[Federal Register Volume 89, Number 72 (Friday, April 12, 2024)]
[Notices]
[Pages 25905-25906]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07807]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-429, OMB Control No. 3235-0480]


Submission for OMB Review; Comment Request; Extension: Rule 9b-1

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE, Washington, DC 
20549-2736

    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'') 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 9b-1 
(17 CFR 240.9b-1), under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.).
    Rule 9b-1 (17 CFR 240.9b-1) sets forth the categories of 
information required to be disclosed in an options disclosure document 
(``ODD'') and requires the options markets to file an ODD with the 
Commission 60 days prior to the date it is distributed to investors. In 
addition, Rule 9b-1 provides that the ODD must be amended if the 
information in the document becomes materially inaccurate or incomplete 
and that amendments must be filed with the Commission 30 days prior to 
the distribution to customers. Finally, Rule 9b-1 requires a broker-
dealer to furnish to each customer an ODD and any amendments prior to 
accepting an order to purchase or sell an option on behalf of that 
customer or when approving a customer's account for options trading.

[[Page 25906]]

    There are 17 options markets \1\ that must comply with Rule 9b-1. 
These respondents work together to prepare a single ODD covering 
options traded on each market, as well as amendments to the ODD. These 
respondents file approximately 3 amendments per year. The staff 
calculates that the preparation and filing of amendments should take no 
more than eight hours per options market. Thus, the total time burden 
for options markets per year is approximately 408 hours (17 options 
markets x 8 hours per amendment x 3 amendments per year). The estimated 
cost for an in-house attorney is $483 per hour,\2\ resulting in a total 
internal cost of compliance for these respondents of approximately 
$197,064 per year (408 hours at $483 per hour).
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    \1\ The seventeen options markets are as follows: BOX Exchange 
LLC, Cboe BZX Exchange, Inc., Cboe C2 Exchange, Inc., Cboe EDGX 
Exchange, Inc., Cboe Exchange, Inc., MEMX, LLC, Miami International 
Securities Exchange LLC, MIAX Emerald, LLC, MIAX PEARL, LLC, Nasdaq 
BX, Inc., Nasdaq GEMX, LLC, Nasdaq ISE, LLC, Nasdaq MRX, LLC, Nasdaq 
PHLX LLC, the Nasdaq Options Market (NOM), NYSE Arca, Inc., and NYSE 
American LLC.
    \2\ SIFMA did its last annual survey in 2013 and will not resume 
the survey process. Accordingly, the $483 figure is based on the 
2013 figure ($380) adjusted by the inflation rate calculated using 
the Bureau of Labor Statistics' CPI Inflation Calculator. The $380 
per hour figure for an Attorney is from SIFMA's Management & 
Professional Earnings in the Securities Industry 2013, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 5.35 to account for bonuses, firm size, employee 
benefits and overhead.
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    In addition, approximately 955 broker-dealers \3\ must comply with 
Rule 9b-1. Each of these respondents will process an average of 3 new 
customers for options each week and, therefore, will have to furnish 
approximately 156 ODDs per year. The postal mailing or electronic 
delivery of the ODD takes respondents no more than 30 seconds to 
complete for an annual compliance burden for each of these respondents 
of approximately 78 minutes or 1.3 hours. Thus, the total time burden 
per year for broker-dealers is approximately 1,242 hours (955 broker-
dealers x 1.3 hours). The estimated cost for a general clerk of a 
broker-dealer is $81 per hour,\4\ resulting in a total internal cost of 
compliance for these respondents of approximately $100,602 per year 
(1,242 hours at $81 per hour).
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    \3\ The estimate of 955 broker-dealers required to comply with 
Rule 9b-1 is derived from Item 12 of the Form BD (OMB Control No. 
3235-0012). This estimate may be high as it includes broker-dealers 
that engage in only a proprietary business, and as a result are not 
required to deliver an ODD, as well as those broker-dealers subject 
to Rule 9b-1.
    \4\ The $81 figure is based on the 2013 figure ($57) adjusted 
for inflation. See supra note 2. As noted above, SIFMA did its last 
annual survey in 2013 and will not resume the survey process. 
Accordingly, the $81 figure is based on the 2013 figure ($57) 
adjusted for inflation. The $57 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-hour work-year 
and multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead. The staff believes that the ODD would be 
mailed or electronically delivered to customers by a general clerk 
of the broker-dealer or some other equivalent position.
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    The total time burden for all respondents under this rule (both 
options markets and broker-dealers) is approximately 1,650 hours per 
year (408 + 1,242), and the total internal cost of compliance is 
approximately $297,666 per year ($197,064 + $100,602).
    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. Find this 
particular information collection by selecting ``Currently under 30-day 
Review--Open for Public Comments'' or by using the search function. 
Written comments and recommendations for the proposed information 
collection should be sent by May 13, 2024 to (i) www.reginfo.gov/public/do/PRAMain and (ii) David Bottom, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o John Pezzullo, 100 F 
Street NE, Washington, DC 20549, or by sending an email to: 
[email protected].

    Dated: April 9, 2024.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2024-07807 Filed 4-11-24; 8:45 am]
BILLING CODE 8011-01-P