[Federal Register Volume 80, Number 177 (Monday, September 14, 2015)]
[Notices]
[Page 55158]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-22976]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-442, OMB Control No. 3235-0498]


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 17a-12/Form X-17A-5 Part IIB.
    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 17a-12 (17 CFR 240.17a-
12) and Part IIB of Form X-17A-5 (17 CFR 249.617) 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 17a-12 is the reporting rule tailored specifically for over-
the-counter (``OTC'') derivatives dealers registered with the 
Commission, and Part IIB of Form X-17A-5, the Financial and Operational 
Combined Uniform Single (``FOCUS'') Report, is the basic document for 
reporting the financial and operational condition of OTC derivatives 
dealers. Rule 17a-12 requires registered OTC derivatives dealers to 
file Part IIB of the FOCUS Report quarterly. Rule 17a-12 also requires 
that OTC derivatives dealers file audited financial statements 
annually.
    There are currently four registered OTC derivatives dealers. The 
staff expects that one additional firm will register as an OTC 
derivatives dealer within the next three years. The staff estimates 
that the average amount of time necessary to prepare and file the 
quarterly reports required by the rule is eighty hours per OTC 
derivatives dealer \1\ and that the average amount of time to prepare 
and file the annual audit report is 100 hours per OTC derivatives 
dealer per year, for a total reporting burden of 180 hours per OTC 
derivatives dealer annually. Thus the staff estimates that the total 
industry-wide reporting burden to comply with the requirements of Rule 
17a-12 is 900 hours per year (180 x 5). Further, the Commission 
estimates that the total internal compliance cost associated with this 
requirement is approximately $255,000 per year.\2\ The average annual 
reporting cost per broker-dealer for an independent public accountant 
to examine the financial statements is approximately $46,300 per 
broker-dealer. Thus, the total industry-wide annual reporting cost is 
approximately $231,500 ($46,300 x 5).
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    \1\ Based upon an average of 4 responses per year and an average 
of 20 hours spent preparing each response.
    \2\ Based on staff experience, an OTC derivatives dealer likely 
would have a Compliance Manager gather the necessary information and 
prepare and file the quarterly reports and annual audit report and 
supporting schedules. According to the Securities Industry and 
Financial Markets Association Report on Management and Professional 
Earnings in the Securities Industry dated October 2013, which 
provides base salary and bonus information for middle-management and 
professional positions within the securities industry, the hourly 
cost of a compliance manager, which the Commission staff has 
modified to account for an 1800-hour work year and multiplied by 
5.35 to account for bonuses, firm size, employee benefits, and 
overhead, is approximately $283/hour. $283/hour times 900 hours = 
$254,700, rounded to $255,000.
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    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 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information to 
be 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: Pamela Dyson, 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: September 8, 2015.
Robert W. Errett,
Deputy Secretary.
[FR Doc. 2015-22976 Filed 9-11-15; 8:45 am]
BILLING CODE 8011-01-P