``OMB'') a request for approval of extension of
the existing collection of information provided for in Rule 19b-7 (17
CFR 240.19b-7) and Form 19b-7--Filings with respect to proposed rule
changes submitted pursuant to Section 19b(7) under the Securities
Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
The Exchange Act provides a framework for self-regulation under
which various entities involved in the securities business, including
national securities exchanges and national securities associations
(collectively, self-regulatory organizations or ``SROs''), have primary
responsibility for regulating their members or participants. The role
of the Commission in this framework is primarily one of oversight; the
Exchange Act charges the Commission with supervising the SROs and
assuring that each complies with and advances the policies of the
Exchange Act.
The Exchange Act was amended by the Commodity Futures Modernization
Act of 2000 (``CFMA''). Prior to the CFMA, Federal law did not allow
the trading of futures on individual stocks or on narrow-based stock
indexes (collectively, ``security futures products''). The CFMA removed
this restriction and provided that trading in security futures products
would be regulated jointly by the Commission and the Commodity Futures
Trading Commission (``CFTC'').
The Exchange Act requires all SROs to submit to the SEC any
proposals to amend, add, or delete any of their rules. Certain entities
(Security Futures Product Exchanges) would be notice registered
national securities exchanges only because they trade security futures
products. Similarly, certain entities (Limited Purpose National
Securities Associations) would be limited purpose national securities
associations only because their members trade security futures
products. The Exchange Act, as amended by the CFMA, established a
procedure for Security Futures Product Exchanges and Limited Purpose
National Securities Associations to provide notice of proposed rule
changes relating to certain matters.\1\ Rule 19b-7 and Form 19b-7
implemented this procedure. Effective April 28, 2008, the SEC amended
Rule 19b-7 and Form 19b-7 to require that Form 19b-7 be submitted
electronically.\2\
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\1\ These matters are higher margin levels, fraud or
manipulation, recordkeeping, reporting, listing standards, or
decimal pricing for security futures products; sales practices for
security futures products for persons who effect transactions in
security futures products; or rules effectuating the obligation of
Security Futures Product Exchanges and Limited Purpose National
Securities Associations to enforce the securities laws. See 15
U.S.C. 78s(b)(7)(A).
\2\ See Securities Exchange Act Release No. 57526 (March 19,
2008), 73 FR 16179 (March 27, 2008).
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The collection of information is designed to provide the Commission
with the information necessary to determine, as required by the
Exchange Act, whether the proposed rule change is consistent with the
Exchange Act and the rules thereunder. The information is used to
determine if the proposed rule change should remain in affect or
abrogated.
The respondents to the collection of information are SROs. Three
respondents file an average total of 5 responses per year.\3\ Each
response takes approximately 12.5 hours to complete and each amendment
takes approximately 3 hours to complete, which correspond to an
estimated annual response burden of 62.5 hours ((5 rule change
proposals x 12.5 hours) + (0 amendments \4\ x 3 hours)). The average
cost per response is $4,533 (11.5 legal hours multiplied by an average
hourly rate of $379 \5\ plus 1 hour of paralegal work multiplied by an
average hourly rate of $175 \6\). The total resulting related cost of
compliance for respondents is $22,668 per year (5 responses x $4,533
per response).
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\3\ There are currently five Security Futures Product Exchanges
and one Limited Purpose National Securities Association, the
National Futures Authority. However, one Security Futures Product
Exchange is dormant and two Security Futures Product Exchanges do
not currently trade security futures products. Therefore, there are
currently three respondents to Form 19b-7.
\4\ SEC staff notes that even though no amendments were received
in the previous three years and that staff does not anticipate the
receipt of any amendments, calculation of amendments is a separate
step in the calculation of the PRA burden and it is possible that
amendments are filed in the future. Therefore, instead of removing
the calculation altogether, staff has shown the calculation as
anticipating zero amendments.
\5\ The $379 per hour figure for an Attorney is from SIFMA's
Management & Professional Earnings in the Securities Industry 2012,
modified by Commission staff to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead.
\6\ The $175 per hour figure for a Paralegal is from SIFMA's
Management & Professional Earnings in the Securities Industry 2012,
modified by Commission staff to account for an 1800-hour work-year
and multiplied by 5.35 to account for bonuses, firm size, employee
benefits, and overhead.
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Compliance with Rule 19b-7 is mandatory. Information received in
response to Rule 19b-7 is not 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 under the PRA 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-Simon, 100
F Street NE., Washington, DC 20549, or by sending an email to: [email protected]. Comments must be submitted to OMB within 30 days of
this notice.
Dated: May 28, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-12773 Filed 6-2-14; 8:45 am]
BILLING CODE 8011-01-P