[Federal Register Volume 62, Number 10 (Wednesday, January 15, 1997)]
[Notices]
[Pages 2197-2198]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-903]


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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

    Existing collection in use without an OMB Number:


[[Page 2198]]


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'') has submitted to the Office of Management 
and Budget a request for approval of extension on the following rule:
    Rule 15c2-1 (17 CFR 240.15c2-1) 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 
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 4,805 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).
    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, N.W., 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: January 6, 1996.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 97-903 Filed 1-14-97; 8:45 am]
BILLING CODE 8010-01-M