
[Federal Register: August 19, 2009 (Volume 74, Number 159)]
[Notices]               
[Page 41949]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr19au09-97]                         

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

 
Submission for OMB Review; 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 17a-11, OMB Control No. 3235-0085, SEC File No. 270-
94.

    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 approval of extension of the existing collection of 
information provided for in the following rule: Rule 17a-11 (17 CFR 
240.17a-11) under the Securities Exchange Act of 1934 (15 U.S.C. 78a et 
seq.) (``Exchange Act'').
    In response to an operational crisis in the securities industry 
between 1967 and 1970, the Commission adopted Rule 17a-11 under the 
Exchange Act on July 11, 1971. Rule 17a-11 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 2008, the 
Commission received 400 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 400 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 should be directed to: (i) 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 sending an e-mail to: shagufta_
ahmed@omb.eop.gov; and (ii) Charles Boucher, Director/Chief Information 
Officer, Securities and Exchange Commission, c/o Shirley Martinson, 
6432 General Green Way, Alexandria, VA 22312 or send an e-mail to PRA_
Mailbox@sec.gov. Comments must be submitted within 30 days of this 
notice.

     Dated: August 10, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-19896 Filed 8-18-09; 8:45 am]

BILLING CODE 8010-01-P
