
[Federal Register: December 7, 2009 (Volume 74, Number 233)]
[Notices]               
[Page 64101-64102]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr07de09-929]                         

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SECURITIES AND EXCHANGE COMMISSION

[Rule 17a-5; SEC File No. 270-155; OMB Control No. 3235-0123]

 
Proposed Extension of 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.

    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 publishing the following summary of a 
collection of information for public comment.
    Rule 17a-5 (17 CFR 240.17a-5) (the Rule) is the basic financial 
reporting rule for brokers and dealers.\1\ The Rule requires the filing 
of Form X-17A-5 (17 CFR 249.617), the Financial and Operational 
Combined Uniform Single Report (``FOCUS Report''), which was the result 
of years of study and comments by representatives of the securities 
industry through advisory committees and through the normal rule 
proposal methods. The FOCUS Report was designed to eliminate the

[[Page 64102]]

overlapping regulatory reports required by various self-regulatory 
organizations and the Commission and to reduce reporting burdens as 
much as possible. The Rule also requires the filing of an annual 
audited report of financial statements.
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    \1\ Rule 17a-5(c) requires a broker or dealer to furnish certain 
of its financial information to customers and is subject to a 
separate PRA filing (OMB Control Number 3235-0199).
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    The FOCUS Report consists of: (1) Part I, which is a monthly report 
that must be filed by brokers or dealers that clear transactions or 
carry customer securities; (2) one of three alternative quarterly 
reports: Part II, which must be filed by brokers or dealers that clear 
transactions or carry customer securities; Part IIA, which must be 
filed by brokers or dealers that do not clear transactions or carry 
customer securities; and Part IIB, which must be filed by specialized 
broker-dealers registered with the Commission as OTC derivatives 
dealers; \2\ (3) supplemental schedules, which must be filed annually; 
and (4) a facing page, which must be filed with the annual audited 
report of financial statements. Under the Rule, a broker or dealer that 
computes certain of its capital charges in accordance with Appendix E 
to Exchange Act Rule 15c3-1(17 CFR 240.15c3-1) must file additional 
monthly, quarterly, and annual reports with the Commission.
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    \2\ Part IIB of Form X-17A-5 must be filed by OTC derivatives 
dealers under Exchange Act Rule 17a-12 and is subject to a separate 
PRA filing (OMB Control Number 3235-0498).
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    The variation in the size and complexity of brokers and dealers 
subject to Rule 17a-5 and the differences in the FOCUS Report forms 
that must be filed under the Rule make it difficult to calculate the 
cost of compliance. However, we estimate that, on average, each report 
will require approximately 12 hours. At year-end 2008, the Commission 
estimates that there were approximately 5,190 brokers or dealers, and 
that of those firms there were approximately 530 brokers or dealers 
that clear transactions or carry customer securities. In addition, 
approximately 220 firms filed annual reports. The Commission therefore 
estimates that approximately 530 firms filed monthly reports, 
approximately 4,400 firms filed quarterly reports, and approximately 
220 firms filed annual reports. In addition, approximately 5,190 firms 
filed annual audited reports. As a result, there were approximately 
29,530 total annual responses ((530 x 12) + (4,400 x 4) + 220 + 5,190 = 
29,370. This results in an estimated annual burden of 354,360 hours 
(29,530 annual responses x 12 hours = 354,360).
    In addition, we estimate that approximately 11 brokers or dealers 
will elect to use Appendix E to Rule 15c3-1 to compute certain of their 
capital charges (as of October 2009, seven brokers or dealers have 
elected to use Appendix E). We estimate that the average amount of time 
necessary to prepare and file the additional monthly reports that must 
be filed by these firms is about 4 hours per month, or approximately 48 
hours per year; the average amount of time necessary to prepare and 
file the additional quarterly reports is about 8 hours per quarter, or 
approximately 32 hours per year; and the average amount of time 
necessary to prepare and file the additional supplemental reports with 
the annual audit required is approximately 40 hours per year. 
Consequently, we estimate that the total additional annual burden for 
these 11 brokers or dealers is approximately 1,320 hours ((48 + 32 + 
40) x 11 = 1,320).
    The Commission therefore estimates that the total annual burden 
under Rule 17a-5 is approximately 353,800 hours (352,440 + 1,320 = 
353,760, rounded to 353,800).
    Written comments are invited on: (a) Whether the proposed 
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 Charles Boucher, 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.

    Dated: November 30, 2009.
Florence E. Harmon,
Deputy Secretary.
[FR Doc. E9-29045 Filed 12-4-09; 8:45 am]

BILLING CODE 8011-01-P
