[Federal Register Volume 70, Number 121 (Friday, June 24, 2005)]
[Notices]
[Page 36666]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E5-3287]


-----------------------------------------------------------------------

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.

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'') has submitted to the Office of Management and Budget 
request for extension of the previously approved collection of 
information discussed below.
    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.
---------------------------------------------------------------------------

    \1\ 17 CFR 240.15c2-11.
    \2\ 15 U.S.C. 78a et seq.
---------------------------------------------------------------------------

    According to NASDR estimates, we also 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).
    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. The 
broker-dealer just also make the information reasonably available upon 
request to any person expressing an interest in a proposed transaction 
in the security with such broker or dealer. The collection of 
information that is submitted to the NASDR for review and approval is 
currently not available to the public from the NASDR.
    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 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.
    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, DC 20503, or by sending an e-mail to [email protected]; and (ii) R. Corey Booth, Director/Chief 
Information Officer, Office of Information Technology, Securities and 
Exchange Commission, 100 F Street, NE., Washington, DC 20549. Comments 
must be submitted to OMB within 30 days of this notice.

    Dated: June 16, 2005.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. E5-3287 Filed 6-23-05; 8:45 am]
BILLING CODE 8010-01-P