
[Federal Register Volume 78, Number 165 (Monday, August 26, 2013)]
[Notices]
[Pages 52808-52809]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-20679]


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SECURITIES AND EXCHANGE COMMISSION


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 15c3-5; SEC File No. 270-601, OMB Control No. 3235-0673.

    Notice is hereby given that, pursuant to the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.) (``PRA''), the Securities and 
Exchange Commission (``Commission'') is soliciting comments on the 
existing collection of information provided for in Rule 15c3-5 (17 CFR 
240.15c3-5) under the Securities and Exchange Act of 1934 (15 U.S.C. 
78a et seq.) (``Exchange Act''). The Commission plans to submit this 
existing collection of information to the Office of Management and 
Budget (``OMB'') for extension and approval.
    Rule 15c3-5 under the Exchange Act requires brokers or dealers with 
access to trading directly on an exchange or alternative trading system 
(``ATS''), including those providing sponsored or direct market access 
to customers or other persons, to implement risk management controls 
and supervisory procedures reasonably designed to manage the financial, 
regulatory, and other risks of this business activity.
    The rule requires brokers or dealers to establish, document, and 
maintain certain risk management controls and supervisory procedures as 
well as regularly review such controls and procedures, and document the 
review, and remediate issues discovered to assure overall effectiveness 
of such controls and procedures. Each such broker or dealer is required 
to preserve a copy of its supervisory procedures and a written 
description of its risk management controls as part of its books and 
records in a manner consistent with Rule 17a-4(e)(7) under the Exchange 
Act. Such regular review is required to be conducted in accordance with 
written procedures and is required to be documented. The broker or 
dealer is required to preserve a copy of such written procedures, and 
documentation of each such review, as part of its books and records in 
a manner consistent with Rule 174(e)(7) under the Exchange Act, and 
Rule 17a-4(b) under the Exchange Act, respectively.
    In addition, the Chief Executive Officer (or equivalent officer) is 
required to certify annually that the broker or dealer's risk 
management controls and supervisory procedures comply with the rule, 
and that the broker-dealer conducted such review. Such certifications 
are required to be preserved by the broker or dealer as part of its 
books and records in a manner consistent with Rule 17a-4(b) under the 
Exchange Act. Compliance with Rule 15c3-5 is mandatory.
    Respondents consist of broker-dealers with access to trading 
directly on an exchange or ATS. The Commission

[[Page 52809]]

estimates that there are currently 870 respondents. To comply with Rule 
15c3-5, these respondents will spend approximately 139,200 hours per 
year (160 hours per broker-dealer x 870 broker-dealers = 139,200 
hours). At an average internal cost per burden hour of approximately 
$390.57, the resultant total related internal cost of compliance for 
these respondents is $54,367,170 per year (139,200 burden hours 
multiplied by approximately $390.57/hour). In addition, for hardware 
and software expenses, the Commission estimates that the average annual 
external cost would be approximately $20,500 per broker-dealer, or a 
total of $17,835,000 ($20,500 per broker-dealer x 870 broker-dealers = 
$17,835,000) for all respondents.
    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 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.
    An agency may not conduct or sponsor, and a person is not required 
to respond to, a collection of information under the PRA unless it 
displays a currently 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, 100 F Street NE., Washington, DC 20549, or send an email 
to: PRA_Mailbox@sec.gov.

    Dated: August 20, 2013.
Kevin M. O'Neill,
Deputy Secretary.
[FR Doc. 2013-20679 Filed 8-23-13; 8:45 am]
BILLING CODE 8011-01-P


