[Federal Register Volume 70, Number 71 (Thursday, April 14, 2005)]
[Notices]
[Pages 19792-19793]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-1760]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 15c2-11; SEC File No. 270-196; OMB Control No. 3235-0202.

    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 soliciting comments on the collections 
of information summarized below. The Commission plans to submit these 
existing collections of information to the Office of Management and 
Budget for extension and approval.
    The Commission adopted Rule 15c2-11 \1\ (Rule 15c2-11 or Rule) in 
1971 under the Securities Exchange Act of 1934 \2\ (Exchange Act) to 
regulate the initiation or resumption of quotations in a quotation 
medium by a broker-dealer for over-the-counter (OTC) securities. The 
Rule was designed primarily to prevent certain manipulative and 
fraudulent trading schemes that had arisen in connection with the 
distribution and trading of unregistered securities issued by shell 
companies or other companies having outstanding but infrequently traded 
securities. Subject to certain exceptions, the Rule prohibits brokers-
dealers from publishing a quotation for a security, or submitting a 
quotation for publication, in a quotation medium unless they have 
reviewed specified information concerning the security and the issuer.
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    \1\ 17 CFR 240.15c2-11.
    \2\ 15 U.S.C. 78a et seq.
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    The information required to be reviewed is submitted by the 
respondents to the National Association of Securities Dealers 
Regulation (``NASDR'') on Form 211 for review and approval.
    According to NASDR estimates, we believe that approximately 1,200 
new applications from broker-dealers to initiate or resume publication 
of covered OTC securities in the OTC Bulletin Board and/or the Pink 
Sheets or other quotation mediums were received by the NASDR for the 
2004 calendar year. We estimate that 80% of the covered OTC securities 
were issued by reporting issuers, while the other 20% were issued by 
non-reporting issuers. We believe that it will take a broker-dealer 
about 4 hours to collect, review, record, retain, and supply to the 
NASDR the information pertaining to a reporting issuer, and about 8 
hours to collect, review, record, retain, and supply to the NASDR the 
information pertaining to a non-reporting issuer.
    We therefore estimate that broker-dealers who are the first to 
publish the first quote for a covered OTC security of a reporting 
issuer will require 3,840 hours (1,200 x 80% x 4) to collect, review, 
record, retain, and supply to the NASDR the information required by the 
Rule. We estimate that the broker-dealers who are the first to publish 
the first quote for a covered OTC security of a non-reporting issuer 
will require 1,920 hours (1,200 x 20% x 8) to collect, review, record, 
retain, and supply to the NASDR the information required by the Rule. 
We therefore estimate the total annual burden hours for the first 
broker-dealers to be 5,760 hours (3,840 + 1,920). The Commission 
estimates that the annual cost to comply with Rule 15c2-11 is $115,200 
($20 per hour times 5,760 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 will 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information 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.
    Please direct your written comments to R. Corey Booth, Director/
Chief Information Officer, Securities and Exchange Commission, 450 5th 
Street, NW., Washington, DC 20549.


[[Page 19793]]


    Dated: April 6, 2005.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. E5-1760 Filed 4-13-05; 8:45 am]
BILLING CODE 8010-01-P