
[Federal Register Volume 80, Number 5 (Thursday, January 8, 2015)]
[Notices]
[Pages 1054-1055]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2015-00053]


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SECURITIES AND EXCHANGE COMMISSION


Submission for OMB Review; Comment Request

Upon Written Request, Copies Available From: Securities and Exchange 
Commission, Office of FOIA Services, 100 F Street NE., Washington, DC 
20549-2736.

Extension:
    Rule 9b-1, SEC File No. 270-429--OMB Control No. 3235-0480.

    Notice is hereby given that pursuant to the Paperwork Reduction Act 
of 1995 (``PRA'') (44 U.S.C. 3501 et seq.), the Securities and Exchange 
Commission (``Commission'') has submitted to the Office of Management 
and Budget (``OMB'') a request for approval of extension of the 
previously approved collection of information provided for in Rule 9b-1 
(17 CFR 240.9b-1), under the Securities Exchange Act of 1934 (15 U.S.C. 
78a et seq.).
    Rule 9b-1 (17 CFR 240.9b-1) sets forth the categories of 
information required to be disclosed in an options disclosure document 
(``ODD'') and requires the options markets to file an ODD with the 
Commission 60 days prior to the date it is distributed to investors. In 
addition, Rule 9b-1 provides that the ODD must be amended if the 
information in the document becomes materially inaccurate or incomplete 
and that amendments must be filed with the Commission 30 days prior to 
the distribution to customers. Finally, Rule 9b-1 requires a broker-
dealer to furnish to each customer an ODD and any amendments, prior to 
accepting an order to purchase or sell an option on behalf of that 
customer.
    There are 12 options markets that must comply with Rule 9b-1. These 
respondents work together to prepare a single ODD covering options 
traded on

[[Page 1055]]

each market, as well as amendments to the ODD. These respondents file 
approximately 3 amendments per year. The staff calculates that the 
preparation and filing of amendments should take no more than eight 
hours per options market. Thus, the total time burden for options 
markets per year is 288 hours (12 options markets x 8 hours per 
amendment x 3 amendments). The estimated cost for an in-house attorney 
is $380 per hour,\1\ resulting in a total internal cost of compliance 
for these respondents of $109,440 per year (288 hours at $380 per 
hour).
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    \1\ The $380 per hour figure for an Attorney is from SIFMA's 
Management & Professional Earnings in the Securities Industry 2013, 
modified by Commission staff to account for an 1800-hour work-year 
and multiplied by 5.35 to account for bonuses, firm size, employee 
benefits and overhead.
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    In addition, approximately 1,500 broker-dealers must comply with 
Rule 9b-1. Each of these respondents will process an average of 3 new 
customers for options each week and, therefore, will have to furnish 
approximately 156 ODDs per year. The postal mailing or electronic 
delivery of the ODD takes respondents no more than 30 seconds to 
complete for an annual compliance burden for each of these respondents 
of 78 minutes or 1.3 hours. Thus, the total time burden per year for 
broker-dealers is 1,950 hours (1,500 broker-dealers x 1.3 hours). The 
estimated cost for a general clerk of a broker-dealer is $57 per 
hour,\2\ resulting in a total internal cost of compliance for these 
respondents of $111,150 per year (1,950 hours at $57 per hour).
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    \2\ The $57 per hour figure for a General Clerk is from SIFMA's 
Office Salaries in the Securities Industry 2013, modified by 
Commission staff to account for an 1800-hour work-year and 
multiplied by 2.93 to account for bonuses, firm size, employee 
benefits and overhead. The staff believes that the ODD would be 
mailed or electronically delivered to customers by a general clerk 
of the broker-dealer or some other equivalent position.
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    The total time burden for all respondents under this rule (both 
options markets and broker-dealers) is 2,238 hours per year (288 + 
1,950), and the total internal cost of compliance is $220,590 ($109,440 
+ $111,150).
    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.
    The public may view background documentation for this information 
collection at the following Web site: www.reginfo.gov. 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 email to: 
Shagufta_Ahmed@omb.eop.gov; and (ii) Pamela Dyson, Acting Director/
Chief Information Officer, Securities and Exchange Commission, c/o Remi 
Pavlik-Simon, 100 F Street NE., Washington, DC 20549, or by sending an 
email to: PRA_Mailbox@sec.gov. Comments must be submitted to OMB within 
30 days of this notice.

    Dated: January 2, 2015.
Brent J. Fields,
Secretary.
[FR Doc. 2015-00053 Filed 1-7-15; 8:45 am]
BILLING CODE 8011-01-P


