[Federal Register Volume 84, Number 201 (Thursday, October 17, 2019)]
[Notices]
[Pages 55600-55601]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22580]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-601, OMB Control No. 3235-0673]


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.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (``PRA'') (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''),

[[Page 55601]]

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 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 570 respondents. To comply with Rule 15c3-5, these 
respondents will spend a total of approximately 91,200 hours per year 
(160 hours per broker-dealer x 570 broker-dealers = 91,200 hours). At 
an average internal cost per burden hour of approximately $358.51, the 
resultant total related internal cost of compliance for these 
respondents is $32,696,340 per year (91,200 burden hours multiplied by 
approximately $358.51/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 $11,685,000 
in the aggregate ($20,500 per broker-dealer x 570 brokers and dealers = 
$11,685,000).
    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 website: 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) Charles Riddle, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Candace Kenner, 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: October 10, 2019.
Jill M. Peterson,
Assistant Secretary.
[FR Doc. 2019-22580 Filed 10-16-19; 8:45 am]
 BILLING CODE 8011-01-P