[Federal Register Volume 73, Number 215 (Wednesday, November 5, 2008)]
[Notices]
[Pages 65891-65892]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-26389]
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SECURITIES AND EXCHANGE COMMISSION
Proposed Collection; Comment Request
Upon Written Request, Copies Available From: U.S. Securities and
Exchange Commission, Office of Investor Education and Advocacy,
Washington, DC 20549-0213.
Extension:
Rule 15c2-7; OMB Control No. 3235-0479; SEC File No. 270-420.
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'') is soliciting comments on the collection of
information summarized below. The Commission plans to submit this
existing collection of information to the Office of Management and
Budget for extension and approval.
Rule 15c2-7 (17 CFR 240.15c2-7) places disclosure requirements on
broker-dealers who have correspondent relationships, or agreements
identified in the rule, with other broker-dealers. Whenever any such
broker-dealer enters a quotation for a security through an inter-dealer
quotation system, Rule 15c2-7 requires the broker-dealer to disclose
these relationships and agreements in the manner required by the rule.
The inter-dealer quotation system must also be able to make these
disclosures public in association with the quotation the broker-dealer
is making.
When rule 15c2-7 was adopted in 1964, the information it requires
was necessary for execution of the Commission's mandate under the
Securities Exchange Act of 1934 to prevent fraudulent, manipulative and
deceptive acts by broker-dealers. In the absence of the information
collection required under Rule 15c2-7, investors and broker-dealers
would have been unable to accurately determine the market depth of, and
demand for, securities in an inter-dealer quotation system.
There are approximately 5,808 broker-dealers registered with the
Commission. Any of these broker-dealers could be potential respondents
for Rule 15c2-7, so the Commission is using that figure to represent
the number of respondents. Rule 15c2-7 applies only to quotations
entered into an inter-dealer quotation system, such as the OTC Bulletin
Board (``OTCBB''), or Pink Sheets, operated by Pink OTC Markets, Inc.
According to representatives of both Pink Sheets and the OTCBB, neither
entity has recently received, or anticipates receiving any
[[Page 65892]]
Rule 15c2-7 notices. However, because such notices could be made, the
Commission estimates that one filing is made annually pursuant to Rule
15c2-7.
Based on prior industry reports, the Commission estimates that the
average time required to enter a disclosure pursuant to the rule is .75
minutes, or 45 seconds. The Commission sees no reason to change this
estimate. We estimate that impacted respondents spend a total of .0125
hours per year to comply with the requirements of Rule 15c2-7 (1 notice
(x) 45 seconds/notice). The Commission estimates that a typical
employee of a broker-dealer charged to ensure compliance with
Commission regulations receives annual compensation of $128,960. This
compensation is the equivalent of $62.00 per hour ($128,960 divided by
2,080 payroll hours per year). Thus, the Commission estimates that the
annual cost burden for compliance with Rule 15c2-7 is $0.78 ($62.00/
hour multiplied by 0.0125 hours).
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a current
and valid control number. Written comments are invited regarding: (a)
Whether the proposed collection of information is necessary for the
proper performance of the functions of the agency, including whether
the information will have practical utility; (b) the accuracy of the
agency's estimate of the burden of the collection of information; (c)
ways to enhance the quality, utility, and clarity of the information
collected; and (d) ways to minimize the burden of collecting
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.
Please direct your comments to Lewis W. Welker, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o
Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312 or send
an e-mail to: [email protected].
Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26389 Filed 11-4-08; 8:45 am]
BILLING CODE 8011-01-P