
[Federal Register Volume 78, Number 33 (Tuesday, February 19, 2013)]
[Notices]
[Pages 11701-11702]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-03690]


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SECURITIES AND EXCHANGE COMMISSION

[SEC File No. 270-38, OMB Control No. 3235-0045]


Proposed Collection; Comment Request

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

Extension:
    Rule 19b-4 and Form 19b-4.

    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 existing 
collection of information provided for in Rule 19b-4 (17 CFR 240.19b-
4), under the Securities Exchange Act of 1934 (``Act'') (15 U.S.C. 78a 
et seq.). The Commission plans to submit this existing collection of 
information to the Office of Management and Budget (``OMB'') for 
extension and approval.
    Section 19(b) of the Act (15 U.S.C. 78s(b)) requires each self-
regulatory organization (``SRO'') to file with the Commission copies of 
any proposed rule, or any proposed change in, addition to, or deletion 
from the rules of such SRO. Rule 19b-4 implements the requirements of 
Section 19(b) by requiring the SROs to file their proposed rule changes 
on Form 19b-4 and by clarifying which actions taken by SROs are subject 
to the filing requirement set forth in Section 19(b). Rule 19b-4(n) 
requires a designated clearing agency to provide an advance notice 
(``Advance Notice'') to the Commission of any proposed change to its 
rules, procedures, or operations that could materially affect the 
nature or level of risks presented by such clearing agency. Rule 19b-
4(o) requires a registered clearing agency to submit for a Commission 
determination any security-based swap, or any group, category, type, or 
class of security-based swaps it plans to accept for clearing 
(``Security-Based Swap Submission''), and provide notice to its members 
of such submissions.
    The collection of information is designed to provide the Commission 
with the information necessary to determine, as required by the Act, 
whether the proposed rule change is consistent with the Act and the 
rules thereunder. The information is used to determine if the proposed 
rule change should be approved, disapproved, or if proceedings should 
be instituted to determine whether to approve or disapprove the 
proposed rule change.
    The respondents to the collection of information are self-
regulatory organizations (as defined by the Act), including national 
securities exchanges, national securities associations, registered 
clearing agencies, notice registered securities future product 
exchanges, and the Municipal Securities Rulemaking Board.
    In fiscal year 2012, thirty-four respondents filed a total of 1,688 
proposed rule change responses.\1\ Each response takes approximately 38 
hours to complete. Thus, the total annual reporting burden for filing 
proposed rule changes with the Commission is 64,144 hours (1,688 
proposals per year x 38 hours per filing).\2\ In addition to filing 
their proposed rule changes with the Commission, the respondents also 
are required to post each of their proposals on their respective Web 
sites, a process which takes approximately four hours to complete per 
proposal. Thus, for 1,688 proposals, the total annual reporting burden 
on respondents to post the proposals on their Web sites is 6,752 hours 
(1,688 proposals per year x 4 hours per filing). Further, the 
respondents are required to update their rulebooks, which they maintain 
on their Web sites, to reflect the changes that they make in each 
proposal they file. Thus, for all filings that were not withdrawn by a 
respondent (120 withdrawn filings in fiscal year 2012) or disapproved 
by the Commission (2 disapproved filings in fiscal year 2012), the 
respondents were required to update their online rulebooks to reflect 
the effectiveness of 1,566 proposals, each of which takes approximately 
four hours to complete per proposal. Thus, the total annual reporting 
burden for updating online rulebooks is 6,264 hours ((1,688 filings per 
year--120 withdrawn filings--2 disapproved filings) x 4 hours)). 
Finally, a respondent is required to notify the Commission if it does 
not post a proposed rule change on its Web site on the same day that it 
filed the proposal with the Commission. The Commission estimates that 
SROs will fail to post proposed rule changes on their Web sites on the 
same day as the filing 16 times a year, and that each SRO will spend 
approximately one hour preparing and submitting such notice to the 
Commission, resulting in a total annual burden of 16 hours (16 notices 
x 1 hour per notice).
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    \1\ The Commission expects four additional respondents to 
register during the three year period for which this Paperwork 
Reduction Act Extension is applicable (three as registered clearing 
agencies and one as a national securities exchange), bringing the 
total number of respondents to thirty-eight.
    \2\ In fiscal year 2012, respondents filed 120 optional 
amendments to their proposals, as well as 629 required prefilings of 
their proposed rule changes. Because those submissions are part of 
the Form 19b-4 process as required by Rule 19b-4, they are included 
within the 38 hour burden estimate, and, because amendments and 
prefilings are part of a single proposal, they do not constitute a 
separate response.
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    Clearing agencies have additional information collection burdens. 
As noted above, a designated clearing agency must file an Advance 
Notice with the Commission of any proposed change to its rules, 
procedures, or operations that could materially affect the nature or 
level of risks presented by such designated clearing agency. The 
Commission estimates that 10 designated clearing agencies will each 
submit 35 Advance Notices per year, with each submission taking 90 
hours to

[[Page 11702]]

complete. The total annual reporting burden for filing Advance Notices 
is therefore 31,500 hours (10 designated clearing agencies x 35 Advance 
Notices per year x 90 hours per response).
    Designated clearing agencies are required to post all Advance 
Notices to their Web sites, each of which takes approximately four 
hours to complete. For 35 Advance Notices, the total annual reporting 
burden for posting them to respondents' Web sites is 1,400 hours (10 
designated clearing agencies x 35 Advance Notices per year x 4 hours 
per Web site posting). Respondents are required to update the postings 
of those Advance Notices that become effective, each of which takes 
approximately four hours to complete. The total annual reporting burden 
for updating Advance Notices on the respondents' Web sites is 1,400 
hours (10 designated clearing agencies x 35 Advance Notices per year x 
4 hours per Web site posting).
    The respondents are also required to provide copies of all 
materials submitted to the Commission relating to an Advance Notice to 
the Board of Governors of the Federal Reserve System (``Board'') 
contemporaneously with such submission to the Commission, which is 
estimated to take two hours. The total annual reporting burden for 
designated clearing agencies to meet this requirement is 700 hours (10 
designated clearing agencies x 35 Advance Notices per year &2 hours per 
response).
    The Commission estimates that six security-based swap clearing 
agencies will each submit 20 Security-Based Swap Submissions per year, 
with each submission taking 140 hours to complete resulting in a total 
annual reporting burden of 16,800 hours (6 respondent clearing agencies 
x 20 Security-Based Swap Submissions per year x 140 hours per 
response). Respondent clearing agencies are required to post all 
Security-Based Swap Submissions to their Web sites, each of which takes 
approximately four hours to complete. For 20 Security-Based Swap 
Submissions, the total annual reporting burden for posting them to the 
six respondents' Web sites is 480 hours (6 respondent clearing agencies 
x 20 Security-Based Swap Submissions per year x 4 hours per Web site 
posting). In addition, three of the six respondent clearing agencies 
that have not previously posted Security-Based Swap Submissions, 
Advance Notices, and proposed rule changes on their Web sites may need 
to update their existing Web sites to post such filings online. The 
Commission estimates that each of these three clearing agencies would 
spend approximately 15 hours updating its existing Web site, resulting 
in a total one-time burden of 45 hours (3 respondent clearing agencies 
x 15 hours per Web site update) or 15 hours annualized over three 
years.
    Respondent clearing agencies will also have to provide training to 
staff members using the Electronic Form 19b-4 Filing System (``EFFS'') 
to submit Security-Based Swap Submissions, Advance Notices, and/or 
proposed rule changes electronically. The Commission estimates that 
each of the six estimated security-based swap clearing agencies will 
spend approximately 20 hours training all staff members who will use 
EFFS to submit Security-Based Swap Submissions, Advance Notices, and/or 
proposed rule changes electronically, for a total of 120 hours (6 
respondent clearing agencies x 20 hours) or 40 hours annualized over 
three years. The Commission also estimates that each of these six 
clearing agencies will have a one-time burden of 130 hours to draft and 
implement internal policies and procedures for using EFFS to make these 
submissions, for a total of 780 hours (6 clearing agencies x 130 hours) 
or 260 hours annualized over three years. The four remaining clearing 
agencies that have existing internal policies and procedures for using 
EFFS will need to update them for submitting Security-Based Swap 
Submissions and/or Advance Notices with the Commission. The Commission 
estimates that each of these four clearing agencies will have a one-
time burden of 30 hours to draft and implement modifications to their 
internal policies, for a total of 120 hours (4 clearing agencies x 30 
hours) or 40 hours annualized over three years. After the initial 
training is completed, the Commission estimates that each of the 38 
respondents will spend 10 hours each year training new compliance staff 
members and updating the training of existing compliance staff members 
to use EFFS, for a total annual burden of 380 hours (38 respondent SROs 
x 10 hours).
    Based on the above, the total estimated annual response burden 
pursuant to Rule 19b-4 and Form 19b-4 is the sum of the total annual 
reporting burdens for filing proposed rule changes, Advance Notices, 
and Security-Based Swap Submissions; training staff to file such 
proposals; drafting, modifying, and implementing internal policies and 
procedures for filing such proposals; posting each proposal on the 
respondents' Web sites; updating Web sites to enable posting of 
proposals; updating the respondents' online rulebooks to reflect the 
proposals that became effective; and submitting copies of Advance 
Notices to the Board, which is 130,191 hours.
    Compliance with Rule 19b-4 is mandatory. Information received in 
response to Rule 19b-4 shall not be kept confidential; the information 
collected is public information.
    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 
estimate of the burden of the proposed collection of information; (c) 
ways to enhance the quality, utility, and clarity of the information 
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.
    The Commission may not conduct or sponsor a collection of 
information unless it displays a currently valid control number. No 
person shall be subject to any penalty for failing to comply with a 
collection of information subject to the PRA that does not display a 
valid OMB control number.
    Please direct your written comments to: Thomas Bayer, Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 6432 General Green Way, Alexandria, Virginia 22312 or 
send an email to PRA_Mailbox@sec.gov.

    Dated: February 13, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-03690 Filed 2-15-13; 8:45 am]
BILLING CODE 8011-01-P


