[Federal Register Volume 61, Number 98 (Monday, May 20, 1996)]
[Notices]
[Page 25248]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-12597]



=======================================================================
-----------------------------------------------------------------------

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 17a-13    SEC File No. 270-27    OMB Control No. 3235-
0035

    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 approval of extension on the following rule:
    Rule 17a-13(b) requires that at least once each calendar quarter, 
brokers and dealers physically examine and count all securities held 
and account for all other securities not in their possession, but 
subject to the broker-dealer's control or direction. Any discrepancies 
between the broker-dealer's securities count and the firm's records 
must be noted and, within seven days, the unaccounted for difference 
must be recorded in the firm's records. Rule 17a-13(c) provides that 
under specified conditions, the securities count, examination and 
verification of the broker-dealer's entire list of securities may be 
conducted on a cyclical basis rather than on a certain date. Although 
Rule 17a-13 does not require filing a report with the Commission, the 
discrepancies must be reported on the form required by Rule 17a-5.
    The information obtained from Rule 17a-13 is used as an inventory 
control device to monitor a broker-dealer's ability to account for all 
securities held, in transfer, in transit, pledged, loaned, borrowed, 
deposited or otherwise subject to the firm's control or direction. 
Discrepancies between the securities counts and the broker-dealer's 
records alert the Commission and the Self Regulatory Organizations 
(``SROs'') to those firms having problems in their back offices.
    Because of the many variations in the amount of securities that 
broker-dealers are accountable for, it is difficult to develop a 
meaningful figure for the cost of compliance with Rule 17a-13. About 
fifteen percent of all registered brokers and dealers are exempt from 
Rule 17a-13. Another significant amount of firms have minimal 
obligations under the rule because they hold, or are owed few 
securities. The average amount of time consumed by complying with Rule 
17a-13 is approximately 100 hours per year. It should be noted that 
most broker-dealers would engage in the activities required by Rule 
17a-13 even if they were not required to do so.
    General comments regarding the estimated burden hours should be 
directed to the Desk Officer for the Securities and Exchange Commission 
at the address below. Any comments concerning the accuracy of the 
estimated average burden hours for compliance with Commission rules and 
forms should be directed to Michael E. Bartell, Associate Executive 
Director, Office of Information Technology, Securities and Exchange 
Commission, 450 Fifth Street, NW., Washington, D.C. 20549 and Desk 
Officer for the Securities and Exchange Commission, Office of 
Information and Regulatory Affairs, Office of Management and Budget, 
Room 3208, New Executive Office Building, Washington, D.C. 20503.

    Dated: May 13, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-12597 Filed 5-17-96; 8:45 am]
BILLING CODE 8010-01-M