[Federal Register Volume 76, Number 108 (Monday, June 6, 2011)]
[Notices]
[Page 32381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-13856]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

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

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 a request for approval of extension of the previously approved 
collection of information provided for in Rule 15c2-11, (17 CFR 
240.15c2-11), under the Securities Exchange Act of 1934 (15 U.S.C. 78a 
et seq.).
    On September 13, 1971, effective December 13, 1971 (see 36 FR 
18641, September 18, 1971), the Commission adopted Rule 15c2-11 (Rule) 
under the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) 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.
    Based on information provided by Financial Industry Regulatory 
Authority, Inc. (FINRA), in the 2010 calendar year, FINRA received 
approximately 1,798 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. We estimate that (i) 
41% of the covered OTC securities were issued by reporting issuers, 
while the other 59% were issued by non-reporting issuers, and (ii) it 
will take a broker-dealer about 4 hours to review, record and retain 
the information pertaining to a reporting issuer, and about 8 hours to 
review, record and retain the information pertaining to a non-reporting 
issuer.
    We therefore estimate that broker-dealers who initiate or resume 
publication of quotations for covered OTC securities of reporting 
issuers will require 2,949 hours (1,798 x 41% x 4) to review, record 
and retain the information required by the Rule. We estimate that 
broker-dealers who initiate or resume publication of quotations for 
covered OTC securities of non-reporting issuers will require 8,487 
hours (1,798 x 59% x 8) to review, record and retain the information 
required by the Rule. Thus, we estimate the total annual burden hours 
for broker-dealers to initiate or resume publication of quotations of 
covered OTC securities to be 11,436 hours (2,949 + 8,487). The 
Commission believes that these 11,436 hours would be borne by staff 
working at a rate of $40 per hour.\1\
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    \1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2007 for 
General Clerk national hourly rate.
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    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 must 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 FINRA for review and approval is 
currently not available to the public from FINRA.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid Office of Management and Budget (OMB) control number. Background 
documentation for this information collection may be viewed at the 
following link, http://www.reginfo.gov. 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) Thomas 
Bayer, Director/Chief Information Officer, Securities and Exchange 
Commission, c/o Remi Pavlik-Simon, 6432 General Green Way, Alexandria, 
VA 22312 or send an e-mail to: [email protected] . Comments must be 
submitted to OMB within 30 days of this notice.

    Dated: May 31, 2011.
Cathy H. Ahn,
Deputy Secretary.
[FR Doc. 2011-13856 Filed 6-3-11; 8:45 am]
BILLING CODE 8011-01-P