Document ID: SEC-2014-0561-0001
Agency: sec
Document Type: Notice
Title: Agency Information Collection Activities; Proposals, Submissions, and Approvals: Rule 15c2-11
Posted Date: 2014-04-07T04:00Z

[Federal Register Volume 79, Number 66 (Monday, April 7, 2014)]
[Notices]
[Pages 19128-19129]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-07655]

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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.) (``PRA''), 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.) (``Exchange Act''). The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Rule 15c2-11 under the Securities Exchange Act regulates 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 broker-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 2013 calendar year, FINRA received 
approximately 1,009 applications from broker-dealers to initiate or 
resume publication of quotations of covered OTC securities on the OTC 
Bulletin Board and/or OTC Link or other quotation mediums. We estimate 
that (i) 31% of the covered OTC securities were issued by reporting 
issuers, while the other 69% 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 1,236 hours (1,009 x 31% 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 5,600 
hours (1,009 x 69% 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 6,836 hours (1,236 + 5,600). The 
Commission believes that these 6,836 hours would be borne by internal 
staff working at a rate of $53 per hour.\1\
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    \1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2012 for 
General Clerk national hourly rate.
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    Subject to certain exceptions, the Rule prohibits broker-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 collection of information; (c) 
ways to

[[Page 19129]]

enhance the quality, utility, and clarity of the information 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: April 2, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-07655 Filed 4-4-14; 8:45 am]
BILLING CODE 8011-01-P