[Federal Register Volume 74, Number 15 (Monday, January 26, 2009)]
[Notices]
[Pages 4484-4485]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-1458]


=======================================================================
-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    Rule 9b-1; OMB Control No. 3235-0480 ; SEC File No. 270-429.

    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 
(``OMB'') a request for extension of the existing collection of 
information provided for in the following rule: Rule 9b-1 (17 CFR 
240.9b-1) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
seq.).
    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 six options markets that must comply with Rule 9b-1. 
These six respondents work together to prepare a single ODD covering 
options traded on each market, as well as amendments to the ODD. These 
respondents file approximately three amendments per year. The staff 
calculates that the preparation and filing of amendments should take no 
more than eight hours per options market. Thus, the total compliance 
burden for options markets per year is 144 hours (6 options markets x 8 
hours per amendment x 3 amendments). The estimated cost for an in-house 
attorney is $295 per hour,\1\ resulting in a total cost of compliance 
for these respondents of $42,480 per year (144 hours @ $295).
---------------------------------------------------------------------------

    \1\ The $295/hour figure for an attorney is from SIFMA's 
Management & Professional Earnings in the Securities Industry 2007, 
modified by the Commission staff to account for an 1800-hour work-
year and multiplied by 5.35 to account for bonuses, firm size, 
employee benefits and overhead.
---------------------------------------------------------------------------

    In addition, approximately 1,500 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 1,950 hours (1,500 broker-dealers x 1.3 hours). The 
estimated cost for a general clerk of a broker-dealer is $40 per 
hour,\2\ resulting in a total cost of compliance for these respondents 
of $78,000 per year (1,950 hours @ $40).
---------------------------------------------------------------------------

    \2\ The $40/hour figure for a general clerk is from SIFMA's 
Office Salaries in the Securities Industry 2007, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 2.92 to account for bonuses, firm size, employee 
benefits and overhead. The staff believes that the ODD would be 
mailed or electronically delivered to customers by a general clerk 
of the broker-dealer or some other equivalent position.
---------------------------------------------------------------------------

    The total compliance burden for all respondents under this rule 
(both options markets and broker-dealers) is 2,094 hours per year (144 
+ 1,950), and total compliance costs of $120,480 ($42,480 + $78,000).
    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.
    Comments should be directed to: (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) Charles Boucher, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Shirley

[[Page 4485]]

Martinson, 6432 General Green Way, Alexandria, VA 22312 or send an e-
mail to [email protected]. Comments must be submitted within 30 days 
of this notice.

     Dated: January 14, 2009.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E9-1458 Filed 1-23-09; 8:45 am]
BILLING CODE 8011-01-P