[Federal Register Volume 81, Number 225 (Tuesday, November 22, 2016)]
[Notices]
[Pages 83915-83916]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-28028]


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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 FOIA Services, 100 F Street NE., Washington, DC 
20549-2736

Extension:
    Rule 15c3-5, SEC File No. 270-601, OMB Control No. 3235-0673

    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 
15c3-5 (17 CFR 240.15c3-5) under the Securities Exchange Act of 1934 
(15 U.S.C. 78a et seq.) (``Exchange Act'').
    Rule 15c3-5 under the Exchange Act requires brokers or dealers with 
access to trading directly on an exchange or alternative trading system 
(``ATS''), including those providing sponsored or direct market access 
to customers or other persons, to implement risk management controls 
and supervisory procedures reasonably designed to manage the financial, 
regulatory, and other risks of this business activity.
    The rule requires brokers or dealers to establish, document, and 
maintain certain risk management controls and supervisory procedures as 
well as regularly review such controls and procedures, and document the 
review, and remediate issues discovered to

[[Page 83916]]

assure overall effectiveness of such controls and procedures. Each such 
broker or dealer is required to preserve a copy of its supervisory 
procedures and a written description of its risk management controls as 
part of its books and records in a manner consistent with Rule 17a-
4(e)(7) under the Exchange Act. Such regular review is required to be 
conducted in accordance with written procedures and is required to be 
documented. The broker or dealer is required to preserve a copy of such 
written procedures, and documentation of each such review, as part of 
its books and records in a manner consistent with Rule 17a-4(e)(7) 
under the Exchange Act, and Rule 17a-4(b) under the Exchange Act, 
respectively.
    In addition, the Chief Executive Officer (or equivalent officer) is 
required to certify annually that the broker or dealer's risk 
management controls and supervisory procedures comply with the rule, 
and that the broker-dealer conducted such review. Such certifications 
are required to be preserved by the broker or dealer as part of its 
books and records in a manner consistent with Rule 17a-4(b) under the 
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
    Respondents consist of broker-dealers with access to trading 
directly on an exchange or ATS. The Commission estimates that there are 
currently 640 respondents. To comply with Rule 15c3-5, these 
respondents will spend a total of approximately 102,400 hours per year 
(160 hours per broker-dealer x 640 broker-dealers = 102,400 hours). At 
an average internal cost per burden hour of approximately $339.09, the 
resultant total related internal cost of compliance for these 
respondents is $34,722,560 per year (102,400 burden hours multiplied by 
approximately $339.09/hour). In addition, for hardware and software 
expenses, the Commission estimates that the average annual external 
cost would be approximately $20,500 per broker-dealer, or $13,120,000 
in the aggregate ($20,500 per broker-dealer x 640 brokers and dealers = 
$13,120,000).
    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) Pamela Dyson, Director/Chief 
Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: [email protected]. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: November 16, 2016.
Brent J. Fields,
Secretary.
[FR Doc. 2016-28028 Filed 11-21-16; 8:45 am]
 BILLING CODE 8011-01-P