[Federal Register Volume 79, Number 222 (Tuesday, November 18, 2014)]
[Notices]
[Pages 68729-68730]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-27190]
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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 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 (``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 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'').
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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
rule 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 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 = $5,010. 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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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
[[Page 68730]]
Management and Budget, Room 10102, New Executive Office Building,
Washington, DC 20503, or by sending an email to:
[email protected]; and (ii) Pamela Dyson, Acting 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: November 12, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-27190 Filed 11-17-14; 8:45 am]
BILLING CODE 8011-01-P