81 FR 63237 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 178 (September 14, 2016)

Page Range		63237-63237
FR Document		2016-22038
Federal Register, Volume 81 Issue 178 (Wednesday, September 14, 2016)
[Federal Register Volume 81, Number 178 (Wednesday, September 14, 2016)]
[Notices]
[Page 63237]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-22038]


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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 15c3-5, SEC File No. 270-601, OMB Control No. 3235-0673.

    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 15c3-5 (17 CFR 
240.15c3-5) 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 15c3-5 under the Exchange Act requires brokers or dealers with 
access to trading directly on an exchange or alternative trading system 
(``ATS''), including those providing sponsored or direct market access 
to customers or other persons, to implement risk management controls 
and supervisory procedures reasonably designed to manage the financial, 
regulatory, and other risks of this business activity.
    The rule requires brokers or dealers to establish, document, and 
maintain certain risk management controls and supervisory procedures as 
well as regularly review such controls and procedures, and document the 
review, and remediate issues discovered to assure overall effectiveness 
of such controls and procedures. Each such broker or dealer is required 
to preserve a copy of its supervisory procedures and a written 
description of its risk management controls as part of its books and 
records in a manner consistent with Rule 17a-4(e)(7) under the Exchange 
Act. Such regular review is required to be conducted in accordance with 
written procedures and is required to be documented. The broker or 
dealer is required to preserve a copy of such written procedures, and 
documentation of each such review, as part of its books and records in 
a manner consistent with Rule 17a-4(e)(7) under the Exchange Act, and 
Rule 17a-4(b) under the Exchange Act, respectively.
    In addition, the Chief Executive Officer (or equivalent officer) is 
required to certify annually that the broker or dealer's risk 
management controls and supervisory procedures comply with the rule, 
and that the broker-dealer conducted such review. Such certifications 
are required to be preserved by the broker or dealer as part of its 
books and records in a manner consistent with Rule 17a-4(b) under the 
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
    Respondents consist of broker-dealers with access to trading 
directly on an exchange or ATS. The Commission estimates that there are 
currently 640 respondents. To comply with Rule 15c3-5, these 
respondents will spend a total of approximately 102,400 hours per year 
(160 hours per broker-dealer x 640 broker-dealers = 102,400 hours). At 
an average internal cost per burden hour of approximately $339.09, the 
resultant total related internal cost of compliance for these 
respondents is $34,722,560 per year (102,400 burden hours multiplied by 
approximately $339.09/hour). In addition, for hardware and software 
expenses, the Commission estimates that the average annual external 
cost would be approximately $20,500 per broker-dealer, or $13,120,000 
in the aggregate ($20,500 per broker-dealer x 640 brokers and dealers = 
$13,120,000).
    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 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: 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: September 8, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-22038 Filed 9-13-16; 8:45 am]
BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 178 / Wednesday, September 14, 2016 / Notices 63237

The Commission estimates that there 100 F Street NE., Washington, DC Exchange Act. Compliance with Rule
are approximately 12,971 reporting 20549–2736. 15c3–5 is mandatory.
institutions (respondents) and, on Extension: Respondents consist of broker-dealers
average, each respondent would need to Rule 15c3–5, SEC File No. 270–601, OMB with access to trading directly on an
retain 33 records annually, with each Control No. 3235–0673. exchange or ATS. The Commission
retention requiring approximately 1
Notice is hereby given that, pursuant estimates that there are currently 640
minute (a total of 33 minutes or 0.55
to the Paperwork Reduction Act of 1995 respondents. To comply with Rule
hours per respondent per year). Thus,
the total estimated annual time burden (44 U.S.C. 3501 et seq.) (‘‘PRA’’), the 15c3–5, these respondents will spend a
for all respondents is 7,134 hours Securities and Exchange Commission total of approximately 102,400 hours
(12,971 × 0.55 hours = 7,134). Assuming (‘‘Commission’’) is soliciting comments per year (160 hours per broker-dealer ×
an average hourly cost for clerical work on the existing collection of information 640 broker-dealers = 102,400 hours). At
of $50.00, the average total yearly record provided for in Rule 15c3–5 (17 CFR an average internal cost per burden hour
retention cost of compliance for each 240.15c3–5) under the Securities of approximately $339.09, the resultant
respondent would be $27.50 ($50 × 0.55 Exchange Act of 1934 (15 U.S.C. 78a et total related internal cost of compliance
hours). Based on these estimates, the seq.) (‘‘Exchange Act’’). The for these respondents is $34,722,560 per
total annual compliance cost for the Commission plans to submit this year (102,400 burden hours multiplied
estimated 12,971 reporting institutions existing collection of information to the by approximately $339.09/hour). In
would be approximately $356,702 Office of Management and Budget addition, for hardware and software
(12,971 × $27.50). (‘‘OMB’’) for extension and approval. expenses, the Commission estimates
Written comments are invited on: (a) Rule 15c3–5 under the Exchange Act that the average annual external cost
Whether the proposed collection of requires brokers or dealers with access would be approximately $20,500 per
information is necessary for the proper to trading directly on an exchange or broker-dealer, or $13,120,000 in the
performance of the functions of the alternative trading system (‘‘ATS’’), aggregate ($20,500 per broker-dealer ×
Commission, including whether the including those providing sponsored or 640 brokers and dealers = $13,120,000).
information shall have practical utility; direct market access to customers or
other persons, to implement risk Written comments are invited on (a)
(b) the accuracy of the Commission’s
management controls and supervisory whether the proposed collection of
estimates of the burden of the proposed
procedures reasonably designed to information is necessary for the proper
collection of information; (c) ways to
enhance the quality, utility, and clarity manage the financial, regulatory, and performance of the functions of the
of the information to be collected; and other risks of this business activity. Commission, including whether the
(d) ways to minimize the burden of the The rule requires brokers or dealers to information shall have practical utility;
collection of information on establish, document, and maintain (b) the accuracy of the Commission’s
respondents, including through the use certain risk management controls and estimates of the burden of the proposed
of automated collection techniques or supervisory procedures as well as collection of information; (c) ways to
other forms of information technology. regularly review such controls and enhance the quality, utility, and clarity
Consideration will be given to procedures, and document the review, of the information collected; and (d)
comments and suggestions submitted in and remediate issues discovered to ways to minimize the burden of the
writing within 60 days of this assure overall effectiveness of such collection of information on
publication. controls and procedures. Each such respondents, including through the use
An agency may not conduct or broker or dealer is required to preserve of automated collection techniques or
sponsor, and a person is not required to a copy of its supervisory procedures and other forms of information technology.
respond to, a collection of information a written description of its risk Consideration will be given to
under the PRA unless it displays a management controls as part of its books comments and suggestions submitted in
currently valid OMB control number. and records in a manner consistent with writing within 60 days of this
Please direct your written comments Rule 17a–4(e)(7) under the Exchange publication.
to: Pamela Dyson, Director/Chief Act. Such regular review is required to
be conducted in accordance with An agency may not conduct or
Information Officer, Securities and sponsor, and a person is not required to
Exchange Commission, c/o Remi Pavlik- written procedures and is required to be
documented. The broker or dealer is respond to, a collection of information
Simon, 100 F Street NE., Washington,
required to preserve a copy of such under the PRA unless it displays a
DC 20549 or send an email to: PRA_
written procedures, and documentation currently valid OMB control number.
Mailbox@sec.gov.
of each such review, as part of its books Please direct your written comments
Dated: September 8, 2016.
and records in a manner consistent with to: Pamela Dyson, Director/Chief
Brent J. Fields,
Rule 17a–4(e)(7) under the Exchange Information Officer, Securities and
Secretary. Act, and Rule 17a–4(b) under the Exchange Commission, c/o Remi Pavlik-
[FR Doc. 2016–22037 Filed 9–13–16; 8:45 am] Exchange Act, respectively. Simon, 100 F Street NE., Washington,
BILLING CODE 8011–01–P In addition, the Chief Executive DC 20549, or send an email to: PRA_
Officer (or equivalent officer) is required Mailbox@sec.gov.
to certify annually that the broker or
asabaliauskas on DSK3SPTVN1PROD with NOTICES

SECURITIES AND EXCHANGE Dated: September 8, 2016.
dealer’s risk management controls and
COMMISSION Brent J. Fields,
supervisory procedures comply with the
rule, and that the broker-dealer Secretary.
Proposed Collection; Comment
Request conducted such review. Such [FR Doc. 2016–22038 Filed 9–13–16; 8:45 am]
certifications are required to be BILLING CODE 8011–01–P
Upon Written Request, Copies Available preserved by the broker or dealer as part
From: Securities and Exchange of its books and records in a manner
Commission, Office of FOIA Services, consistent with Rule 17a–4(b) under the

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Document Created: 2016-09-14 02:27:03
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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 63237