[Federal Register Volume 85, Number 57 (Tuesday, March 24, 2020)]
[Notices]
[Pages 16719-16720]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06108]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-455, OMB Control No. 3235-0514]
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 8c-1.
Notice is hereby given that pursuant to the Paperwork Reduction Act
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange
Commission (``Commission'') is soliciting comments on the existing
collection of information provided for in Rule 8c-1 (17 CFR 240.8c-1),
under the Securities Exchange Act of 1934 (``Exchange Act'') (15 U.S.C.
78a et seq.). The Commission plans to submit this existing collection
of information to the Office of Management and Budget (``OMB'') for
extension and approval.
Rule 8c-1 generally prohibits a broker-dealer from using its
customers' securities as collateral to finance its own trading,
speculating, or underwriting transactions. More specifically, Rule 8c-1
states three main principles: (1) A broker-dealer is prohibited from
commingling the securities of different customers as collateral for a
loan without the consent of each customer; (2) a broker-dealer cannot
commingle customers' securities with its own securities under the same
pledge; and (3) a broker-dealer can only pledge its customers'
securities to the extent that customers are in debt to the broker-
dealer. Additionally, Rule 8c-1 requires broker-dealers to make certain
written notifications to pledgees in connection
[[Page 16720]]
with such use of customer securities as collateral.\1\
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\1\ See Exchange Act Release No. 2690 (November 15, 1940);
Exchange Act Release No. 9428 (December 29, 1971).
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The information required by Rule 8c-1 is necessary for the
execution of the Commission's mandate under the Exchange Act to prevent
broker-dealers from hypothecating or arranging for the hypothecation of
any securities carried for the account of any customer under certain
circumstances. In addition, the information required by Rule 8c-1
provides important investor protections.
There are approximately 46 respondents as of year-end 2019 (i.e.,
broker-dealers that conducted business with the public, filed Part II
of the FOCUS Report, did not claim an exemption from the Reserve
Formula computation, and reported that they had a bank loan during at
least one quarter of the current year). Each respondent makes an
estimated 45 annual responses, for an aggregate total of 2,070
responses per year.\2\ Each response takes approximately 0.5 hours to
complete. Therefore, the total third-party disclosure burden per year
is 1,035 hours.\3\
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\2\ 46 respondents x 45 annual responses = 2,070 aggregate total
of annual responses.
\3\ 2,070 responses x 0.5 hours = 1,035 hours.
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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: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email
to: [email protected].
Dated: March 18, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-06108 Filed 3-23-20; 8:45 am]
BILLING CODE 8011-01-P