Submission for OMB Review; Comment Request

[Federal Register Volume 64, Number 242 (Friday, December 17, 1999)]
[Notices]
[Pages 70752-70753]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-32710]


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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 Filings and Information Services, Washington, DC 
20549.
Extension:
    Rule 9b-1, SEC File No. 270-429, OMB Control No. 3235-0480
    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 (et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget a request for extension of the previously approved 
collection of information discussed below.
    Rule 9b-1 sets forth the categories of information required to be 
disclosed in an options disclosure document (``ODD'') and requires the 
options markets to file an ODD with the Commission 60 days prior to the 
date it is distributed to investors. In addition, Rule 9b-1 provides 
that the ODD must be amended if the information in the document becomes 
materially inaccurate or incomplete and that amendments must be filed 
with the Commission 30 days prior to the distribution to customers. 
Finally, Rule 9b-1 requires a broker-dealer to furnish to each customer 
an ODD and any amendments, prior to accepting an order to purchase or 
sell an option on behalf of that customer.
    There are 4 options markets that must comply with Rule 9b-1. These 
4 respondents work together to prepare a single ODD covering options 
traded on each market, as well as amendments to the ODD. These 
respondents file no more than one amendment per year, which requires 
approximately 8 hours per year for each respondent. Thus, the total 
compliance burden for options markets per year is 32 hours. The 
approximate cost per hour is $100, resulting in a total cost of 
compliance for these respondents of $3,200 per year (32 hours @ $100).
    In addition, approximately 2,000 broker-dealers must comply with 
Rule 9b-1. Each of these respondents will process an average of three 
new customers for options each week and, therefore, will have to 
furnish approximately 156 ODDs per year. The postal mailing or 
electronic delivery of the ODD takes respondents no more than 30 
seconds to complete for an annual compliance burden for each of these 
respondents of 78 minutes, or 1.3 hours. Thus, the total compliance 
burden per year is 2,600 hours (2,000 broker-dealers  x  1.3 hours). 
The approximate cost per hour to these respondents is $10 per hour, 
resulting in a total cost of compliance for these respondents of 
$26,000 per year (2,600 hours @ $10).
    The total compliance burden for all respondents under this rule 
(both options markets and broker-dealers) is 2632 hours per year 
(32+2,600), and

[[Page 70753]]

total compliance costs of $29,200 ($3,200+$26,000).
    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 control number.
    Written comments regarding the above information should be directed 
to the following persons: (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; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW., Washington, DC 20549. 
Comments must be submitted to OMB within 30 days of this notice.

    Dated: December 9, 1999.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-32710 Filed 12-16-99; 8:45 am]
BILLING CODE 8010-01-M