[Federal Register Volume 64, Number 197 (Wednesday, October 13, 1999)]
[Notices]
[Pages 55498-55499]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-26618]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: Securities and Exchange
Commission, Office of Filings and Information Services, Washington, DC
20549
Extension:
Rule 9b-1, SEC File No. 270-429, OMB Control No. 3235-0480
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (44 U.S.C. 2501 et seq.) the Securities and Exchange Commission
(``Commission'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
Rule 9b-1 sets forth the categories of information required to be
disclosed in an options disclosure document (``ODD'') and requires the
options markets to file an ODD with the Commission 60 days prior to the
date that it is distributed to investors. In addition, Rule 9b-1
provides that the ODD must be amended if the information in the
document becomes materially inaccurate or incomplete and that
amendments must be filed with the Commission 30 days prior to the
distribution to customers. Finally, Rule 9b-1 requires a broker-dealer
to furnish to each customer an ODD and any amendments, prior to
accepting an order to purchase or sell an option on behalf of that
customer.
There are 4 options markets that must comply with Rule 9b-1. These
4 respondents work together to prepare a single ODD covering options
traded on each market, as well as amendments to the ODD. These
respondents file no more than one amendment per year, which requires
approximately 8 hours per year for each respondent. Thus, the total
compliance burden for options markets per year is 32 hours. The
approximate cost per hour is $100, resulting in a total cost of
compliance for these respondents of $3,200 per year (32 hours @ $100).
In addition, approximately 2,000 broker-dealers must comply with
Rule 9b-1. Each of these respondents will process an average of three
new customers for options each week and, therefore, will have to
furnish approximately 156 ODDs per year. The postal mailing or
electronic delivery of the ODD takes respondents no more than 30
seconds to complete for an annual compliance burden for each of these
respondents of 78 minutes, or 1.3 hours. Thus, the total compliance
burden per year is 2,600 hours (2,000 broker-dealers x 1.3 hours.).
The approximate cost per hour to these respondents is $10 per hour,
resulting in a total cost of compliance for these
[[Page 55499]]
respondents of $26,000 per year (2,600 hours @ $10).
The total compliance burden for all respondents under this rule
(both options markets and broker-dealers) is 2632 hours per year (32 +
2,600), and total compliance costs of $29,200 ($3,200 + $26,000).
Written comments are invited on: (a) Whether the proposed
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information will
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the 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 on or before
December 13, 1999.
Please direct your written comments to Michael E. Bartell,
Associate Executive Director, Office of Information Technology,
Securities and Exchange Commission, 450 5th Street, NW, Washington, DC
20549.
Dated: October 5, 1999.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-26618 Filed 10-12-99; 8:45 am]
BILLING CODE 8010-01-M