

[Federal Register: September 12, 2007 (Volume 72, Number 176)]
[Notices]               
[Page 52181-52182]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12se07-125]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Request for Public Comment

Upon Written Request, Copies Available From: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.

Extension:
    Rule 8c-1; SEC File No. 270-455; OMB Control No. 3235-0514.

    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'') is soliciting comments on the collection of 
information summarized below. The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget for approval.
    Rule 8c-1 (17 CFR 240.8c-1) under the Securities Exchange Act of 
1934 (15 U.S.C. 78a et seq.) generally prohibits a broker-dealer from 
using its customers' securities as collateral to finance its own 
trading, speculating, or underwriting transactions. More specifically, 
the rule states three main principles: first, that a broker-dealer is 
prohibited from commingling the securities of different customers as 
collateral for a loan without the consent of each customer; second, 
that a broker-dealer cannot commingle customers' securities with its 
own securities under the same pledge; and third, that a broker-dealer 
can only pledge its customers' securities to the extent that customers 
are in debt to the broker-dealer.\1\ Pursuant to Rule 8c-1, respondents 
must collect information necessary to prevent the hypothecation of 
customer accounts in contravention of the rule, issue and retain copies 
of notices to the pledgee of hypothecation of customer accounts in 
accordance with the rule, and collect written consents from customers 
in accordance with the rule. The information is necessary to ensure 
compliance with the rule and to advise customers of the rule's 
protections.
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    \1\ See Securities Exchange Act Release No. 2690 (November 15, 
1940); Securities Exchange Act Release No. 9428 (December 29, 1971).
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    There are approximately 142 respondents per year (i.e., broker-
dealers that conducted business with the public, filed Part II of the 
FOCUS Report, did not claim an exemption from the Reserve Formula 
computation, and reported that they had a bank loan during at least one 
quarter of the current year) that require an aggregate total of 3,195 
hours to comply with the rule. Each of these approximately 142 
registered broker-dealers makes an estimated 45 annual responses, for 
an aggregate total of 6,390 responses per year. Each response takes 
approximately 0.5 hours to complete. Thus, the total compliance burden 
per year is 3,195 burden hours. The approximate cost per hour is $56, 
resulting in a total cost of compliance for the respondents of

[[Page 52182]]

    Written comments are invited on: (a) Whether the collection of 
information is necessary for the proper performance of the functions of 
the agency, including whether the information shall have practical 
utility; (b) the accuracy of the agency's estimate of the burden of the 
proposed collection of information; (c) ways to enhance the quality, 
utility, and clarity of the information to be 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.
    Comments should be directed to: R. Corey Booth, Director/Chief 
Information Officer, Securities and Exchange Commission, C/O Shirley 
Martinson, 6432 General Green Way, Alexandria, Virginia 22312 or send 
an e-mail to: PRA_Mailbox@sec.gov. Comments must be submitted within 
60 days of this notice.

    Dated: September 5, 2007.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E7-17941 Filed 9-11-07; 8:45 am]

BILLING CODE 8010-01-P
