
[Federal Register: March 28, 2008 (Volume 73, Number 61)]
[Notices]               
[Page 16732-16733]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28mr08-141]                         

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SECURITIES AND EXCHANGE COMMISSION

 
Proposed Collection; Comment Request

Upon written request, copies available from: U.S. Securities and 
Exchange Commission, Office of Investor Education and Advocacy, 
Washington, DC 20549-0213.
Extension:
    Rule 15c2-11; OMB Control No. 3235-0202; SEC File No. 270-196.

    `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 extension and approval.
     Rule 15c2-11 (17 CFR 240.15c2-11)--Initiation or 
resumption of quotations without specific information
    On September 13, 1971, effective December 13, 1971 (see 36 FR 
18641, September 18, 1971), the Commission adopted Rule 15c2-11 (``Rule 
15c2-11'' or ``Rule'') under the Securities Exchange Act of 1934 (15 
U.S.C. 78a et seq.) to regulate the initiation or resumption of 
quotations in a quotation medium by a broker-dealer for over-the-
counter (``OTC'') securities. The Rule was designed primarily to 
prevent certain manipulative and fraudulent trading schemes that had 
arisen in connection with the distribution and trading of unregistered 
securities issued by shell companies or other companies having 
outstanding but infrequently traded securities. Subject to certain 
exceptions, the Rule prohibits brokers-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.
    Based on information provided by Financial Industry Regulatory 
Authority, Inc. (``FINRA''), in the 2006 calendar year, FINRA received 
approximately 970 applications from broker-dealers to initiate or 
resume publication of covered OTC securities in the OTC Bulletin Board 
and/or the Pink Sheets or other quotation mediums. We estimate that (i) 
80% of the covered OTC securities were issued by reporting issuers, 
while the other 20% were issued by non-reporting issuers, and (ii) it 
will take a broker-dealer about 4 hours to review, record and retain 
the information pertaining to a reporting issuer, and about 8 hours to 
review, record and retain the information pertaining to a non-reporting 
issuer.
    We therefore estimate that broker-dealers who initiate or resume 
publication of quotations for covered OTC securities of reporting 
issuers will require 3,104 hours (970 x 80% x 4) to review, record and 
retain the information required by the Rule. We estimate that broker-
dealers who initiate or resume publication of quotations for covered 
OTC securities of non-reporting issuers will require 1,552 hours (970 x 
20% x 8) to review, record and retain the information required by the 
Rule. Thus, we estimate the total annual burden hours for broker-
dealers to initiate or resume publication of quotations of covered OTC 
securities to be 4,656 hours (3,104 + 1,552). The Commission believes 
that these 4,656

[[Page 16733]]

hours would be borne by staff working at a rate of $40 per hour.\1\
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    \1\ See Appendix C, SIFMA Office Salaries Data--Sept. 2007 for 
General Clerk national hourly rate.
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    Subject to certain exceptions, the Rule prohibits brokers-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. The 
broker-dealer must also make the information reasonably available upon 
request to any person expressing an interest in a proposed transaction 
in the security with such broker or dealer. The collection of 
information that is submitted to FINRA for review and approval is 
currently not available to the public from FINRA.
    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 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: March 24, 2008.
Florence E. Harmon,
Deputy Secretary.
 [FR Doc. E8-6423 Filed 3-27-08; 8:45 am]

BILLING CODE 8011-01-P
