[Federal Register Volume 66, Number 14 (Monday, January 22, 2001)]
[Notices]
[Pages 6705-6706]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-1748]


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SECURITIES AND EXCHANGE COMMISSION

[Rule 17a-12; SEC File No. 270-442; OMB Control No. 3235-0498]


Submission for OMB Review; Comment Request

    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 extension of the previously approved 
collection of information discussed below.
     Rule 17a-12, Reporting Requirements for OTC Derivatives 
Dealers
    Rule 17a-12 under the Securities Exchange Act of 1934 requires OTC 
derivatives dealers to file quarterly Financial and Operational 
Combined Uniformed Single Reports (FOCUS) on Form X-17A-5IIB,\1\ the 
basic document for reporting the financial and operational condition of 
OTC

[[Page 6706]]

derivatives dealers. Rule 17a-12 also requires that OTC derivatives 
dealers annually file audited financial statements. The reports 
required under Rule 17a-12 provide the Commission with information used 
to monitor the operations of OTC derivatives dealers and to enforce 
their compliance with the Commission's rules. These reports also enable 
the Commission to review the business activities of OTC derivatives 
dealers and to anticipate, where possible, how these dealers may be 
affected by significant economic events.
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    \1\ Form X-17a-5 [17 C.F.R. 249.617].
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    The staff estimates that that the average amount of time necessary 
to prepare and file the information required by Rule 17a-12 is 180 
hours per OTC derivatives dealer annually, where the OTC derivatives 
dealer spends an average of twenty hours preparing each of four 
quarterly reports, and an additional 100 hours on the annual audit. One 
entity is presently registered as an OTC derivatives dealer, however 
the staff estimates that between five and nine additional OTC 
derivatives dealers may become registered within the next three years. 
Thus the total burden is estimated to be 1,080 hours annually for six 
OTC derivatives dealers.\2\
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    \2\ Or 1,800 hours annually for ten OTC derivatives dealers.
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    The staff believes that financial reporting specialists will 
prepare the FOCUS IIB Reports and supporting Schedules, compliance 
personnel may review the reports to assure compliance with applicable 
rules, and accountants will prepare the audited annual reports. The 
staff estimates that the hourly salary of a financial reporting 
specialist is $72.40 per hour,\3\ the hourly salary of a compliance 
manager is $82.50 per hour,\4\ and the hourly salary of a compliance 
manager is $51.60 per hour.\5\ Based upon these numbers, the total cost 
of compliance for six respondents is $65,950.00 per year.\6\
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    \3\ Per Securities Industry Association (SIA) Management and 
Professional Earnings, Table 011 (Financial Reporting Manager) + 35% 
overhead (based on end-of-year 1998 figures).
    \4\ SIA Management and Professional Earnings, Table 051 
(Compliance Manager) + 35% overhead (based on end-of-year 1998 
figures.)
    \5\ SIA Management and Professional Earnings, Table 003 (Senior 
Accountant) + 35% overhead (based on end-of-year 1998 figures).
    \6\ ((19 hours  x  $72.40  x  4 filings per year) + (1 hour  x  
$82.50 per hour  x  4 filings per year) + (100 hours  x  $51.60  x  
1 filing per year)  x  six OTC derivatives dealers. The total cost 
for ten respondents would be $109,924.00 per year.
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    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid control number.
    General comments regarding the estimated burden hours should be 
directed to the following persons: (i) 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; and (ii) Michael E. Bartell, Associate 
Executive Director, Office of Information Technology, Securities and 
Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549. 
Comments must be submitted to OMB within thirty days of this notice.

    Dated: January 9, 2001.
Jonathan G. Katz,
Secretary.
[FR Doc. 01-1748 Filed 1-19-01; 8:45 am]
BILLING CODE 8010-01-M