[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Notices]
[Page 35356]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12389]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-196, OMB Control No. 3235-0202]
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 15c2-11
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'') has submitted to the Office of
Management and Budget (``OMB'') a request for approval of extension of
the previously approved 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'').
Rule 15c2-11 under the Exchange Act regulates the initiation or
resumption of quotations in a quotation medium by a broker-dealer for
over-the-counter (``OTC'') securities. The Rule is intended to prevent
broker-dealers from initiating or resuming quotations for OTC
securities that may facilitate a fraudulent or manipulative scheme.
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. With respect to the
securities of certain private issuers, a broker-dealer must make such
specified information reasonably available upon request to any person
expressing an interest in a proposed transaction in the security with
such broker or dealer.
Based on information provided by Financial Industry Regulatory
Authority, Inc. (``FINRA''), we understand that in the 2019 calendar
year, approximately 34 broker-dealers completed information reviews
pursuant to the Rule for 384 securities--87 concerning securities of
reporting issuers and 297 concerning securities of non-reporting
issuers. The collection of information that is submitted to FINRA for
review and approval is currently not available to the public from
FINRA.
We estimate that it will take a broker-dealer 4 hours to review,
record and retain the information pertaining to a reporting issuer
(approximately 3 hours relating to recordkeeping and one hour relating
to third-party disclosure), and 8 hours to review, record and retain
the information pertaining to a non-reporting issuer (approximately 7
hours relating to recordkeeping and one hour relating to third-party
disclosure). We therefore estimate that the total time burden for
recordkeeping associated with the information review requirement of the
Rule will be 2,340 hours [for (87 reviews for reporting issuers x 3
hours) + (297 reviews for non-reporting issuers x 7 hours)]; and the
total time burden for third-party disclosure associated with the
information review requirement under the Rule will be 384 hours [for
(87 reviews for reporting issuers x 1 hour) + (297 reviews for non-
reporting issuers x 1 hour)]. Thus, we estimate the industrywide total
annual burden hours associated with the information review requirement
under the Rule to be 2,724 hours (2,340 hours for recordkeeping + 384
hours for third-party disclosure). The Commission believes that the
compliance costs for these 2,724 hours would be borne by internal staff
working at a rate of $62 per hour.\1\
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\1\ The $62 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 1800-hourwork-year and inflation,
and multiplied by 2.93 to account for bonuses, firm size, employee
benefits and overhead.
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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 website: www.reginfo.gov. Find this
particular information collection by selecting ``Currently under 30-day
Review--Open for Public Comments'' or by using the search function.
Written comments and recommendations for the proposed information
collection should be sent within 30 days of publication of this notice
to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom,
Director/Chief Information Officer, Securities and Exchange Commission,
c/o Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or by
sending an email to: [email protected].
Dated: June 3, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-12389 Filed 6-8-20; 8:45 am]
BILLING CODE 8011-01-P