[Federal Register Volume 79, Number 113 (Thursday, June 12, 2014)]
[Notices]
[Pages 33788-33789]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-13701]


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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.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') has submitted to the Office of 
Management and Budget (``OMB'') 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.) (``Exchange Act'').
    Rule 15c2-11 under the Exchange Act regulates the initiation or 
resumption of

[[Page 33789]]

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 2013 calendar year, FINRA received 
approximately 1,009 applications from broker-dealers to initiate or 
resume publication of quotes of covered OTC securities on the OTC 
Bulletin Board and/or OTC Link or other quotation mediums. We estimate 
that (i) 31% of the covered OTC securities were issued by reporting 
issuers, while the other 69% 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 1,236 hours (1,009 x 31% 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 5,600 
hours (1,009 x 69% 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 6,836 hours (1,236 + 5,600). The 
Commission believes that these 6,836 hours would be borne by internal 
staff working at a rate of $53 per hour.\1\
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    \1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2012 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently valid OMB control number.
    The public may view background documentation for this information 
collection at the following Web site, 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 email to: [email protected]; and (ii) Thomas Bayer, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Remi Pavlik-Simon, 100 
F St. NE., Washington, DC 20549; or send an email to: [email protected]. Comments must be submitted within 30 days of this 
notice.

    Dates: June 6, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-13701 Filed 6-11-14; 8:45 am]
BILLING CODE 8011-01-P