[Federal Register Volume 79, Number 213 (Tuesday, November 4, 2014)]
[Notices]
[Page 65435]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-26128]


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SECURITIES AND EXCHANGE COMMISSION


Proposed Collection; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

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

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') is soliciting comments on the existing 
collection of information provided for in Rule 9b-1, Options Disclosure 
Document (17 CFR 240.9b-1), under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.). The Commission plans to submit this existing 
collection of information to the Office of Management and Budget 
(``OMB'') for extension and approval.
    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 12 options markets that must comply with Rule 9b-1. These 
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 3 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 time burden 
for options markets per year is 288 hours (12 options markets x 8 hours 
per amendment x 3 amendments). The estimated cost for an in-house 
attorney is $380 per hour,\1\ resulting in a total internal cost of 
compliance for these respondents of $109,440 per year (288 hours at 
$380 per hour).
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    \1\ The $380 per hour figure for an Attorney is from SIFMA's 
Management & Professional Earnings in the Securities Industry 2013, 
modified by 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.
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    In addition, approximately 1,500 broker-dealers must comply with 
Rule 9b-1. Each of these respondents will process an average of 3 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 time burden for each of these respondents of 78 
minutes or 1.3 hours. Thus, the total time burden per year for broker-
dealers is 1,950 hours (1,500 broker-dealers x 1.3 hours). The 
estimated cost for a general clerk of a broker-dealer is $57 per 
hour,\2\ resulting in a total internal cost of compliance for these 
respondents of $111,150 per year (1,950 hours at $57 per hour).
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    \2\ The $57 per hour figure for a General Clerk is from SIFMA's 
Office Salaries in the Securities Industry 2013, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 2.93 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.
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    The total time burden for all respondents under this rule (both 
options markets and broker-dealers) is 2,238 hours per year (288 + 
1,950), and the total internal cost of compliance is $220,590 ($109,440 
+ $111,150).
    Written comments are invited on: (a) Whether the proposed 
collection of information is necessary for the proper performance of 
the functions of the Commission, including whether the information 
shall have practical utility; (b) the accuracy of the Commission's 
estimates of the burden of the proposed 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.
    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.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or send an email 
to: [email protected].

    Dated: October 29, 2014.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2014-26128 Filed 11-3-14; 8:45 am]
BILLING CODE 8011-01-P