81 FR 57985 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 164 (August 24, 2016)

Page Range		57985-57986
FR Document		2016-20258
Federal Register, Volume 81 Issue 164 (Wednesday, August 24, 2016)
[Federal Register Volume 81, Number 164 (Wednesday, August 24, 2016)]
[Notices]
[Pages 57985-57986]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-20258]


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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 17a-4, SEC File No. 270-198, OMB Control No. 3235-0279.

    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 collection of 
information provided for in Rule 17a-4 (17 CFR 240.17a-4), under the 
Securities Exchange Act of 1934 (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 17a-4 requires exchange members, brokers and dealers 
(``broker-

[[Page 57986]]

dealers'') to preserve for prescribed periods of time certain records 
required to be made by Rule 17a-3. In addition, Rule 17a-4 requires the 
preservation of records required to be made by other Commission rules 
and other kinds of records which firms make or receive in the ordinary 
course of business. These include, but are not limited to, bank 
statements, cancelled checks, bills receivable and payable, originals 
of communications, and descriptions of various transactions. Rule 17a-4 
also permits broker-dealers to employ, under certain conditions, 
electronic storage media to maintain records required to be maintained 
under Rules 17a-3 and 17a-4.
    There are approximately 4,104 active, registered broker-dealers. 
The staff estimates that the average amount of time necessary to 
preserve the books and records as required by Rule 17a-4 is 254 hours 
per broker-dealer per year. In addition, the Commission is moving into 
this information collection the annual burden hours for paragraph 
(b)(11) of Rule 17a-4, which requires any broker-dealer that sponsors 
an internal broker-dealer system to maintain certain records relating 
to such system for at least three years. The Commission estimates that 
paragraph (b)(11) of Rule 17a-4 imposes an annual burden of 3 hours per 
year to maintain the requisite records. The Commission estimates that 
there are approximately 150 internal broker-dealer systems, resulting 
in an annual recordkeeping burden of 450 hours. Therefore, the 
Commission estimates that compliance with Rule 17a-4 requires 1,042,866 
hours each year ((4,104 broker-dealers x 254 hours) + (150 broker-
dealers x 3 hours). These burdens are recordkeeping burdens.
    The staff believes that compliance personnel would be charged with 
ensuring compliance with Commission regulation, including Rule 17a-4. 
The staff estimates that the hourly salary of a Compliance Clerk is $65 
per hour.\1\ Based upon these numbers, the total internal cost of 
compliance for 4,104 respondents is the dollar cost of approximately 
$67.8 million (1,042,416 yearly hours x $65). The total burden hour 
decrease of 242,062 is due to a decrease in the number of respondents 
from 5,057 to 4,104.
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    \1\ This figure is based on SIFMA's Office Salaries in the 
Securities Industry 2016, modified by Commission staff to account 
for an 1,800-hour work-year multiplied by 2.93 to account for 
bonuses, firm size, employee benefits, and overhead.
---------------------------------------------------------------------------

    Based on conversations with members of the securities industry and 
the Commission's experience in the area, the staff estimates that the 
average broker-dealer spends approximately $5,000 each year to store 
documents required to be retained under Rule 17a-4. Costs include the 
cost of physical space, computer hardware and software, etc., which 
vary widely depending on the size of the broker-dealer and the type of 
storage media employed. The Commission estimates that the annual 
reporting and recordkeeping cost burden is $20,520,000. This cost is 
calculated by the number of active, registered broker-dealers 
multiplied by the reporting and recordkeeping cost for each respondent 
(4,104 active, registered broker-dealers x $5,000).
    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 
estimate 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: 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: August 19, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-20258 Filed 8-23-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices 57985

within the rules for the Exchange to III. Date of Effectiveness of the submission, all subsequent
prescribe by Regulatory Circular which Proposed Rule Change and Timing for amendments, all written statements
system or software will be used for the Commission Action with respect to the proposed rule
submission of annual reports, the Because the foregoing proposed rule change that are filed with the
Exchange believes it will be able to change does not: (i) Significantly affect Commission, and all written
adjust, as necessary, the required the protection of investors or the public communications relating to the
manner of reporting by Members, interest; (ii) impose any significant proposed rule change between the
particularly to the extent that new or burden on competition; and (iii) become Commission and any person, other than
enhanced software or systems are operative for 30 days after the date of those that may be withheld from the
developed for this purpose. the filing, or such shorter time as the public in accordance with the
Commission may designate, it has provisions of 5 U.S.C. 552, will be
B. Self-Regulatory Organization’s available for Web site viewing and
Statement on Burden on Competition become effective pursuant to 19(b)(3)(A)
of the Act 7 and Rule 19b–4(f)(6) 8 printing in the Commission’s Public
The Exchange does not believe that Reference Room, 100 F Street NE.,
thereunder.
the proposed rule change will impose At any time within 60 days of the Washington, DC 20549, on official
any burden on competition that is not filing of the proposed rule change, the business days between the hours of
necessary or appropriate in furtherance Commission summarily may 10:00 a.m. and 3:00 p.m. Copies of the
of the purposes of the Act. The temporarily suspend such rule change if filing also will be available for
proposed rule change requires all it appears to the Commission that such inspection and copying at the principal
Members that are required to submit action is necessary or appropriate in the office of the Exchange. All comments
annual reports to submit those reports public interest, for the protection of received will be posted without change;
electronically in the same manner. the Commission does not edit personal
investors, or otherwise in furtherance of
The Exchange believes the proposed identifying information from
the purposes of the Act. If the
rule change will not impose any burden submissions. You should submit only
Commission takes such action, the
on intra-market competition because it information that you wish to make
Commission shall institute proceedings
applies equally to all Exchange available publicly. All submissions
to determine whether the proposed rule
Members with reporting obligations. should refer to File Number SR–MIAX–
should be approved or disapproved.
The Exchange does not believe that 2016–29, and should be submitted on or
the proposed rule changes will impose IV. Solicitation of Comments before September 14, 2016.
any burden on intermarket competition Interested persons are invited to For the Commission, by the Division of
as the proposed rule change is for submit written data, views, and Trading and Markets, pursuant to delegated
regulatory purposes to enhance the arguments concerning the foregoing, authority.9
process for Member’s submission and including whether the proposed rule Robert W. Errett,
the Exchange’s collection, tracking, change is consistent with the Act. Deputy Secretary.
consolidation, and review of annual Comments may be submitted by any of [FR Doc. 2016–20206 Filed 8–23–16; 8:45 am]
reports. the following methods: BILLING CODE 8011–01–P
The Exchange believes that the Electronic Comments
proposed change is not controversial
and does not impose any significant • Use the Commission’s Internet SECURITIES AND EXCHANGE
burden on the Exchange’s Members. All comment form (http://www.sec.gov/ COMMISSION
Exchange Members have access to the rules/sro.shtml); or
FINRA Firm Gateway system and there • Send an email to rule-comments@ Proposed Collection; Comment
sec.gov. Please include File Number SR– Request
is no additional financial cost to file the
required reports electronically through MIAX–2016–29 on the subject line. Upon Written Request, Copies Available
this system. Additionally, the majority Paper Comments From: Securities and Exchange
of Members of the Exchange are also • Send paper comments in triplicate Commission, Office of FOIA Services,
Members of FINRA and use the FINRA to Secretary, Securities and Exchange 100 F Street NE., Washington, DC
Firm Gateway system on a regular basis. Commission, 100 F Street NE., 20549–2736.
Therefore, the Exchange believes that Washington, DC 20549–1090. Extension:
any burden that the proposed rule Rule 17a–4, SEC File No. 270–198, OMB
All submissions should refer to File
change may impose on Members will be Control No. 3235–0279.
Number SR–MIAX–2016–29. This file
minimal. The Exchange believes any Notice is hereby given that pursuant
number should be included on the
burden is outweighed by the benefits of to the Paperwork Reduction Act of 1995
subject line if email is used. To help the
electronic filing, which include a more (‘‘PRA’’) (44 U.S.C. 3501 et seq.), the
Commission process and review your
efficient and effective process for the Securities and Exchange Commission
comments more efficiently, please use
Exchange (through its regulatory (‘‘Commission’’) is soliciting comments
only one method. The Commission will
services provider) to collect, track, and on the collection of information
post all comments on the Commission’s
consolidate annual reports. The provided for in Rule 17a–4 (17 CFR
Internet Web site (http://www.sec.gov/
Exchange believes that an electronic 240.17a–4), under the Securities
rules/sro.shtml). Copies of the
filing process is in its, and its Members’, Exchange Act of 1934 (15 U.S.C. 78a et
best interest.
mstockstill on DSK3G9T082PROD with NOTICES

7 15 U.S.C. 78s(b)(3)(A).
seq.). The Commission plans to submit
C. Self-Regulatory Organization’s 8 17 CFR 240.19b–4(f)(6). In addition, Rule 19b– this existing collection of information to
Statement on Comments on the 4(f)(6) requires a self-regulatory organization to give the Office of Management and Budget
Proposed Rule Change Received From
the Commission written notice of its intent to file (‘‘OMB’’) for extension and approval.
the proposed rule change at least five business days Rule 17a–4 requires exchange
Members, Participants, or Others prior to the date of filing of the proposed rule
change, or such shorter time as designated by the members, brokers and dealers (‘‘broker-
Written comments were neither Commission. The Exchange has satisfied this
solicited nor received. requirement. 9 17 CFR 200.30–3(a)(12).

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57986 Federal Register / Vol. 81, No. 164 / Wednesday, August 24, 2016 / Notices

dealers’’) to preserve for prescribed the staff estimates that the average SECURITIES AND EXCHANGE
periods of time certain records required broker-dealer spends approximately COMMISSION
to be made by Rule 17a–3. In addition, $5,000 each year to store documents
[Release No. 34–78615; File No. SR–
Rule 17a–4 requires the preservation of required to be retained under Rule 17a– NYSEArca–2016–117]
records required to be made by other 4. Costs include the cost of physical
Commission rules and other kinds of space, computer hardware and software, Self-Regulatory Organizations; NYSE
records which firms make or receive in etc., which vary widely depending on Arca, Inc.; Notice of Filing and
the ordinary course of business. These the size of the broker-dealer and the Immediate Effectiveness of Proposed
include, but are not limited to, bank type of storage media employed. The Rule Change To Amend NYSE Arca
statements, cancelled checks, bills Equities Rules 7.35P, 7.34P, 7.18P and
Commission estimates that the annual
receivable and payable, originals of 7.31P Regarding Order Processing
reporting and recordkeeping cost
communications, and descriptions of Following an Auction or When
various transactions. Rule 17a–4 also burden is $20,520,000. This cost is
calculated by the number of active, Transitioning From One Trading
permits broker-dealers to employ, under Session to Another
certain conditions, electronic storage registered broker-dealers multiplied by
media to maintain records required to the reporting and recordkeeping cost for August 18, 2016.
be maintained under Rules 17a–3 and each respondent (4,104 active, Pursuant to Section 19(b)(1) 1 of the
17a–4. registered broker-dealers × $5,000). Securities Exchange Act of 1934 (the
There are approximately 4,104 active, Written comments are invited on: (a) ‘‘Act’’),2 and Rule 19b–4 thereunder,3
registered broker-dealers. The staff Whether the proposed collection of notice is hereby given that on August
estimates that the average amount of information is necessary for the proper 15, 2016, NYSE Arca, Inc. (the
time necessary to preserve the books performance of the functions of the ‘‘Exchange’’ or ‘‘NYSE Arca’’) filed with
and records as required by Rule 17a–4 Commission, including whether the the Securities and Exchange
is 254 hours per broker-dealer per year. Commission (the ‘‘Commission’’) the
information shall have practical utility;
In addition, the Commission is moving proposed rule change as described in
(b) the accuracy of the Commission’s
into this information collection the Items I and II below, which Items have
annual burden hours for paragraph estimate of the burden of the proposed
been prepared by the self-regulatory
(b)(11) of Rule 17a–4, which requires collection of information; (c) ways to
organization. The Commission is
any broker-dealer that sponsors an enhance the quality, utility, and clarity
publishing this notice to solicit
internal broker-dealer system to of the information collected; and (d)
comments on the proposed rule change
maintain certain records relating to such ways to minimize the burden of the from interested persons.
system for at least three years. The collection of information on
Commission estimates that paragraph respondents, including through the use I. Self-Regulatory Organization’s
(b)(11) of Rule 17a–4 imposes an annual of automated collection techniques or Statement of the Terms of Substance of
burden of 3 hours per year to maintain other forms of information technology. the Proposed Rule Change
the requisite records. The Commission Consideration will be given to The Exchange proposes to amend
estimates that there are approximately comments and suggestions submitted in NYSE Arca Equities Rule 7.35P
150 internal broker-dealer systems, writing within 60 days of this (Auctions), Rule 7.34P (Trading
resulting in an annual recordkeeping publication. Sessions), Rule 7.18P (Halts), and 7.31P
burden of 450 hours. Therefore, the (Orders and Modifiers) regarding order
An agency may not conduct or
Commission estimates that compliance processing following an auction or
with Rule 17a–4 requires 1,042,866 sponsor, and a person is not required to
when transitioning from one trading
hours each year ((4,104 broker-dealers × respond to, a collection of information
sessions to another. The proposed rule
254 hours) + (150 broker-dealers × 3 under the PRA unless it displays a
change is available on the Exchange’s
hours). These burdens are currently valid OMB control number. Web site at www.nyse.com, at the
recordkeeping burdens. Please direct your written comments principal office of the Exchange, and at
The staff believes that compliance to: Pamela Dyson, Director/Chief the Commission’s Public Reference
personnel would be charged with Information Officer, Securities and Room.
ensuring compliance with Commission Exchange Commission, c/o Remi Pavlik-
regulation, including Rule 17a–4. The II. Self-Regulatory Organization’s
Simon, 100 F Street NE., Washington, Statement of the Purpose of, and
staff estimates that the hourly salary of DC 20549, or send an email to:
a Compliance Clerk is $65 per hour.1 Statutory Basis for, the Proposed Rule
PRA_Mailbox@sec.gov. Change
Based upon these numbers, the total
internal cost of compliance for 4,104 Dated: August 19, 2016. In its filing with the Commission, the
respondents is the dollar cost of Brent J. Fields, self-regulatory organization included
approximately $67.8 million (1,042,416 Secretary. statements concerning the purpose of,
yearly hours × $65). The total burden [FR Doc. 2016–20258 Filed 8–23–16; 8:45 am] and basis for, the proposed rule change
hour decrease of 242,062 is due to a and discussed any comments it received
BILLING CODE 8011–01–P
decrease in the number of respondents on the proposed rule change. The text
from 5,057 to 4,104. of those statements may be examined at
Based on conversations with members the places specified in Item IV below.
of the securities industry and the
mstockstill on DSK3G9T082PROD with NOTICES

The Exchange has prepared summaries,
Commission’s experience in the area, set forth in sections A, B, and C below,
of the most significant parts of such
1 This figure is based on SIFMA’s Office Salaries
statements.
in the Securities Industry 2016, modified by
Commission staff to account for an 1,800-hour
1 15 U.S.C. 78s(b)(1).
work-year multiplied by 2.93 to account for
2 15 U.S.C. 78a.
bonuses, firm size, employee benefits, and
overhead. 3 17 CFR 240.19b–4.

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Document Created: 2016-08-24 03:03:04
Document Modified: 2016-08-24 03:03:04
Category		Regulatory Information
Collection		Federal Register
sudoc Class		AE 2.7: GS 4.107: AE 2.106:
Publisher		Office of the Federal Register, National Archives and Records Administration
Section		Notices
FR Citation		81 FR 57985