Document ID: SEC-2006-0171-0001
Agency: sec
Document Type: Notice
Title: Agency information collection activities; proposals, submissions, and approvals
Posted Date: 2006-02-10T05:00Z

[Federal Register: February 10, 2006 (Volume 71, Number 28)]
[Notices]               
[Page 7080-7081]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr10fe06-121]                         

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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.

[[Page 7081]]

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'') 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.

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, resulting in a total cost of 
    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).
    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 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 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.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Office of Information Technology, Securities 
and Exchange Commission, 100 F Street, NE., Washington, DC 20549.

    February 1, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. E6-1834 Filed 2-9-06; 8:45 am]

BILLING CODE 8010-01-P