[Federal Register Volume 85, Number 65 (Friday, April 3, 2020)]
[Notices]
[Pages 19050-19051]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-07022]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-196, OMB Control No. 3235-0202]


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 15c2-11

    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'') is soliciting comments on the 
existing 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''). The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Rule 15c2-11 under the Exchange Act regulates the initiation or 
resumption of quotations in a quotation medium by a broker-dealer for 
over-the-counter (``OTC'') securities. The Rule is intended to prevent 
broker-dealers from initiating or resuming quotations for OTC 
securities that may facilitate a fraudulent or manipulative scheme. 
Subject to certain exceptions, the Rule prohibits broker-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. With respect to the 
securities of certain private issuers, a broker-dealer must make such 
information reasonably available upon request to any person expressing 
an interest in a proposed transaction in the security with such broker 
or dealer.
    Based on information provided by the Financial Industry Regulatory 
Authority, Inc. (``FINRA''), we understand that in the 2019 calendar 
year, approximately 34 broker-dealers completed information reviews 
pursuant to the Rule for 384 securities--87 concerning securities of 
reporting issuers, and 297 concerning securities of non-reporting 
issuers. The collection of information that is submitted to FINRA for 
review and approval is currently not available to the public from 
FINRA.
    We estimate that it will take a broker-dealer 4 hours to review, 
record and retain the information pertaining to a reporting issuer 
(approximately 3 hours relating to recordkeeping and one hour relating 
to third-party disclosure), and 8 hours to review, record and retain 
the information pertaining to a non-reporting issuer (approximately 7 
hours relating to recordkeeping and one hour relating to third-party 
disclosure). We therefore estimate that the total time burden for 
recordkeeping associated with the information review requirement of the 
Rule will be 2,340 hours [for (87 reviews for reporting issuers x 3 
hours) + (297 reviews for non-reporting issuers x 7 hours)]; and the 
total time burden for third-party disclosure associated with the 
information review requirement of the Rule will be 384 hours [for (87 
reviews for reporting issuers x 1 hour) + (297 reviews for non-
reporting issuers x 1 hour)]. Thus, we estimate the industrywide total 
annual burden hours associated with the information review requirement 
under the Rule to be 2,724 hours (2,340 hours for recordkeeping + 384 
hours for third-party disclosure). The Commission believes that the 
internal compliance costs for these 2,724 hours would be borne by 
internal staff working at a rate of $62 per hour.\1\
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    \1\ The $62 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-hourwork-year and inflation, 
and multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead.
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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 
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.

[[Page 19051]]

    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: David Bottom, Director/
Chief Information Officer, Securities and Exchange Commission, c/o 
Cynthia Roscoe, 100 F Street NE, Washington, DC 20549, or send an email 
to: [email protected].

    Dated: March 31, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-07022 Filed 4-2-20; 8:45 am]
BILLING CODE 8011-01-P