[Federal Register Volume 65, Number 216 (Tuesday, November 7, 2000)]
[Notices]
[Pages 66785-66786]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-28503]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 17a-2; SEC File No. 270-442; OMB Control No. 3235-0498.

    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 17a-12 under the Securities Exchange Act of 1934 is the 
reporting rule tailored specifically for OTC derivatives dealers, and 
Form X-17A-5IIB, the Financial and Operational Combined Uniform Single 
Report, is the basic document for reporting the financial and 
operational condition of OTC derivatives dealers.
    At this point there is only one registered OTC derivatives dealer, 
however it is anticipated to affect approximately six (and possibly up 
to ten) OTC derivatives dealers within the next three years, Rule 17a-
12 requires OTC derivatives dealers to file quarterly Financial and 
Operational Combined Uniform Single Reports (FOCUS)--Form X-17A-
5IIB.\1\ Rule 17a-12 also requires that OTC derivatives dealers file 
audited financial statements annually. The staff estimates that the 
average amount of time necessary to prepare and file the information 
required by the proposed rule is eighty hours per OTC derivatives 
dealer \2\ with each spending an additional one hundred hours on the 
annual audit for a total of 180 hours per OTC derivatives dealer 
annually. Thus the staff estimates that the total number of hours 
necessary for six OTC derivatives dealers to comply with the 
requirements of Rule 17a-12 on an annual basis is 1,080 hours.\3\
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    \1\ Form X-17a-5 [17 CFR 249.617].
    \2\ Based upon an average of 4 responses per year and an average 
of 20 hours spent preparing each response.
    \3\ Or, 1,800 hours annually for 10 OTC derivatives dealers to 
comply.
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    The staff believes that financial reporting specialists will 
prepare the FOCUS IIB Report and supporting Schedules, compliance 
personnel may review the reports to assure compliance with applicable 
rules, and accountants will prepare the audited annual reports. The 
staff estimates that the hourly salary of a financial reporting 
specialist is $72.40 per hour,\4\ the hourly salary of a compliance 
manager is $82.50 per hour,\5\ and the hourly salary of a compliance 
manager is $51.60 per hour.\6\ Based upon these numbers, the

[[Page 66786]]

total cost of compliance for six respondents is $65,950.00 per year.\7\
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    \4\ Per Securities Industry Association (SIA) Management and 
Professional Earnings. Table 011 (Financial Reporting Manager) + 35% 
overhead (based on end-of-year 1998 figures).
    \5\ SIA Management and Professional Earnings, Table 051 
(Compliance Manager + 35% overhead (based on end-of-year 1998 
figures).
    \6\ SIA Management and Professional Earnings, Table 003 (Senior 
Accountant) + 35% overhead (based on end-of-year 1998 figures).
    \7\ (19 hours  x  $72.40  x  4 filings per year) + (1 hour  x  
$82.50 per hour  x  4 filings per year) + (100 hours  x  $51.60  x  
1 filing per year)  x  six (6) OTC derivatives dealers. The total 
cost for ten (10) respondents would be $109,924.00 per year.
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    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, N.W. Washington, DC 20549.

    Dated: October 31, 2000.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 00-28503 Filed 11-6-00; 8:45 am]
BILLING CODE 8010-01-M