[Federal Register Volume 68, Number 58 (Wednesday, March 26, 2003)]
[Notices]
[Page 14716]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-7223]


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SECURITIES AND EXCHANGE COMMISSION


Request Under Review

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.
Extension: Rule 9b-1; SEC File No. 270-429; OMB Control No. 3235-0480. 
Rule 15c2-7; SEC File No. 270-420; OMB Control No. 3235-0479.

    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 collections of 
information discussed below.

Rule 9b-1 Options Disclosure Document

    Rule 9b-1 (17 CFR 240.9b-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 an 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 at $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 at $10).
    The total compliance burden for all respondents under this rule 
(both options markets and broker-dealers) is 2640 hours per year (40 + 
2,600), and total compliance costs of $30,000 ($4,000 + $26,000).

Rule 15c2-7 Identification of Quotations

    Rule 15c2-7 (17 CFR 240.15c2-7) enumerates the requirements with 
which brokers and dealers must comply when submitting a quotation for a 
security (other than a municipal security) to an inter-dealer quotation 
system.
    It is estimated that there are 8,500 brokers and dealers. Industry 
personnel estimate that approximately 900 notices are filed pursuant to 
Rule 15c2-7 annually. Based on industry estimates that respondents 
complying with Rule 15c2-7 spend 30 seconds to add notice of an 
arrangement and 1 minute to delete notice of an arrangement, the staff 
estimates that, on an annual basis, respondents spend a total of 11.25 
hours to comply with Rule 15c2-7, based upon past submissions. The 
average cost per hour is approximately $35. Therefore, the total cost 
of compliance for brokers and dealers is approximately $393.75
    The retention period for the recordkeeping requirement under Rule 
15c2-7 is three years following the date a quotation is submitted. The 
recordkeeping requirement under this Rule is mandatory to assist the 
Commission with monitoring brokers and dealers who submit quotations to 
an inter-dealer quotation system. This rule does not involve the 
collection of confidential information.
    Please note that 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.
    Written comments regarding the above information should be directed 
to the following persons: (i) Desk Officer for the Securities and 
Exchange Commission, Office of Information and Regulatory Affairs, 
Office of Management and Budget, Room 10102, New Executive Office 
Building, Washington, D.C. 20503; and (ii) Kenneth A. Fogash, Acting 
Associate Executive Director/CIO, Office of Information Technology, 
Securities and Exchange Commission, 450 Fifth Street, NW, Washington, 
DC 20549. Comments must be submitted to OMB within 30 days of this 
notice.

    Dated: March 19, 2003.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 03-7223 Filed 3-25-03; 8:45 am]
BILLING CODE 8010-01-P