82 FR 17474 - Proposed Collection; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 82, Issue 68 (April 11, 2017)

[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]


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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 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\
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    \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.
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    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