[Federal Register Volume 61, Number 215 (Tuesday, November 5, 1996)]
[Notices]
[Pages 56977-56978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-28317]


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SECURITIES AND EXCHANGE COMMISSION

Request for Public Comment

    Upon Written Request, Copies Available From Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.
Existing Collection In Use Without an OMB Number
    Rule 15c2-1--SEC File No. 270-418--OMB Control No. 3235--new.
    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 publishing the following summary of 
collection for public comment.
    Rule 15c2-1 prohibits the commingling under the same lien of 
securities of margin customers: (a) with other customers without their 
written consent; and (b) with the broker or dealer. The rule also 
prohibits the rehypothecation of customers' margin securities for a sum 
in excess of the customer's aggregate indebtedness. See

[[Page 56978]]

Securities Exchange Act Release No. 2690 (November 15, 1940); 
Securities Exchange Act Release No. 9428 (December 29, 1971). Pursuant 
to Rule 15c2-1, respondents must collect information necessary to 
prevent the rehypothecation of customer account in contravention of the 
rule, issue and retain copies of notices of hypothecation of customer 
accounts in accordance with the rule, and collect written consents from 
customers in accordance with the rule. The information is necessary to 
ensure compliance with the rule, and to advise customers of the rule's 
protections.
    There are approximately 258 respondents per year (i.e., broker-
dealers that carry or clear customer accounts that also have bank 
loans) that require an aggregate total of 5,805 hours to comply with 
the rule. Each of these approximately 258 registered broker-dealers 
makes an estimated 45 annual responses, for an aggregate total of 
11,610 responses per year. Each response takes approximately 0.5 hours 
to complete. Thus, the total compliance burden per year is 5,805 burden 
hours. The approximate cost per hour is $20, resulting in a total cost 
of compliance for the respondents of $116,100 (5,805 hours @ $20 per 
hour).
    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 shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the proposed collection of information; (c) ways to 
enhance the quality, utility, and clarity of the information to be 
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.
    Direct your written comments to Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 5th Street, N.W., Washington, DC 20549.

    Dated: October 29, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 96-28317 Filed 11-4-96; 8:45 am]
BILLING CODE 8010-01-M