82 FR 17474 - Proposed Collection; Comment Request
SECURITIES AND EXCHANGE COMMISSION Federal Register Volume 82, Issue 68 (April 11, 2017)
Federal Register Volume 82, Issue 68 (April 11, 2017)
| Page Range | 17474-17475 | |
| FR Document | 2017-07248 |
[Federal Register Volume 82, Number 68 (Tuesday, April 11, 2017)] [Notices] [Pages 17474-17475] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-07248] ----------------------------------------------------------------------- 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 15c2-11, SEC File No. 270-196, OMB Control No. 3235-0202 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 15c2-11, (17 CFR 240.15c2-11), 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 15c2-11 under the Securities Exchange Act regulates the initiation or resumption of quotations in a quotation [[Page 17475]] medium by a broker-dealer for over-the-counter (``OTC'') securities. The Rule was designed primarily to prevent certain manipulative and fraudulent trading schemes that had arisen in connection with the distribution and trading of unregistered securities issued by shell companies or other companies having outstanding but infrequently traded securities. 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. Based on information provided by Financial Industry Regulatory Authority, Inc. (``FINRA''), in the 2016 calendar year, FINRA received approximately 461 applications from broker-dealers to initiate or resume publication of quotations of covered OTC securities on the OTC Bulletin Board and/or OTC Link or other quotation mediums. We estimate that (i) 195 of the covered OTC securities were issued by reporting issuers, while the other 266 were issued by non-reporting issuers, and (ii) it will take a broker-dealer about 4 hours to review, record and retain the information pertaining to a reporting issuer, and about 8 hours to review, record and retain the information pertaining to a non- reporting issuer. We therefore estimate that broker-dealers who initiate or resume publication of quotations for covered OTC securities of reporting issuers will require 780 hours (195 x 4) to review, record and retain the information required by the Rule. We estimate that broker-dealers who initiate or resume publication of quotations for covered OTC securities of non-reporting issuers will require 2,128 hours (266 x 8) to review, record and retain the information required by the Rule. Thus, we estimate the total annual burden hours for broker-dealers to initiate or resume publication of quotations of covered OTC securities to be 2908 hours (780 + 2,128). The Commission believes that compliance costs for these 2,908 hours would be borne by internal staff working at a rate of $57 per hour.\1\ --------------------------------------------------------------------------- \1\ $57 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 1,800-hourwork-year and inflation, and multiplied by 2.93 to account for bonuses, firm size, employee benefits and overhead. --------------------------------------------------------------------------- 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. The broker-dealer must also make the information reasonably available upon request to any person expressing an interest in a proposed transaction in the security with such broker or dealer. The collection of information that is submitted to FINRA for review and approval is currently not available to the public from FINRA. 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 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: April 6, 2017. Eduardo A. Aleman, Assistant Secretary. [FR Doc. 2017-07248 Filed 4-10-17; 8:45 am] BILLING CODE 8011-01-P
![17474 Federal Register / Vol. 82, No. 68 / Tuesday, April 11, 2017 / Notices
enhancements to the CRRM would (C) Clearing Agency’s Statement on Commission, and all written
improve FICC’s member credit risk Comments on the Proposed Rule communications relating to the
evaluation process by (1) expanding the Change Received From Members, proposed rule change between the
CRRM’s credit rating capability and Participants, or Others Commission and any person, other than
thereby providing more comprehensive Written comments relating to this those that may be withheld from the
credit risk coverage of FICC public in accordance with the
proposed rule change have not been
membership, (2) enabling the CRRM to provisions of 5 U.S.C. 552, will be
solicited or received. FICC will notify
generate more consistent and available for Web site viewing and
the Commission of any written
comprehensive credit ratings for printing in the Commission’s Public
comments received by FICC.
members and thereby reducing the need Reference Room, 100 F Street NE.,
III. Date of Effectiveness of the Washington, DC 20549 on official
and frequency for manual downgrades
Proposed Rule Change, and Timing for business days between the hours of
and (3) enabling the CRRM to generate
Commission Action 10:00 a.m. and 3:00 p.m. Copies of the
credit ratings for members that are more filing also will be available for
reflective of the members’ default risk. Within 45 days of the date of
publication of this notice in the Federal inspection and copying at the principal
However, FICC recognizes that any office of FICC and on DTCC’s Web site
change to its member credit risk Register or within such longer period
(http://dtcc.com/legal/sec-rule-
evaluation process, such as the up to 90 days (i) as the Commission may
filings.aspx). All comments received
proposed rule change, may impose a designate if it finds such longer period
will be posted without change; the
burden on competition in terms of to be appropriate and publishes its
Commission does not edit personal
potential impact on members’ credit reasons for so finding or (ii) as to which
identifying information from
the self-regulatory organization
ratings and their Clearing Fund submissions. You should submit only
consents, the Commission will:
deposits. Nevertheless, FICC believes information that you wish to make
(A) By order approve or disapprove
that any burden on competition derived available publicly. All submissions
such proposed rule change, or
from the proposed rule change would be should refer to File Number SR–FICC–
(B) institute proceedings to determine 2017–006 and should be submitted on
necessary and appropriate in whether the proposed rule change
furtherance of the Act because the or before May 2, 2017.
should be disapproved.
proposed enhancements to the CRRM The proposal shall not take effect For the Commission, by the Division of
would help improve FICC’s membership Trading and Markets, pursuant to delegated
until all regulatory actions required
monitoring process and thus better authority.24
with respect to the proposal are
enable FICC to safeguard the securities Eduardo A. Aleman,
completed.
and funds which are in its custody or Assistant Secretary.
control or for which it is responsible. IV. Solicitation of Comments [FR Doc. 2017–07182 Filed 4–10–17; 8:45 am]
Furthermore, the proposed Interested persons are invited to BILLING CODE 8011–01–P
enhancements to the CRRM would also submit written data, views and
assist FICC in identifying, measuring, arguments concerning the foregoing,
including whether the proposed rule SECURITIES AND EXCHANGE
monitoring and managing risks that
change is consistent with the Act. COMMISSION
arise in or are born by FICC. As such,
FICC does not believe the proposed Comments may be submitted by any of
Proposed Collection; Comment
enhancements to the CRRM would the following methods:
Request
impose any burden on competition that Electronic Comments
is not necessary or appropriate in Upon Written Request, Copies Available
• Use the Commission’s Internet From: Securities and Exchange
furtherance of the Act.
comment form (http://www.sec.gov/ Commission, Office of FOIA Services,
FICC does not believe that the rules/sro.shtml); or 100 F Street NE., Washington, DC
proposed rule changes to (1) GSD Rule • Send an email to rule-comments@ 20549–2736
1 (Definitions of Credit Risk Rating sec.gov. Please include File Number SR– Extension:
Matrix and Watch List), GSD Rule 3 FICC–2017–006 on the subject line. Rule 15c2–11, SEC File No. 270–196, OMB
(Sections 7 and 12), GSD Rules 5, 11 Control No. 3235–0202
Paper Comments
and 18 and (2) MBSD Rule 1 Notice is hereby given that, pursuant
(Definitions of Credit Risk Rating Matrix • Send paper comments in triplicate
to the Paperwork Reduction Act of 1995
and Watch List) and MBSD Rule 3 to Secretary, Securities and Exchange
(44 U.S.C. 3501 et seq.) (‘‘PRA’’), the
(Sections 6 and 11) that are unrelated to Commission, 100 F Street NE.,
Securities and Exchange Commission
the proposed CRRM enhancements Washington, DC 20549.
(‘‘Commission’’) is soliciting comments
would have any impact on competition All submissions should refer to File on the existing collection of information
because each of such proposed rule Number SR–FICC–2017–006. This file provided for in Rule 15c2–11, (17 CFR
changes is designed to provide number should be included on the 240.15c2–11), under the Securities
additional specificity, clarity and subject line if email is used. To help the Exchange Act of 1934 (15 U.S.C. 78a et
transparency in the Rules regarding Commission process and review your seq.) (‘‘Exchange Act’’). The
FICC’s current ongoing membership comments more efficiently, please use Commission plans to submit this
only one method. The Commission will
srobinson on DSK5SPTVN1PROD with NOTICES
monitoring process by expressly existing collection of information to the
providing in the Rules FICC’s current post all comments on the Commission’s Office of Management and Budget
Internet Web site (http://www.sec.gov/ (‘‘OMB’’) for extension and approval.
practices with respect to such process.
rules/sro.shtml). Copies of the Rule 15c2–11 under the Securities
As such, these proposed rule changes
submission, all subsequent Exchange Act regulates the initiation or
would not impact FICC members or amendments, all written statements resumption of quotations in a quotation
impose any burden on competition. with respect to the proposed rule
change that are filed with the 24 17 CFR 200.30–3(a)(12).
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![Federal Register / Vol. 82, No. 68 / Tuesday, April 11, 2017 / Notices 17475
medium by a broker-dealer for over-the- reviewed specified information notice is hereby given that on March 22,
counter (‘‘OTC’’) securities. The Rule concerning the security and the issuer. 2017, National Securities Clearing
was designed primarily to prevent The broker-dealer must also make the Corporation (‘‘NSCC’’) filed with the
certain manipulative and fraudulent information reasonably available upon Securities and Exchange Commission
trading schemes that had arisen in request to any person expressing an (‘‘Commission’’) the proposed rule
connection with the distribution and interest in a proposed transaction in the change as described in Items I, II and III
trading of unregistered securities issued security with such broker or dealer. The below, which Items have been prepared
by shell companies or other companies collection of information that is by the clearing agency.3 The
having outstanding but infrequently submitted to FINRA for review and Commission is publishing this notice to
traded securities. Subject to certain approval is currently not available to the
solicit comments on the proposed rule
exceptions, the Rule prohibits broker- public from FINRA.
Written comments are invited on: (a) change from interested persons.
dealers from publishing a quotation for
a security, or submitting a quotation for Whether the proposed collection of I. Clearing Agency’s Statement of the
publication, in a quotation medium information is necessary for the proper Terms of Substance of the Proposed
unless they have reviewed specified performance of the functions of the Rule Change
information concerning the security and Commission, including whether the
the issuer. information shall have practical utility; The proposed rule change consists of
Based on information provided by (b) the accuracy of the Commission’s amendments to NSCC’s Rules and
Financial Industry Regulatory estimates of the burden of the proposed Procedures (‘‘Rules’’).4 The proposed
Authority, Inc. (‘‘FINRA’’), in the 2016 collection of information; (c) ways to rule change would amend the Rules in
calendar year, FINRA received enhance the quality, utility, and clarity order to (i) enhance the matrix
approximately 461 applications from of the information collected; and (d) (hereinafter referred to as the ‘‘Credit
broker-dealers to initiate or resume ways to minimize the burden of the Risk Rating Matrix’’ or ‘‘CRRM’’) 5
publication of quotations of covered collection of information on developed by NSCC to evaluate the risks
OTC securities on the OTC Bulletin respondents, including through the use posed by certain Members (‘‘CRRM-
Board and/or OTC Link or other of automated collection techniques or
Rated Members’’) to NSCC and its
quotation mediums. We estimate that (i) other forms of information technology.
Members from providing services to
195 of the covered OTC securities were Consideration will be given to
issued by reporting issuers, while the comments and suggestions submitted in these CRRM-Rated Members and (ii)
other 266 were issued by non-reporting writing within 60 days of this make other amendments to the Rules to
issuers, and (ii) it will take a broker- publication. provide more transparency and clarity
dealer about 4 hours to review, record An agency may not conduct or regarding NSCC’s current ongoing
and retain the information pertaining to sponsor, and a person is not required to membership monitoring process.
a reporting issuer, and about 8 hours to respond to, a collection of information II. Clearing Agency’s Statement of the
review, record and retain the unless it displays a currently valid OMB
Purpose of, and Statutory Basis for, the
information pertaining to a non- control number.
Please direct your written comments Proposed Rule Change
reporting issuer.
We therefore estimate that broker- to: Pamela Dyson, Director/Chief In its filing with the Commission, the
dealers who initiate or resume Information Officer, Securities and clearing agency included statements
publication of quotations for covered Exchange Commission, c/o Remi Pavlik- concerning the purpose of and basis for
OTC securities of reporting issuers will Simon, 100 F Street NE., Washington,
the proposed rule change and discussed
require 780 hours (195 × 4) to review, DC 20549, or send an email to: PRA_
Mailbox@sec.gov. any comments it received on the
record and retain the information
proposed rule change. The text of these
required by the Rule. We estimate that Dated: April 6, 2017.
broker-dealers who initiate or resume statements may be examined at the
Eduardo A. Aleman, places specified in Item IV below. The
publication of quotations for covered Assistant Secretary.
OTC securities of non-reporting issuers clearing agency has prepared
[FR Doc. 2017–07248 Filed 4–10–17; 8:45 am] summaries, set forth in sections A, B,
will require 2,128 hours (266 × 8) to
review, record and retain the BILLING CODE 8011–01–P and C below, of the most significant
information required by the Rule. Thus, aspects of such statements.
we estimate the total annual burden SECURITIES AND EXCHANGE
hours for broker-dealers to initiate or COMMISSION
3 On March 22, 2017, NSCC filed this proposed
resume publication of quotations of rule change as an advance notice (SR–NSCC–2017–
[Release No. 34–80381; File No. SR–NSCC– 801) with the Commission pursuant to Section
covered OTC securities to be 2908 hours
2017–002] 806(e)(1) of Title VIII of the Dodd-Frank Wall Street
(780 + 2,128). The Commission believes Reform and Consumer Protection Act entitled the
that compliance costs for these 2,908 Payment, Clearing, and Settlement Supervision Act
hours would be borne by internal staff Self-Regulatory Organizations; of 2010, 12 U.S.C. 5465(e)(1), and Rule 19b–
working at a rate of $57 per hour.1 National Securities Clearing 4(n)(1)(i) of the Act, 17 CFR 240.19b–4(n)(1)(i). A
Subject to certain exceptions, the Rule Corporation; Notice of Filing of copy of the advance notice is available at http://
prohibits broker-dealers from publishing Proposed Rule Change To Enhance www.dtcc.com/legal/sec-rule-filings.aspx.
a quotation for a security, or submitting the Credit Risk Rating Matrix and Make 4 Capitalized terms not defined herein are defined
Other Changes in the Rules, available at http://www.dtcc.com/∼/
a quotation for publication, in a
srobinson on DSK5SPTVN1PROD with NOTICES
media/Files/Downloads/legal/rules/nscc_rules.pdf.
quotation medium unless they have April 5, 2017. 5 The proposed rule changes with respect to the
Pursuant to Section 19(b)(1) of the enhancement of the CRRM are reflected in the
1 $57per hour figure for a General Clerk is from inclusion of (i) qualitative factors and examples
Securities Exchange Act of 1934 thereof in the proposed new definition for ‘‘Credit
SIFMA’s Office Salaries in the Securities Industry
2013, modified by Commission staff to account for
(‘‘Act’’),1 and Rule 19b–4 thereunder,2 Risk Rating Matrix’’ in Rule 1 and (ii) Members that
an 1,800-hourwork-year and inflation, and are foreign banks or trust companies that have
1 15 U.S.C. 78s(b)(1).
multiplied by 2.93 to account for bonuses, firm size, audited financial data that is publicly available in
employee benefits and overhead. 2 17 CFR 240.19b–4. Section 4(b)(i) of Rule 2B.
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Document Created: 2017-04-11 00:48:27
Document Modified: 2017-04-11 00:48:27
| 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 | 82 FR 17474 |
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