[Federal Register Volume 82, Number 68 (Tuesday, April 11, 2017)]
[Notices]
[Pages 17474-17475]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-07248]
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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 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
[[Page 17475]]
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 2016 calendar year, FINRA received
approximately 461 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) 195 of the covered OTC securities were issued by reporting
issuers, while the other 266 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 780 hours (195 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 2,128 hours (266 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 2908 hours (780 + 2,128). The Commission believes that compliance
costs for these 2,908 hours would be borne by internal staff working at
a rate of $57 per hour.\1\
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\1\ $57 per hour figure for a General Clerk is from SIFMA's
Office Salaries in the Securities Industry 2013, modified by
Commission staff to account for an 1,800-hourwork-year and
inflation, and multiplied by 2.93 to account for bonuses, firm size,
employee benefits and overhead.
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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 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 unless it displays a
currently valid OMB control number.
Please direct your written comments to: Pamela Dyson, 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 6, 2017.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2017-07248 Filed 4-10-17; 8:45 am]
BILLING CODE 8011-01-P