81 FR 91987 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 81, Issue 243 (December 19, 2016)

Page Range		91987-91988
FR Document		2016-30375
Federal Register, Volume 81 Issue 243 (Monday, December 19, 2016)
[Federal Register Volume 81, Number 243 (Monday, December 19, 2016)]
[Notices]
[Pages 91987-91988]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-30375]


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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:

[[Page 91988]]

    Rule 17a-13, SEC File No. 270-27, OMB Control No. 3235-0035.

    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-13 (17 CFR 240.17a-
13) under the Securities Exchange Act of 1934 (15 U.S.C. 78 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 17a-13(b) (17 CFR 240.17a-13(b)) generally requires that at 
least once each calendar quarter, all registered brokers-dealers 
physically examine and count all securities held and account for all 
other securities not in their possession, but subject to the broker-
dealer's control or direction. Any discrepancies between the broker-
dealer's securities count and the firm's records must be noted and, 
within seven days, the unaccounted for difference must be recorded in 
the firm's records. Rule 17a-13(c) (17 CFR 240.17a-13(c)) provides that 
under specified conditions, the count, examination, and verification of 
the broker-dealer's entire list of securities may be conducted on a 
cyclical basis rather than on a certain date. Although Rule 17a-13 does 
not require broker-dealers to file a report with the Commission, 
discrepancies between a broker-dealer's records and the securities 
counts may be required to be reported, for example, as a loss on Form 
X-17a-5 (17 CFR 248.617), which must be filed with the Commission under 
Exchange Act Rule 17a-5 (17 CFR 240.17a-5). Rule 17a-13 exempts broker-
dealers that limit their business to the sale and redemption of 
securities of registered investment companies and interests or 
participation in an insurance company separate account and those who 
solicit accounts for federally insured savings and loan associations, 
provided that such persons promptly transmit all funds and securities 
and hold no customer funds and securities. Rule 17a-13 also does not 
apply to certain broker-dealers required to register only because they 
effect transactions in securities futures products.
    The information obtained from Rule 17a-13 is used as an inventory 
control device to monitor a broker-dealer's ability to account for all 
securities held in transfer, in transit, pledged, loaned, borrowed, 
deposited, or otherwise subject to the firm's control or direction. 
Discrepancies between the securities counts and the broker-dealer's 
records alert the Commission and applicable self-regulatory 
organizations (``SROs'') to those firms experiencing back-office 
operational issues.
    Currently, there are approximately 4,067 broker-dealers registered 
with the Commission. However, given the variability in their 
businesses, it is difficult to quantify how many hours per year each 
broker-dealer spends complying with Rule 17a-13. As noted, Rule 17a-13 
requires a respondent to account for all securities in its possession 
or subject to its control or direction. Many respondents hold few, if 
any, securities; while others hold large quantities. Therefore, the 
time burden of complying with Rule 17a-13 will depend on respondent-
specific factors, including a broker-dealer's size, number of 
customers, and proprietary trading activity. The staff estimates that 
the average time spent per respondent is 100 hours per year on an 
ongoing basis to maintain the records required under Rule 17a-13. This 
estimate takes into account the fact that more than half of the 4,067 
respondents--according to financial reports filed with the Commission--
may spend little or no time complying with the rule, given that they do 
not do a public securities business or do not hold inventories of 
securities. For these reasons, the staff estimates that the total 
compliance burden per year is 406,700 hours (4,067 respondents x 100 
hours/respondent).
    The records required to be made by Rule 17a-13 are available only 
to Commission examination staff, state securities authorities, and 
applicable SROs. Subject to the provisions of the Freedom of 
Information Act, 5 U.S.C. 522, and the Commission's rules thereunder 
(17 CFR 200.80(b)(4)(iii)), the Commission does not generally publish 
or make available information contained in any reports, summaries, 
analyses, letters, or memoranda arising out of, in anticipation of, or 
in connection with an examination or inspection of the books and 
records of any person or any other investigation.
    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 has 
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: December 6, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-30375 Filed 12-16-16; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 81, No. 243 / Monday, December 19, 2016 / Notices 91987

price improvement for those orders, and any burden on competition not Paper comments
thereby encourage additional necessary or appropriate in furtherance
submission of those orders into PIM. • Send paper comments in triplicate
of the purposes of the Act. The proposal
The Exchange believes that the to Brent J. Fields, Secretary, Securities
will apply to all Exchange members,
proposal, which subjects members to and Exchange Commission, 100 F Street
and participation in the PIM process is
the Minor Rule Violation Plan for failing NE., Washington, DC 20549–1090.
completely voluntary. Based on the data
to provide the required price collected by the Exchange during the All submissions should refer to File
improvement, coupled with the Pilot, the Exchange believes that there is Number SR–ISEMercury-2016–25. This
Exchange’s surveillance efforts, are meaningful competition in the PIM for file number should be included on the
designed to facilitate members’ all size orders, there are opportunities subject line if email is used. To help the
compliance with the proposed for significant price improvement for Commission process and review your
requirement. orders executed through PIM, and that comments more efficiently, please use
The Exchange believes that approving there is an active and liquid market only one method. The Commission will
the Pilot on a permanent basis is also post all comments on the Commission’s
functioning on the Exchange outside of
consistent with the Act. With respect to Internet Web site (http://www.sec.gov/
the PIM. The Exchange believes that
the no minimum size requirement, the rules/sro.shtml). Copies of the
requiring increased price improvement
Exchange believes that the data gathered submission, all subsequent
during the Pilot period indicates that for Agency Orders may encourage
competition by attracting additional amendments, all written statements
there is meaningful competition in the with respect to the proposed rule
PIM for all size orders, there is an active orders to participate in the PIM. The
Exchange believes that approving the change that are filed with the
and liquid market functioning on the Commission, and all written
Exchange outside of the auction Pilot on a permanent basis will not
communications relating to the
mechanism, and that there are significantly impact competition, as the
proposed rule change between the
opportunities for significant price Exchange is proposing no other change
Commission and any person, other than
improvement for orders executed to the Pilot beyond implementing it on
those that may be withheld from the
through PIM, including for small a permanent basis.
public in accordance with the
customer orders. C. Self-Regulatory Organization’s provisions of 5 U.S.C. 552, will be
With respect to the early termination Statement on Comments on the available for Web site viewing and
of the PIM, the Exchange believes that Proposed Rule Change Received From printing in the Commission’s Public
it is appropriate to terminate an auction Members, Participants, or Others Reference Room, 100 F Street NE.,
(i) at the end of the 500 millisecond Washington, DC 20549, on official
period, (ii) upon the receipt of a market No written comments were either business days between the hours of
or marketable limit order on the solicited or received. 10:00 a.m. and 3:00 p.m. Copies of the
Exchange in the same series, or (iii) filing also will be available for
upon the receipt of a nonmarketable III. Date of Effectiveness of the
Proposed Rule Change and Timing for inspection and copying at the principal
limit order in the same series on the office of the Exchange. All comments
same side of the market as the Agency Commission Action
received will be posted without change;
Order that would cause the price of the the Commission does not edit personal
Crossing Transaction to be outside of Within 45 days of the date of
publication of this notice in the Federal identifying information from
the best bid or offer on the Exchange. submissions. You should submit only
The Exchange also believes that it is Register or within such longer period (i)
as the Commission may designate up to information that you wish to make
consistent with the Act to require that,
90 days of such date if it finds such available publicly. All submissions
when a market order or marketable limit
longer period to be appropriate and should refer to File Number SR–
order on the opposite side of the market
publishes its reasons for so finding or ISEMercury 2016–25 and should be
from the Agency Order ends the
(ii) as to which the Exchange consents, submitted on or before January 9, 2017.
exposure period, it will participate in
the execution of the Agency Order at the the Commission shall: (a) By order For the Commission, by the Division of
price that is mid-way between the best approve or disapprove such proposed Trading and Markets, pursuant to delegated
counter-side interest and the NBBO, so rule change, or (b) institute proceedings authority.19
that both the market or marketable limit to determine whether the proposed rule Eduardo A. Aleman,
order and the Agency Order receive change should be disapproved. Assistant Secretary.
price improvement. Based on the data IV. Solicitation of Comments [FR Doc. 2016–30392 Filed 12–16–16; 8:45 am]
gathered during the pilot, the Exchange BILLING CODE 8011–01–P
does not anticipate that any of these Interested persons are invited to
conditions will occur with significant submit written data, views, and
frequency, or will otherwise disrupt the arguments concerning the foregoing, SECURITIES AND EXCHANGE
functioning of the PIM. The Exchange including whether the proposed rule COMMISSION
also notes that a significant percentage change is consistent with the Act.
of PIM auctions that terminated early Proposed Collection; Comment
Comments may be submitted by any of
executed at a price that was better than Request
the following methods:
the NBBO at the time the auction began, Upon Written Request, Copies Available
Electronic Comments
sradovich on DSK3GMQ082PROD with NOTICES

and that a significant percentage of From: Securities and Exchange
contracts in auctions that terminated • Use the Commission’s Internet Commission, Office of FOIA Services,
early received price improvement. comment form (http://www.sec.gov/ 100 F Street NE., Washington, DC
B. Self-Regulatory Organization’s rules/sro.shtml); or 20549–2736.
Statement on Burden on Competition • Send an email to rule-comments@ Extension:
The Exchange does not believe that sec.gov. Please include File Number SR–
the proposed rule change will impose ISEMercury 2016–25 on the subject line. 19 17 CFR 200.30–3(a)(12).

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Document Created: 2016-12-17 03:15:29
Document Modified: 2016-12-17 03:15:29
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 91987