[Federal Register Volume 85, Number 111 (Tuesday, June 9, 2020)]
[Notices]
[Page 35357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-12390]
[[Page 35357]]
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SECURITIES AND EXCHANGE COMMISSION
[SEC File No. 270-203, OMB Control No. 3235-0195]
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 17Ab2-1, Form CA-1
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
collection of information provided for in Rule 17Ab2-1 (17 CFR
240.17Ab2-1) and Form CA-1: Registration of Clearing Agencies (17 CFR
249b.200) under the Securities Exchange Act of 1934 (``Exchange Act'')
(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 17Ab2-1 and Form CA-1 require clearing agencies to register
with the Commission and to meet certain requirements with regard to,
among other things, the clearing agency's organization, capacities, and
rules. The information is collected from the clearing agency upon the
initial application for registration on Form CA-1. Thereafter,
information is collected by amendment to the initial Form CA-1 when
changes in circumstances that render certain information on Form CA-1
inaccurate, misleading, or incomplete necessitate modification of the
information previously provided to the Commission.
The Commission uses the information disclosed on Form CA-1 to (i)
determine whether an applicant meets the standards for registration set
forth in Section 17A of the Exchange Act, (ii) enforce compliance with
the Exchange Act's registration requirement, and (iii) provide
information about specific registered clearing agencies for compliance
and investigatory purposes. Without Rule 17Ab2-1, the Commission could
not perform these duties as statutorily required.
The Commission staff estimates that the average Form CA-1 requires
approximately 340 hours to complete and submit for approval, and that
on average, the Commission receives one application each year. The
Commission staff estimates that completion of an initial Form CA-1 will
result in an internal cost of compliance of approximately $132,140 per
year. The Commission staff estimates that it receives one amendment per
year, and that an amendment requires approximately 60 hours of the
exempt or registered clearing agency's staff time. The Commission staff
estimates that amendment of a filed Form CA-1 will result in an
internal cost of compliance of approximately $25,480 per year.
Therefore, the aggregate hour burden is approximately 400 hours per
year (340 + 60) and the aggregate internal cost of compliance is
approximately $157,620 per year ($132,140 + $25,480).
The external costs associated with work on Form CA-1 include fees
charged by outside lawyers and accountants to assist the applicant or
registrant to collect and prepare the information sought by the form
(though such consultations are not required by the Commission). The
Commission staff estimates that these external costs are more likely
when novel questions arise under a new application, rather than under
periodic review and amendment. The staff estimates an annual external
cost of 45 hours of an Attorney's time (estimated at $420 per hour) and
10 hours of a Senior Accountant's time (estimated at $219 per hour) for
preparation of the Form CA-1, resulting in an aggregate external cost
of approximately $21,090 per year (18,900 + 2,190).
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: 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: June 3, 2020.
J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2020-12390 Filed 6-8-20; 8:45 am]
BILLING CODE 8011-01-P