Document ID: SEC-2006-0103-0002
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals
Posted Date: 2008-11-05T05:00Z

[Federal Register: November 5, 2008 (Volume 73, Number 215)]
[Notices]               
[Page 65891-65892]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr05no08-98]                         

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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: PRA_Mailbox@sec.gov.

Florence E. Harmon,
Acting Secretary.
[FR Doc. E8-26389 Filed 11-4-08; 8:45 am]

BILLING CODE 8011-01-P