

[Federal Register: September 25, 2006 (Volume 71, Number 185)]
[Notices]               
[Page 55812]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr25se06-53]                         

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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 Filings and Information Services, Washington, DC 
20549.

Extension:
    Rule 17a-11 SEC File No. 270-94 OMB Control No. 3235-0085

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget a request for an extension of the previously approved 
collection of information discussed below.
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Securities and Exchange Commission 
(``Commission'') adopted Rule 17a-11 (17 CFR 240.17a-11) under the 
Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.) (``Exchange 
Act'') on July 11, 1971. The Rule requires broker-dealers that are 
experiencing financial or operational difficulties to provide notice to 
the Commission, the broker-dealer's designated examining authority 
(``DEA''), and the Commodity Futures Trading Commission (``CFTC'') if 
the broker-dealer is registered with the CFTC as a futures commission 
merchant. Rule 17a-11 is an integral part of the Commission's financial 
responsibility program which enables the Commission, a broker-dealer's 
DEA, and the CFTC to increase surveillance of a broker-dealer 
experiencing difficulties and to obtain any additional information 
necessary to gauge the broker-dealer's financial or operational 
condition.
    Rule 17a-11 also requires over-the-counter (``OTC'') derivatives 
dealers and broker-dealers that are permitted to compute net capital 
pursuant to Appendix E to Exchange Act Rule 15c3-1 to notify the 
Commission when their tentative net capital drops below certain levels. 
OTC derivatives dealers must also provide notice to the Commission of 
backtesting exceptions identified pursuant to Appendix F of Rule 15c3-1 
(17 CFR 240.15c3-1f).
    Compliance with the Rule is mandatory. The Commission will 
generally not publish or make available to any person notice or reports 
received pursuant to Rule 17a-11. The Commission believes that 
information obtained under Rule 17a-11 relates to a condition report 
prepared for the use of the Commission, other Federal governmental 
authorities, and securities industry self-regulatory organizations 
responsible for the regulation or supervision of financial 
institutions.
    Only broker-dealers whose capital declines below certain specified 
levels or who are otherwise experiencing financial or operational 
problems have a reporting burden under Rule 17a-11. In 2005, the 
Commission received approximately 600 notices under this Rule. The 
Commission did not receive any Rule 17a-11 notices from OTC derivatives 
dealers or broker-dealers that are permitted to compute net capital 
pursuant to Appendix E to Exchange Act Rule 15c3-1.
    Each broker-dealer reporting pursuant to Rule 17a-11 will spend 
approximately one hour preparing and transmitting the notice required 
by the Rule. Accordingly, the total estimated annualized burden under 
Rule 17a-11 is 600 hours.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information unless it displays a 
currently valid control number.
    Comments regarding the estimated burden hours should be directed 
to: (i) The 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 e-mail to David_Rostker@omb.eop.gov; and (ii) R. Corey Booth, 
Director/Chief Information Officer, Securities and Exchange Commission, 
c/o Shirley Martinson, 6432 General Green Way, Alexandria, VA 22312, or 
by e-mail to PRA_Mailbox@sec.gov. Comments must be submitted to the 
Office of Management and Budget within 30 days of this notice.

    Dated: September 18, 2006.
Nancy M. Morris,
Secretary.
[FR Doc. 06-8137 Filed 9-22-06; 8:45 am]

BILLING CODE 8010-01-P
