Document ID: SEC-2011-0433-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2011-04-01T04:00Z

[Federal Register Volume 76, Number 63 (Friday, April 1, 2011)]
[Notices]
[Pages 18264-18265]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2011-7689]

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SECURITIES AND EXCHANGE COMMISSION

Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Investor Education and Advocacy, Washington, DC 
20549-0213.

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.), 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.). The Commission plans to submit this existing collection of 
information to the Office of Management and Budget for extension and 
approval.
    On September 13, 1971, effective December 13, 1971 (see 36 FR 
18641, September 18, 1971), the Commission adopted Rule 15c2-11 (``Rule 
15c2-11'' or ``Rule'') under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) to regulate the initiation or resumption of 
quotations in a quotation 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 brokers-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 2010 calendar year, FINRA received 
approximately 1,798 applications from broker-dealers to initiate or 
resume publication of covered OTC securities in the OTC Bulletin Board 
and/or the Pink Sheets or other quotation mediums. We estimate that (i) 
41% of the covered OTC securities were issued by reporting issuers, 
while the other 59% 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 2,949 hours (1,798 x 41% 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 8,487 
hours (1,798 x 59% 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 11,436 hours (2,949 + 8,487). The 
Commission believes that these 11,436 hours would be completed by staff 
working at a rate of $40 per hour.\1\
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    \1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2007 for 
General Clerk national hourly rate.
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    Subject to certain exceptions, the Rule prohibits brokers-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

[[Page 18265]]

collection of information; (c) ways to enhance the quality, utility, 
and clarity of the information on respondents; 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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid Office of Management and Budget (OMB) control number.
    Please direct your written comments to: Thomas Bayer, Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an e-mail to: PRA_Mailbox@sec.gov.

    Dated: March 28, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-7689 Filed 3-31-11; 8:45 am]
BILLING CODE 8011-01-P