Document ID: SEC-2006-0171-0002
Agency: sec
Document Type: Notice
Title: Agency information collection activities; proposals, submissions, and approvals
Posted Date: 2006-04-17T04:00Z

[Federal Register: April 17, 2006 (Volume 71, Number 73)]
[Notices]               
[Page 19760-19761]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr17ap06-103]                         

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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.
     Options Disclosure Document.
    Rule 9b-1 under the Securities Exchange Act of 1934 (17 CFR 240.9b-
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 6 options markets that must comply with Rule 9b-1. These 
6 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 48 hours. The 
approximate cost per hour is $100,

[[Page 19761]]

resulting in a total cost of compliance for these respondents of $4,800 
    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 
    The total compliance burden for all respondents under this rule 
(both options markets and broker-dealers) is 2648 hours per year (48 + 
2,600), and total compliance costs of $30,800 ($4,800 + $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 or by sending an e-mail to: 
David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, Director/Chief 

Information Officer, Securities and Exchange Commission, c/o Shirley 
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send 
an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted to the 
Office of Management and Budget within 30 days of this notice.

    Dated: April 6, 2006.
Nancy M. Morris,
Secretary.
 [FR Doc. E6-5674 Filed 4-14-06; 8:45 am]

BILLING CODE 8010-01-P