[Federal Register Volume 79, Number 176 (Thursday, September 11, 2014)]
[Notices]
[Pages 54306-54307]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-21652]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC
20549-2736.
Extension:
Rule 13h-1 and Form 13H, SEC File No. 270-614, OMB Control No.
3235-0682.
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 Rule 13h-1 (17 CFR 240.13h-1)
and Form 13H--registration of large traders \1\ submitted pursuant to
Section 13(h) of 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 for
extension and approval.
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\1\ Rule 13h-1(a)(1) defines ``large trader'' as any person that
directly or indirectly, including through other persons controlled
by such person, exercises investment discretion over one or more
accounts and effects transactions for the purchase or sale of any
NMS security for or on behalf of such accounts, by or through one or
more registered broker-dealers, in an aggregate amount equal to or
greater than the identifying activity level or voluntarily registers
as a large trader by filing electronically with the Commission Form
13H.
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Rule 13h-1 and Form 13H under Section 13(h) of the Exchange Act
established a large trader reporting framework.\2\ The framework
assists the Commission in identifying and obtaining certain baseline
information about traders that conduct a substantial amount of trading
activity, as measured by volume or market value, in the U.S. securities
markets.
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\2\ See Securities Exchange Act Release No. 64976 (July 27,
2011), 76 FR 46959 (August 3, 2011).
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The identification, recordkeeping, and reporting framework provides
the Commission with a mechanism to identify large traders and their
affiliates, accounts, and transactions. Specifically, the system
requires large traders to identify themselves to the Commission and
make certain disclosures to the Commission on Form 13H. Upon receipt of
Form 13H, the Commission issues a unique identification number to the
large trader, which the large trader then provides to its registered
broker-dealers. Certain registered broker-dealers are required to
maintain transaction records for each large trader, and are required to
[[Page 54307]]
report that information to the Commission upon request.\3\ In addition,
certain registered broker-dealers are required to adopt procedures to
monitor their customers for activity that would trigger the
identification requirements of the rule.
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\3\ The Commission, pursuant to Rule 17a-25 (17 CFR 240.17a-25),
currently collects transaction data from registered broker-dealers
through the Electronic Blue Sheets (``EBS'') system to support its
regulatory and enforcement activities. The large trader framework
added two new fields, the time of the trade and the identity of the
trader, to the EBS system.
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The respondents to the collection of information are large traders.
Each new large trader respondent files one response, which takes
approximately 20 hours to complete. The average internal cost of
compliance per response is $5,177, calculated as follows: (3 hours of
compliance manager time at $283 per hour) + (7 hours of legal time at
$334 per hour) + (10 hours of paralegal time at $199 per hour) =
$5,177. Additionally, on average, each large trader respondent
(including new respondents) files 2 responses per year, which take
approximately 6 hours to complete. The average internal cost of
compliance per response is $1,632, calculated as follows: (2 hours of
compliance manager time at $283 per hour) + (2 hours of legal time at
$334 per hour) + (2 hours of paralegal time at $199 per hour) = $1,632.
Each registered broker-dealer's monitoring requirement takes
approximately 15 hours per year. The average internal cost of
compliance is $5,010, calculated as follows: 15 hours of legal time at
$334 per hour = $5010. The Commission estimates that it may send 100
requests specifically seeking large trader data per year to each
registered broker-dealer subject to the rule, and it would take each
registered broker-dealer 2 hours to comply with each request
Accordingly, the annual reporting hour burden for a broker-dealer is
estimated to be 200 burden hours (100 requests x 2 burden hours/request
= 200 burden hours). The average internal cost of compliance per
response is $398, calculated as follows: 2 hours of paralegal time at
$199 per hour = $398.
Compliance with Rule 13h-1 is mandatory. The information collection
under proposed Rule 13h-1 is considered confidential subject to the
limited exceptions provided by the Freedom of Information Act.\4\
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\4\ See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7).
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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: September 5, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-21652 Filed 9-10-14; 8:45 am]
BILLING CODE 8011-01-P