83 FR 11261 - Submission for OMB Review; Comment Request

SECURITIES AND EXCHANGE COMMISSION

Federal Register Volume 83, Issue 50 (March 14, 2018)

Page Range		11261-11261
FR Document		2018-05168
Federal Register, Volume 83 Issue 50 (Wednesday, March 14, 2018)
[Federal Register Volume 83, Number 50 (Wednesday, March 14, 2018)]
[Notices]
[Page 11261]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-05168]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; 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 13h-1 and Form 13H
    SEC File No. 270-614, OMB Control No. 3235-0682

    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 (``SEC'' or ``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') a request for approval of extension of 
the existing collection of information provided for in Rule 13h-1 (17 
CFR 240.13h-1) and Form 13H--registration of large traders \1\ 
submitted pursuant to Section 13(h) of the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) (``Exchange Act'').
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    \1\ Rule 13h-1(a)(1) defines ``large trader'' as any person that 
directly or indirectly, including through other persons controlled 
by such person, exercises investment discretion over one or more 
accounts and effects transactions for the purchase or sale of any 
NMS security for or on behalf of such accounts, by or through one or 
more registered broker-dealers, in an aggregate amount equal to or 
greater than the identifying activity level or voluntarily registers 
as a large trader by filing electronically with the Commission Form 
13H.
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    Rule 13h-1 and Form 13H under Section 13(h) of the Exchange Act 
established a large trader reporting framework.\2\ The framework 
assists the Commission in identifying and obtaining certain baseline 
information about traders that conduct a substantial amount of trading 
activity, as measured by volume or market value, in the U.S. securities 
markets.
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    \2\ See Securities Exchange Act Release No. 64976 (July 27, 
2011), 76 FR 46959 (August 3, 2011).
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    The identification, recordkeeping, and reporting framework provides 
the Commission with a mechanism to identify large traders and obtain 
additional information on their trading activity. Specifically, the 
rule requires large traders to identify themselves to the Commission 
and make certain disclosures to the Commission on Form 13H. Upon 
receipt of Form 13H, the Commission issues a unique identification 
number to the large trader, which the large trader then provides to its 
registered broker-dealers. Certain registered broker-dealers are 
required to maintain transaction records for each large trader, and are 
required to report that information to the Commission upon request.\3\ 
In addition, certain registered broker-dealers are required to adopt 
procedures to monitor their customers for activity that would trigger 
the identification requirements of the rule.
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    \3\ The Commission, pursuant to Rule 17a-25 (17 CFR 240.17a-25), 
currently collects transaction data from registered broker-dealers 
through the Electronic Blue Sheets (``EBS'') system to support its 
regulatory and enforcement activities. The large trader framework 
added two new fields, the time of the trade and the identity of the 
trader, to the EBS system.
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    The respondents to the collection of information are large traders. 
There are currently approximately 6,300 large traders and 300 
registered broker-dealers. Based on its experience collecting initial 
Forms 13H in previous years, the Commission estimates that 
approximately 600 new large traders will register each year and thus be 
subject to quarterly and annual reporting requirements over the next 
three years.
    Each new large trader respondent files one response, which takes 
approximately 20 hours to complete. The average internal cost of 
compliance per response is $5,615, calculated as follows: (3 hours of 
compliance manager time at $307 per hour) + (7 hours of legal time at 
$362 per hour) + (10 hours of paralegal time at $212 per hour) = 
$5,615. Additionally, on average, each large trader respondent 
(including new respondents) files 2 responses per year, which take 
approximately 6 hours to complete. The average internal cost of 
compliance per response is $1,770, calculated as follows: (2 hours of 
compliance manager time at $307 per hour) + (2 hours of legal time at 
$362 per hour) + (2 hours of paralegal time at $212 per hour) = $1,770.
    Each registered broker-dealer's monitoring requirement takes 
approximately 15 hours per year. The average internal cost of 
compliance is $5,430, calculated as follows: 15 hours of legal time at 
$362 per hour = $5,430. The Commission estimates that it may send 100 
requests specifically seeking large trader data per year to each 
registered broker-dealer subject to the rule, and it would take each 
registered broker-dealer 2 hours to comply with each request. 
Accordingly, the annual reporting hour burden for a broker-dealer is 
estimated to be 200 burden hours (100 requests x 2 burden hours/request 
= 200 burden hours). The average internal cost of compliance per 
response is $432, calculated as follows: 2 hours of paralegal time at 
$212 per hour = $432.
    Compliance with Rule 13h-1 is mandatory. The information collection 
under proposed Rule 13h-1 is considered confidential subject to the 
limited exceptions provided by the Freedom of Information Act.\4\
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    \4\ See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7).
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    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.
    The public may view background documentation for this information 
collection at the following website: www.reginfo.gov. Comments should 
be directed to: (i) Desk Officer for the Securities and Exchange 
Commission, Office of Information and Regulatory Affairs, Office of 
Management and Budget, Room 10102, New Executive Office Building, 
Washington, DC 20503, or by sending an email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela C. Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE, Washington, DC 20549, or by sending an 
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: March 8, 2018.
Eduardo A. Aleman,
Assistant Secretary.
[FR Doc. 2018-05168 Filed 3-13-18; 8:45 am]
 BILLING CODE 8011-01-P
Federal Register / Vol. 83, No. 50 / Wednesday, March 14, 2018 / Notices 11261

available for website viewing and Rule 13h–1 and Form 13H under complete. The average internal cost of
printing in the Commission’s Public Section 13(h) of the Exchange Act compliance per response is $1,770,
Reference Room, 100 F Street NE, established a large trader reporting calculated as follows: (2 hours of
Washington, DC 20549, on official framework.2 The framework assists the compliance manager time at $307 per
business days between the hours of Commission in identifying and hour) + (2 hours of legal time at $362
10:00 a.m. and 3:00 p.m. Copies of the obtaining certain baseline information per hour) + (2 hours of paralegal time at
filing also will be available for about traders that conduct a substantial $212 per hour) = $1,770.
inspection and copying at the principal amount of trading activity, as measured Each registered broker-dealer’s
office of the Exchange. All comments by volume or market value, in the U.S. monitoring requirement takes
received will be posted without change. securities markets. approximately 15 hours per year. The
Persons submitting comments are The identification, recordkeeping, and average internal cost of compliance is
cautioned that we do not redact or edit reporting framework provides the $5,430, calculated as follows: 15 hours
personal identifying information from Commission with a mechanism to of legal time at $362 per hour = $5,430.
comment submissions. You should identify large traders and obtain The Commission estimates that it may
submit only information that you wish additional information on their trading send 100 requests specifically seeking
to make available publicly. All activity. Specifically, the rule requires large trader data per year to each
submissions should refer to File large traders to identify themselves to registered broker-dealer subject to the
Number SR–GEMX–2018–09 and the Commission and make certain rule, and it would take each registered
should be submitted on or before April disclosures to the Commission on Form broker-dealer 2 hours to comply with
4, 2018. 13H. Upon receipt of Form 13H, the each request. Accordingly, the annual
For the Commission, by the Division of Commission issues a unique reporting hour burden for a broker-
Trading and Markets, pursuant to delegated identification number to the large dealer is estimated to be 200 burden
authority.8 trader, which the large trader then hours (100 requests × 2 burden hours/
Eduardo A. Aleman, provides to its registered broker-dealers. request = 200 burden hours). The
Assistant Secretary. Certain registered broker-dealers are average internal cost of compliance per
[FR Doc. 2018–05164 Filed 3–13–18; 8:45 am]
required to maintain transaction records response is $432, calculated as follows:
for each large trader, and are required to 2 hours of paralegal time at $212 per
BILLING CODE 8011–01–P
report that information to the hour = $432.
Commission upon request.3 In addition,
certain registered broker-dealers are Compliance with Rule 13h–1 is
SECURITIES AND EXCHANGE mandatory. The information collection
COMMISSION required to adopt procedures to monitor
their customers for activity that would under proposed Rule 13h–1 is
trigger the identification requirements of considered confidential subject to the
Submission for OMB Review;
the rule. limited exceptions provided by the
Comment Request
The respondents to the collection of Freedom of Information Act.4
Upon Written Request, Copies Available information are large traders. There are An agency may not conduct or
From: Securities and Exchange currently approximately 6,300 large sponsor, and a person is not required to
Commission, Office of FOIA Services, traders and 300 registered broker- respond to, a collection of information
100 F Street NE, Washington, DC dealers. Based on its experience under the PRA unless it displays a
20549–2736. collecting initial Forms 13H in previous currently valid OMB control number.
Extension: Rule 13h–1 and Form 13H years, the Commission estimates that The public may view background
SEC File No. 270–614, OMB Control No. approximately 600 new large traders documentation for this information
3235–0682 will register each year and thus be collection at the following website:
Notice is hereby given that pursuant subject to quarterly and annual www.reginfo.gov. Comments should be
to the Paperwork Reduction Act of 1995 reporting requirements over the next directed to: (i) Desk Officer for the
(44 U.S.C. 3501 et seq. ‘‘PRA’’), the three years. Securities and Exchange Commission,
Securities and Exchange Commission Each new large trader respondent files Office of Information and Regulatory
(‘‘SEC’’ or ‘‘Commission’’) has one response, which takes Affairs, Office of Management and
submitted to the Office of Management approximately 20 hours to complete. Budget, Room 10102, New Executive
and Budget (‘‘OMB’’) a request for The average internal cost of compliance Office Building, Washington, DC 20503,
approval of extension of the existing per response is $5,615, calculated as or by sending an email to: Shagufta_
collection of information provided for in follows: (3 hours of compliance manager Ahmed@omb.eop.gov; and (ii) Pamela C.
Rule 13h–1 (17 CFR 240.13h–1) and time at $307 per hour) + (7 hours of Dyson, Director/Chief Information
Form 13H—registration of large traders 1 legal time at $362 per hour) + (10 hours Officer, Securities and Exchange
submitted pursuant to Section 13(h) of of paralegal time at $212 per hour) = Commission, c/o Remi Pavlik-Simon,
the Securities Exchange Act of 1934 (15 $5,615. Additionally, on average, each 100 F Street NE, Washington, DC 20549,
U.S.C. 78a et seq.) (‘‘Exchange Act’’). large trader respondent (including new or by sending an email to: PRA_
respondents) files 2 responses per year, Mailbox@sec.gov. Comments must be
8 17 CFR 200.30–3(a)(12). which take approximately 6 hours to submitted to OMB within 30 days of
1 Rule 13h–1(a)(1) defines ‘‘large trader’’ as any
2 See Securities Exchange Act Release No. 64976
this notice.
person that directly or indirectly, including through
daltland on DSKBBV9HB2PROD with NOTICES

other persons controlled by such person, exercises (July 27, 2011), 76 FR 46959 (August 3, 2011). Dated: March 8, 2018.
investment discretion over one or more accounts 3 The Commission, pursuant to Rule 17a–25 (17
Eduardo A. Aleman,
and effects transactions for the purchase or sale of CFR 240.17a–25), currently collects transaction data
any NMS security for or on behalf of such accounts, from registered broker-dealers through the Assistant Secretary.
by or through one or more registered broker-dealers, Electronic Blue Sheets (‘‘EBS’’) system to support [FR Doc. 2018–05168 Filed 3–13–18; 8:45 am]
in an aggregate amount equal to or greater than the its regulatory and enforcement activities. The large BILLING CODE 8011–01–P
identifying activity level or voluntarily registers as trader framework added two new fields, the time of
a large trader by filing electronically with the the trade and the identity of the trader, to the EBS
Commission Form 13H. system. 4 See 5 U.S.C. 552 and 15 U.S.C. 78m(h)(7).

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Document Created: 2018-03-14 01:06:41
Document Modified: 2018-03-14 01:06:41
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		83 FR 11261