[Federal Register Volume 62, Number 2 (Friday, January 3, 1997)]
[Notices]
[Pages 432-434]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-22]


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SECURITIES AND EXCHANGE COMMISSION

Submission for OMB Review; Comment Request

Approval of Existing Collections

Rule 9b-1; SEC File No. 270-429; OMB Control No. 3235-New.
Rule 15c2-8; SEC File No. 270-421; OMB Control No. 3235-New.

Extensions

Rule 12f-1; SEC File No. 270-139; OMB Control No. 3235-0128.
Rule 12f-2 and Form 27; SEC File No. 270-140; OMB Control No. 3235-
0248.
Rule 12f-3 and Form 28; SEC File No. 270-141; OMB Control No. 3235-
0249.
Rule 12a-5 and Form 26; SEC File No. 270-85; OMB Control No. 3235-0079.
Rule 15Aj-1, Form X-15AJ-1 and Form X-15AJ-2; SEC File No. 270-25; OMB 
Control No. 3235-0044.
Rule 15c2-11; SEC File No. 270-196; OMB Control No. 3235-0202.

    Upon Written Request, Copies Available From: Securities and 
Exchange Commission, Office of Filings and Information Services, 
Washington, DC 20549.
    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 requests for approval of existing collections without OMB 
approval and extension on previously approved collections of 
information:
    Rule 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 
and ODD and any amendments, prior to accepting an order to purchase or 
sell an option on behalf of that customer.
    There are 5 options markets that must comply with Rule 9b-1, These 
5 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 40 hours. The 
approximate cost per hour is $100, resulting in a total cost of 
compliance for these respondents of $4,000 per year (40 hours @ $100).
    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 
$26,000 per year (2,600 hours @ 1.3 hours).
    The total compliance burden for all respondents under this rule 
(both

[[Page 433]]

options markets and broker-dealers) is 2,640 hours per year (40 + 
2,600), and total compliance costs of $30,000 ($4,000 + $26,000).
    Rule 15c2-8 requires broker-dealers to deliver preliminary or final 
prospectuses to specified persons in association with securities 
offerings. This requirement ensures that information concerning issuers 
flows to purchasers of the issuers' securities in a timely fashion. 
There are approximately 8,500 broker-dealers, any of which potentially 
may participate in an offering subject to Rule 15c2-8. The Commission 
estimates that Rule 15c2-8 creates approximately 40,290 burden hours 
with respect to approximately 579 initial public offerings and 1,344 
other offerings.
    Estimating that records are to be kept by compliance or other 
related personnel paid at an hourly rate of $28, the total annualized 
cost burden for recordkeeping is $1,128,120 (28  x  40,290). Added to 
this are the costs of copying and mailing. These costs are estimated to 
be approximately $100,000 per initial public offering, for a total of 
$59,200,000, with other costs expected to be de minimis, as they would 
be incurred for purposes of complying with Securities Act of 1933 
provisions. The total annualized cost burden is therefore $60,328,120.
    Rule 12f-1 sets forth the information which an exchange must 
include in an application for unlisted trading privileges in a 
security. There are 5 national securities exchanges that require an 
aggregate total of 670 hours to comply with this rule. Each of these 5 
respondents makes an estimated 134 annual responses, for an aggregate 
of 670 responses per year. Each response takes approximately 1 hours to 
complete. Thus, the total compliance burden per year is 670 burden 
hours. The approximate cost per hour is $100, resulting in a total cost 
of compliance for the respondents of $67,000 (670 hours @ $100).
    Rule 12f-2 requires that a national securities exchange must report 
to the Commission certain changes in a security admitted to unlisted 
trading privileges. This report is generally made by filing Form 27. 
There is one respondent that requires an aggregate total of 42 minutes 
to comply with this rule. Thus, the total compliance burden per year is 
42 minutes. The total cost of compliance for the respondents is $27.
    Rule 12f-3 prescribes the information which must be included in 
applications for and notices of termination or suspension of unlisted 
trading privileges in a security. An exchange must notify the 
Commission of such action by promptly filing a Form 28. Each of the 
five national securities exchange respondents incurs an average of 20 
burden hours per year in complying with the rule, for a total burden of 
100 hours. The approximate cost per hour is $100, for a total 
annualized cost burden of $10,000.
    Rule 12a-5, under paragraph (d), directs that after an exchange has 
taken action to admit any security to trading pursuant to the 
provisions of the Rule 12a-5, the exchange is required to file with the 
Commission a notification on Form 26. Form 26 provides the Commission 
with certain information regarding a security admitted to trading on an 
exchange pursuant to Rule 12a-5, including: (1) The name of the 
exchange, (2) the name of the issuer, (3) a description of the 
security, (4) the date(s) the security was or will be admitted to when 
issued and/or regular trading, and (5) a brief description of the 
transaction pursuant to which the security was or will be issued.
    The Commission generally is responsible for overseeing the national 
securities exchanges, and is particularly responsible under Section 
12(a) of the Securities Exchange Act of 1934 (``Act'') to receive 
notification of any securities that are permitted to trade on an 
exchange pursuant to the temporary exemption under Rule 12a-5. Without 
the Rule and the Form, the Commission would be unable fully to 
implement these statutory responsibilities.
    There are nine national securities exchanges which may avail 
themselves of the exemption provided by Rule 12a-5. While approximately 
45 Form 26s are filed annually, the reporting burdens typically are not 
spread evenly among the exchanges. For purposes of this filing, the 
staff has assumed that each exchange files an equal number (five) of 
Form 26 reports. Each report requires approximately 20 minutes to 
complete, and so the aggregate annual compliance burden is estimated to 
be 100 minutes for each exchange and 15 hours for all nine exchanges.
    The Commission staff estimates that the cost to respondents of 
completing Form 26 ranges from approximately $10 to $15, with an 
average cost per response of $13. The estimated total annual cost for 
complying with the Rule 12a-5 is about $65 for each exchange, and $585 
for all exchanges combined.
    Rule 15Aj-1 implements the requirements of Sections 15A, 17, and 19 
of the Act by requiring every association applying for registration or 
registered as a national, or as an affiliated securities association to 
keep its registration statement up to date by filing with the 
Commission on Form X-15AJ-1 and Form X-15AJ-2.
    Rule 15Aj-1 requires a securities association to promptly notify 
the Commission on Form X-15AJ-1 of any change which renders inaccurate 
any information contained or incorporated in the registration statement 
or in any amendment or supplement thereto. Rule 15Aj-1 also requires a 
securities association to file each year with the Commission an annual 
consolidated supplement on Form X-15AJ-2.
    There is presently only one registered securities association that 
is required to comply with Rule 15Aj-1. The number of hours necessary 
to comply with the rule by filing an amendment is approximately one-
half hour per response. The average number of hours necessary to file 
the annual supplement is three reporting hours. The average cost per 
response for Rule 15Aj-1 is approximately $7. The average cost of 
annual supplements pursuant to Rule 15Aj-1 is approximately $45.
    Rule 15c2-11 requires broker-dealers to collect information 
regarding issuers prior to initiating or resuming publication of 
quotations of the issuer's securities. The Commission estimates that 
142 respondents collect information annually under Rule 15c2-11 and 
that approximately 13,580 hours would be required annually for these 
collections. The Commission estimates that the annual cost to comply 
with Rule 15c2-11 is $271,600 ($20 per hour times 13,580 hours).
    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.
    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,

[[Page 434]]

Office of Information Technology, Securities and Exchange Commission, 
450 Fifth Street, NW., Washington, DC 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, DC 20503.

    Dated: December 19, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-22 Filed 1-2-97; 8:45 am]
BILLING CODE 8010-01-M